We’re able to again shorten sales cycles, but then benefit from faster expansion. I think the ability to go directly to developers and move from trial to initial customer is something we’ve been talking about and we’re seeing that. And that’s not just net new customers, but that’s also new applications in existing accounts where we may be able to migrate into a line of business or a particular part of multinational that we weren’t able to get to begin with. So, overall really healthy, again, we’ve had very high expectations for Capella across all of these variables and we’re really starting to see that come to fruition.
Sanjit Singh: That’s really encouraging. I’m sure we’re going to hear more about that next week in the ORIX at the Investor Day. Just as a follow-up, as we go into Q4, and obviously Q4 is a big quarter for everyone in software and I’m sure that’s the case with Couchbase as well. Going into Q4, Greg, is there any way you can give us a sense of the size of the renewal base this year versus last year? How do you feel the sales team is in terms of being on top of those renewals given that the macro is still a little challenging out there?
Greg Henry: Hey, Sanjit, good question. Yes, Q4 is a big one for us. It’ll obviously be should be our biggest quarter ever. And the renewal pool is very healthy. It’s slightly larger than last year and I would just add that, you probably saw we had a little bit wider guidance range at times. There’s several of our largest customers have renewals coming up between Q4 and Q1. And depending on the timing of when they get done, obviously, the Q4 ones will happen now. The Q1s could happen in Q4, they could happen in Q1 depending on timing. But those will drive a significant amount of what that actually looks like. So, it’s a big quarter, there’s a couple of really big deals out there that are going to be really exciting to do and, that’s what’s going to drive Q4. So, we’re looking forward to it and as we said we’re looking forward to sharing more next week.
Matt Cain: Sanjit, if I could just pile on. We talked about the excellent operational performance in the quarter. That’s not just the efficiency and leverage that we demonstrated with the financial results, but it gets at some of the very things that you’re asking about. Never have I been more confident in the functions across the Company inclusive of our go-to-market teams. Really understanding where we are with deals, understanding how to position with the right economic value, managing pipeline, just driving linearity across the big core. So, there are big deal dynamics at the big quarter, but testament to the teams for the operational rigor they have in place and I think they are doing a great job and we’ll continue to deliver.
Operator: Our next question comes from the line of Ittai Kidron with Oppenheimer. Please proceed with your question.
Ittai Kidron: Couple from me Greg, can you remind us on the RPO, why is that not a good indicator for your business? I mean it’s been flattish for three quarters in a row and Capella cannot have too much of an impact on it given that it’s a low-single-digit percent of your revenue still. So, help us understand, remind us again, the disconnect between RPO and revenue?
Greg Henry: Look, on the RPO, I would just tell you and it goes back to the comment I just made on Sanjit. We have several of our largest customers coming up for renewal and typically they do multiyear renewals. So if you think about at the renewal point, if it’s a multiyear deal, you’re putting all that into RPO. And by the time you get to the end of that, there’s not much left. And so, I think you’ll see an improvement in RPO coming out of Q4 because of some of those particularly large deals which is why you’re seeing some variability in the timing whereas obviously the revenue stays it grows, it stays relatively consistent over time. So, the revenue that full value of revenues running, but there’s some of these deals that are renewing in Q4, there’s only one quarter left of RPO in the backlog if you will.
Ittai Kidron: Are these multiyear deals, Greg?
Greg Henry: Yes. These large deals are typically multiyear deals, at least two if not three year deals.
Ittai Kidron: And then, on Capella, on gross margin I understand the comments there, but maybe can you specifically comment on Capella specifically, meaning, is the gross margin of Capella still below 50% or has it already who improved above that level?
Greg Henry: Yes, Ittai, we haven’t obviously talked about that and spoken about the gross margin. I can just tell you that it has steadily been improving and we saw a very healthy uptick this quarter in particular and it’s doing exactly what we thought in terms of the growth of the business and the margin rate and so it is improving. And like I said, we had that one time comparison adjustment. So, we feel good about where the margin rate is on Capella and where it’s going to ultimately land. And as I was mentioning, the more volume we get there, it will only continue to improve.
Ittai Kidron: And then last one for you, Matt, on Capella itself. In what way are the customers that are adopting it, especially the new ones that are joining the platform different in their profile, in their use cases compared to customers you’re bringing on with your on premise platform?
