Greg Mesniaeff: Great. And it sounds from what you’re saying that, given the scale in the business we could expect the rate of growth in sales and marketing to taper-off a little at some point?
Ashley Fieglein Johnson: Yes. We provided our long-term operating targets, which would see sales and marketing as a percentage of revenue, continue to drop. Obviously, we said we needed to first ramp it up. And then as we drive scale, we’ll see that as a percentage of revenue, start to taper down to our target margins.
Greg Mesniaeff: Thank you for that.
Ashley Fieglein Johnson: Great.
Operator: Thank you, Mr. Mesniaeff. The next question is from the line of Harry Wilmerding with Needham & Company. You may proceed.
Harry Wilmerding: Hi. Thanks for taking the time. Just a quick question on customer add there. Whether sequentially in the first half of the year, although it looks like 3Q is typically seasonally light, any changes to our call out on converting prospective customers in the quarter? And also how are you thinking about customer growth as we enter the next year?
Will Marshall: So it was – the first on customer growth did you say?
Ashley Fieglein Johnson: Customer count.
Will Marshall: Yes. Well, I mean, that’s primarily dominated by smaller accounts. And so – the reps are mainly focused on the large accounts and they’re being very strategic and focused and disciplined about that. So some small deals – and there was a few on education research that fell off with some added. We’re not tracking that closely because that’s not where the dominant revenue is. So the growth – I would say is still good in revenue terms, which is the main thing that we’re focused on.
Ashley Fieglein Johnson: Yes. Just to underscore, obviously, we’ve added some really nice large customer wins and as Will said, that is where we’re focusing the sales reps as those opportunities where we see an opportunity to really land and expand. On the smaller account basis as Will pointed out in education and research, you can see some projects that will cause numbers to go up and go down, there may be some seasonality with that – which you called out last year. So on the smaller deal size, it’s less of a concern on the numerical numbers – numerical count, what we’re really focused on is the quality of the deals that we’re bringing on board and really seeing NPS scores across the Board improving.
Will Marshall: Yes.
Harry Wilmerding: Great. Thank you.
Operator: Thank you. The next question is from the line of Ken Mestemacher with Edison Investment Research. You may proceed.
Ken Mestemacher: Thank you for taking my questions. First, congratulations on the three announcements on Accenture and AWS and Microsoft. So how should we think about the revenue opportunity and financial impact on the company? And tied in with that, based on your responses to some of my colleagues earlier questions, should we be thinking it would be more medium or long-term rather than something in the next year or how might that timing look?
Will Marshall: I would just say like as you mentioned that these are nascent partnerships, but the fact that they’re leaning in and again is a big sign of the scale of the opportunity that they see. I mean, I do think we’ll see things in the next year. I don’t know how meaningful it will change our revenue. But in that year, but we’re definitely seeing this lean in and it’s just it – after scale in a different way. They have a lot of industry expertise, they have a lot of a huge stack of customers where our data is relevant. And so going to market together with them makes a huge amount of sense. We’ve got incredibly exciting dataset that can help solve their customers’ challenges. They’ve got the scale of all the compute or the industry knowledge to do that. So that’s the way I think about it. Does that make sense?
Ken Mestemacher: Definitely. Definitely. Thank you. And second, looking at gross margins increase this quarter. That’s great news. And how would you say Planet is mitigating the impact of inflation? You touched earlier on microeconomic issues. But we keep seeing these wage increases and inflation and other people are struggling. So how are you all mitigating that especially in light of expecting it to increase to 56% to 59% next quarter?
Ashley Fieglein Johnson: Yes. So I would say, on the gross margin line, the majority of that expense relates to either depreciation and amortization, which is a fixed number. Our hosting costs which we have a long-term contract in place. And then to a much lesser degree the cost of our professional services and customer success teams. Many of which we’re able to locate in geographies outside of the United States that we can service customers on a lower cost basis. I wouldn’t say that we’re immune to inflation and cognizant of the impact that has on our employees. So we are – I think what I would say is, we’re very focused and thoughtful about our hiring plans and our spending plans. I highlighted at the Analyst Day, how we think about the procurements and where there might be supply chain constraints, where inflation could have a higher impact and maybe getting in front of some of those with earlier in both procurement.
So I guess the net answer is we’re watching closely what’s going on and making sure that we’re thoughtful about our spending and budgeting.
