Connor Passarella: Great. I see. And this is Conor Pesarella on for Terry. Appreciate you taking the question. I just want to ask one as it relates to UB, curious on the uptake of badging and certification and how the adoption curve has trended there. Has it been coming mostly from the advanced L&D organization so far or has it actually been more mainstream with adoption coming from, I guess, a variety of organizations? Thank you.
Greg Brown: Yes, Connor, good question. Yes, we continue to remain very bullish and excited about the adoption of badging and certification as well as the probably most importantly the value and impact that it’s starting to have. I’ll give you an example. We’ve got a large, large multinational tech company that decided to run a side-by-side A-B test with 200 consultants and the A-B test was around AWS certifications. The first 100 ran through the process of educating themselves and then taking the certification the way they always had. And the second group leveraged our content and Udemy Pro, our immersive learning capability, to prepare them for that test. The group that used our technology, our platform, and our approach earned that certification in half the time and that half the time equated to saving 15 hours per person for the prep along the path of acquiring that certification.
So we’re starting to see meaningful impact of the combination of Udemy Pro and our validation capability around badging and certification. That’s just one example of many that are like that. And we are starting to see even more velocity and impact around us winning new business as a result of having the full complement on our platform of tech content, soft skills, power skills content, management leadership development content, all with the ability to validate and form a badging and certification that skills have been acquired. Again, coming back to our approach around skills development and developing that intelligent skills platform. So all to say, really excited about what we’re seeing and we expect it to continue.
Operator: [Operator instructions] The next question comes from Brent Hill with Jeffries. Please go ahead.
Dave Lustberg: Thanks. David Lusk for Brent. Thanks for taking the question. I wanted to ask you an automated Q&A and a little bit more about the strategy, about how you guys are building that and going about it. I guess, for one, are you building your own LLM? Or are you partnering? And I know you talked about it being used for answering instructor questions quicker for instructors to then look at and validate. But is there an opportunity to roll this out more broadly to the consumer in a way where it’s not necessarily course related but can help someone who’s just trying to understand any question? Thanks.
Greg Brown: Yes, good question. So effectively how it works, and I’ll keep this very brief, is we have trans. We automated. We develope We’ve automated the ability to develop transcripts associated with all 220,000 courses that are on our platform. We feed those into the LLM and that gives us the ability, obviously AI enabled, to light up the ability to answer questions as they come through instantaneously because we’ve got all the insight and information, the transcripts from all of the courses that our learners would take. And so really what that does, and we’ve got many instructors that spend upwards of 50% of their time a day, four hours a day, either themselves or their TAs, teaching assistants, answering questions. So it removes all of that time and energy that goes into answering those questions.
Now all they have to do is validate that the answers are accurate, make any adjustments, hit send, and off it goes. And we’re really excited about the level of accuracy we’re seeing in the early days. We know as we continue to educate the LLM, and that happens automatically, that the accuracy is going to improve over time. And do we have the ability to port this type of capability to the consumer experience? The answer is yes, and in a variety of ways. And we’re really excited about that. I mean, I’ll tell you one of the things we’re most excited about in the short to midterm is porting the badging and certification capability to the consumer experience so that all of that validation opportunity is now made available in that environment. In addition to all the capabilities we’re talking about now that we’re initially launching into the enterprise segment, everything that’s applicable, we’re going to port down to the consumer experience.
So you can surely expect the enhancements to flow down, and that process will not be elongated. We expect that to be a fairly quick process.
Operator: Thank you. The next question comes from Noah Herman with JP Morgan. Please go ahead.
Noah Herman: Hey guys, thanks for taking the question. With respect to linearity in the quarter, can you provide just some color on the top of funnel demand and conversions throughout the quarter? Thanks.
Sarah Blanchard: Yes, I’ll take that. Thanks for the question, Noah. So very typical with a fourth quarter, and any quarter, but you see this more so in the fourth quarter, the bookings come in the last month. And so from a linearity perspective, you book a small portion in month one, a small portion in month two, and then the most significant portion in the last month, and that’s exacerbated in Q4 as companies are figuring out their budgets for the next year. And so that’s what we saw and expected again in this quarter. And when we got down to that last month, that’s where we identified some execution issues where the bookings didn’t come in as expected. And in some respect, it was masked a little bit by the macro, but we are taking actions against that. And we expect to see that those initiatives take hold in the back half as we continue to invest in all the areas that are going to drive our long-term growth.
