Kim Nelson: Sure, Scott. I would say the playbook is very similar to 2023. We look at a nice healthy pipeline of community enablement activities in 2024. We’d expect that to be similar to 2023. Still lots of opportunity to be helping retailers as well as suppliers on this omni-channel journey. When I think about the European side, and we think about the acquisition we made of TIE, our philosophy approach there is the same as when we announced that acquisition, which we really want to take the year 2024 to really understand that market, and better understand the e-invoicing, capability inside as it relates to that market opportunity and we’ll be taking that time in 2024 to then inform our view of what that looks like for 2025 and beyond. So sort of a long-winded way to say, our expectation is lots of opportunity for us in 2024, similar to what we saw in 2023.
Scott Berg: Excellent. Helpful. Congrats again on the nice quarter.
Operator: Our next question comes from Joe Vruwink with Baird. Please proceed.
Joe Vruwink: Great. Thank you for taking my question. You normally talk about your revenue growth being a combination of both customer counts and wallet share capture. I think 2023 was a bit more weighted to wallet share. And if I did my net organic customer ad math right, I think that was a positive number obviously but down from 2022. I guess, getting back to the intro comment if the algorithm holds I would expect maybe 2024 to, therefore, be stronger from a customer count perspective. And if you agree with all of that, what might be some of the drivers behind us?
Kim Nelson: Sure. So when we think about 2023, we would characterize that as similar call it net customer adds outside of acquisitions. The level we were seeing really so call it pre-pandemic level as it relates with the biggest driver, of course, being related to those community enablement activities. If you look at Q4 just a reminder, we added about a net $300 million in Q4. Do keep in mind that Q4 tends to be our seasonally lowest sequential net customer adds just because of the holiday season. Q4 was up slightly versus last year when you adjust out for the acquisition. So pretty similar, pretty in line with what we have seen historically a little bit higher but pretty close in line. And as it relates to our view in 2024, we provided what our overall expectation is for revenue, obviously, when we announce our results we then give the breakout between customer adds as well as ARPU.
But you should anticipate the highest quantity of customer adds coming from our community activities that we’re anticipating in Q4. We also have a very vibrant channel sales organization that brings us in front of some of the larger than average customers that will impact more the ARPU scorecard than the customer scorecard.
Joe Vruwink: And maybe my second question on that. So I think the example shared True Value where you end up adding 1,000 vendors. But I’m sure a lot of those vendors were probably already on the network in some capacity. Do you think the opportunity is evolving a little bit where you’re in front of who you need to be in front of. I mean, you’re the largest network in the industry by far. But there’s actually more of an opportunity to maybe monetize the customers on the network already?
Kim Nelson: Sure. Great question, Joe. So it’s actually quite different depending on the retailer. So as you know we do multiple community enablement activities throughout the year, and there’s a mix between those. So in some cases depending on who the retailer is, it’s going to skew more towards new, like, net new customers. In some cases it might skew more to existing customers, and therefore to your point that’s adding to our wallet share. It’s just more revenue we’re getting from an existing customer. And then, of course, with any community enablement activity there’s also some that just test with us. So they’re in our database to reach out to over time but don’t become a recurring revenue customer at that time. So our belief is that we are not at all fully penetrated or saturated and that we would expect to still see a nice healthy mix of adding new customers, as well as of course getting more revenue from our existing customers.
Joe Vruwink: Okay, great. Thank you very much.
Operator: Our next question comes from Jeff Van Rhee with Craig-Hallum. Please proceed.
Jeff Van Rhee: Excuse me. Great. Thanks. Thanks for taking the questions. So maybe a couple for me, a couple of cleanups. Kim what was channel revenue for the year percent of revenue?
Kim Nelson: We actually – we don’t share that percentage out. It’s probably been – it’s been multiple years since we’ve shared that out. What we would say is it remains a very important and healthy component of our overall contribution to revenue and new business. You will see that more again impact the ARPU versus the customer adds But it’s a really important part if you think of sort of the concept of three legs to the stool to ARPU that one primarily driven by channel sales is one of the three components there. So it remains very healthy and robust for us.
Jeff Van Rhee: Growing? Would you at least say, it’s growing as a percent of revenue?
Kim Nelson: I would say that we have more – as each year goes on, we have more and more relationships, more and more expertise in the channel market so that our name certainly is resonating and coming up often. Sometimes where you’re going to see, however is there might be a prospect. And maybe they have a system they’re deciding are they moving to another system. And sometimes we might get into that sales cycle where they’re evaluating a couple of different ERPs, we’ll ultimately win that business. But we get connected with that prospect actually sometimes through multiple ways through the channel.
