Joe Binz: Yeah. Thanks, Michael. This is Joe. We did take a fundamental change from our prior cloud guide in the prior quarter and that we have three months more of data points, including December, which you mentioned and we have a much clearer picture of the trend line. And using that, our cloud guidance range assumes the macro environment gets worse in H2, and as a result, the trend lines from H1 continue into H2. You will also notice we have maintained a 5-point range on that guidance with the low end of that range, not only assuming continued weakness in free-to-paid conversions and paid seat expansions that we have seen year-to-date, but also some macro impact areas that have held up really well, frankly, through the first half of FY 2023 like churn, upsell and migration.
So the rest of the picture is largely in line or better than three months ago. In terms of what we have seen in January, I’d say, we have incorporated that into the guidance and it’s consistent with the assumptions that we formulate the overall approach.
Michael Turrin: Thank you.
Operator: Your next question comes from Kash Rangan from Goldman Sachs. Please go ahead.
Kash Rangan: Hi. Thank you very much. So we have taken the right step in bringing down the cloud targets, I think, it happened a couple of quarters consecutively. What gives you the confidence, therefore, how can we get the confidence that we are at the point where we can assess, what are the leading indicators for your cloud business kind of the rest of the business seems to be in pretty decent shape. Are you seeing any signs of stability at all, it does look like December ended on a slightly worse note than September did and hence the forecast. But what are the leading indicators that you are looking at that we should be looking at for any signs of stabilization that could help us get comfort in the cloud forecast that have moved on? Thank you so much once again.
Cameron Deatsch: Yeah. This is Cameron. I will take that one. So the two primary trends that we are seeing today that our headwinds are the free-to-paid conversions that we spoke about in Q1 continuing into Q2. We still see plenty of customers coming to our site, click in the try button and signing up for free versions of our products. They are just more — they are converting to paid customers, they are taking out their credit card at a slower rate than what we see in historic trends and that’s definitely continuing from Q1 to Q2. But, obviously, we can see as forward looking, we know how many people are signing up for our products. We know the activation rates of those customers. We know they are out there and actively using the free versions of our products and we are just simply trying to get them to add their 11th and convert to a paid customer.
On the user expansion side, that’s the other major headwind. This is basically people going from 20 users of Jira Software to 30 users of Jira Software. That, too, is another headwind we are seeing. We are seeing that largely slowed down across Q1 and Q2, and became more pronounced in Q2 within our smaller customer base. Once again, we see that in activity rates, we see the people adding their users and we see that in the overall monthly billing going forward. That said, as we look into this particular quarter compared from Q2 to Q3, we have seen largely the amount of customers that were downloading or downgrading from the paid plans down to our free plan. That’s all people going from 11 or 12 users to 10 or nine users, actually start to subside and that’s come back in January a little bit more positively.
