And at this point, I’m not expecting any change. It’s really like the progress that we have made and the direction that we have set, I feel that Mark is going to add to it as opposed to make any changes.
Raimo Lenschow: Okay, perfect. Yes, makes sense. And Janesh, for you, thanks for the initial look into ’25, and I know you’re not guiding yet. But if I break down the investment areas a little bit further, how should we think about it? Is that kind of a mixture between sales and you need to kind of think about building sales capacity, if you think about recovery, so you need more sales guys and they take time to get productive? And then on R&D, like there’s obviously a lot of stuff going on with a lot of changes in the industry with AI. So is it just like across the board? Or are there kind of focus areas we could think about? Thank you and congrats again.
Janesh Moorjani: Thanks, Raimo. So as I think about fiscal ’25, we’re going to continue to obviously focus on growing profitably and specifically, we’ll grow our revenue faster than our expenses. But as we are going through the planning process now, we do expect that we will balance investing for long-term growth against near-term profitability. And that’s why I called out the relatively modest op margin expansion that we expect for next year. So over the course of this past year, we’ve seen a pretty significant opportunity ahead of us in terms of the increasing importance of GenAI and the massive opportunity that we can go capture. And so we really do plan to accelerate our investments in this area to go capture that market opportunity.
And I think the investments will actually be broad-based across the business. We’ll want to fund engineering. There will clearly be some go-to-market investments and support capabilities in order to unlock this opportunity. And really execute well in the longer term. But we do expect that these investments, Raimo, will support our longer-term growth trajectory. And that’s why I indicated that we will be making the investments now, and that will have a little bit of an impact on non-GAAP op margin for next year. And the investments will also be a little bit more front-end loaded in fiscal ’25. And we’ll provide a little bit more color and formal guidance on that when we get to the next earnings call.
Raimo Lenschow: Okay, thank you.
Operator: The next question comes from Andrew Nowinski of Wells Fargo. Please go ahead.
Andrew Nowinski: Thank you. Good afternoon. I have two questions. First one I want to ask was on ESQL. So you talked about one of the advantages of Elastic’s vector search is that you already have a lot of the customer data on your platform. Do you think ESQL could be a tool for bringing more data onto your platform if it reduces the friction from leaving Splunk?
Ash Kulkarni: Yes. That’s a great question, Andrew. And like I mentioned in the prepared remarks, I’m super excited about ESQL. We already have around 1,000 customers trying it out and hasn’t been that long since we introduced it. What it does is it makes us even more developer friendly. In terms of how the language is designed, it’s a very easy to use language. It’s got the piping semantics, allows for iterative development and developers love it. And the other thing that it does is it makes it very easy for customers to move from incumbent legacy SIEM solutions onto our platform because some of those solutions have had similar capabilities with these kinds of pipe semantics and so on. And now that barrier is gone. Customers are able to quickly take that.
And when you take ESQL and add to it our AI assistance, which are able to map other languages on to ESQL, it just makes that entire process very easy. And that’s one of the reasons why I feel so excited about our continued ability to take share and make it possible for customers to switch from incumbent solutions onto Elastic, consolidate onto our platform and grow. So in the long term, I definitely believe this is going to bring more data onto our platform, and allow us to become that much more critical to our customers’ overall infrastructure.
Andrew Nowinski: Okay, thank you. That was great. Just my one quick follow-up question. Given all the functionality that you’ve added to the platform now with ESRE and ELSER and ESQL, et cetera, have you changed your pricing to account for all these new capabilities?
Ash Kulkarni: Yes. So one of the things, Andrew, as you know, is the price in terms of multiple tiers. And depending upon the tier that you’re in, you basically unlock different kinds of functionality. So as an example, the AI assistance are in our top most years, the enterprise tier, some of the ESRE functionalities in our platinum tier, so on and so forth. So customers have to shift up a tier to get all of these additional capabilities. In terms of price increases, we increased prices from time to time. And we’ve done that at times for self-managed. We’ve done that at times for cloud. But it’s really — we will do that when it makes sense, given the functionality that we add. Let me see if Janesh has anything to add to that.
Janesh Moorjani: No, nothing, Ash. I think you covered it quite nicely.
Andrew Nowinski: Okay, thanks guys.
Operator: The next question comes from Patrick Colville of Scotiabank. Please go ahead.
Patrick Colville: Alright, thank you for having me on the call and really great to be part of the Elastic story. I guess I want to ask about revenue, 29% constant currency in 3Q is pretty terrific. You called out some drivers; Gen AI was one, observability and security consolidation and then consumption coming back to committed levels. I guess my question for you, Ash, is can you just rank order those, those three drivers you called out, which in 3Q was the most important.
