Juho Parkkinen: So we have a highly skilled professional services organization, and we do various projects where we are able to command a high margin. Our standard kind of historical implementation services would be at a lower margin, but then we also do certain consulting base or more ad hoc projects that carry a very high gross margin.
Mike Cikos: Okay. And then the other thing that benefited the margins obviously was the much lower than expected sales and marketing expense. What was it that drove that benefit? And I guess the follow-up question on sales and marketing is, I know that you guys have previously outlined your assumptions for sales and marketing headcount to grow 40% to 60% year-to-year. Are we tracking to that? Where did the sales and marketing headcount shake out for the quarter?
Juho Parkkinen: Okay. Thanks, Mike. That’s another great question on that. So if you take a look at the investor supplement, we broke it out again for your benefit between sales and marketing. So you can kind of see the relative proportion there and how we plan on how our current plan is to track into operating profit. To answer kind of quickly to your question, from a marketing perspective, as discussed in prior calls, we believe we have a very high brand value, and we no longer have to spend the historical amounts to gain or increase that value. And secondly, on the sales side, we have very aggressive hiring targets, but we are slightly behind those targets because we look for the best type of candidates to sell our products and services.
Operator: Thank you and one moment for our next. Our next question comes from the line of Gil Luria with D.A. Davidson. Your line is open. Please go ahead.
Gil Luria: It looks like the general AI conversation, you were ahead of. Can you help us a little bit with the context for that? When did you start the work on that? When did the pilot start? You talked about a couple of implementations maybe a preview of what you’re going to talk next week about at your conference. It seems like there’s a little confusion out there about what came first, the interest in generative AI or your work on it. So would you mind walking us through that time line?
Tom Siebel: Let me try that. And this is Tom. So we’ve been working with generative AI models since 2020. What precipitated this particular spurt of creativity was there a quest from DoD, which is one of our larger customers. And I got a text about four or five months ago, but Tom, we need you to be the Google for DoD. And so I didn’t quite understand what that meant. And then I talked to some of our colleagues and like General Hyten those we used to be the Vice Chairs of Joint Chiefs; and General Cardon, who is the Chair of our Federal — United States Army Cyber Command, is the Chairman of CTV Federal. And they said, “Tom, this the way it works. The Chairman of the Joint Chiefs asked some question in the meeting like how are we doing against our diversity goals or what is our satellite coverage into Paycom.” Okay?
