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 start out by just better understanding kind of some of the puts and takes of the guidance in the back half of the year
because if we take guidance at face value right now, be it billings or subscription revenue, the idea of reacceleration in the back half of the year
seems to be off the table for now. Is that the right way to think about it longer term? Or is there still kind of a scenario where we can see overall
subscription growth reaccelerate above 20%? I'm not asking for guidance for next year. I know you'll provide that next quarter. But maybe just
how we should be thinking about the potential for reacceleration? And then I've got a follow-up.
Question: Rishi Nitya Jaluria - RBC Capital Markets, Research Division - Analyst
: Okay. Got it. That's helpful. And then maybe I just wanted to think about, in the prepared remarks, you called out maybe some headwinds on the
SMB side. I guess I'm a little surprised to kind of see that just given how big your customers and how big their spending with you is. Can you maybe
help us understand directionally how much of your business is what you would call SMB and how you're defining that just so we can kind of better
understand the model going forward, especially in this macro?
Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst
: Either for Peter or for Brent. I'd love to revisit the trajectory of the core CRM business, the piece that's based on seat-based pricing. I know you've
been pretty consistent in saying that new customer seats will more than offset rep productions. Could you remind us, do you think we're through
the largest headwind of the rep production dynamic? Does returning to in-person selling post-COVID help with this? How do we think about the
trajectory of that specific piece of commercial going forward?
Question: Gabriela Borges - Goldman Sachs Group, Inc., Research Division - Analyst
: The follow-up is on CDMS. A couple of comments in the prepared remarks. I know there was a customer win announced in the quarter as well.
Would love to get a little more detail, how should we think about the trajectory of CDMS? And is there a scenario where that becomes more
significant, a more material driver of growth, either in the next 12 months or perhaps in the next 24 months?
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