Claire Bramley: Yes. Thanks, Tyler. So naturally, we are pleased with our performance in the second quarter and for the first half. I think a lot of that is coming from improved linearity though. It has been a focus for us to try and improve the linearity and take some of that growth out of the back half of the year. So we’re pleased with the progress that we’re making there. I think also, as we’ve mentioned on the call, we’ve got easier compares. We’ve got much better linearity this year and so the compares in H1 are much easier than H2. We still have a lot of growth to deliver in the back half of the year, both from a total ARR standpoint and particularly from a cloud ARR standpoint. So we do believe, as a result, the midpoint about output remains our best view of the full year.
And it also gives us some room to make sure that there’s no surprises as we close out the year. So the macroeconomic environment seems to be stabilizing, but can still be very volatile with many companies continuing to scrutinize their spend closely. So we think it’s important to be prudent. And we’re pleased with the fact that we’re improving the linearity and have good line of sight for our full year outlook.
Operator: Thank you. The next question will be from the line of Patrick Walravens with JMP Securities. Your line is now open.
Owen Hobbs: Hey. Thanks for taking the question. This is Owen Hobbs on for Pat. So I was wondering kind of returning to the theme of AI, if you all feel that you have enough PhD-level AI talent to capitalize on the opportunities you see there?
Steve McMillan: Hey, Owen. Thanks for the question. Yes. Fortunately, from a Teradata perspective, being a global company, having 7,000 employees around the world that are all focused on making sure that we get the – our customers get the absolute best from data and analytics I mean that’s been our passion. That’s been our core for over 20 years. And so we’ve built up that capability across the world. We’re very proud of our consulting capability and execution capability. But also I’d point to the fact that we have a partner first strategy and we’re working with the world’s leading SIs like Accenture to work on our platform and work on delivering business value for our customers. The technology platform that we have in VantageCloud is designed to democratize artificial intelligence and data science so that you don’t need to be a data scientist to get the best or to deploy artificial intelligence or complex models.
You can utilize the tools and work bench that you – that those organizations already use. And so a combination of our – the people capability that we’ve got inside the company, our partner strategy, plus our technology strategy, we believe, is a winning formula to help our customers get the best from artificial intelligence, large language models and what they have to deploy in the future.
Owen Hobbs: Thank you.
Operator: Thank you. The next question will be from the line of Nehal Chokshi with Northland Securities. Your line is now open.
Nehal Chokshi: Yes. Thank you for taking the question. Nice quarter. I want to focus on a little area of the competitive landscape, and that’s particularly in the area of data prep. What are you guys seeing in that area? And how do you see gen AI impacting that area as well?
Steve McMillan: Yes. I think one of the reasons that we bought Stemma was for some of those reasons and exact challenges. If you think about Stemma, the two challenges that Stemma addresses for a customer is data discovery. So actually fan in the data and say the ecosystem and then ensuring that you’ve got data lineage on that data. And when you think about trusted AI or ethical AI, those capabilities are absolutely essential. So bringing the Stemma [indiscernible] and the capability they have the people to the technology that they’ve got is a great addition to the Teradata platform in terms of the solutions that we can deliver to our customers. So it’s a continuing evolution. And that data prep, the feature engineering from a data perspective is something that the Teradata platform is super strong.
