Jay Kreps: Yes. There’s — that’s exactly right, that our business has always been a mixture of connecting into the old and connecting into the new. And I actually think it’s kind of one of the secrets of our success. When you think about a lot of new technologies, the message behind it is ultimately like, hey, if you delete all the things that you built over the years and rebuild it with us, it will be better, right? And the reality is it’s just not that practical for a large organization that’s running some major part of the economy on software they built over 30 years to delete it, rebuild it. And so the really cool thing about data streaming and complement is it’s about how do you connect into all the old things, the mainframes and relational databases and on-premise systems.
But then also how do you open that up and really create the backbone for the architecture that you want to have, the new applications, the new systems, the things that are driving customer interaction, and the things that are helping you run the business more effectively and that’s kind of proven out. You would see that in our adoption, the kind of digital native customers repeated some of them. They’re starting from scratch. There’s no mainframe offload project there, this is the architecture that they want to have. But you would also see in our customers, these very traditional organizations that have been around for decades or more and have built up software estates over that time. And so yes, I think with a little pressure on the economy, you probably see somewhat fewer of the kind of net new applications.
But in many ways, that’s kind of hook into the systems that you have, the push on modernization for the sake of efficiency becomes more important. And those are all use cases that be feed.
Bradley Sills: Great to hear. Thanks so much Jay.
Jay Kreps: Yes, thanks Brad.
Shane Xie: Thanks, Brad. I guess we’ll take a last question from Sterling Auty with MoffettNathanson.
Billy Fitzsimmons: This is Billy Fitzsimmons on for Sterling Auty. It was talked about in the prepared remarks that there’s still some macro choppiness out there. Two questions and you can tackle them however you like. First, maybe expanding on some of the things that were already said, what changes have you made from a go-to-market standpoint over the last couple of quarters and adjusting to macro? And how has that impacted the pipeline and top funnel today? And then separately, when you look across your customer verticals and customers by geography, are there any material changes you’ve seen, either positive or negative in terms of consumption over the last quarter?
Jay Kreps: Yes. To the first question in terms of what changes have we made, it’s probably too long of a list to go through. I mean, just in great detail, I think we went through virtually every aspect of the go-to-market and looked at, hey, what’s the efficiency of marketing spend?, what are the customer targets that are most likely to convert?, what’s holding up in this market? How are we presenting TCO analysis and showing the value of our offering? And how are we doing that not just for new deals? But for customers we already have to make sure that they feel very confident in the investment that they’ve made and that they’re comfortable with future expansion. That list goes on and on and on. So that’s been a very significant effort.
I think, any kind of economic pressure shows in really clear relief where there’s gaps. And in a way, that’s good. It actually lets us improve and get better. To some extent, you’re kind of learning to swim faster because you’re swimming against the stream. And so I think that has been a healthy thing for the company versus an environment a few years back where there was a certain tailwind and all kinds of things worked that maybe shouldn’t. Looking at sectors and parts of the economy we’ve seen, which is interesting, pretty strong trends in EMEA and APAC. That’s been positive. One of the things we touched on in this call was our commercial business has done really well through this. They’ve had to adapt, they have a pretty strong chunk of the tech companies, both maybe kind of newly public, private, that are under pressure.
