I’m super happy. The customer satisfaction once they’re on the AI platform, is outstanding and the renewal rates are high once they’re only made. So we see to accelerate it kind of get through the bubble – thinking of sort of self-inflicted gunshot wound that we had around it. I think probably the worst quarter was last quarter. We saw a little bit slight improvement this quarter and I’m not – we’re hopeful it will be a little bit better next quarter.
Peter Levine: Thanks for the color.
Operator: Our next question comes from Michael Funk with Bank of America. Your line is open
Michael Funk: Hey, guys. Thank you for the question. So first on general Contact Center Health do you have any comments on agent hiring maybe that you’re able to see during the quarter and usage trends as well. And if you do have any color, how did that trend during October heading into the holidays.
Samuel Wilson: It’s a good question. I mean Lisa, you can chime up here anytime you want. I mean look what we’re seeing is the normal purchase of bursting seats, by our retail customers. So the seasonality the normal activities that you would expect to see by the retail customers of adding agents in September and October getting them trained. I don’t think — I mean I think that’s happening. In general, I still see more onshoring than offshoring. I still see the trend of bringing contact centers back from developing countries back onshore to drive higher CSAT scores and higher NPS scores to drive renewal and retention rates, those kinds of things. So I think underlying — I don’t know
Lisa Martin: Yes. I think the other thing that I would add in terms of our retail customer base is that, they’re really looking to get more out of the folks who are front and center with their end consumer and giving them the tools to be more effective. So, I think what we’re seeing more is the interest in wanting to give someone who’s in its retail store location, access to the same insights and tools that’s someone who does sit in a contact center, so that they’re able to serve that consumer just like the person would in that contact center.
Samuel Wilson: I think the other thing, is on as Lisa said, that kind of occur to me, is look it’s a little hard for us. Like we’ve never been the world’s biggest player in contact center, right? There’s others. And so what we see is a lot of our customers especially, when we launched this host of new products, mean I’m utterly surprised by the — just the sheer volume and wonderfulness of the products we’re launching right now, kind of sure our customers are just happy with us right now ,when they get these new products in their hands and they get to play with them and see what the capabilities are.
Michael Funk: That was great color. Thank you, guys. One more Sam, if I could. I’m trying to parse your comments on Fuze. I think you said that churn had risen to about 2x the industry average. I think you mentioned this last quarter, you saw the highest level of pressure on the business. So just trying to map that to when Fuze may no longer be a headwind to the business. So, if I take that math in my head, is it fair to assume that at the earliest second half of next year, we’re back in line with industry type churn, migrations are progressing and the Fuze business is no longer a headwind. Is that the right way to think about timing for that?
Samuel Wilson: I’m trying to do to my head, hard to say. I mean the second half of next year, I and Walter are going to have a bit of a discussion. I want it faster. Look, I think we’ve sort of peaked in the worstness. The question is how fast can, we get it better. We’re very — we’ve got a triple-digit number of migrations underway – sorry, upgrades underway right now. And so I think like the basis — the basics are happening. I think we’re past the worst The question really is the top 400 customers — and they’re a little bit of each one is a little bit of a snowflake. And it’s hard for me to nail down the timing, when we’ll get them all moved over and it will no longer be a thing, we ever mentioned again, right? Everybody will be on the 8×8 platform.
I’m hoping in the next few years, I’m not going to force that top 400 to move over. I think what’s also interesting is, we are starting to see more cross-sell opportunities in that top 400. So it’s a balancing act right now. I don’t know, if I can answer for you, if I am honest.
Michael Funk: Got it. One more quick one, if I could. Renewals have been top of mind. A lot of companies talking about seat contraction at renewal contact center you see how are your renewals looking for fourth quarter this year and then beginning of next year? Is there any kind of tagging the python to worry about?
Samuel Wilson: No, there’s no stake in the python to worry about — we have seen as asked earlier a little bit about economic pictures and I’m seeing Michael. What I’ve seen is a little bit of downsell pressure not so much on the logo side, but a little on the downward on the downsell side 100 seats becomes 97 seats, because they’ve shrunk their play. What’s interesting is we’ll usually pick that up a year or two later as a run rate order at the Flex Black up. So I would say look it’s not it’s a little worse than it was a quarter ago, but it’s not meaningful.
Michael Funk: Okay. Great. Thank you all for the time, really appreciate it.
Samuel Wilson: Thank you.
Operator: Our next question comes from Ryan Koontz with Needham & Company. Your line is open.
Ryan Koontz: Thanks for the question. Really nice job on the cash flow obviously here. I ask you about the geographic theaters and any comments you could make either that around your customer segment Sam it seems like the malaise is kind of broad-based and as you’ve kind of retooled your go-to-market machine. But any kind of color you can share across the theaters be your strength in UK or APAC or across the different US segments would be helpful. Thanks.
Samuel Wilson: Well, I mean, look I’d be remiss in not starting with the basics like CPaaS killed it in Southeast Asia. They had a great quarter. The changes we’ve made over the last six to nine months really started to kick in. Their pipeline activity is up. The revenue produced was up. It was a great quarter in CPaaS and there’s a lot of room to run there. We have to get all the ducks lined up to make that show up in the income statement, but there’s a lot of potential and activity there. So that would be first and foremost. I think secondly, we are retooling our go-to-market but there are a lot of green shoots around our new products and the uptick in customer activity and the reference ability of coming out of beta the raw number of customers that are interested in our new products those kinds of things the pipeline activities et cetera big plus.
