Brian Schwartz: Congratulations on a real nice job with the business in 4Q. I just wanted to ask you a question about either the business activity or the pipeline momentum by customer size. Are you seeing any differences in terms of the demand or the behavior of the larger organizations that are flowing through the pipeline versus, say, the smaller companies?
Chad Richison: Well, we’ve definitely continued to creep up as we have done even since IPO as we’ve continued to increase our target market. In fact, last year, revenue was up 60% with clients that had 2,000 employees or more. So we are definitely seeing a demand continuing to be pulled higher, especially as businesses are looking to deploy Beti so that their employees can actually do their own favorable.
Brian Schwartz: And then one follow-up just for Craig real quickly. Did you buy back any stock in the quarter? And can you just remind me again how much authorization you’ve left for buybacks?
Craig Boelte : Yes. So I don’t think — we didn’t buy back any this quarter. For the full year, we bought back about $100 million worth. And I think we have a $1.1 billion left on our buyback.
Operator: The next question comes from Joshua Reilly of Needham.
Joshua Reilly: If you look at the growth expectations for 2023 here, how do you think about the mix of growth from new customers versus existing? As we know existing customers, while smaller historically in net new bookings, their growth has increased in the last couple of years. And we’re seeing some different trends with different software vendors.
Chad Richison: Yes. We’re — ours is going to primarily come from new logo ads when you just look at the size of revenue that we need to grow by in order to continue to hit our objectives. And so first price is going to be new logo adds. We don’t really have a lot to call out on pace per control growth from that perspective. But new logo ads is going to be primary for us. We’ve always had a healthy upsell to current clients. It’s just been at a much smaller level than what new logo ads are. And it’s been consistent, our upsells to current clients as a percentage has been consistent each year with the exception of the year we had ACA.
Joshua Reilly: Got it. That’s helpful. And then as we look to Q1 here, how should we think about the impact from W2 revenue? Remember, last year, that was impacted on a year-over-year basis because of the turnover in 2020 due to COVID. Are the trends going to normalize here in this March quarter given what happened in ’22 with hiring or anything to highlight there?
Chad Richison: Yes. I feel like they are more normal. I think it’s important to understand that the — our year-end services as far as what we provide to a client. That hasn’t changed a lot in the last 15 years as far as you added 10 99s at one point, but you have W2s, W3s 10 99. Meanwhile, the growth of our other revenue as we’ve added all these other products has been somewhat substantial. And so it’s just the percentage or amount that our year-end services has on the overall client base is much lower now than what it was in the past just because it’s not growing at the same rate. I would say, yes. I mean I would say, yes, from a normalization. I think you saw normal hiring and business patterns more so last year than what you had in year’s past — in a couple of years past. So from a normalization of year in forms filing, yes, I would say that we were there.
