Karsten Voermann : Sure Jailendra, great to hear from you. This is Karsten speaking as well. So I’ll see if I can hit all the parts. I think the three parts generally were; number one, how we see the general trends evolving; number two, the being a contributor as we commented on in terms of dollar growth, potentially one of the largest wins to our Y-o-Y growth this year. And whether there’s a third piece in there as well Jailendra that I that I didn’t catch?
Jailendra Singh : Just in general, like the comments around prioritizing recurring service arrangements, like what do you think there?
Karsten Voermann : Sure, let me take those in reverse order and hit that one first. I think that’s probably in some ways the most important one, the recurring revenue arrangements, because when we look at our performance in fourth quarter of ’22 relative to fourth quarter of ’21, the big piece of it was the reality that far manufacturers had significant amounts of budget and others too at the end of CY ’21, where they look to deploy those funds and look to us since we could be deploy them quite quickly given their material proportion of direct contracts with manufacturers versus working through agencies, so we can react quite quickly. I think that revenue is great to receive and we’re grateful for it. However, revenue that is more recurring and is associated with a particular €“ this goes back a little to Stephanie’s question too.
I think it was around blockbuster drugs, around larger drugs and larger manufacturers will continue to create that recurring stream, that’s very attractive to us, and so deploying the sales force and deploying our energy against that more recurring revenue in the long run creates more shareholder value, because the revenue stats have topped each other year-after-year versus being more episodic in nature. So I think that’s what we’re referring to in the context, the greater focus on recurring revenue. I think, looking more broadly at the pharma manufacturer solutions business, we still see this as a huge and very attractive TAM at $30 billion or so, and we penetrated very, very little of it so far. The other reality is the shift to digital is continuing to happen.
In fact as I think we see some data suggesting that it’s accelerating, if anything. So from that perspective we see great opportunity in that continued shift to digital, too. I think finally, the other aspect of it that’s important for us is that we are now focused not just on the consumer side of the business. Early last year we launched provider only focused pharma manufacturer solutions, and since then we’ve seen that only increase, especially with our HCP mode product and others have helped us to capture and draw the attention of more and more providers. That creates effectively a new growth vector, growth avenue for us on top of the existing growth vectors of more manufacturers, more medications per manufacturer and more solutions that we offer in relation to each medication.
So we see those attributes contributing to accelerating pharm manufacturer solutions growth through the year. Did I hit all the questions there Jailendra or there’s still a gap?
Jailendra Singh: No, that’s perfect. Thanks a lot.
Karsten Voermann : Great, thanks Jailendra. Great to speak with you.
Operator: Thank you. . One moment for our next question. That will come from the line of Jonathan Yong with Credit Suisse. Your line is open.
