Joel Fishbein: Great, thank you.
Operator: Thank you. Next question comes from the line of Hamza Fodderwala with Morgan Stanley. Please go ahead.
Hamza Fodderwala: Hey, good evening guys. Thank you for taking my questions. Steve, maybe a question for you and Amit as well. Just if I look at your outlook here, so you did about 8.5% on current billings growth this quarter. The guidance for Q4 implies somewhere between 10% to 11% and then you’re guiding for mid-teens next year, I guess, if you back out the acquisition sort of low teens. I’m just curious because it does seem like the environment got a little bit worse for you on the mid-market side. What gives you confidence that you can accelerate next year?
Steve Vintz: Hi, Hamza, this is Steve. Yes, our guidance for the fourth quarter does assume at the midpoint of 11% and at the high end, 12%, the range is 9% to 12% here. As we look out over the next year, I think the selling conditions that we’re seeing today, specifically in the mid-market, we expect to persist. And what we said direction for next year is mid-teens growth. That’s inclusive of the contribution from Ermetic. And so largely, if we look at next year, we’re assuming no change in the selling conditions, same selling environment. And we also have some slightly easier compares. So that skews growth a little bit. So I think we’re taking a cautious approach to our outlook next year. But again, Q4 is a big quarter for us.
And it’s important to have that data point in hand. So in February, we’ll provide guidance and talk about the business in more specific terms, but we want to make sure that we have a cautious outlook. And there’s a lot of great things about our business, and the performance in the quarter was really strong, as we’re commenting. It’s not reflected in CCB, but saw major outperformance in U.S. Federal. But we think it’s appropriate just given some of the selling conditions in the mid-market to take a cautious approach here.
Amit Yoran: Yes. I guess the only thing I would add to that is, look, we saw exceptional strength in the quarter on a number of fronts in terms of Tenable One’s growth both as a percentage of product and growth overall, the large enterprise traction, the seven-figure deals, $0.5 million deals, all record numbers for us, the strength in federal. And I think candidly, just the competitiveness of the product, if you look products. If you look at our portfolio across the board, whether it’s in identity, in OT, our capabilities in cloud security and our ability to differentiate both in core VM as well as in this unified platform sale, our confidence in the sales team’s confidence in what they’re seeing has never been stronger. So that gives us confidence going into 2024. And like Steve said, we’ll see how Q4 plays out and look forward to updating folks on the plan as we get into the Q1 call.
Hamza Fodderwala: Okay, thanks guys.
Operator: Thank you. Next question comes from the line of Andrew Nowinski with Wells Fargo. Please go ahead.
Andrew Nowinski: Great, thank you. Thanks for taking the questions. So I was wondering on the mid-market softness, was there anything specific to any maybe sort of verticals within that mid-market or any regions that were particularly soft? Or was that just broad-based? And maybe like what percentage of your installed base or revenue is derived from that mid-market segment?
Steve Vintz: It’s more broad-based in nature and approximately about 25% of our total sales, as we’ve discussed before, is attributed to the mid-market and it appears that smaller-sized customers, specifically in the mid-market, are certainly feeling more of the impact of the macro, which tends to be fluid from quarter-to-quarter.
Andrew Nowinski: Okay. Thanks, Steve. And then I had a question on the larger customers, the 100,000 — the customers that spend over $100,000 looks like you added 386 — excuse me, 58 this quarter which was down on a year-over-year basis. So I’m wondering, given that you have Tenable One, which I believe is a much higher price point than a larger — presumably larger deal sizes, was there any softness there that may have caused your new logo adds of the large customers to decline on a year-over-year basis?
