It does give us an opportunity to address some areas that we’ve had some limitations. So for instance, in the Philippines, we go direct and channel, but it gives us access to government contracts and relationships that we don’t have. So we’ll continue to use that as a key growth driver long term for us and believe that it’s an integral part of our international strategy. From a Parchment perspective, we haven’t modeled in any acceleration due to the part they’re doing to channel partners. It’s an area that as we get into the integration, as we get into really digging in with them together on the integration plans, we’ll evaluate that at that time. And so — but again, not built into any of our guidance or our models, frankly.
Operator: Thank you. We’ll take our final question from Brent Thill at Jefferies.
David Lustberg: Hi. Thank you. This is David on for Brent. A lot of talk around the nontraditional learner. I know this is probably a tough question to give a super clear answer on. But maybe if there’s a helpful way to frame what percent of the business today comes from this nontraditional learner, assuming it’s fairly small? And where do you expect that, that can get to if we look at 10 years over time?
Steve Daly: Yes. That is a great question, David. And we don’t break out the different segments per se. What I will say is the nontraditional learner — I mean learning is still happening, right? And what’s changed over the last — since — really since the pandemic is that learners have become much more engaged in the pathways that they want to follow and pursue in their learning journey. And so we’re seeing this as an opportunity to continue to drive growth across the business. It’s an opportunity for our existing customers to address more students than historically they have a lot more students than they historically have, and it will be a long-term growth driver for us as they work through their strategy. So we will — it’s a growing mix.
Still early days, as you mentioned. We’ll — but we will, as we kind of turn the corner into 2024, as we — we’ll get back to you with more details about Parchment, more details about our long-term growth and update our growth models in 2024.
David Lustberg: Got you. And maybe if I could just sneak in one more just quickly on the AI beta. If you can just bring us — remind us bring us to speed on what you guys are experimenting with as it relates to AI and just any early feedback would be helpful. Thanks so much, guys.
Steve Daly: Yes. So this is exciting. We’re getting real-time feedback from our customers, those that are involved in those early betas. There’s a few areas that we’re focused on. So one is course content and creation. So we have natural language models that will allow, for instance, teachers to be able to create courses inside of Canvas that allows us to be able to use natural language. For instance, I wanted to have two columns in my course and I want these headers and that kind of stuff as well as use it to create content like quiz questions and things like that. The second piece is around what we call semantic search. That is the ability to be able to for students and teachers to be able to search across all content, all course content and be able to do it in a way that they don’t have to know exactly what they’re looking for.
So for instance, the example we used it InstructureCon was a student says, “Hey, I remember my teacher talking about mandolin and they didn’t really — they talked about the violin, a painting by Picasso. It’s able to kind of sort through using artificial intelligence to sort through and deliver results from that perspective without having to use all the Boolean and logic and all that kind of stuff. And then the third is to be able to use natural language processing for analytics so that administrators and teachers can naturally go in and say, “Hey, I want to see which students are struggling with this.” It’s able to create — organize the data in a way that they can use it for that. Show me all the students that have — that are — have missed 4 assignments.
That kind of engagement. Again, the goal really here is to make lives simpler and easier for teachers is where we start as well as make it more intuitive for administrators and learners as well. So those are the areas that we’re really experimenting in right now, David.
Operator: And that is all the time we have for questions this afternoon. Mr. Daly, I’d like to hand things back to you for any closing comments.
Steve Daly: Well, thank you for joining us, everybody. And Peter, once again, welcome to the team as our incoming CFO. We’re excited about adding Parchment to Instructure. We believe it’s going to help drive new growth and opportunity while matching or improving our profitability over time. Combined with another solid quarter of execution, we continue to believe we are unlocking the value of technology and education for teachers and learners alike. So we will continue to drive balanced growth and profitability for you, our investors, and we look forward to connecting with you next quarter. Thanks, everyone.
Operator: Thank you, Mr. Daly. Ladies and gentlemen, that will conclude Instructure’s Third Quarter 2023 Earnings Call. I’d like to thank you all so much for joining us and wish you all a great remainder of your day. Goodbye.
