Rahul Rakhit : I really appreciate all the color so far. I was just wondering if you could expand on what percentage of the account growth is coming internally versus your strategic partners. How do you expect that partner contribution to impact count growth in Q4 and then more, I guess, beyond 2023.
Rick Anderson : Current account growth, the vast majority would be internal. We’ve seen some nice activity from partners in Q3 and are expecting a bit more in Q4. I expect that remains to be seen to some extent. But we’re expecting partners and certain part of our growth going forward in 2023 and probably in 2024 and I think a lot of that has to do with market dynamics that we’re seeing. If there’s more and more effort on the part of customers to really, a, make it easier on themselves, manage less vendors and make the vendors that they’re managing easier. So I think that, that bids well for sales to our partnership. So we’re investing more in the sell-through through those partnerships. And as Erez mentioned in his comments, too, that gives us a lot greater reach than our own sales force on a stand-alone basis. But to date, the majority is internal.
Rahul Rakhit : Got it. That makes sense. I mean it’s great. You guys are on track to double the number of accounts that you had last year. But is it reasonable to think that you might potentially — or are you looking to double accounts again next year, from 100 to 200. And in that, are you kind of factoring in this contribution from partners to help drive you guys in that direction?
Rick Anderson : That’s generally the mentality.
Erez Raphael: Yes. I mean we were doubling from 50 to — we are doubling from 50 to 100. Almost everything is direct. And now with all these partners that are working with us, it’s a reasonable assumption that we can double again. That’s something that we’re going to talk about at the beginning of next year. But yes, that’s the direction.
Rahul Rakhit : Got it. Appreciate it. And then one more. You guys previously mentioned that you anticipate seeing additional strategic partnerships come in before year-end. Is that still a reasonable expectation? And if so, can you help us understand what type of strategic partnership you might be looking at — you might be pursuing at this point?
Rick Anderson : We are still pursuing things that we anticipate will close before year-end. We think that they will be substantial in terms of the ability to add to our overall client base over a period of time. And more to come on that later.
Operator: Our next question will come from David Grossman with Stifel.
David Grossman: I just wanted to follow up a couple of questions that were already asked. I think first on the ARR, the $61 million, is it fair to say that given where we are in the calendar year that most of the large employers, the self-insured plans would have kind of made their decision by now and that the incremental growth from here would come from health plans that would probably most likely kind of have some impact next year, just depending on timing in terms of increments above the $61 million.
Rick Anderson : Yes, health plans also off-cycle employers with the incremental between now and in terms of revenue contribution to next year, there’s a couple of other opportunities. But yes, generally speaking, yes.
David Grossman: Great. And then maybe if you could give us a sense of kind of how pricing is really trending for you in the marketplace, particularly on the full bundle? Maybe I have to give specific numbers on kind of what that pricing looks like on an absolute basis. But on a year-over-year basis, how is that trending when you’re out there selling the full suite?
Rick Anderson : We’ve purposefully taken a pricing strategy that I don’t want to discuss in absolute detail, but let’s just say, generally speaking, we’ve either maintained our pricing or raised it slightly.
Erez Raphael: Maybe I can give you some more color, David, on — I mean that’s something that I mentioned earlier on the call. The way to look at it and if I’m just picking up on — I’m not going to mention the name, but the employer that is — that was buying the full suite at the beginning of the year. The average revenue that we are generating per a single user is about — it’s like 50 — around 50% higher than for a single condition. Once we are selling the full suite and users are utilizing the full suite. On average, when we are launching, and that’s numbers that we have seen so far, and we believe we’re going to scale it, overall, 30% to 40% of the population are going to be eligible to one or more conditions. And if you were thinking about it, we know other competitors that we’re selling into this market diabetes only or hypertension only, the numbers are usually around 6% to 8%.
So if we are like selling both MSK, , weight loss, hypertension and diabetes. You can reach somewhere between 30% to 40% of the account that is eligible to one or more conditions. Usually, we have like around 35% of the population that are eligible, will enroll eventually to the platform. And on average, we start to see nice numbers that the average patient that is saying yes to the program will probably ask for an average 2.2 conditions to be managed by. This is more or less the numbers that we have seen. And this is why, on the call, I mentioned that the revenue per account is somewhere between 4x to 8x or falls comparing to a company that is selling a single condition. That’s the number that we are seeing today.
David Grossman: Got it. All right. So just to make sure I got that right. You said that 30% to 40% of the eligibles are taking the service and the average is 2.2 services per eligible to take the service. Did I get that right?
Rick Anderson : Just to — on average, the number of people — when somebody enrolls in the full suite program, they’re taking — they are involved in 2.2. But the price — the revenue we’re earning is not relevant to how many they’re actually taking because the pricing on the full suite is for all of the conditions, whether they take one or multiple of those conditions. So it’s a higher price than the single condition as Erez mentioned, but it also gives us access to 4x the population within, your average population would be eligible when you add the full suite versus say, diabetes on a stand-alone basis.
David Grossman: I got it. Okay. Great. And then just back to both Sanofi and Aetna. Can you just remind us what the revenue milestones are the conditions that have to be met for you to take on incremental revenue for each of those. I think I’ve got different bits and pieces. I just want to make sure that I understand all of the different components that drive revenue for those 2 relationships.
Rick Anderson : So within Sanofi, there are preferred partnership payments that — the milestones associated with those are delivery of training and data and things of that nature as well as just general market access. There’s also milestones related to delivery and development plans, which really tend to happen through throughout the year. And I mean, those are the primary revenues. All of that excludes agreements that we signed through the co-promotion. So that would be above and beyond that, that would land in our health plan revenue and pipeline associated with that. For the national health plan, the contract is really — the way to think about it is that we get payments for delivering certain elements of the platform. And then from there, it is essentially get per employee per month or per member per month if you prefer for people that have access to the platform.
And like I said a minute ago, those that would have buy up services that would be for those that buy those services up. But it’s a monthly fee for those that have access.
David Grossman: And where are we delivering the elements of the platform component of that, Rick? Are we — are those significant milestones that are still left in terms of dollars? Or have we — are we kind of beyond that at this point because it sounds like just started recognizing revenue this quarter. So it would appear that, that would still be out there.
Rick Anderson : There is some of that still out there. We definitely do have some of that in this quarter. I expect that we will have all of that — that will be completed within the first half of next year.
Operator: And our next question will come from Ben Haynor with Alliance Global Partners.
