Pat Walravens: Okay. Great. Thank you.
Operator: One moment for your next question. The next question comes from the line of Alex Sklar from Raymond James. Alex, please go ahead.
Unidentified Analyst: Hi. Thanks for taking the question. This is John Masin [ph] on for Alex. I wanted to start with product innovation. Therese you have several big product road map launches in 2024, accounting Studio, the financial close, Central Command, the Journal risk analyzer just name a few. It’s a two-part question here. Of the new products you’re rolling out which do you think is the most potential to play the biggest swing factor to drive more near- term adoption? And if the answer is different what are you most excited for long-term?
Therese Tucker: Okay. Well there’s actually – yes you’re right about the innovation road map. It’s really been a focus of mine over the last year. And it’s not just the accounting studio or the Journals Risk Analyzer, it’s also the new combined version of the intercompany financial management product. And there’s a lot of other things that we’re doing as well in terms of FRA and consolidation. So it’s sort of like asking me which one is my favorite child John. I think probably the one that I’m the most excited about right now, so it could change next week is probably the accounting studio. Okay. The ability to visually orchestrate all of the different processes that are going on inside of the office of the CFO is pretty exciting.
And the visibility that you get into where the roadblocks are or how ridiculously complicated sometimes people make things is pretty game changing. Okay. Expanding that so it includes our library of process transformations so that people can get real transformation in a very, very tangible results-driven way is pretty cool, because I’m very much about let’s show the value. And so I think that one probably has the most show the value factor to it. Although, the Journals Risk Analyzer is also pretty cool because today auditors are asking for a full set of manual journals in order to run analytics on those and being able to get ahead of that game ahead of time where the anomalies are, where the key trends are, where the out of policy violations are.
That’s also a level of visibility that people don’t have today. So those are probably my top two. But if you give me another 10 minutes I can stole the virtues of the others
Unidentified Analyst: Appreciate the colors. Thanks. Thank you I appreciate the color there.
Operator: The next question comes from the line of Ryan Krieger from Wolfe Research. Ryan, please go ahead..
Ryan Krieger: Hey, guys. Thanks for taking me in here at the end. Just two quick ones for me. On the customer side, if we look at the $1 million cohort, it’s a little surprising to see that number actually go down this quarter. So anything to call out there? And then on the gross retention side, can you just break down how gross retention shook out from an enterprise or just mid-market perspective and maybe how that compared to last quarter or the last couple of quarters? Thanks.
Mark Partin: Yeah. Thank you. On that number that you mentioned, we had a fairly material impact on ARR in Q1 related to FX impact. And so as a result you see a number of the over $1 million customers slide back as a result of that FX calculation. Otherwise, it was flat on a year-over-year basis. On your second question you might need to repeat that for us. We’ve had — we’re having some technical difficulties. It looks like on both sides. Go ahead sorry just better off you repeat it.
Ryan Krieger: Yeah. And just on the gross retention side, if we look at the number, how did it break down on an enterprise versus mid-market basis? And how did that compare to the last quarter or the last couple of quarters?
Mark Partin: Thank you. Yeah. Mid-market is hanging in the low-90s. And that’s pretty typical for us. It even ticked up a little bit in Q1. Where we saw a bit of a step back is on the enterprise side, in Q1 and we’ve talked a little bit about those in the prepared remarks that had hit us in Q4 and Q1.
Ryan Krieger: Thank you.
Operator: One moment for our final question. The last question comes from the line of Matt VanVliet from BTIG. Matt, please go ahead.
Matt VanVliet: Yeah. Thanks for taking my question here. Just to be quick, I guess, as you’re looking at the headcount over the next year plus here now that you’ve backfilled a lot of the open senior positions. What is the general headcount? And how should we think about opportunities in go-to-market to either add headcount or add sort of sales support to improve efficiency and productivity there?
Mark Partin: Thank you. Yeah. Where we are today, we feel we’ve got really strong an adequate sales capacity for not just where the market demand is today and coming out of the first part of this year, but well into the second half. So we don’t expect to have to hire or build a lot of QCR capacity. In fact, we have one of the most tenured and ramped, rep forces we’ve ever had and we find that to be a competitive and differentiated strategy as we’re in the market with some of these great new innovative projects. So we’re really proud of that team. And expect to get productivity, as we move through this year. With the remainder of the company, our goal at least in the near-term and to hit our midterm target model is to continue to grow different areas of the company keep our pedal on the metal or metal on the pedal in the R&D, as we invest in some of the initiatives that Therese was talking about and you see that already in the numbers.
And then, as we move forward, we’ll work to drive continued operating leverage in other aspects of the business. And we’ve talked about where some of those are including not just our cloud and our data centers, but in G&A as well.
Matt VanVliet: All right. Great. Thank you.
Operator: That does conclude the Q&A portion. I would now like to hand the call back over to, Owen Ryan.
Owen Ryan: Thank you, operator, and thank you everyone for joining the call today. We appreciate your questions and following us as a company. We look forward to talking to you soon. Have a great rest of the day. Take care. Thank you. Bye-bye.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
