They use Insights — our Insights product to understand the rebate opportunities in their supplier agreements. That’s a great example of really extracting business value beyond just being more efficient in how you manage your agreements. So overall, we’re very bullish on the category long term. We think it does need to be reimagined and we intend to lead that.
Josh Baer: Great. Just a real quick one for Cynthia. Professional services revenue, I think, was a record this quarter. Anything to call out for the strength and upside there?
Cynthia Gaylor: Yes. So, in that professional services and other category, we do still have some on-prem software that’s part of the legacy product suite. And so, there was a Q2 deal that fell into Q1. So again, it’s really the timing of deals. And so that was an on-prem deal that led to that upside in the PS and another line.
Josh Baer: Okay. Thank you, Cynthia. Congrats and good luck.
Cynthia Gaylor: Thank you, Josh.
Operator: Thank you. Our next question comes from Jake Roberge with William Blair. Please proceed with your question.
Jake Roberge: Hey, thanks for taking my questions. You talked a lot about the product-led growth initiatives that you started to put in place. But just thinking about the other end of the spectrum with your direct sales motion, now that Steve has been in the seat for a little over a year, are there any new opportunities that he’s looking into for that direct motion? I know you talked a little bit about partners international, but you’re still kind of in those eight direct field territories internationally. So just curious if there’s any updates on the direct side.
Allan Thygesen: Yes. I mean that continues to be the vast majority of our business, and I don’t see that changing in a very long time. I think Steve has now the team fully in place. They’ve all ramped, and just a new level of professionalism and maturity there. And we are working to augment their capabilities in every area. So, whether it’s our marketing, our training efforts, our bundling, I think we have opportunities in every area to become a better enterprise sales software company, and Steve is helping us move in that direction. So that is — continues to be critically important for the company. I think we’re making good progress there. And as we ship more product, we have, I think, a sales channel that’s very ready and able to capitalize on that.
Jake Roberge: Great. And then just digging a little deeper into generative AI. Opportunity seems pretty interesting with your agreement models and then just the ability to better utilize all the data within your contracts. I’m curious how you’re thinking about maybe your monetization plans for the tech. And then, I know it’s still early days, but is that something that could start showing up early next year or is that still too early there?
Allan Thygesen: Yes. As I alluded to earlier, I do think relative to just execution on our agreement workflow roadmap and PLG, it’s a little further out in terms of impact. In terms of monetization, I expect AI features to be both bundled as part of our baseline products, strengthening their functionality and value, as I suggested earlier. And in some cases, packaged as a separately charged add-on. We do both today. So if you take our Insights product, which is really our AI-driven analytics product for CLM, we both have a stand-alone SKU. It’s sold separately as well as a premium bundle. I think we’re going to need to learn a little bit more about how customers want to use this and what the key value drivers are before we finalize how we price the different features, but certainly mindful of wanting to capture the — deliver the most value and capture the most value for DocuSign as we price it.
