Scott Berg : Got it. Helpful. And then from a follow-up perspective, staying on the sales kind of route. Can you give some commentary on progress around back to the base selling, selling to your existing installed base? You mentioned your PEPM is up 75% over the last several years, gives you certainly a lot more to sell. But any changes with the way that existing customers or maybe what their appetites look like for buying additional modules?
Raul Villar : No. We — I mean, it’s been consistent. We’re continuing to suddenly improve modules sold. Obviously, talent has a significant attach rate workforce management, also significant attach rate. And so we feel good, both at point of sale that we’re delivering a bigger bundle but also our cross-selling team continues to really hit the ball out of the park. And so continuing to work with our clients to make sure they’re optimizing the latest technology that we offer. So, it’s been really successful and we still have a lot of opportunity in that channel.
Operator: Our next question comes from the line of Brad Reback with Stifel.
Brad Reback : Great. Thanks very much. Well, obviously, in fiscal ’23, you increased or we’ll say, entering fiscal 2040, your sales headcount was up about 22%. And you’re going to grow high teens this year all up, so there’s about a 5-point delta. How should we think about those converging on a go-forward basis? What needs to happen to get those two to me?
Raul Villar : Yes. It’s really about us continuing to grow the tenure in our sales organization. And as we continue to focus on driving that tenure, which is really growing the person months’ work, which has grown year-over-year and it’s moving in the right direction. That tender drives productivity. So as we anniversary these large, what we would call headcount classes, year-over-year, we’re going to see improved productivity. And so, it’s really about us driving them from year 1 to year 2 to year 3.
Operator: Our next question comes from the line of Brian Peterson with Raymond James.
Brian Peterson : So just one for me on the embedded channel. So I’d love to understand as you think about the 2% [indiscernible] platform already. Is that fairly concentrated within a couple of customers? Or is it maybe a little bit more diverse and then there’s kind of an opportunity to expand with some of those partners over time?
Adam Ante : Yes. Brian, yes, I mean it’s just with a couple of partners right now. It’s still really early with us in terms of the number of active partners that we have on our platform. And so yes, there’s only a few partners that are really generating that sort of growth for us. And of course, as we continue to sign new partners, we’re going to see a lot more expansion. There’s not really a concentration from an end customer perspective. They do look a lot like the customers that we have today, they’re strong middle market and enterprise customers. But the partners themselves are there’s still just a few.
Brian Peterson : And Adam, maybe a follow-up. So how do we think about the land and expand in that channel. So when you kind of get launched with one of those customers did it get fully implemented across the customer base? Or is that something that gradually folds in over time?
Raul Villar : Yes. Every agreement is unique. The ones that we have today were — had existing customer bases that they’re converting over. And then they sell on a go-forward basis to new and so we’ve been really pleased with the cross-selling ability of our partners to sell new on a go-forward basis outside of the existing base. And so that’s kind of exceeded our expectations.
Operator: Our next question comes from the line of Jared Levine with TD Cowen.
Zack Ajzenman : This is Zack Ajzenman on for Jared. First question on demand. Any change in the pace of prospective client decision-making relative to prior quarters? And further, any change in attach rates on new client sales? If so, what modules and functionality or what you think a change in attach rate?
Raul Villar : Yes. As far as deal cycle time frame, on the entire base, there’s no change. However, if you break it down by size, I mean there’s a subtle elongation in the enterprise space year-over-year, but we’re on a smaller sample size. So — but ultimately, our core overall base the same, no changes in the mid-market or SMB space. And as far as modules go, we continue to slightly tick up. So they’re not ticking down. They’re actually — we’re seeing slightly better attachment across the board.
Zack Ajzenman: Got it. And a follow-up on retention. How do the Januarys gross revenue retention compare year-on-year? And if it was consistent, where there any underlying changes based on employer size segment or based on controllable versus uncontrollable churn?
Adam Ante : Yes. I mean, we haven’t shared like month — specific month retention results, but gross retention has been consistent in January, of course, is a big month for us, both on the starts and losses. And I’d say that it’s been in line with our expectations broadly, especially is how we’re thinking about guidance for the full year as well. So no significant changes one way or the other on retention broadly.
Operator: Our next question comes from the line of Matt Pfau with William Blair.
