Thank you for standing by, and welcome to the C3 AI Q1 fiscal year 2023 earnings call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star one one on your telephone. As a reminder, today's program may be recorded. Now I'd like to introduce your host for today's program, Reuben Gallegos, Vice President, Investor Relations. Please go ahead, sir. Thank you, and good afternoon, and welcome to C3 AI's earnings call for the Q1 of fiscal year 2023, which ended July 31, 2022. My name is Reuben, and I'm the Vice President of Investor Relations. With me on the call today is Tom Siebel, Chairman and Chief Executive Officer, and Juho Parkkinen, Chief Financial Officer. After the market closed today, we issued a press release with details regarding our Q1 results as well as a supplemental to our results, both of which can be accessed through the investor relations section of our website at ir.c3.ai. This call is being webcast, and a replay will be available on our IR website following the conclusion of the call. During today's call, we will make statements related to our business that may be considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a further discussion of the material risks and other important factors that could affect our actual results, please refer to our filings with the SEC. Also, during the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release. Finally, at times in our prepared remarks, in response to your questions, we may discuss metrics that are incremental to our usual presentation to give greater insight into the dynamics of our business or our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future. With that, let me turn the call over to Tom. Okay. Thank you, Reuben, and thank you all for joining the call today. I want to apologize in advance for the unusual length of my comments today, but there are a number of initiatives, some of which have been in planning for years, some for a few quarters, that are converging at C3 AI to some of which you will want to understand to fully appreciate the gestalt of the business operations at C3 AI. It is clear that the commentary that we have all been hearing in recent earnings announcements about market uncertainty, budget cuts, and lengthening sales cycles as the market anticipates economic downturn is real. This was our experience in the last quarter also. Our customers and prospects appear to be expecting a recession, and we are seeing customer purchasing behavior consistent with that expectation. It appears to us that this market downturn could be significant. We have put into place a combination of measures that will allow us to not simply weather this downturn, but to emerge a stronger, more rapidly growing company with greater market share and greater market presence. The measures that we have implemented include a restructured, more productive enterprise sales function, an enhancement of our strategic partnering model, several new product offerings, a new consumption-based pricing model, and an acceleration of our path to profitability. These measures in aggregate will allow us to accelerate sales cycles, accelerate product adoption, increase market share, increase revenue growth, and increase profitability. I will explain each of these actions in some detail, but first, I will comment on the financial results and significant developments during the Q1. Our total revenue of $65.3 million grew 25% year-over-year. This was in line with our guidance. I will comment also that this is the 7th consecutive quarter as a public company that we have met or exceeded revenue guidance. Our subscription revenue for the quarter was $57 million, a growth rate of 24% year-over-year. Subscription revenue represented 87% of total revenue. Services revenue was 13%. Total RPO grew 58% year-over-year to $458.2 million. Our current RPO at the end of the quarter was $173.5 million, nearly 20% growth year-over-year. We signed 31 customer contracts in the quarter and had an average total contract value of $1.4 million as it compared to 24 contracts with an average TCV of $1.9 million in the year ago quarter. This represents a 29% increase in contracts compared to the year ago period. We maintained non-GAAP gross profit margins of 81%. Customer growth increased 27% over a year ago, ending the quarter with 228 customers. We ended Q1 with $938.2 million in cash and investments. Free cash flow in the quarter was an outflow of $54.8 million. Note, please, that this included $15 million of CapEx related to the build-out of our new headquarters and $16 million related to a commission payment to Baker Hughes. Since going public in December 2020, C3 AI has spent $245.9 million on R&D to expand our technology leadership. This investment amounted to 59% of revenue. The bulk of this substantial investment was focused on the development of Version 8 of the C3 AI platform, a four-year engineering effort representing over 1,000 person-years of development. It provides our customers order of 10 to 1,000 times scalability and performance improvements, many new data integrations, new no-code, low-code, and deep code development tools, improved data science tools, and importantly, dramatically improved ease of use, more comprehensive context-sensitive documentation, new integrated development environments, a content-rich distance learning library for remote training, and a 24/7 developer community. The capabilities of C3 AI Version 8 are a carefully planned prerequisite to our important transition to a new consumption-based pricing model that we are announcing today. C3 AI has been broadly recognized in the industry for its functional and architectural leadership as a, if not the, premier AI ML application development platform in the market by Forrester Research, Gartner, Constellation Research, IDC, and Bloomberg. In July, Forrester Research named C3 AI a leader in the 2022 Forrester Wave for AI and machine learning platforms. This is a first of its kind comprehensive analysis of enterprise AI and machine learning platforms, highlighting the importance of comprehensive AI ML platforms like C3 AI, as opposed to do-it-yourself widgets to realize business value. Of the 15 vendors evaluated, the Forrester report ranks the C3 AI platform and applications number one in strategy, number one in product vision, number one in application tools, number one in application accelerators, number one in market approach, number one in runtime, number one in architecture security, number one in data features, number one in partner ecosystem, and number one in performance. The Forrester report concludes that C3 AI could become, and I quote, "The de facto AI platform standard for the world's most complex industries." Aside from the newly enhanced C3 enterprise AI, aside from the C3 AI platform, and the enhancement of the new applications that we've developed, you can think of as AI-enhanced or predictive ERP, supply chain risk, inventory optimization, process optimization, fraud detection, predictive maintenance, anti-money laundering, et cetera, each with industry-specific versions. Our R&D investments resulted in the release of five new C3 AI applications since our IPO, each with functional capabilities and addressable market opportunities sufficient to support a standalone company. Let's start with C3 AI CRM. This allows customers to make their existing, often very expensive CRM investments instantly predictive. We've been piloting the new C3 AI CRM product with a large professional services company, an industrial products company, and a large fintech company. The initial results are dramatic. According to Gartner, this, the CRM market should reach $137 billion in 2025, and we believe C3 AI CRM addresses a significant unmet need in that market. Let's talk about C3 AI ESG. This enables customers to integrate data from all their ERP, supplier, customer, and manufacturing systems, plus relevant exogenous market data, emissions, and commodity data, and provide comprehensive Scope one, Scope two, Scope three ESG reporting in compliance with any of the SASB, GRI, TCFD, and CDP reporting standards. C3 AI ESG, like all C3 applications, is entirely predictive, allowing companies to accurately forecast their ESG KPIs and plan and manage mitigation measures to achieve their corporate ESG objectives. Consistent with our overall partnering strategy, you can expect us to partner with a large global service provider to bring this product to market. According to Verdantix, ESG is estimated to be a $30 billion digital market by 2030. C3 AI Property Appraisal. Designed to meet the needs of state, county, and local governments, C3 AI Property Appraisal allows real estate appraisers real-time integration of all data sources and the application logic necessary to rapidly complete commercial and residential property appraisals using a multiplicity of valuation technologies, including income capitalization, sales comparables, and cost of replacement. Complete evidence packages are provided to defend appraisal protests and adjudication. Initial results suggest this application reduces the time and cost to complete appraisals by an order of magnitude. C3 AI Property Appraisal addresses the needs of over 3,000 U.S. counties, over 19,000 U.S. cities, villages, and towns in 50 states. C3 AI Law Enforcement. Derived from our C3 AI Intelligence application developed for the U.S. Federal Intelligence Community. C3 AI Intelligence Analysis for Law Enforcement provides peace officers the ability to apply the power of AI to rapidly investigate crimes. A unified current data image of criminal history, law enforcement records, cell phone tracking, traffic violations, past associations, gang membership, vehicle records, jail records, surveillance images, and body camera footage, social media, and news is embedded in an intuitive workflow employing sophisticated AI and ML techniques to surface insights in near real-time. Designed to meet the needs of over 15,000 law enforcement agencies in the U.S. alone, according to the market research firm MarketsandMarkets, this is expected to be a $22 billion software market in 2026. C3 AI Ex Machina. This is a point-and-click drag-and-drop analytics tool that enables business analysts to rapidly apply sophisticated AI ML techniques and predictive analytics to large data sets. Ex Machina can be used as a standalone tool and is fully interoperable with the C3 AI enterprise applications and the C3 AI platform. Ex Machina meets the needs of the rapidly growing citizen data science community. Gartner predicts this is a $14 billion addressable market in 2025. Now, in response to your requests from the investor community to see C3 AI application demos, we have published demos of these and other applications on our website at this address that's shown, C3, basically c3.ai/applications. These demonstrations are available to you today. In addition, to provide you even more complete information about these applications and our other applications, we're hosting a C3 AI live demo series, starting in September to provide you more in-depth product demonstrations. Registration for these demonstrations opens next Tuesday, and you can register at our IR site at c3.ai. Talk a little bit about, you know, a few about customer success in the quarter. Our customers continue to be highly successful with their C3 AI applications. Shell, for example, continues to expand the global deployment of its AI applications to deliver cleaner, safer, more reliable energy with less environmental impact. At Shell, we integrate over 1.2 million data streams and monitor over 13,000 pieces of critical equipment in near real-time. At the U.S. Missile Defense Agency, they submitted its third order against our five-year, $500 million production OTA agreement that we were awarded in December 2021. This agreement makes it easy for everybody in DoD to purchase C3 AI products and services. At the U.S. Air Force Rapid Sustainment Office, we continue to expand and scale our efforts to improve aircraft readiness and now have 14 aircraft platforms live on our software platform, including the F-15, F-16, F-18, F-35 Joint Strike Fighter, C-5 Galaxy, KC-135, Black Hawk helicopter, and others. Our results for the B-1B bomber demonstrate the capability increase daily mission-ready capability by 22%-27%. The value of this may be incalculable. For those of you who are interested, go look up the B-1B bomber on Wikipedia. This is a very cool supersonic aircraft. Basically, we're able to increase the number of aircraft that are available in any given day by order of 25%. This is a big deal. We expect, as a result of this, to see significant licensing expansion of this program in the coming year, leveraging the $100 million and $500 million ATO contract vehicles that we have been awarded to expand this AI predictive maintenance application across many additional aircraft platforms. Let's talk about our partnering models. We further expanded and deepened our highly productive strategic partnership with Google Cloud in Q1. This is a big deal. Now, under this enhanced strategic partnership, Google Cloud has substantially increased its commitment to C3 AI over the next three years to co-sell and co-fund over 100 new C3 AI tier one pilot deployments. Okay. Talk about Microsoft joint selling activity with Microsoft was brisk in Q1 with over 16 joint selling agreements. Microsoft also funded C3 AI trials to accelerate new customer acquisition. To date, we have closed over $265 million in contracts with Microsoft. We're seeing a significant uptick, okay, in joint selling interest from AWS that we expect to continue and to grow in fiscal year 2023 and beyond. AWS remains our largest installed base with approximately 56% of our customers running on the AWS cloud. Our strategic partnership with Baker Hughes remains strong. In Q1, C3 AI and Baker Hughes signed one of the largest petrochemical companies in Latin America to license the C3 AI Reliability application. In addition, C3 AI is collaborating with Baker Hughes, Microsoft, and Accenture to develop and market a comprehensive industrial asset management solution for clients in the energy and industrial sectors. Now, let me make some comments on kind of the overall kind of macro market conditions that we saw last quarter. The fact of the matter is that, you know, similar to what we've been hearing from other companies, we saw a significant change in the business environment in the quarter with the lengthening of decision cycles, and that was particularly accelerated in July. In the course of the quarter, we saw 66 forecast deals move out of the quarter, many of which we would have fully expected to close under normal market conditions. While we expect that the bulk of these transactions will close going forward, it is clear that the decision processes are being subjected to more rigorous budgetary scrutiny and additional levels of approval authority. As a result, we have gotten together with the management team, and we have taken decisive action to address what appears to be a significant global market correction to accelerate business, accelerate profitability, and strengthen the company. We are substantially reducing spending that does not directly impact revenue to accelerate our already communicated path to profitability and importantly, preserve our significant cash resources. We have further adjusted our go-to-market model, our partnership model, and our pricing model around consumption-based pricing to better meet the needs of our customers and more effectively address the market opportunity in this new economic reality. With $938 million cash and investments in hand, we are well-positioned to weather this economic storm. Now, we have taken action to accelerate our path to profitability and have restructured our pricing model in a manner consistent with SaaS industry standards to accelerate business velocity, increase revenue visibility, increase revenue growth rate, and increase profitability. We will emerge from this recession a stronger and more competitive company. We have reduced marketing expenses and cut virtually all non-critical expenses. We continue to hire, especially in sales and engineering, and our engineering growth is expanding more rapidly in Guadalajara with its significant cost benefits. As we enjoy non-GAAP gross margins in excess of 80%, it is a straightforward proposition to reach non-GAAP profitability and cash positivity from normal business operations. As a percent of revenue, we have taken action to target a reduction in marketing expenditures from 29%- 11%. We're reducing R&D expenses just as associated with the scale of what we're doing from 44%- 29% of revenue. G&A expenses will be reduced from 15%- 12%. We expect sales expenses will increase from 23%- 26% of revenue. While we are not providing guidance to this effect, we currently expect to attain non-GAAP profitability and positive cash generation from normal operations by the end of fiscal year 2024. During this same period, absent any extraordinary events, we do not expect our cash and investment balances to fall below $700 million. Now, I want to talk about our sales force. In our Q2 fiscal year 2022 call, I talked about re-engineering the profile of the sales organization from a traditional SAP, Oracle, enterprise-like sales software organization to more of an emphasis of, organization consisted of, you know, highly educated, experienced technical domain experts who are engaged in selling. We have succeeded at that task. After an extensive interview and screening process, we hired, trained, and continue to mentor scores of new high-performance, technically competent technical sales professionals, and their initial progress and promise is impressive. I want to give you a feel for the composition of this new team that is becoming the fabric and leadership of the new C3 AI sales organization. The average age is 35. All have one or more advanced degrees. 67% have MBAs. On average, they have 12 years of work experience. Many were at or near the top of their classes at West Point, the Naval Academy, MIT, Princeton, Illinois, Michigan, Berkeley, Stanford, École Polytechnique, et cetera. They went on to gain technical advanced degrees at the Army War College, MIT, Georgia Tech, and Carnegie Mellon. Many continued with MBAs from Harvard, Booth, Sloan, INSEAD, et cetera. They have commanded F/A-18 squadrons. They have taught in the Top Gun school. They have worked at BCG and Bain, managed at Goldman Sachs, Amazon, and SpaceX. We are providing this team with extensive sales training and ongoing sales mentoring. This program is exceeding our expectations in every respect, and we will continue to expand this new sales force in the coming quarters. I can assure you this is a force to be reckoned with. Now, the C3 AI pricing model. This is important. I wanna talk about the switch from subscription-based pricing to consumption-based pricing. This is a secular change in our business, okay? We have been planning it for some years, and it is now enabled by the general availability of C3 AI Version 8, both the platform and the applications. Now, the C3 AI pricing model has historically been something of a black swan in the SaaS world. While others, including Snowflake, AWS, Azure, Datadog, and MongoDB have been selling based on a low price of entry, pay-as-you-go consumption-based pricing model, C3 AI has historically been an anomaly in the SaaS world with a subscription-based pricing model. Our sales cycles included lengthy negotiation of what were typically 36-month contractual contracts, including developer license fees, application license fees, data scientist license fees, professional services, and runtime fees, with the total initial commitment ranging from $1 million- $35 million or more. Now, these customer commitments typically expanded over time in $1 million, $5 million, or even $50 million dollar increments as our customers achieve success. We've been able to command these types of customer commitments in the past decade because of the substantial customer value that our products and services generated, sometimes on the order of billions of dollars a year in economic benefit. This pricing model has allowed us to attain 228 customers, realize a 38% revenue growth rate in fiscal year 2022, and achieve a compound annual growth rate of 40% for revenue from fiscal year 2019 through fiscal year 2022. The downside has been more lumpiness than we would like to see in bookings, lengthy sales cycles, and higher levels of uncertainty associated with individual deal closing period. While this elephant hunting subscription sales model has served us well in establishing C3 AI as a leader in enterprise AI, it is clear that it is not well suited to the deliberate decision and approval processes inherent in the current economic environment. With the completion of C3 AI Version 8, this is the ideal time for us to adopt a consumption-based pricing model, partner model, and sales model that'll allow our customers a low-cost point of entry and pay-as-you-go expanded usage pricing. Our new consumption pricing model brings us in line with what we believe is becoming the accepted standard in enterprise SaaS application software pricing. The sales motion now begins with a 6-month pilot project during which the customer will bring its first C3 AI enterprise application into production use. After the initial six months, ongoing pricing is simply $0.55 per CPU hour. The cost of entry is low, the business decision to move forward is easy. The protracted acquisitions deliberation process is avoided. While the initial revenue ramp will be slower from each new customer, considering the substantial increase in the number of new customers, we expect to see a substantial increase in revenue and revenue growth rates after three-four quarters. We believe this will be further accelerated by increased effectiveness of our joint partner selling model, and especially by our new agreement with Google Cloud to co-sell and fund 50% of the cost of over 100 tier one new customer engagements, making it quite easy for new customers to adopt C3 AI applications. Now without providing guidance, okay? For modeling purposes only, we will assume that each onboarded sales rep can close average of four new customer pilot engagements per year. We assume that 70% of pilots will convert into production use. We estimate customer attrition at 10% a year. We believe that each new pilot will generate on average $80,000 per month for six months. Okay, and then initially $70,000 per month in consumption fees, growing as actual usage increases. Assume that we have an average of 60 sales professionals in Q2, and that sales headcount will grow at 10% per quarter. If you run this model out eight-12 quarters, you will find that revenue flattens for three quarters and then graphically accelerates in fiscal year 2024 and beyond to growth rates in the top decile of the SaaS software universe. Our new consumption model aligns well with our partners Baker Hughes, Google Cloud, Microsoft Azure, Amazon Web Services, and fits perfectly with the hyperscaler marketplaces and their pricing models. Combining the effectiveness of our new sales organization, the consumption-based pricing model, the power of the Google Cloud joint sales and pilot funding program, and our other important marketing partnerships, we expect a substantial increase in new customers, an associated increase in SaaS revenue growth rate, and market share. Like other companies that have transitioned from perpetual licensing to subscription licensing or subscription to consumption licensing, including, for example, Adobe, MongoDB, New Relic, and Elastic, the near-term impact on revenue and RPO will be negative. After three-four quarters, we expect it to become highly accretive to revenue and RPO. The near-term effect on new customer cap will be quite positive. Follow with us. Okay. Our prospects, and we are confident that this will significantly. Consumption pricing model against actual revenue that we realized from a number of representative C3 AI customers over their initial 10 quarters, and we find it to be license revenue neutral across that customer list in aggregate. Okay. Now we can see, you know, for example, this. I thought there were kinda three slides that were gonna happen here, but I guess it didn't work that way. Okay. We can see that this is so, this. Okay, so this shows the orange line, shows our cumulative subscription revenue that we get from 10 actual customers over the first 10 quarters. This amounts to, initially it was $60 million in bookings, and when you put the additional bookings that each did over this 10 quarters, I think it's $214 million in bookings. In aggregate, it adds up to $41 million in revenue. Now, using this new subscription-based pricing model, it's basically revenue neutral, except we basically had to close ten half-a-million-dollar deals, and after that, it's just 55% for CPU out. It avoids the, you know, having to close the, you know, $60 million in initial deals and then $1, $5, $10, $25, $50 million incremental deals to get $210 million in bookings. People in this market environment, I'm telling you, closing a $50 million deal with any multi-billion-dollar corporation, it has to go to the board, okay? You could play this game in the last decade, and we played it very well, but that game is over, okay? Now we have a pricing model that we think meets the market needs quite well. Okay. Basically we get the same level of revenue by closing 10 deals for $500,000 and we have to keep the customers happy. Okay. Bottom line, we're running a leaner company with a faster path of profitability. We are conserving cash. We got lucky, okay, really, in that the availability of Version 8 happened to coincide with the market downturn, enabling us to shift to this consumption-based pricing and partnering model really at an opportune time. As we can see, growth will be slower. This is the blue line is. The orange line shows basically where your analyst projections were for the company growth, kind of, you know, in the next, you know, 12 quarters. Okay, we're gonna see the blue line is the shift to consumption-based revenue. Revenue flattens out in the short term because we're doing, you know, $500,000 deals instead of 50 million dollar deals, okay? You know, as this, you know, as the number of customers increases, you know, about three or four quarters out, we cross to a dramatically accelerated revenue growth rate. We expect to see growth will be slower for the next few quarters, and then we expect to see rapid revenue growth, increased customer count, and increased profitability in fiscal year 2024 and beyond, okay? When this economic turmoil has subsided, C3.ai will emerge stronger, bigger, more profitable, with greater market share. Turning to guidance, as mentioned, we expect a short-term negative impact on our revenue growth as a result of the new consumption model, and our guidance takes that into consideration. The model also suggests when you run the model with the assumptions that we have provided, you know, you'll see that the model anticipates a dramatic acceleration of revenue growth and profitability in fiscal 2024 and beyond. As such, our Q2 2023 total revenue is expected to be in the range of $60 million-$62 million. Our total fiscal year 2023 revenue is expected to be in the range of $255 million-$270 million. For fiscal year 2024 and beyond, we expect revenue growth will revert to historical annual growth rates, to be more in line with our historical annual growth rates. Actually, we expect them to be significantly in excess of 30%. Now, I'll turn the call over to my colleague, Juho, to provide more color on the financial results of the quarter. Juho. Thank you, Tom. I want to provide a brief recap of our financial results. All figures will be discussed on a non-GAAP basis unless otherwise noted. As Tom mentioned, we ended the quarter with revenue of $65.3 million, which represents a 25% year-over-year growth. Subscription revenue increased by a solid 24%, contributing 87% of total revenues. Gross profit increased 29% to $52.6 million, and gross margin increased 260 basis points to 80.6%. Operating loss improved $7.3 million year over year, while operating loss margin improved from -42% to -22%. Our customer count increased by 27% year over year to 228, and we closed 31 deals during the quarter. This reflects a nice increase in our band of less than $1 million deals, which grew at 44% year-over-year. We made progress on our path towards lower average total contract value or TCV, with an average TCV of $1.4 million in the Q1, down from $2.9 million in the sequential Q4. This gives us further conviction that transitioning to smaller contract sizes and expanding our go-to-market strategy to include smaller deal values is the right way to engage new customers. Now turning to our RPOs and bookings. We reported non-GAAP remaining performance obligations of $496.8 million, which is up 39% from last year. We were especially happy to see further diversity in our bookings by industry. High-tech increased to 46% of bookings. Turning to cash flow. Free cash flow for the quarter was an outflow of $54.8 million. About $15 million was used for the build-out of our new headquarters. In addition, we had a commission payment to Baker Hughes of $16 million. Normalizing for these two payments, our adjusted free cash flow was an outflow of $23.8 million. As a reminder, this will not be a meaningful factor impacting our path to profitability because the impact will be amortized over the term of the lease. Regarding our transition to a consumption pricing model, we have provided a set of assumptions that are intended to assist you in modeling the future potential revenue for the company. Please refer to the attachment that is downloadable on our website after the call. We're keenly focused on executing against our path to profitability. As the creator of the enterprise AI space, we have made significant investments in branding and marketing from the start. As we have now successfully built a strong brand in the marketplace, we're comfortable reducing our investments there. We have always been focused on delivering long-term sustainable, profitable growth to our shareholders, and we're pleased to be able to accelerate our path to profitability with our transition to a consumption-based model. With these remarks, I would like to open this up for questions. Operator? Certainly. Ladies and gentlemen, if you have a question at this time, please press star one one on your telephone. One moment for our first question. Our first question comes from the line of Pat Walravens from JMP Securities. Your question please. Okay, great. Thanks. If you look at fiscal 2023, you took revenue down $50 million at the midpoint. How much of that is because of the consumption model and how much of it is because business is slower? Good question, Pat. I mean, first of all, there is no question that business is slowing down in the market, but it doesn't matter. If we'd done this, made this change at any growth rate, okay, revenue would have flattened. Just like, as companies switch from professional licensing models to subscription models. The change in growth rate is absolutely driven by the change in pricing models. Instead of doing $5 million, $10 million, $25 million, $50 million transactions, we're now doing a lot of $500,000 transactions, okay? You know, when you run the model, there's no way this does not flatten revenue for a few quarters. Juho, you have anything to add? No, I think Tom summarized it perfectly. Okay. I mean, let's say you'd stuck with the old model, what would guides have been like? Honestly, I think trying to sell $10 million, $20 million, $30 million, $50 million, $60 million transactions in the next year could be pretty tough, Pat. I mean Okay. You know, as I go visit. Um, and then- At large chemical companies, manufacturing companies, food companies, I mean, they're, these guys are all going to the bunkers, okay? Kind of they're preparing for recession. Okay. What drove RPO? I mean, RPO is actually, I think we were looking for $420, it was $458. What drove that? Or what drove that? I mean, we still had lots of deal activity during the quarter, and that's a natural increase on the total RPO every time we do one of those bookings. I think, Pat, one of the things that we're very excited about is the current RPO increased sequentially. That further highlights- What drove it is very similar. 66 deals went out of the quarter, okay? That's why RPO is less of a number than he's got. I mean, if you closed them, they'd be in our. No, you guys beat. Under, on the non-GAAP RPO, yes. non-GAAP RPO? Yes. Yeah. Okay. He's right on that. Yeah. Yeah, you beat. I'm just wondering, was there something big with Google or something that had a ten-year term or something like that that helped drive that number? No. I mean, we've had normal business activities. Show the deal plan. Go back and show the deal plan. Go back up. Show the mark. There, there it is, Pat. Most of what you see here, Pat, we have lots of activity in the less than $1 million range, which we're, you know, very excited about, and we only had one larger deal in the quarter, in excess of $10 million. Okay. Last question. Are there any layoffs as part of the cost reductions? No. Okay. Thank you. Thank you. Our next question comes from the line of Sanjit Singh from Morgan Stanley. Your question please. Hi, this is Theo. I'm with Sanjit. Thanks again for taking the question. I wanted to dig a bit into the shift to consumption pricing and especially sort of on the install base side. I mean, you talked a lot about kind of the new customers, but I was wondering about the adoption with existing customers and sort of what you're expecting over what period of time the install base would transition to a consumption model, and especially for long-term contracts, can we see those transitions during contract terms or just upon renewal? Maybe second one for you. What really are the metrics to track here going forward to understand how demand is or how the business is executing amid the shift to consumption pricing? If you could maybe shed some light into sort of what KPIs become more or less relevant, as we're moving to the consumption model, that would be great. Regarding, let me handle the existing contracts. I think that the existing contracts will not be shifting to this model. Most of these contracts are so big now, and some of them are now in aggregate, you know, over $100 million. When you look at all the collections and terms and conditions that they have, they're actually more favorable than this pricing model. Okay. I don't think they're gonna wanna switch to this. As they renew, when they come up for renewal, they can switch to this if they want and work that out at the time. Juho, you wanna talk about KPI? Certainly new customers is gonna be an important one. Yeah, absolutely. Thank you, Theo, for the question. I think one of the things that should give you a lot of guidance on this is that you look at our slide deck, and we listed some of the assumptions. Those would be good things to track, but certainly new customers and then revenue, because, of course, consumption itself will be recorded as revenue for those periods. That will be one of the most important KPIs that we'll be providing in the future, of course. Awesome. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Pinjalim Bora from JP Morgan. Your question please. Hi, guys. This is Achit on for Pinjalim. Can you update us on what you are seeing with respect to Ex Machina, and is that resonating with the customers? Of Pinjalim Bora from JP Morgan. Your question, please. Hi, guys. This is Achit on for Pinjalim. Can you update us on what you are seeing with respect to Ex Machina, and is that resonating with the customers? I'm not sure what Ex Machina data that we have. We did one large agreement with Ex Machina. It's, you know, I just don't have this data before. Do you have the data here for Ex Machina? No, not specifics like that. I think the one deal that was larger for us, more important one. The larger insurance company that licensed it. Yeah, their comms. The other was an industrial manufacturing motors and- Well, let us do this. Reuben, let's prepare some detailed information and follow up on this. We just don't have it here. Got it. We'll do a follow back with you, and we'll get you all the details. Okay. Got it. What is your largest federal quarter since it aligns with your fiscal year-end? How are you seeing the pipeline build on that? Is there any sign of slowdown on the federal side that you are noticing? You're really breaking up, I think. How do we see the pipeline? Okay, the pipeline is longer than it's ever been. I can tell you that just with one of the partners who discussed, we're currently, you know, I think this number is right, okay, that we're currently in active discussion on, you know, 100 co-sell opportunities, okay, currently 100. That's just with one partner. The pipeline now gets dramatically longer. The number of new customers that we're expecting increase pretty dramatically. The pipeline is very long. You know, that being said, you know, you know, in the, you know, as we get into the fall of, you know, 2022, you know, with war, famine, you know, inflation and all the weird stuff that's going on, you know, if you have a, you know, $10 million, $20 million, $30 million, $40 million or $50 million deal in the pipeline, it's hard to handicap it. It really is. That's why, you know, we've been anticipating doing this for some years, and now with Version 8, we're ready. We're pulling the trigger, and we're going. Good. Thank you. Thank you. Our next question comes from the line of Brad Sills from Bank of America. Your question, please. Brad Sills, your line is open. Sounds like Brad might have gone on the next call. Sorry about that. Can you hear me okay? Yes, we can hear you now. Okay, wonderful. Sorry about that. I wanted to ask about just color on some of those 66 deals that pushed out. What are your thoughts on, I know there are a lot of moving parts of the macro right now, pricing changes, partner model changes, but, you know, any visibility as to, you know, timing there, when those might close? Well, many of them, it's really a question, Brad. We're now coming back to them with basically the new pricing model, okay? It is being very well received. You know, we think they're very real. We think they're a lot easier to close at $500,000 than they would have been at $5 million or $10 million. You know, that provides a tailwind for our business. The pricing model, I mean, they've got a number of aspects to it that are really being well received. You know, we used to price per developer. We used to price per data scientist. Now, it's unlimited developers, unlimited data scientists. For the first six months, it's unlimited runtime. We've kind of taken out all the obstacles that were there. You know, if you get somebody to sign up for $500,000 pilot for six months is not difficult, okay? The decision to go forward, you keep it, you pay 35% per CPU hour. Doesn't need to go to the board, doesn't need to go to the audit committee, doesn't need to go to the CFO. Any person in the line of business can sign it. You know, I think that looks very promising. Got it. Thanks, Tom, for that. If one more, if I may please, on just the GAAP RPO, maybe this is one for you, Juho. You know, did decline 4% this quarter from last quarter. Was that related to this change to consumption pricing from subscription? Anything you can do to help us unpack just the GAAP number, you know, quarter on quarter? Thank you. Well, I think that's the kind of on Tom's opening remarks, that it was a tough quarter. Then also the fact that we have the 66 deals that were pushed out in the quarter, that definitely impacted the sequential decline in RPO. That's the primary driver. Got it. Thanks for that. Yeah. Thank you. Our next question comes from the line of Michael Vidovic from KeyBanc. Your question, please. Hi, thanks for taking my question. On the Baker Hughes relationship, did you meet targets in the quarter, and have there been any changes to the longer-term targets with that? Did we meet targets in the quarter? I think we did. Yeah. I think we did, Michael, and the relationship with Baker Hughes remains intimate. I mean, and we're in discussion about any number of interesting things, you know, one of which is the relationship that we discussed with Microsoft, Accenture, Baker Hughes, and C3 to build a, you know, kind of very robust, industrial asset management product. I think we announced that a couple quarters ago, and that's, you know, I was just down in Houston working out the details of that. Baker Hughes is going well. Okay, great. Just the last one for me. Last quarter, you talked about deals being pushed out into fiscal Q1 and fiscal Q2, but you said at the time that they were not being retired. Did that play out as you expected? Were most of those closed this quarter, or do you see further pushouts? No. No. Hey, guys, it was a tough quarter out there. I mean, we saw a lot of deals move sideways. All of a sudden, the people who had the approval authority to sign deals in previous quarters, all of a sudden they didn't have the approval authority to sign deals. You know, right now doing large multi-million-dollar or $10s of millions capital contracts in corporations in any industry in the world, I mean, is tough. You know, everything that we're hearing about in every conference call on CNBC or every report on CNBC in the morning, it's true, guys. People are getting ready. They're going into a recession footing. We think that, you know, what we're doing here is quite timely, and it's gonna allow us to power through it. Again, we have almost $1 billion cash in the bank. I think we are well prepared for this. Great. Thank you. Thank you. Our next and final question comes from the line of Gal Munda from Wolfe Research. Your question, please. Hey there. Thank you for taking my questions. The first one is just around the new model. Is it fair to assume that all new contracts, all new deals are going right away into the consumption model, or would you still kind of allow for exceptions for if there was something already in the pipeline for us? Oh, okay. Great question. Number one, yes, there are a few contracts that we're closing where the paper's already on the table, and we're just, and everybody's happy to move forward. Secondly, you can anticipate that, you know, we will likely have done kind of very large transactions in the past with companies like Baker Hughes, Engie, Shell, where somebody will want to go all in in a big way. You know, we're reasonable people, and we will sit down with them, and we will negotiate a win-win arrangement that will be based upon some other terms than this consumption-based pricing model. No, you won't see. We'll still see, you know, the occasional black swan that comes in here that, you know, looks like an 800-pound gorilla and wants to do business in a big way, and we're reasonable people, and we'll find a way to do that. That makes sense. Just as a follow-up, you mentioned that, you know, within the quarter there was actually quite a bit of activity. It sounded like maybe from a linearity perspective that maybe towards the end of the quarter you saw a lot more kind of issues with closing the deals and some of that hesitance. Is that a fair assessment of the quarter, the way that you've seen it, or was it just the whole quarter was very, very hard? No, I'll be honest with you. July was a bracing wind. I mean, it really was. It was a bracing headwind in July, and something changed. You know, something significant changed in July in the world. Mm. There, I mean, there were a number of transactions, everybody that I would have bet my life on, okay, with people who I know, with whom we've done business before. Many of them existing customers, you know, some existing customers, some not, and I mean. They moved sideways. Something happened in July out there that was significant. Got you. Thank you. I know. Yep. It's not, it's definitely not specific to us. This is a macroeconomic phenomenon. It's going to affect everybody. That's good. Thank you. Thank you. As a reminder, if you have a question at this time, please press star one one. This does conclude the question and answer session of today's program as well as today's program. Thank you, ladies and gentlemen, for your participation. You may now disconnect. Good day.