And then last, SG&A will be up quarter-over-quarter. We have some timing things as we started out the year. Some of those are accounting-ish, dealing with incentive comp in terms of payroll tax accruals, vacation accruals, those type of things, as well as increased investment in the network as it grows. Those things create a headwind quarter-over-quarter in SG&A.
Greg Palm: Okay, that is helpful, color. And Rob, I think I heard you mention in the prepare that you do expect revenue growth on a year-over-year basis. I’m not sure if I missed it, but I didn’t hear any commentary on whether you think that profitability, whether it’s EPS or EBITDA, will also grow on a year-over-year basis. So do you care to comment on that?
Rob Bodor: Sure, yes, thank you. So yes, we’re coming off of a strong year, right, in which we grew despite challenging economic conditions with contraction in the manufacturing sector. We were able to take share last year. I’m very pleased with that. And we expect to do that again in 2024. I’ll let Dan talk, so on the revenue side, I’ll let Dan respond regarding EPS.
Dan Schumacher: When I talked about on the call in terms of how 2023 played out, we had improved the growth margin, both in the factory and in the network. From a factory perspective, we’re deploying more and more automation into our factory. We have more robotics that are going on within our factory that allow us to vary our labor as volume comes through. On the network side, we also improved our margin in 2023, and that’s through improvements in our AI-enabled pricing algorithms that we have within the network. We expect to do that in a similar basis, Greg, next year. Right, so if there’s more automation we can bring into the factory, we have more productivity projects in the factory to make them more efficient. And we also expect on the network side that we’re going to continue to work on those AI algorithms to continue to maximize the margin we have in this environment.
Now, that being said, if you noticed last year, our overall margin was flat. So we do expect the network to grow more than what the factory is in 2024. And depending on how that plays out, will kind of tell us if our margins are going to stay flat or not. So we’re driving to offer the solution to the customer that they want in this period of time. And we feel that is the business model that is the best way for us to grow. But that may have some impact on margin as we go through 2024.
Greg Palm: Okay, understood. And then lastly, as it relates to kind of this broader strategic initiative, what kind of data or metrics are you tracking that gives you some sort of success, a sense for the success of this combined offering and the strategy associated with that? I mean, like, what’s more important? Is it growing new customers? Is it growing wallet share with existing accounts? How do you view that?
Rob Bodor: Yes, great question. So of course, we want to grow both our new customers and our existing customers. And we’ve got initiatives in place and our salespeople are focused and our marketing teams on really on driving both of those. But what I would say from an existing customer standpoint is, we’ve got the largest customer base in our industry. Last year, we served 53,000 customers from individual entrepreneurs to the Fortune 500, right? Within the Fortune 500, we serve 85% of the companies in our target industries. And so we’ve got a great customer base of innovative customers. I think there’s a tremendous opportunity for us to grow and expand within our existing customer base. Right? Our customers are used to relying on us for their prototyping.
They’ve been telling us for years that they’d love to use us more and we just haven’t had offers in the past. We’ve now put together between investments in the factory and the network offerings that serve them for production that allow them to go from prototype through production through end of life that allows them to use us for quantity one or quantity a million, right? We haven’t had that capability in the past. And I think there’s just tremendous opportunity for us to grow with our existing customers. And so what we’re measuring to make sure that we’re on top of that, I mean, we talked about the number of our customers, we talked about average revenue per customer. We also talked about tracking, the number of customers that are using the combined offerings, right?
Buying from both the factory and the network. And there’s a number of other things kind of internally that we look at to make sure that we’re making this progress. But I’m quite pleased with the progress that we showed last year along these lines.
Greg Palm: At some point, some of those KPIs associated with, number of customers, using, either or both of the services, is that something that you might start disclosing?
Rob Bodor: Yes, great. The answer is yes. I think, in this industry, in this space, right, being able to, serve a customer more, get more of their wallet share of our existing customers is going to generate a more profitable business long-term, rather than having to continue to chase the new customer every year. Of course, we’re still going to grow new customers, we’re doing that. But for sure, as in the future, we will share some of these metrics.
Greg Palm: Okay. Best of luck. Thanks.
Rob Bodor: Thanks. Thank you.
Operator: Thank you. We’ve reached the end of our question-and-answer session. This will also conclude today’s conference. You may disconnect your lines at this time. We thank you for your participation and have a wonderful day.
