We’re seeing more engagement around that in 2024. But as I keep saying, Vincent, I want to see the rubber hit the road and see the bookings come through. But the tone from our clients definitely is becoming more optimistic here in the late part of 2023, early part of 2024.
Vincent Colicchio: And question on the acquisition side, should we expect you to be active? I think you usually do three a year. Will we be back to that this year and will there be a theme to it? Will you be doing some Eastern European deals, for example?
Tom Hogan: We are active. We’re always looking for great acquisition to really benefit our portfolio and then geographic. I will say that Europe is of interest, and we are in conversations and looking at where we can add to our portfolio in Europe. All that being said, yes, we are very acquisitive and will continue to be so in 2024. Hopefully, we’ll have something done in Q2, but a long way to go, but nothing too imminent right now, but we are targeting. We’d like to have something done in Q2, but we’ll see what happens in conversations, but nothing else really to report at this point.
Vincent Colicchio: Thanks, Tom.
Operator: Please standby for the next question. The next question comes from Jack Vander Aarde with Maxim Group. Your line is now open.
Jack Vander Aarde: Okay. Great. Good morning, Tom and Paul. Thanks for taking my questions. Tom, so I believe it’s been covered a little bit, but just so I can be clear. Last quarter there some commentary regarding some delayed project starts and maybe customer buying decisions, but there was no major project halts or cancellations. Do you feel like visibility and just things in general have improved since last quarter? Thanks.
Tom Hogan: Hey, good morning. I’m not sure about since last quarter, quite honestly. I think it’s the same as last quarter. I think we have some good insight. To your point, we haven’t seen major cancellations. We’re not in conversations. There’s always lumpiness of this business a little bit, but I don’t see any major cancellations on the horizon, knock on wood. The conversation though that we’ve always had is really more around delays, and then we continue to have insight into the pipeline. I keep going back to what we saw in Q4 2023, I’d like to see a change in this first half is moving forward with these buying decisions. So the inside I’d say is the same, remains the same and the difference being is a bit more of a positive tone, but we’ll see where that turns here towards the first half of 2023 in the bookings.
Jack Vander Aarde: Okay. Great. And then maybe just a follow-up, maybe for either Paul or Tom. Yeah, I’m just wondering — I think a few quarters ago you guys were talking about organic growth and longer-term organic growth targets. Just given your comments on the bookings strength, do you see the potential to support a double-digit organic growth rebound towards the back half of the year or just heading into 2025? Just what’s your confidence or overall plan around organic growth? Thanks.
Tom Hogan: So long-term thesis of the business does not change. We have provided and produced with our peers. When you think of a like-for-like business of our non-U.S, based business of teens to 20% type growth, 30% growth a number of years ago. As we continue to grow, we continue to see that we will see that high teens to low 20s for non-U.S. based and then single digit in the U.S. Will we get there in 2024? I think that may be aggressive. I think from all the conversations we’re having, the pipeline, what we’re seeing at the macro level, we are favorable to a 2025 returning to those volumes where we be in the double-digit organic growth perspective. There’s a lot of variables in there as far as the macro, but that is the thesis of the business.
And I’d like to think we are at that run rate towards the second half of the year, but it’s not going to be implied obviously of an organic number for 2024. But if we can get some of these bookings and we start seeing the discretionary spend come back 2025, I think is a good environment for Perficient.
Paul Martin: Jack, I think, from our view, digital transformation is still in the relatively early innings. And one of the things we’ve seen is there’s been all this uncertainty is at some level it’s discretionary as to timing, but there’s big ROI in the projects that we do. So eventually they get funded. And when the spigot gets — turn back on in a meaningful way, I think we feel very well about our position.
Jack Vander Aarde: Okay. Excellent. I appreciate the color, guys. Thank you.
Operator: One moment for the next question. The next question comes from Puneet Jain with JPMorgan. Your line’s open.
Puneet Jain: Hey. Thanks for taking my question. So I want to ask — I also want to ask about visibility to this year’s revenue numbers. How much of, like the full year guidance, maybe at the midpoint or at the low-point is already under contract? And also how large is that — the large healthcare client? I think Paul you mentioned 100 people. So is it fair to assume that the contract should be about $10 million to $15 million in annual revenue when fully ramped?
Tom Hogan: So the insight, Puneet, keeping in mind that our project length is typically less than six months. So I think we’ve insight from a pipeline perspective. However, from a backlog perspective, that will be abnormal for us to have the majority of the range already booked. It’s just not the business we run. I would say we have line of sight to where we can and will grow the organization, but obviously have a lot of work to do to capitalize on the insights we know about business and the pipeline that we have. In regards to the second part?
Paul Martin: Yeah. So in regards to the healthcare account, that’s going to ramp into the notionally a couple of 100 people. So obviously it’s an nice size project. It’s been ramping starting probably in October or November and should be fully ramped for the pieces that we have under contract by the end of the quarter, and there’s also additional opportunities out there with that customer.
