Scott Schoenhaus: Hey, Chaim and Balaji. Congrats, Balaji, on the new role, well deserved. So I wanted to touch upon the strong, another 150 adds of new clients in this upcoming quarter. I think it speaks volumes of the quick ROI offered to your provider clients. But I was wondering if you could give us the average conversion timeframe from a promotional client to a paying client for your subscription services. And just as a reminder, you’re including client count for providers that are using payment processing but are still on the pretrial promotional software service, correct?
Balaji Gandhi: Correct. That is correct. You have to pay us to be counted in that health care services client count. Yes, Scott, we’re not sharing the conversion rate there. But we’ve shared retention rates on client retention on an aggregate basis for 4 years from 2019 through ’22. And we can tell you, it hasn’t really changed much from the 90%-ish client retention rate, a big chunk of our go-to-market over that last few years has been the promo.
Scott Schoenhaus: Yes. And I just wanted to follow up on that last call with the sales and SCR investments commentary. I think last quarter, you mentioned you’re going to keep sales and marketing expenses relatively flattish, which we actually saw this quarter. Should we continue to expect that this will continue to drive most of the operating leverage in fiscal ’24?
Balaji Gandhi: Well, I don’t think this has changed. If we sort of stack rank, G&A is still at the top of the list but sales and marketing being second, getting some gross margin improvement, third, and R&D going up as an investment area and maybe holding about flat on a percentage of revenue. That’s sort of how you think.
Scott Schoenhaus: Perfect. Thank you.
Operator: From JMP Securities, we’ll hear next from Joe Goodwin.
Joe Goodwin: Great. Thank you so much for taking my questions and congrats, Balaji, on the CFO role. I guess you have a number of new vectors of growth coming into the model, like payer and the referral management, which has continued to mature. I guess can you talk about how these newer items are influencing your guidance methodology, or maybe, Balaji, how guidance methodology may change now that you’re in the CFO seat?
Balaji Gandhi: I don’t think anything will change. I think what we’re trying to be intentional about is, you see the total opportunity in terms of subscription dollars where you can see the sort of areas we focus on, patient access being some of the new stuff, I think, that you mentioned. But also some newer things in registration and revenue cycle and different quarters are going to have different monetization of that. We have a lot of the promos that we’ve talked about. So I don’t think you’re going to see anything different. And our intent isn’t to really like mask anything. It’s a business that has different ways of driving growth over time and trying to keep it simple for everyone.
Joe Goodwin: Got it. Okay. Thank you. And I know you don’t disclose the net retention rate. But I guess maybe qualitatively, if we think about what that was in FY ’23, is it improving from when we still had visibility into those metrics? Any commentary there?
Balaji Gandhi: Well, again, this is one of those things where point in time matters. And we look at those metrics and they move around quarter-to-quarter. And I think two examples I can give you of that are, if we’ve got a quarter where we have got year-over-year we’ve got expansion in a client, then it’s going to speak favorably to that. If we had a quarter where we added a lot of net new and smaller clients, it’s not going to look as good. So I think that’s probably just not a place we want to go in terms of your question specifically. But again, client retention and gross revenue retention are something we’ve disclosed.
Joe Goodwin: Got it. Okay. Thank you. Congrats again.
