Based on the deep dive of that analysis, we were actually able to redirect some of our top of funnel spend towards higher value, longer term customers. The result here was that we got less customers overall in the funnel and convert it to paid customers in Q4. But the customers we did bring in will be — by the higher or longer term value, higher ROI customers for that marketing spend. Going forward, as Joe already mentioned, we do continue to believe that the macroeconomic pressure against the free to paid will continue, but we will always be optimizing our marketing spend for the highest ROI possible. And where we see good ROI, we will put more investment behind it.
Operator: Your next question comes from Arjun Bhatia from William Blair. Please go ahead.
Arjun Bhatia: Hey, thank you guys for taking the questions. Maybe one for Cameron or Joe. Just as you’re thinking about how fiscal ‘24 plays out, how should we think about the cadence of the migrations that are left as we approach the February end of life? And, maybe this one’s more for Cameron, but who are the customers that are still left on server? Do they tend to skew smaller, larger? Anything you can give us there, would be super helpful. Thank you guys.
Joe Binz: Thanks, Arjun. This is Joe, I’ll take it first and then Cam can chime in at the end. We, as you we ended support for our server products in February 2024. Our focus there is obviously on migrating our remaining server customers to either our cloud or data center offerings, we expect that there will be uncertainty in quarter-to-quarter variability based on when and how our server customers ultimately choose to migrate. For now, we are assuming the trends we saw in FY ’23 with respect to how many server seats migrate and where they migrate to. We’ll continue in FY ’24 directionally through end of support. And then at end of support, we expect most of the remaining server seats that migrate will migrate to data center, and we’ve also built appropriately prudent assumptions for customers who will choose not to migrate in FY ‘24 into our guidance, and we’ll be able to share more on quarter-to-quarter assumptions related to that server end of support dynamics when we provide our Q2 guidance next quarter.
Cam?
Cameron Deatsch: Yes. Just adding to that, I just want to highlight that this entire transition since we announced the end of server support almost three years ago, has been a multi-year journey and a multi-year investment across all factions in Atlassian, whether it’s go to market, getting closer to our customers, whether it’s R&D teams, eliminating cloud blockers, delivering scale certifications, you name it. And of course, the variety of programs we’ve rolled out from price changes to loyalty discounts. And of course, this large compelling event with the end of server support coming up in February. So it’s been a multiyear journey, and as we’ve been saying, we’re very been very consistent and very happy with our performance along the way.
We’ve been able to retain a very large portion of our server customers, while getting our customers to choose cloud or data center appropriately, that’s it. We have about six months more as we come up to February. We have a significant server customer base still out there, they are of all shapes and sizes, I have to say, but they’re the ones who waited the last to the latest to make this choice, which is perfectly fine. The good part there is we are in a better position than we’ve ever been to help those customers make the right choice for their company and transition as quickly as possible. Obviously, we’ll incentivize our customers to choose cloud first and foremost in all of those conversations, but data center of course is there. And honestly, a great option for some customers out there who simply are still not ready to move to cloud.
