Clarke Jeffries: So the question on adjusted EBITDA and free cash flow generation, I mean, this has obviously been a primary focus all year. We felt like we committed to that to our board and our investors coming into ’23, we feel very good about our performance. In terms of driving efficiency into the business and optimizing our business as well as driving and improving scalability in the operation to better position us for growth down the road. So everything that we began and continued to do through the year of ’23. We sort of doubled down on that, if you will, through the transformation optimization initiatives that Eric mentioned. Within obviously driving efficiency on that bottom-line really relates as much to the optimization issues as it does for the transformation side.
But as we continue to sharpen our focus, consolidate our operations around brands and products, invest appropriately and drive more scalability and have identified a pretty long list of a variety of different initiatives that we can do to continue to drive efficiency into the business. I think you see that reflected in the guide forward, right. I mean, we’re committing to driving increased profitability this coming year. And I think parking back to kind of our thoughts on the mid and long term when we took the business public. We always felt very good about our ability to drive operating leverage through the business as we drove scale, and as we got over the hump particularly of a lot of investments we needed to make, as we went public and then began operating as a public company.
So a lot of work we’re very focused on here in ’24 and beyond, over the next really 1 to 2 years to continue to grow into that motion.
Operator: Our next question comes from Dan Bergstrom with RBC Capital Markets.
Dan Bergstrom: Hey, it’s Dan Bergstrom for Matt Hedberg. Thanks for taking our question. Just on payment adoption and an earlier question, I know you tried out some different strategies to drive payment adoption last year with mandates etcetera. Is there anything that you really learned from that testing that you’re leaning on more in ’24 here to drive payment adoption?
Eric Remer: Yes. Great question. Thanks for the follow-up on that. Absolutely, we’ve tested mandates across multiple solutions, certainly learned a lot in terms of what percentage of uptake we got on those mandates, how to position the mandates. And we’ve actually pulled that forward into how we think about using similar tactics in 2024. Obviously, there’s a variety of different things that we are thinking of from a payment attached standpoint. Obviously, it goes beyond mandates. It goes to pricing, packaging, etcetera. And so definitely, we’re obviously everything we do going forward is a function of what we’ve learned. We’re very test and learn focused and did pick up a bunch of points from those mandates that we’ll be driving forward in ’24.
Dan Bergstrom: That’s great. Appreciate the color. And then maybe for Marc, again to build off a previous question on the guidance range for ’24. Maybe what are some of the underlying assumptions or what could work well that could push results, say, towards the upper end of the range?
Marc Thompson: Well, I think a few things. Obviously, on the top side of things, continuing on revenue, continuing to invest in our core strategies within our core solutions, systems of action and integrating payments and things like EverPro Edge, new add-on features that can drive both growth and profitability and frankly improve retention. I mean, our investments we’re making year-over-year are always as much about acquiring new customers as much about investing in our ability to expand our customer relationships and also really improve features, functions remain competitive and drive improved retention. Obviously, when you sell more than one solution to customers, you drive retention that way. So I think, a variety of everything we’re doing on the investment side in ’24, particularly in these higher growth, higher margin, higher market opportunities, I think is all geared towards positioning us for upside.
So, we’re driving the investment dollars in, we’re taking the actions and execution could certainly improve our ability to drive that top line. I do think as I mentioned on marketing technology, we are being prudent in our guide. It is we do see stabilization, but the world is not in our control. I do think there could always be upside there, and we’re certainly well positioned for that. And I think as I mentioned earlier, the team has done a really nice job of managing through a really murky environment the last 18 to 24 months. On the bottom line, I think we’ve demonstrated through this year and really over the last 18 to 24 months, just as we had said, we were going to overcome the hump of the infrastructure costs we needed to make and the investments we needed to make to get and be public.
I think we’ve delivered on that and then some. And I think we’re positioning ourselves to deliver on that, this year with real confidence in building that into our guidance. But obviously, we can’t work fast enough to drive more efficiency and scalability of operations into the business and we’re doing that as quickly as we can. But there could be upside there from a variety of different initiatives we have going on internally as we continue to transform and optimize the business this year and next.
Eric Remer: And just to add to that, when you think about some of the opportunities that we continue to work on that we think will both drive growth the upper end of this year as well as into next year, it would be over 700,000 customers, over 350,000 field service contractors, almost 100,000 practitioners in the EverHealth. We have a massive amount of small business customers that utilize our core solutions to run the business every day. Our opportunity to provide more value to them through additional services, products and solutions, we are still in the early innings of that. And fortunately, that’s a very large base. So it gives us a lot of runway to grow with. But those are the things that we focus on every day. How do you provide more value to those customers? Obviously, makes them more successful and provides more revenue to EverCommerce.
