Michael Berg: Hi, thanks for taking my question. I want to follow up on the capability’s discussion here. It’s growing nicely. If my calculations are correct and still 30% that seems down pretty meaningfully from the rest of the year, maybe. Is there anything under the hood, what’s going on there? Is there incremental budget constraints? Because I kind of think of those as being more enterprise-type solutions. And how do you think about those potentially accelerated news? Building off of the last question. Thank you.
Pete Godbole: You know, I would say that, we were pretty satisfied with the performance for capabilities. And I think that the draft you’re seeing in year-on-year growth rates is just a sign of the macro that customers have experienced. It’s just as simple as a conversation around people wanting a capability, but do they buy a composite set in a package in advance? So, do they buy them a la carte? So that affects the dollars then that we, that push through, if you will. But I think in general, the demand for capabilities continues to be robust and continues to grow. So, I’d say I’d leave it there.
Michael Berg: Helpful. And then a quick follow-up on that same topic, as you think about this large opportunity set at hand, is it reasonable to conclude that capabilities will at some point be the majority of the revenue, just given the value proposition tied there? It seems like that’s an underappreciated part of not only the products, but the overall story. Thanks.
Pete Godbole: So, I think my belief is, and Mark and I share this, is I think we’ll see both grow. So it is sort of like this race where as you start with seats and then you’re adding capabilities on top of it, but it continues in that way. So, I think we’ve got a huge sort of what I call potential in the low end of the market with these modernized core application experiences. So, think of that as the piece that builds the seat part of the portfolio. Now that doesn’t mean it is only seats, you get to self-discover capabilities as well. So, I think that percentage, I wouldn’t view it as being lopsided towards capabilities. I view it as being balanced and growing over time. I do think capabilities will be a, increasingly growing part of the mix.
Michael Berg: Helpful. Thank you.
Operator: We’ll come next to Pinjalim Bora at JPMorgan.
Pinjalim Bora : Thanks for taking my question. Pete, can you talk about kind of the demand trends going into Q1, February, March so far? Are you seeing the SMB weakness, can it deteriorate? Has it been similar to Q4? And any way to understand kind of the headwind to ARR for the full year FY ’24 from the SMB softness?
Pete Godbole : So, I’ll give you my texture on February. So, February was — we continue to see the pressure on SMBs in the month of February. So that pressure actually continued. So, we’ve seen that in play. And that’s what’s informed our guide. If you think of Q4, we saw that worse than Q3. We saw that pressure continue to further worsen than in February. So, we’re extrapolating that to say that’s what continues all through the year. And that’s the headwind to the other part of the business, which is pretty strong, which is the enterprise business, which had another good quarter in Q4 and will sort of continue in that vein. So that’s the assumption going in. So, the second part of your question, what’s the size of each one.
I think it’s hard to call out. Remember, just to give you an order of magnitude of size, SMBs are roughly 1/4 of our business. And as I mentioned earlier, if you looked at the net dollar retention rate, which is a measure of our expansion, it was down to close to zero in Q4. So, you can see the pressure in that segment playing forward.
Pinjalim Bora : Understood. Helpful. One for Mark. Mark, we had heard from some of your customers that your AI capabilities like generator could help reduce the reliance on power user’s kind of allowing average users to do more complex tasks. Do you think that could accelerate the adoption of paid seats within your existing enterprise tier accounts as it frees up the time for power user’s 1 and maybe makes the average use of much more productive and engaged.
Mark Mader : I do. That’s part of the thesis. And some of the things that we’re able to see as leading indicators of that is we looked at our enterprise segment, the number of inquiries we had to our support desk in these areas, and we’re seeing a step down in that usage up, inquiry down, good dynamic. So, I do think that, that is something that will exist. I think as we get the AI introduced to other elements that are super commonly used by analysts who are doing dashboard building, trying to derive insights from data sets, I think that word will start to spread within organizations. And I think a lot of times, the way folks work within these companies, they want to see a data point. They want to see an example from someone in a neighboring group achieve success. Again, we are weeks into this being available. I would expect, as we get a couple of months under our belt, to start seeing this pattern emerge.
Operator: We’ll move next to Alex Zukin at Wolfe Research.
Ethan Bruck: This is Ethan Bruck on for Alex. I guess maybe a bit more of a high level on me for Mark. Just as we think about the percent of customers that are using capabilities, is that number kind of inches up from single digits continuing to 20% over time, like as you embed generative AI and sub discovery as accelerating? What does success look like for you over the next few years? I like where the — those amount of customers using your capability to go? And then as you think about monetizing that more improved functionality, I mean, where do you need to see adoption to go for all those ROI investments for R&D to pay off basically?
