Gary Merrill: Aaron, at this point, we’re keeping our guidance for the full year for all the reported metrics consistent, there’s obviously opportunity for operating margin leverage and expansion, especially as the top line accelerates, which we’d expect some of that to happen, as I mentioned, more in the back half. So where I’m sitting here today is that fundamentally, all the core tenets of our business are consistent, and we’re confident in where we’re at for the first half. And I think maybe revisiting where we’re at, exiting Q2 for the back half is what we’ll look to do.
Operator: Our next question comes from Howard Ma at Guggenheim Partners.
Howard Ma : I have a question for Sanjay and also a question for Gary. I guess I’ll start with Gary. It’s actually two questions. I mean the first is a shorter one. But I guess I’ll start with — can you address the reason for the Metallic net retention rate dip, it was down by 7 percentage points versus last quarter?
Gary Merrill: Thanks for the question. So don’t — we don’t look into 1 quarter as a trend for the long term for Metallic. When you look at the net dollar retention, at 118%, we still believe it is a strong result and it’s still driving a lot of expansion. Typically in the net dollar retention calculation, right, the base gets bigger and bigger and bigger, which also contributes to it. So that’s good. So we have a growing base. So therefore, you’ll start to see the calculation kind of moderate in kind of in that 118% or so. But from an actual expansion opportunity, we’re really pleased with where we’re at to be able to grow off that. We’re now approaching 4,000 Metallic customers. So the ability and the opportunity for us to drive that number through that 4,000 customer base is an amazing opportunity that we look forward to kind of driving in the second half.
Howard Ma : Okay. That’s fair. And my second question, it’s related to what Aaron was asking, can you just talk about, Gary, the key underlying assumptions that give you confidence in achieving total and subscription ARR guidance this year? And as we model out the balance of the year, can you just talk about any notable year-over-year comps? So you mentioned the back-end weighted — or the second half weighted renewal cycle in response to Aaron’s question. Can you also talk — is there anything else we should look out for? For instance, I know fiscal 3Q is probably an easier year-over-year comp this year. But just anything else with respect to subscription or Metallic.
Gary Merrill: Yes. A couple of things, Howard, I can touch on. So first, before I get to the second half, even by looking to the current quarter, we’re in fiscal Q2, typically, that’s our seasonally soft this quarter, especially in Europe. But as we start to look at the second half of the year, we’re still confident in the opportunity — in the guidance that we gave for the second half. If you look at that subscription revenue line each quarter, we get a nice tailwind of recognized revenue from SaaS. So the predictability of our subscription revenue starts to firm up every single quarter because a larger portion of that becomes SaaS revenue, which is the amortization of the ARR. When I take that, Howard, and I tie it to seasonally stronger, especially on the large deal expectations on the term license software that we typically see in the second half.
All of that still contemplates all of the kind of macro trends we currently see today. We haven’t seen anything substantially worse since I gave guidance roughly 90 days ago. So we’re still confident in kind of what we see. The only really, I’ll say, notable change that we’re seeing some modest change in is the term line, which I already addressed. But despite that, we’re still confident in those full year numbers.
