Chris Reimer: Honestly, most of my questions have been answered already, but I did want to ask if you could touch on relating to the 2024 strategy. You mentioned the select and expanded use of SIs. I was wondering if you could just elaborate a little more on that, how you expect it to play out and how it may be different from what you’ve already done with SIs?
Alex Zukerman: I will try to answer. Sapiens’ business model for many, many years that we are developing our product, doing the implementation and then doing the cloud services. What we and most of our competitors are doing, majority of product, some case they are doing part of the delivery and they’re sharing with SI. We made a decision, not today, a long, like in the last one or two, but right now we did some increase seriously of this decision. First, as I mentioned, we hire a dedicated very senior person that’s — she came from the competitors and helping us to build the SI partnership. And she’s not alone, with somebody else, that’s one. We also believe that our product is mature enough to work with SI. And right now we are in the selection to see who is the right partner for us, because we don’t want to work with 20 SI, we want to limit it and we are renowned definition where to put investment.
So we don’t plan to do it in all territory and not to all the product. As I mentioned we see help that we need from them on the higher tiers. And we also believe that in this case the overlap will not be high, because they’re doing also a lot of consulting and things that Sapiens didn’t do at the past. And just to give you an information, in general, when Sapiens is giving offer to the clients, like X million, the customer is also has, the work that he’s doing by himself, it’s almost one to one. So the SI can do this part and we can don’t see huge overlap on the higher tiers. And then we can go also to the territories that we are second is not doing any business today, as an example, France, and we can consider to work with them. And in that case, we are interesting to shift more work for them, because we don’t have the local people.
At the past, Sapiens decision was to acquire company, but we don’t want to continue to acquire in every countries in the world. So we decide to work with SI.
Chris Reimer: Also if you could just touch on the gross margin expansion. Given the transition you mentioned to the products SaaS offerings. Do you expect any change to the gross margin? I think it was previously, you noted that it was 56 in recurring segment.
Roni Giladi: So due to the transition that we mentioned moving to SaaS subscription and shifting from post-production services to subscription or some high value to the subscription coming from the implementation, obviously, we are going to see a slight increase in the subscription gross margin with lower gross margin on the implementation on the one time revenue, the pre-production revenue. The impact is about 0.2% on the post-production revenue, gross margin going up and 2% of the implementation pre-production revenue going down. The overall blended is about 50 basis points down. At the same time, we are doing all the time improvement in the company in terms of offshore product maturity and we are thinking that we’ll be able to offset this decrease with the efficiency that we mentioned.
Operator: [Operator Instructions] There are no further questions at this time. Before I ask Ms. Cohen to go ahead with her closing statement, I would like to remind participants that a replay of this call is scheduled to begin in two hours. In the US, please call 1888-269-0005. In Israel, please call 03-9255-938. And internationally, please call 9723-9255-938. Ms. Cohen, would you like to go ahead with your concluding statement?
Yaffa Cohen-Ifrah: Thank you for joining the call today. Please note that Sapiens will participate in the Needham Technology Media and Consumer Conference on May 14 and 15 in New York City. We look forward to speaking with you soon and are always happy to answer any follow up questions, and thank you again for joining.
Operator: Thank you. This concludes the Sapiens International Corporation fourth quarter 2023 results conference call. Thank you for your participation. You may go ahead and disconnect.
