We had some then, some real specific great execution by the team that I’m pleased about but I do expect us to be off the lows we saw mid last year. I don’t expect us to be going back there. So I leave the Q4 number, extremely pleased with that and expecting improvement from where we were obviously Q2 and Q3 last year to continue.
Unidentified Analyst: Got it. And then secondly, is there any specific product in the portfolio you want to call out that kind of led to growth in the quarter, or was it just general excitement in the CEM portfolio?
David Wagner: Yes, the one that bubbled up and when I gave those top five existing and top five new, the digital resilience had a strong performance in the quarter and so I was pleased by that. But the overall CEM portfolio and that broader need of our customers to digitize enterprise resilience, that’s the core driver. But I, you know, inside the portfolio, I was pleased with the digital resilience especially on the new win side the quarter.
Unidentified Analyst: Terrific. Thank you very much.
Operator: Our next question will come from Mike Latimore with Northland Capital Markets. You may now go ahead.
Michael Latimore: All right, great. Thanks, yeah. In terms of the CEM deals, I think you may have given this, but how many came from new versus existing customers? And then, what does the pipeline look like for CEM kind of new versus existing?
David Wagner: We, we don’t break it new versus existing. I did give a kind of a little lean back towards Terry’s question on the 10 that moved from RC 9 to CEM to those migrations. So we’re being real intentional. If you remember the wheel from Investor Day, that second quadrant, so we now have the 307 existing which is great. And then that next cohort being those migrations, but still down on that lower left-hand side, new customers are important. We had two of our top-five size wins in the quarter were CEM wins. I think that’s good. Obviously the perpetual deals are going to tend to be the bigger deals that we’ll be calling out in the top-five. But we had some nice large new customer wins, and of course, that momentum in the hundred — the velocity in that 100K deal range was also a contributor.
Over time at a big average, again, if you remember the Investor Day going around that wheel, we would be expecting two thirds to 80% of the CEMs to be growth of existing, with the remainder coming in through the new customer acquisition. And that will, again, vary quarter-over-quarter, but that’s the high level five-year pattern that we’re expecting.
Michael Latimore: Yes okay. And then these record CEM deals you know, presumably they get the full reflection and revenue in the first quarter, so does that suggest maybe first quarter ARR growth sequentially could be as good as what you saw in the fourth quarter?
David Wagner: I want to make sure I have that. So that the CEM deals, they do get deployed relatively quickly and so they do go into the ARR snowball and do begin to amortize out relatively quickly. And it’s perpetual deals that can have, the Norway one was a really strong example where we closed in September and had it fully implemented by December, but that’s, it’s probably more, that’s kind of the exception, not the rule, it’s more 180 days on those perpetuals. So yes, the — you guys have all been around SaaS businesses a long time. You know, the CEM ones are going to go into ARR and the ARR is going to come out into revenue with very little delay.
