And then there’s going to be a number of other places where we’re still looking to selectively take advantage of this great hiring market to bring in really good talent into the company. All that being said, we’re definitely making sure that we prepared for whatever the macro throws at us. We’ve had great robust hiring results over the last few months. And so we are lowering the level of recruitment activity that we have on a number of other roles just to make sure that we’ve got better line of sight through the fog that’s ahead of us before we start to really step on the gas again.
Operator: Our next question comes from Jake Titeleman with Goldman Sachs. Please go ahead.
Jake Titeleman: I’m on for Gabriela. When investors hear about there being a general slowdown in marketing spend and ad spend that obviously makes folks nervous about Braze. So why are you confident that Braze won’t be impacted to the same extent as some of the more traditional players in the space?
Bill Magnuson: So there’s a variety of reasons and a lot of them come down to the nature of the kind of workloads or the use cases that Braze runs for our customers and also the ROI that’s associated with that. And so when you look across the Braze customer base, what you’re going to see is diversification across a lot of differences I’ve already spoken earlier in this call about the diversification that we have across company size, across geographies, across verticals, those — and then also across use cases. And a lot of those use cases are also not what I would call discretionary marketing. They are customer communications that are required in order to operate businesses. And even when those customer communications could be purely promotional by their nature, which is certainly the case for a lot of the Black Friday and Cyber Monday message volumes that we mentioned.
Even within those — even within those buckets, which you might be able to call discretionary marketing, those are in almost all cases, the highest ROI marketing that a brand that works with Braze can do. Because the investment that they’ve made that they’re capitalizing on is in building up the first-party audiences that they already have. And so if you think about Braze as an activation investment that sits on top of a much larger investment in building out first-party audiences and first-party data sets. The ROI function there that pretty clearly starts — you start to see pretty clearly the difference in ROI versus digital advertising, where in digital advertising, you’re not only paying for the activation, but you’re also renting the relationship from whoever the ad market place is.
And so the fundamental difference in the ROI function between activating your first-party audiences versus renting a third-party audience and then trying to activate it from there, I think, makes Braze’s ROI be really robust even through kind of intense scrutiny Similarly, when you look at the role that Braze pays from an activation standpoint, you see that Braze actually amplifies the ROI that people get out of those advertising investments that they make. And they also improve the return that they get through the organic growth even if they’ve cut off all of their digital advertising. I think a lot of the coverage in our space breaks down marketing into two broad buckets. They’ll talk about either acquisition, which is generally associated with digital advertising or with retention, which is more associated with platforms like Braze.
Activation is another really important stage there as you go from acquisition to activation, which is roughly — let’s make a great let’s establish that habit. Let’s make sure that things like 7-day and 14-day retention remain high, so that you don’t have people immediately bouncing off of a product after you spent dearly to acquire them. And Braze’s role to play in that aligns perfectly with the priorities that so many brands are we focusing on right now, which is how do we make sure that our organic growth is activating at high levels. How do we make sure that the premium acquisition investments that we are making have the maximum ROI that they can and then how are we retaining those people in the long term. And so in many ways, it’s exactly when the scrutiny shows up on the digital advertising spend, that brave really starts to shine versus all of those other expenditures?
