Mike Latimore: Great. Thanks very much So I guess, Edwin, when you get back to growth later in the year, do you think the growth will come evenly from new logos being layered in versus expansions? Or is it logical that one of those two categories really is the key growth driver later in the year?
Edwin Miller: Nice to hear your voice, Mike. Yes, it’s a good question. We’re focused on new logos and existing. And when you have the kind of client base we do in those four verticals, it’s kind of hard to ignore them. And they’re spending money. Everyone is trying to figure out what to do with AI. And the way we’re positioning it is it’s AI plus prescriptive analytics. If you think about the three categories of analytics, you can be descriptive of what happened yesterday, which is important, right? We all want reports of what happened. You can get descriptive in that report and make good business decisions, I think. But where you really want to get in the future is prescriptive, and you basically want to be able to tell them, “If you do this, this will happen.” And I think that’s going to resonate well with our existing clients, and it’s going to resonate well with AI models with new logos.
And I’ll add to that, the fact that the kind of clients we have and the experience we have in these verticals with deep data, it’s 1 billion conversations that are refreshing every day, which is insanity for us, it’s awesome. Our understanding of the market and our ability to get talk through what business problems exist and what they’re going to look like, it’s pretty powerful. So I think it’s going to be a mix of both. If you look at our pipeline, it’s growing each day. We’ve got great sales teams aligned with the go-to-market. We’ve launched a couple of new AI modules. We’re going to launch more. So I think it’s going to be both throughout the year.
Mike Latimore: Got it. And on the small business segment, what percent of revenue is that now?
Edwin Miller: It’s around 15%. And we’re not ignoring it. But it’s not a focus of ours. The Fortune 500, I mean that’s a multi-multi-multibillion dollar segment to go after. And I just don’t see them taking AI and prescriptive analytics all in-house and trying to solve the problems themselves. They’re going to rely on experts. They’re going to rely on AI SaaS companies to help them, which is where I’m focused the company to go. And so as long as we’re delivering new value-add in the AI market and can hit all three buckets of analytics but land on prescriptive, we’re going to grow that Fortune 500 footprint. I’m just going to try to make it much easier over time for small businesses to consume with very low touch because you’re talking very low numbers compared to the focus we have and the ability we have to sell, again, landing some of the logos we have in all four verticals.
Good luck to companies trying to penetrate those businesses because they’re hard. It takes a long time to build trust. And we’re embedded. And they’re great partners. So it’s just fantastic. We got some of the best logos in the world. So not ignoring that 15% at all but really focused on the Fortune 500 and the four verticals I’ve mentioned.
Mike Latimore: Got it. And then just in terms of how you price for your service, any notable changes there? Do you feel like you have the pricing model down?
Edwin Miller: Yes. I think we’ve got the pricing model down. It’s set. If you think about the full stack of what we deliver, whether it’s a texting solution or a number solution, that’s kind of set in the marketplace. The question I’ve got in my mind is what’s the model really going to be when we’re delivering SaaS, Marchex as a Service, with 20 different AI models. And we’re driving prescriptive analytics. So if you think about product place, price, promotion, I think the pricing and promotion, we’re going to learn a lot in ’24 going into ’25. I don’t know if you’ve met Troy Hartless, our CRO, he’s got a seat at GE in products, I’ve worked with him a couple of times, one private, one public, and he may be the best CRO I’ve seen in the field.
He’s not your normal, what I’d call, salesperson. He is kind of a finance meets engineering mind, and he thinks of products in a very distinct way. So I think we’ll probably learn this year on pricing, on things that we’re going to launch into the marketplace. And I think that’s healthy. But what we’ve been selling, I think we know extremely well how we add more value around that with an API and new data models and leveraging LLMs out there, I think that could shift a bit for us in a positive manner.
Mike Latimore: Great. And just last one on LLMs. There’s different varieties out there. There’s a wide spectrum of cost. I guess, do you kind of leverage any particular LLMs, like open source? And how do you view the cost involved in those?
