John Schwab: Yes. This is John. I’ll start by just saying, listen, I think we called that out in the fourth quarter and again, we saw nice cash collections come in in the first quarter and we’re continuing to see nice flow through coming from there. So we feel that that’s in pretty good shape. It’s getting better. We can always go to improve and we’re continuing to do so. I think we talked about trying to get a lot of that behind us by the end of the second quarter. And so we feel like we’re very well positioned. Again, you can see from the results of some of the cash flows, how that worked out. So we feel pretty good about that. We feel good about how we’ve been able to move that along.
Unidentified Analyst: Great. Thanks for taking the questions.
John Schwab: You bet.
Operator: And the next question comes from Brad Sills from Bank of America. Brad, please go ahead.
Natalie Howe: Hey, this is Natalie Howe on for Brad. Thanks for taking my question. I wanted to ask where you guys are investing in the business and if there’s any capabilities you guys are really focusing on in 2024 that will continue to drive strength in the cross selling for the year.
David DeStefano: Yes. Thanks, Natalie. There’s a few areas that we continue to advance. Obviously, we’re continuing to expand our compliance and reporting focus. We’ve highlighted our single cloud portal that’s going to have the both e-invoicing all the way through to that compliance. I still think that’s a critical part of what the market is looking for. AI, we’ve talked about this on a couple of past calls. We continue to see opportunity there. We’re making some really nice progress. Our emerging tech team has done some really nice work in bringing that forward and we’re going to continue to be pretty disciplined in what we’re doing there. So those are two areas I would highlight.
Natalie Howe: Got it. Thank you.
Operator: And our next question comes from Alex Sklar from Raymond James. Alex, please go ahead.
Alex Sklar: Great, thank you. Dave, just wanted to follow up on kind of e-invoicing and broader international momentum. You talked about the nice marketplace win in the prepared remarks. Can you just kind of update us on the mix of your pipeline today coming from international opportunities relative to a year ago and as you matured, kind of that international go-to-market motion, I’m curious, kind of the opportunity to accelerate that business going forward? Thanks.
David DeStefano: Yes. Obviously, international is a small part of our business there, particularly in Europe, and we’re very excited about what we’re doing. In fact, we can – next week I’ll be over in Europe for our EU customer conference and have a great turnout of customers and partners lined up for that session. So really excited about the momentum the team is building in that space, in particular, the number of prospects that are coming to it. So I think our brand continues to expand in Europe and is giving us opportunity to grow that pipeline. Obviously still working off of a small base, but it will be a growth vector for us for years to come. As we continue to watch e-invoicing space evolve around it, I think it will only accelerate.
Alex Sklar: Okay, great. Great color there. And then just maybe one more for you, Dave. Just in terms of the SAP migration catalyst, has anything changed in terms of when you’re being brought into those discussions, the prepared remark when maybe suggest that you’re being brought in earlier in the cycle? I just want to see how prevalent that was across your pipeline. Thanks.
David DeStefano: Yes, that’s a really exciting development for us, Alex, as we’ve talked about, we have a differentiated relationship than we’ve had with SAP in the past. We’re working with their sales teams and really have appreciated the partnering that they’re doing with us much earlier in the sales process to allow us to work with their reps who are actually getting quota relief. So there’s a nice win-win for all in this process. And more importantly, we’re able to deliver higher customer value. And so I think we’re seeing it, we’re going to see it in the win rates going forward. And that earlier visibility will allow us to further differentiate with all the SAP tools and accelerator that we’ve created over the past several years. It really positions us well.
Alex Sklar: Great. Thanks for the color.
Operator: [Operator Instructions] Our next question comes from Patrick Walravens from Citizens. Patrick, please go ahead.
Austin Cole: Hi. Thanks for taking my question. This is Austin Cole on for Pat Walravens. I’d love to get your take on where you guys see kind of at a high level where the greatest regulatory tailwinds are coming from in the U.S., in Europe? And then especially in fast growing economies like Brazil and India, are there tax compliance products that are best positioned to satisfy each of those trends, and are there opportunities, more opportunities to address those different trends in those different regions for Vertex? Thank you.
David DeStefano: Austin, last year was a record number of changes here in the U.S. So it obviously remains a fertile market for regulatory change. But I think the more seismic changes, as you note, are happening outside the U.S. And we’ve highlighted a little bit around the e-invoicing, being one. That in the digital age is an important legislation piece that’s going forward in Europe right now, is an important vote coming up on May 14 around that. And all those things line up to be persistent and consistent regulatory changes. Governments look for new ways of seeking revenue. And so when we think about our product set, part of the reason we’ve been highlighting this importance of this cloud portal, linking e-invoicing all the way through to VAT compliance, is in direct response to those regulatory tailwinds.
