Steve Daly: Yes. We’ve — what we’re seeing is a lot of — we’ve seen a lot of activity. So as we made that acquisition and we put it into the hands of our sellers to be able to start carrying those conversations forward, we’ve seen some good pipeline growth. And so as I look at kind of the Learn platform interest, it’s extremely high. We continue to see a need. Our customers are telling us as we think about all of this technology that was deployed during the pandemic, we’re seeing that it’s — they’re trying to rationalize what that looks like. And our pipeline has more than doubled since we did the acquisition, and we see real interest in this. So I expect that we talked about contribution being de minimis in 2023. But as we go into 2024, I feel pretty confident about the level of interest and the activity that’s going on with Learn.
And as you talked about, part of that seating strategy is just starting to take hold in our customer base, and we believe that’s going to drive even more pipeline.
Ryan MacDonald: Super helpful color. And then maybe just one on Parchment. I noticed from sort of looking at the company website that they’ve got a connection in into the workforce, industry organizations and enterprise organizations. Just curious if you think that this acquisition can help kind of close the loop on the strategy for Canvas student pathways and sort of bringing those nontraditional learners, upskilling them and then sort of validating those credentials as they go back into the workforce or try to find a new role. Is that how we should think about maybe that a portion of this acquisition moving forward?
Steve Daly: That is exactly how you should think about it, Ryan. It does give us — we talked about deeper relationships within the institutions that we play today, but it also creates connections with — inside the workforce. So over time, that will become a much more important part of the strategy, that will become the opportunity for us to connect learning through the comprehensive learning record with outcomes and opportunity for the students long term. So yes, we’re very excited about those relationships.
Ryan MacDonald: Great. Thanks for the color.
Operator: And we’ll go next now to Matt VanVliet at BTIG.
Matthew VanVliet: Good afternoon. Thanks for taking the question. And Dale, it’s been a pleasure working with you over the last couple of years. Maybe the last question, just a little follow-up on there. How much of the conversations with customers, whether it’s around catalog or some of the other omnichannel-type approaches that you’ve been having, Steve, catalyze the need to maybe get the Parchment deal done now or highlighting maybe some of the product gaps that you had on the road map that this helped accelerate?
Steve Daly: Yes. Matt, I don’t — I’m not sure it changed necessarily the urgency of getting the deal done. This is — these are — we have a very active M&A road map. We have an active engagement with a lot of different companies. We’ve had conversations with Parchment for over 1.5 years as far as just understanding their business, seeing if there’s partnering opportunities. But in order to get deals done, both parties have to be ready for it. And so it’s more of a function of them being ready, I think, than necessarily us feeling a need to fill a hole. Now I will say that from my perspective, from the management team’s perspective, the conversations that we’ve had probably in the last nine months, the conversations we had at InstructureCon really have ramped up this concept of I’ve got to go figure out how to address these nontraditional students.
So I think the timing from that perspective is perfect because we’re hitting it at a time when the need is front of mind. The need is — the pain is front of mind for our customer base. So I think it is a great time for us to do this deal from — just from a market timing perspective.
Matthew VanVliet: Very helpful. And then just quickly one other follow-up on some of the longer sales cycles. If you were to try to make your best estimate on when some of these deals that you’re already working on eventually closed, does this — is this starting to feel like it’s, again, sort of the next summer buying cycle is more likely? Or could some of these sort of happen in the interim as you push forward and maybe the catalyst of some of those nontraditional opportunities get these over the goal line before the next big buying season?
Steve Daly: Yes. That’s a tough one to try to call right now. In international, this is our big quarter. And so we’ll see how deals matriculate. We’ll have a better view kind of as we meet again in Q1 to talk about 2024. I would say we still feel good about the deals that are getting done, we’re winning, right? And we continue to gain share, and then we’ll have to see as we go forward, whether this — they decide to do these now. There is a lot of impetus for them to kind of time these around their budget cycles around the school year in North America, for instance. So we’ll — I don’t have a crystal ball right now, Matt, as far as when these will close. But I do — again, I do feel good about when they do come. We’re in a great position to win them.
Matthew VanVliet: Great. Thank you.
Operator: Thank you. We’ll go next now to Noah Herman at JPMorgan.
Noah Herman: Hi. Thank guys for letting me in here. It’s been great working with you, Dale. I really appreciate it. And look forward to working with you as well, Peter. Just wanted to touch a little bit on the international go-to-market partner program. Just how far along are you on that? And how are you thinking about Parchment layering into that strategy? Thanks.
Steve Daly: Yes. So it is. We’ve had some good wins from a partner program perspective, and we continue to kind of refine that model as we move forward. We do have some targeted countries that we’re going after. Philippines is one of those, and we talked about the deal that we just won in the Philippines. We’ve talked about some in Japan as well. So I expect that to be — again, it’s — we’re — right now, we’re really focused on enabling. We’re focused on the ability of our partners to support customers in region, and that’s where a lot of our focus is. And I suspect that while the growth will be good, the dollars are small still in that space, and we’ll see that grow over time. So I think that’s — the other thing that I would add is that it does open up new markets for us.
