Jeff Silber: Okay. Thanks so much.
Operator: Thank you. Our next question comes from the line of George Tong with Goldman Sachs. Your line is now open.
George Tong: Hi. Thanks. Good morning. You mentioned 1Q tech vendor renewals are especially important because of a little bubble there. Can you help quantify that? How much concentration is there compared to other quarters in the year?
Craig Safian: Yes. I think – I mean, again, remember, our tech vendor CV is a little less than 25% of total CV. Normally, Q1 represents a little bit more than 25% of total renewals on the overall franchise. This year, with tech vendors, it’s in the low to mid 30% of overall CV. So it’s not a huge bubble. It’s just a little bit of an overweighting more than normal in the first quarter.
George Tong: Got it. That’s helpful. And then you’re guiding to EBITDA margins of 23% for the year. What do you see as the major driver of potential upside to that target?
Craig Safian: I think at this point, George, it’s revenue upside will drive the biggest potential for margin upside from that 23%. As we’ve talked about – I can’t remember whose question it was, I think it was Josh’s question, the OpEx is – again, forgive me for using this term, more normal than it has been for the last few years. We’re back on our territory growth planning. We’re back on our more normal merit increases kicking in on April 1. And so I feel really – we feel really good about the OpEx plan we got. And so I think revenue upside across the various business lines would be the place that could potentially unlock a little bit of margin upside. That said, if we are doing better from a revenue perspective, and again, Gene and I both alluded to this, we’ve got recruitment capacity to go faster.
And so we want to make sure that not only are we doing well in 2024 that we are setting ourselves up to continue to perform really strongly in ’25 and ’26. And so if we have the opportunity to go a little bit faster on GTS and GBS headcount growth, we’re going to take that opportunity for sure.
George Tong: Got it. Thank you.
Operator: Thank you. And I’m showing no further questions at this time. I’d like to hand the call back over to Gene Hall for closing remarks.
Gene Hall: So here are the takeaways for today’s call. Gartner drove another strong performance in Q4. We deliver incredible value, whether our clients are struggling, thriving or anywhere in between. We’re exceptionally agile and continuously adapt to the changing world, and we know the right things to do to be successful in any environment. Looking ahead, we’re well positioned to continue our sustained record of success far into the future. Our client value proposition and addressable market opportunity will allow us to drive long-term sustained double-digit revenue growth. We expect margins will expand modestly over time, and we generate significant free cash flow well in excess of net income. As we invest for future growth, we’ll return significant levels of excess capital to our shareholders. This reduces shares outstanding and increases returns over time. Thanks for joining us today, and we look forward to updating you again next quarter.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
