So, we’ll be providing many add-ons just like most of our large enterprise customers, the CAGR of the ads and the expansion that they experience with us is tremendous. So, when you look at our dollar-based retention rate and you look at the further upmarket you go, the higher that percentage is just because they tend to buy everything on the truck, so to speak.
Jim Fish: Thank you.
Dan Burkland: Yeah.
Operator: Our next question will come from Michael Turrin with Wells Fargo.
Michael Turrin: Hey, great. Thanks. Appreciate you taking the question. I think, look, a lot of the questions have been on the initial reaction around the beat and the raise. But if I look at the filings, Barry, the RPO metric is up 45% year-on-year. I think it’s up double digits again sequentially. So, maybe you can just tell us more around your view of the significance of that RPO metric. Is that becoming more valuable as you move upmarket and may be reflective of some of the momentum that you’re highlighting? And maybe you can just help level set considerations we should be making around conversion of bookings to subscription revenue over time as well? Thanks.
Barry Zwarenstein: Yes. Thanks, Michael. So indeed, 13% sequential growth, 46% year-over-year growth, $1 billion in total. The situation there though, Michael, is that, that only captures part of the picture, and a volatile part of the picture. Why? Because it includes only contracts that have more than a year to run. And that’s not all of our business. Now, we’ve always said that the only thing you can really use the RPO concretely for is to see directionally which way it is heading. And the work that Dan and the team have done and the market that they’re going into, makes it really clear that the direction on the new business is up and to the right.
Michael Turrin: Is there anything you can say around just the composition of top types of customers that are showing up in RPO versus what’s the case? So, I just want to get a sense of multiyear today versus what that used to look like historically?
Barry Zwarenstein: Yes. It is so much across the board. I mean, the contact center industry is a horizontal industry. There is some concentration in our business in terms of healthcare, financial services, consumer, but then a whole smorgasbord of other industries below that. Frankly, I don’t have a detailed analysis of that, that I can share, in part because it is not a key management metric for us.
Dan Burkland: And if I may add one thing to that, Michael. Bear in mind, we don’t incent our customers or provide additional discounting for longer contract cycles because we’re so confident in the renewal rates. Our contracts automatically renew each year, every year. So oftentimes, we look and say, “Well, how long is the term of this customer?” And we don’t know, because we’re just — we put the contract in the drawer, and it never gets opened again. It’s an auto renewal. So it’s the beauty, and it’s also one reason why we have a lot of annual one-year contracts, but we have a fair amount of three-year and five-year as well. Mostly, it’s because the customer wants to protect themselves against price increases when they do multiyear.
Michael Turrin: Appreciate the details. Thank you.
Dan Burkland: Yeah.
Operator: Moving on to Matt VanVliet with BTIG.
Matt VanVliet: Hey, good afternoon. Thanks for taking the question. So, I wanted to dig in maybe a little more on the attach rate and contribution on the AI side. So you mentioned 80% of the larger deals. But can you give us any sense for how much of the ARR of those deals is actually sort of tied to these AI features? Presume it’s up year-over-year, but maybe more importantly, where do you think that goes in the next three to five years? Can it be 20% or 30%? Or what’s sort of the upper bound of what people are going to pay for?
