Alex Paris: Great. That’s helpful. And then, this was probably for Sean. You had a record year in signing new schools in fiscal 2023. One of the issues in the fourth quarter that contributed to the revenue shortfall was the inability to deliver the services, the onboarding services associated with it. And then, when you miss it in the summer, when do you get it back? Based on earlier questions, it sounds like you don’t get it back until next summer. Is that right?
Sean Covey: Yeah, that’s typically what happens, because professional development usually takes place, most of it takes place during the summer. So, a new school comes on, there’s usually two or three days of professional development per school, right? And if it’s too late in the year, then they say, well, we’ll do coaching throughout the year as we start the school year, but the professional development that goes deeper with everyone in the same room at the same time, we’ll have to delay until next summer. So that will — it hurt us last year, it will help us this year. And the momentum across the board is really good. We’ve got lots of large new contracts in the pipeline. We’ve got three states talking to us right now about some big deals. So, we expect that services will we’ll have a nice second half of the year for the reason of last year coming in late as well as a really nice building pipeline for this year.
Alex Paris: Excellent. Thank you. So, not only was there a shortfall because of that last year, there’ll be a little bit of a doubling up on some of those onboarding activities this coming summer?
Sean Covey: Yeah, I think so. And we’re also pushing everyone hard to get in early this year. Nice to bring them on as many schools as we can. It’s always better to bring them on sooner than later.
Alex Paris: For sure. Okay. Great. And then two last ones. I think the target for this year, Paul, is 40 new client partners and other support roles. How many did you hire in the first quarter? And is it going to be level loaded, or is it more back half loaded?
Paul Walker: Yeah, it will be a bit back half loaded. So, we ended the first quarter with 300 client partners and then roughly 150 or so of the other client-facing roles, so about the same 450 that we reported on at the end of Q4. And we are still committed to adding the number for the year, and those will be back loaded, but not all at the very end, they’ll come back — more towards back half of the year.
Alex Paris: Okay. And then maybe this one is for Jen. The Impact Platform at the end of — I think it was end of Q4, you said the vast majority of English-speaking clients are on the platform, but you’re in the process of rolling out additional languages. Where are we in that process? And how penetrated are you with clients now?
Jennifer Colosimo: Thanks for asking, Alex. We are thrilled that as of October, we had launched in all of our, what we call core languages and about 25 languages have launched the Impact Platform. It was a really effective launch, and we’re seeing more and more of our clients globally move to the Impact Platform. Obviously, it makes a big difference to our client base in the U.S. as well, because they can deploy scalably in multiple languages. So, deployment went extremely well. There’s a couple of our more — our less used languages that haven’t yet deployed, but the majority in what was targeted happened in October.
Alex Paris: Great. And what can we hope for or expect from the rollout of Impact Platform? Is it a higher initial selling price? Is it higher retention rates? Both?
Jennifer Colosimo: The primary benefit, I think, is the value proposition that we are changing — we’re driving collective behavior change. So, in terms of the Impact Platform, we always have great content. We always have the modalities, but having the seamlessness to be able to bring this to an enterprise at scale particularly as many of our buyers don’t have a lot of people in the department, and this makes it much more scalable. What we’re seeing with those that have deployed is we’re better able to track that behavior change, we can track pre and post, the skills, the movement. One of our latest case studies, the primary thing that the buyers love is the metrics and the ability to scale with lower staff.
Alex Paris: Excellent. Very helpful. Thank you very much, and that’s all I have for now.
Paul Walker: Thanks, Alex.
Operator: Thank you. Please standby for our next question. We have a follow-up question from the line of Nehal with Northland Capital Markets. Your line is open.
Nehal Chokshi: Yeah, thank you. Paul, at the beginning of your prepared remarks, you talked about how invoice subscription value was flash in fiscal 3Q and 4Q, but [influx is] (ph) up in fiscal 1Q. What was actually the precise level in fiscal 1Q? And do you expect that to continue to influx up in fiscal 2Q?
Paul Walker: So, your question — just to make sure I’ve got your question there, because I cut out just a second on our end. Could you just repeat it one more time? I think it’s about invoice subscription levels Q2, Q3 versus Q4, Q1. Is that your question?
Nehal Chokshi: Yes. Well, and into Q2 of this fiscal year ’24?
Paul Walker: Yeah. Great. Okay. So, invoice subscription levels, U.S./Canada AAP were flattish in Q2 and Q3. If memory serves, they were up about 8% in Q4, and then up around 13% in Q1. And then, we expect that they’ll continue to be good in Q2.
Nehal Chokshi: Okay. Great. And then, Steve, real quickly, do you have thoughts on EBITDA for the February quarter?
Steve Young: EBITDA, I’m sorry, again…
Paul Walker: EBITDA for this quarter.
Steve Young: [indiscernible] Yes. So, we talked about adjusted EBITDA being between $6.2 million and $7.2 million.
Nehal Chokshi: Okay. Thank you. I missed that. And what about the currency headwind for the full year on EBITDA?
Steve Young: Well, our constant — our impact of currency was insignificant in Q1. If we stayed exact — if the rates stayed exactly what they are now, we would have some impact through the remainder of the year. But we don’t know what’s going to happen with the exchange rate, so we don’t know what that would be. That might impact revenue like $1 million if rates stayed exactly as they are now. But there was no — there was an insignificant impact on adjusted EBITDA and an insignificant impact on sales in Q1.
