Blair Abernethy: Yes. Thanks very much. Just Ken, following on the last question, what are your – what’s your renewal book look like this year, the back half of this year versus last year? And I guess I am just – I am looking for some of the key incremental drivers that gives you that confidence off this 9% growth number that you are going to average it out to 11%. It’s a pretty – back half is going to have to be a fair bit stronger.
Ken Stillwell: Sure, Blair. So, Q4 have – we mentioned last quarter that our renewal book is skewed towards the back end of the year this year in 2024, no less and a little bit more than a typical year. What hurt us in this year in Q1 is the strong Q1 of last year. Certainly, what helps us through the middle part of the year is that the compares in the middle part of the year, not as – it’s not as difficult as the beginning of the year. So, some of this is just the timing of when ACV growth happens in the prior year, and as you know, how that fits into the trailing 12-month calculation that we have. So, renewals, there are still always – we always have a lot of renewals in Q4. That’s no different for this year. So, we have got – we certainly have expansion opportunities. But also the activity through the middle part of last year was much more subdued that we expect this year.
Blair Abernethy: Okay. Great. And then just shifting on to the product side, any update at all on the launch pad initiatives you launched last summer?
Alan Trefler: Yes. It’s – I think it’s going very, very well. We ended the quarter with 11 partners who are building apps on launch that and that’s been – we have been doing this on a very sort of bootstrap basis. And we have seen our first partners bring their first customers into production. So, we are really quite pleased with how it’s going. So, it’s not going to be the driver of growth this year. GenAI and the core business is going to be what gets us to the growth objectives that we have for this year. I think launch pad is hopefully going to continue to develop in a way that it is, and it’s going to be a nice driver for next year and into the future.
Blair Abernethy: Great. Thank you.
Operator: Your next question comes from the line of Tom Blakey with KeyBanc Capital Markets. Please go ahead.
Tom Blakey: Hi. Good morning everyone and thanks for taking my questions. Alan, maybe for you, just on the success of Blueprint, sorry, a little bit of redundancy in terms of topics here. Can we talk about maybe the roadmap, I know it’s early, but I am sure you have a roadmap here in terms of using – utilizing some of the other technologies in terms of process automation, process mining rather in terms of automating some of the further automation of ideation here, just creating some of the other end-to-end solution here. On the free cash flow, Ken, can you just maybe to – first question on the call here. Maybe this is the last one, remind us of some of these metrics. I think it was a $350 million free cash flow estimate for the year.
You started off so strong here and 4Q is usually better than 1Q. I think we might all be looking for Qs here a little bit more guidance here in terms of how to manage and model free cash flow here for the rest of the year. Any visibility there would be great. Thank you.
Ken Stillwell: Yes. So, this is more of a general comment, Tom. But I think to your point, Q1 and Q4 is where we get the majority of our cash generation in 2024, even more skewed in that direction than what you saw last year. Q1 started off strong. I think our billing and collection process is good. Our days sales outstanding is very strong. But the reality is you have more bookings in Q4, which do help the Q4 and Q1 billing and collection cycle. And Q2 and Q3 is as in most enterprise software is a little bit more subdued than that kind of hockey stick towards the end of the year in bookings. And so that’s just kind of – and by the way, a lot of our renewals, we build typically annually in advance. So, you have a lot of those annual billings that happen in that same timeframe.
So, just picture Q2 and Q3 being much more subdued – sorry, in some cases, we may not even generate cash flow in a quarter in the middle part of the year with our cash flow really focused on Q1 and Q4 in terms of the timing. So, hopefully, that’s kind of helpful.
Alan Trefler: And relative to the roadmap, we have a very robust roadmap. The things we recently implemented around being able to pull the Blueprint into a Pegasystem and actually turn it into a running app was very recent edition that obviously contemplated, but makes a big difference. I think some of our next big steps are going to have to do with how we actually incorporate our customers’ data structures and their existing data repositories into the Blueprint to be able to mine. So, this thing really can plug into the real life that our clients have. And also I see Blueprint being able to be fed by process mining and other sorts of analytical things we do that will also help supercharger, so lots more to come. And with that, I know at the top of the hour, let me say thank you to all of you, let you know, we are working hard and we look forward to seeing in PegaWorld.
Operator: Thank you. This concludes today’s call. You may now disconnect.
