Eric Remer: Just to add that. Thanks, Marc. Ryan, it’s a great question. Your asset is a core. I mean, the answer is, it’s not core in the sense of the core part of our business, we said this over and over again, providing customer centric vertical software, to service based SMBs. That’s the core of everything we do. Providing additional value to enhance their value as well as provide more success is where marketing came in. Unlike payments where we’ve done, right off the bat, a really good job integrating and penetrating the market. Martech has been a little slower to kind of make that uptick. So, it is an add-on versus kind of core to what we do, but we’ll continue to kind of work to make it better, sell-through our ecosystem.
Operator: Our next question comes from Alexander Sklar with Raymond James.
Alexander Sklar: I don’t know Eric or Matt. I just wanted to see what have you seen in terms of kind of deal sizes or expansion activity with some of the solutions that you already went through the brand consolidation with that’s helping you kind of push forward with the EverPro side in terms of driving further brand consolidation?
Eric Remer: Yes. I mean, as we’ve talked about in the past, we’re obviously further along from an EverHealth standpoint. We’ve seen nice successes, playing on our thesis of core system of action with those integrated value add solutions in EverHealth, that’s been the integration of our claims clearinghouse, the integration of our patient engagement solutions and the integration of our patient pay capability, just think core payments from that standpoint. And we’ve seen nice progress across all of those. The integration of our core claims clearinghouse continues across multiples of our systems of action there, and we’re actually through that in one of them and making nice headway in another. Payments from that perspective is we still have penetration opportunity there, but we’ve done a really, really good job there.
So all of that says thesis we see that thesis come through in terms of core system of action with value add solutions add-on. Again, in EverPro, as we think about it, in a place where we have a little bit less of that product consolidation done, it’s going to look a little bit different. But what we have done in EverPro is obviously EverPro is core in our systems of access solutions, where we have integrated payments. And obviously, the majority of our payments integration work has already been done there perspective. So we talked about the EverPro Edge. That will be another value add solution that, again, as we consolidate products, think about those value add solutions being more integrated into those systems of action. So hopefully, that gives you a little bit of color.
We’ve definitely learned a lot at EverHelp, but we are not starting from zero from a product consolidation standpoint at Evercore. We’ve done that with the value add solutions already.
Eric Remer: Thanks, Matt. And just to add to that, that’s a great question. When you think about, what we’ve done with the consolidation of Evercore Health and Matt said really well, connecting the dots with all those core solutions, For new customer acquisitions, the ARPU has increased 13% year over year. So we are seeing those customers spending more money with us as they’re utilizing more products and services.
Operator: [Operator Instructions] Our next question comes from Alexei Gogolev with JPMorgan.
Alexei Gogolev: And Eric, thank you for these comments in your prepared remarks about the first steps that you’re taking to transform the business. I was wondering, if you have any thoughts about what might be the next step. I think Mark outlined that 2024 will be a transition year. Anything you could maybe elaborate on what sort of steps in terms of simplifying the business you may take in the near-term?
Eric Remer: Well, thank you for the question. The first step, as we talked about was that Marc brought up in detail was to sell our fitness assets. As we kind of looked at reduced the perimeter of the organization and focused our resources on both people and dollars into investments into those core solutions that we believe have the largest growth opportunity. That’s part of the transformation. We continue to talk about that vertically centric software solution focused on helping that service SMB more be more successful. So investments in products and go-to-market in the core verticals that we feel very strong about. And so that’s kind of the external. Internally, it’s better organizing. The transformation is organizing within the verticals to make sure that we reduce friction, we have better alignment and better products and better go-to-market for those customers.
You think about optimization, I mean, that’s something we’ve done very well over the last few years, and this is an extension of that. You think about over the last few years, we’ve increased EBITDA margins by almost 700 basis points. And so when you think about our ability to expand those margins, that’s the ongoing optimization we see in the organization. And we’re actually kind of really doubled down on that in terms of focused on those both not in the low hanging fruit, but those areas that we see that we can generate more optimization, which is why we’ve expanded our kind of guide from EBITDA margin this year as well.
