Elizabeth Anderson: Got it. Thanks so much.
Dan Burton: Thanks, Elizabeth.
Operator: Thank you. Our next question will come from Richard Close with Canaccord Genuity. Your line is open.
Richard Close: Yes. Thanks for the questions. Congratulations on the year end. One thing on the tech-enabled sourcing. I’m curious if there’s such a need in the ROI is there for the offering, why is the sales cycle so long like a year or so? Just curious.
Dan Burton: Yes, it’s a great question, Richard. And I would share we’re still learning. And as we mentioned in the prepared remarks, we have a limited data set thus far in terms of understanding exactly those dynamics. And we have had some cases where the sales cycle has been shorter than one year. But there are some unique components that we’ve also observed takes some time to work their way through, even though we already have an existing client relationship and the vast majority of these pipeline opportunities and it’s a strong existing relationship. First, the size of these deals is often very large, and as such, needs to often go up to the Board for review and discussion and approval. It’s also a big strategic move. And these health systems realize also that the lives of the individuals that are involved in the rebadge process are directly impacted, and they take that very seriously, and we do as well.
It’s one of the differentiating factors that we care so much about those team members and we keep them locally deployed as we rebadge them. But there’s a lot of concern about how do we most effectively enable those team members to feel really good about that. And that involves some steps that take time like going and meeting with the team members before, typically a month before the contract comes to fruition, so that they have time to adjust to that reality. We can answer their questions. We can extend them offers to come and join Health Catalyst as rebadged team members. And then often, when this is involving multiple functional areas like abstraction and analytics, there are often multiple C-suite executives, and the management teams associated with those C-suite executives all need to feel good about what we’re going to be doing together.
Now all of this takes time, but it also reinforces and strengthens the relationship as we go through that process and a thoughtful way together with our clients. We come out of those discussions and those experiences with an even more deepened and multifaceted relationships. So it’s worth the time, and we are seeing a very high conversion rate as we work through these opportunities in the pipeline, but there are also some dynamics where if we try to artificially pressure or move things through the process faster than would be a natural cadence, we can do a little bit of relationship damage. We want to avoid that. These are long-term decisions, often five-year renewable contracts, and our clients are thinking about this over the next 10 years, 15 years, 20 years.
And so if it takes a few months longer to just make sure everyone is on board, it’s well worth that extra effort. And we wanted to be thoughtful about that and build that into our forecast so that we’re always taking the right long view of those client relationships as we progress them through.
Richard Close: Okay. That’s helpful. And then with respect to €“ appreciate the tech-enabled bookings weighted to the second half. Just curious what you would say in terms of how you guys set your guidance this year as compared to last year and like maybe steps you have taken to sort of derisk it.
