Operator: And the next question comes from Nehal Chokshi with Northland Capital Markets.
Nehal Chokshi: Thanks and congrats on the strong quarter, strong raise. Your net new ARR was up 29% for the March quarter. How are you thinking about the net new ARR year growth as we move through the remainder of the year here?
Tianyi Jiang: Yeah, so I think our guidance now for that we just put out implies $55 million of net new ARR for the year. And that’ll be up about 10% over for the full year, year over year. So I think when we think about it over the course of the year on the net new, that’s kind of how we’re expecting the full year to shake out.
Nehal Chokshi: Right. I guess what I’m trying to drive at is that I think that adds up to about $46 million net new ARR for remainder of three quarters compared to $42 million in the comparable year ago period. So that’s up about 10% year-over-year, is that and yet you just did 30% and so the question here is that what’s behind what appears to be a deceleration in the net new ARR that you’re expecting?
Tianyi Jiang: Well, I think there’s a couple factors. I wouldn’t say it’s deceleration, but if you think about Q1 last year, Nehal, when we were sitting here, we had a relatively low Q1 last year. It’s definitely the weakest part of last year and it’s definitely a comp that we’re comparing against. So we’re pleased with the growth at 29%, but it’s also coming off a weak Q1 in particular. So again, we’re pleased with the guidance that we have out there. I wouldn’t call it a deceleration. We had strong performance in Q2 through Q4 of last year and again, I think on that net incremental ARR, we feel good about that and that gets us to our annual target of that 21%, which again, for the year we’re focused on achieving that growth rate and feel good about that guidance we have out there.
Nehal Chokshi: Great. Yes and by the way, 10% incremental ARR growth for the remainder of years. Nothing required. That’s very good by itself anyhow. TJ, thanks for the customer examples, and especially the concrete example around how Opus is helping customers be get their data Gen Ai ready. Can you give us a sense as to what is the ARPU ad as customers look at leveraging AvePoint capabilities with respect to getting their data Gen Ai ready?
Tianyi Jiang: Hi. Nehal, that’s a great question. As we mentioned earlier, there’s still a ton of experimentation happening. I think you probably also hear from other hyperscalers the expectation for a real revenue evidence monetization will really happen probably in 2025. This year, it’s really because a lot of I was just recently at Microsoft Redmond headquarters around executive debriefing, a lot of the challenge with AI deployment is it’s actually a change management. It has to drive on business owners business c levels versus just the IT conversation. So still a ton of experimentation and making sure that there’s solid concrete business ROI before folks are willing to really deploy this enterprise wide, really deploy massive amount of budget towards it.
So it’s experimentation phase. We see a ton of that and that adds obviously to the number of increases of conversations and opportunities in the pipeline, but I would say the real dollar value, we won’t see it most likely until next year.
Operator: Thank you. And the next question comes from Jason Ader with William Blair.
Jason Ader: Yeah, thank you. Good afternoon, guys. I wanted to ask about multiproduct, multisuite customers. I know that you’ve talked a little bit about that. I don’t know if you have specific metrics for us, but maybe you can just talk to any momentum there. And then beyond that, if you could build upon that and just maybe talk about the relative growth rates of each of your three suites and any color commentary on what is happening within each of those product suites.
Tianyi Jiang: Yeah, so maybe the first part of that question, I think we provide the suites and the kind of multiple products and multiple suites within the customer. I think with that metric we’re providing annually, but I will say that, Jason, in terms of what we saw in Q2, we did see some, again, very nice growth from the existing customer base. Most of the upselling that we see, or the sales to existing customers is not so much more of the same product, but it is cross-sell motion. So we had a very strong quarter in Q2 in terms of where that landed. In terms of our annual disclosure around products, we’ve got about 50% of our customers that are on two or more products and about 24% that are four-plus products. And then when we talk about and suites, it’s roughly about 25% of our customers on two plus suites.
That’s that annual metric that we’re providing. We’ll again provide that next year. But again, we saw a nice progression in upsells in Q1 and that led to that NRR of 110%, which was again a very strong quarter for us.
Jason Ader: Got you and then just the rank order of the growth rates by suite and then color commentary, maybe? Love to hear TJ talk to the just the kind of dynamics in each of those three suites and what’s going really well.
Tianyi Jiang: Yeah, so overall the upsell, we’re very pleased with that. We saw a 25% increase in upsell deals in Q1 compared to this time last year, and also deals over 100,000, we saw a 40% increase compared to this time last year. Now, in terms of suites, as I mentioned earlier, it’s really the control suite that really focus on information management and access control. That’s the most active. Again in terms of dollar value, though, we are seeing again smaller deployments because we do by subscription and C-count marrying that of Microsoft’s licensing model for their cloud. So because of that, experimentation across accounts are still focused on smaller focus groups, business leaders, to roll out Gen AI capabilities. So there’s definitely that happening.
