John Johnson : I’m not sure I understand the question, Stephanie. Sorry.
Stephanie Davis : So is there a reason you would see a year-over-year decline in gross profit dollars as opposed to just a headwind to gross margin mix?
John Johnson : Good question. Yes. From Q4 to Q1, gross profits relatively flat, largely driven by the sort of elevated indicators in March, as I mentioned. As we go through this year, continue to drive performance in the Performance Suite and this cost improvements that I mentioned, get the benefit of some of the new launches that we’ve seen, which are mostly in the Tech and Services suite in the first half of this year, that should drive it forward. And then when the newly announced Molina deal go live later this year, you’d see another dip on the percentage side, but I wouldn’t necessarily anticipate a dip there on the dollar side. We expect that to continue to grow as we sort of laid out the EBITDA ramp continuing to grow.
Stephanie Davis: All right, helpful. Thank you. Just a quick one on the Molina contracts. How should we think about what would happen if Molina loses Florida? Does that have any impact to your business?
John Johnson: Yes. Too early to say what happens. We’re not close to it. I think that, we previously spec’d out that sort of Molina, Florida revenue and Medicaid at less than $15 million. That would be the top-line impact if something were to change there. All right, helpful. Thank you so much.
Operator: [Operator Instructions]. The next question is from David Larsen with BTIG.
David Larsen: Hi, congratulations on the good quarter. For the $300 million of annualized EBITDA, should we be thinking about $75 million of EBITDA for the fourth quarter of 2024? Or does the $300 million of annualized EBITDA mean in December of ’24, you’ll be trending at like 1/12 of $300 million of annual EBITDA? Thanks very much.
John Johnson: Yes, Dave. The way that we think about it is it’s an exit number. And so, Q4 is probably a little under that and Q1 is probably a little over that.
David Larsen: And then in terms of the different components to getting to the $300 million there’s Performance Suite maturation, there’s new growth and then there’s earnings from NIA and IPG. Just any update on those numbers would be great, in particular like the new growth figure, I think that was $50 million. Are those all tracking in line with or ahead of expectations?
John Johnson: In line. We mentioned from the NIA synergies anticipating $8.75 million in quarterly benefit there, about half of that is already in Q1, and well on track to achieve the rest of that. Comments on the Performance Suite already and on the new growth mentioned that with the seven new relationships that we’ve already announced, seven new agreements we’ve already announced this year and strong membership, taking that go get to under just under $3 million a quarter.
David Larsen: Thanks a lot. And then just quickly on cash, just expectations for cash flow for the year or free cash for the year? How should we be thinking about that for 2Q, 3Q, 4Q? How does that compare to EBITDA, please? Thank you.
John Johnson: Yes. We reaffirmed our expectation of $150 million or more in operating cash flow for the year. Q1 is right in line with our expectations on that metric and we’ll build cash across the year.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Seth Blackley for any closing remarks.
Seth Blackley: All right. Thank you for the questions tonight and we’ll look forward to catching up offline. Have a good evening.
Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.
