But when we look at the year and that we said in advance, we believe that the year would be a year that is aligned with the prior results of the company prior to last year which was a tick up and we remain in that belief that we’re in the right direction. I’ll also add on retention that a smaller piece was a full churn, let’s say, to the tune of 25% of our churn was full churn. The majority of it was down sales, call it, 75% of the churn. And that’s the case in both EE&T and M&T and that we continue to see a very small piece, call it, less than 10% of our gross churn associated with either product or service gaps. So the rest are either budget limitations, product services that are no longer needed. These are things that are aligned with what we’ve recently seen.
I’ll just say as this touches NDR, we’ve mentioned how we fared in Q1, not a surprise for us, given last year’s churn, it is a lagging indicator. And we also — as we look forward into the future, we did say kind of cautiously in the prepared remarks that there may be a bit of a decrease into the next quarter. We’re not seeing anything significant. So let’s wait and see where it goes. If it is, it might be a small decrease. And then hopefully, as the continued improvement around gross retention and the bookings that we expect will start climbing, then we expect to gradually start showing better results there. So that’s it. I don’t know if you have any other questions on that. John, anything you want to say on this?
John Doherty: No, I think you covered it.
Ron Yekutiel: Okay.
Ronit Shah: Yes. Yes. Great. Just one more, if you don’t mind, on the competitive landscape and who you’re running into with deals and comments on pricing trends, things like that?
Ron Yekutiel: Yes. We’re not seeing anything new. No fiercer [ph] competition nor new players come in. And on the pricing, I did mention that we are — we were able to have increased contractually more so than in the past and that was by way of strategy which I had stated prior that we intend to do so as well this year. So we’re not seeing additional pressures come in.
Operator: The next question is coming from Pat Walravens of Citizens JMP.
Oliver Crookenden: This is Oliver Crookenden on for Pat. Going back to competition a little bit, with the 7-figure and 6-figure deals that you closed this quarter, can you talk a bit about the extent to which these deals you were involved in were part of competitive bake-offs?
Ron Yekutiel: Most of them were not. Like I said, most of the bookings this quarter was more so on upsells rather than new logos which is indicative. It’s kind of aligned for the industry in recent quarters, given where things are. People are sticking to their existing vendors more so than in the past because it’s just too risky to start making moves. This hasn’t changed. But in most of these cases, people — they love us to bid and they want to stay with us and they’re not considering a change and it’s also a sticky offering and especially for Kaltura because unlike the other folks that are quite often offering just kind of a low-touch self-serve product or without a lot of APIs, not necessarily mission-critical, more so an app, that’s easy to replace.
In our case, quite often what we’re offering is something with a lot of API integrations and harder switch [ph]. Again, to remind you when we spoke about even higher churn rates or lower retention rates, it was more often than not down sales because people needed to use less stuff, not because they want them to disconnect or were interested to switch. What we’re seeing, again, in line with your question is that things are maintaining with Kaltura. There’s mainly upsells and people are not considering significantly doing it with somebody else. It’s just a question of how much money they have in order to do, what they wanted to do now versus wait a bit longer.
Oliver Crookenden: Great. That’s helpful. And I guess a little bit of a follow-up. I know you powered some of the functionalities of the GTC conference than you have in the past. So has the growth of that ecosystem helped at all in terms of upsells?
Ron Yekutiel: So NVIDIA is a great partner and customer, obviously a phenomenal company. We’re privileged to do some work with them. And in fact, we’re doing a bit more work with them and hopeful that, that trend will continue. If they were to mimic historical contracts and we were able to have come and expanded quite significantly, then we’re hoping that, that will continue to be the story with this amazing company as well.
Operator: Thank you. At this time, I would like to turn it back over to Mr. Yekutiel for closing comments.
Ron Yekutiel: Yes, I want to thank you all for your good questions. It’s a good beginning for a year. Like I said, optimistic trends around retention which we promised and are currently delivering on. We’re excited and we’re going to share in the next call how our company conference, the Kaltura Connect is taking place for those of you who still want to join. San Francisco is happening tomorrow and London is going to happen later this month. Please do come and you could find it on our website. By the way, we’re going to be sharing the recording from that event, so you’ll be able to have a look at them. I think they’re quite telling the breadth and depth of what it is that we offer. Thank you all for joining the call and have a wonderful day.
Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.
