Samad Samana: Very helpful. And then, maybe, David, a follow-up for you. Just thinking about the partnerships and how they’ve ramped, would you say that, from a distribution perspective that the partnerships are kind of firing on all cylinders? Is there more gas left in terms of how they could ramp? And just how should we think about that in the context of your own sales and marketing investments as well in 2023?
David DeStefano: Yes. I’m really pleased with the maturity of each of them. They’re all in different stages. Obviously, if you think about our relationship with Vodafone SAP, they go back generations. And so we’ve really enjoyed wonderful experiences there. They moved to a new level with working with their sales teams. And so that’s a new motion for us. I still think we’re in early days of getting the uptake there, which is great, because that gives me more confidence in the opportunities moving forward, given the massive installed base that they both have that we don’t have access to yet. So I think there’s considerable upside there. I’m really encouraged by some of the motions we’re seeing with folks like Workday and Salesforce, as they’re expanding their indirect tax partnership.
Workday is expanding in Europe, which will give us another partnership there. We’re also seeing good motion now starting up in Microsoft. I think, that’s probably the one that I see the most growth potential in, both within the ecosystem and some of the work we’re doing with them, as both a customer and a partner, where I see great opportunity.
Samad Samana: Great. Very helpful. Thank you.
Operator: Our next question from the line of Keith Weiss with Morgan Stanley. Please proceed with your questions.
Unidentified Analyst: Hey, good morning. This is Jonathan or for Keith. Thanks for taking my questions. I think you’ve already touched on macro to a degree, but want to understand what’s contemplated in your outlook from a macro perspective?
David DeStefano: Yes. I think as we built the guidance, we’re trying to be very thoughtful kind of with what we’ve done kind of what we’ve done in the past and how we’ve delivered. I think we’ve had a pretty good pace of sort of I’ll say under-promising and trying to over-deliver in terms of kind of expectations. And I think as we thought about guidance and we thought about the future, we built some of that into mind as we look forward. And so that’s kind of how that’s — how we’ve built that in a very general standpoint. So again, we do know that there’s some tensions out there that are in the marketplace that are concerns on people’s minds. We’ve not yet started to see them show up. But that said, I think we wanted to be mindful as we build guidance that could start to manifest itself at some point. But we feel good about what we’ve put out there for now.
Unidentified Analyst: Got it. That’s helpful. And can you help us understand what you’re thinking around the opportunities and incremental investments in the mid-market?
David DeStefano: Sure. We are laser-focused in the ecosystems of Microsoft Workday. We’re seeing great uptake in sales force — and being targeted, again, we look at the platforms that a majority of mid-market businesses run on and the growing into corporate and enterprise customers. That’s really our focus. We really don’t want to peanut butter spread with 1,000 connectors. We don’t see that as the right strategy for the target customers we run it, because they all end up consolidating on the primary platforms, whether it be a Coupa or Workday, et cetera. And I think that’s really where our focus is. Our investments, I think, are well suited for that right now. I comfortable with our go-to-market team, and we continue to just add quality around both the content that we use to support that customer base as well as some of the new offerings that we have coming forward.
Unidentified Analyst: Helpful color, guys. Thank you.
David DeStefano: Thanks.
Operator: Our next question is coming from the line of Steve Enders with Citi. Please proceed with your question.
Steve Enders: Okay. Great. Thanks for taking the question here. I guess I want to ask a little bit about the kind of key catalysts for adoption and what you’ve been seeing both within the quarter and if there’s been any change as you think about new top of funnel or new opportunities coming in that are in the pipeline right now?
David DeStefano: Sure, sure, Steve. So there’s three fundamental drivers for our business. They are either going to be a business model transformation, whether you’re adopting omnichannel, you’re making acquisitions, something that’s fundamentally disrupting the normal way of business operates as they search for or pursue revenue growth, which makes it hard for a tax department to keep up. The second will be in the regulatory space, either come in the form of new regulations or audit pressure. Either one of those things can again attack an in-house team to say, hey, we’re going to have to do something different and our in-house solution is no longer viable. And then the third is the technology refresh part of their business.
Remember, these large multinationals have multiple ERP systems, multiple invoicing billing systems. And so they can be upgrading any one of those through an acquisition they had made over the years and that, again, will be a disruptive force for change. And that will be our entree into an organization that we then land and expand, which has sort of been our motion, our success. And so I think when we look at it in — if you go back a couple — two years ago in the pandemic, omnichannel and business model where changes were really — and acquisitions became very hot. And so that was a real driver. Our experience in the recessionary times, the regulators are always looking for more revenue. They need to get their portion to fund their budgets.
And so they’ll increase audit pressure or they will — when we’ll see continued complexities we are seeing around the world. And then we’re fortunate enterprise customers that we target are really still very much focused on digital transformation and system upgrades for efficiencies. So we’re still seeing really good drivers in those areas in the dialogues we’re having.
