David Polansky: So when you say consistent, do you mean sort of maybe in the mid-20s range, is that right?
Dan MacLachlan: Correct.
David Polansky: So if you are
Derek Dubner: Correct.
David Polansky: I just want to make sure I understand this, but if you are not making significant hires and you are largely a fixed cost business and presumably you would be growing revenue that should flow through at a pretty high incremental margin, where are you spending, if not in head count, where, because my thought is that if you are not spending, we should see some pretty good operating leverage, but it sounds like we will still be sort of in the mid-20s range. So then can you talk about that a little bit?
Dan MacLachlan: Yeah. So, look, when we look at it, we look at it from a conservative standpoint. As I said, we are kind of leaving out of 2023 the expectation is you will start to see that nice leverage, right? So when you look at last year 2022 versus this year. Obviously, we added a good portion of the 46 kind of in moving out of second quarter into third quarter and fourth quarter, probably, add half in the beginning of the year, half in the second half of the year, so the run rate based on that is really leaving the year. So, yeah, I think the expectation is, from a conservative standpoint, we will look to be kind of in the mid-20s. But, ultimately, as we grow revenue, I think we have a lot of upside to that. I mean, last year, we guided around 20% to 25%, obviously, we came on the high side of that, closer to 25%. I would have the expectation that we have more upside in that margin than downside based on our revenue growth.
David Polansky: Okay. And then on topline, I know we have talked about this a bunch of times, but is your intent to still grow this business organically and are you seeing anything on the M&A front that gets you a little bit excited, because I am just trying to think of your bridge of some of these long-term targets that you laid out and I’d just like to get some commentary around that, that would be great?
Derek Dubner: Thanks, David. Yeah. This is Derek. We always come into the office every day with the goal of building this business organically. That said, we do have nice relationships, banking relationships that provide us with opportunities to look at. We have said before that we have interest in a couple of areas that might be where we can acquire some unique data assets, perhaps, some unique technology in a buy or build scenario, thought process, if you will, and/or some front-facing or end user facing solution that may be already well branded in market and would be an interesting acquisition for us. Given that, we are very mindful of dilution, have always been, and the last couple of years have not been interesting in the way of the valuations and the expectations from sellers of some of the assets we have seen.
As you know, throughout 2022 and here in 2023, those valuations have come down, public market probably faster than private market, but private market is certainly getting there where they need to access capital. So we keep our eyes open. We do review opportunities from time to time. But again we will look at it. It’s got to be some very key assets and it needs to be at the right price, at the right valuation and absent that we will continue to build this organically. We feel like we have — as we move from smaller- and medium-sized customers and continue this multiyear move into larger customers, enterprise customers, if you will, in both the private and public sector, we believe just we have got a real strong runway where the latter half of the short-, medium- and long-term present opportunities to expand revenue at an even faster clip, obviously, market and economy cooperating, but we are very excited about the opportunities in front of us and meeting the targets that we have talked about.
