Josh Glover: This is Josh. We’ve been pleased but not surprised by the customer excitement about this. We’ve done, I think, a really good job of meeting our customers where they are. The problems they are really asking us to help them solve today is helping with efficiency and also helping with employee effectiveness and employee engagement. So if you think about the initial use cases where we’ll have the ability for banking adviser to offer a knowledge base where a banker rather than navigating a 300-page PDF of a credit memo, they can have that at their fingertips where they can have intelligent credit memo narratives where rather than sitting and typing out the risk of doing a hotel loan in Florida, they can use generative AI to tell them that, look, we have seasonal risk because of tourism, we have hurricane risk, et cetera.
So those are things that are going to make employees a lot more efficient and frankly, help banks, even though the labor market is becoming a little bit more employer-friendly, it will help them attract the kind of employees that they need to continue evolving their bank because the smartest kid graduating university today does not want to go sit and thumb through a 300-page credit memo or credit policy. So those are the kind of things that we’ve seen relative to monetization. Banking adviser is something that will contribute to nCino’s growth. And I would expect to see NIC use cases continue to be monetized on a stand-alone basis, as you’ve heard from us with portfolio analytics with pricing and profitability. But we’ll also use these tools to inject intelligence in every aspect of the application, which is a validation of the continued investment that we have and the ongoing growth that we get from our customers.
Nick Altmann: Great. And then just a quick follow-up. You guys mentioned earlier, 60% of gross ACV bookings came from the installed base in 3Q. When you look at the Q4 pipeline, how does that kind of look in terms of net new versus existing just given it’s a seasonally strong spending quarter for software, there’s budget flush dynamics, et cetera?
Josh Glover: Yes. So we feel good about the pipe relative to our ability to deliver on the commitments that we’ve made for the fourth quarter. We’re not also not being toned on the macro and realizing that the buying environment is tough. So we feel confident that we have ample coverage 60% in quarter from existing customers as we’ve seen when the market gets tough, our customers need us more, and we continue to focus on them. And that’s one of the benefits of having such a fantastic customer base of happy customers that we partnered with for years. Composition has not changed relative to new deals or existing customers. As we said earlier, we’re not seeing greenfield logos fall out of the pipe we’re just seeing a more thoughtful time line for how they buy.
Operator: Our next question comes from the line of Alex Markgraff of KBCM. Your line is open.
Alex Markgraff: I actually wanted to expand on the prior question, maybe ask it a bit differently. Just thinking about that mix of, say, gross ACV bookings on a more normalized basis or in a more normalized environment when you consider the pent-up demand, particularly in enterprise and some of the product expansions that are helping you lead with noncommercial products. Just curious, I mean, 60% for the last couple of quarters from existing, what is the good range to think about for that mix from, say, existing versus new on the other side of this kind of more challenging macro environment just considering the changes around product and such in the last couple of years?
Pierre Naude: Historically — you saw — we run about 50-50 which is good because you cross-sell into your base, you build these or products, you add more value. You upgrade them, and that gives you a bit of pricing power as well because of continuous innovation. And then 50% to new logos where you’ve got lower penetration, you can start cross-selling to them again. So historically, we ran at 50-50. What we saw through COVID was when the market was destabilized. It went to a much higher percentage cross-selling to existing base customers. And what you see in this destabilized liquidity environment, it edges up to that 60%. We believe that in the future, it will come back to more of a 50-50 ratio.
Alex Markgraff: Great. And then I apologize if I missed this, but did you all provide the sales growth metric for the quarter as you did last quarter or not.
Gregory Orenstein: We did not. We provided the commentary around Q3 sales bookings being lower than Q2, but still confirming that we expect the second half of the year to be greater than the first half of the year from a gross bookings perspective. And just from an internal perspective, we did expect Q3 to be lower than Q2. So I’ll note that just as we think about the year playing out..
Operator: Our next question comes from the line of Robert Trout of Macquarie Capital. Your line is open.
Robert Trout: And nice to have my first earnings call as a covering analyst with the team here. If I could just ask two questions. The first on the evolution of the pricing model. Greg, I know you mentioned, I think, in response to Terry’s question that the early indications from that migration, you’re generally seeing a quicker path to revenue. And then — but what I’m wondering is, while the employment — the financial service financial services employment market is, as you mentioned, a bit more employer-friendly right now. Going forward, how does the job growth and [indiscernible] in the financial services market, the state of that, how does the new pricing model benefit or not benefit from — from changes in that relative to the old pricing model?
