Aaron Levie: Yeah. We did call it out a few quarters back in Japan in particular because of the channel environment. They were maybe slower to take up our Suites and Enterprise Plus strategy. That has all but kind of turned around and we’re now seeing steady improvements on that front. So it’s not something that we would call out as an impediment in the ePlus performance at this point. And now it’s just honestly, continue to drive this in every single customer conversation we’re in and continue to drive it across the customer base.
Rishi Jaluria: Yeah, got it. That’s helpful. And then, Dylan, if we think about your NRR, it did tick down a little bit and then you’re guiding to ticking down about another two points. Is that purely because of headcount? Or are there some other factors that might be at play there? And remind us, is there any FX impact that goes on in on that? Thanks.
Dylan Smith: Sure. So Tier 1, it is primarily that headcount and lower seat expansion. As mentioned, the pricing side of the equation in terms of what impacts expansion has been quite strong as has our churn rate and our expectations there. So there’s a little bit of a factor in — that we’re now facing tougher comps given the momentum that we’ve seen over the past year, but we really point primarily to headcount or seed expansion to your point.
Rishi Jaluria: All right. Wonderful. Thanks guys.
Aaron Levie: Awesome. Thanks Rishi.
Operator: Your next question comes from the line of Erik Suppiger of JMP Securities.
Erik Suppiger: Thanks for taking the questions. First off, I just want to make sure how much of your business is sold, your international business is sold in local currencies. Is it predominantly sold in local currencies? And then I guess, I have a follow-up.
Aaron Levie: Sure. So it is — so it’s roughly 85% of our international business is in the local currencies.
Erik Suppiger: Okay. Then on the Enterprise Plus, what would you guess that your penetration across your installed base is? And as you increase that penetration, what opportunity is there for additional price lifting once the customer — is that Enterprise Plus? Because that’s, it’s been a driver of your growth? And is that going to slow if you start getting deeper penetration with Enterprise Plus?
Dylan Smith: Sure. So I can take that, this is Dylan. I would say the Suites penetration broadly as you mentioned is now represents 42% of our total revenue, up pretty significantly from 31% a year ago. The majority of that is now ePlus, although because of the timing, and we rolled out Enterprise Plus, there’s still a lot of Suite customers who are not Enterprise Plus, but expect over time the significant majority to move into Enterprise Plus, just we saw that 90-plus percent contribution to Suites larger deals this most recent quarter. And then in terms of the pricing, once a customer is already on Enterprise Plus, they do have the strongest relative net retention rates but that’s less driven by price per seat improvements from there and more that those are the types of customers who see the greatest value out of box, the greatest stickiness so they see the strongest seat expansion options.
So, over time, as we continue to build out our product portfolio, we could certainly introduce higher-tier suites beyond Enterprise Plus or change the pricing, which would be future price per seat upside, but in this — in terms of what we’ve been seeing historically, the strong net retention from our Enterprise Plus customers is primarily driven by seat growth.
