Samuel Wilson: Well, let me answer the second part first. The answer is yes, and I would put an F-bomb in front of that. Yes, our intelligent customer assistant is an AI-enabled voice and digital chatbot, and you pay to use it. We sell it on a per-interaction basis, so yes. And we’re seeing significant usage increases off of it. And as I mentioned in my script, all the customers are referenceable. So it works and it works really darn well. Where do I see AI? Here’s what I’ll say. Our customer base is not a bunch of PhDs in data science and computer science. And they want an LLM, large language model, with a rag component and an IDE where they have to put it all together. That’s not my customer base. They’re not rocket scientists.
My customer base wants products that solve their problems. And so, what we’ve done is we’ve taken the AI, either through our TPES partnerships or through our in-house shared services and embedded it into products that they can use to solve their problems. And it works, and it works really well. I mentioned, for example, in my script, the VoteIt, right, from the UK team, pushed out this product that allows local governments to offer voter information, polling information, all these kinds of things. All that is AI driven. It’s all AI driven. It does in voice and digital, mainly digital, but it’s a phenomenal product. The key for me is nobody wants to buy AI. What they want to buy is a solution to a problem they have. And they are more than happy to pay for a solution to a problem they have.
They don’t want to pay for a bunch of Lego blocks spilled on the floor that they have to put together to do something.
Operator: Our next question comes from Catharine Trebnick with Rosenblatt.
Catharine Trebnick: Sam, last year, you rolled out your whole ecosystem of partners for AI between – you wanted to really leverage everybody else’s LLM and cognitive and conversational AI. Can you kind of update us on where you are in that process and how you feel that will you know eventually drive more opportunity for you.
Samuel Wilson: TPES. So, look, simply put it’s working, right? If you look at our partnership with Cognigy and ICA, we’ve got AI-enabled voice and chat bots that are killing it. The results are well above expectations. Every single customer is ecstatic. We have customers that have gone from signed deal to full deployment within 20 days, and have seen 50%, 60%, 70% deflections on their use cases, and a 10 out of 10 CSAT score. They’re ecstatic. And that’s really the power of that ecosystem. We have Awaken, which we have double digit number of deals in for agent assist, and we’re seeing a lot of traction in the agent assist market. Even take a step back, we have relationships with people like Meta and with Llama 4 and Open.AI and their ChatGPT model, those kinds of things – those are all embedded into the platform itself, right?
I’m really happy because I think sometimes Wall Street misses that our customer, our core ICT customer will pay us for integration. They’ll pay us for integration because they don’t have the capabilities. They’re not a United Airlines, they’re a Cape Air. They’re not Bank America, they’re Atlantic Union Bank and those kinds of things. And so, what they’ll do is they’ll pay us for taking that partnership risk, figuring it out, and delivering them a complete solution, and they pay us really darn well for doing that for them.
Catharine Trebnick: Are you seeing an incremental uptick then on the price of that seat versus traditional CPaaS seats? The reason I’m asking is Gartner [indiscernible] huge report out where it showed on an average 3 to 5x lift on if you did conversational AI on top of a base seat price. And are you actually seeing that?
Samuel Wilson: I think the answer is yes, but I think it’s a little bit – so I don’t know, I haven’t seen Gartner’s analysis, but I’ve seen some of the other ones. It’s a little bit misleading, I’m not sure what the right word is, because here’s what we see, right? Let’s say three years ago, we sold 100 seats on the per seat model, and those 100 seats netted us $100. We may only sell 92 seats now, so that’s $90 [ph], but we’re going to sell three bots, and so the total deal may be $200, but it’s spread across 92 seats instead of 100 seats. And so, on a per seat basis, it’s a significantly bigger number. If that makes any sense, there’s a math here. And I’m not trying to blow you away with math. So the two to three, I think, is a little bit of a – you’re reducing the denominator and increasing the numerator.
We definitely see, when we sell those bots. and we sell the add-on AI products, total revenue per customer increases significantly. And look, we’re selling a few less seats, which is what we expect. I don’t think anybody’s going to freak out about this. We’ve always expected that technology will replace human beings on routine work assignments. That’s what technology has done for thousands of years and will continue to do for the next thousands of year.
Operator: I’m showing no questions at this time. Please proceed with any closing remarks.
Samuel Wilson: Thank you so much, everyone, for joining us today. In conclusion, fiscal 2024 has set the stage for what we are capable of achieving. We began the year with a clear strategic direction and strong financial position. I’m incredibly proud of what we’ve accomplished and I’m excited about the opportunities ahead. I love the questions that were asked today. It really shows you how people are diving into us and trying to figure out the next step. Thank you once again to everyone for your trust, your partnership, your questions, etc. We’re committed to delivering on our promises and driving value for all our stakeholders. I look forward to talking to you on an upcoming call. Thank you.
Operator: Thank you for your participation. This does conclude the program. You may now disconnect. Good day.
