That same concept also, by the way, applies to the updates, right? So it’s not just the initial go-live, but it’s also the subsequent update and making sure that customers are thinking about that and planning for that and testing for that, so that those things can operate more smoothly now. It’s just incredible how much progress we have made over the past few years around this topic. And by the way, I don’t think we’re done. I think we’re at nine. And so how many letters are there in alphabet, we’ll run out eventually and have to come up with a new marketing approach. But when we get to 18, we’re going to be even better. These things are going to be going even more smoothly. And we have established the improvement function inside of Guidewire around these projects, and are really, really doing a much better job than we were initially.
And that experience is — that positive experience for customers is shared and does help us sell more effectively and helps us feel confident in the progress and the momentum in the business. So appreciate the question. Unfortunately, makes me admit that we were — had a lot to learn when we first got started, but very, very proud of the progress that we’ve made so far.
Matthew Kikkert: Yes. Awesome. That’s great to hear. And then at the end of your prepared remarks, you mentioned you did a $2.5 million services reorg earlier in second quarter. Could you provide some more detail around the changes that you made there? And what was the thought that went into that move?
Jeff Cooper: It was really around just doing some rightsizing. We have seen that org. We have seen our partners take on more and more of the burden. That is a great outcome for us as that improves our overall scalability as we address this very large opportunity in front of us. And so it was a relatively small action, but does kind of play into the services margins in Q2. So we wanted to call that number out for you. But that’s all I would call out on that particular topic.
Operator: Our next question comes from the line of Ken Wong with Oppenheimer & Company. Please proceed with your question.
Ken Wong: Mike, I wanted to circle back to your upbeat analytics commentary. How might reform the risk modeling, I think, in California, specifically allowing forward-looking data spark demand for analytics? And might this have any kind of pull-through for cloud interest?
Mike Rosenbaum: Yes. Great question. I’m glad you pointed that out. We’re excited about the changes that the state of California is working with the industry to make. There’s obviously a lot of turbulence in the insurance market in California, which many of us personally feel having a lot of the employees of Guidewire work and live here. So, we see it as very positive — a very positive update to the approach, and we expect that solutions, specifically HazardHub can play a very positive role for the industry and taking advantage of these changes and just better understanding, number one, the real risk profile associated with these properties and with these locations, but also things that insurance companies and also homeowners and businesses can do to mitigate that risk.
We think that’s all part of the equation when it comes to operating a more effective and efficient insurance market. And so California is making some changes, but we also think that HazardHub and property analytics in general, can really significantly improve the approach that carriers take to measuring risk and pricing risk and operating the the industry overall more and more effectively. We expect intent, we’re excited about playing a driving role in that I’d also say that this extends not just our products and HazardHub, but also our partners there’s a number of analytics partners that plug directly into Guidewire and can be deployed super easily on our platform that are going to facilitate this sort of new modern approach to risk management, risk selection, managing disasters, if they occur, more effectively.
It’s very, very exciting, applying this Insurtech Innovation to the industry, and we’re excited to be a part of it that California change, it’s sort of, for me, kind of makes all the work we do here real because if you talk to people that live in California, there’s not any of us who either haven’t experienced or knows somebody who has experienced a change in their insurance provider because of the because of the risks associated with the weather changes and the risk profile in California. So that makes it all kind of personal for us and makes it pretty exciting. Whether or not it helps us sell cloud, I certainly hope so. I think overall, agility is the word I like to use. I think if you’re in a world where risk is changing faster than the more agility you have, the more pace around which you can operate your insurance company the more effectively, you’re going to be able to manage those changes, manage that risk more effectively, update your operations and update your company more effectively.
And so Guidewire Cloud and modern solutions provided by InsuranceSuite applications and InsuranceNow, it delivers that agility and enables the industry to operate more efficiently. So, we’re very positive on that change and look forward to seeing — helping drive, honestly, just a better, more efficient industry. So anyway, that hopefully that helps.
Ken Wong: Yes. Very helpful. And I appreciate all the thoughtful details there. And then just a quick one for you, Jeff. I’m not sure if from quarter-to-quarter, we see too many changes, but just wondering if there’s any update in terms of what kind of the deal ramp dynamics might look like in Q1?
Peter Heckmann: Yes, yes. No major change. Q1 — if you look at Q1, it generally as a portfolio tends to have a little bit of a shallower ramp than the rest of the year just because it’s a smaller and a lot of the activity is kind of more true-up and renewal compared to the overall bookings profile. But it was very consistent with Q1 last year so kind of steady as we go, no change to ramp assumptions at this point.
Operator: Our next question comes from the line of Michael Turrin with Wells Fargo. Please proceed with your question.
David Unger: This is David. I’m going from Michael Turrin tonight. So similar to Ken’s question that just said. So we’ve been booking up a bunch of head bids that you’re positioning and the competitive environment has improved within the last year, especially — you mentioned you have high close rates. So I’m wondering how this all translates into deal dynamics as you sign new cloud deals?
