So, Virta, for example, our partner in the diabetes space, is not for everyone, right? It’s only available in one language, for example. We serve members with half a dozen languages, right? So, we are able really to tailor make the match in a very smart way, and basically steer that member to the best solution for him or her. That’s really the difference. Now, financially, what it means is that these companies don’t have a cost of acquisition, right, because I’m essentially delivering a member that’s ready, willing, able to sign up for their services and start using the service. So, basically, I take a big fee, a big slice of their revenue in exchange for them not having the cost of acquisition. So, more members in this ecosystem, obviously more of revenue for Marpai.
Allen Klee: That’s great. And is the way to think of that fee – just last question on this, for you, you’re the – that would be relatively high margin compared to your other offerings?
Edmundo Gonzalez: Well, it is. This particular piece here, if you look at it as a standalone, I mean, this is a software-driven fee. So, our approach in the marketplace is first and foremost to understand you and what healthcare journey you are on. But then afterwards, it’s really to communicate with you if there is something that can make a big difference in your life. And that’s a multi-channel approach. That’s a software – largely a software-driven approach. So, we obviously communicate via text, pings on the app, in some cases also phone calls by our clinical team. But our lift there is not really providing the service. Remember, we’re not the provider. We’re the payer. It’s really matching you with that payer. So, one would expect software-like margins in that brand new revenue stream. We’ll start showing revenue from this ecosystem this year. And obviously, that ramps up next year as well.
Allen Klee: That’s great. Thank you. And then you talk about how most of your – well, most of your contracts are one-year plus, and I believe that most of them have a January 1 start date. Is there any qualitative comment you could talk about and how you feel the renewal season went?
Edmundo Gonzalez: Look, for the beginning of this year, we had several items kind of in play. First and foremost, on the legacy Marpai side, we had managed to kind of clean up the first the first acquisition we made actually in 2021. So, if you eliminate the client that we talked about, which we actually asked to leave, as well as one client that experienced a bankruptcy, again, there’s nothing we can do, our renewal rate was in the 90 some percent, which is very, very good. That business, by the way, when we bought it, was only retaining about 70%, meaning that they were losing 30% of their business a year. That’s not sustainable. So, I do feel some of those customer bases that we have acquired have stabilized, and obviously we’re working very hard to keep those clients.
That’s really the mark of success here. On the Maestro side, I would note that most of those clients actually do not have one-year contracts, but multi-year contracts, right, three to six-year contracts. So, that revenue base actually does not come to the market every year, and it is staggered, right? Again, the dates of renewal in the Maestro base are also heavily weighted to 1/1, but the amount of the total base that actually comes to the market that year, even for a renewal or for a price check or whatever, is not all of the customer base. It is staggered.
Allen Klee: Okay, thank you. And then I guess more on thinking about the financials, in terms of revenue, how do I think about the revenue per employee lives under coverage kind of as a mix between both of you, and how to think about what that could mean if you move more to the Maestro business model of everything that they have?
