So it’s a growing proportion. And when we went public, it was certainly less than 60%. So, we have that tailwind. Currently, we’re in the low 70%-s, but on our way to the 80%-s like we’ve demonstrated we can improve over time. The near term, though, on [superior] (ph) margins and gross margins, that is very revenue dependent, as I just alluded to, and we are making some additional investments, particularly while Dan is bringing in these mega deals that require some incremental investment until we really get scale fully. In terms of the EBITDA margin, we’re very serene over there. We’ve got a long-term model that — if we take all three components, we have 47%, this I’m talking about 2027. We’re currently at 43%. So, we can actually still go up and still make our 23% EBITDA margin that we’re anticipating.
Siti Panigrahi: Thank you.
Operator: Moving on to Will Power with Baird.
Will Power: Okay. Great. Thanks for taking the question. I think probably for Dan, great to see the multitude of new big wins. Maybe just zeroing in on the Fortune 50 healthcare win, it would be great just to understand kind of what that process looks like? Who you replaced? I’m sure you competed with your competitors. What really kind of helped you stand apart there? And this seems to be part of a string of healthcare wins. Maybe cover more broadly on what’s going on with healthcare for you? I mean reference accounts probably helped. And I guess the extension of that is how do you replicate that in these other verticals?
Dan Burkland: Yes. No, great question, Will. I appreciate it. And if you look at the upmarket expansion and the penetration we’re making across many verticals some that are very prevalent with large contact centers are certainly healthcare and financial services, large consumer product companies. I mean think about who we all as consumers contact every day, right? Healthcare is one that’s not going away ever, especially as our population grows older. So, if you look at the insurance company that we sold across the board has several legacy systems. It wasn’t one particular one, but it’s the typical three that we’ve talked about in the past. And that’s the issue, right? They’ve grown. The healthcare companies and insurance companies have all done M&A activity over the years and you get these systems that are a decade or too old.
And they don’t do a whole lot. And what they do, they do it for that given building, right? They’re premise-based systems that operate for that one set of resources or users that are in that facility. And that creates silos of efficiency, small ones, and that creates great inefficiency when you think about what a virtual contact center can do like Five9 because just the sheer moving of calls from the cloud straight to the resources as if they’re under one roof is a tremendous saver that we’ve had for years. Well, they now can take advantage of that. They also can take advantage of all AI and automation that we deliver from the cloud. So it’s a great vertical for us. It’s one that’s leaning into to CCaaS right now, primarily because of those AI and automation solutions and the old legacy platforms they’re on.
But also it’s one that they’re leaning into because they are going through a rapid change themselves in M&A activity and want to be — want to have the flexibility to do so in the future.
Will Power: Thank you.
Operator: And our next question will come from Deutsche Bank’s Matthew Niknam.
Matthew Niknam: Hey, guys. Thank you for taking the question. So obviously, new logos, you talked about a very strong quarter. Can you talk a little bit about where you’re taking share from? How it’s evolved in the last few quarters? And then just any color you can provide on linearity of bookings during 2Q? Thanks.
