Then Coldwater Creek is a great American apparel brand, it’s been around since 1984, so almost 40 years. They did a full transformation with us as well, and these are just great examples of how the commerce is not limited to very simple use cases or direct-to-consumer companies, but really some of the leading store-based retailers and longstanding apparel brands and being able to digitally transform themselves in a way that works with their business models and legacy systems.
DJ Hynes: Yes, okay. I appreciate the color there. Then a second question, the message is very clear that the focus is going to be on efficient growth, I mean, obviously [indiscernible] today, but it also coincides with your bringing Steven in to drive alignment and improvement in the go-to-market organization, which you touched on. Any worry that this cost efficiency hamstrings his ability to effective change in the organization?
Brent Bellm: No, it’s the opposite. If somebody comes in and has a really transformative, successful, proven playbook but doesn’t have the opportunity to make major change organizationally, that’s what hamstrings them. It so happens that by doing this restructuring across the company, we have taken out layers and we have done far more organizational actual restructuring, actual optimization than we did a year ago, when it was largely just efficiency and cost reductions. Steven is actually making the structural changes in customer support, in marketing, in sales, and bringing things together around ownership in ways that wouldn’t have been possible before, so I think he’s liberated by this. As hard as it is to say goodbye to great longstanding contributors, including a number of senior leaders who are responsible for getting us to where we are today, this is really an important launching point for the future, where we’re going to enter next year with the structure and the team in place to implement these go-to-market improvements.
It’s very helpful in that regard.
Daniel Lentz: And let me build on that point just a little bit. What I would also add, what we have done in the restructuring and the costs associated with that, the cost savings is a reflection of the form of the restructuring. We are not taking out so much cost that we believe that t this is going to hamstring our ability to re-accelerate revenue growth and really have this be a profitable fast-growing company. Like I said earlier, this model reflects a lower cost of acquisition by focusing on expanding existing customers. We are still going to be investing significantly in continuing to move up market in mid market and enterprise. The cost savings here is really a reflection of the restructure, it’s not a reflection of our intent or desire to pull back on our efforts moving up market and our commitment to expanding revenue growth. That’s a long term commitment and something we’re very, very focused on
DJ Hynes: Okay, makes sense. Thank you guys.
Operator: The next question comes from Raimo Lenschow of Barclays. Please go ahead.
Raimo Lenschow: Hey, thank you. Could I stay on that subject for one more second, one more question? How do we think about the pace of customer acquisition? If I look at your enterprise additions in terms of new customers this quarter, it was probably lower than we’ve seen for a while. Is that part of the new strategy and that’s kind of the new run rate we need to think about as you think about more going back to the installed base? Can you just give us some guardrails there maybe? Thank you, and then I have one follow-up.
Daniel Lentz: Yes Raimo, thank you for the question. I’m glad you asked that. I’d like to clarify that a little bit in terms of the adds. The number of adds is a net number. If you look at where we are at this point in the year, we’re not at the revenue numbers or the growth numbers that we wanted going into the year, but we are very close to where we expected to be from a new customer point of view. What we’re really seeing in that number is more of a reflection of macroeconomic conditions, especially on some of our smaller mid market customers where they’ve had to take some decisions, either in cost cutting or they’ve cancelled projects potentially, or if they have a site that hasn’t been profitable, very analogous to some of the cost savings things that we have been doing as well.
If I look at the pace of net adds, obviously it was not as much there as we would normally want to see sequentially, but that was more driven by some of the macro conditions with existing customers than it is the pace of adding new customers, which again is not quite where we wanted it to be at this point of the year, but it’s more of a reflection of the macro than it is pace of new customers. Is that helpful, Raimo?
Raimo Lenschow: Yes, that’s really helpful. Then maybe one follow-up for Brent. As you think going forward and you keep pushing up in the mid market, what do you see in terms of willingness of customers to kind of move on, because you obviously go against Magento, [indiscernible] more. You know, some of those systems are getting pretty old, but it’s always tough to change systems in an economic downturn. What do you see in terms of maturing of that market or getting ready for that market to kind of move onto more modern [indiscernible]. Thank you and all the best.
Brent Bellm: Yes, thanks. It’s easy to see from [indiscernible] or others that Magento has been in a–and Adobe have been in a decline in terms of merchant count for probably three, four years now, but they start from such a large base in the hundreds of thousands, really multiples of our own merchant count, that we’re a long way from all of those who once anchored on on-premise software getting of it into SaaS, and they all still want to do that, and many of course will unless they’re so customized and require so much flexibility that they simply have to have the code on premise to modify it all. There’s going to be a lot of exits for years to come and migrations off of various versions of on-premise software, including Magento.
Salesforce, it’s harder for me to tell. I don’t have direct visibility. I think the challenge is demand, where when it was an independent company, was truly a market leader and Steven Chung played an instrumental part in helping them become that, and then since Salesforce has bought them, the organization’s been split up, the pace of innovation has been slow, they definitely don’t have modern capabilities like GraphQL across their infrastructure, and so companies who choose them are doing it based on an aggregate, I think, Salesforce relationship, and so there are advantages to that as opposed to the platform itself being market leading, and that’s a great place for us to compete against.
Raimo Lenschow: Okay, perfect. Thank you.
Operator: The next question comes from Koji Ikeda from Bank of America Securities. Please go ahead.
George: Hi, this is George on for Koji. Thanks for taking my question. I was hoping to talk about in light of the restructuring, and then could you also speak to maybe other changes in the go-to-market function and how that’s shaping how you’re going to market with enterprise customers, whether that’s changes in incentives or things of that nature?
