39:14 Three questions. And I'm going to let you just noodle on them. And I want to watch your brain
39:17 catch fire as you go through would love to know in consumption world, how do you set quotas?
39:24 How do you build commission plans? And how do you articulate your ARR to the board and
39:31 potential investors? Yeah, great question. Great questions. I'll just grab a popcorn and kick back
39:41 and let you teach me these because in over a decade of RevOps, I still have a tough time with them.
39:47 I think what's really interesting is, and I'll get to the plan and the and the quote apart in
39:52 a second, but I think what we're seeing a lot in these AI native companies is the Palantir model,
40:00 right? So what I mean by that is FDEs and deployment strategists that come in post sales
40:07 that drive the actual activation and the consumption. So that's the model we're following,
40:13 which then leaves the AEs to just get comped on bookings versus like, Hey, can we activate them?
40:21 Right? So yes, of course, they is responsible for selling the right deal, rightly sized,
40:28 and then hoping that they go live with, you know, you have your mutual action plan, you know, you,
40:34 you do, you get alignment with the champion, etc. Right? So that being said, like, we will just
40:42 comp the rep on the bookings. And then it's up to this, like, FDE plus deployment strategist combo
40:47 to actually get them to the consumption that they bought. And so it's kind of off the AEs plate,
40:52 like they're kind of on the hook for it, but not really. And we shifted that responsibility over to
40:58 the specialists. And then as far as the quota goes, this is actually really top of mind for us right
41:05 now, because we were we were reworking them. Since we pivoted into consumption model, AI native
41:13 products, so we like a little bit of context is super blocks relaunched back in April, with the
41:19 usage based model, right? And so instead of seats. And so since then, we've been trying to rework the
41:24 quotas, to your point, right to fit this new model, and how is it fair? The honest I got answered to
41:31 you in the beginning is just like, a little bit combination of art and science, it's not fully
41:36 science, right? We don't like you said, we don't have the historical data, but we do have forward
41:40 looking data. And we do know, and this is going back to the to going like 10 layers deep hand to
41:47 hand knife combat, right? So we know where we would win, we know what we where we're successful,
41:53 what ICP is what industries we win more in. And so we kind of look at the forecast, and then work
42:02 backwards from there. And all so kind of like a hybrid of top down and bottom up, right? So we
42:10 look at the forecast, look at the bottom up, what's realistic based on the competitors we're
42:13 going up against. And then that's where we have that, at least small sample set of what is our
42:18 win rate against certain competitors under these conditions. And so once we look at that, versus,
42:23 you know, what we committed to the board will come up with a number. And so I think it's less to do
42:28 with consumption based pricing there, but more towards like a hybrid approach of what's realistic
42:33 versus what we can do. And that as far as the comp plan goes, again, this is less of consumption
42:40 based, but more because we're series A, it has to be pretty aggressive and favorable for the reps,
42:45 right? Just because there has to be some type of carrot, right? Or else, why not just stay at,
42:51 you know, snowflake or Databricks or whatever. And then as far as ARR growth to execs,
42:59 we focus on enterprise. So I know a lot of massaging takes place when you do a lot of PLG
43:05 motion, right? Like credit card monthly, annualize that, like, is that actual ARR? What's your turn
43:09 rate? How sticky are you? So that's like a whole different conversation itself. For us,
43:14 we focus mainly on enterprise. So ARR is just traditionally in the sense ARR. And that's what
43:22 they've committed to. So not too much confusion on that part for us. No, that's great. I just love to
43:31 hear how people are navigating that. It's really timely with so many people moving to that pricing
43:37 model, because then the commission plan changes, how you set quotas changes. Even when you're
43:45 articulating ARR, there's two audiences. If you're communicating to your current board, it's not a
43:52 big deal. They can understand, okay, here's your actual revenue. Here's what's actually committed.
43:57 The tough part of course is, okay, are you doing another round? Usually they're valuing you on your
44:03 ARR. So how do you come up with the definition? Because you don't want to discount it too much,
44:09 you want to be able to bake in what the usage is. So just hearing people's approaches to that,
44:14 I think is really helpful, because so many people are moving to that model.
44:21 Yeah, it's interesting. And how we're experimenting is just with spiffs for like each quarter. So
44:30 that topic of, hey, you sold them a million dollars of consumption. Are they going to get there? How
44:35 soon are they going to get there? And so what we're trying to experiment with is, you know,
44:41 do you get X amount of months after to keep the account to expand it and make them go live? And
44:48 if so, you get a kicker, right? We're still working through like the mechanics, but we do want to
44:55 experiment with some time gated levers to drive, go live and consumption faster.
45:02 And we'll throw, you know, accelerators on that. But then if you, but on the flip side, right,
45:07 if you don't get them to go live or consume at the rate that they bought, then you might earn
45:13 less money on it. Right? So that's kind of what we're experimenting with. We still haven't found
45:19 what works well. And again, the business could change. But yeah, that's kind of how we're