So I think that’s a piece of it. And then we’re still working through all the things that will give us the opportunities to be more efficient even from our back office. We’ve had projects that we’ve been working on over the last year, many of which have been going live throughout the fourth quarter and into the first quarter. So I anticipate that we’ll still see even improvements across the shared services teams.
Kevin Steinke: Okay. And as you referenced, you think revenue could ramp sequentially in the second half of 2024. And with all those various actions and initiatives you just discussed, do you think that high-single digit adjusted EBITDA margin would be reasonable as we move towards the back half of the year?
John Martins: Yes, I think, look, that’s certainly our goal. And I made the remark in my prepared remarks that we’re targeting to exit the year with SG&A at 15% on revenue. So if you look and see where does that, where do you think gross profit or gross margin can be by the fourth quarter, you can start to back into what that could look like. But yes, something in that high single would be our goal to exit the year.
Kevin Steinke: Okay. Thanks for taking the questions.
John Martins: Sure.
Operator: Thank you. And our last question will come from Bill Sutherland with The Benchmark Company, LLC. You may proceed.
Bill Sutherland: Thank you. Hey, guys. John, I was thinking about one artifact of COVID, I think was a lot of the typical contracting cycles for MSPs got pushed out. So there’s been like a bunch up this year or last year, and maybe this year that I’ve heard is occurring in the industry. And I’m just wondering kind of what your contract cycle looks like right now as you look at your book in both MSP and VMS.
John Martins: Hey, Bill. Yes. Our cycle was heavier in 2022 and 2023, where we had more contracts up. And I think as we’ve all called out, that was because of COVID that people kind of held back and waited to go out to market after COVID, or what was perceived after COVID in 2022. So we saw a higher number of our clients go out in 2022 and 2023. This year, it’s definitely lower and less than last year. I think we’re going to see more of the typical cycle of somewhere between 20%, 25% go out this year. And it varies. Right. There’s ones that are competitive bids that, we have that our competitors are going in and getting involved in a competitive bake off, if you will. And there’s other ones that are renewals that are evergreen contracts that come up every year that were – that the client’s really not looking to go out to market.
And those are the renewals that just come automatically. And of course, you still have to make sure you’re doing a great job with the client, giving the service that they need and filling there and providing the needs that they have and filling the needs they have. But there’s a couple of different categories. But to answer your question, this will be a lower year in the total number of renewals we have in the last two years.
Bill Sutherland: Got it. And I’m going to wrap up with a real quick number question Bill. Just curious, what is the headcount in India? Because you talked about increasing it this quarter I think – or first half?
Bill Burns: Yes, we haven’t, to my knowledge, given the specific India headcount out, but it’s a couple of few hundred, so it’s between 200 and 300 and ramping quickly. Now, we’ve got about today probably half of the headcount is supporting our IT operation and half of the headcount is supporting our shared services, maybe a little bit more like 60/40 operations versus IT, but we’ve been doing a lot of development work out of our India office. And so that’s part of what we’re going to continue to invest in. But the main driver of the growth is going to be on the operational side of the business. And that’s where we’re going to be more than when I say doubling the headcount; the doubling is the total headcount, but it’s going to be predominantly on the operations side. So more of the investments for the operations.
John Martins: And I think it’s important to note on that India office that we have overseas. That office has been around Cross Country for 18 years. It’s a long standing company that we’ve had there. Great partnership, great leadership there. As I mentioned in my prepared remarks, I was just there two weeks ago to do our company wide kickoff from India to all of our offices. And I can tell you the talent that we have over there is just incredible. And they’re ready to take on more and more of these services coming over. And we’re really excited about this great culture that we’ve created between the U.S. and India and truly this real partnership we have with our organization over there.
Bill Sutherland: Perfect. Thanks guys.
Operator: Thank you. Ladies and gentlemen, this does conclude the Q&A period. I’ll now turn it back over to John Martins for closing remarks.
John Martins: Thank you. In closing, I’d like to thank everyone for participating in today’s call. And we look forward to updating you on the progress of the company on our next call in May.
Operator: Ladies and gentlemen, this does conclude today’s conference call. Thank you for your participation. You may now disconnect.
