So again, we’re super focused on it. We just — we have a high degree of, I would say, visibility and accuracy in our ability to predict our business. And so, we don’t want to commit to something until we’re 100% sure we can deliver it, and that it’s today the right sort of mix for the business given some of the other pushes and pulls we’re seeing from a demand perspective within the business, and again, I would argue are all positive developments.
Tejas Savant: Got it. Super helpful, Ross. My next question here is really related to the expand part of your land and expand sort of algo, right? And would you be willing to share a little bit more color in terms of what you’re doing to incentivize cross-selling into your existing customer base once you land them? You called it out as one of the more conservative assumptions in the guide. So, I’m assuming it’s an important focus area for you. And of the growth that you saw in ’23, do you think you could parse it out for us in terms of how much came from just new accounts versus existing accounts ramping volumes on your legacy solutions, so to speak, and the third leg being existing accounts adding new SOPHiA solutions that they haven’t used before?
Ross Muken: Sure. And it’s a great question, because I really think it speaks to sort of the differentiation of our business. And again, as a software company, net dollar retention remains a crucial metric for us, right? Because that truly kind of, I would say, shows the health of the expand, right? And so Jurgi, in the prepared remarks, did share that our average number of applications per customer expanded this year from 2.3 to 2.5, right? With many more, I would say, having multiple applications than we’ve seen in the past. This is incredibly crucial to us and it gives us again very high degree of visibility, but it’s also a very high return on CAC, right, in terms of the customer acquisition cost, because you’re obviously selling with an already landed customer.
And so, in that, I would say and even more so over the last six months, we put a real focus on the expand. And I think we’re seeing really nice dividends. And you can see the growth we have this year in HRD are solid tumor overall. I think ’24, ’25 liquid biopsy will remain a really good story for us. But frankly, there are quite a number of applications for folks to adopt. There was a client Jurgi called out on the call, that actually is going to start with us with 11 applications, right? I would say this is not the norm, but it just gives you the sense of how much expand potential there is at many accounts. And so, I would say, we’re doing a much better job now of incentivizing that behavior, albeit I would caveat and say it’s still challenging at times because if you’re using an existing solution and even if you’re not happy with it, the friction to change is high, right?
So, this is why our churn is so low, in general. So, it also benefits us. But it does make, I would say, the pace of expansion a bit more elongated than you would see in most markets. But still, again, longer term, this is quite a positive. The one other thing I would say to your question is, obviously, a good proportion, a very high proportion of our growth came from the expand from existing customers this year. The land typically for us is anywhere between 0% to 5%, right, of our growth. This year was sort of in the middle. I would say, the ideal situation for us is that sort of sustains solely because it essentially positions us for a much more, I would say, visible, elongated period of elevated growth. Because all of those customers, the 80-plus that came on this year, they will contribute materially in ’24 and ’25, right?
And the ones we land this year thereafter. In the guide, we obviously are assuming a much more conservative amount this year. It’s towards the lower end of that. So, we have very little contribution. And so again, maybe that will prove conservative. But we just wanted to call it out this year relative to some of those dynamics that we’re seeing, right? And so, ultimately, we feel good about that. Kellen, do you want to maybe add a key point there?
Kellen Sanger: Yeah, sure. Thanks, Ross. I think as mentioned, we’ve had a — we’ve demonstrated a proven ability to expand within our existing customers, which makes the announcement that we had today that we’re adding 35 new core genomics customers. We landed 35 new core genomics customers in Q4 even more exciting. These are customers who are going to be ramping up and implementing SOPHiA DDM over the next six to nine months, within 2024. And so, after landing those, we’ll see even more potential to expand within those accounts in the areas that we mentioned around liquid biopsy or solid tumors or the other growth drivers.
Tejas Savant: Got it. Very helpful, guys. Last one for me here. Ross, any thoughts on this on the LDT regulation from the FDA? It now appears increasingly imminent. What are you hearing from your customers? And should that final rule not include grandfathering or any further pushouts to implementation? What can SOPHiA do to help your customers adapt?
