But it’s at least bringing, I think, more awareness to AI and the capabilities that it can bring to offload a lot of the manual labor involved in creating AI models. SensiML operates at the other end of the spectrum, which is at the edge. I will say from a competitive point of view, probably some interesting things are the M&A that’s going on in that market in the last few years. I mean if you look back, I think, two years, three of SensiML’s competitors have been acquired now by large companies that are looking to integrate AI to edge specifically, not ChatGPT type stuff, but AI at the edge, AutoML capability and looking to bundle that with like microcontrollers and other semiconductor technology. So I think that, more than anything, really underscores that there’s a lot of strategic interest in the technology and using that to get either gross margin uplift or capture more ASP from the customers, more share of the bomb, if you will, for AI-enabled products, especially again when you look at AI at the Edge specifically.
Suji Desilva: Thanks Brian. Thanks Elias.
Brian Faith: Yes.
Operator: Thank you. Our next question is from Martin Yang with Oppenheimer. Please proceed with your question.
Martin Yang: Good afternoon. Thank you for taking the question. Brian, can you maybe address some of the outlook between the guided mix of new and mature products versus the 4Q results? What was the big change that happened since original guidance?
Brian Faith: You talking about Q4 of 2022 or Q1 of 2023, Martin?
Martin Yang: Q4 2022.
Brian Faith: Okay. So I think the delta to the midpoint was a couple of hundred thousand dollars. And as I was saying in the prepared remarks, there’s really a schedule shift from some of the test chip revenue associated with that customer tape-out that we had originally planned as part of the Q4 revenue number that moved out. And in fact, it’s moved out essentially 1.5 quarters now because we’re talking about it being in Q2 versus Q1 of this year. And the overriding reason for that is just the amount of time it took to get through wafer fab was much longer than what we had forecasted. And singularly, that’s the difference between midpoint of guidance for Q4 and the number that we came in with, which is 4.1.
Martin Yang: And also, it seems that the mature revenue performed slightly better than expected. Is there anything worth pointing out?
Brian Faith: No, I don’t think so. Nothing, I think, really sticks out other than there is just slightly more demand than what we expected in Q4. Now I think like a lot of companies, in Q1, we are expecting €“ and we said this on the call in the prepared remarks that our Q1 mature product revenue will be down from Q4, like many companies in this space right now.
Martin Yang: Got it. Thank you. And last question for me. Can you talk about the pace of your sales funnel expansion? Do you feel you will be expanding that funnel at a more predictable pace or that’s more of a €“ you got to do a case-by-case study on how you win HDL?
Brian Faith: Well, I’d say, in general, with the expansion of our sales force, we are expecting the growth rate to accelerate from what it has been in the last couple of quarters. But I would say that when we get these larger government contracts, that obviously skews that growth number, right? Because if we close one of those, even if we’re not assuming the entirety of the number in the funnel, I mean we’re talking about increasing by tens of millions of dollars in one pop. So to some extent, that skews the growth number. But I do think that, on average, we’re going to have higher growth per quarter this year in the funnel than we did last year. And I think that’s for two reasons. One, we are focusing on much larger opportunities, and our €“ the number of customers coming to us now across market segments is expanding.
