Barak Eilam: So we gave some statistics about what we see in the enterprise, and we see this as the fastest-growing part of our business, and it’s very impressive. I think that unlike the — I’m guessing the — unlike the other competitors that you’ve mentioned, in our case, you actually see it in the results, not just in the statements. We saw a great growth between Q3 to Q4 in absolute numbers and percentages. And we’re giving a very healthy guidance and a steady growth starting from Q1 all the way to Q4. And of course, there is a potential for further acceleration. So it’s great. And it’s — actually, I think it speaks about the potential in the market because, as we said before, 80% of the market has yet been cloudified and the majority of it or a big chunk of it is as the enterprise segment where we have a superior win rate.
Michael Funk: Great. Thank you for the color. And one more quick one, if I could. Last quarter, you noted that two of your competitors are attempting to sell themselves, actively at books in the market. Is that still your view?
Barak Eilam: I think that after our call, there are some actual news coming to the market. So I would like to take credit for being able to be the first to let you know. I don’t have any other news to provide you this time, but you’ll be the first one to know.
Michael Funk: Okay. I look forward to the phone call. Thank you.
Operator: Thank you. The next question is coming from Michael Latimore of Northland Capital Markets. Please go ahead.
Michael Latimore: Great. Congrats on the strong results here. With regard to AI, can you give a little more color there just on the — maybe the magnitude of the bookings or the revenue? I know it’s consumption-based in some situations, so might be complicated. But at some point in 2024, can we see AI exceed 10% of cloud revenue?
Barak Eilam: We don’t break it down yet. We gave some color on it. At some point, we will break it down. As I’ve mentioned before, I think it’s important to highlight is that AI is now well embedded in what we do. There are AI-specific solutions where we can actually call out and say this is revenue fully dedicated for AI, and there is an uplift of AI-infused solution, we see we’re doing broadly within CXone. So there are many ways to grow about it. Definitely, it’s a positive, accretive, incremental part of our business. If and where we think it’s worthwhile to break it down and start calling out specifically, we will do that.
Michael Latimore: Great. And then with regard to autopilot and Copilot, is there a noticeable difference in demand for one or the other of those? Or do most customers kind of buy both?
Barak Eilam: It’s a great question. Obviously, customers talk to the CX, also the domain expert to CX. And it really depends on the maturity cycle of a customer. And how much of their — and what is the type of services they provide. So in many cases, we find ourselves together with our partners, consulting to them how to go. They always like the — if you like, the end state, the journey or where they want to have less users but obviously, highly specialized one, highly augmented with a Copilot, and seeing money moving from the labor to technology with autopilot. But it really depends on the starting point. Right now, I can tell you it’s a mix of many things. We see customers starting with Copilots. A few months later, I said, okay, we got it.
Now we are ready to engage with autopilot. Some start immediately on autopilot because they had already multiple usually, sales automation issues in the past, like the deal I’ve mentioned of one of our customers that was — had a CCaaS solution from a CCaaS provider, a very sizable customer that failed to deliver both on the CCaaS, but mainly on what they call IVA. And they come to us, they now have other pilots and they’re doing it very successfully. So it’s all of the above. We’ll try to provide more color about it as we continue to deploy those in 2024.
Michael Latimore: Okay, great. Thank you.
Operator: Thank you. Our final question for today is coming from Chris Reimer of Barclays. Please go ahead.
Chris Reimer: Hi, thanks for taking my question and congratulations on the strong results. Actually, most of my questions have been answered already, so I won’t take long. I just wanted to touch on the outlook for the year, so much positive commentary and strong momentum with the AI product. Just wondering if you could touch on anything that you think might be a challenge or a concern, if anything? And do you think some of the macro-related weakness we’ve seen last year in the delaying business decisions? Do you think that’s behind us?
Beth Gaspich: Yes. So let me take the macro-related comments first, please. I think with respect to the macro, I talked about it a little bit. We have usage from our customers that we see on a daily basis. So we have a lot of visibility into looking at what their utilization looks like, how seasonality is playing out in real time. And so I highlighted earlier that since fourth quarter, we’re now towards the end of February. It has given us the confidence to say that we’ve seen stabilization in the macro and the impact of that in the full year, and that’s our expectation. Of course, none of us have a crystal ball. And I think that means there’s always a possibility that the macro could have other impacts, but it also equally implies that we have opportunity with the macro further improving that gives us possible upside to the guidance that we’ve provided as well in terms of the cloud expectation.
So again, we feel based on the — that we feel confident with that 18% that we’ve given as an expectation for the cloud revenue. And of course, that’s exclusive of LiveVox and that, that will play out pretty evenly during the course of the year with the upside possibility. And with that, Barak, I’ll let you if there’s anything else you want to add for the other question — part of the question.
A – Barak Eilam: No, I think you answered we’re good. Unless Chris had other questions, we’re good. Thank you.
Chris Reimer: No, that’s fine.
Operator: Thank you. At this time, I would like to turn the floor back over to Mr. Eilam for closing comments.
Barak Eilam: Thank you, and thank you, everyone, for joining us today. We’re excited about 2024, and we look forward to update you on the next quarter. Thank you all.
Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.
