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
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, 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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