Daniel Amir: Thanks. Our next question comes from Parker Lane at Stifel.
Parker Lane: Perfect. Jim, how significant or material has the Capgemini partnership been in delivering successful projects around industries? I know this is something that you guys really wanted to emphasize with a third party. So is that shortening the time for people to deploy industries products, improving the scope of those projects? What is that looking like?
Jim Whitehurst: Well, we closed April 30. So in the last nine days, I mean, honestly, we haven’t had a chance to see a lot there. What I will say is having kind of lived this movie before, I think if you look, most enterprise or I’m talking about enterprise software, but infrastructure companies accelerate their business when they have partners who take that infrastructure and deliver bespoke solutions for customers. I don’t think it’ll be any different for us. We offer an extraordinary solution to visualize real time, your kind of interactive 3D, whether that’s creation through viewing. The use cases, there are a few standardized ones, taking all your PLM tools and having a common viewer. That’s more of a true product thing.
But the vast majority of this will be kind of custom applications that are delivered by SIs. So I have high confidence in it. I think we’re excited about it. But literally, we just closed April 30. And so, again, beyond high confidence, nothing’s changed in the last nine days enough to kind of give you an indication on deal sizes or links and those things. But we continue to be optimistic.
Daniel Amir: Thank you. So next question, Josh Tilton from Wolfe.
Josh Tilton: I just want to, I kind of want to follow up on a question I think that was kind of asked a few different ways in the beginning, but just very directly. And what I’m just trying to understand is, is your confidence around the second half acceleration grow coming strictly from the improvements that you’re making and your expectation for these improvements to help improve growth? Or is it because you’ve made these improvements and you’re already seeing it somehow change customer behaviors today? And if it’s the latter, can you just help us out, give us a sense, give us a flavor, just an example of how these improvements are already changing customer behaviors to use these products?
Luis Visoso: Yes. I mean, at the end of the day, they’re not yet showing open revenue, right? Otherwise, you would be seeing it in Q1. And what we’re telling you is that it’s not going to happen until the back end of the second half of the year. So our AP testing is encouraging. We continue to show particularly, we’re improving the sophistication of our complex machine learning models and infrastructure and using more data, as I mentioned just before. So we’re seeing those benefits, but they’re just not yet at a scale, what is showing up in our revenue.
Jim Whitehurst: Yes. I’m trying to give you just an example. Yes. And it’s a lot of little things. So we did some work on the performance of our Playables ads, made a tremendous improvement. And so we have a couple of customers in particular who are really excited to see that and are working with us to want to kind of scale this out much more broadly. And so it’s those things where they’re small, but they’re real on real data, live experiments that we’ve done or figured things, kind of trials that we’ve done that have shown real material results. And we have no reason to think that that won’t continue when we roll these things out at scale. So like Playable ads would be one. I want to be a little cagey because we don’t want to talk about details of the various areas where we’re working relative to competitors.
But it’s areas like that where it is real things, real tests run for multiple weeks where you see the results. And the reason I was just run a test and say, oh, let me throw it out there is, you run a test and you tweak because you want to get it as optimized as possible before you roll it out at full scale. But what we’re seeing in several areas like Playables has been extremely positive. And so we expect as we roll these out, we’ll see material positive results from them.
Daniel Amir: So next question, Matthew Cost from Morgan Stanley.
Matthew Cost: Hi, everybody. Thanks for taking the question. So I guess you’re obviously having a lot of conversations with customers right now. I think you stated that kind of at the beginning of the script. One thing that Unity as an institution has talked about historically is, how your customers are paying you less than 1% as a take rate of their revenue. And mathematically, given how much value you provide, they should be able to pay more. I imagine you’re probably in those conversations with advertisers right now, kind of testing and going back and forth about what they are willing to pay you kind of along the lines of what you’re saying. They understand that it’s important for Unity as a product to invest for the good of the industry.
So I guess, how should we in the financial market think about what your customers are willing to pay you? How are you dimensioning that in the conversations that you’re having with them right now? And how should we think about it? Thank you.
Jim Whitehurst: I’ll start on that. Look, I’ve been frankly trying to stay away from those conversations. To talk about a fixed pie and the fact we’re not getting our fair share in a fixed pie is a really lousy conversation to have because that means you’re talking to your customer about kind of giving some of their pie to you. I think the better and broader way to think about it, and Luis alluded to it before, we’re not talking about create and grow internally and we’re not talking about with our customers. We’re talking about what can we do and what is a very difficult market for our gaming customers. How can we help drive their success by what we can bring to bear? Whether that’s about how to build games that are more immersive, so better games, how to build games faster, how to build games with lower development costs, how to accelerate the ability to monetize against those games.
