Steffan Tomlinson: Well, the dynamic that we called out relative Q4 to Q1, where the net sequential add is lower in Q1 than Q4 is a natural dynamic that happens in consumption models you as look kind of across the board. At companies in our peer group, you see similar fact patterns. We did see a very strong Q4. It candidly came in higher than we expected, and that goes back to the mission criticality and what we’re driving in terms of consumption for our customers and the value that we’re driving. When we look at the progression for cloud throughout the year, we are looking at seeing increased sequential net adds throughout the year post Q1 and for Confluent Cloud on exiting Q4 to be roughly 50% of total revenues. And so we’re doing all of that in an environment that is just — it’s just more challenged to do business in.
So we’ve reflected all of that in our guide, both in our total revenue guide and our Cloud guide. And we’re adding effectively the same amount of revenue that we did Q1 of last year. In Q1 of last year, that environment was a lot different than where Q1 of this year is. So nothing to be like concerned about. We’re looking at incredibly high growth rates for Confluent Cloud for the year, and that continues to show continue to show up in our numbers.
Jay Kreps: And just to pile on that. One of the aspects — we talked about this last year when we were in Q1. One of the aspects that leads to this is just the kind of life cycle of software projects, they tend to get funded at whatever the company’s beginning of the year is and developed and then kind of roll out. And so obviously, there’s expansion and consumption happening throughout the year, but it is more things — more new things come out in, call it, whatever, Q3, and then a little bit less at the beginning of the year as kind of the new things are getting built. And so you would see this, I think, for like a MongoDB and some other companies as well, where it has a little bit of that patten.
Brad Zelnick: Got it. Thanks guys.
Shane Xie: All right. Thank you, Brad. We’ll take our next question from Brad Sills with Bank of America, followed by Piper Sandler.
Brad Sills: Great. Thanks Shane. Good to see you all. Question for you, Jay, or Steffan, on just investment priorities. Obviously, you’re saying that this reduction will not affect those strategic investment areas. I think at the Analyst Day, you had outlined security, data compliance, enterprise — just any update on those cycles? What — how does this change that at all? Or are those still very much the focus areas?
Jay Kreps: Yes, absolutely. So like on the product development side, there’s no change. There wasn’t a big product area that we cut or stopped developing. We’re able to maintain the major investments that we had with what we planned for this year and those cuts taken into account. This did cut across different areas of the company and there’s a number of factors that were included in kind of making cuts. But our priority, as I said, was kind of really making sure that we had full funding for what we consider the kind of key strategic priorities, both on the product side and on the go-to-market side. And in terms of markets we wanted to get into, that we wanted to drive growth both for this year but also for setting ourselves up coming into next year and beyond. So — yes, no major change.
