Brett White: Sure. So if you take round numbers, we look at our TAM, the market we’re going at in dental, optometry and vet, call it, around 200,000 locations. And we’ve got integrations now with over 90% of those locations. The really important thing to understand with an integration is there’s several levels. We categorize them as level 1 through level 5. And in dental, optometry and vet, we’ve been going back and back and writing deeper and deeper integration. So something that was 1 year ago or 2 years ago, a level 1 integration, which was basically just reading contacts. Now, we’re able to deepen those integrations, make them much more powerful, having read-write capabilities, payment capabilities. So even though we don’t technically open up more locations, we make the product market fit much more robust with the ability to deepen the integration.
So that’s on the dove side. And then on the – next on the specialty medical verticals where we’ve really been focusing recently, that’s physical therapy, medical aesthetics, plastic, primary care. We think there’s about 160,000 of those in the SAM, and we’re probably not even one-third of the way there with integrations. So lots of opportunity there, and we’re just working through the list, chipping away on the integrations and then the go-to-market plans. So we’re making good progress, but we’ve got still lots of opportunity in front of us.
Alex Sklar: Okay. And then, Brett, maybe just a follow-up for you. In terms of kind of accelerating growth as a key priority, you said in the prepared remarks, I just want to talk about some of the lead gen motions. Events, I know, was a big kind of snapback last year in terms of kind of overall source of leads. But can you just talk about some of the processes or broader lead gen sources that you’ve seen the most success with in terms of growing pipeline here at the start of this year?
Brett White: Sure. So events for sure, especially in dove. We recently went to a Med Spa event and really pretty significantly beat our expectations. So the opportunity, the interest, the demand is definitely there. Other areas we focus on are digital and a number of different digital marketing categories. And actually, just old school mailers work really, really well. And so being very focused on product market fit, we have very vertically focused digital marketing materials and the classic outbound calling off of lead lists. So we’re working both the inbound and the outbound side and seeing quite a bit of success on events, digital, and then just kind of old school mailers.
Alex Sklar: Okay. Great. Thank you.
Operator: Thank you. Our next question is from Parker Lane with Stifel. Please proceed with your question.
Parker Lane: Hi, guys. Thanks for taking the questions. Good afternoon. Alan, this one’s for you. Congrats on the tremendous progress in gross margins since the IPO, I think, 1,300 basis points plus. What’s the new milestone for you guys when you think about the potential for gross margins? And are there any new drivers aside from scale that can get us beyond this new level that you set?
Alan Taylor: Yes, thanks for the question. I appreciate it, Parker. Yes, we’re thrilled with this progress. We know there’s more to go. We’ve said that in the long-term, a 75% to 80% gross margin company is where we think we can be. That’s going to be a combination of things. Certainly, as payments grows as a portion of our business, that will improve our margins. We always are going to be focused on the cost elements of it. We’re blessed with an engineering team that really understands this concept while making sure that customers are taken care of, and that blend is unique and hard to find sometimes, but our folks are great at it. And so they’re making sure that efficiency is top of mind as we kind of scale in the cloud with GCP and just across the board in all of the ways that we scale the business and build the product out.
So the upsells that we’re looking at, the payments revenue on the revenue side are all going to improve our margin profile, and we’ll just be having unrelenting vigilance about costs to make sure that we get to where we want to go.
Parker Lane: Got it. That’s makes sense. And then, Brett, for you, wondering if you could give us a sense of how material the number of potential prospects or customers that have looked at your lack of integrations with the ones that you’ve just recently established and said, hey, maybe now is not the right time to buy Weave. Is there a large number of those? Or is this really just about driving customer success in your existing base of customers and bringing those integrations closer together?
Brett White: I would say – so let me take the question in two pieces. One is deepening integrations in existing markets. And just the deeper the integration is, the stickier the product is. And so the more sticky it is, and it’s also perceived as delivering more value. So we can serve up more functionality in an existing implementation, the deeper the integration. So the more value we can prove to the customer obviously increases the stickiness and then the value we can associate with our product. So deepening integrations just makes us much, much stickier and provides more value. And then new integrations. I mean, one of the things we’ve learned at events is when we roll into town and we talk about, yes, we now have an integration with this vendor or we have an integration with this vendor, we get a lot more attention.
And so they’re – it’s a very fragmented market. And being able to offer integrations really does open up additional SAM for us. And we’re seeing it in events. We’re seeing it in our marketing materials. We’re seeing it in our conversion rates.
Parker Lane: Got it. Appreciate the feedback here. Congrats, guys.
Brett White: Thank you.
Operator: Thank you. Our next question is from Michael Funk with Bank of America. Please proceed with your question.
Unidentified Analyst: Great. Hi, there. This is Matt on for Mike Funk. Appreciate the question. So my question is on NRR and the inflection this quarter. What’s a good upside scenario for NRR going forward? And how important is payments going to be as well ever in expanding that? And then as a quick follow-up, do you anticipate any evolution of the go-to-market motion, Salesforce structure, or Salesforce compensation as some of these adjacent verticals scale and payments becomes a greater percentage of revenue? Thanks.
