The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Wonderful. First, I wanted to kind of drill a little bit back into the consumption element of the business. At the Analyst Day, you had
said that part of the goal of Generative AI is driving more consumption. Maybe can you give us a little bit of a reminder for, today
how much of your business is actually consumption? And as we think about the actual adoption of Generative AI solutions, how
that impacts the mix of consumption versus subscription. And maybe what does that do to some of the leading metrics like ACV
and RPO that we're all still looking at? And then I've got a follow-up.
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Yes. That's a very thorough answer. I really appreciate it, guys. And then...
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Okay. Great. And just to clarify, that shouldn't have an impact on CRPO or RPO with 1 year or under, correct?
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Okay. Really helpful. And then one other piece of feedback we got when we were talking to partners at PegaWorld is that Generative
AI can really help speed up time to value. Maybe based on your customer conversations, how do we think about the potential for
this to reduce implementation times, reduce sales cycles, and kind of lead to, maybe over time better net new business showing up
in the model? Maybe help us understand how you're thinking about that?
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: Great. I wanted to ask you one thing that you were talking in the script, about more opportunity to further streamline sales, additional
improvements to go-to-market. Is there any way to kind of tease that out? What other things are you thinking that you can apply?
Question: Pinjalim Bora - JPMorgan Chase & Co, Research Division - Analyst
: Got it. Understood. And Ken, going back to kind of the sequential decline in ACV, was the macro sequentially worse in Q2 versus
Q1? Anything to note there?
Question: Jacob Roberge - William Blair & Company L.L.C., Research Division - Analyst
: I just wanted to dig deeper into your comments that Generative AI can commoditize just those lower-end use cases in low code.
Can you just talk more about why your platform's positioning helps you take advantage of AI? And then just from a timing perspective,
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when do you think we can actually start seeing AI layer into the model? Is that something that's more Q4, or do you think that's more
of a 2024 story?
Question: Jacob Roberge - William Blair & Company L.L.C., Research Division - Analyst
: Yes. It was just really around the timing of when we can start seeing AI layer into the model. Is that something that starts generating
revenue in Q4, or is that more of a 2024 story?
Question: Jacob Roberge - William Blair & Company L.L.C., Research Division - Analyst
: Okay, helpful. And then just we're obviously hearing a lot about platform consolidation, just given the uncertain macro. Have you
seen any changes to the competitive environment or even with your GSI partnerships just as some of the larger software platforms
like Microsoft and ServiceNow invest more in the space? And then on the other end, have you started to benefit at all just as customers
may look to consolidate like a point solution RPA or process mining vendor onto your broader platform?
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