I think as Donna mentioned earlier, our plans are not contingent on new states. They’re also not contingent on winning contracts from competitors or others. So I think we feel pretty good about our plan to hit our long-range targets without having to resort to those tactics. As far as the tech bootcamps go, I think yes, the overall market, what we’re experiencing is indicative of what’s happening in the overall market. I think it’s changing pretty quickly in the sense that people are learning about how AI is going to impact things pretty quickly here. I think people are realizing, by the way, how expensive, AI can be building a large language model could be pretty expensive. I think we are trying to take a very foundational approach to investing appropriately, but investing for outcome, investing for return, investing for our customers.
It does not mean, I think, having splashy announcements around AI. I don’t think that’s the right strategy for us. I think those splashy announcements have hurt the tech bootcamp space a little bit because of the promise of what AI might be able to do and how it might hurt that industry. I think what we’re finding as time goes on is that there will be a place, there is a place for skills training broadly, specifically skills training in the tech space. And I think that the bootcamp type of approach has its place long term for that skills training in the technology space. I think we’re seeing now the corporate side of the space, the B2B side, some interesting opportunities. I think people are realizing that the technology landscape in terms of development is not going to probably turn on a dime.
I think the biggest technology companies have very significant competitive advantage there. I think the rest of the world is going to be a little bit of a slower lower migration path. The war for tech talent, I think, continues to be very, very challenging. I think the migration to technology talent to AI is creating some opportunities. So I guess, in short, I would say that I think that there is a turnaround here. I don’t know that I could predict that it’s going to happen next year per se, but I think there’s a long-term strategy for growth here that we see and that we think we can take advantage of.
Tom Singlehurst: That’s very clear. Thank you.
Operator: [Operator Instructions] We’ll take our next question from Stephen Sheldon with William Blair.
Matthew Filek : Hey, James and Donna, you have Matt Filek for Stephen Sheldon. Congrats on the nice quarter. And thank you for taking my questions. To start, can you provide an update on tutoring and share some thoughts on when tutoring might become more material to the story?
James Rhyu: Yes. I think — so our approach to tutoring is sort of twofold are, I’ll say, more traditional tutoring solution, which is the — for us is actually, I think, still somewhat distinguished in the marketplace in the sense that our traditional tutoring solution, it’s an online solution that uses state-certified teachers and we see now a number of states putting money behind those types of programs. And I think that we are getting some decent traction there. We’ve won a number of new clients there. I don’t think it’s going to — it’s in the next year or so, it’s going to become material to our $2 billion-plus revenue line, but I think it has the potential to be a significant contributor over time. And we’ve seen — we saw some good growth this year.
We see some good contracts coming up for next year. And then we’re getting really good customer feedback on it. I also think the competitive landscape for it is evolving a little bit in the sense that you see some new players coming in with AI products. I think we have yet to see an AI product in the tutoring space, really hit the mark, if you will that’s the other pillar for us. We are also looking at how we can deploy some of our content in an AI tool using a small language model that’s proprietary that we think we can augment our tutoring offering with. I think that we see what our clients are saying is that some of the quality of the products in the marketplace are forcing some of the districts to go out for bid. There are some concerns, I think, with some companies that have — whether it’s foreign ownership or whatever, and I think we’re seeing some of that.
So I think that we’re seeing opportunity there as well. So I think for us, tutoring is a good long-term opportunity in both the traditional sense and sort of a new technology, innovative way, and we will continue to pursue and invest in it.
Matthew Filek : Got it. That’s helpful. Great to hear the initial traction has been strong. Just as a quick follow-up to that, though. Can you remind us your plans on delivering the tutoring services to non-Stride students? Is that something that students would come directly to Stride for? Or could those tutoring services possibly be delivered through integrating with learning management system or something like that?
