Operator: Our next question will come from Ryan MacDonald with Needham.
Ryan MacDonald: Mike, maybe to start for you. Obviously, you’ve come in, you’ve made a lot of changes this year in terms of restructuring customer success, bringing in some new leadership to sort of build the pipeline as we go into next year. And it’s great to see that you’re starting to see some of those improvements on the gross retention side. Just curious, as we’re kind of looking into fourth quarter here, what you’re seeing in terms of the renewals? Obviously, it’s a big quarter for you. How are those trending? And then what sort of visibility does that give you in terms of fiscal ’24 and how we should start to think about maybe mix of growth versus profitability there?
Mike Walrath: So from a gross retention standpoint, we’re happy to see improvement there. We’re certainly not where we want to be on that, and we’ve talked about that. But I think that the actions that we’ve taken over the last few quarters of really focusing around customer satisfaction, getting into those conversations earlier, we’re showing progress there, and we’re happy about that. And we’re also seeing good things on the booking side. We’re obviously — we prefer to be seeing more on the booking side. But those two things really make up our ARR growth rate, right? So I think the progress that we’ve made from an operating efficiency and profitability standpoint is sustainable, and we’re not done with that work. We’ll continue to find ways to be more efficient, and it’s fundamental to just operating better as a company.
And obviously, the macro and the FX headwinds are impacting us as well. From a revenue perspective, we’re still in the middle of Q4 here and we’re planning for next year, and we’re certainly not prepared to give guidance for next year at this point. But I do think that ultimately, revenue growth is going to follow ARR growth. And based on the current headwinds and the ARR, the total ARR numbers, you can see, which is impacted by the mix between partner and direct, that ARR number has been showing the kind of acceleration that would indicate that there’s going to be a a major acceleration in revenue next year. And so our focus is going to remain, as I said in my prepared comments, on operating the business efficiently and focusing on sales productivity and all the key metrics that are going to help us ultimate reaccelerate ARR in the future.
Ryan MacDonald: And then, yes, I mean, I guess a key part of a reacceleration of growth in the out years is you added a new CMO with putting a greater focus on lead generation, a new CRO. Can you just talk about maybe some of the initiatives that they’re early on they’re kind of putting into place on one on how do you sort of rebuild that top of the funnel and build the pipeline from a marketing perspective, but then do with the new CRO coming in, how do you expand that sort of end market sale from sort of the CMO to the CIO over time?
Mike Walrath: Yes. So there’s a lot there, obviously. And I think Rand’s been in her seat for about three months now, and Tom has been in his seat for about five weeks. And so I talked about this certainly on the last call. We need to temper our expectations. We obviously want to move really fast. We know these sales cycles in normal times or six to nine months. And in this environment, those sales cycles can take even longer. And so as I mentioned on the last call, it’s going to take some time to see the impacts of the really hard work that’s being done on both the demand generation side of the business as well as the overall go-to-market motion. And a big part of that is how do we make sure that those things are really well coordinated and that the portfolio of investments across that entire portfolio is balanced.
And that’s a lot of the work that we’re doing today, and I’m pleased with the progress that we’re making. And like I said, I think we’re seeing good indications of progress in things like gross retention and the breadth and diversity of deals that we’re seeing. We want to see more pipeline, we want to see more at bats and more opportunities, and that’s what it comes as we get this thing going. So positive indications and very confident that we have the right people leading those functions and the right teams of people at the company. We need some more time to get that together.
