So we are excited about it. We are excited about what that potential opportunities that open for us.
Michael Infante: That’s great. Thank you both.
Jim Cox: Thank you.
Operator: We now have Michael Turrin of Wells Fargo.
David Unger: Great. Thanks very much. Hey. It’s David Unger for Michael Turrin tonight. Just one from me, so this is a refreshing call and software land today for sure. I know we have kind of touched upon this, but can you guys talk more broadly on the demand environment for the industry? Just talking about proving out the ROI in a more constrained budget environment. And guys, just maybe going back to that beautiful slide you had in the Investor Day, the 4 bps of tech investment management spent and referenced versus just playing the 1 bp today? Thanks.
Sandeep Sahai: So, yes, I could just talk about that specifically, if you think about how we go from the 1 bp to the 3 bps to the 4 bps, pardon me, and you think about what is incorporated in that. And so we think of that as risk, as performance and middle office, and really components that complete the investment cycle instead of just investment accounting. And so when Jim was talking about investing in new products and ideas, it is about that. It’s in service of expanding that 1 bp into the 4 bp. Now, I just want to make sure you understand, we already do risk, we already do performance, we already do these things, but what we are building is displacement quality software where a standalone client may be able to buy risk from us directly just for that capability.
So that’s the difference. We have focused always on what’s needed for investment accounting, and our aspiration, as we said at Investor Day, is to move towards the investment management process the whole lifecycle. So that’s how we think about it. I don’t know, Jim, you would add anything to that or not? We obviously have the whole section around back to base, which is about products you can take to a current client base, and that is obviously more important, if you will, because that helps us grow faster and finally disruptors. So nothing has changed in the last seven weeks. We still believe that, hey, it’s back to base, it’s adjacencies, which is the 1 bp to 4 bp, and finally, it is the disruptor products we can come up with.
Jim Cox: Yeah. Sandeep that’s right on.
Sandeep Sahai: Yeah.
Jim Cox: That the only thing I’d add. I think you were also asking, hey, what’s the overall demand environment like vis-à-vis what you are hearing from perhaps other software companies? And I would say, we are in a replacement market. And what you heard from Sandeep in his prepared remarks was example after example, after example of where we are meaningfully, better and different, and there is pain out there and it is a known market. And so I think that’s why we see such resiliency in the demand that we see is that pain is not getting any less. And the more examples we have of solving that pain, the more likely it is that more clients will recommend us to their friends who will become our prospects and we move forward from that.
David Unger: Thank you.
Operator: We now have Peter Heckmann of D.A. Davidson. Your line is now open, Peter.
Peter Heckmann: Hey. Good afternoon. Thanks for taking the question. I wanted to see if you could talk about some of the competitive response you might be seeing in the marketplace. I really appreciated some of the examples you gave of long implementation cycles, some failed into out migrations. But in terms of, do you see some of those legacy competitors mounting a competitive response? If so, what is it? And do you think that can be successful at all in helping them retain some of that business?
Sandeep Sahai: Peter, thank you. Thanks for the question. This is — I wish I had prompted you with this question. But look, Q3 was very exciting. I think when we spoke about a year back, a year and a half back, there was a lot of conversation about competitors launching cloud versions of their product. And I think if you go back and see, listen to what we said, we said, yes, but that doesn’t change the underlying technology or the inability of the various pieces and components of working together like our software does, right? And in Q3 we really got many several million dollar deals to actually prove that point. And so the first one that we talked about was cloud version of a product, been two years, been implementing it, haven’t had success and you talk to the client and they are saying, hey, we have to talk to five different groups.
Yeah, because there are five different products behind it and Clearwater is one integrated product. So you won that. We won another one where there was a promise of a product two years back. So look, we feel really good about it. We feel a little bit validated in what we have been saying. And obviously, all of you understand technology. Well, it’s not quite that easy. You can just take pieces of a technology and re-architect all of them and make them all work with each other. Clearwater on the other hand, our platform was built ground up to work end-to-end seamlessly. So look, we feel like our competitive position, if anything, is a little bit stronger and I do think as we get more proof points, it becomes easier for us to go to our prospects, and say, don’t talk to us.
Why don’t you go talk to these five clients and see what they have to say? So we feel really good about where we are right now. But as I am sure you heard from us right now, we are not resting. It’s not like we are saying we are going to stop innovating. We are going to stop investing in R&D. None of that. We expect to continue to innovate and continue to deepen our competitive mode. Jim, would you add anything to that?
Jim Cox: No.
Peter Heckmann: That’s great to hear. That’s very helpful. And just in terms of JUMP, just following up on there, I guess, versus your expectations when you announce the deal, I guess, how — and you — I know you have announced several deals in several different countries. But generally, how would you characterize the response from either current customers or non-JUMP, non-Clearwater customers in other markets, in terms of the feature functionality of the software, I guess, today are you thinking you need a little bit more investment or perhaps there’s a little bit more feature functionality than you thought?
Sandeep Sahai: Yeah. Sure. So I can literally give you the report card on the JUMP integration. So, look, the first was, JUMP ability to compete in the French market against largest players. So there were a lot of large players who would not buy from JUMP because they were much smaller company. So that’s clear, net positive. There’s no confusion there. We are seeing more momentum in the French market. The second one was ability to sell front-to-back in North America. We have seen several early wins, but I do think we need to invest more in the GTM in the coming year to take those proof points and then take it across the market. So is that all proven out, is that all? No. Are the early wins exactly the kind of wins we wanted to get?
