Operator: Thank you. Our next question comes from Terry Tillman with Truist Securities.
Terry Tillman: Yes. Hi, can you hear me?
Bob Bennett: Yes. Hi, Terry.
Cassandra Hudson: Good morning, Terry.
Terry Tillman: Hey, good morning, Bob, Cassandra and Josh. Nowadays I feel compelled to ask an AI oriented question but I’m not going to do it on this call, okay. The question €“ the first question I had is related, well, it’s a multi-part question related to SimplePractice. First, in terms of, it does sound like there’s still some things and I appreciate what you’re saying, Cassandra, in terms of it’s still opportunistic and it’s not the main focus on group practices, but it sounds like there’s still some deliverables you all need to provide in terms of product market fit. So could you give us a sense of when that’s going to happen? And the second part, I’m intrigued by revenue cycle management. Maybe you could talk about when that could start becoming actionable and what kind of ARPU lift that could provide? And then I had a follow up for Cassandra.
Bob Bennett: Yes. Hey, Terry. So the roadmap for our market expansion, new specialties continues to drive forward. We’re definitely gaining traction very significantly with still speech language pathologist and with occupational therapist and a little bit of a €“ I wouldn’t call it a pivot, but an adjustment to accommodate really strong growth we’re seeing in group practices, in behavioral health and interdisciplinary type clinician outfits where they’ve got speech language pathology, occupational therapy and behavioral health, all in the same €“ in the same group. All of that is happening while we continue to align our product resources into the squads that can attack the chiropractic, physical therapy and some of the other wellness verticals where we still have a little bit of work to do to for a full product market fit.
But again, what we continue to see is such strong demand in behavioral health and in the existing, I mean, SLPs are growing really well. So we just want to continue to be supportive of those groups and continue to enhance those groups so that we can continue to get strong customer satisfaction and the word of mouth, viral push towards new trials that drive new customer ads. I don’t know if that answers your question, Terry.
Terry Tillman: It did, and I’m unfair because I’m asking a couple questions multipart, it’s pretty annoying probably for everyone. But you mentioned revenue cycle management is an opportunity, though. That was the second part of the question in terms of just flushing that out a little bit more and potentially what kind of the impact and timing?
Bob Bennett: Revenue cycle management, we are in trials. We’re already in there. We’re working to sort of eliminate that administrative burden for many of our practices already today. It’s getting traction and we’re plowing ahead with it, and it looks very favorable and encouraging to us right now. So that is a €“ we think a significant opportunity as we move forward to really eliminate the hassles around billing, insurance, claims and all of that by creating appropriate partnerships where we can bring very high visibility to our customers of what’s going on with the insurance claims and eliminate the burden of administering to them. So we’re in play on that right now going well.
Terry Tillman: That’s great. And then Cassandra, my second question was just related to the midpoint of the growth for the full year of 2023 is 26% growth. I mean, you had the product and pricing and packaging that really had a pretty meaningful impact on the SMB in 2022. Is there anything you could share at all about relative growth rates or just to kind of give us some sort of level setting between enterprise and SMB in 2023? Thank you.
Cassandra Hudson: Sure. Sure. Thanks for the question, Terry. So as it relates to the segments, we expect roughly 30% growth in SMB in 2023 and 20% growth in enterprise. And really as you already highlighted we’re going to be working through the compares on the pricing and packaging this year in SMB, so that’s a driver of the growth right there. And then on enterprise, we did have several large go-lives at the end of 2021 in the beginning of 2022, that drove really strong growth for us in the prior year. And there’s an ebb and flow associated with the timing of these go-lives, so given that we expect enterprise to grow roughly 20% in 2023,
Terry Tillman: Thank you and congrats.
Cassandra Hudson: Thank you.
Bob Bennett: Thanks Terry.
Operator: Our next question comes from Bhavin Shah with Deutsche Bank.
Unidentified Analyst: Good morning everyone, it’s Nick on for Bhavin. Thanks for taking my questions. Looking at SimplePractice Enterprise and Monarch, can you talk a little bit more about how you see the opportunity growing there, going forward?
Bob Bennett: So with SimplePractice Enterprise and Monarch; Bhavin, we see that there’s a really strong need for connecting patients in a timely fashion to care. So with Monarch and SimplePractice Enterprise we actually enable these MCOs, Managed Care Organizations and Employee Assistance Programs to directly access data and our base of clinicians to set appointments up online, provide online onboarding for new patient, get visibility into whether or not the session actually happened. Did the patient show up? Did they actually onboard. Visibility into things that they don’t have today in a normal €“ in their normal process? Plus, I mean, think about a picture yourself as an MCO, as a caregiver or somebody that’s trying to set up care making 20 phone calls to solo and small group practitioners leaving messages trying to get ahold of somebody so you can align a calendar, they call back, you’re on the phone.
So all of that goes away with our automation and our online scheduling capabilities. So as we see a really strong need here for €“ well cost savings with the MCOs and the EAPs that we have, many fewer people that are setting up these appointments because it’s all easily handled. And then we see on the other side of that Bob, and a really strong push from these MCOs and EAPs to get all of their customers, all of their non-overlapping clinicians that they refer to today to get onto a SimplePractice platform or onto the SimplePractice platform to ease the ability of scheduling those appointments and then getting the data on the other side of it of whether or not there’s proper outcomes that happening from it. So it’s all part of connected care, outcome tracking and improving what we think is going to be the long-term capabilities of our customers to treat patients in a timely fashion.
Unidentified Analyst: Great, thank you. And can you give us, I guess, a little bit more color on how adoption’s going kind of outside of sort of the speech and language pathology and occupational therapy verticals and sort of the rest of the wellness space?
Bob Bennett: It continues to grow. I mean, our market expansion is growing more quickly than our €“ our new markets are growing more quickly than behavioral health, which has been the trend. And it continues to grow aggressively, can’t really stop it because the viral word of mouth keeps driving it. We’re not trying to stop it obviously, but we are €“ we’re still more focused on groups, SLP and OT for the time being. Nutritionists and dieticians continue to grow well, as just on their own through organic word of mouth. But I think that the traction is good, strong. I would say it’s steady.
Unidentified Analyst: Great. Thanks once again for taking the questions and congrats on the quarter and the year.
Bob Bennett: Thanks.
Cassandra Hudson: Thank you.
Operator: Thank you. Our next question comes from Ashwin Shirvaikar with Citi.
Bob Bennett: Hi Ashwin.
