Stephen Sheldon: I wanted to follow up on Noah’s earlier question and then ask about some other changes you’ve made to the sales process. I think you started doing more bundling and packaging this year. And just curious how impactful that change has been. I know, firstly, as we’ve said multiple times, first quarter is in a massive sales quarter. But as we think about the key selling season coming up over the next couple of months, how impactful do you think this change could be to the breadth of solutions you’re including in contracts given what you’ve seen so far this year?
Steve Daly: Yes. Stephen, to your point, it is early, and Q1 is not the big selling season for us. But what I can color commentary I can give you is, we feel good about the pipeline that’s building around those bundles. As you may have noticed in the prepared remarks, those wins that were multiple product wins. So in some cases, those were the bundles that we sold. In some cases, they were a mix of products. But we’re finding encouraging success in our conversations about being able to walk in to a sales opportunity. And rather than just having a conversation about what LMS we’re going to use, it is about the bigger full platform solution. And so we feel good. We’ve been able to still have world-class win rates, and we’ve done a number of deals that, again, are multiproduct that give me — again, good trend with Q2 and Q3 will be more predictive for us.
Stephen Sheldon: Got it. That’s helpful. And then just as a follow-up, it sounds like you’re continuing to see elongated sales cycles in higher ed. So curious if that’s gotten any better or worse relative to what you’ve been seeing in recent quarters. And generally, what do you — what could it take for that pressure in the ecosystem to ease?
Steve Daly: Yes. We haven’t seen any material change, Stephen, in the kind of the length of cycle and those types of things. Again, Q1 is not a great predictive quarter for us. One of the institutions are just starting to get their budgets for next year. And as they start to digest what that looks like and what they have left for this year, that’s, I believe, that’s going to be a catalyst for some of these decisions to be made. Again, time will tell, but I’m cautiously optimistic.
Operator: Next question comes from the line of Joe Vruwink with Baird.
Joe Vruwink: I wanted to ask about some of the big wins in the high-growth areas and specifically the nontraditional opportunities. Are those a byproduct of some of the go-to-market changes and having dedicated sales coverage there? Or are we actually just seeing still that your product is well suited for those opportunities? So the product is currently speaking for itself and the go-to-market coverage is going to drive benefits more later on, perhaps?
Steve Daly: It’s a good question, Joe. I would say we are seeing — I’m encouraged, right? So the fact that we have now have a sales team, we have a marketing and CSM team that are 100% focused on this part of the market for us is starting to pay dividends for us even now. I do think that this is our first quarter with that dedicated sales team. And so I do think that there’s more to come there, but I’m happy with the progress that we’ve made so far. Now the product fit, as we mentioned in our Investor Day, we’ve been — there’s been a lot of inbound requests prior to having a dedicated sales team that we’ve just been kind of catching. And so we do believe we have a good product fit here. But the — I am encouraged by the focus that’s there and the team that’s executing on that.
Joe Vruwink: Okay. That’s helpful. And then the bridge between reported and organic growth in the earnings release, that’s great. That should be a best practice. I’m wondering if you can parse out the M&A contribution within RPO in the quarter.
Peter Walker: Yes. So I appreciate the question. So taking a look at RPO, we obviously had a strong growth rate of 17% year-over-year. The Instructure business growth rate was double digits. The remaining portion is from Parchment. But I think it’s important to remind you that about 1/3 of Parchment’s business is subscription, so it would impact RPO, and 2/3 is transactional.
Operator: Your next question comes from the line of Ryan MacDonald with Needham.
Matt Shea: This is Matt Shea on for Ryan. I think our biggest takeaway coming out of the recent ASU GSV conference was just this rationalization of vendor sprawl that the K-12 market, in particular, is going to have to go through post-ESSER funding. So just curious, I know it’s early in the selling season, but just curious if you guys are starting to see that demand for your Learn platform products or if you’re ultimately changing kind of how you position the selling season just with that funding cliff and rationalization coming? And then would love just an update with the Learn platform on the higher ed side. You guys are still on pace to roll out that beta in the second half of those institutions. And any early signs of demand?
Steve Daly: Yes. I heard the same thing at ASC GSV, Matt. And we saw — and we’ve seen it in the market. In fact, every conversation that I anecdotally, again, that I’ve had, it’s an easy conversation to have with the superintendent or a leader within because there is a — there is still massive sprawl of apps in — particularly in the K-12 space. And so it is resonating. The value proposition is resonating. We have a dedicated team that continues to work on positioning and ensure that we’ve got the best opportunity to penetrate those opportunities. From a higher ed perspective, that is one of those unrealized opportunities that we’re working on. We are securing design partners right now and working — so we are on track to be in beta for the second half of the year and expect that to be a long-term growth driver for us, particularly in the EdTech effectiveness space.
Matt Shea: Got it. That’s good to hear. And then maybe just thinking about higher ed enrollments over the next 6, 12, 18 months. Obviously, we have this vast fiasco going on, but we did just cross the “National College Decision Day.” So just curious if you guys are starting to hear anything from your college partners on what their enrollment looks like for the next 6 to 12 months? Or any other signals that are kind of informing your outlook there?
Steve Daly: It’s a little bit early for us to get that feedback. As you said, we’re just kind of getting past that deadline. And there is a lot of — Tesla is causing some vibration, if you will, some uncertainty. But at the same time, it feels like they’re getting that fixed. I would say, the trends, we saw a little bit of a firming of trends this last year. And so as we talk to our highed ed institutions, they are, one, focused on that, but also focused on how do we reach more and more learners. The long-term trend is still how do we bring more learners into our institution and reach more of the world, if you will.
