Unidentified Analyst: Hi, team. Thanks for taking my question. So this is a follow-up to that last question. You mentioned some expected modular churn from smaller customers, low double digit net new DOS ads in 2023. Can you maybe provide the breakout and the expected DOS light ads versus pure DOS ads that you said the double digit growth and what are the average margin contributions on DOS versus DOS light versus pure modular customers, which is probably harder to get an average, but if you could provide any color on this, I appreciate it. Thanks.
Dan Burton: Sure. Yes, good question Scott. So yes, in terms of our ads for 2023, the majority of our ads will continue to be under more of a kind of non DOS light enterprise DOS approach in 2023. However, the DOS light will make up a little higher proportion than the last couple of years. Our average ARR for net new DOS ads was around 1 million per new client in 2022. That’s probably a decent proxy for what to expect in 2023, just given a little higher mix towards those DOS light offerings in terms of the kind of gross margin and contribution margin. So the DOS light offering the smaller offerings, has a slightly lower technology gross margin profile, but fairly similar to our DOS profile in year one. And then they €“ those offerings that are modular or DOS light don’t have that built-in technology kind of contract escalator each year.
It’s more of a traditional kind of upsell motion. And so we do have a little less visibility on the technology gross margin progression on those deals just given they don’t have that locked in pricing over time, which drives incremental gross profit. But we do have the opportunity to upsell and cross-sell those clients as well.
Unidentified Analyst: Thanks. And just my follow up here, you mentioned your gross €“ technology gross margin at high 60s for the 2023. But you also mentioned some cost structured advantages with the multi-tenant infrastructure and your ramping down investments. Is it possible to get to, mid to high 70% gross margins out in the out years based on all those moving parts? Thanks.
Dan Burton: Great question. Yes, it is. Yes, to your point, we will have a little less progression on technology gross margin than we would typically expect because we are working through some of that migration cost in 2023 and into 2024. However long-term we continue to feel confident in our mid-70s range of technology gross margin as we continue to drive these efficiencies through the multi-tenant architecture, support cost efficiencies, as well as just additional technology growth for a given client.
Unidentified Analyst: Thank you.
Dan Burton: Thank you. All right. Thank you. At this time, there are no further questions in the queue. So I would like to turn it back over to our speakers for any additional or closing remarks.
Dan Burton: All right. Thank you all for your interest and the time that you’ve invested with us and we look forward to keeping in touch in the future. Take care.
Operator: Thank you. Ladies and gentlemen, this does conclude today’s teleconference and we appreciate your participation. You may disconnect at any time.
