Keith Housum: All right. Thanks guys. I’ll turn over.
Operator: Please standby for our next question. Our next question comes from Mike Latimore with NCM. Mike, go ahead with your questions.
Michael Latimore: All right, great. Thanks. It looks like another good quarter of CCaaS and UCaaS billings growth. I guess, can you just talk a little bit about the sales cycles you’re seeing there? Has there been any change in sales cycles for either one or both those categories?
Mike Baur: Hey Mike, it’s Mike Baur. No real change in that, but what I would say is we’re doing a lot of educational seminars around the country, as you probably know. And no surprise, the big story is about how is AI going to affect our business, and the place that everyone is wanting to hear about is AI and contact center. So we’re getting a lot of traction with interest. We’re going to see how that affects really results, but the contact center story and the contact center space remains very attractive to our agents. They want to learn more. We’re having — again, we’re having tremendous attention and attendance at these events. And we’re continuing to make sure we’re building our team out, so that we learn more about how contact center is probably the best example can utilize AI to drive future revenues.
But I think, again, the idea is we see a longer sales cycle when this technology change happens, for sure, because now there might be some hesitation of do I buy what’s available today? Or do I wait another six months or 12 months? And so I wouldn’t be surprised to see some of the transactions slow down. But as we just reported, it was still a very strong growth with our partners. And that’s the beauty of this Intelisys recurring revenue model is we’re building off of that base every quarter and that’s why we’re very attracted to this space.
Michael Latimore: Yes. Yes. How about the pipeline? Any comment on just pipeline growth in UCaaS and CCaaS?
Mike Baur: Well, we don’t typically give out the pipelines. But again, if I just think about the overall opportunity, and that’s one reason that we are excited about this new entity and being closer to the end user, Mike, is we believe we’ll benefit from understanding better what the end users are thinking about relative to CCaaS and UCaaS and I think that will help inform us for some of our decisions about the future. And what I hope will happen is we’re going to develop some best practices to help our Intelisys channel close business actually faster. And that will be one of our goals with some of the tools.
Michael Latimore: Great. And just lastly, you talked about some pricing pressure perhaps related to consolidation in the industry. I guess, can you talk about pricing at the end user? Are you seeing pricing pressure for the software vendors themselves and what kind of their charging in the UCaaS, CCaaS market?
Mike Baur: In general, I would say there is absolutely pressure on the seat prices continuing to go down. Significant pressure there. Agents have to decide — and let’s just go back to the obvious, a couple of years ago, UCaaS was growing at the rate CCaaS is growing now. So we can see that the unit price, the seat price going down, makes it harder to grow off the base. And I think that’s critically important because the channel needs to know how are they going to sell more in the future. They have to sell more seats for the same amount of revenue that they got two years ago. So definitely pressure on the seats, more on the UCaaS today, but CCaaS is also seeing that pressure at the end user.
Michael Latimore: Got it, got it. Okay, thank you.
Mike Baur: Thanks.
Operator: [Operator Instructions] At this time, seeing no further questions, I’d now like to turn it back over to Steve Jones for closing remarks.
Steve Jones: Well, thank you for joining us today. We expect to hold our next conference call to discuss June 30 quarterly and full fiscal year results on Tuesday, August 22 — 27 at approximately 10:30 a.m.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
