Operator: Thank you. The next question will be from the line of Siti Panigrahi with Mizuho. Your line is now open.
Siti Panigrahi: Thank you. thanks for taking my question. I just want to follow-up, Chad. When you are now going to Canada or even other countries, are you targeting customer in those countries, or are you focusing on US customer who has employed there. The reason I’m asking, are you trying to build now sales team in Canada and other countries or it’s still focused here in the U.S?
Chad Richison: I mean, the answer is yes. We will eventually have sales teams in other areas that we’re expanding to, but it’s first things first and that we’re not focused on opening up sales team in Canada right now. We do have a service centre there now with people available to service. They’ve been trained and have been using our product themselves. But really it’s an opportunity for us to continue to go further up market. We get a lot of call ins and interest in regards and leads in regards to a large businesses. And we sometimes fall by the wayside in regards to how they manage their global group. Our global HCM product helped a lot with that, because so much of the global payroll is already disparate and siloed all over the place.
And so the global HCM helps some of that. But now as we’re building out Beti in each country, it just wouldn’t make sense for a company not to use us for all of that. And so originally, our focus is US based companies. There’s plenty of them as we go up market, but eventually, absolutely, we’ll have sales, we’ll have sales teams other countries. That’s not something more eyeballing right now, though.
Siti Panigrahi: Okay. Thanks for that color. And one more follow-up on the, Beti, when you say the 40% of customer yet to move, I understand they’re all your prior customer, not the new customer, they by default get Beti. So, definitely, there’s a clear value proposition of Beti and it been there two years. So, what’s the pushback you’re hearing from those customer? What’s stopping them moving to Beti?
Chad Richison: Yeah. I mean, I think the biggest pushback is the fact that it is — it can be a significant reduction in force as well. I think that there’s change management on the client side, some changes they have to make on their side of how they feed the data. So that’s primarily it. I mean, I can tell you a lot of what we get, it’s not broke. you know, we’re already using Paycom. Our payroll’s not wrong. you know, we’ve got a 100% DDS. Why do we have to go through? We’re working on other things. I just don’t know that it becomes the priority. And so the Forrester study will help and as we continue to go out there and show the value that it can create with appropriate usage. And then also we kind of got a little bit of the tail wag and the dog strategy with the employee base, especially hourly employees that’s inherent, they’ll do their own.
So that’s helping us out a little bit in there. But at the end of the day, it’s a sales call that we have to provide value for we’re not going to force a client, we’re going to influence them in making a decision that can drive significant ROI in regards to payroll and HCM Software.
Operator: Thank you. The next question will be from the line of Bryan Bergin with TD Cowen. Your line is now open.
Bryan Bergin: Hi, guys. Good afternoon. Thank you. Wanted to ask a margin question first here. So can you talk about investments being made in in cost to revenues just considering the higher float revenue tailwinds has been a bit lighter than we’ve expected. Are there catch up investments being made here? Are you broadening out the international operation? Just give us a sense on what’s kind of weighed year-on-year and where you’re expecting adjusted gross margin to land this year.
