Matt Calkins: Look, I absolutely have that in mind when I roll out the new pricing plan. I also have in mind that we’ll shift the basis for our discussions with customers away from price. I don’t want to be price engineers. I want to be feature engineers. And I want to talk about the features and the scalability, the reliability, the things that make Appian actually different that’s why I want to spend our time. So, I am hopeful that it will help us to reduce sales cycles, but I can’t put anything on the table. I do think that it will guide the conversation in a more productive and pro-Appian direction.
Unidentified Analyst: Yes, that’s great. One last one for you, Matt. You’ve reduced the number of partners a lot with the focus on quality over quantity, it seems like. Has that kind of improved the quality of leads and pipeline flow from partners?
Matt Calkins: I’d say that the — we’re early days on this shift. We have emphasized a few partners. You’re absolutely right. I think that’s going to be healthy for the business. Right now, we’re getting a little bit more than we did in the past from partners. So, if you take all of our partners added up, even the ones that we dropped, right, total some, right, addition to our pipeline, yes, it is up. But I think it’s still early to see the long-term ramifications of this prioritization — and all I can say is that the first indicator looks like we’re probably making the right decision. But I already have more confidence that we’re making the right decision based on other things based on internal analysis. So, this is just one of the smaller confirmations that we’ve made the right choice.
Unidentified Analyst: Okay, great. Thank you.
Operator: Thank you. Our next question comes from Kevin Kumar with Goldman Sachs. Your line is open.
Kevin Kumar: Thanks for taking my question. I wanted to ask about net revenue retention, that’s been picking up the last couple of quarters. I’m just curious kind of the trends you’re seeing there and whether some of the go-to-market changes that you’ve been making to focus on your larger customers and maybe some of the pricing changes are impacting that kind of expansion motion?
Matt Calkins: Yes. Well, first of all, I would love to see this in the kind of range where it is. We always talk about $110 to $120, but between those, I got a preference. And I think that this is the kind of net revenue retention rate that is encouraged by the moves we have made, just like you pointed out, I think it’s too early to say that these changes, which have just happened, right? We’re just making them now at the top of the year, have had any impact on the net revenue retention rate. Honestly, that’s a trailing indicator. That’s — it’s going to take a long time for the changes we’ve made to filter into that metric slowly over the course of a year or 2. But they should help. If we focus on large opportunities, if we put more of our attention on our top customers and our top partners, I believe that will be a net revenue retention positive. And I’m not asking to see it in Qs 1 or 2 or even 3. But I do think in the long run, it’s going to boost us.
Kevin Kumar: That’s helpful. And then maybe can you talk a bit about procure size and how that expands the federal opportunity for Appian? — what — it’s probably still a bit early, but what’s been the initial response there?
Matt Calkins: I’ve been itching to talk about this for quarters. So thank you for bringing it up. I’ll be happy to address it. As you know, we’ve got something called the government acquisition management suite, which is a series of solutions, interlocking solutions that cover the entire acquisitions process for a public sector buyer. Those can be adopted singly or in cereal and all at once or sequentially. That’s been really popular. It’s established itself as an emerging standard in the U.S. government. The users are very pleased and this new offering reinforces it. It capitalizes on the market leadership that we’ve established in procurement by offering a service, an AI backed service that taps into a number of different data sets, very deep, very wide data sets that give you the history of procurements of the past, including awards of the past and solicitations in the past.
So we’re going to give expert AI-based advice on what’s happened before in the world of procurement. And then also AI will help you to write your new procurements. This is an extraordinary accelerator. I wouldn’t recommend using it without a person in charge, right? This is for the procurement professional, not a substitute for the procurement professional, but it does allow that procurement professional to be far more efficient. And if they’re already working with Appian, then they’ve got the confidence and they’ve got a framework into which to use the results they get out of ProcureSight. So we’ve got high hopes for this one. I’ve been excited about it for a while.
Kevin Kumar: Okay. Thank you for taking my question.
Operator: Thank you. [Operator Instructions] Our next question comes from Tom Blakey with KeyBanc Capital Markets. Your line is open.
Tom Blakey: Hi. Good morning, guys. Thanks for taking my question. Just I guess my question is riding on a couple of the prior questions, one of Andrew’s on bookings. But what the 1Q bookings sounded a little soft. And just wondering, looking out then with the acceleration expected in the second half, if it’s — what kind of bookings assumptions were made there, Mark? And maybe dovetailing in the pricing as well, a 25% price lift, I think, is the number sounds high. Is this just for new processes? Is it just for new work? Or is this kind of come upon each contract renewal for a larger set of customers? And I have a follow-up.
Mark Matheos: You Take the first part and then I’ll.
Matt Calkins: That’s right.
Mark Matheos: Yes. So Tom, it’s really not a normal story for us. Again, it’s seasonality. One thing I didn’t mention, which I should, is that we did have an FX weakness since our last guidance in February. And so we did have a few million dollars leave our backlog for the year. And so we’ve absorbed that or we’re not — we’re able to reaffirm our full year cloud guide despite that. But that took a toll on Q2 and the full year, and it was an impact as well. But there’s no there’s nothing about our bookings pattern this year that’s different than any other year in our assumptions for guidance or anything like that.
