Operator: Our next question will come from Tom White with D.A. Davidson.
Wyatt Swanson: This is Wyatt Swanson on for Tom. So just to start, a high-level question on the macro. I’m curious what your guys’ interactions with customers and prospects is telling you about how enterprises are thinking about spending for knowledge management solutions entering calendar 2023 in the face of inflation, a potential recession and so on.
Mike Walrath: So as I — I think I mentioned it before, I don’t know a single CEO or CFO who isn’t being a little — who isn’t being more thoughtful about cost. I think that’s a simple way to state it. I think it gets a lot more complicated when you get into the nuts and bolts of it. So for example, in most cases, our solutions are going to be net cost savers. And so you’re kind of — you’re bringing a value proposition to the table, which is you can convert manual work or work that’s not being done into automated work with our solutions. But at the same time, the procurement cycles, the scrutiny on expenses and the timing of those expenses are all going to be looked at very carefully. And I think we’re seeing that pretty consistently.
I think we’re also seeing that it varies based on industry, because certain industries are more prone right now to making cost cuts that might be more necessitated — more driven by the need to cut cost than by the need to find ROI in their business. And so the hardest conversations we have are with customers who see the value in the product and have to cut pieces of the solution or potentially the whole solution anyway. There’s little we can do about that other than to try to be the best partner that we can and try to help them to prioritize the pieces of the platform that are most important.
Operator: Our next question will come from Rohit Kulkarni with MKM Partners.
Rohit Kulkarni: On just a macro and the impact and the visibility that you’re having in the business right now, you’re clearly entering a more important quarter when it comes to bookings for the company. So with the sales reorg and just a different go-to-market motion, perhaps talk about how visibility is trending, how confident you feel. It feels that clearly, 4Q guidance is a little bit conservative, I would put it that way. So perhaps kind of address — how far out do you feel you have the visibility into the outlook that you have provided? And then I have a couple of other follow-ups on big picture stuff.
Mike Walrath: Let me take the first one, and then I’m happy to take the follow-up. So I would think, you recognize that our outlook is conservative and I think, as I mentioned before, our planning for next year is going to be conservative as well. I think we see a lot of uncertainty in the environment. It’s very difficult to predict. And we’re not — I don’t think we’re not going to be in the business of gambling on how deep or how difficult a recession is going to be if it’s coming. So we’ll continue to operate conservatively. We’ll continue to focus on efficiency. We will attack opportunities in the channels in the go-to-market aggressively. But we’re still in the mode where we’re focused on productivity. And we’re seeing improvements in our overall productivity.
When we have the productivity, as I’ve said since the day I took over when we have the productivity where we want it, then we will be able to invest in scaling our teams and attacking more of the market opportunity.
