Operator: Your next question comes from the line of Rishi Jaluria with RBC Capital Markets.
Rishi Jaluria: I wanted to ask 1 CRM question and 1 non-CRM question to balance things out. So on the CRM side, maybe I want to ask a little bit more explicitly, right? So the non-compete goes away in 2025. Salesforce has obviously been vocal about wanting to get deeper in vertical software. They’re obviously trying to find more avenues for growth now that the market continues to get saturated away. How should we think about the potential for over time sales force to actually become a competitor and start selling their solutions directly into life sciences, whether it’s the out-of-the-box functionality or actually verticalizing the solution themselves. And then I’ve got a follow-up.
Paul Shawah : Yes. Rishi, this is Paul. So yes, the way that — first the way to think about the — our partnership with Salesforce, a very long history of a really great partnership with Salesforce. And the agreement goes through 2025. And through 2025, what that means is we are Salesforce’s preferred partner for the life sciences industry. So I don’t expect that to change at all between, certainly between now and then. We can’t comment on where Salesforce decides to invest, and how they decide to focus after that. So I don’t see any change there. We do know that the life sciences space is — it’s a highly regulated, very specialized industry. It takes a lot of time to get it right. It’s a complex space. We’re the market leader here, and we expect to make the transition super easy for customers and continue to innovate here. So we can only focus on our horse and not on what others do.
Rishi Jaluria: Okay. That’s totally fair. And then, Peter, in the prepared remarks, you talked about maybe some of the progress that you’re making on the CDMS side with CROs I was wondering if you can expand on that, what you’re seeing out of them? And maybe has there been any pushback from CROs to adopting the CDMS solution so far? What needs to happen for that to become a significant part of that business?
Peter Gassner: Yes. CROs, we just get continued interest and momentum in the CROs. Now they’re not — they’re going to be somewhat hesitant, somewhat not hesitant, but measured in their response. They have their policies and procedures that are set up the way they do things with their existing vendors. So change happens a little bit slowly there. But what is causing the momentum is more sponsors asking about Veeva, more sponsors asking about Veeva and then some of the CROs seeing proof in that it’s actually more efficient to operate with Veeva. So I think it’s just a slow gradual change. The CROs, in general, will tend to use the market-leading technology. I think Veeva is on its way to being the market-leading technology and and the CROs will come along with that.
Operator: Your next question comes from the line of Jack Wallace with Guggenheim Securities.
Jack Wallace: One more on the at Salesforce. Just trying to think about kind of why now to make the change in re-platforming to Vault. I think I understand the the reasons why the switch. But why now? Why not before the last contract resigning? And were there inflationary pressures going forward that you wanted to avoid and because the cost savings better and maybe a better platform in-house. Just thinking about the timing around the change in platforms.
Peter Gassner: Yes. In terms of the timing, first, it’s always good to make changes when things are good. The application is strong, the customer feeling is strong. So that’s a good time to make a change. Also, if you look at why now versus 5 years ago or 4 years ago, the Vault platform is very mature now, very robust now. And we have safety going and we have CDMS going. Maybe 4 years ago, maybe the Vault platform maybe you couldn’t have done that because maybe it wasn’t quite mature enough and also it had safety in CDMS really stressing it out about 4 years ago. So I think that would have been too early. And why now is why not wait? I guess that’s the other question. It’s the right time. It gives our customers plenty of time to move, plenty of heads up.
Vault platform is clearly ready and it’s just timing. We can have a better customer experience and a better application. The bulk of our application revenue now, as you saw from the Analyst Day, is on the Vault platform, and its own — that percentage is only increasing. So it’s time to bring CRM in the fold. It will be better for Veeva and our customers. It’s just the right timing.
