Operator: The next question is from Richard Close of Canaccord Genuity. Please go ahead.
Richard Close: Yeah. Thanks. Thanks for the questions. Justin, can you just clarify, I think, you said enterprise is expected to be down from fourth quarter to first quarter. So, I guess, I want to understand why specifically it would be down, if you guys are generating revenue on a per member per month basis, why would it go down?
Justin Ferrero: That is all around the Carillon discussion. So we are taking a conservative approach. Nothing has been finalized. But as came out in our opening remarks, that’s a fantastic partner for us and what we are working on with them is to tech-enable that business. And as part of that, the conversations include potentially less revenue, but a higher margin business. And nothing is finalized, but in the theme of our guidance for this year as we want to be conservative, there’s a chance that, that PMPM could reduce and so we have built that into our forecast. But at the end of the day, the number of lives aren’t going to reduce, the momentum with that client hasn’t reduced. We have actually added an additional health plan in Q1 with Carillon and so we see that, that relationship only expanding. However, there’s a large client inside of that relationship that we are working on to tech-enable.
Richard Close: Yeah.
Justin Ferrero: And it will have pressure on the PMPM, but ultimately, we believe better gross margin. So that’s why there is a little pressure in Q1.
Jeff Arnold: Yeah. So just to explain what we mean by tech-enable is provide less services, physical services, high-touch services with more digital services, which for that particular client would reduce the PMPM.
Richard Close: Yeah. But I still don’t understand why sequentially your revenue would go down, was there any one-time revenue in enterprise in the fourth quarter or I mean
Jeff Arnold: If the revenue
Richard Close: if you have the lives, you got more revenue, right?
Jeff Arnold: Because we are taking a conservative approach on that particular client, we — it hasn’t been discounted, it wasn’t discounted in Q4. But we believe that the likelihood of us moving in this direction with this particular client is why we are going to guide that way.
Justin Ferrero: Yeah. So if you have the same number of lives against the client and the PMPM is higher in Q4 than it is in Q1, that’s why it reduced.
Richard Close: You are having a price cut essentially.
Jeff Arnold: Yeah.
Richard Close: Okay. And then I just want to go back…
Justin Ferrero: And by the way — that’s not finalized and
Richard Close: Okay.
Justin Ferrero: so a conservative approach there.
Richard Close: Yeah. Okay. That’s fine. So I think it was at a conference early in January. You guys talked about Life Sciences, the selling season was pretty good. You felt pretty good on the 2023, the selling season at the end of 2022. So I am just curious, is it just being
Jeff Arnold: Yeah.
Richard Close: conservative to assume
Jeff Arnold: Yeah.
Richard Close: Life Sciences is flat for 2023, because it seemed like you guys were pretty positive on the selling season?
