So, whenever we are sitting with the customer, we are walking away with at least one, if not five opportunities on which they want to reprioritize over the next months and year. So, the more we are getting from the customers, the more pipeline we are seeing, and that’s why we continue to invest in the coverage model.
Operator: The next question comes from Stephen Sheldon of William Blair. Please go ahead.
Pat McIlwee: You’ve got Pat McIlwee on for Stephen today. So, my first question, you announced Knights of Knowledge win this quarter. And I just wanted to ask for a win like that — is the implementation burden, is that any heavier than it would be for a customer domestically? Or does that require any additional customization of your existing platform to go live with a customer like that?
Hardeep Gulati: Yes, Patrick, when you look at from the international, there are a couple of models. One is the — especially with that deal, where BME, which is on our partners involved, they would be actually doing some of the implementation elements of it as well. So, that’s the reason why we have such strategic these partnerships where they’re providing the local support and services. Provided an oversight and with some of the support from our global as well as our India implementation teams. Second, in terms of the localization cautions you have, we actually do already have translated our student systems or Schoology for the full Middle East, Arabic as well as lecture and right to left for the Middle East region, including localizations of calendars and other elements, which are also in the product.
We already now have local schools, not just international schools, but actually local tools who are implementing our SIS as well as Schoology in the Middle East. So, the localization element has already been the investment, which we have done over the last two years, but the actual implementation of that will be supported through partner and we do have extensive partner network in the region, including the BME who all carrying the majority below.
Pat McIlwee: Okay. Understood. And so then just as a follow-up to that, under that partner model and with some of those additional customizations, we’ll call them. I know it’s early, but generally, as you scale outside of the U.S., are there any considerations we should be thinking about with the price point of your solutions there or the margin profile selling them internationally.
Hardeep Gulati: So, Patrick, two things. One is that one of the big differentiators of our student information system is that the level of extensibility both from actually how you view the application, configure the application, they put different rules, different attributes as well as integrations to other systems and local elements. That’s why we have been so progressive in North America across all states. In Canada across all the provinces and even also having SIS deployments is almost 80 to 90 countries. So that inherent level of configurability is actually very easy and built into the product. That is a big differentiator. In terms of the margins, we expect actually Middle East to be very close to the price points we are seeing is very close to wherever North America point is, but there’s some adjustment of GDP pricing we do.
We do see the Latin America and India regions to be a little bit more lower price points. So, we have built our support service and hosting models based on the local pricing. So, our margins are not dilutive, even as we are expanding to international.
Pat McIlwee: Okay. Great. That’s all really helpful.
Operator: Our next question comes from Gabriela Borges of Goldman Sachs. Please go ahead.
Unidentified Analyst: This is Laura on for Gabriela. On the PowerBuddy products, they seem like a really exciting pipeline, and there’s a lot of interest for them. Can you talk a little bit about the build-out for PowerBuddy capabilities for the 2024 and 2025 school year? And if there’s any focus specifically given customer demand?
Hardeep Gulati: Yes. No, this is really exciting because you can imagine the opportunity here for PowerBuddy for us is to transform the entire experiences. And we are such a unique position because we have such a huge installed base. We have understood everything about the student, what’s happening in the classroom. We are able to personalize and contextualize experiences and leveraging generative AI make them conversational, but then also embed them into our solutions, so they are easy for districts to adopt. So, they will be pretty much a PowerBuddy element to every one of our solutions. We’ve launched Schoology and Performance matters. There will be a PowerBuddy for talk data and our unified insights. There’s a PowerBuddy for custom AI with our connected intelligence, so we can bring even district rest of the data and allow them to be able to easily search and be able to have conversational elements to those.
There’s PowerBuddy within Naviance, which will help them with college and career planning with talent to help them with coaching and mentoring as well as with My PowerSchools so parents and students can engage and ask any questions. So, we pretty much PowerBuddy going to be pervasive part of all platforms, supported by one PowerBuddy, which is also a big differentiator because you’re not to have any — the all other niche providers are not going to have the broader breadth depth of understanding and personalizing, but also having been able to embed it into these different applications. Not only is creating us a huge amount of additional TAM and growth for PowerBuddy with the AI companies. It’s actually making of a core platform even more differentiators.
We’re actually seeing more sales of our talent and Schoology and assessment platform thanks to PowerBuddy because it is helping us differentiate from some of the niche solutions who don’t have built or haven’t invested strongly in having a more comprehensive AI platform. So, we do think this allows us to really address a lot of the value for districts in supporting all these different elements, whether they are trying to provide interventions or help but also improve our solutions and experiences and making them even more differentiated. So, it is going to help us even improve our cross-sell growth of our existing platform.
Unidentified Analyst: That’s helpful color. And sticking with the PowerBuddy products, can you talk a little bit about the pricing models and how you’re thinking about pricing for teachers versus students versus parents and admins?
Hardeep Gulati: Absolutely. We shared this in our Investor Day that we are looking at PowerBuddy to be about when you think of from the value to make such that these are bite-size or districts can start adopting them more quickly. So, we have a PowerBuddy for, as I said, for each of these solutions, which would be about $3 to $5 per student. But somebody wants a full platform, that would be in the range of almost $40 to $50 per student. We are seeing that price points to be pretty attractive given the overall where we are seeing the market. And we do see the value they’re creating. We’re actually getting a pretty good response on those.
Operator: Our next question comes from Koji Ikeda of Bank of America Securities. Please go ahead.
George McGreehan: This is George McGreehan on for Koji. I just kind of wanted to ask in terms of the international markets that you guys are in. Kind of on the competitive front, how would you say the competitive dynamics in your international markets are kind of different from what you see domestically?
Hardeep Gulati: Yes, George, when we look at the market, especially where we are focused on like the Middle East, Latin America and in India, we don’t see a clear leader, which has established. These are untapped markets. They are high-growth population growth areas. There’s a lot of investment going on in creating new private schools, given some of the government schools that are putting better infrastructure. And one of the reasons we have prioritized these regions is that there is no clear leader. And even when you do see some of the niche solutions, they don’t have the full platform. And as you can see from these deals, when these districts or private schools or even national schools are looking at it. They want the platform.
They want a student system. They want an LMS. They want ability to do enrollments, they want analytics. They won’t want college and career planning. And we are a unique company even globally, which has this full depth and breadth of the platform with best in class. And that’s why we are seeing a lot of great opportunity. One of the big things also we see in the pipeline, we have literally country-level opportunities. So, we definitely see that to be a big differentiator. I think some of the more mature markets like Western Europe, especially U.K. and all, they are established players, but those are also the markets where we don’t see a very high level of growth either. But that’s why we are investing in these high-growth areas where there is not much strong competition.
