John DiFucci : When I look here, and there’s a lot of changes here, and Mike Arntz has been with the company since before the IPO and has led a lot of the changes needed as you scaled. So, Mark, I guess, what do you anticipate are some of the areas that Max may address to accommodate your next phase of growth?
Mark Mader : Hey, John. I think a few of the, the traits that I was looking for was somebody who had deep experience with international, understood partner ecosystems very well, was super fluent in a multi-product catalog and how you cross sell. When we think about the rise of capabilities in our world with less than 10 — fewer than 10% of our customers buying something from us other than a seat, it is a huge portion of our growth strategy. So really trying to find someone who had that experience space. And also, it’s pretty, when you think of who we serve, John? We serve everybody from the SMB all the way up through the largest companies in the world. Finding somebody who has comfort and an informed point of view on how to go-to-market on both dimensions, that is a really important thing I was looking for. And I think Max’s experiences across Microsoft, Adobe, and NetApp is a pretty good collection of past experiences that he’s going to bring to bear.
John DiFucci: That makes a lot of sense, especially the opportunity, well across everything. But I like you led with international, which just seems like such a big opportunity here. I guess if I could just ask a follow up for Pete. Listen, Pete, if NRR is going to follow similar trends as ARR through the year, it, that implies it continues to decline. And can you talk a little bit more about this because, you know, the way I understand the NRR metric, it’s a next 12-month metric, and you could actually see on a quarterly basis an inflection point where things tend to get a little better near the end of the year, and you wouldn’t necessarily see it in that metric right away. I guess I’m just trying to sense what this, the guide is, because I think that’s the thing that our people are, and I, you know, the 14% growth in ARR, it’s the thing that people are sort of questioning right now is, do you think it just gets, continues to get worse throughout the year?
Is that what you’re sort of implying? I know you gave all the, the reasons why you’re being ‘prudent’. I’m glad you said that, but do you think it actually could get better, throughout the year at some point? Or does it can or it even stabilize or that it’s going to get, just get worse through the year?
Pete Godbole: Yeah, so the, if you think of the, you’re absolutely right John, in terms of the net dollar retention rate conversation it’s a look back for a full year. But remember the underlying underpinnings of that are what’s happening in the enterprise and what’s happening in SMB. I called out an SMB that, we don’t expect it to stay stable. We expect it to continue to worsen. So that’s going to be a drag on that, on the net dollar retention rate, and it’ll build into the composite. Now, could it get better? You know, I think we’re doing many things ourselves, which are, you know, things we’ve launched in the water, but we always guide based on what we can see and what we have visibility to. And that’s what we are consistent about. So that’s what we’re doing sort of here as well.
John DiFucci: I appreciate that. Listen, the results of sales look good and we’ll see how the year progresses. Thank you.
Pete Godbole: Thanks John.
Operator: Our next question comes from George Iwanyc at Oppenheimer.
George Iwanyc: Thank you for taking my question, Mark maybe could you give us more color on the traction you’re seeing with self-discovery and as you start to roll out new capabilities, how should we think about the pace of that this fiscal year?
Mark Mader: Yeah, self-discovery, we have, there are two aspects of it. One is the ability to, for someone to experience a feature in the product without having to engage with someone from our team to actually utilize it. The second part of that actually fulfilling it from a booking standpoint is the other portion. So, what we have done to date is we have enabled thousands of comp, tens of thousands of companies to be able to utilize these tools. And we’re seeing really good progression quarter on quarter around people exploring those and trialing those. The second chapter of this is actually marrying a self-discovery motion with a transaction motion. So, we are skating to a place where those lower value SMB, small starting customers can not only see them, but also transact on those.
We have not yet set markers in terms of in which quarter that we will convert to that commerce element, but we are focused on getting elements within our content realm, our people realm, which is our resource management realm and our work realm exposed to market. So, a few weeks ago we released our advanced resource management capability, prior to releasing that a prospect or a customer would have to engage with our customer success or sales team to enable that. That is now fully automated, zero setup required and the weeks in performance we’ve seen have been extraordinarily positive in terms of the number of people who’ve been able to engage with that and to utilize it. So, we are moving to a place where we want almost in the entire portfolio available for someone to see without it being gated by a human being on our side.
