Brian Colley: Got it. And then for a followup, I was wondering if you could just provide an update on where you are with regard to divesting or end of lifeing the non-core assets that you’ve talked about the remaining $4 million to $8 million of ARR and how much of that or how much of that impacted 4Q 2022 and are you including any revenue from those assets in the 1Q guide and for the full year as well?
Patrick Brickley: Hey, Brian, it’s Patrick. There was no impact in Q4. We do have a divestiture under LOI that we are on track to execute shortly here over the next couple of weeks, and that’s a few million dollars of ARR. We have a couple of smaller opportunities that we’re looking to execute on by the end of the quarter and throughout the year we’ll continue to work through the portfolio analysis. As Dave mentioned, Bryan is onboarding, applying a fresh set of eyes, and I anticipate throughout the year we’ll continue to have opportunities that we’ll take advantage of in order to find better homes for certain assets. And our guide does anticipate that there could be some potential headwind related to divestiture, but these are all relatively small.
That was part of the bridge that we provided at the Investor Day from 2022 growth to the guide of 2023 revenue growth of 6% to 7%. There are $4 million to $8 million of ARR that is up for potential divestiture that we’ve identified today and we’ve got just shy of half of that under LOI as we speak.
Brian Colley: Okay, got it. Well thanks for the time guys.
David Wagner: Yes, thank you Brian.
Operator: Our next question will come from Michael Turrin with Wells Fargo Securities. You may now go ahead.
Michael Berg: Hi, you got Michael Berg on for Michael Turrin. Congrats on the quarter. I wanted to dive into what’s taking the guidance specifically your Rule 44 implied for the year there is a tick under what you just performed in fiscal 2022. So maybe walk us through if there’s any level of conservatives and whether it’s from macro or sales pipeline or even on the cost side maybe walk us through? Thank you.
David Wagner: Yes, so the biggest contributor to that difference is the acquired revenue, so the inorganic growth that we had in the revenue number last year. And so there’s not an exact pinpoint on that, but that’s where we kind of walked through the 21, 19, 17, 14% ending revenue growth rates. And so that’s kind of the first big jump off is, we’re entering 2023 with a purely organic growth rate. And then of course we built in and we just talked about the $4 million to $8 million of which, $4 million or just under 4 has already been well, it’s under LOI, it’s out of the ARR number, it’s out of the revenue guide. So that remaining, it would be 0 to 5 in our, what could come out of the future divestitures that as Patrick said, those would be small.
We had the lapping the large customers, so we had that detailed waterfall from the Investor Day that kind of brings you back. And then, I guess the other one is we’re planning for flat one-time perpetual software and SaaS year-over-year. So the combination of those five factors brings that waterfall together from last year’s overall growth rate to the baseline 6% to 7% we have guided for 2023.
