Yes. And so I feel good about it, but I would say, we have to invest dollars on the GTM next year to take it to a much broader market here in North America and take it aggressively. The third thing was, ability to sell JUMP front office along with Clearwater platform — along with the Clearwater platform. And so that is very promising. So we — I think we announced a deal in the last quarter and a number of customers want that optionality from us is that you do our accounting already once you do the front office and the middle office. So we feel good about it. Is there more work there? Yes, there is. As you get to the U.S. and you sort of are trying to integrate them, I think, there is some work there. And finally, the last one was our ability to sell Unit Linked Funds.
Really impressive, it’s really impressive. Just the technology and the reception in the market in Europe has been really high quality. So I would say at this point, I am happy with the progress we are making. Have we seen the benefits we want from this? Not quite yet. Is there more investment to go in the American market? Yes. In North America, that is true. Is there much more in Europe? Not really. So that’s how I would sum it. I think we are happy with the progress, but there is work to do.
Peter Heckmann: Okay. Okay. That’s helpful. I appreciate. I will get back in the queue.
Sandeep Sahai: Thank you so much.
Operator: Thank you. We now have Gabriela Borges of Goldman Sachs.
Gabriela Borges: Good afternoon. Thank you. Jim, I wanted to follow up on the earlier question on the demand environment, recognizing that it’s too early for 2024 guidance. In the past, you have given some helpful color on how bookings momentum today can help you predict revenue. T plus one, T plus two quarters out. So with that context, are you seeing anything interesting in the bookings environment that would lead you to think that you can accelerate revenue organically into 2024? How does the environment compare to, let’s say, this time last year, as you think about the puts and takes to budget, planning and revenue guidance for 2024? Thank you.
Jim Cox: Thanks, Gabriela. So I think we feel very strong, and if you look at the last couple of quarters and the momentum that we have seen there, I think that would align. And just you heard the commentary that Sandeep provided. We feel really optimistic about the opportunities in 2024. Now, Q4 is a very big quarter and we want to deliver on that, and we are really excited about the pipe and the opportunities that are there. But as Sandeep always likes to say, we have a lot of work to do and I think we feel very confident about kind of the durability and the reliability of this growth across all of these markets and see a lot of momentum.
Gabriela Borges: Good stuff. And my follow-up…
Sandeep Sahai: The other thing just compared to 2022…
Gabriela Borges: Yeah. Please.
Sandeep Sahai: Yeah. If you look at 2022, clearly, it’s much better than that. The demand environment right now, if we just compare it to 2022, clearly it is much better than that. Does it mean that we all super satisfied about it? No. Was the booking in quarter three sort of what we expected? Absolutely. Was it a little bit better? A little bit. But was it meaningfully better? No, it is not. So I think it is what we expected and Q4 is another quarter. We continue to monitor it. We obviously listen to other analysts calls and we also listen to what our competitors are saying. So we look pretty aggressively at how people are doing. But I do think if we just talk about our pipeline and you look at our pipeline growth, it is at the highest it’s ever been. So I don’t feel worried about our pipeline. Obviously, our job is to sort of convert them with the right frequency and urgency.
Gabriela Borges: Thank you for the call. My follow-up is on the replacement cycle dynamic in your market. As you think about the factors that drive replacement cycles, some of them are within your control and some of them are not. So maybe just remind us what are the one or two or three biggest factors within your control that allow you to catalyze a replacement when you have a sales executive engaging with the customer? Thank you.
Sandeep Sahai: Yeah. I think that, if you think about it a little bit narrowly, like replacement of an accounting engine, I think you will get the wrong answer. So I think if you think about the asset management industry, for example. If you think about Clearwater as someone who goes in and replaces an accounting engine and therefore the replacement cycle, then I think it’s a very different answer. But we don’t do that. Most of our win and our growth over the last year and a half has been on helping our asset managers grow faster. So there’s a big difference. Is that in replacement? No, it is not. What we are doing is we are helping clients get better client reporting, get better analytics, and therefore, driving more AUM to them.
We are helping them win mandates that drives more AUM to them. How are we helping them win mandate? Much better reporting. A comprehensive view versus the old Excel view. So I feel like replacement cycle, of course we concern ourselves with replacing when the opportunity arises. But I don’t think we wait for that. I do think if you went to the asset management industry and said, what’s your problem? Two things I need to find ways to grow my AUM, number one. And number two, I need to manage costs and become more efficient. We solve both of those, not necessarily only by replacing their accounting engine, right? So that’s one. I think the same thing on the asset owner side. If you look at the asset owner side, there is a cycle of replacement which we are.
If they get to that stage, we win a very large portion of the time. We would win 80% of the time we write this proposal here. But we don’t wait for it. So what is their pain point? Well, the pain point is alternative assets. And therefore you have seen us talk nonstop about our investments in LPx and then we backed it up with LPx Clarity. Then went into MLx. So I don’t think we look at the market and say, okay, what is the replacement cycle, what’s the JUMP balls, and therefore, what can I get? Because that’s something which we can catalyze a little bit, but we can’t control. But can we control identifying the right pain points our clients have and going out and addressing that aggressively? Yes. And that’s what leads to growth.
It’s not like the replacement cycle has become better and therefore we are growing. We just don’t think like that.
Gabriela Borges: That makes sense. Thank you.
Sandeep Sahai: Thank you.
Operator: You now have Dylan Becker of William Blair. Your line is open.
Dylan Becker: Hey guys. Nice job here. And maybe, Sandeep, kind of just digging into the customer conference here, right? I know we have kind of highlighted the intend integration now having kind of the front and back office solutions. But maybe a big takeaway we kind of came away from the conference was around that insights, opportunity, and obviously, AI and automation have been at the forefront here. But what are you hearing and seeing from customers? What were your big takeaways around the ability to drive kind of that level of intelligence through that connected platform, seems like obviously a big driver of kind of what the NRR opportunity ends up looking like, but we would love to hear kind of what you heard from the event?
