Mike Jackowski: It does, Saket, and I’ll be thrilled to talk about it. I’ve always talked about our strategy is a land-and-expand strategy. And beyond just the core solutions, we have been looking for opportunities to expand in strategic solutions for carriers where they have a complex business problem to solve. And it’s still a very sticky asset. It can run standalone but it also works by being highly integrated to the core so that we can have a strong attach rate. And in the case of Distribution Management, what this does is help insurers manage their overall distribution channel how to market to and identify new agents and brokers, how to appoint them and onboard them, how to do the contracting with them. And then once you get them onboarded — and doing the contracting with them, there’s also an appointment process through the regulatory bodies that we’ll go manage as well.
But once that they’re contracted, we also have to manage your commission payments. And then also, you have to have this ongoing management and looking at their performance and data behind how your channel is performing. So, it’s really an asset that helps carriers really take one of their most strategic assets in the channel partners and manage it effectively. And then on the reinsurance side, this is an asset that we sought out because we know that reinsurance, just given the fact that insurers are trying to manage risk more effectively, trying to manage capital more effectively, so we’re seeing a growing need of more complex reinsurance contracts as they’re trying to manage their risks. And as somebody in the industry once told me, insurance runs on reinsurance.
So, we sought the asset out over from Ephesoft, and it was a great acquisition for us, and we can see the momentum already because insurers have a lot of manual processes in managing their reinsurance. And we’re seeing some really nice take-up, and I’m thrilled with the wins that we had in the quarter.
Saket Kalia: Got it, got it. That makes a lot of sense.
Mike Jackowski: Hey Saket, then the final question on integrating with our competitors. That’s what we love is these assets, they stand alone and they’re engineered to stand alone. Now, we’re integrating them tightly with Duck Creek, but we’re also finding because many of our competitors don’t have these assets, it’s a great way for us to land in there, build a relationship. Now, we’re a part of the carrier’s fabric, we’re in the halls and then we have a better opportunity to expand other assets as well. So, we think it’s a nice way to penetrate into the accounts where some of our competitors already exist.
Saket Kalia: Got it. That makes a lot of sense. Kevin, maybe for my follow-up for you. I was wondering if you could just talk about how much maintenance to SaaS conversions contributed this quarter to net new ARR. And either qualitatively or quantitatively, maybe how you think about the pipeline of that — of those conversion opportunities through this year.
Kevin Rhodes: Yes, Saket, happy to. Let me cover the pipeline first and then I’ll go back to the quarter. First, we’re seeing tremendous energy and interest from our on-prem customers. As we talk to them about our road maps, as we talk about the opportunity to go into the cloud, there’s a lot of excitement about that. So, that’s good. In the quarter, we had what I call a couple of meaningful ones, one that we didn’t talk about, one that we did talk about. I don’t want to break down exactly the amount, but I would just say that they were meaningful in the quarter. And you can see that a little bit within net dollar retention. Well, I’ll just remind everybody that migrations typically are not net dollar retention but they are in ARR.
And so, when we look at ARR, that obviously includes everything, all deals done and that was an exciting part of our quarter and ARR is getting a couple of these migrations in. So we’re continuing to see strong interest there, and we’re tracking with our expectations.
Saket Kalia: Got it. And Kevin, I’m so sorry, if I could just slip in one just based on that comment just on not being included in the NDR. Generally speaking, not just for the quarter but generally speaking, what’s sort of the multiplier, right, on a SaaS contract versus maintenance that maybe you’ve seen historically?
Kevin Rhodes: Sure, Saket. I mean, it depends on each customer. And remember, there are some of these customers that are on term-based licenses. Some are paying for the original license and some are on maintenance contracts where they paid for a perpetual license historically. But let me just state, on average across the board, roughly about 2.5 to 3 times is what we’re seeing a customer uptick, if you will, on a gross basis, meaning how much we have already a maintenance would say, it’s $1 million would be 2.5 to 3 times that on the new deal.
Operator: Our next question comes from the line of Parker Lane of Stifel.
