Allan Thygesen: Yes. I mean what I would say overall is — I mean there’s no question that compared to three, four years ago, category is more competitive, especially in basic use cases. And so the overall market softens. That said, our win rates are relatively stable. We are — remained a clear market leader. I think everybody else prices off us. We have, I think, a very strong value proposition in the resulting premium. I mean, customers value the convenience and trust that we have, the higher signed rates, the higher — the faster time to sign as well as a variety of enterprise-grade capabilities, integrations, security, privacy, et cetera. So, I’d say the price environment continues to be highly competitive, and we think we’re the market leader, and we try to make sure we’re paid for that, but we also don’t want to lose business unnecessarily.
So, we’re trying to be more agile in that regard in larger enterprise deals where there may be a blend of both. Over time, as we layer in a lot of the functionality I’ve talked about, we’re hopeful that we can bring greater value to our clients. And that will allow us to overall increase our dollar footprint within — with our enterprise and mid-market customers.
Rob Owens: Great. Thank you very much.
Operator: Thank you. Our next question comes from Josh Baer with Morgan Stanley. Please proceed with your question.
Josh Baer: Thanks for the question and congrats on a good quarter. One for Allan, one for Cynthia. On CLM and Agreement Cloud, it’s clear you’re in a strong position to really leverage AI, and you talked about some of the ways that you’re going to do that to improve your solutions and add more value. I guess I’m wondering how would you gauge customer interest and timing of that interest? Like, does the opportunity get pushed out at all? Are customers needing to reevaluate CLM in the context of AI and take time? Are there enterprise customers that are thinking about doing it in-house? If you could talk about some of that, like the time to realize the value unlock, or are you seeing near-term momentum?
Allan Thygesen: Yes, that was a lot of questions. I think first thing I’d say is there’s definitely strong customer interest in the category and the features and functionality, we see lots of inbound inquiries, we have some of our large SI partners who are making significant investments in their CLM practices. So the overall demand environment, I think, is robust. And I don’t think we’ve really seen any slowdown or hesitation because of AI. If anything, people’s expectations have just been raised on what’s possible. At the same time, CLM definitely skews more enterprise. It does have longer time to value. It’s therefore, more impacted by macro and cautious customer behavior, fuel cycles get longer and so on. So those two things are pulling in opposite direction.
Overall, I would say CLM, we believe it has great potential, but it also hasn’t quite fulfilled its promise yet, right? It’s been too custom, too services heavy, too long time to value. We really want to reimagine the category to be software-first with quick time to value, delightful workflow across all the functions that use it and exceptional out-of-the-box analytics and insights driven by AI. And we are engaging with leading companies across a number of industries. So, we’re seeing people reimagine how their legal departments operate, whether it’s for risk assessment or compliance or extracting business value. One that I particularly like is we work with a lot of pharma and biotech clients. They use CLM to quickly analyze and assess their corpus of agreements, that allows them to respond to market events, create efficiencies, mitigate risk.
