Beth Gaspich : Yes. Thank you. So what we’re seeing, again, as Barak said, it’s early days on the consumption side, but certainly with core of our AI offerings, these were — Enlighten is a solution that was manically developed is native here at NICE. And so we have very attractive margins. And we can see that it is — the customers see those use cases playing out in the organization. It drives adoption throughout those organizations. And as that happens, we’re seeing that, as I mentioned, being accretive further to the margins. So that is something that we’re already starting to see out. And of course, both in terms of our revenue streams and our margins, we see both digital and AI continuing to be nice growth drivers in both respects.
Operator: Our next question comes from the line of James Fish with Piper Sandler.
James Fish : Wanted to build off Samad’s first question. Was there a pickup in more desire for term deals on the financial crime side this quarter that didn’t translate to cloud revenue? And Beth, I think every investor asked this to at least us. Is there any way to understand how much of that financial crimes business is now cloud?
Beth Gaspich : Yes. Thank you for the question, James. I highlighted earlier on the call that we are seeing momentum in our financial crime and compliance business segment with both our Xceed and X-Sight cloud platforms that are addressing all of the financial institutions, both midsized and large. And we are seeing really even greater momentum than we had originally anticipated with success in the cloud. So what you’re seeing in the results of the financial crime and compliance business is exactly that this year. The current year revenue is expanding in terms of the contribution from the cloud. And of course, that is compared to a baseline one year ago that had a much larger contribution of product and premise-based revenue.
So we’re seeing that transition, and we expect to continue to see that happen throughout the course of this year as that business continues to drive success in the cloud. So this is a very transitional year for that FCC business. And of course, as we start to see more of the concentration of the revenue in the business to the cloud and you get to more of an apples-to-apples type comparison then you will start to see that success coming through as the cloud revenue accumulates. And we see the growth once again being recognized when you’re on kind of an apples-to-apples comparison. So it is a transitional time. And we are excited about not only what we’re seeing in the FCC business but also early days of Evidencentral in our public safety business as well.
With respect to the amount of contribution, it is continuing to increase. And as we’ve said in years past, overall, customer engagement still constitutes 83% of our total revenue today. So by and large, it is still the key growth driver, but we’ll always consider potentially breaking out the cloud revenue contributions from non-CX revenue in the future.
Barak Eilam : Maybe I’ll just add one more thing to that. And this is that when we look now on the conversion of existing financial crime and compliance customers to the cloud, originally, we expected them to be in the magnitude of 2x to 2.5x more revenue in the cloud on an annual basis versus on-prem. We actually see that we managed to cross-sell a lot of capabilities right out of the gate in those conversion rates. And the last 20 deals analysis we’ve done was north of 3.5x. That’s one thing. And the second in the financial crime and compliance, customers are actually even forcing us in a positive way to commit for the long run and many of them signing those cloud deals with 5 to 7 years commitment. So it’s going to be an extremely healthy cloud business as it continues to evolve in its conversion to the cloud.
