Jon Kessler: Why don’t I — do you want me to take the first half and you take the second half, Jim?
James Lucania: Sure. Yeah, sure.
Jon Kessler: Okay. So, a way to think about BenefitWallet is that as I suggested earlier, we’re going to get a little bit more than half a year impact. Maybe you could say, I don’t know, maybe say two-thirds of your impact, I don’t know somewhere around there this year. And this product — this transaction like prior transaction that we’ve done is going to be highly accretive. So, it’s certainly — we were already anticipating that we would be delivering a nice implied boost in EBITDA margins. And I think this has just helped us accelerate for lack of a better term, where we ultimately felt we would get to as we have accounts mature and so forth. So, the way I think about the first question is — and I would encourage some of do modeling, but I think — I remember, George, you asking me several years back, whether the company could return at some point, and I think you were being a little bit let the word I want.
You were sort of poking me a little bit, saying can you guys return to EBITDA margins with a poor handle, we’re offering guidance right now for next year between 38, 39. And so this has sort of accelerated some of that process, and that seems like a good thing. Jim, on the second half. Do you want to take that one, which was about — I think, about the timing of asset we deployed.
James Lucania: Yeah, exactly reinvestments. And yeah, you’re exactly right. Like the — there’s sort of a block of wage bumps in assets that are going to be maturing actually not so much in next fiscal year. We’ve got a relatively smaller block of assets maturing Q4 of this year and throughout next fiscal year, and it will be the following two years where some of those lumpier blocks are going to be maturing. We’re being reinvested is a better word to say.
Richard Putnam: Thanks George.
Jon Kessler: The way to think about that, is since we deployed the original wage assets in, I’m going to say, calendar 2021, no, calendar 2020. And the kind of core piece of that is five-year, right? You’ll see a lot of that roll over in the middle of calendar 2025. There’s a little of it this year, but you get the idea. And the rollover well because we all know where we were in 2020. Sorry.
Operator: The next question comes from Mark Marcon with Baird. Please go ahead.
Mark Marcon: Hey, good afternoon, and thanks for taking my question, and let me add my congratulations. Just wondering if you can talk a little bit about you had good new logo sales. I’m wondering if you can talk a little bit more about what you’re seeing on the enterprise side just in terms of both from a competitive perspective, but also in terms of the desire to shift part of the employee population to HDHPs, particularly in light of the accelerating healthcare costs that are coming through. And then I’ve got a follow up.
Jon Kessler: Do you want to hit this one?
James Lucania: Sure. Happy to. Hey, Mark. How are you? I expect you’ll be out in February.
Mark Marcon: Absolutely.
James Lucania: Because we did get our first biggest snowstorm as we can. Anyway, so kind of an order, yeah, I mean, we’ve talked about in the comments that this — we’re seeing some good progress on bringing on these new enterprise logos. And this has been a lot of work, a lot of time into it. We’ve not only refined our marketing message and brought on some great sales team members that are hustling there, but also I think our product suite is continuing to have evolved to take care of their needs. I mean we’re doing some really nice things there. So, I think the bottom line is we’re pleased with the progress we’ve made in the new logos. Now I’m continually amazed — and maybe it’s just because, as you know, Mark, every year, I tell a little fact that this is from the Kaiser study, the average high deductible plan that is HSA qualified in the country is about $4,800 per family plan.
And the average non-HSA deductible, let’s say, for a PPO plan is about $2,900. So, as those numbers keep getting closer, it really doesn’t make a heck of a lot of sense for people not to opt into the HSA, right? And so, we just keep helping employers and then in kind of the perfect world, they allow us to then speak directly to their employees about the benefits, tax benefits and everything else around the health savings account. And with the deductibles narrowing like that [indiscernible], it’s really hard not to argue they should just set up for because they’re going to basically close that gap on any contributions they can get from their employer and then also, of course, tax savings, right? So, we just keep promoting it, and we’re seeing some great uptake in our relationship management team are marketing are doing a great job delivering that message.
And so, our work is never complete. There are still employers and sectors that tend to be slower adopters, which means there’s still a lot of fruit and tree, but we’re continuing to do everything we can to check trees, and this is a great time of year and we’re making good progress with messaging. So, I’d say thumbs up in both cases, good new logo growth and then also good work with enterprise team and actually the market and bringing on more growth.
Mark Marcon: That’s fantastic. And then, can you just comment a little bit more about the competitive environment? I mean, obviously, that may get consolidated. But then in addition to that, there’s other big players with rates going up, how should we think about service fees over the next year and things of that nature. Obviously, you’re gaining more than your fair share of the market and continue to gain share. But just wondering if you can give us some more comments on that.
James Lucania: Yeah, Jon, how do you want to break that up?
