And we actually do have 2 products that are — I would describe as functionally complete global price management that helps manage all of the complex reference pricing, the country-based pricing that I described. And then a product that is bespoke vertically tailored for pharma procurement and plugging into the pharma specific tender sites. So we have great products. And we have over the last couple of years, we’ve talked about this, started to selectively invest in our team in Europe, in terms of sales capacity, solution consulting and some professional services and even some product people in theater. It’s been a measured investment, but we do see those products, as being strong products that, that team sells. And that team also collaborates with our global account teams that might be servicing a U.S. headquartered pharma company with operations in in Europe.
So yes, I’m excited about Europe. I’m excited about our products there, and we’ve got a small but mighty team in that theater of operation. And as we continue to move forward, I see us continuing to selectively invest there.
Nick Mattiacci : Got it. And then just any comments on what you’re seeing in the high-tech vertical. Just as far as deal activity, either new logo or expansion, just how is that performing relative to your expectations? And any macro impacts to call out for that vertical?
Jason Blessing : Yes. I mean as we’ve talked about kind of widening the aperture over the last couple of years between COVID and supply chain issues, and then rising inflation — or excuse me, rising interest rates to combat inflation, we have seen some pressure, and we’ve talked about that in that segment. That said, when I look at our existing customer in high-tech, their market leaders and market leaders, will often invest in projects that have tangible top line and bottom line results and our products do that. So we’ve seen our customer base thoughtfully invest over the last couple of years. I think what’s been encouraging to me this year is we’ve started to see a pickup in new logo in our pipeline. We had nice attendance from high-tech at Rainmaker, and we saw that event have a really nice impact on frankly, new logo, both life sciences and high tech.
So as we come into our fiscal ’24, I am pretty excited about new logo in general. It’s been encouraging to see a pickup in the green shoots in high-tech as well.
Operator: Your next question comes from the line of Matt VanVliet with BTIG.
Matt VanVliet : I guess as you get pretty far here in the SaaS transition, but go to sort of sell back into the existing base. Are you — do you feel like you’re experiencing any kind of fatigue from some of those customers that have gone a pretty arduous process to move to the Cloud, maybe holding off on any expansion or upsell opportunities there? Maybe just generally, how would you look at the pipeline for the cross-sell activity over the next couple of quarters?
Jason Blessing : That’s a really good question, Matt. We’ve seen a little bit of both to be perfectly honest. We’ve seen customers. I’ve talked about some of these examples on earnings calls, where they’ll take new products as a part of their SaaS transition. And so that’s worked well for us. We certainly have over the last year. I mean, in some respects, we’ve had so many our customers actually going through projects. They’ve been potentially slower to take new products in a steady state. And for me, that’s why I’m so excited about effectively wrapping up SaaS transitions in the next couple of quarters because that basically gives our entire customer base back to us and allows us to go sell to new divisions, sell to new geographies and sell into the white space, both products that we are building today and products that are on the shelf and ready to go.
So I think it’s an insightful question, and I’m really excited about, as I described it, getting customer base back and not having to compete with SaaS transition and really bring some of this new innovation and the new products to our customers, where I know they’re going to see great value.
Matt VanVliet : All right. Very helpful. And then in terms of over-all head count. I guess 2 parts there. One, on the go-to-market team, do you feel like you need to fill in any spaces there or add capacity in certain areas. And then secondarily, as you sort of wind down on the SaaS transition on the R&D side, can you sort of migrate some of those support type people into more forward leaning type role and how you can leverage that moving forward?
Jason Blessing : Yes, that’s a great question. I’ll take that one as well. So we’ve continued to hold sales and marketing as revenue has been growing at about 16%. And so implied in that is over the last couple of years, we have continued to feather in new head count on the go-to-market side. The focus early on, particularly given COVID, and the SaaS transition initiatives, that we had that early on, the focus really was on hiring in the customer base. I think that’s what’s allowed us to drive SaaS transitions and cross sell nicely over the last couple of years. Starting last year, early in the year, we started to rotate our bias on hiring more towards New Logo. And I’m excited about that. I mean we exit the year with New Logo team that’s really ramped.
And I think it’s a very capable team. We took advantage, I would say, of a buyer’s market on talent and got some really, really good folks into that theme. So I would say, as we sit here today, we properly resource on go to market. And then the second part of your question is also a great one on engineering. And we’ve essentially been flat, flattish on engineering. But yet, we’ve been supporting SaaS transitions, seasonal releases and also building new products and releasing new products. And so all of that capacity and our ability to do 2 seasonal releases a year, as well as build a couple of new products a year, is coming almost exclusively from repurposing engineering capacity that was supporting legacy on-prem code lines historically.
Operator: [Operator Instructions] Your next question comes from the line of Samad Samana with Jefferies.
Billy Fitzsimmons: This is actually Billy Fitzsimmons on for Samad. Maybe taking a step back and going big picture again. In the prepared remarks, you discussed macro impacts. I know last quarter it was discussed how macro factors have elongated sales cycles. And now that we’re kind of a good way through earnings season, we’ve heard from a lot of companies that some of them have called out that macro factors incrementally worsened in the third calendar quarter or your fiscal fourth quarter. So curious for your thoughts there, if anything, incrementally has changed for you. And what I’m trying to get at, is we’ve had a couple of companies call it deteriorated macro factors and a lot of them are for different reasons. So some are seeing SMB weakness, some out specific verticals got weaker.
Some are seeing lower new logo activity, some are seeing a long-gate sales cycles and Model N is obviously enterprise-oriented company with very specific verticals. So trying you guys a sense of those things. If by chance changes have been incrementally minimal, then just be curious if you can comment on what you’re seeing or hearing from your largest customers in the current macro environment in recent weeks and months.
Jason Blessing : Yes. It’s a good question, Billy. So if I reflect back on the year, we talked a little bit about macro headwinds in Q2, especially on some of the things that could be potentially perceived as discretionary and followed that up with a similar trend in Q3, where again, discretionary spend was getting a little more scrutiny, potentially not making the cut on budgets. But on Q3, our Q3 call. If I remember correctly, I talked about — I didn’t think things had deteriorated, as we’ve gone from Q2 — Q1 to Q2 to Q3. And as we sit here today, I would say the same thing. And I think part of that is that we are a vertical company, big pharma, which is — you asked about our largest customers, they’re continuing to invest.
