Joe Del Preto: DJ, I also realized I didn’t finish the second part of your question, which is departments and it ties to what Justyn was talking about. But the answer is yes, we are getting into more departments than a few years ago. So when we go into Justyn’s point, there certainly will be in care, but we’re talking to marketing departments, we’re talking to oftentimes sales departments, or it could be across the enterprise depending on the potential use cases for social. And for us, that’s a really important part of the new business cycle because rather landing them larger in these multi-departments with different use cases, or receding and growing knowing that we’ve opened up the opportunity to grow that, to expand that account later over time.
And so a lot of the logos that you heard from us today, we’re selling them are multi-departments from the get-go from a new business perspective. And then some of the logos that we talked about today were actually current customers, you’ve heard us talk about them before, where we’ve gone in and sold the different departments later on that had different use cases. So definitely see that as an important part of our go-to-market strategy.
David Hynes: That’s great. Thank you guys for all the color.
Joe Del Preto: Thanks, DJ.
Operator: Our next question comes from the line of Adam Hotchkiss with Goldman Sachs. Please go ahead.
Adam Hotchkiss: Great, thanks for taking my questions. I guess we’ll start on the enterprise side and in the 50K plus deals category. I know you’ve talked about hiring aggressively here. Could you just talk a little bit more about the key drivers and what they’ve been in some of these much larger enterprise deals, how you’re thinking about contributions from things like sales for some of your other partners and being more aggressive on the outbound direct side and anything you’ve learned as you’ve grown your team there or any color would be helpful.
Justyn Howard: Yes, thanks Adam. Clearly, we’ve seen a lot of success with our enterprise team. We’ve mentioned them a little bit in prepared remarks, but we just look at the growth rates in the 50K as you mentioned, but also just enterprise in general going at over 50%. We’ve been very excited about the market opportunity that we have in front of us. What’s really exciting about this is our products are perfectly positioned for these enterprises. And as we’re going into these enterprises, similar to the question that DJ had before, because we’re going into multi-departments, we’re getting access to many different users. And those users have very different use cases. So the ability to have an elegant and approachable software like Sprout makes a difference.
The idea of being able to get these folks up and running in the platform before they sign a contract makes a difference. And so when we think about the profile of the enterprise reps that we have on our team, clearly they have some great skills around understanding social and best practices for the enterprise. Our deals move faster than most enterprise organizations. So we expect those reps to have a certain level of speed to them in the way that they execute and to manage more accounts and transactions and deals than they might have at another legacy enterprise player. So the speed and velocity of our business as well as the depth and understanding business strategy is really important for our enterprise team. And we’re seeing really good success as demonstrated in the logos that our teams being able to win.
Adam Hotchkiss: Great, that’s really helpful. And then just on Social Studio, appreciate the update on new logos there this Fall. Just curious if there’s any update on the way you’re thinking about conversions over the next 12 months and the impact of growth as we think about modeling. Thank you.
Ryan Barretto: I’ll start on the business side and see if any of the others have anything else they want to add. From a Salesforce partnership perspective, we continue to see great success there. We mentioned it before, but the Social Studio piece with obviously the sunset coming next year is certainly the immediate opportunity where we’re seeing good execution. But we go into the full opportunity, which is all Salesforce customers. And our goal really is to build a partnership and product integrations that ensure that any Salesforce customers that’s investing in Social sees Sprout as the very best choice for their business. And that’s what we’re seeing in the marketplace. I’d specifically call out the work that we’ve been doing with the service cloud.
And obviously, our integration today lives within the service cloud console itself. And that native integration is adding tremendous value for customers. We’re getting customers up and running very quickly there. And they’re really going from a 270 degree view of their customer to the full 360, because they now have this social engagement data from Sprout tapped in. And so we can see success and opportunity there. We’ll focus in on both social studio, but outside of that the entire ecosystem of customers that may be on Salesforce.
Adam Hotchkiss: Great, really helpful. Thanks, Ryan.
Ryan Barretto: No problem.
Operator: Our next question comes from the line of Parker Lane with Stifel. Please go ahead. Your line is open, please go ahead. Our next question comes from Robert Michael Morelli with Needham & Company. Please go ahead.
Robert Morelli: Hey, yes, this is Robert Morelli on for Scott. Thanks for taking the question. Understanding you focused on hiring recently into the next quarter, how are you looking at your 2024 S&M investments and overall the market strategy? Or you think of the year will entail, no more investment or should we expect more leverage in the model? Thanks.
Joe Del Preto: Yes, I can take that one. And then RB wants to give color of the key investment there is I think overall, we’re not going to get too much into 2024 as far as guidance and what those numbers might exactly look like. But what I can tell you is based on the momentum we’re seeing in the business right now, especially upmarket, you’re going to continue to see us invest in the enterprise, in the mid-market, and integrations, and a bunch of other stuff that RB can touch on. And so what you will expect to see is a little bit of leverage overall. Off-tail is a marketing, not a lot, just given what we’re seeing in the business and the opportunity. And we’ll give you more color as we get into Q4 guidance, or I’m sorry, 2024 guidance next year.
Ryan Barretto: Yes, and I think I just underlined Joe’s points there. I mean, it’s going to be a consistent strategy. We certainly see these opportunities across the mid-market and enterprise, but all of our market segments have been performing nicely. And so a consistent approach to how we’re going to invest going in the next year, and we feel really good about the motion that we have today. So no major changes to call out.
Robert Morelli: Got it. That’s helpful. And then regarding AI, any insight you can provide on customer feedback and demand trends with your AI assist functionality? Thanks.
Justyn Howard: Yes, this is Justyn. So AI, I would say continues to be certainly a topic of interest across our customers. I think I would characterize that mostly as starting to get their heads around how it may improve the tools, their day-to-day workflow and processes. We’ve gotten quite a few new releases that are powered by AI to our customers’ hands over the last couple of quarters, a lot more coming. The way that we’re thinking about this is we have a lot of foundational things that, as I mentioned, we’ve gotten into our customers’ hands. We’ve built a lot of really powerful back-end that’s going to start to power some really, really cool capabilities for our customers that isn’t just going to help them do the things that they were already doing day-to-day, but unlock some entirely new opportunities and capabilities for our customers.
