Scott Hill: Yes, so it’s a good question. So I think the way to think about it is within services you have what I’ll call kind of get you up and running in our eDiscovery platform services. And then you have our review services, which leverage our technology. The attach rate of our get you up and running services, our professional services is what we call them, things like ingest and forensics. Those things tend to have a pretty consistent attach rate on our software revenue. I say that, and you could fairly imply that what that means is underneath the covers, revenue is growing in services and down a little bit in review. And that’s an accurate directional conclusion for you to reach. The important thing though is it’s not because review is going to be, I think you use the word a drag on the business overall.
But review has tended historically to be more episodic and it’s tended to correlate much more significantly with larger deals, while our services correlate with our software revenue. It doesn’t matter. Small deal, big deal. The attached rate is more consistent. One of the reasons we broke out the two numbers is we wanted to give our investors a lot more clarity around the underlying strength of the thing that is key to our business, which is the software. But we will absolutely continue to offer our review services to clients who want that, again, tends to be on the larger deals. I think a really important point though, a lot of the costs associated with our review business are variables. There’s very little fixed cost to our business from that.
And so we love the big reviews when they come. We fundamentally believe that we can do them more efficiently leveraging our software. We think it’s an important offering into a very large addressable market. But again, it’s right now the attach rate relates more to the larger deals as we move up the stack, as we develop our sales motion around large laws, or big laws develop our sales motion around corporates. I believe our ability to win those larger deals will improve. And as it does, I think the review attach rate will start to look a little more consistent like our professional services. But as of now, we effectively didn’t want to lean into the year on whether that would or wouldn’t happen quickly. But again, a key point for you to understand, not a lot of fixed, and I mean like $1 million to $2 million of fixed fees around that business.
So not a lot of fixed cost to continue to provide that service where our customers want it.
Koji Ikeda: Thank you, Scott. Thank you for taking the questions.
Operator: Your next question comes from Brent Thill with Jefferies. Please go ahead.
Luv Sodha: Thank you, Scott and Michael, for taking my questions. This is Luv Sodha on for Brent Thil. Wanted to ask one. So obviously, you know dollar retention has declined quite a bit to 92% versus 106% last year. I guess, you know what are the key vectors to drive that back to above 100%? And could you maybe break that down between, say, the volume of cases versus driving up multi-product adoption?
Scott Hill: Yes, look, I think for me, the fact that we’re coming off a 97% software year is the lowest hanging fruit we’ve got. Historically, our DNR has been 115%, 120% in the software business. In order to hit the guide, we’ve got to push that back, to call it 103% to 105% this year, which isn’t the goal. The goal is to get back where we’ve been historically, where we know we can be. But it’s just got to be a modest push. And the way that’s going to happen is a far greater focus on our existing customer base. And that’s why I say that inside that 1441, it’s not one large, everybody’s the same kind of customer. There are a lot of big law customers in there. There are corporates in there, there are mid-market firms in there.
And I think our ability to go and find the right motion in those segments is critically important. And another, I think, really important thing is we went from having a really strong customer success function a couple of years ago to having no customer success function. And Melanie Antoon, and on her team, Justin, the two of them are working well together, have already reestablished that team. And so as I talk about the alignment of go to market in the field, in marketing, sales ops wise, a big part and an important part of that team is the customer success function, the client experience. We’ve got to get back to understanding who our customers are, what their needs are, and looking, as you said, for the opportunity, what’s the next product they could buy from us?
What’s the next case where we should have the opportunity, can they leverage Cecilia’s skills that are in the market. Do they need Case builder to sit across all of their cases? Or one case in particular, the client success rep that we have talking to those customers every week, I think will be critical to that success. And so for me, the fact that we moved from 115% to 120% down to 97% is we frankly took our eye off the ball and the ability to push it back above 100% and back towards historical levels is basic blocking and tackling. And I feel like we’ve taken the right steps. Again, I caution that we’ve just rebuilt that function over the last couple of months and we’re aligning now around our segmentation. But I fundamentally believe as we move through the year, that alignment and that function in particular are going to be critical to our ability to really rebuild or refresh that DNR number.
