That obviously makes us more efficient. And the second one is when they ask a question, can Gen AI sort of propose a response to our client service rep. We said, this is a fully comprehensive response, and the client service rep reviews it and feels it’s the right one, they can click it, so much more efficient. So the case for helping us improve gross margin is very clear, frankly going a whole lot faster than we thought. That you have started to see a little bit on the P&L itself. The second one is this quick suite of products with applicability across various personas in various industries that you haven’t started to see though, in the sense that they are being built so that we can drive revenue from them. So right now, they are very much in the client design stage, which means we have got client partners who are helping us design this product and bring value from it.
So that I would say is still several quarters out of being able to say meaningful improvement in revenue. So I think if you remember, Jim spoke about six products, didn’t mention Quick because of that. It is a big area of investment for revenue growth also, it’s just that it is not getting traction from a revenue point of view today. Do we expect that at three and four quarters? Absolutely. But do we expect that in Q2 and Q3? We don’t. So that just gives you a wholesome response if that makes sense.
David Unger: Appreciate that detail. Thank you.
Operator: Our next question today is from the line of Brian Schwartz of Oppenheimer. Please go ahead. Your line is open.
Ari Friedman: This is Ari Friedman fitting in for Brian Schwartz. I was wondering like with the Wilshire transaction, could you talk a little bit more about the customer profile that you’re kind of getting from the Wilshire Advisors? Are they similar to the clients that you guys already have? Are they a little bit different? Is there a good opportunity there to tell them on like more of the Clearwater platform products? Thanks.
Jim Cox: Thanks Ari, this is Jim. So, that is one of the very interesting attributes obviously the most interesting elements are those models time tested and stress tested over time to really benefit us there. But less than 20% of their clients are also Clearwater clients. So to your point, we have initiatives to how do we cross-sell Clearwater to their clients and how do we then obviously cross-sell those Wilshire solutions into our clients once those integrations are done.
Sandeep Sahai: Yes, I think — also the interesting part here is when you think about risk models and performance models, they’re used by asset owners. So asset owners may use them for exactly that performance and attribution, but they may also use it for regulatory reporting. So we feel like this could be taken to a wide swath of Clearwater clients, same thing with risk. Risk obviously is used pretty extensively across the entire universe of clients. So we feel like there’s strong applicability of these models to the Clearwater client base. But we also think that we could take the Clearwater platform and sell it to the current clients of Wilshire analytics. So we think there is a potential to do both. But what we expect to do is, not expect, we have already merged both these two businesses and coming out with one comprehensive reporting around risk performance and attribution. So we feel like we have a real strong proposition for our clients here.
Ari Friedman: Thank you.
Jim Cox: Thank you.
Operator: Our next question today is from the line of Alexei Gogolev of JPMorgan. Please go ahead. Your line is open.
Eleanor Smith: This is Eleanor Smith on Alexei’s team calling in. Thanks for taking our question. So first, Jim, I know you’ve said many times before that NRR will fluctuate quarter-to-quarter, but I was wondering if there was anything to call out for that 110%?
Jim Cox: Sorry, Eleanor. I’m so excited about it, I’m all choked up. Sorry. So number one, obviously, we always have tremendous — we always have tremendous gross revenue retention at 98%, but we got an additional one, additional percent to 99%, the best ever and really terrific there. So that helped on the margin. Secondly, we saw a nice up-tick of the cross-sell of those solutions that we were discussing. I think I mentioned earlier, it was about 25% of our bookings in the quarter. Now, not all of that is reflected in the NRR because we have to onboard and get those assets flowing, but that was another important piece. And then the third element is, as we have always historically done, we’ve grown as our clients have grown.
And so we were able to help with the additional asset expansion as well. And the last thing I would say is, we were not hurt with the market changes at our client base. And over the last few years, we certainly weren’t helped dramatically by that, but we weren’t hurt, which was helpful as well.
Eleanor Smith: Very clear, thanks so much for that, Jim. And Sandeep, maybe for you. So earlier, Jim had mentioned that you have enough cash on hand for additional tokens. How are you thinking about your decision framework moving forward about when you buy versus organically build new technology?
Sandeep Sahai: Yes, thank you for that. So as you know, we haven’t done this programmatically and systematically, but we did announce two really senior executives we’ve brought in the company to do this on a more systematic way. And so when you think about how we look at these things, first, remember, the bar is always really high because we don’t want to go mess up really clean business model that we have. But would we do it in the service of improving TAM? Yes. Would we do it in the service of improving geography coverage? Yes. Would we do it in the service of improving 1 bps bit to 4 bps? Yes. So I don’t think we have changed anything here, but we just expect to become more programmatic about it. So I think you should expect us to do, is that two tuck-ins in a year or whatever that number is, but do it in the service of what our clients want.
And the basis of it is we have a really satisfied client base. You’re really high NPS. So they would like us to do more. And so we have to, I feel our job is to go find out what causes them the most pain and can we develop things to go solve that. Now, our first instinct, unfortunately, is always to build it. But sometimes we recognize also that building it will take too long. And when that occurs, then we tell the M&A team, you’ve got to go find something. And the problem is often you can’t find things which sort of fit nicely. So we don’t want to just do deals because we wanted to do deals, but we do expect programmatically to do such talking deals.
Eleanor Smith: Very clear. Thank you so much.
Sandeep Sahai: Thank you.
