Greg Adelson: Yes, just two things to add. So one, the other component of this is our ability to bundle. We found some pretty good bundles that we think we can sell into that. So we think that will also help with the success rate and using what Dave said kind of leveraging the technology platform and some of the modules that we have coming out. The other part is the integration work that it does take. So it does take some while to get some of that integration work done before you can actually go out and close a deal. So we’re working on all that in the background as well.
Dominick Gabriele: Great. Thank you so much for the color. And I guess now that we have a modest deconversion expectation going forward and the way you’ve structured your guidance, the ROIC of the quarter was 20%. I was wondering if – and I know you don’t set a target for this. But do you believe that the company has kind of hit the floor ROIC level now? And maybe you could help provide some dynamics of why that might move around given some of the investments you’re making. Thanks so much.
Mimi Carsley: Sure, Dom. So first let me say that I think 20% ROIC is quite attractive and would be the envy of a lot of companies. So it’s a commitment to us. We believe that our thoughtful and conservative approach both from a fortress balance sheet, how we think about capital allocation has led to attractive ROICs historically. And it’s something that we know as a metric we’re following. We know you’re following it quite closely from a sustainability of that shareholder value creation. I would say there’s a little bit of a math challenge just from the metric itself. So because our net income is growing and because right now we are focused on debt paydown, we did some share repurchase our 35 years of – fiscal years of dividend growth, those take cash.
So while the net income increases the shareholder equity therefore, it reduces. Unless we continue to grow that dividend and do large buybacks or debt paydown by their nature mathematically that ROIC is going to dip a touch. And so I think it’s just more of the hangover effect from the debt we had from the Payrailz acquisition. And as we pay down that debt as we do more share repurchases and return that net income back to investors, you’ll see that rebound number. So it’s just for the trailing 12-month impact of that and the growing net income into equity that has that impact on that.
Dominick Gabriele: That’s super helpful. And 20% is very attractive. Thanks so much for the help.
Operator: Thank you. The next question comes from Dave Koning with Baird. Please go ahead.
Dave Koning: Yes, hey, guys. Thanks so much. Nice job. I guess you’ve mentioned a bunch of stuff on Payrailz already but just a couple just questions around there. How fast year-over-year is that just growing just as a standalone entity? And then it looks like you lost a couple million in the quarter, which is pretty similar I think from a pace standpoint as what you’ve been losing recently. Is that getting better? And then it looked like you changed the revenue guidance just a touch not much. But just kind of all of those things it seems a few moving parts there right now.
Mimi Carsley: Good morning, Dave. Let me start by taking it and then I’ll let Greg add in from a strategic perspective. I would say the acquisition remains on track. As Greg mentioned, we feel confident in our ability to hit the previous guidance. Revenue is growing at a nice clip. So I would say the visibility, because you’re only looking at two months if not, I wouldn’t annualize that to take it more of a trend than it is. So we still feel very confident in terms of that growth and the journey to profitability.
Greg Adelson: Yeah. And I would say as I mentioned earlier, we’ve kind of unhitched some of the barriers that we’ve had where a lot of the Payrailz solutions in the past were sold through resellers. So now that we brought in and have a lot of our direct sales folks focus on that and working through the issues that we have with the resellers, we feel very strongly that we’re back on track. And the technology itself again is even stronger than we anticipated as we’ve gotten in and have been able to work through some of the challenges there.
Dave Koning: Okay. Got you. Thank you. And then the one other thing just between the GAAP operating income guidance and GAAP EPS, the two items would be interest income it seems like you’re almost guiding for that to be net zero. And then tax rate would be the other. Is that like 24.5% just those two numbers to get us to GAAP EPS?
Mimi Carsley: Yeah, Dave, I would say continue to use 24% from a tax rate. At this point it’s too early in the year to see anything materially changing off of that. So I would still recommend using the 24%. The one positive from higher interest rates is you’re starting to see a little bit of interest income as well as it helps as an offset to interest expense. And I would just say those are probably — share count a little bit we did some buyback in Q1. But I would look at the totality of that. But most of the change in EPS is really coming from the operational impact the flow-through from revenue growth. I would highlight just that last year as a reminder the gains last year from the asset sale and the impact from VEDIP this year.
Dave Koning: Got you. Thank you so much.
Operator: Thank you. The next question is from Cris Kennedy with William Blair. Please go ahead.
Cris Kennedy: Good morning. Thanks for taking the question. David, you talked about innovation. Can you just talk about how the module progression for origin or the Jack Henry Platform is going?
David Foss: Actually I’ll defer to Greg for that one. He’s more in the day-to-day with the team on what we’re doing there. So go ahead Greg.
Greg Adelson: Yeah, sure. And as I mentioned we have a couple of modules that are out in beta right now. So we’re tracking exactly to the time frames that we have. We do have a public road map that we share with our customers. We do not share it outside of our customer base. But we have a road map. We’re executing actually to the T of that particular road map. And as I mentioned earlier we’re going to be pretty excited to be able to share where some of those modules are in their evolution and other modules that we’ve created back to a full monetization strategy that we have going for the rest of this year and into next.
David Foss: And Greg is going to give you that detail Cris on the February call.
Greg Adelson: Correct.
Cris Kennedy: Okay, looking forward to that. And then just a quick update Banno for business, is that attracting customers that are outside of your core base? Thank you.
David Foss: Yeah. So we’re not selling outside the core base yet as I mentioned earlier. But it definitely has got attention from people outside the core base. And we’re lapping because it’s one of those, you want to go and sell it right away but you’ve got to make sure that everything is lined up and ready to be effective. And it’s part of a larger strategy than simply selling Banno business outside the base. So yes we definitely are getting attention. We definitely are preparing to get sales out there actively selling outside the base. But it’s part of that broader strategy that we talked about earlier because it goes with retail Banno as well.
