They wanted the expertise. So, Franklin Covey, somebody coming in from the outside to facilitate that inside the organization for them. The solution is still great today, but the environment has changed quite substantially in the country around that topic. And that has happened late — started to happen kind of late last year for us and into the first part of this year. And so, as we talked about that service attach rate going down, a portion of that is related to the demand for that particular solution, which we still love the solution. It’s just not quite as in demand. And so that’s driven a bit of that. And we kind of anniversary against that here coming out of Q2, which is why Q1 and Q2 were depressed a bit. Fortunately, because we look at the rest of our portfolio, we don’t really have any other solutions like that.
That was something we built. We weren’t thinking actually we were building it for — we thought we’d just have it as a general offering. We didn’t think it would perform like it performed. And like I said, unfortunately, there were some circumstances that happened that caused that solution to be in quite high demand and now that demand has come back down. The rest of our solutions around leadership development and trust and strategy execution, we think there’s a lot of durability there and great demand for those. So that’s, Nehal, a little bit about why we’re positive about Q3, Q4, and a little bit of an explanation for why Q1, Q2 have been a bit soft and Q4 was a bit soft as well.
Nehal Chokshi: Okay. Great. Thanks. I’ll get back in queue.
Paul Walker: Thanks, Nehal.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Jeff Martin with ROTH MKM. Your line is open.
Jeff Martin: Thanks.
Paul Walker: Hi, Jeff.
Jeff Martin: Good evening, everyone. How are you doing, Paul?
Paul Walker: Great. Good to hear from you.
Jeff Martin: Yeah, likewise. So Paul, I wanted to drill down a little bit. There’s — on Slide 28 of your presentation, there’s a total contract signed figure, $51.6 million. I was curious if you could give a little bit of insight there. It looks like it was down 23.6% year-over-year. Looking back over time, it looks like that’s the first time it’s really declined. So, trying to dig in a little bit and understand what’s going on there. Do you think it’s more macro environment? Is it something else? Is it that DEI-related headwind? Maybe just help shed some light there.
Paul Walker: Yeah. Thanks. Great question. So, not macro-related, not related to the DEI thing I just talked about. It’s related to a contract. So, contract — so we signed a contract in the first quarter of last year. That was — it was a fantastic contract. It was a large contract for multiple years. It was a five-year contract for around $10 million that had a lot of services embedded in it as well. And of course, it’s contracted, so we only get to count that one time in the contracted number. And then will — of course, that will flow into our invoice and our reported revenue annually over the next five years. So, we’re thrilled to have gotten the contract. This quarter, we didn’t sign another $10 million contract. However, the base of contracts that we did sign this quarter was right what we would have expected and very consistent with what a normal quarter — a normal Q1 would look like.
So the base, if you’ll think of it that way, was very stable and just like what we would have always expected. And last year, we’re just comping against this one large contract that was contracted in the first quarter last year. We don’t have anything like that, that we’re up against in Q2, Q3 or Q4 that I can think of. And so, I think it is kind of a one-time thing that therefore shows up as a decline here.
Jeff Martin: Okay. And then I was just curious if you characterized kind of the sales environment in terms of lead flow, pipeline, conversion, et cetera?
Paul Walker: Yeah. Dave asked a similar question a minute ago. I would say the environment is pretty good. I mean it’s — our clients are — our solutions are in demand. They’re looking to address and wanting to address the types of challenges we’re focused on. We’re seeing, as we do during these times, where our execution business, clients, CEOs and C-level leaders are looking to figure out how to execute their strategies as effectively as they can. We’re seeing good demand there. We’ve just launched a new sales performance solution this fiscal year, an upgrade to the one we had. We’re excited about that and the initial interest there. We just, as I mentioned, launched the 3.0 version of Leading at the Speed of Trust, and we created a companion version of that called Working at the Speed of Trust.
We never had a solution — a trust solution that was geared to the non-management population, and yet trust is one of these topics that you need to run through the entire organization. There’s been really good demand for that new solution. And so, I would say we’re having great attendance at our marketing events. You’ll recall that we were all live in-person marketing event pre-pandemic. We shifted all the way to live online. And now we’re enjoying kind of a dual marketing event structure where we do live — we do online ones and we do in-person events. They’re very well attended. Client — people love — people that are working at home love to get out of their office, come to these live in-person events. There’s been great interest there. So, pipeline, pipeline conversion continues to be strong.
