Remo Canessa: Yes. And that’s a great question. We are a growth company. We feel that the market opportunity is huge. $5 billion is still what we are shooting for. We saw this as — based on the comments that I made, we’ve increased our headcount almost 100% over an 18-month period. And we saw basically inefficiencies in the organization. That’s why we’re doing this cost optimization. Having said that, our selling capacity remains very strong. And we continue — we are going to continue to invest in our selling capacity as we go forward into the second half. So, we are going to moderate hiring throughout the company, but our focus is still selling capacity and R&D development.
Jay Chaudhry: Yes. So we are still selectively going to hire quota-carrying sales reps as well as core engineering leaders — sorry, core engineering team members. And we expect our year-end headcount to be higher than the headcount today.
Operator: Our next question comes from the line of Joel Fishbein with Truist.
Joel Fishbein: Hey Remo, just on the billings guidance, if you could, just give us a characterization of how you would give a — say, is it conservative? Is it based on what you’re seeing today? Is it getting worse? The environment thing — we’re getting a lot of questions on that. Be helpful to get any color you have on that. Thank you.
Remo Canessa: Yes. I mean, thanks for asking the question, Joel. So, there was an elongation of the sales cycle. So, we’re basically baking into that to our second half, slightly worse, not a lot but slightly worse than what we saw in Q2. So, a little more conservatism related to our billings guidance than the past.
Jay Chaudhry: Yes. And we are assuming that current levels of these scrutinies will continue.
Operator: Our next question comes from the line of Patrick Colville with Scotiabank.
Patrick Colville: So, I guess, I’d like to ask about the sales changes that we discussed last quarter on the call. Is the slowdown we’re seeing have any bearing on the sales changes that were made earlier in the fiscal year, or has that process been kind of wrapped up and that’s in the background now?
Jay Chaudhry: Patrick, as we discussed, we made changes to our enterprise segment, the lower end of commodity segment at the start of the year and where it now reports to geo leaders. Those changes are behind us, they’ve done Q1, and no bearing on Q2 numbers. Okay? So, the main thing we’re seeing at the highest level is some of the macro conditions that are impacting from the higher end larger deals. Our low end of the market segments, enterprise and commercial, they actually had done quite well. They’re still impacted.
Operator: Our next question comes from the line of Saket Kalia with Barclays.
Saket Kalia: Remo, maybe for you, can we just dig into the ramp deals just a little bit more? And maybe specifically, are these deals that take multiple years to ramp up to their sort of normal run rate on average, or are these things that maybe come back in the next couple of quarters? And relatedly, are you assuming a similar mix of ramp deals in the second half as you think about the conservatism in that guide?
