Trevor Walsh: Awesome. Thanks, Matthew. Appreciate the color. Maybe just a quick follow-up for Thomas. Of the 196 large customers that you added in the quarter, could you maybe provide a little bit of color around — are those current customers crossing into that threshold or is there a preponderance or even, like, an even split of new customers kind of just landing of that size? Can you just give us maybe a general sense of kind of where that pool of customers is coming from?
Thomas Seifert: In in the past, it was pretty even, fifty-fifty between new customer sign on the defender expansions. I would say, in the last quarter specifically, we had probably a larger share of new customers signing up right beyond the $1 million. So it shifted slightly away from expansion into a new logo sign on.
Trevor Walsh: Awesome. Great. Thanks again for taking the questions.
Operator: And we will take our next question from Jonathan Ho with William Blair. Your line is open.
John Weidemoyer: Good afternoon. This is John Weidemoyer for Jonathan. Thanks for taking my question. I’d like to get some clarification if I could on, in better state, your net retention rate, if I understood you correctly, you had indicated in your prepared remarks that the retention rate is a lagging indicator that should benefit from your go-to-market and sales replacement initiatives and such. But then I believe you also said that was impacted by large — by the largest customer cohorts. I wouldn’t expect large customers to be quite as impacted. I wouldn’t think that large customers would be impacted so much by your sales or go-to-market because your existing customers or most a lot of them would be. Could you help me understand what — how that would impact retention rate and what kind of some of the moving parts are there?
Thomas Seifert: All right. Well, just to make sure, the expansion rates stayed high. Expansion in the large customer cohort was a little bit lagging. That is what we already saw in the prior quarter. It’s also one of the reasons for my previous answer that the large customer growth was pretty much coming more biased towards new logos than it was coming from expansion. Expansion, as I said in my prepared remarks, as far as the lagging indicator because it’s pretty much a look back to the four prior quarters. That is what you compare to a sign on. So any movement we see in an existing quarter, will take time to show up in DNR. We see — we think we are seeing bottoming of the DNR development. So we are quite for we’ll move that upwards to where and beyond where we came from.
But because we are so conservative in how we measure DNR, it’s an all-in across all customer cohorts. It’s very much a lagging indicator. So it will take a while before all the improvement that we are initiating in getting expansion going again will show up in DNR.
John Weidemoyer: Okay. Thank you. And, if I could just ask for, you mentioned that some of these initiatives, you wouldn’t expect to see the new sales folks who are not being fully productive through the end of the year. That makes sense. Can you talk about your progress on the implementation of the sales processes, kind of when — where you might think you’re halfway done, fully done, at what point in time and have you identified further process improvements since our last talk a quarter ago? Thank you.
Matthew Prince: Yeah. So I’ll take that. I think that Marc is doing a really great job looking across the organization. I think one of the things that we really highlighted last quarter was that we had, some underperformance across the org. And we addressed that. What I was — that’s I, over the course of the last three months, have kept very careful, sort of my fingers on the pulse of the organization, met with a ton of our team. And what I’m hearing from the team is that they’re super invigorated. They appreciate the additional training and enablement that we’ve implemented. And that we’re seeing, our sales team get the tools that they need in order to make sure that they can, close great deals. And we, again, still have very strong pipeline.
And I think that, what you’ll see is that, that gets reflected as we have those new reps that are coming on as we do more enablement with our existing reps. And that I think is something that’s very bullish for what we have going forward.
John Weidemoyer: Thank you.
Operator: We will take our next question from Brent Thill with Jefferies. Your line is open.
Brent Thill: Good afternoon. Matthew, if you take your crystal ball out in the second half of the year, I’m just curious if you feel things are starting to slowly improve? It seems like a lot of your security peers are starting to see some decay and perhaps you’re gaining some share here relative to your architecture and the platform. I’m curious if you can kind of maybe stitch the back half together and how you see it at a 40,000-foot view.
