We think, obviously, those two things drive a meaningful amount of stickiness in the customer base. On the customer success in onboarding and implementation side, we made a number of changes in June in the way that we onboard and implement and deploy our customers to ensure that our customers are seeing quicker time to value. And those are netting out really positively for us, the numbers of customers who are using the product and using the product quicker post implementation have significantly increased. And so we feel really good about that as well. And we’ve materially grown our customer success team to make sure that we’re giving our customers — sharing with our customers best practices, solving support issues for them in a timely manner, and we’ll continue to invest across all three of those areas.
Kash Rangan: Got it. And also given the divergence between the retention of large customers versus the middle of the curve, how are you planning to win those customers back. And granted that you had that one big boomerang, the other customers in the bill of the bell curve that have defected, what’s the company’s plan, if any, to bring them back.
Cameron Hyzer: I think it’s worth noting here that the churn rate has actually not significantly improved. It’s a little worse than it was, say, in 2022 or 2021. But the big driver of the net retention change is much more that we’re seeing reduced upsell and more downsells. So, I’d say that the biggest difference is not that we’re losing these customers, it’s that they’re spending less with us. A bunch of that has to do with lower seats. Some of it has to do with tighter budgeting. But realistically, I think for the vast majority of cases, it’s not a loss of a customer. It’s a reduction in the spend with those customers that’s changing the net retention.
Operator: Our next question comes from D.J. Hynes with Canaccord Genuity.
D.J. Hynes: Henry, I feel like you’ve talked a bit more about data-as-a-service or enrichment of late and the potentially favorable economics that accrue there. My question is how recurring those DaaS agreements generally are. I mean, is it a situation where customers spend a lot on the effort upfront and then less in maintenance in subsequent years? Or is there an ongoing commitment to enrichment that makes those revenue streams more linear or recurring in nature? Like how does that typically work?
Henry Schuck: Those are recurring subscriptions to our data and our data to live alongside their CRM data, their Snowflake or Databricks data. Obviously, one of the key parts of our offering centers around the fact that this data is constantly changing. There’s no company that looks the same on December 31st as it did on January 1st. And over 30-plus percent of people are changing jobs or getting promoted or getting into new roles, we’re tracking all of these changes at scale. And not to mention, there’s the influx of new companies being started and incorporated that we’re staying on top of. So these — we’re feeding those changes in a real-time way into our customers’ systems of record, whether those are marketing systems, enterprise data warehouses or CRM.
And so those are ongoing contracts for us. One of the things that’s worth mentioning here is when you hear about me talking about this, it is largely about us being super excited about the AI opportunity that we’re seeing and what our customers are saying to us and they’re showing up at our doorstep saying, the C level wants us to drive generative AI in our outbound prospecting motion. They want us to be using AI and LLMs in the way that we contact and prospect and communicate with our customers, but the data that we have in the systems are just not robust enough. They’re just not accurate enough for us to actually take advantage of that. So when we show up and we talk about data-as-a-service, we have the opportunity to come and really drive their AI motion.
And we’ve had the conversations all across the enterprise. We have them in the mid-market. And in the SMB, we’re able to drive a lot of that workflow directly from our platform. And so we think the AI opportunity and the focus on AI really gives our data-as-a-service offering the spotlight.
Operator: Our next question comes from Joshua Reilly with Needham.
Joshua Reilly: Nice job executing here in a tough environment. You mentioned the expanded international coverage. How are you prioritizing the expansion of the Company and contact database internationally? Are you going by a geography or some other way of expanding that? And then what inning are you in, in terms of getting the international database where you want it to be to kind of properly monetize it?
Henry Schuck: Yes. Great question. Thank you. We are going where our customers go. And so we have a tremendous amount of telemetry built into our platform. And so we’re able to see how our customers are searching across our platform, what they’re looking for and what countries, what size companies. And then, we’re doing a number of user surveys to understand when we do have the information, what else would they like to see. And so, when you see the growth in contact information, mobile phone numbers, whatever that is, it’s being driven specifically from where we see our customers searching and where we see our customers telling us they want a deeper, more robust coverage and actionability. And so, we’ve done that country by country, region by region.
I would tell you, we’re probably — we are obviously monetizing this solution. We think the solution that we have internationally is far and away a better solution than anything competitively, even solutions that are native in Europe or internationally. So, we feel really strongly about that. We think there’s still a great opportunity to enhance the data asset. So I would tell you we’re somewhere like the seventh inning stretch.
Joshua Reilly: Got it. And then with the stock price, obviously, depressed here in the near term, and you bought back 8.8 million shares. How should we think about leaning further into the stock repurchase over the next several quarters given you still have a fairly healthy amount in the current authorization?
Cameron Hyzer: Yes. So, our plan is to continue to opportunistically repurchase stock based on where it’s trading relative to what we perceive as the long-term value. So yes, I think at these levels, we’ll continue to lean in. We do have a fair amount left on the authorizations that we currently have, but we’ve continued to buy stock in October, and we’ll continue to do that going forward.
Operator: Our next question comes from Taylor McGinnis with UBS.
