So hybrid search is a mechanism where you use a combination of vector search and semantic search and lexical search and use re-banking to come up with the most relevant answer like that is for customers as they are becoming more sophisticated in this area. They’re recognizing that it is incredibly important to get the right relevance to use those kinds of hybrid techniques. And then the last thing is just incumbency. We — all of these customers, like if you think about Elasticsearch and how broadly we are spread out in the ecosystem, tens of thousands of customers and then many more that are familiar with and using Elasticsearch like the fact that our data is already on that platform, their data is on our platform, just means that it becomes that much easier for them to take all of that data very quickly create vector embeddings and then use it in all their Generative AI applications.
Those four things are becoming stronger and stronger ways for us to differentiate. And I fully expect that as this whole area continues to mature, those strengths are going to become bigger factors for us to continue to be a winner in this space.
Tyler Radke: Thank you.
Operator: The next question comes from Matt Hedberg of RBC Capital Markets. Please go ahead.
Matt Hedberg: Great. Thanks for taking my questions. Congrats on the results, guys. Ash, obviously, a large firewall vendor talked about the plan to bundle offerings, including free trials. And I’m wondering if you think that eventually shows up as industry pricing pressures and things like logs or SIEM?
Ash Kulkarni: Yes. Thanks, Matt. So we haven’t seen any change in the competitive dynamics. But what I will say is the whole idea of platform consolidation. As I talk to customers, what I’m seeing is that every CIO that I’m meeting, is still very conscious about their overall budgets. So budget pressures are continuing, and there is tremendous excitement in terms of wanting to do more around Generative AI. So that’s becoming a bit of a double bay, and that’s incentivizing customers to want to do more on a few platforms that they trust, that they see as being innovative, that they see as having the ability to not only help them today, but also future proofs their direction. And we are one of the beneficiaries of that. The fact that we can deliver tremendous innovation.
We have been delivering innovations like Generative AI, our AI assistance for observability and security and doing it with our pricing model that makes it possible for customers to both consolidate and do that at a much better overall value to investment is something that’s enabling us to win and displace incumbents. So that consolidation motion, we are leaning into it. We have been leaning into it for several quarters now, and we are seeing the benefits of it.
Matt Hedberg: Really, really good to hear. And then maybe just — there’s obviously a lot of talk about vector and GenAI usage. And it feels like a lot of those are within like enterprise search or you know app or site surge. I’m curious, to what extent do you think vector technology makes its way into sort of broad observability or security search with SIEM?
Ash Kulkarni: That’s a great question. And although we very strongly believe that Generative AI and vector search and so on is going to materially increase the overall addressable market size for search in the long term. We are also seeing our ability to differentiate and compete better in the areas of observability and security. So just to give you some sense of how that plays out typically in terms of security, we’ve gone through several elastic on events now. And the thing that consistently gets everybody super excited in the audience when we are talking to security customers, is our security AI assistant. The fact that they can now see real-time alerts and really interrogate the system and ask questions about how to deal with those alerts and the AI assistant is able to help guide them through all of that, that is incredibly powerful because it reduces the bar on what a security analyst needs to know, the level of experience and expertise they need to possess.
So that is making it that much easier for us to compete and win in these deals and displace incumbents. So we feel it’s giving us that edge already. I expect that edge to only continue growing in the future. And that’s the reason why we are so excited about everything that we’re doing around Generative AI.
Matt Hedberg: Great to hear. Thanks, guys.
Operator: The next question comes from Raimo Lenschow of Barclays. Please go ahead.
Raimo Lenschow: Hey, thank you. Congrats from me as well. Two quick questions. One, Ash, with the change in leadership now on the go-to-market side, are there any kind of changes you’re seeing on the journey to kind of evolve go to market, but any changes we should anticipate as we’re kind of getting ready for the new year? And then I had one follow-up for Janesh.
Ash Kulkarni: Absolutely. So we are very excited about Mark’s edition. I mean he’s been — even in the short time that he’s been here, he’s just been a wonderful partner, and it’s impressive to see how he’s really — he’s dived into the job. He is working very closely with the team members and the natural leadership that he’s demonstrating is wonderful. Look, what I’d say is the direction that we are on, our focus on the enterprise and commercial segments, our overall go-to-market strategy, I expect that to remain the same. We are seeing a lot of success with that. Janesh touched upon that earlier, and we are very excited about the expertise that Mark brings in those areas, and we know that as the business continues to do well in areas like Generative AI, in terms of platform consolidation, Mark’s skills are only going to help us do even better.
