Todd McElhatton: Okay. So — on the calculated subscription billing, we continue to kind of go back to focus people. Let’s take a look at what is the ARR. That’s what we have in the bank. That’s exactly how we model our business and run it. We’ve talked about for quite some time, there’s a lot of movement in the calculated billings. We’ve got a little bit of FX this quarter that’s in it, but renewals — timely renewals, companies bringing things in. That certainly has an impact we’ve had a couple of situations where we’ve had some different billing terms and that certainly provides some movement in it back and forth. So really, the ARR is the way to look at it. And again, if you look at the subscription — package subscription billing over a longer period of time, what you see is that pretty much tracks where the ARR growth is up 14% this year.
So I don’t think there’s anything that — to see in that, just it’s ebbs and flows, and that’s why we guide to the ARR. From a standpoint of where we are on the services revenue, I’d go back to what I said is, I think we’re around 12%. We’ll probably — we might be a point or two from a mix perspective that might change over the next couple of quarters. It’s always going to be an ancillary business. But look, you’re always going to have services as part of our revenue. Our services team have tremendous amount of expertise and knowledge of our customers. When there is the hardest problem to solve that’s the team that’s going to solve it, those are the teams that help train our partners, and there’s always customers that are going to look for certain deals to be implemented by Zuora, just that’s how some companies want to roll.
Outside of that, though, we’re happy, it’s our preference to go partner first. And as I said to Rob earlier, we make our margin on the subscription revenue side, and that’s where I want to be focused. — that’s where we’re doing really well on the margins, and we’ll continue to focus on. I really look at the services. I think when I talk to almost all of our investors, I think most people look at say, hey, that’s just part of doing business, but it’s really not the fundamental recurring part of our business which is subscription revenue.
Andrew DeGasperi: Great. Thanks.
Todd McElhatton: Thanks, Andrew.
Operator: Your next question comes from the line of Jacob Stephan of Lake Street Capital Markets. Your line is open.
Jacob Stephan: I’ll just add my congrats here on the quarter and congrats to Luana as well. Just two quick ones for me here. Tien, you noted that SI partners bookings grew sequentially from Q1 to Q2. I’m just wondering if you could kind of provide some commentary on what we’re seeing kind of as we go into Q3 here?
Tien Tzuo: Robbie, do you want to answer?
Robbie Traube: Yeah. I think in terms of the — looking at the pipeline, very specifically with our SI partners. And that has continued — momentum there has just continued. And to the extent of as we look at the mix or changing in terms of lands, we’re actually creating solutions with them and actually creating very direct package pieces that we go to market together with one of the actual great opportunities that we closed in our Q2 was actually through this with a partner. So that continues and that pipeline continues.
Todd McElhatton: The other thing I would just add to that, Jacob, is if I take a look at nice sequential growth and what the partner pipeline is looking like, and in fact, this was the highest quarter that of generating pipeline, I think, in four or five quarters for that part. So we’re really happy about how that’s progressing with some of the changes that we made at the beginning of the year.
Jacob Stephan: Okay. Great. And then just last one here. I know you broke out kind of ACV cohort has grown in both the 250 and over 500. But I’m just wondering about maybe by year, so 2021 and 2022 cohort, maybe you could kind of give us some color on how they’ve grown over the last year or two here?
Todd McElhatton: That’s not something that we’ve got right in front of us now. It might be something that we can look at and talk about that in future calls. So I’ll keep that in mind, Jacob.
Jacob Stephan: Okay. Understood. Best of luck going forward.
Todd McElhatton: All right. Thanks, Jacob.
Operator: Your next question comes from the line of Brent Thill of Jefferies. Your line is open.
Luv Sodha: Hi, Tien. Hi, Todd. Hi, Robbie. This is Luv Sodha on for Brent Thill. Thank you for taking my questions. Todd, maybe one for you to start out with, just wanted to ask about the net new ARR. It looked like that was around $10 million, maybe down 9% year-over-year. Was that in line with your internal plans? Or how did that compare to your internal plans?
Todd McElhatton: Hey, Luv. So thanks a lot for the question. At the end of last quarter, we talked about it. I think we added about $8 million, $9 million, worth I said I thought it’d be flat. We actually accelerated some. So I was very pleased that we did have that acceleration. And again, we would expect that to accelerate in the second half of the year. The other thing is when I provide the guidance for the full year, take a look at what do we have weighted in the second half. And as you know, not only Zuora, but most SaaS companies have much higher weighting in the second half. And when I take a look at the guidance and what we’ve done historically, what we got in that guide is less than what we’ve done historically weighted on the back end. So again, if I take a look at what we’re seeing in the pipeline, what we’re seeing in close rates, what we’ve done historically, we feel comfortable that we’ll see that acceleration continue into the second half.
Luv Sodha: Got it. So, I guess, just reconciling that with a comment around you factoring in similar buying patterns into the back half guide, are you expecting some acceleration in net ARR, in the back half. Is that fair?
