Robbie Owens: All right. Thank you.
Operator: Your next question comes from the line of Roger Boyd of UBS. Your line is open.
Roger Boyd: Great. Congrats on the quarter and again, echo thoughts on your employees and everybody in Israel. I wonder if you could talk about new logos. I think — I apologize if I missed. I don’t think I heard a new logo disclosure, but I think for the past few quarters, you’ve talked about the fact that it’s a tougher environment for that, but that the customers you are landing are — are landing bigger with the platform. It clearly sounds like that was the case in 3Q, but I love any thoughts on how you’re thinking about new logo contribution is maybe around the corner into next year?
Matt Cohen: Yes, sure. So I think we did mention it, but I’ll mention again, which is we did about 230 new logos in the quarter. That is basically flat year-over-year. And as we’ve talked about, I think we are pretty actually excited by that number. We are continuing to be able to land new customers. It’s — remember, we are primarily serving either the enterprise or the upper end of the mid market and we’ve been able to successfully continue to land customers with PAM, increasingly with more than one product, two or more. We’ve landed customers this quarter with EPM and with access, and we see that business for us as really a great feeder system for our future growth, giving our land-and-expand motion. I will also emphasize and I think you hinted at it in the call, we continue to see that the deal size of our new logos is increasing dramatically.
And we actually are up well above our growth rate in terms of the overall size of the contribution of those new logos from a booking perspective. So we think this is a healthy new logo quarter in this environment. Certainly, it does have a little bit of a slower close rate because of the macros, but we are excited by the performance in the queue.
Operator: Your next question comes from the line of Hamza Fodderwala of Morgan Stanley. Your line is open.
Hamza Fodderwala: Hey, everyone. Good morning. And I also want to extend my support to all your families, friends in Israel. Josh, I’ll hope to see you there next year.
Joshua Siegel: Look forward to it.
Hamza Fodderwala: Yes. Matt, maybe a question for you on a more high-level. CISOs are dealing with a lot going into next year, you’ve got a rising threat environment. You’ve got these new SEC rules. Now they can be held personally liable for breaches. I’m curious, as customers think about their budgets for next year, what are you hearing for them? What is the priority level and what are the main concerns from CISOs right now, whether it be related to identity security or just more broadly?
Matt Cohen: Yes, Hamza, I think you captured it well. The job of a CISO is not an easy job. I spend a lot of my time with them. And they’re stressed, impressed beyond belief as they try to figure out how to counter all of the factors that you described, both from the threat environment and from the regulations. I think when we talk, and we are having, again, really genuine, transparent conversations, they’re trying to understand, as always, what are the priorities that are going to have the most amount of impact on risk. And they could do 800 things. So they could do everything that you could imagine, but they have to boil it down to the programs and projects that are going to make sure that they can answer to their Board why they’re more risk reduced this year than the year before and so on.
And when they look at that, they really do inherently understand this concept that all roads lead to identity. And so everything they’re thinking about is about locking down their overall posture around identity, identity security. Now you can do EDR on the endpoint to make sure that you’re able to detect and respond to things that are coming in from the outside, and that’s still a priority for our CISOs and for our customers. But when they’re thinking about what can have the biggest impact, what can reduce risk the most. It’s really their identity projects, which is why we see ourselves be prioritized. And why, as CECLs look towards their next year’s budgets and we have those budget conversations obviously already started, they’re prioritizing our spend into their overall budget plan, and we are talking with them about their road map, not just for the quarter we’re in, but for the year or 2 years ahead.
And it is a journey to lock down identities and cover all identities, human and nonhuman to cover both on-prem and in the cloud. And so we see a road map that materializes over an 18, 24-month period that allows us to continually work with these customers to help protect them and secure them. And so it is actually a great bidirectional conversation that we are having, and we feel like we are at the top of the list.
Operator: Your next question comes from the line of Ittai Kidron of Oppenheimer. Your line is open.
Ittai Kidron: Thanks and I echo everyone’s comments, our thoughts are with you. Matt, Josh, I had a couple of questions. Matt, to you, on the go-to-market side, where is your priority right now? Expansion with existing customers given the massive growth in the portfolio and what you have to offer or going after new customers? Clearly, everyone would have had — would want to have another 100 salespeople running around. But given what you have, how are you reorienting your sales force right now? What is the priority? And for you, Josh, on the financial side, I want to go back to Saket’s comments. Clearly, you’ve done a very good job in keeping up maintenance and the price increases are clearly helping. But we are now getting into, right, the 3-year mark of the real big shift in subscription.
And so I’m kind of wondering if there — there’s a cohort of large customers that were on 3 or perhaps even 5-year contracts with you that are now coming for renewal, is there a risk that they — not a risk, but is there a possibility that they shifted the cloud in a way that creates significant step downs in maintenance as they shift from one tool to another. Help me understand that transition. Why should we keep thinking that maintenance will just keep on slowly gliding down rather than have big step downs? Sorry for the long question.
Matt Cohen: No, no, it’s good questions. And again, thanks for the support. On the go-to-market side, I think the answer is both, and let me now dig into that a little bit. So we believe that the sales team is incredibly well equipped to do the upsell and cross-sell motion. We have deep relationships with our customers. We have the conversations that I was describing in the prior answer. And so our sales team is really empowered to focus most of their feet on the street motion to the cross-sell and upsell motion. At the same time, we’ve invested heavily in our marketing organization in both the demand gen programs, the brand campaigns, the ability to be able to ramp up more SDRs, sales development reps who are doing some of the cold calling and outbound calling.
All of that allows us to use the marketing engine to actually go generate the new logos and actually set up the meetings, get them qualified before we hand them over to the sales force. Then we get a sales team involved and obviously, they can help participate in moving it through the pipe. So we’ve kind of set up this really strong engine where everybody knows their role. Marketing is primarily focused on making sure we drive new logos, building the pipeline for the future, making sure 2024 and 2025 are going to be incredibly successful. And the sales team is out there leveraging their relationships to drive upsell and cross-sell. And then there’s a third dynamic here on the go-to-market perspective, which is our partner organization, which mirrors us in that respect.
And so by driving up our relationships with advisory firms with the MSP providers, with our traditional reselling partners, they’re out there in the market, helping to push not only PAM, which is what we would have said 2 years ago, but the entire identity security story. And by that, we get exponential feet on the street who can drive our go-to-market motion. And so all of that together is really how we’re focused. We continue to layer in capacity to make sure we have enough direct sales capacity. We continue to layer in investment in certification and ramping up partners, and we spend money in marketing. And together, that’s what’s driving our go-to-market engine itself.
