And so our customers are asking for the same thing. The — they’re also, because our solutions are so sticky, our renewal rates, we just went through a massive renewal rate cycle over the last two quarters, right? And we saw improvement year-over-year on renewal rates. So they’re also doubling down on our platform as the platform to really address those opportunities.
Operator: Thank you. We’ll go next now to Terry Tillman with Truist.
Terry Tillman: Yes. Thanks for filling me in here. Congrats on the Parchment acquisition. Dale, congratulations to you in your retirement. I hope you’re an amazing teacher. And congratulations, Peter. I’m looking forward to know you. I was going to actually follow up on a couple of prior questions on Parchment first, and then I had a follow-up. And I’m sorry in advance that the first question might be a multiparter. On Parchment, it’s — if I look at the $115 million and the $2 billion TAM, and I know this is way oversimplifying it, but it is like a 6% market share. That seems pretty small at this point. And it sounds like, I think, Steve, you said awards is probably the biggest component, and there’s some other really fast-growing small pieces.
But if we look at like the biggest part of awards, are there legacy share donors in this market? Or did folks try to build their own kind of credentialing system? Just kind of curious where we are in terms of greenfield, brownfield, et cetera, as you all work to monetize this interesting opportunity.
Steve Daly: Yes. The primary shareholders in this space are NSC, the National Student Clearinghouse and Parchment. And in our diligence, the feedback came back very positive from — on Parchment as far as the view of the technology, the view of the relationship that they have with their customers. And so from that perspective, when you look at kind of the transcript and diploma side of the business, so that’s — it really is — it is those two, right? And that is a pretty stable business. That’s very high gross retention. It’s in the mid- to high 90s gross retention. So from that perspective, very predictable, very strong market share. The — where the opportunity is and which is a bit of greenfield is the credentialing, right?
The badging is new opportunity, the comprehensive learner record, those pieces are where we’ll be able to drive growth. And again, more of a greenfield type of sale than it is a market share takeaway. And then when it comes to the Pathways product, the dual enroll core sharing pieces of it, that is all greenfield. That’s a new market that is really starting to emerge. And like I said, we’ve had a number of conversations about it. It’s one of the reasons that we were interested in Parchment is because historically, we haven’t had solutions to those problems. So those are kind of the key areas that we see where we can drive growth.
Terry Tillman: Thanks for that. I guess the follow-up question is just related to international. Maybe Dale, could you actually share what the revenue was in the percentage growth year-over-year? And does it feel like this business — is it being impacted by the same amount of North America higher ed? Or does it seem a bit more resilient? Thank you.
Dale Bowen: Yes. So Terry, the international growth was 11%, on a constant currency basis it’s 14%. We’ll drop the Q here in the next couple of days, we’ll give you a little more detail on that. But International is still our fastest-growing segment out of all that we talked about. And so we’re pretty pleased with it.
Steve Daly: And to answer the second part of your question that you sneaked in there, Terry, we do see the similar headwinds in higher ed, maybe not as acute and not to the same level that we see in North America, but all higher ed institutions are asking these questions. I just spent a week in Australia, many of the same questions about where do we find new revenue streams, how do we address this nontraditional student, how do we meet students where they’re at? Those are all things that everybody is trying — is grappling with from a strategy perspective and a long-term digital transformation strategies.
Terry Tillman: Thank you all.
Steve Daly: Thanks, Terry
Operator: We’ll go next now to Devin Au at KeyBanc.
Devin Au: Great. Thanks for putting me in here. Dale, it’s been nice to work with you, and Peter, congrats and looking forward to working with you more. Maybe just one question from my end. When asked about K-12, nice to see the continued large wins in that market. Unlike higher ed, which you called out some weakness in the sales cycle, have you seen any sort of uptick in deal closing within K-12? Or perhaps any uptick in RFP in that segment, just given the whole ESSER funding deadline approaching? Thank you.
Steve Daly: Yes. Devin, the activity has been — we’ve talked about in the last couple of quarters, right? There’s been a lot of activity in K-12. You’re right, there’s still — depending on the estimate, a third to half of all the ESSER funds that haven’t been committed yet. And so we do see some good activity where we’re seeing probably the greatest activity in K-12 is around assessment. We’re seeing good cross-sell in the K-12 this last quarter. And we’ll — we think that Nevada was an example of our cross-sell of MasteryConnect. So we expect that will continue through this next buying season when the ESSER funds finally expire.
Devin Au: Great. Thanks for the color.
Operator: Thank you. We’ll go next now to Ryan MacDonald at Needham.
Ryan MacDonald: Hi. Thanks for fitting me in and congrats on nice quarter. Steve, maybe just starting on K-12. Curious what you’re seeing with the Learn platform and your ability to start to cross-sell that in a bit more. I know you sort of launched some of that functionality for free at the user conference. And it sounded like the interest was pretty high in it. But just sort of interested in what you’re seeing there post the event.
