Mike Chang: Our next question comes from Sterling Auty at MoffettNathanson followed by Kash Rangan at Goldman Sachs.
Sterling Auty: Great. Can you comment to what you saw in terms of pipeline — sales pipeline development through the quarter? And how does the kind of strength and maturity and health of that pipeline look coming here into the third quarter versus what you saw coming into the last couple of quarters.
Dominic Phillips: I would say it was pretty consistent. Obviously, Q2 was a step up from a really strong Q1 and conversion rates and pipeline generation and going all the way to things like free trust in the conversion of that in the bookings was fairly stable and consistent. And as we look in the back half of the year, especially coming off of our Beyond customer conference, we continue to see good pipeline and good customer demand.
Sterling Auty: And then just one question on the tech stack, you talked about the integration on the operations side, six additional systems. At this point, what is the next kind of key milestone that we should be looking at from the outside in terms of additional either integrations or tech partnerships that you need to kind of drive the next level of adoption for the operations cloud outside the vehicle?
Sanjit Biswas: I would say, first of all, we have over 240 technology partners on our app marketplace. So these are integrations that essentially work out of the box for our customers. There are always more that our customers ask us for as we continue to penetrate new vertical industries. Dominic mentioned public sector is an area that we’ve been investing and it’s going well. As I meet with customers, I always hear about a new piece of software they’d like us to connect with. So I think we’re still in that early phase of getting connected and getting this data to flow across systems. As far as unlocks, I think a lot of it comes down to helping our customers realize even more ROI from this data. For many of them, this is the first big data initiative they’ve had.
They’ve been in business for decades or in some cases, 50 or 100 years, but they’re not as familiar with using modern technologies, using devices out in the field and getting reporting in the back office and changing their operations that way. So I think that unlock is showing them how to get even more value from this data.
Mike Chang: Our next question comes from Kash Rangan at Goldman Sachs, followed by Jim Fish at Piper Sandler.
Jacob Staffel: This is Jacob on for Kash. Really, really good quarter. Just a couple for me. One, the large customer momentum, large customer count saw a very pronounced momentum this quarter with another record quarter of ads. Is there anything to call out — anything to call out around that number? And then, can you touch on how many of those large customers were existing versus new customer adds? And then another question around the sales force, I believe, in the second half of last year. It was mentioned that you started to bring on some additional sales capacity. So those should be ramped by now, I believe. So maybe touch on how those new ramped reps or faring relative to expectations? And anything to call out around that would be great.
Dominic Phillips: Sure. So it’s Dominic. So, the 140 new $100,000-plus customers, I think roughly 60% or just under 60% were existing customers and a little bit more than 40% were new logos. In Q1, I think it was more like 70% were existing logos and about 30% new. So a little bit more new logo drivers of that $100,000 plus additions, which is in line with the seven of the top 10 deals being new logos and obviously, a lot of those being — all of those being over $100,000, so still pretty balanced, but a little bit stronger in terms of new logos this quarter. In terms of the sales capacity, we definitely have been adding more and more sales capacity and really started that process in the middle of last year. It takes roughly or so quarters to ramp for our sales reps to become fully ramped.
And so we should have more kind of fully ramped capacity as we go into the back half of the year. We definitely saw some benefit from adding extra capacity, even though it wasn’t fully ramped in the quarter to go along with improved productivity again in the second quarter. As we look into the back half of the year, I think we’re really excited about the extra fully ramped capacity. I think the question for us is just what does that do to overall productivity as you bring more and more people on your generally splitting accounts and cutting territories. And so really making sure that we’re tracking the overall productivity will be important to help us determine how to pace out hiring from here. But we’re looking forward to that in the back half.
Mike Chang: So, our next question comes from Jim Fish at Piper Sandler, followed by Alex Zukin at Wolfe.
Jim Fish: Jim Fish, Nice quarter here. I appreciate the details on the new versus existing base. When you look at your installed base here of roughly that 20,000 customer core customers, where do you guys think your wallet share is today? Or what’s kind of left to kind of penetrate overall and Dom, for you, how should we be thinking about expansion rates in the back half of the year and how they looked actually in fiscal Q2 here versus last quarter?
Dominic Phillips: Yes. So I would say saturation is still relatively low. When I look at the two largest expansions in the quarter, both of those were existing customers and they were licensing brand-new products that they hadn’t used before, and they were $1 million-plus expansions. And so, I think generally, most of our expansions comes from customers rolling out more licenses across a broader set of assets, whether that’s new subsidiaries or new geographies. And so to see them also come back and add additional products was great to see. And so I think there’s obviously a lot of opportunity for us to continue to grow within our existing customers. On the retention rates, again, it’s been fairly stable as we called out in the shareholder letter.
For Q2, we were ahead of our targets of 115% for core customers and 120% for large customers paying more than $100,000. And so again, almost 50-50 on expansions and new logos, and that continues to be a big part of our business.
Jim Fish: Makes sense. And just a follow-up on the public sector announcements here. Understanding it was more on the state side, and you guys have talked about this public sector opportunity for a little while. Obviously, with this upcoming quarter being the kind of federal budget flush. I guess what are you seeing in terms of interest level from the federal side of government at this point? Anything to add there?
Sanjit Biswas: So Jim, this is Sanjit. It turns out when you look at the physical operations addressable market for government, is actually more centered in state and local because that’s where a lot of these municipalities are kind of maintaining the roads, and they’re running the waste management services and so on. So that’s our primary focus is working with state and local agencies. And you’ve seen that. We announced the State of Tennessee earlier. We just talked about New Jersey Transit. So that continues to be our focus. At some point, we will continue to grow in the Fed, but the primary focus for us is ladder state and local as well as education, which includes K12.
Mike Chang: Our next question comes from Alex Zukin at Wolfe followed by Junaid at Truist.
Alex Zukin: Can you hear me okay?
