So if you look at the announcements that will be made, whether it’s around consumption-based billing, whether it’s really, you know, bringing Zephr into not just newspaper companies, but really any company, I think those are the strategies that companies are using, whether — regardless of whether they’re B2C or B2B to continue to be, you know, a long-term grower, you know, for years and years to come.
Joshua Reilly: Got it. Thanks, guys.
Tien Tzuo: Thanks, Josh.
Operator: Your next question comes from the line of Adam Hotchkiss from Goldman Sachs. Please go ahead.
Adam Hotchkiss: Great. Thanks for taking my questions. I just wanted to touch again on the strength and current RPO sequentially. Could you just talk a little bit about where you’re seeing the incremental momentum from a cross-sell perspective and what you view as the key catalyst here, I guess, how much of this with some of your more seasoned products like RevRec versus some of the newer launches like Zephr and Consumption?
Tien Tzuo: Well, I would say, you know, I’ll let Todd comment on what he’s seeing, but to me, it really is a validation that our customers believe in us, our customers believe in us, our customers believe in our technology, right? And when you see an increase in RPO, you know, a lot of that is going to be driven by, look, we’re not just going to renew a year, but we’re going to stick with you for many years to come. And I think that’s just a really strong statement to the fact that we have differentiated technology. We do a lot for our customers and they continue to say, hey, we’re committed to you.
Todd McElhatton: I think the only other color that I would add to that, Adam, is we saw the largest renewal we’ve ever had, one of the world’s largest automobile manufacturers. Not only did they go out for five years, but they accelerated their spend. They’re going to put a whole lot of volume through our system. One of the world’s largest software companies, again expanding how they’re using our product, taking on additional volume. Google Fiber came through. So really, I think it’s been the customers that we’ve chosen. These enterprise customers, as they’ve used the system, are getting value as we’re innovating, are just expanding their footprint with us, and we’re becoming, you know, part of their tech stack and a mission-critical piece of their business.
Adam Hotchkiss: Great. That’s really helpful. And then just on that point, Todd, is there any commonality between these $1 million deals and your go-to-market and achieving this level of commitment? How much visibility do you have when you look at the upsell cycles for companies that might be in the pipeline for this type of ACV over time?
Todd McElhatton: I think we have pretty good visibility to it. I think there’s a little bit of, you know, does it close this quarter, next quarter? There’s a little bit of variability onto what quarter it closes. But I would say in general, you know, we’ve got good tight relationships with these customers. We have customer relationship managers that are attached to them. We spend a lot of time with them. Our executives spend a lot of time with them. They understand our roadmap. A lot of times they’re giving us input on what they’d like to see on the roadmap. So as we work together, I think, you know, we have a good visibility of where that expansion goes over time. I’m not sure that you can always, and especially in this environment, peg it down, hey, we’ll be this quarter, next quarter, the quarter after that. But we do know that there are things that are coming and are highly confident of our ability to close that business.
Tien Tzuo: Yeah, if I were to raise it a level we’ve been saying for the last two years or three years, right, that we’ve made a strategic choice to really target the biggest and fastest growing companies in the world. And we believe those companies give us runway. I know at the start of the year when we started talking about smaller deals, that was a big question you guys had, right? Are you chasing smaller companies? And we said, no, we’re chasing the same customer base. We just want faster lands because what gets us confidence in that is every one of our companies, regardless of where they stand today, is a potential to be a multi-million dollar year account.
Adam Hotchkiss: Okay. Really helpful. Thanks, Tien. Thanks, Todd.
Tien Tzuo: Thanks, Adam.
Operator: Your next question comes from the line of Joseph Vafi from Canaccord. Please go ahead.
Joseph Vafi: Hey, guys. Good afternoon and welcome back. My congratulations on coming back to Luana. How about maybe one question on any change in the kind of lands you’re seeing now? Is — you know, are things gravitating toward any specific product? Just trying to get a feel for, you know, perhaps revenue, which seems to be resonating in this kind of environment and kind of where are you right now at this point in revenue penetration across the base? And then I’ll have a quick follow-up.
Tien Tzuo: Yeah. Just like we said, you know, one key part of our strategy is targeting really the best and fastest growing companies in the world. Another big part of our strategy is the multi-product strategy. And we’re sitting here today and we’re fortunate enough to have multiple products that are resonating in the marketplace. And so that includes billing that includes revenue. The Zephr acquisition has turned out to be a home run. And so any given quarter, you’re certainly going to see, you know, puts and takes or ebbs and flows of one product versus the other. And that’s, I would say, that that’s just the nature of whatever quarter is going on in that quarter. But I feel really, really good about all the products that we have and their ability to have impact in the marketplace.
