So feel like we’re there. We just got to beat the drum, get the word out.
Mark Schappel: That’s helpful. Thanks. And then shifting gears a little bit here. With respect to your sales motion, could you just give us a sense of what percentage of bookings were cross-sell upsell during the quarter or actually during the year?
Eddie Capel: I think, let’s see, we’re right around – give me a percentage here and there, but we were just under 30% for the quarter, and I think for the year we are right in the 26%, 27%.
Mark Schappel: Perfect. Thank you. That’s all for me.
Eddie Capel: Okay. Thank you, Mark.
Operator: Our next question is from Matt Pfau with William Blair. Please proceed.
Matt Pfau: Hey. Great. Thanks and nice quarter guys. I wanted to ask on the Shopify partnership. Is that just a product integration partnership? Or is there a go-to-market motion there as well with them?
Eddie Capel: Yes, both. I mean, as is, obviously, we’ve announced the partnership as is customary with us, and I think Shopify too. We’re going to make sure that we’ve got all of the technical aspects of product integration, end-to-end integration and process flows completely ironed out before we do anything more. But now it’s – at the moment, it is, we’re working on the certified integration. We’ve got joint clients that are in active implementation, we expect to be live in Q2.
Matt Pfau: Got it. Great. And then I wanted to ask on the margins. I understand that – I think the margin – slight margin decline, operating margin decline you’re guiding for in 2024 is effectively all driven by revenue mix, with the runoff of maintenance and license. As we think like longer term, about the cloud gross margin, which you don’t break out specifically, but is that still ramping? Is there still upside to that as you scale? How do we think about that?
Eddie Capel: Yes. Yes, there is. I mean, we’re effectively continuing to increase operating margins if you take out the drag, and we still think there’s scale opportunity in client operations and up and down the P&L, frankly.
Matt Pfau: Okay. Great. Thanks guys.
Eddie Capel: Thank you, Matt.
Operator: And our final question comes from Blair Abernethy with Rosenblatt Securities. Please proceed.
Blair Abernethy: Thanks very much and nice quarter, guys. Dennis, just wondering on the professional services side of the business. If you look at your overall hiring, your total employee headcount was up around 10% in the year. But your professional services revenues were up around 24%. Can you just help reconcile sort of capacity in that professional services business and pricing in the market, how that performed in 2023 and sort of what you’re looking at for 2024?
Eddie Capel: Well, Eddie here. Just a couple of points. I mean, obviously, we have seen a little bit, not a ton, but we have passed on a little bit of wage inflation and so forth for that customer. So you’ve seen hourly rates tick up a little bit. But most of the leverage comes from the efficiency of the organization, for sure, particularly as we continue to focus on the center of excellence that I talked about, the training and the onboarding of the new resources. Now the other thing that I mentioned, we had forecasted a little bit higher headcount acquisition in 2023 than we needed because attrition was lower than we expected, that helps efficiency for sure.
Blair Abernethy: Okay. Great. And is there – with the Shopify relationship, will that also drive some professional services, I guess, it would if larger customers adopt your solution?
Eddie Capel: Yes. Sure. Sure. Yes. No doubt it will. Now part of our objective there, just to be clear, is to take out any of base integration work that’s needed to be done. Between us, we’ll carry that cost. So the idea is to speed up implementations, reduce the total cost of ownership and so forth. But nonetheless, there’s still professional services fees associated with implementing that joint solution.
Blair Abernethy: Okay. Great. Great. And then my next question was just really around – just maybe a little more color on the guidance, the revenue guidance for fiscal 2024. So 10% on the top line, did 21% in 2023, did 15% in 2022 and is there – I just want to get your sense of sort of how you came to your 2024 revenue view?
Eddie Capel: Well, we’re – our revenue growth guidance coming into 2024 is roughly the same as it was coming into 2023, slightly higher actually.
Blair Abernethy: Okay. Is the environment feeling about the same as 2023 at the end of last year?
Eddie Capel: Yes, in the same ballpark. Obviously, there’s a few things going on around the world that are happening now that weren’t happening at the beginning of 2023. 2024 is an election year, et cetera, et cetera. So the things that you know about. But aside from those things, everything feels about the same.
Blair Abernethy: Okay, great. Thanks very much.
Eddie Capel: Our pleasure, Blair. Thank you.
Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to Eddie for closing remarks.
Eddie Capel: Okay. Terrific, Sherry. Well, thanks, everybody, for attending today. Again, we’re pleased with 2023. Looking forward to a fabulous 2024, and we look forward to updating you on the Q1 results in about 90 days. Thank you.
Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.
