August Troendle: Yes. So whenever I talk about win rate, we’re talking about what happened in the current quarter and do not necessarily reflect changes in backlog. So they are awards. They’re wins or not wins, which would be initial awards, most of which do not appear in the current quarter. So I wouldn’t refer to winning a lot because a lot of things were put into backlog that quarter. They’re kind of a mixture of things that happen currently and things in the past, et cetera.
David Windley: Got it. And then on the cost points and productivity points that you’re making, and you mentioned, I think, moving some costs around by geography. Could you elaborate on that a little bit? Are those — are you offshoring some functions to take advantage of labor arbitrage or what’s going on there?
August Troendle: That’s correct. That’s exactly it. But partially on the on the IT side, but partially on operation side, too. Yes.
David Windley: And any quantification you can give us on what you think that might yield over time?
Kevin Brady: No, I don’t. We don’t pick particular specific financial goals on that, but we are moving a number of things to some cheaper geographies, both in Europe and in India. So it — but this is not going to be drastic, but I do think will provide some support for keeping our productivity improving over time.
David Windley: Yes. I’m going to ask one more and I apologize for anybody who’s behind me. But on the pass throughs, last year, the elevated level, you had talked about a few factors, but one of those was inflation coming through from the sites, essentially sites asking for more reimbursement for their participation in the trials. I wondered if — I mean, acknowledging everything that’s already been said, I wondered if that is persistent, or if some amount of that inflation or site rates, so to speak, has started to normalize in a way that would actually cause these pass throughs to bias lower.
August Troendle: I don’t think we could look at the current miss on pass through projections as reflective of that change. I mean, these are things that have been in backlog, et cetera, for a while. I do think that the inflationary spiral that we saw after COVID and the last few years, I think that’s done. I mean, I don’t know that we’re going to see a reversion to prior pricing, but I don’t think there’s a continued spiral. So it is certainly moderated, whether it will pull back down as staffing at sites improves, there was really a crunch at one time. And the bidding for staff and the kind of premium was substantial, or at least appeared that way in terms of inflation. But I don’t see that as being an acute issue. So it may come down slowly over time, but I don’t think there’s an acute change.
David Windley: Okay. Thank you.
Operator: Thank you. And I’m showing no further questions at this time. And I would like to hand the conference back over to Lauren Morris for any closing remarks.
Lauren Morris: Thank you for joining us on today’s call and for your interest in Medpace. We look forward to speaking with you again on our second quarter 2024 earnings call.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
