Samad Samana : Great. And then maybe if I just think about — we’ve almost fully lapped the new office expansions by a year. I know it usually takes a little bit over a year for them to become fully productive, but just how are those progressing? And how should we think about — are there any new planned offices that you’re assuming in the 2023 guidance that you just gave?
Chad Richison: We always guide to what we can see. I mean, first, I’ll answer those office questions. We did open up 5 offices over the course of about 3 months. One of those, I believe, was in December of 2021. The others were in the first quarter of 2022. All of those continue to progress. They wouldn’t be at full staffing yet, but they would achieve that throughout this year as well as with the full backline pipeline. And then next year, in the year of 2024, they would all be on the same quota as our mature offices are. As far as what we anticipate to do this year from office openings, as we all know, that you followed us for a while, office openings that we would anticipate to expand into this year would have very little impact on this year but would have more of an impact on both 2024 as well as 2025.
Operator: The next question comes from Mark Marcon of Baird.
Mark Marcon: One question. Craig, you mentioned you’ve got $2.1 billion held for cash, held for clients in the fourth quarter. What sort of effective yield are you getting on that? And what is the expectation with regards to the float balance growing over the course of the coming year? And how we should think about an effective yield on that?
Craig Boelte : Yes. So Mark, on the balance, if you look at it this quarter, it grew about — it’s grown at different rates throughout 2022. So it’s typically going to grow at a rate lower than what our expected revenue growth rate is going to be. Part of that is as we continue to move upmarket, that those funds are held for a less period of time. We have to make those payments much quicker. So that move up market, we’d keep that from growing at the same rate as our growth rate. In terms of the yield, we haven’t really given the exact yield but what we do say is that as the rates move up for every 25 basis points, we would expect to get about $5 million. But it layers in over time. And as we’re continuing to look for longer-term investments on our portfolio, some of those are at a little lower rate.
And we’ve actually started to layer in some of those. You can see that from some of our earlier filings. So we’re not going to get — and also the banks are a little slower to give you those 25 basis points. So it takes a couple of quarters to get those layered in. So it would be something lower than the Fed funds rate.
Mark Marcon: Okay. Would the rule of thumb, 70% to 80% of Fed funds with a delay be kind of a good rule of thumb to think of?
Chad Richison: I mean — well, I think you’re close.
Craig Boelte : I mean I would say that that’s kind of in the range, Mark.
Chad Richison: We’re sub-4 today.
Craig Boelte : Yes, we’re sub-4.
Operator: The next question comes from Brian Schwartz of Oppenheimer.
