Samad Samana: Great. And then David, just on the partnership side, especially the big ones like SAP and Oracle, how are you seeing the joint go-to-market efforts there? Is it doing as you expected? Is it doing better-than-expected? And maybe how should we think about how partnerships will contribute to the strong 2024 cloud revenue growth?
David DeStefano: Yes. Thank you, Samad. We continue to see really solid performance across the base there. I think you really have to marry it well with the alliance community, because it’s the combination of the two that is really differentiated for us and supports the strong win rate we have. I think the pipeline of activity as we look forward, a lot of what the team accomplished in 2023 didn’t even benefit from some of the ECC migration efforts that we think are going to play out in ’24, ’25 and ’26. And so, I think the team has done a good job of positioning us inside of those ecosystems. And our conscious effort now to slow down our services growth to really reward our partner ecosystem further, I think is really aligned with what we want to envision growing this business as we go forward here.
Samad Samana: Great. Appreciate you taking my questions. Thank you.
Operator: The next question comes from Alex Sklar of Raymond James. Please go ahead.
Alex Sklar: Thank you. David, you’ve talked about high teens growth and targeting upwards of kind of 20% growth in some of the recent quarters, you just delivered on 19% ARR growth. Has anything changed in terms of your belief on the organic opportunity ahead for Vertex?
David DeStefano: Thanks, Alex. No, I see the — I still see — again, you have to look at the tailwinds, I really look at what are the macro events that are driving opportunities to us. And I think business model changes and mergers and acquisitions at the enterprise space continue to play out, the regulatory environment is only getting more complex and painful. And again, we’re competing largely against in-house systems that ultimately need to be replaced. And so, I think when you take those two and add in ongoing digital transformations and ERP upgrades, the strength of what we’ve envisioned happening and what we embarked on over three years ago in our investment strategy is really playing out quite nicely. And I don’t see that changing in the near term at all.
Alex Sklar: Okay. Great color there. And maybe one for you, John. Just in terms of guidance philosophy and how we should look at the 2024 outlook, I think in past years, you’ve spoken to not being kind of a huge embedded beat-and-raise cadence until you get later into the year. I’m just curious if anything changed in terms of how you approach the guidance this year.
John Schwab: It’s a great question. No, I appreciate it very much, Alex. I think we are very consistent and thoughtful about our guidance methodology. And I think we expect that we’ll continue with that same as we move forward. I think we feel it’s — it’s done us well to kind of be thoughtful and conservative about how we set that. And then the way that we approach it is not anticipated to change.
David DeStefano: Thank you, Alex.
Operator: Next question comes from Daniel Jester of BMO Capital Markets. Please go ahead.
Daniel Jester : Good morning, and thanks for taking my question. David, you gave us a little bit of update about your efforts around AI in the prepared remarks. I’d love if you could expand on the areas of opportunity in ’24? And how are your customer conversations progressing along those lines?
David DeStefano: Yes. So, thanks for the question, Dan. We continue to be really disciplined in our investment here. We’ve made a conscious effort to look at ways to improve productivity and drive more efficiency in our business and we’re seeing some really good sprouts of opportunity. I think on the customer front, it’s probably in the long run, more exciting because, obviously, I think we can drive more revenue from the business. One of the things our customers have always valued in our brand is around trust and it’s trust that we can be more accurate than they can do on their own. And so, the conversations and the reason we’re inviting our customers into the dialogue early in the process is to make sure they retain that confidence. And so, we set up a number of design programs and labs to sort of engage them in that journey to make sure we’re meeting their expectations and not undermining trust in the process.
Daniel Jester : Great. That’s great color. And then maybe one for you, John. If I look at deferred revenue on the balance sheet, in 2021 and 2022, that was kind of growing in the teens. But kind of exiting the year, we’ve kind of slipped to growth sort of in the mid-single digits. So, is there anything that we should be thinking about with regards to deferred revenue and the visibility you have on the growth algorithm for ’24?
John Schwab: Yes. Thanks for the question, Dan. No, there’s nothing that’s changed with respect to our visibility or how we think about the business in terms of kind of our confidence and ability to read into deferred revenue and what’s on the horizon. I would tell you that with the change back in 2021, we did change how we do some of our pricing for on-prem software. That’s become a much smaller piece, but over time, that’s come down. And so that’s why you see a little bit of a change relating to the deferred revenue over time. So that migration was expected to take place and has. But no, from an overall standpoint, our ability to see into the future with our customers, the contract length and the way that that’s manifesting itself in deferred revenue has been virtually unchanged.
Daniel Jester: Great. Thank you, very much.
David DeStefano: Thanks, Dan.
Operator: The next question comes from Pat Walravens of Citizens JMP Securities. Please go ahead.
