Operator: Your next question comes from the line of Matt VanVliet with BTIG.
Matt VanVliet: I guess as more and more attention on the nontraditional learner, curious on what the pipeline looks like for Catalog and maybe even Studio as whether it’s universities or other programs look at how to create a tech stack that is maybe more margin-friendly to the institutions themselves and how much attention you’re getting on building out that type of program for them?
Steve Daly: Yes. That’s one of the areas that I’m particularly pleased with in this last quarter. We’re seeing — we saw good performance out of that part of the business. And it is, to your point, it’s about a bundle of products. It’s a number of products that go into that, it’s pricing strategies, it’s positioning and marketing that we do in that space is bringing more opportunity. So when I look at kind of Q2, Q3 pipeline, looks really good. We’re encouraged that we can hit our commitments from that — from a nontraditional.
Matt VanVliet: And then as you look towards the prime selling season here coming up, how should you think about overall deal sizes, early indications from customers in terms of how much budget is available versus longer-term plans to have more of a land-and-expand approach. Any early thoughts on kind of what you’re seeing in the pipeline from a deal size perspective?
Steve Daly: Yes. The — I would say, Matt, that what we’re seeing in our discussions and part of the reason why some of these deals are elongating is because they’re much more strategic discussions than we’ve had in the past because we are talking about overall revenue for an institution, right? How do they go attract more of these nontraditional learners. It becomes — we end up calling much higher in the organization. So from that perspective, we are encouraged about the size of deal when we do get into these conversations, counteracted by the fact that it takes longer to have those conversations higher up in the organization. Now it’s counteracted a little bit. The reason I was hesitating just a little bit, Matt, was because, at the same time, we also created a middle market focus in our go-to-market.
So we are, at the same time, calling on a segment of the market that is a little bit smaller that, historically, we’ve been we haven’t called on — we haven’t had a dedicated team to call on. And so it kind of balance out each other. But I would say, when we are having these strategic discussions, they are obviously, a bigger — it ends up being a bigger sale for us.
Operator: That concludes our Q&A session. I will now turn the conference back over to Steve Daly, CEO, for closing remarks.
Steve Daly: Thank you, everybody, for joining us today. Our exceptional first quarter and updated fiscal year guidance was driven by our increasing competitive advantage, our strong execution and our expanding profitability. We head into the remainder of 2024 with meaningfully enhanced scale, a broader portfolio of products and a retooled go-to-market strategy focused on delivering durable growth at scale. I personally couldn’t be more excited about our ability to elevate teaching and learning for students and educators while creating value for shareholders. Thank you for joining us.
Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
