Charles Shi: Thanks. Maybe a follow-up, maybe this is for Jim. Obviously, you launched this SimSolid for electronics. This product looks like both EDA companies are trying to attack the system to get into your field at the system level, design analysis, those areas. But you are also, on the – I mean, on the offensive to getting to their field. So want to understand a bit your strategy here in terms of how you think about, you can differentiate in the broader context of maybe there is a little bit of convergence of semiconductor design, electronics design, and the overall larger system designs. And any light would be great. Thanks.
Jim Scapa: Okay, sure. Thank you. Good to see you the other day at the GSA conference, Charles by the way. There is a lot of change happening in the semiconductor design world and actually in the whole electronics world in terms of how it’s evolving and as it moves more and more towards chiplets and more complexity on the system side, it becomes much more of a 3D problem, and we’re trying to build solutions that are going to be differentiated, as you said. And SimSolid is a very, very unique technology. There’s just nothing like it in the market where you don’t require meshing and where you get what we’re calling absolute resolution on what the design is, as opposed to doing a lot of approximations that you typically have in traditional finite element analysis.
So we think it’s going to be a perfect fit in electronics, particularly when we get the electromagnetics working and you have full multidisciplinary simulation. So, yes, we’re very excited about that. We’re just working hard to develop good solutions for customers.
Charles Shi: Thanks.
Operator: And one moment for our next question. And our next question will be coming from Ken Wong of Oppenheimer & Company. Your line is open. Again…
Ahmad Khalil: Hey, this is Ahmad Khalil on for Ken. Thanks for taking my question. I know you guys have been a little tepid on hiring the last year or two, I guess. How are you thinking about hiring now? I know you guys have been making investments in the channel and the verticals – in your verticals, I guess, how should we think about overall hiring in sales and marketing?
Jim Scapa: So, I mean, I think we are carefully hiring I would say as we sort of complete the reorg into the verticals. We are having a lot more clarity around where we have needs both regionally and with expertise in certain verticals. And we’re making very, very careful hires to bring ourselves up to where we think we need to be. But we’re also trying to gain a lot of efficiencies in the sales team, and we think there’s a lot of potential with that as well. And of course, we’re trying to move parts of the business more and more indirect. And so with that whole combination, I think we’re careful, but we are hiring. It’s not as though we’re not hiring people.
Ahmad Khalil: Thanks. That’s a very insightful response. And then just secondly, there has been a lot of heightened M&A activity, at least among your public market peers I guess. As far as your – the smaller tuck in type deals that you guys typically go after, are you noticing those deals be more competitive or is there any change in the competition for those types of deals?
Jim Scapa: In general, no, I think those competitors are rather busy with probably larger types of acquisitions that they’ve been making more recently. But it is a competitive market in general, and so we obviously take the time to understand the market well and to seek out opportunities for just really fantastic pieces of technology. We announced the two in the last, I don’t know, week or two. Cambridge Semantics, and now the FlightStream software, both are fantastic pieces of technology, great teams. We’re going to hit the ground run, we think with both of these products. And customers are all excited about both of them. So, I mean, it’s a competitive landscape, but we probably are a little bit differently focused than those competitors.
Ahmad Khalil: Thank you.
Operator: Thank you. And one moment for our next question. And our next question will be coming from Joshua Tilton of Wolfe Research. Your line is open.
Joshua Tilton: Hey, guys, I think you called me.
Jim Scapa: Hey, Josh.
Joshua Tilton: You broke up for a second. Okay, great. Just two quick ones from me. The first one just on the billings growth in the quarter, maybe this is FX related, too, but 1Q is usually a pretty stronger quarter for billings growth for you guys, but it was kind of light relative to our expectations on what felt like an easier compare. So maybe you could just kind of unpack that and then how you kind of think about billings growth through the rest of the year? And then also maybe just in the context of, given what you mentioned on the call, I’d kind of assume growth would be a little bit higher since you early renewed some things. So just maybe walk us through what’s going on the [indiscernible]?
Jim Scapa: Yes, Happy to Josh. So one thing to keep in mind on our reported calculated billings is it is a calculated billings number, so change in deferred plus revenue. So you do get a little bit of FX in there. The other thing though is this is a total revenue and total change in deferred numbers. So it is impacted by services and other revenue, which is actually down year-on-year, which we expected. So that’s going to, all of that is going to impact your total billings number. That said, billings was more or less in line with where we were expecting in the first quarter. It was something that I touched on last quarter and sort of highlighted for everybody that we did expect a seasonal shift out of Q1 somewhat and more into the other quarters during the year. So really pretty much in line with expectations, revenue actually slightly above expectations and so we’re overall we’re real happy with the way that the quarter turned out.
Joshua Tilton: Makes sense. And then maybe just a quick follow up for me, I think at some point last year, and again this shouldn’t really be a shocker to anyone on the call. You guys kind of referred to the demand environment as lackluster. We’re a few months into the New Year 2024. Any change in the demand environment from what you saw last year? Would you still call it lackluster? Is it getting better like, what do you guys see out there from a demand perspective today? And maybe how does it compare to what was obviously a little bit more of a tough year last year?
