Chaim Indig: Look, I think the adoption of the different products we have has been going very well. I think our CSM team has been doing a great job. And a lot of that’s the testament to these products adding a ton of value to our clients, very, very quickly. And I think our go-to-market, which is fairly differentiated and being able to get them into the hands of clients very easily and a lot of that is based on the work of our technology organization just making the products very easy to turn on. So thanking everyone, but it’s so far, we see a lot of our products for all different clients being adopted. Our newer acquisitions, but also some of those are and some of the products that we’ve been working on for years and we had in our bag for many, many years. So I think all-in-all, the team is just doing a very good job around adoption. I’m pretty proud of that.
Jack Wallace: And then as we’re thinking about, sources of gross margin expansion, how should we think about mix shift versus some of those products getting to scale? And then lastly, we can take a third in there, wondering if we can get an SDR count. Thank you.
Balaji Gandhi: Yes. So, first of all, on the gross margins, I think we’ve talked about this. Not a ton of opportunity there relative to the other three lines. We still see over time, there may be a little bit of opportunity, but if you were sort of modeling 2025, we feel really good about where those gross margins have gotten to and a lot of the leverage we’ve gotten. And I would focus more on the other three line items as a source of operating leverage for this year. Jack, I will come back with the SDR account for you. Let me just grab that number for you. So we can go to the next question.
Operator: And our next question comes from the line of Joe Vruwink with Baird.
Joe Vruwink: One on network solutions, just when you look at maybe standing of later stage clinical activity at some of the customers that you help in that business or even just the propensity to spend here at year end with marketing decisions. Are you starting to get maybe the sense that the backdrop for new campaigns and just the broader macro that business might face into fiscal 2025 and beyond, Do you think that might actually be a better environment because it’s obviously been pretty challenging here over the last 18 months or so?
Chaim Indig: I don’t think — that’s a fair question. I think it’s too early to tell how the year will play out, but I think the team is doing a great job. I feel really good about sort of the execution and the way the pipeline looks. But generally speaking, I think there’s a lot of months in a year. And I guess having done this for so many years now, I’d say whenever I thought it’s going to get easier, I’m usually wrong. And whenever I think it’s going to get harder, often wrong on that, too. So I would say, like, what we — we hire great people. We provide great returns on our network to our clients. And we try to make sure that the right patients see the right messages all the time that drive a phenomenal amount of value for those patients. And to keep doing that, I think we have the opportunity to keep growing our Network Solutions revenue for years to come.
Joe Vruwink: Okay. That’s great. And then I wanted to dig in a bit more too just what it means to prioritize customer prospects that drive profitable growth. I guess, in practice, that kind of sounds to me like you’re expecting your gross retention to move higher over time? Is that the right way to think of it? So as the average tenure in the installed base is maturing and moving higher, that obviously bears a favorable revenue mix implication. It definitely factors into things like customer acquisition costs, is that kind of what you see happening for Phreesia over the next few years at this point?
Balaji Gandhi: Yes, sure. So Joe, absolutely retention is something we are very religious about. So absolutely focusing on profitable growth and profitable customers, we expect to have an impact on retention. Number two, though, is payback. So I think that’s really the thing, you underwrite a certain amount of time that you think you can get revenue and how much revenue you can get. And so that’s the other thing that’s sort of changed. But those 2 things influence revenue growth and profitability growth. Is that helpful?
Joe Vruwink: Yes. No, that’s great. I’ll leave it there.
Balaji Gandhi: Great. And the SDR count for January 31 was 107. We can go to the next question.
Operator: And the next question comes from Jailendra Singh from Truist Securities.
Jailendra Singh: A few clarifications, if I can. With respect to the quarterly provider add of at least 100 in Q1, is that a good quarterly run rate to use as we model this to the year? Or is — specific to Q1?
Balaji Gandhi: Yes. I mean, Jailendra, I know you’re getting more familiar with us. We have in historical periods, given that next quarter number. We do have a decent amount of visibility, and we’ll keep sharing that with you as the year goes out. So we don’t want to give you a specific number. But I think it’s a fair like sort of watermark to think about. Just know that we’ve got revenue guidance. So whatever you sort of model in for client growth, it’s going to have a different revenue per client.
