Glen Santangelo: Just two quick ones for me. I appreciate the 1Q provider add number that you gave us. And it’s obvious that you’re looking to add profitable growth. And so I’m kind of curious to get your take on where we are from a penetration perspective and how incrementally harder is it getting to add these profitable providers? And so just for those and trying to take a little bit of a longer term view, I just want to get a sense for where you think we’re at? And then maybe I’ll give you my follow-up right now. Maybe just following up on John’s question, it’s been an interesting 2 to 3 years at the company. You were very profitable, then you were very unprofitable, and now you’re back to sort of profitability. As you look over the next couple of few years, obviously, you made great gains on the efficiency side.
You see any major investments on the horizon or do you feel like the infrastructure is at a pretty good place to continue to be able to leverage and grow? And I’ll stop there.
Chaim Indig: Well, Glen, that was a lot of questions for my brain to process really quickly and I just want to write them down.
Glen Santangelo: I’m sorry.
Chaim Indig: It’s okay. Let me start and try to answer as many of these as I can. There’s like 7 questions. Balaji thinks it’s funny. So let’s start with I still think we are making a lot of investments, right? Like I and look, we have, we’re spending a lot on R&D. We’re spending a lot on our sales marketing organization. We’re doing is we’re spending less continuously as a percentage. But I would say, look, even looking back to when we went public, we spent significantly more today than we did then. It’s a dollar amount. And we’re able to put out phenomenal products that add a phenomenal amount of value to our clients, of all different kinds of clients, our life sciences clients, on our provider clients, and frankly, more and more, the consumer itself.
And so my view is, yes, we will keep making investments because ultimately we’re a growth company and we have a growth mindset. I think all we’re excited to do is just return back to profitability. It’s frankly a much more comfortable place for us. But we’re still making investments and to answer your first question, is it harder to win clients? I think it’s always hard to win clients in an environment that like healthcare. Like, where margins are tight and, expectations are high and there’s just a lot of noise. And frankly, I think the reason we’ve been successful at it is the team. And the team builds great product and sells great product and does a phenomenal job of implementing and supporting our clients. Our customers, I appreciate the value we bring them.
So I don’t take the job lightly, but I think we’ve been pretty good at it for going on almost 19 years.
Balaji Gandhi: Yes. And Glen, I was just going to add, I think it relates to John’s question too. I think we’ve tried to be pretty consistent about growth and profitability mattering, they both go together. And just some numbers to throw out at you, we actually have increased expenses, operating expenses by 13% if you look 2 years ago in the Q4 to today. So, to Chaim’s point, we’ve invested a lot, but what’s really important is that the revenue has grown 64% over that same period. So, that’s going to be important, continue to grow, but also getting operating leverage and being profitable in the future. So, hopefully that’s helpful.
Operator: Next question comes from Sean Dodge with RBC Capital Markets.
Thomas Kelliher: This is Thomas Kelliher on for Sean. Congrats on a nice quarter and thanks for taking the question. Just a quick modeling one here and kind of a follow-up on an earlier question. But how should we think about the EBITDA cadence kind of heading into fiscal ’25 and then over the course of the year? I know you mentioned a little seasonality on the payment side, but any other particular cost or efficiency actions creating some variability that we need to be thinking about? Or should we expect this to be pretty linear?
Balaji Gandhi: Definitely not linear for the one of the reasons I think you brought up, there’s seasonality on payments. I think the other thing to keep in mind is, and we’ve mentioned this in the past too, but we’ve seen a lot of operating leverage over the past 8 or 9 quarters, and it’s not going to be as much this year, just if you sort of look at the outlook we provided for revenue and EBITDA. So, it will improve throughout the year, but 1Q has lower margin associated with more payment revenue. And then, you just start sort of dropping incremental margin down as revenue grows. So, look, we can happy to talk to you about your model, but we’re not providing quarterly guidance. But feel free to follow-up.
Operator: It comes from the line of Jack Wallace with Guggenheim Securities.
Jack Wallace: Wanted to ask about the growth algorithm going forward, particularly as you target more profitable customers thinking about the growth in revenue per customer and how much of that should we be thinking about coming from legacy, but maybe underpenetrated products versus some of the newer products you’ve rolled out both in R&D as well as some of your tuck in M&A deals?
Balaji Gandhi: Maybe I can start and Chaim can talk about the acquisitions a little bit more. Look, one number, Jack, to look at is for the full year fiscal 2024, total revenue per client was up, ticked up a little bit, which was a sign of sort of things to come. I think what we can say is, it should be up more in fiscal ’25 over ’24 than it was in ’24 over ’23. And that’s a combination of everything. I mean, it’s the base, it’s new clients that we think can be profitable as well. And then, Chaim, in terms of the products or the new the acquisition thing you want to add?
