It does mean that those primary metrics are all shifting and are kind of all shifting together. I think — when I think about it from the team’s point of view, I think it’s actually exciting. I think people feel this friction today and how they’re working with customers. I think doing the thing the customer wants is actually great when you’re in a go-to-market organization. And if you look at the kind of growth in cloud revenue, we’ve done really well, right? The pressure has been on RPO. It has been on bookings. It has been on these kind of big upfront commitments. So, part of this is about making Confluent grow faster. Part of is also making sure our field team is really successful. And those two things kind of go together. So, yes, I actually think it’s pretty exciting.
And it’s — for a lot of people in go-to-market organizations, these consumption motion is kind of an opportunity. It’s the new thing that’s happening across a lot of these companies. If you kind of know that and have done it, you’re kind of in a better position and what you’re set up to do.
Rohan Sivaram: And Jay, I’ll just add to what you said. Derrick, if you look at just the health of our installed base today, the redemption rates, the gross retention rates have been consistently above 90%. I think that’s one area which we feel pretty — very good about. And just looking ahead, of course, with this transformation and the one-off cases that we said, we expect the NRR probably to dip a little bit. It will still be above 120% as we go through next year. But exiting next year as we exit the transition, we expect that to — the 125-plus percent range that we set from a medium-term code from an NRR perspective. So the health of the installed base is also very solid. That’s something that I wanted to share.
Derrick Wood: That’s helpful. And Rohan, just quick — a couple of modeling questions. How much of cloud revenue is consumption based today? And how long will it get to be majority? And I guess on the flip side, with the go-to-market change away from on-prem, any color to get a sense for what the bleed-off of platform revenue is going to look like next year?
Rohan Sivaram: Yes. For cloud revenue, 100% of our cloud revenue is consumption. And that’s the motion that we’ve been driving. And to Jay’s earlier points, that’s why we are excited with respect to the reduction in friction with how our customers are buying and how we are selling. So that’s on the cloud side. On your second question…
Jay Kreps: It’s like the pricing is a usage-based model. The go-to-market is still strongly oriented around commitments, credits as other companies would call it.
Rohan Sivaram: That’s correct. Yes. And on Confluent Platform, of course, right now, I’m not going to double-click and provide guidance for 2024. But just broad brush, if you look at our platform business over the last 12 months, we’ve been very happy with the performance, especially we’ve seen strength in the industries like financial services as well as the federal space. So, we’re in a good position as we exit next year — as we enter next year, rather.
Shane Xie: All right. Thanks, Derrick. Raimo, you got the last question.
Raimo Lenschow: So at the conference, you could see the excitement around Flink. And I was kind of — the rooms were full, I didn’t get a seat, et cetera. How do you think about the adoption curve as you go kind of GA next year? Do you think there’s going to be like a couple of kind of reference customers and everyone is going to look and see how that’s working, or do you think that’s going to be more broad-based? Just to get an idea about the excitement for next year for the Flink kind of rollout.
Jay Kreps: I think it will definitely be more broad-based than a couple of customers. Yes, I mean, this is out there in preview today. We’ve had great early adoption of people trying it. It takes a little bit more before people really put the kind of mission-critical production workloads on it. That’s that kind of ramp up to GA. But yes, we expect to see great adoption over the course of the next year. We’re very excited about it.
Shane Xie: All right. That concludes today’s earnings call. Thanks again for joining us. Have a good one, everyone. Take care. We’ll talk soon.
Jay Kreps: Thanks, everyone.
