And the sales cycles there took a long time to crack the code, they’re cracked, and we’re now seeing that scale. But I want to be very, very clear, when we partner with an agency, we are partnering with that agency and the enterprise client directly. The agency is not hiring us and saying go across our customer base, they are bringing us in to the enterprise as the partner to the agency to either fill holes for product categories they do not have or help them scale certain components faster. But in 100% of the cases, we’re directly working with the enterprise in partnership with the agency. So when you look at it, one sales rep can close multiple brands simultaneously by working with an agency, whereas on an enterprise basis, it’s one to one.
I would say that we want to continue to focus on both. We’re going to continue to staff up in both. And the good news about being ahead, which is where we are, is we’re in a position to hire the world’s best sales people on both sides of the house.
Chris Greiner: Yes, I think bringing – it’s a great point, David, bringing the math to it, I think there’s an interesting sales productivity statistic on how we’re investing in our go-to-market origin. We tend to be led by quality over quantity. And when we add it, it’s very data-driven. For example, last quarter, we talked about on a trailing 12-month basis we’d added 52 scaled customers while adding 15 quota carriers over that same period of time, so roughly 3.5 quota carriers per scaled customer added. This quarter, we saw that improved pretty meaningfully quarter-to-quarter where we’ve added 51 scaled customers over the last 12 months while adding 11 quota carriers. So, going from a 3.5 times to a 5 times leverage. And those 15 scaled customers this quarter alone equated to 45 unique brands, each of which fit the scaled customer definition of spending at least 100K on a trailing 12-month basis.
So productivity continues to be in our favor. We get really good leverage, as David mentioned, from the agency relationship in addition to what we’re seeing on the enterprise side.
Arjun Bhatia: Perfect, that’s a very helpful color. And then, Chris, for you, I think you had mentioned that the headwinds in auto and insurance have kind of continued this quarter and maybe sometime in 2024, those flip and become a benefit. Can you just give a sense for how the magnitude of the headwinds are trending quarter-to-quarter from Q2 to Q3? And what visibility you have into any improvement with those verticals? I mean, what might those customers be saying qualitatively that gives you some conviction that they might improve from a spending perspective next year?
Chris Greiner: Sure, mathematically, the third quarter was a little bit worse in terms of an aggregate headwind than the second. Fourth quarter will be better than the third, but it will still be with us as a headwind and it will still be with us, although less so in the first quarter of next year. And we expect that headwind to then turn into a tailwind going into second quarter and beyond of 2024. Quantitatively, or I should say, from what we’re hearing from our public company customers, we all are also seeing them from financial metrics they’re posting, what they’re saying in their earnings calls that they are also seeing the environment improve. So I think we’re at the – I think we’re on our way kind of upward again versus still on that downward trend.
David Steinberg: It’s also conversations we’re having. Remember, we have a tremendous number of success oriented people in our organization that are helping our enterprise clients to figure out how to better manage their marketing. And we’re embedded with most of these clients. They’re very large customers on a historic basis. And we’re getting buying signs that are very clear, asking for plans, talking about the future for the first time in quite some time. So I think it’s quantitative and it’s qualitative that we do believe this will go from being a headwind to a tailwind here sometime in the near future.
Operator: Thank you. Next question comes from Elizabeth Porter with Morgan Stanley. Please go ahead.
Chris Quintero: Hi, guys. This is Chris Quintero on for Elizabeth Porter. David, maybe one for you. I know you all have talked about getting more at-bats can lead to accelerating growth. So just curious, when you think about the new at-bats that you’re getting today, what go-to-market channels are those mostly coming in through? And where do you think more of those at-bats can come from over the next year?
David Steinberg: Yes, great question, thank you. I think that first of all, people are undervaluing our relationship with Snowflake. It’s really been an important component of our RFP strategy, both when they’re bringing clients to us from a partnership perspective and when we are bringing clients to them, where we’re able to do more as a collective and we continue to see a large number of at-bats. In my prepared statement, I did say that RFP volumes hit an all-time record in Q3, which was up from a record in Q2. So we continue to see a lot of at-bats. We’re also really focused for the first time on building channel partnerships in addition to agency relationships, where we could potentially be partnering with professional services firms and working with them for more at-bats.
But on an absolute gross basis, I have never seen our pipeline go up more than I did after Zeta Live. We just had an incredible group of potential clients come. We had an incredible group of existing clients come and came out saying, wow, what – how do we do this together? Or how do we do that together? And we were really, as it relates to at-bats, I think we’re starting to see a really exciting number of them. And quite frankly, I think that we’re continuing to win a disproportionate percentage of the RFPs and engagements that we get invited to do, which is why we had such a large growth in scaled customers and super-scaled customers in the third quarter.
Chris Quintero: Awesome, very helpful. And then I also wanted to ask on the mobile opportunity, I know you all have talked about it being a key channel and one where you’re looking to improve your capabilities there. I guess how big of an opportunity could this be for you? And what do you need to exactly improve upon? And could M&A be a part of that solution there?
David Steinberg: Yes, we always look at buyer built, but the truth of the matter is that today, we have a series of partnerships and we have a series of products in mobile. We believe with the elimination of Apple’s IDFA, which I will remind everybody again, we never used in the first place. There is now a unique opportunity in the mobile environment for the first time to really consolidate and grow our business. And we are starting to see meaningful RFPs as it relates to connected campaigns that include not just messaging and not just CTV and not just social and other, but mobile. And we continue to have the right products at the right time. We are continuing to build out our own products and we continue to partner where we think there are best of breed partners that we can work with.
