Operator: [Operator Instructions] We have another question come through from the line of David Grossman at Stifel.
David Grossman: Erez, maybe first, just to follow up on that last comment about the strategic piece of business. So $6 million to $8 million run rate, is that a good number to use for 2024 and the growth in ’25? Or would you expect growth in 2024 as well?
Erez Raphael: I think that in 2024, there is some potential to grow. I think that the majority of the growth is going to come in 2025. We are in concrete discussions that started even before — some of them started even before the acquisition was announced with few clients that were over the world. But I think that this is a thing that will take time in terms of getting to get signed and I would anticipate that the majority of the impact will happen in 2025 and not in 2024, although the chances to have something in 2024 exist.
David Grossman: Got it. And in terms of Aetna, I assume that the ramp — the new piece of business that you won as well as the new clients that you’re onboarding will show up in the Enterprise segment, right, the second segment of your business. Is that accurate? And if so, can you give us a sense of what kind of visibility you have right now based on the business in hand with Aetna?
Erez Raphael: First of all, it’s counted into the second channel, the B2B2C health employers and health plans, specifically Aetna enrolling new employers into the platform. And the more employers they enroll, the more revenue we have. At the moment, we have in the ranges of like 10 employees that went on the platform and this is something that is keep moving forward into Q2 and Q3. So this is something that will gradually go up and the visibility that we have is ongoing activities that we are having between our sales team and Aetna in order to introduce the platform to more and more employers. It’s not like a full sale cycle like when we are selling directly to employers. This is something that is relatively faster and the platform is getting adopted.
But we don’t have a visibility like a specific target of 40 or 50 or 60 employers by this quarter or another quarter. And this is why we are relatively thinking about the growth in a conservative way, although the network that Aetna has is very, very wide. And the win rate and the ability to get more clients is much faster than Dario on a stand-alone base. So we’re very positive about the potential growth here.
Rick Anderson: Sorry, just to add one thing. The new piece of business that we won that will launch in the second quarter is an existing piece of business. So all 5 million of those members will come in the second quarter.
David Grossman: In 2Q, Rick, is that what you said?
Rick Anderson: Yes, beginning of Q2.
David Grossman: Got it. And then sorry if I missed this or it was in the release but did you mention just how large Twill was in the quarter and for the year in 2023 in terms of revenue?
Erez Raphael: Yes, this is something that we disclosed in the press release. So I think that between Dario and Twill together, the pro forma for 2023 is $37 million to $38 million, not audited yet. And that’s the disclaimer that we put. We are working on the audits of Twill and in the next quarter which is going to be published. But on a non-audited way, we are looking into $17 million to $18 million that is coming from Twill, from which between $14 million to $15 million is related to the second channel, employers and health plans and another $3 million to $4 million that came from pharma. All the numbers are for 2023, obviously.
David Grossman: Got it. And just on Twill, maybe you can just help us understand, as you look at their existing book of business, they do obviously have a really strategic presence in the Medicaid kind of segment of the market. How should we think of sales cycle in terms of selling metabolic into that base?
Rick Anderson: Sorry, David, selling metabolic into which base?
David Grossman: Into the Medicaid base, like how should we think about the timing of your ability to do that? Is it more given Medicaid awards happen more on an annual basis? Is that something that can be added before that? Or is it really getting into that particular segment? Is that something that’s more of a ’25 kind of outcome than the ’24 outcome?
Rick Anderson: No. I mean one of the good news, bad news about selling into health plans when they bear the risk which would be managed Medicaid, managed Medicare or Medicare Advantage or even on the commercial side when they are — when it’s their fully insured book of business, is they can launch whenever they want to launch. And so it’s not really — I mean to some extent, right, they have to have the business. So if they’re looking to add new business, that won’t — we won’t be able to start until they add that business or if they need renewals, etcetera, that may impact the timing of it. But what we’ve seen so far is our Medicaid business is all launched, if you will, sort of mid-cycle on those kinds of things. We do have one of our Medicaid current customers that is in a rebid process at the moment.
But even in that particular case, that relates to part of their Medicaid business and they are in the process of expanding even in light of that. So it can happen essentially any time. It’s just what we’re expecting is that we’re going to see expansions of Medicaid that will increase our 2024 population arrangement, therefore revenue but we also have with one of those plans, they’re looking at 2025 expansion into other lines of business as well. So that was the comment about 2024 and 2025.
