Operator: Thank you. Our next question comes from the line of Elizabeth Porter with Morgan Stanley. Please proceed with your question.
Matt Saltzman: Hi, this is Matt Saltzman on for Elizabeth. So I’d love to just touch on some of the renewal headwinds that you all are seeing? You previously highlighted the expectations for our net dollar expansion to be under pressure from some of those moderating renewals and upsells. So I’m just curious, the downsell pressure incrementally more than you expected? And just any sense for why now when we’ve been hearing from a lot of your software peers over the last year, talk about this dynamic. So just curious around the timing of it now and also just versus your initial expectation? Thank you.
Manish Sarin: Yeah. That’s a good question. So let me start and then Ragy might chime in. So first, I want to be clear, we’re not seeing logo channel. We’re just seeing a reduction in the number of seats as an example. And why now? Well, you’ve seen a lot of corporations pull back on headcount, there have been layoffs across the economy. Q4 tends to be our biggest business, both in terms of renewals and new business. And I suspect what is happening is when those contracts are up for renewal, which for us happens to be in Q4 we’re seeing a downdraft in terms of the number of seats being renewed. So I think that’s point number one. And then as Ragy was saying, there are quite a bit of macro challenges, particularly as we look at the marketing and advertising suite.
We sell volumes here. So it’s not really seat-based. And again, companies are looking to advertise less, just given the macro and that’s pulling back the ARR that we ascribed to that product suite. Hope that helps.
Matt Saltzman: Got it. Yeah. No, that’s very helpful. And just maybe as a quick follow-up. When you think about the pressure on some of those seat-based renewals, is there any opportunity to potentially move some of those seats into separate SKUs that maybe the customer will utilize more to maintain overall ACV? I’m just, I’m curious if there’s any discussion internally about pursuing avenues like that to just maintain overall retention levels. Thank you.
Ragy Thomas: Yeah. That’s an exciting thought. Our approach here as we kind of bring a fairly disruptive new product to a new buyer is to not confuse them with the new model pricing model. So we’ve started by, there are some products that are just flat AI-based conversational bots, et cetera. But we’ve tried to keep the pricing model parity with the market sees. But I agree with him, and I think there is some upside for us as we as we get to scale in our CCaaS side, there is opportunity for us to revisit pricing. And that’s not something we’re willing to comment on right now.
Manish Sarin: Yeah. And let me make sure, was your question that at renewal time, are we trying to offer them additional SKUs to maintain ARR? Was that the question?
Matt Saltzman: Yes, partly. I think, but your answer also addresses it.
Manish Sarin: Yeah. And I think to be clear, that is one of the plays we are running. So we are constantly, as you’d recall from our prior earnings calls, upsells for us has always been a very strong suit. So we are constantly figuring out ways to either maintain as what we’re doing now or increase [ARR in] (ph) accounts. So offering them additional product suites is one of the players where there’s a number of other players we are running, and again, this is part of the reason I was saying just given where we are and the limited visibility in how this plays out for the remainder of this year, what is captured in the guide is the situation we see.
Matt Saltzman: Understood. Thank you.
Operator: Our next question comes from the line of Matt VanVliet with BTIG. Please proceed with your questions.
Matt VanVliet: Good afternoon. Thanks for taking the question. I guess when you look at the success of the contact center product on Sprinklr Service here, any help in terms of the mix of existing customers that are buying that versus this as a tool to land at new logos? And how do you think about that going forward?
Ragy Thomas: Not surprisingly, I think it’s 50-50. We’re surprised to see brand-new companies involved and include us in a contact center RFP. Usually a late addition is usually coming from an analyst who’ve seen the product saying, you guys got to take a look or our reps calling in or someone who’s tried us, the few that have tried us that have been impressed. And so the answer is there is a surprising number of sort of net new RFPs we are beginning to get in. And then there is always a customers that have been using us for social and digital care. And are also expanding into voice with us. But I’ll tell you a new category that potentially has some upside, and we’re beginning to look at them, are the large BPO players. And these are things that there’s an established market that’s 20 years old. So we’re seeing more traction early, but more traction from the partner sourced so the leads for us. And so that’s something that we’re excited about.
Matt VanVliet: Okay. Very helpful. And then when you look at the partner community, it seems like they’ve been pretty instrumental in helping some of the growth here on the contact center side. But did, were you also sort of refocusing them in that direction and maybe they also took their eye off the ball on the social and marketing side? Or anything that you think your internal sort of sales focus influenced performance by the partner community as well?
Ragy Thomas: Yeah. Yeah, it’s a good question. And actually, let me just take a step back, right? It’s obvious that we’re going to go through an air pocket here. And that’s the nature of the beast as we transition from a set of buyers that were largely marketing-based or like social customer service and digital customer service base. Now we’re talking to the guy who runs the contact center, who like kind of didn’t know that Sprinklr existed till about three to six months ago. And that curiosity and that growth is what we think was worth the effort. Having said that, the partner ecosystem is the same way. They are transitioning of very long-term established partnership and trying us up. So I think a lot of this air pocket situation for, let’s say, up to a year or so can be explained by making that transition and landing it right, where we’re still developing our playbook and a blueprint to enable partners right?
