Jon Kessler: Thanks, David.
James Lucania: I feel like Richard’s getting really mad at me now. He’s getting mad. He’s like, I’ve got answers way too long.
Operator: The next question comes from Mark Marcon with Baird.
Mark Marcon: Just relative to BenefitWallet, any updates that you can provide there just in terms of the way of what you expect Conduent had a call? Is there any reason why you shouldn’t be able to achieve the same level of profitability or the same interest rates on the funds that they’ve achieved? Is there anything structurally different? Or is there any portion of the BenefitWallet portfolio that isn’t coming over to you?
Jon Kessler: So I think I can give a short answer to this one. To the last part of your question, yes, the answer it well, there are 2 parts. One is the non HSA component of the business so that they have some FSAs and the like, and they are not part of this transaction, and they will continue to be managed by Conduent’s broader human resources outsourcing business. And then secondly, of course, as in all transactions, there will be some attrition both in the midst of the transaction and some that might occur shortly thereafter. But that we’ll try to account for that and we certainly have tried to account for it in our thinking. As to the first part of your question, I do think it’s important to note, and I have to admit I have not looked at the transcript of Conduent’s call, but I know that the executive team there is very entertaining.
So I’m guessing it was more fun than ours. But I would note that like many of our competitors, the way that Conduent or let me say this without genericize. Many of our competitors, the way that they their strategy for deployment of funds is that they are deployed in banks and importantly, they are deployed at short rates. So that means much more variability. And so if you look at fiscal, let’s say or I would say calendar 2023, like that was an awesome strategy in calendar ’23. And it continues to be an awesome strategy until it isn’t. It would have been a very, very difficult strategy in, let’s say, calendar ’20. So as you know, we deploy on a ladder, and we’ve taken a number of steps to kind of make sure that’s as smooth as possible. So that will be different.
I would not I don’t know what Conduent said off the top of my head with regard to this, but you should think about us as deploying these assets in accordance with the ladder and process that Jim has described at Nazi.
Operator: The next question is from Jack Wallace with Guggenheim.
Jack Wallace : I’ll keep this quick. Jim, I think this one’s going to be directed at you. Just wanted to get a high-level puts and takes net of any of the reclassifications of what to be about a 50 basis point lift of the EBITDA guide for the year. Just wondering if that’s mostly some of the benefits from the technology investments that Jon mentioned earlier or if there’s anything else we should be thinking about?
James Lucania: Yes. No, nothing huge, right? What we’re trying to do is roll in the being a little bit ahead on sales, a little bit ahead on accounts and trying to factor in the comment that I made during the discussion about when markets are good, you see a little bit of shift towards investment from cash, and just small adjustments down the cost line. So yes, 50 basis points, I want to call within the rounding error there, but just providing you a little more precision and with more perfect information here.
Operator: This concludes our question-and-answer session. I’d like to turn the call back over to Jon Kessler for closing remarks.
Jon Kessler: An hour and five minutes. Not bad. Thanks everyone for joining us. We will be releasing our 10-K shortly, working hard to get that done for you, recognizing that there are some changes this year, and I’m sure it will be a real page turner. So thanks all very much.
James Lucania: Thank you all.
Operator: The conference has now concluded. Thank you for your participation. You may now disconnect your lines, and have a nice day.
