Brad Hewitt: So you talked about the strength that pipeline in the quarter. I saw you announced a new CFO for that business with a focus on kind of driving the long-term growth strategy. Just wondering if you could update us on kind of the normalized growth profile of that business and what you see as kind of the biggest opportunities to perhaps accelerate growth in that business going forward?
Neil Hunn: Yes, I’ll take the first part. I’ll let Jason talk about the growth outlook. So — it’s not — I mean, we have a new president there, Pat McDonald. He just hired his new CFO, as you referenced, really like the leadership mindset, the competitive orientation, the learning orientation to building capability to be able to take long term in that short term that the new leader brings to pipeline. His predecessor he’s been a long-term Roper leader did a great job for a couple of years setting that business up. Retention is super strong, love sort of the market this company is really poised for market share gains. It’s good. It’s market focus, the competitive environment. One is tilting our direction for sure. The business has network effects. So I really like the momentum and what we’re poised to do in that business. And then, Jason, why don’t you take the growth question.
Jason Conley: Yes. I mean I think it’s playing out as we thought it would when we acquired it back in 2018, 2019 area, it’s in the high single-digit plus range and maybe a little a little higher down the road. But that’s sort of where it’s tracking. And just Adam Boon was added to the team a month ago, and we’re excited about him joining along with Pat. So see how we’re excited about the process for our pipeline.
Brad Hewitt: Okay. Great. And then it looks like growth in network in Q1 was maybe a few points better than expected. Your guidance for the rest of the year kind of implies revenue flattish sequentially on an absolute basis. I would assume most of the businesses in that segment would see kind of modest sequential growth throughout the year. So just kind of trying to understand if there are any potential offsets that maybe if that’s DAT. Just any thoughts on kind of sequentials relative to Q1 levels in network.
Jason Conley: Yes, sure. So we talked a little bit about MHA had a really strong quarter, and we think they’re still — they’re going to continue to grow this year. But Q1 was especially strong as they had a contract renegotiations. So we got a little bit of a bump in organic growth in the first quarter. And then ET and Link, they’ll continue to be down this year. And so maybe a touch lower than Q1. So that’s what’s driving the sort of low single digits throughout the rest of the year.
Brad Hewitt: Great. Thanks guys.
Operator: Your next question comes from Patrick Baumann with JPMorgan. Your line is now open.
Patrick Baumann: All right. Good morning. Thanks for taking my questions. Excuse me. A lot of ground been covered. Just a couple of cleanups here. Sticking with the Network Software segment, it’s seen really good margin expansion for a couple of quarters now. Could you remind us what’s driving that? And if this 56%, 57% is sustainable and could potentially move up further in coming quarters?
Jason Conley: Yes. So we touched on this last year, just DT getting ahead of where they saw the market was going and taking some of the fixed costs out of the business. And so we’re just realizing that through the first three quarters of this year. We think the margins in that — I don’t think it’s going to get — it’s going to expand further. We’re sort of in the 55%, 56% range. We expect that to continue throughout the year.
Patrick Baumann: Okay. Got it. And then lastly, just the second quarter. Any color you could give us on organic growth expectations? I know you gave it for 2Q to 4Q. Any difference between second quarter and that 2Q to 4Q guide? And then also on free cash flow, typically lumpy from quarter-to-quarter. So wondering if you could give any kind of color on that relative to the first quarter.
Jason Conley: Yes. I mean I think the organic growth expectations are the same in the second quarter as they are for the year. So no real big swings there. And then cash flow on the second quarter, it’s always the quarter that we make to federal tax payments. So it’s always the lowest of the year. So that’s really the only dynamic I would point out there. If you look over prior years, that’s always our low point, but still expect to grow, of course.
Patrick Baumann: Okay great, thanks. Best of luck.
Jason Conley: Thanks.
Operator: Your next question comes from Alexander Blanton with Clear Harbor Asset Management. Your line is now open.
Alexander Blanton: Hi, good morning.
Neil Hunn: Good morning.
Alexander Blanton: I noticed that you’re forecasting or guiding to organic growth of 6% for the year, correct? But you had 8% in the first quarter. So are you factoring in some economic weakness in the U.S. in that forecast?
Jason Conley: No. I mean, I think it all plays out, Alex, in our products segment and our Test segment over the first quarter, we just had a better compare and just the ramp that we had in Neptune last year, it’s sort of the comps sort of normalize out in the balance of the year. So it’s really just that. It’s no more complicated than that. And so that’s why Q1 was — and that’s — when we came into the year, that’s what we had indicated that Q1 was going to be the kind of the high mark in terms of organic unless things change in our assumptions.
