We’ve got lots of projects going on with big customers right now, as you can see in our professional services revenue and margin. So yes, that part of the market, which is ultimately our core constituent, seems to be pretty healthy. As I talked about in response to the last question, to be seeing a little bit of a pickup in high-tech, as our existing customers that are market leaders are investing. And we did see a nice group of prospects in high-tech attend Rainmaker and those deals have continued to progress forward in the pipeline. So yes, I mean we have seen some of these trends that others have reported. But I think it’s stabilized, certainly in our business, as we look forward into our fiscal ’24, I’m pretty excited about it.
Billy Fitzsimmons: Great. And if I could sneak in one more. Looking at the press release, you guys highlighted a couple of new product releases and enhancements, how should we think about the path to monetizing some of these newer solutions in the quarters and years ahead?
Jason Blessing : Yes. So I mean, there’s a few new products in there, 340B is a product that’s actually in the market that we’ve been working with existing customers to enhance and further develop. And as I talked about in response to one of the questions earlier, in terms of pipeline and interest, that one has been a star for us this year. We’re still trying to fully assess the impact of the Inflation Reduction Act, but, that’s another one where it drives people to our door because they know eventually they’re going to have to be compliant. So that certainly drives demand for us. And then the Channel Collaboration Portal that we talked about on the high-tech side is definitely front and center for a lot of our customers and prospects.
So the response to those releases and not just the new products that we’ve built there. But over the last year and the things that are on our road map, people are really excited about it. I think coming out of Rainmaker, one of the consistent things I heard from our customer is it’s great to see Model N coming out on the other side of SaaS transitions really being able to work with us and partner with us to build new products and innovate. So I’m excited about the roadmap and some of the things we’re hearing customers on these new products.
Operator: Your next question comes from the line of Brian Peterson with Raymond James.
Johnathan McCary : This is Johnathan McCary on for Brian. So I think just kind of related to that last question. Thinking about the Inflation Reduction Act, it’s obviously seeking legislation. I’m just trying to — maybe you can help me understand, are you expecting like any SKUs to come out of that regulation? Or is that simply additional functionality, just kind of integrating the existing platform and when customers come to you kind of come in the door like you just suggested there? And then how soon do you think that could be a meaningful contributor to revenue?
Jason Blessing : Well, for now, so at least as we understand the Inflation Reduction Act now and how we think it’s going implemented. It’s going to be major enhancements to core Model N functionality. And in the latest release that shipped, we made some pretty major changes to the product data model to contemplate some of the new data fields, that we have to track. The thing that’s still being worked out is exactly how the negotiations between the government and the manufacturer is going to work and how some of the calculations going to work. And it’s our belief right now that that’s probably just further enhancements to our core calculation engine and some of the existing functionality. What we have certainly seen, in terms of a catalyst with the Inflation Reduction Act is, it has been driving our largest customers to get to the cloud and get current because that’s — as you see with this latest release, where we’re implementing the new functionality to address this compliance issue.
The first version of the Inflation Reduction Act is really going to be targeted as therapies that are top 10 sellers maybe 20 sellers in the U.S. And so those, by definition, tend to be some of the larger pharma companies, but I think the industry views this as just a start, and it’s eventually going to be much more wide sweeping — wide ranging, excuse me, which definitely drives overall demand for us.
Operator: Your next question comes from the line of Patrick Walravens with JMP Securities.
Patrick Walravens : Great — and it’s really great that you’re getting to the end of this transition, Jason, — so overall, you described the quarter as being strong. I’m just trying to — I mean I realize there’s a ton of things going on. But from a sales attainment point of view, this quarter, was it strong? Or the sales force production meet your expectations?
Jason Blessing : It did. We had a good quarter overall, especially relative to the full year, and we saw a nice contribution from a combination of new logos, cross-sell, upsell, as well as closing some of these SaaS transitions to end out the year. So yes, I was happy with how the team ended the year.
Patrick Walravens : Okay. Great. Great. And then, John, maybe for you because I’m just getting this question. And so yes, if the sales team can was good, why is the — why were building an RPO below, what people were expecting? What’s the dynamic there?
John Ederer : So I guess it’s hard for me to speak to some of the expectations that might have been out there and what we’re models. But if you look at our total RPO…
Patrick Walravens : I mean just the consensus.
John Ederer : Yes. So if you look at those, they did move up sequentially, and that would reflect some of the sales activity that Jason just described. When you look at it on a year-over-year basis, you are facing some more difficult comparisons due to some of the SaaS transition activity that occurred at the end of last year.
Patrick Walravens : Okay. And then you mentioned in your script, $2 million this quarter and then $1 million next quarter of expenses related to the corporate development initiative? I mean it’s a lot of money. So what can you tell us about this?
John Ederer : Well, unfortunately, there’s not a whole lot more that we’re willing to disclose on that, but we did want to call it out just in terms of the variance to Q4 guidance, as well as, providing some context around where the Q1 guidance stands for adjusted EBITDA in particular. So unfortunately, there’s not a whole lot more that we can talk about on that one.
