Peter Levine: Great. Thanks for taking my questions. Maybe one, just a follow-up from the prior question, can you quantify the dollar number that got pulled forward into Q4 and then perhaps the same on the on-prem conversion side that got pushed out into calendar fiscal ’24?
Dan Bodner: Yes. So there were $5 million of deals that we expected in Q1 that came in Q4 close to $5 million, 4 something. And the majority of that was perpetual deals. So you don’t see them in the new SaaS ACV number. This ACV came at $24 million for the quarter. We expected about $12 million more based on our pipeline. And I would say half of that $12 million is conversions that got delayed and half is expansions that were either pushed or smaller scope. None of these deals on the $20 million, none of these deals was lost to competitors. So we have confidence that it’s timing. And also some of the deals already came in Q1, but definitely not all of it.
Peter Levine: And then, two follow-ups. One is just can you kind of explain or just give us a little bit more detail on the customers that are kind of having a smaller scope, like what are they pulling back on? Is it the seat count? Are they going with like one workforce or engagement? I’m just curious to know, like, what are they pulling back on. And then the conversations that you’re having, is it more of a, hey, come back to us in calendar ’24? Or is it more of a second half conversation? Just curious now what their appetite is to kind of come back to the table and then go full forward on the contract.
Dan Bodner: Sure. I’ll give you an example. So as you know, we have very large customers, and they have many divisions and very large workforces. So one of our customers that has our knowledge management product, who’s looking to expand into more divisions and add more people and bots to the license, and the deal on the table was $1.5 million. And the deal ended up, awarded to us at $500,000, so one-third. The balance is still something they want to do, but they said later. I don’t know that I have a specific timeline that I can be confident about it, but I do know that we are the standard product. They are a very happy customer and it’s just a matter of their priority and how fast they want to deploy the product into other divisions.
Peter Levine: Maybe just one last one. On the Google announcement, can you kind of maybe just tell us who was the bake-off with? Is this like an exclusive deal? And then with Google, are there any contract minimums that you guys have in place for them to hit? Thank you.
Dan Bodner: Yes. So I think the Google story is obviously interesting on a number of levels. One is the fact that Google has been our customers now for a while for the Verint platform. As a customer, I think they were able to see the strength that we bring. Then Google has been for a number of years, a player in AI in the contact center and they’ve decided to play bigger. So they were looking for a partner to resell. And I think our relationship in terms of being a vendor expanded to now Google reselling Verint. We are going to be enabling their sales force. And it’s obviously deal-by-deal, as we do with many other partners, we’re not just expecting them to resell on their own, but we will continue to collaborate on specific deals and have our salespeople and presales and experts side-by-side, helping Google, the same way we’ve been helping many, many other customers because as we said many times, we have an open and partner-friendly strategy.
And we’re not only providing our partners with good technology but also with great support in helping them to be successful. And vigilant, I think, part of the success we have.
Operator: . Our next question comes from the line of Ryan MacDonald with Needham & Company. Your line is open.
Ryan MacDonald: Yes. Thanks for taking my question and thanks for all the great color and detail on the outlook for ’24 here. Dan, maybe just starting on the deals where you’re seeing the delayed conversions or maybe some of the elongation there. Can you talk about sort of willingness and appetite for the remaining customers to convert over to SaaS? And then, are you seeing any instances on conversion delays where maybe there’s a reevaluation going on or any change in pricing or competitive dynamics there? Thanks.
Dan Bodner: The only thing we see right now, and I’ll give you an example because that tells the story, is just a desire to kick a tire again and again. So we had one of our large banks that has been the customer for many years and have made the conversion decision, I think a long time ago. Got to the final stages, which is have a security review of our cloud security. And that was planned to be completed in Q4. And at the end of that security review, they decided that they want to do another security review, not because we don’t have great security. We’ve been already converting many financial services companies to SaaS, and we know how to address their issues. But for this customer, this was the first time they were going to SaaS.
So we were one of the first vendors in their operations, they’re going to SaaS, and they decided that they want to take another review, which will take a few more months. Now we believe that the desire to go SaaS is based on better TCO for the customer and also the ability to innovate in this SaaS environment faster than they can on-prem. So that didn’t change. And I think the decision to move to the cloud with Verint didn’t change. But given everything else that’s going on right now in their environment, I don’t think they are trying to accelerate they’re trying to take the time. When I look at the pipelines for this year in terms of how many customers are interested in conversion, it’s actually growing versus the year before and prior year because the whole industry is moving to SaaS, and it’s just a matter of time.
But I don’t think that this decision was to take the time was related to Verint at all.
