Operator: Thank you. Our next question has been Derrick Wood with TD Cowen. Please proceed with your question.
Derrick Wood: Thanks. Kevin, I’ll kind of dovetail off that question. It seems like you’re implying kind of a 13% operating margin in 2024. And you mentioned that you’ll be trending towards rule of 40. I suspect you’re not expecting ARR growth to be in the mid-20s next year. But just curious what that comment kind of — how that — how we should take that comment and think about kind of a base level of starting point of revenue growth in 2024, specifically, if the environment stays where it is?
Kevin Rubin: Yes. Thanks Derek. I appreciate the question. No, I was not trying to signal that we would be a rule of 40 next year. It was really a tag-along comment to the five points plus margin expansion that if we don’t see appropriate levels of growth relative to the long-term target that we put out there, that we would be seeking to drive an acceleration in operating margin as a result.
Derrick Wood: Okay. Too early to give guidance on top line there. So, Mark or Paula, I guess, I mean a few things coming to mind in terms of like, what could be the underlying root cause that I wanted to tease out. You already addressed competition, but I guess, I’d start with like cloud and then just pricing and I mean you guys are still kind of selling mostly on-prem licenses. I’m just wondering, if you feel like there is more budget constraints there than cloud and you’re just still so early with their cloud offerings. May be that’s an element out there. And then pricing, I think when COVID hit, pricing became a little bit more reflection point. Is that coming up in terms of more scrutiny? And any changing thoughts on pricing go to market? Just was hoping to tease out those two things.
Paula Hansen: Sure, Derrick, I’ll take that. So, I don’t feel as though cloud is having any impact on the results that we delivered, we are very clear with our customers that it’s an end strategy that will go whatever direction they want to go, depending on where they are in their cloud journey. And a lot of our customers are doing both with us right now. So, I don’t think that’s a factor here. Relative to pricing, of course, like everybody, there were a little bit more scrutiny from customers negotiating and lots of sort of budget envelopes that that people were working towards. But I don’t think that it’s manifesting itself in major pricing changes that we need to make. And we’ve been pretty successfully reducing discounts for the last six, seven quarters in a row, which feels like the market supports it and that customers are still seeing the opportunity and the value in our solutions.
Derrick Wood: Okay. Thank you.
Mark Anderson: Thanks, Derrick.
Operator: Thank you. Our next question is from Joel Fishbein with Truist Securities. Please proceed with your question.
Joel Fishbein: Thanks for taking my questions. I have a two parter as well. First one, I guess, for you, Paula, are you seeing any unwanted sales attrition as it relates to some of the woes that are going on? And the second one is, I would love to hear about [indiscernible] and Databricks partnerships and when we could potentially see some revenue from those? That would be really helpful. Thanks.
Paula Hansen: Sure. Thanks, Joel. We actually have not experienced any increase in sales attrition. It sort of remains at a pretty low level right now. Certainly, since in the nine quarters that I’ve been here, it’s one of the lowest levels. Relative to our partnerships with Snowflake and Databricks, really excited with the progress on the Snowflake relationship. We announced a lot of innovation at Summit at the end of June. We have — we continue to have nearing 1,000 joint customers. We demoed some exciting integration for the manufacturing vertical. So, it feels like we’re still in the early days of momentum, but lots of opportunity ahead. Databricks, similar types of integration efforts and not as far along in that partnership just we got a little bit later start there, but still having positive market reaction to the partnership.
