Operator: Our next question comes from the line of John Davis with Raymond James. Please proceed with your question.
John Davis: Hey, good evening, guys. I actually want to follow up on Darrin’s question on new logo growth. So if you look at 2023 NRR of 125, I think organic growth was about 39%. So 14 points from new logos, 700 new clients. Maybe talk a little bit about how you think about NRR and new logo growth going into 2024, and also how much growth you get in year. I mean, you signed up 700 new clients this year. In the year you sign up a client, what percentage of that revenue do you get in year versus the annualization the following year?
Rob Orgel: So when we’ve done our analysis into those two elements of the growth algorithm, sorry, greetings, JD. When you look into the allocation between those two or the split, what you see is that it’s relatively balanced. Slightly on the larger side is the contribution from full year effect of clients signed the prior year. So that’s the slightly bigger half of that portion. The other piece being the client signed in year. And so that’s, I think, the allocation that you’re looking for.
John Davis: Okay, great. And then Rob, maybe just on the healthcare, Mike, healthcare down 1%. How do we think about the reacceleration of that business? Kind of thoughts, just bigger picture on healthcare and what you think that business can grow longer term?
Rob Orgel: So we’re doing a bunch of things to try to accelerate revenue on the healthcare side. So we have great conviction in the platform. We have great conviction in the team. We’re not satisfied with the results that we saw in 2023 and neither is the team. So in terms of things that we’re focused on, we’ve been really good about trying to be very clear about how we can target the different segments at the hospital level, the large hospitals that have been the core of where we are, making sure that we have clear strategies around each of the different EHRs and ways to bring a different set of solutions in based on the needs of that hospital and their setup. So it may be the fullest version of our capabilities that is our full platform plus integrated financing that we provide via a partner.
That’s a very compelling offering. It may be the offering that we have installed in most of our base, which is sort of what you’ve heard us talk about in the past in terms of everything from pre-service to post-service. And we have new capabilities that focus just on payment, sort of the straightforward payment processing that are an even lighter lift that makes sense for some of our clients. So first thing is making sure we’ve got sort of that range of offerings in our traditional base. The second thing is the subsegments that we started talking about. So today I mentioned Ortho and Nebraska, but they’re one of a whole, sorry, category, sorry, multiple categories of subsegments that are an opportunity for us to take sort of the full power of our software and take it into these subsegments.
And so that’s a very exciting opportunity for us. We’ve allocated some of our sales team to that. So between those two and continuing to expand with our existing clients, those are the three elements that we are looking to see a return to better growth in 2024 for the healthcare business.
Operator: Our next question comes from the line of Chris Kennedy with William Blair. Please proceed with your question.
Chris Kennedy: Good afternoon. Thanks for taking the question. Can you give a little bit more color on the payer services initiative? I see in the deck over 10 million from the Australian insurance opportunity. Can you talk about the other opportunities that you have and how big those can, if they can move the needle?
Michael Ellis: Yes. Hey, Chris, Mike to start off. So obviously the payer services is something we talked about, back at our investor analyst day a couple of years ago and talked about expanding into these ecosystems that our industries really are surrounded our industries. I would say when we got into payer services, we had a whole series of initiatives focused on what value add, can we provide the payer in these instances? And so you start to look at things like insurance, which can be bundled at the point of checkout for education. There’s potential, as we mentioned before, publicly of bundling something in relation to travel around that same component. If you look at how students acquire other services that they may need when studying abroad, insurance is just one of the many things that a student or a parent potentially would like to have.
In Canada, we’ve mentioned things, a thing called the GIC, which is a actual deposit account that’s required to get a permit in Canada to study. And that has to be funded prior to the issuance of that permit. And so, again, that’s something that, as you’d imagine, we’re at a critical point in the flow between the family, potentially an educational agent and the university. And as you’ve seen the success in the insurance product, in a very short period of time, we think we’re at a unique position without any marketing dollars really to be spent to put great solutions in front of the payer that can make their experience great. And so, again, that’s the strategy. It’s across multiple industries. And we think we’re just getting started when it comes to payer services.
Chris Kennedy: Great. Thank you. And then just real quickly, the follow-up. Can you just give us an update on the FX volume that you had in India? That was an issue that was called out in the September quarter. Did things kind of normalize in the December quarter? Thanks a lot.
Michael Ellis: Yes, I think you used a good choice of words there when you said normalized. And when you looked at Q4 versus Q3, the FX percentage was actually up just slightly. So we view that as a sort of good, healthy result and quite satisfied with the growth in India and the FX percent.
Operator: Our last question comes from the line of Tien-tsin Huang with JPMorgan. Please proceed with your question.
Tien-tsin Huang: Hey, good afternoon, everyone. Good to talk to you guys. It’s just one question. I’ll close out the call. Just with the guidance range, it looks a little bit wider than usual. Any change there in the visibility call-out to get to the upper or the lower end of the guide? I know the quarter obviously came in ahead. So I’m just trying to better understand the variance there. That’s all I had. Thanks.
Michael Ellis: Yes, it’s Mike Ellis. Yes, we did expand the revenue guidance. It represents basically 5% of the full-year guide. And given the growth of our revenue amounts, we thought it’d be reasonable given the uncertainty specifically around the Canadian regulatory challenges. And as we kind of update over the course of the year, of course, we’ll narrow that range as that becomes more clear. No change with respect to how we guide.
Tien-tsin Huang: Right. Perfect. Thanks, Mike.
Operator: That is all the time we have for questions. I’d like to hand it back for management for closing remarks.
Michael Massaro: Appreciate everybody’s time on the call. Thank you very much and talk to many of you soon.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
