Mark Livingston: From a market and sales perspective, I would point back to the active pipeline that Pete referenced and that being in a positive position versus last year and the continued interest around covering and expanding fertility benefits, as well as services in our other products around pregnancy and menopause and postpartum. So we do continue to see that interest and see that interest from a pipeline perspective and closed deals perspective relative to last year.
Operator: Thank you. Your next question is coming from David Larson from BTIG. David, your line is live. Please go ahead.
David Larson: Hi, can you please give a little more detail on how we’re defining mix? So, for example, like, last year, like, just as an example, like, creating a healthy embryo and then freezing it, maybe that was 60% of volume. Then with the Supreme Court sort of decision in Alabama that declined maybe to 40% or 30%, and simply freezing eggs and/or perhaps sperm increased. And then I think what you’re saying now is the mix has returned to normal. So, like, freezing a healthy embryo would be back up to 60%. So people may have been worried about actually creating a healthy embryo and then freezing it. They – that resulted in a decline of that mix, and it’s now back up. So can you just confirm, like, am I thinking about this correctly? Any more detail on what you mean by mix would be very helpful. Thank you.
Pete Anevski: Yes. Your example is right, that the order of magnitude is not as extreme as you’re describing it, but your example is right relative to the number of people who utilize the benefit, so that the utilizers, if you will, which are – we count them as uniques for the whole quarter, and what they did and the percent of them that did one treatment versus another was different and pronounced enough that we called it out in the first half of Q1 and has returned as we had predicted when we reported our earnings. And as we sit here now, even for Q2 has returned back to normal. Your example is correct. The order of magnitude in terms of the shift wasn’t that dramatic, but it was dramatic enough that it impacted what you would expect for revenue in the quarter when you look at the utilizers.
Mark Livingston: But just to be clear, the mix issue that we called out on our last call in Q1, that predated the Alabama decision, and so it was already modifying by the time the Alabama decision had come out. So I wouldn’t conflate the utilization decline in March with the rate shift, which was predated that. Yes, the mix shift.
Pete Anevski: Okay. Has there been any changes in coverage that could be impacting that mix shift? So if that mix shift occurred before this Alabama Supreme Court activity, like, was it coverage decisions on the part of health plans, where maybe they would cover freezing eggs and sperm more so than a healthy embryo or anything like that? I mean, all the decisions related to coverage, again, that we talked about not only on our November third quarter call, but also reiterated those decisions are already made when the plan year starts on 1/1. If it was a – so the answer is no, but I’ll give you some more color. If it was a function of coverage, then it wouldn’t just have been a short-term mix shift that’s returned already because it would keep affecting us as we continue, and that’s not the case.
David Larson: Okay. And then just any thoughts on sort of other areas of growth in the business, like there’s menopause. What other services could you sort of add to your portfolio? Like, how about adoption services, postpartum counseling services, just any more color there would be very helpful. Thank you.
Pete Anevski: Right now, surrogacy and adoption programs are already part of our services. We are working on other products, and we’ll have announcements around them shortly. But there’s none that we’re in a position to talk about right now. But there’s other areas of women’s health where we believe that are over, that are underserved and overlooked, that we believe we can make a difference.
Operator: Thank you. Our last question today comes from Allen Lutz from Bank of America. Allen, your line is live. Please go ahead.
Allen Lutz: Good afternoon, and thanks for taking the questions. Pete, I have a question on the selling season. In the Q&A, you talked about a goal to meet or exceed 1.3 million lives. I know it’s early in the selling season, but is there anything different about the employer conversations this year? I know that managing GLP-1 spend is a big focus for employers. So how do we think about your confidence given some of the other things that are impacting the way that employers are thinking about where they’re focusing in 2024 and 2025? Thanks.
Michael Sturmer: Yes. Hey, this is Michael. So first off, you’re right around certainly, GLP-1 is one of the topics, each year there’s always a handful of topics that are top of mind for employers. Family building, benefits and women’s health continues to be one of those topics. And sort of, as we’ve referenced a couple of times, the sort of best indicator at this point during the year is, how – what’s the –how’s our active pipeline look? What’s the strength of that pipeline? And sort of what is the early or early decisions look like? And yes, as we’ve pointed out in the prepared remarks, the – again, the pipeline is healthy relative to last year. And sort of the early decisions are also healthy relative to last year.
Allen Lutz: Great. Thank you.
Operator: Thank you. This does conclude today’s question-and-answer session. I would now like to turn the floor back to James Hart for closing remarks.
James Hart: Well, thank you, everybody, for joining us this afternoon. Please feel free to reach out if you have any additional questions. I’m available as needed. And of course, please look for further details on our Analyst Day Meeting that will hold in August. Details will be forthcoming sometime later this summer.
Operator: Thank you. This does conclude today’s conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.
