We’re continuing to see that grow. From a materiality perspective, these deals are smaller in size. We’ve always kind of characterized them as being smaller in size, start small and grow quickly. And we see that pattern continuing. We’re not overly dependent on new logos for execution and to get to our Q4 number. We’ve got the pipeline and visibility to the pipeline for execution for Q4. And certainly, it’s our objective to continue to grow new logos as we go through 2024, so that it becomes more and more meaningful in terms of the overall results of the company.
Operator: The next question is from the line of Matt Hedberg with RBC Capital Markets. Your line is now open.
Matt Hedberg: Steve, for you, maybe just stepping back a little bit. You’ve talked a lot about your lake strategy and obviously, from a warehouse perspective as well. Can you talk about sort of fast forward several years, how do you just kind of see the whole debate on the warehouse versus Lake shaping out kind of over the medium to kind of longer term?
Stephen McMillan: Hi, Derek, we love that question because our technology set is going to enable us to deploy the best enterprise data warehouse the best Lake and the best Lakehouse solution for our customers. So we see that as a convergence over time. So super exciting to see that manifested in the marketplace. We’re also really interested in seeing how open table format is going to continue to enable that. So I think it’s an awesome time in the marketplace. And as we look out in the future, I think a lot of convergence between those deployment options. So Matt, thank you. Thanks very much for the question.
Matt Hedberg: Sure. And then, maybe Claire for you. On the call, you addressed this, but maybe just a little bit more color on kind of the impact of upfront recurring revenue on your revenue outlook targets 2023.
Claire Bramley: Yes, absolutely. So in the quarter, from a year-over-year standpoint, it was flat with last year with a net negative of $11 million. And that is actually, if you think about where we were quarter-over-quarter, that’s an $8 million incremental net negative quarter-over-quarter. So you can see that kind of in our growth rate and the impact as you look at it quarter-over-quarter. As we think about Q4 and the rest of the year, I’m expecting it still to be a net negative impact in Q format, but slightly less than what we saw. Slightly less than the $11 million in Q3, which would mean that the full year is still positive but a lower positive than we saw in fiscal 2022.
Operator: The next question is from the line of Derrick Wood with TD Cowen. Your line is now open.
Derrick Wood: Maybe, Steve, just it would be helpful to get an update on your newer partner efforts, how those are tracking, where you see kind of new channels developing through over the next 12 to 18 months, whether it’s SIs or hyperscalers or anything to call out?
Stephen McMillan: Yes. Thanks, Derrick. I think I’m really happy with how our partner ecosystem is continuing to develop. I mentioned in my prepared remarks that we saw a great growth in that partner ecosystem, both from a consulting and SI partner, but also from an ISV perspective, but also regional partners are starting to come into play as well. And then it’s great that our strategic partnerships with the likes of Dell are starting to drive business for us as well. The new logo business has been driven from an on-prem perspective that enables us to offer a true hybrid cloud capability. We had lots of partners join us at our marketing possible events during Q3, some great attendance and great interest in terms of the solutions that are being deployed on top of the Teradata system.
All of those partners are clearly interested in utilizing that wealth of data, which is in the Teradata ecosystem to fuel all of these new analytics use cases and AI use cases as we move forward. So I think we’re very, very happy with that and how the partner ecosystem continues to evolve.
Derrick Wood: Great. And either for Steve or Claire. Just was hoping to touch on the kind of performance by geo, as I know there’s different dynamics with cloud and on-prem and migration shifting, but America is up 11%, EMEA, up 3%, APAC down 8%. How would you just kind of characterize the puts and takes across the major geos this quarter?
Claire Bramley: Yes. So I’ll start, and then I’ll let Steve comment if you have anything to add at the end. So to your point, we saw in constant currency and had strong growth in the Americas of 11% in the quarter. EMEA is also doing well. We’re seeing good traction in EMEA both especially in the cloud area. And we saw 3% growth in constant currency in the quarter. APJ did decline. As we’ve mentioned before, we have been winding down our operations in China. And so actually, all of that negative growth impact is being driven by China. If you look at it without China, they were actually flat in constant currency in the quarter. So we’re seeing a little bit less traction from a cloud stand place in some Asian countries, but areas like Australia and some of those countries are also doing particularly well.
So we are very pleased with the mix that we’ve got across all of the 3 regions. However, we are seeing an APJ impact from China in the quarter and in fiscal 2023. It’s not material for a total company. It just shows up when we look at the APJ results. So Steve, if you just want to add anything else in terms of overall regional trends?
Stephen McMillan: Yes. I think good consistent execution across all of the geographies and across all industries. Just adding on to that point from a China perspective, we’ve taken all of the actions there. It’s tighter than all of our guidance. So we’ve taken those difficult decisions and enables us to focus on those strategic cloud-based revenue streams in those markets as we move forward. We’ve got a great leadership team in place from an international perspective, and we’re seeing really good execution across both the Americas and international from an execution perspective.
