Question-and-Answer Session
Operator
(Operator Instructions) At this time I’d like to remind everyone in order to ask a question please press * and then the number 1 on your telephone keypad. Your first question comes from the line of Adam Holt of Morgan Stanley. Your line is now open.
Adam Holt – Morgan Stanley
Hi thanks for taking my question. My first question is can you talk, you talked a little bit about the success with the largest customers that came up for renewal? Can you talk a little bit about the customers outside of the top 25 or 30, what renewal rates were like and maybe a little bit for the total billings, what the mix between new billings and renewals was like in the quarter?
Charlie Peters
First on renewal rates, the only renewal rates statistics that we share are those in the largest, but I would add this color that we have had recently been working on various efforts to incrementally improve renewal rates overall. What we know we have shared previously is that where we have direct deals regardless of the size. Our renewal rates are quite high. When we have indirect deals and through possibly multiple layers of distribution, renewal rates historically have not been high. So over the last couple of years we’ve engaged in multiple efforts to gather the data about the end customer economically and incent the partners to help with renewals and various other things to improve that renewal rate. I’m happy to say that we’ve seen improvement there and those efforts are continuing.
Adam Holt – Morgan Stanley
I think I have a quick follow up. You also have another initiative to get folks to move from free to pay on a number of different levels. Can you update on your progress there as well?
Charlie Peters
Sure. This quarter we did not have any deals in the top 30 deals that were free to pay. We did have a number of smaller deals that moved from free to pay and that effort continues as well. I’m also happy to report that although it happened in the month of June so therefore not in, there was a sizable free to pay that we have managed to land this month which I’ll expand more about when we come to the Q2 call.
Adam Holt – Morgan Stanley
Right, thank you.
Operator
Your next question comes from the line of Sarah Friar of Goldman Sachs. Your line is now open.
Sarah Friar – Goldman Sachs
Great thanks very much. Charlie, could you talk a little bit about the differences you saw between large enterprise spending versus the more SMB type spending? Was there any shifting around in the quarter and I guess what I’m asking is SMB’s I feel have been more heavily hurt by this downturn, so are you starting to see them recover at all?
Charlie Peters
At this point I would say we have not seen any recovery and we’re not trying to call the timing of the recovery, the timing on the basis that the economic environment is going to stay fairly similar to what it is for the balance of the year. I would say this, like others that have recently reported we see a longer sales cycle and in some cases additional levels of approval in sale cycle. But that’s kind of the way it’s been for the last couple quarters. Our expectation is that’s going to continue for at least a few more quarters.
Sarah Friar – Goldman Sachs |
