Jesse Geiger: Dave, let me just add one final point on active programs and backlog that had funding in the beginning, but then need to raise incremental capital at some point along the journey. We don’t pull those out of backlog every time that a sponsor is raising incremental capital in the middle of a study. But we do factor those into our detailed build up revenue projection that then becomes the basis for our guidance range. And so we’ve risk-assessed and risk-adjusted the revenue projection leading into backlog, while there may still be some of that unfunded activity sitting in the backlog balance.
David Windley: Got it. I’ve taken a lot of time, sorry about that. Much appreciated on the transparency in kudos to your navigation through the tough environment. Thanks very much.
Operator: Thank you. Our next question or comment comes from the line of John Sourbeer from UBS. Mr. Sourbeer, your line is now open.
John Sourbeer: Hi, thanks for taking the questions. And I know there’s been a lot of questions here on the cancellations and what you’re seeing there. But I guess just maybe one more on that. Any specific therapeutic type or class or phase where you’re seeing more weakness versus others within the book of business?
August Troendle: I don’t think it’s focused on any particular therapeutic area or stage of programs. No, I don’t really have a color to that.
John Sourbeer: Got it. And then just I appreciate the color on the cost on environment. And you look at new awards growth did slow some this quarter, down from that mid-teens to around 6%. Just any color on how you think those new awards play out through 2023.
August Troendle: No. I — look, I think it’s — again, it’s a challenging environment. We’re playing it month-to-month. So far, things have been okay, but in a weaker environment. Our win rate has been very strong, which is supported things, and that’s always hard to judge. I think that we’re hoping that we continue with book-to-bills and above 1.2 range, but we have to see.
John Sourbeer: Got it. And then just last one here for me. I think back in December, there were some local reports just on the hiring there. Just maybe any additional color just on turnover you’re seeing wage pressures and just the ability to pass along that on pricing and just how we think about that impacting the margins throughout the year.
August Troendle: Our turnover has come down nicely. I think we’re doing well. We’re getting good traction on new hires. I think we still are hiring reasonably rapidly. And I think that there remains a pretty tight labor market, yes, but I think we’re making good traction.
John Sourbeer: Thanks for taking the questions.
Operator: Thank you. Our next question or comment comes from the line of Eric Coldwell from RW Baird. Mr. Coldwell, your line is now open.
Eric Coldwell: Yes. Can you hear me?
August Troendle: Yes, we can.
John Sourbeer: Great. You just mentioned, August, on the hit rate, but I was hoping to get a little more detail on where it stands versus recent history, longer-term history? Did it sequentially improve decline here in the fourth quarter? Any additional quantitative data would be helpful.
August Troendle: Yes. I think numerically, and I don’t want to get into the actual numbers and start reporting that as a metric. It does bounce around quite a bit. I think it ticked down slightly in Q4, but it’s still in a very strong range — in a historically strong range. So — which has really been true the last year. So we’ve had a really, really strong win rate. And I think that’s part of the selectivity, and we were using in selecting projects and all the rest of it, but that’s been a fortunate support for us, yes.
