Joe Vruwink: Great. Thanks for taking my questions. Jason, I wanted to go back to the buyer win you mentioned in the comments. They’re thinking about future pipeline and wanting to ready the right technology around the business strategy with this pipeline. I think over the past year, the feedback from a lot of vendors serving pharma has actually been kind of the opposite. We are hearing from customers they don’t know what the pipeline is going to bring, and so they’re kind of delaying new tech decisions. Not to put words in your mouth, but this seems more like offense at your customers. Is that maybe more pervasive? Is it beginning to become more of an offensive decision making process? And if that’s true, what sort of Model N solutions might actually start to register an uptick relative to what the prevailing experience has been?
Jason Blessing: Joe, thanks for the question. Joe, can you hear me? I’ve just been told we’re having some audio issues.
Joe Vruwink: So far so good. You were breaking up earlier, but I hear you now.
Jason Blessing: Okay, wonderful. Yes. So this question of drug pipeline and customers playing offense or defense, I think is an interesting one. Some customers certainly have robust pipelines and a unique growth opportunity in front of them. Bayer is certainly one of those. Obviously, if you’ve been telling Bayer in general in the news, they’re going through a bit of a business model transition on their own and I think making strategic evaluations on different parts of the business. This isn’t anything confidential. It’s obviously been well reported in business trade with Roundup and the Monsanto acquisition. But certainly in terms of how they’re partnered with us, they’re really good about their pharma business, and we have a good pipeline that differentiates them from some of their other partners in the industry.
But they certainly do have a good pipeline of drugs coming up that they’ve been talking about. And Bayer is one of those companies that I guess had kind of neglected revenue management, and they’re an SAP customer and they had quilted together a revenue management solution that was some SAP stuff, some custom stuff, some manual stuff. And I think they finally got to a point where they just said, hey, there’s so much ROI here and so much leakage that’s happening and so much infrastructure we’re going to need as we’re reinventing the company and refocusing on pharma and some of these launches, let’s turn to the industry leader. And so, of course, we were the beneficiary of that. I think the other important point I would mention on Bayer, they basically bought our core footprint to help with commercial and government pricing.
And there’s also, I think, a pretty interesting set of additional areas where we can help them after we get them live on this initial phase, additional modules in the U.S., plus potential international expansion. So we’re excited to welcome Bayer to the Model N family and think we can really help this iconic brand.
Joe Vruwink: Okay. That’s great. And then one for John, SaaS ARR up 16% in 1Q, slower than that in 2Q just because of the comps and then trending back up towards year-end, should we make the read that therefore 4Q SaaS growth is faster than what you just did in 1Q? And so far, in terms of your cRPO bookings and where the pipeline stands, is everything still kind of supportive of that outlook for a stronger second half of year?
John Ederer: Joe, can you hear me okay where — from with the audio connection?
Joe Vruwink: You’re a bit quiet.
John Ederer: All right. Any better there?
Joe Vruwink: Yes, much better.
John Ederer: Okay. So, yes, in terms of the SaaS ARR metric in Q1 and then also the outlook for the year, the comments are correct. We did have a little bit of pressure on the year-over-year growth in Q1, and we expect that to be an even more difficult comparison in Q2. When you look at last year, I believe we were up 40% year-over-year for that number. And so it’s a pretty tough comp for Q2. But then after Q2, we can see a path towards improving metrics over the second half of the year and closing out the year at a higher level. We’ll still have to book some business between now and then, but we feel like we’ve got decent line of sight in terms of how that metric is going to perform over the course of the year.
Joe Vruwink: Okay. Great. Thank you very much.
Jason Blessing: Yes.
Operator: Next question, William McNamara with BTIG. Please go ahead.
William McNamara: Hi guys, this is Bill on for Matt. Wanted to follow-up on the price management tool and tech question. Is there any insight you can give us about kind of the total addressable market you’re seeing for this product?
Jason Blessing: Yes. So we’ve talked about our High Tech TAM being around billion dollars and what we’ve found as we’ve been rolling out some of these new add-on products. They have the opportunity to provide anywhere from 10% to 30% uplift based on what a customer, existing customer is paying us. So these smaller – “smaller products” that we’re rolling out or add on products, probably a better way to characterize them, really do have a meaningful impact on our TAM. And they also give us fresh new things that we can bring into our customers and address issues that are top of mind. So we’re excited about this and as I’ve said, I think in past calls, and this is no exception, every new product that we build, we’re actually building it in conjunction with a handful of customers to make sure we get the usage patterns and functionality correct.
