So there’s really a whole set of things that have brought together including the sophistication of the types of processing and applications it supports. And all of that together made us feel like has this really does add beyond what we were able to do with Kafka Streams and ksql and is kind of worth the investment. It doesn’t change our support for those technologies. As with any cloud service, we’ll continue to help customers with those really indefinitely. And Kafka Streams, in particular, has a nice kind of area as an embedded library for customers. But we do see this as very much the future of stream processing and kind of the technology of choice for customers over time.
Derrick Wood: Got it. Very helpful. A couple of quick ones for you, Steffan. On the restructuring side, can you just give us a sense as to where the cuts are coming from? And in particular, I guess, it would be nice to now kind of like post restructuring, what kind of growth you have in quota-carrying sales headcount kind of year-over-year and how you’re thinking about — given the longer sales cycle, how you’re thinking about the glide path for net revenue retention in 2023?
Steffan Tomlinson: Well, the restructuring was done with the lens of preserving our ability to continue to grow in high-growth mode and really getting to the efficiencies that we think that we can get to. And so what does that mean? We’re looking at — in sales and marketing, we did have, from a headcount standpoint, the most impact there. but those are primarily like non-quota-carrying folks. We also took a look at G&A and then lastly, I would say, R&D. But we were very much focused on ensuring that all of the decisions we made were in the preservation of us continuing to have high growth with improving profitability and efficiency. And one of the things that we mentioned earlier was — if you look at the last couple of years, we have made very meaningful investments across the board in support of us growing into what is a very meaningful company in a very large market and there is always an opportunity to rationalize and get more efficient.
So the theme that we have this year is efficient and profitable growth, and that’s what we’re driving towards. I’m sorry, what were the other couple of questions?
Derrick Wood: Just the other one was the glide path of net revenue retention rate as we see longer sales cycles continue?
Steffan Tomlinson: Yes. So our net retention rate this quarter came in just a shade below 130%. We gave a little bit of color commentary that Confluent Cloud and our hybrid customers were north of 130%. We continue to see very strong progress with those two products and customer sets. As we think about the glide path over time, we very clear about being above 125% from a total company standpoint and also looking at just higher net retention rates for our cloud and our hybrid customers as that’s like where the puck is going.
Derrick Wood: Great. Thanks guys.
Shane Xie: All right, thank you. We will go to Pinjalim Bora with JPMorgan first. Pinjalim?
Pinjalim Bora: Thanks guys. Thanks for taking the questions. Two quick ones. Maybe update us on just the customer behavior you’re going into January so far towards the end of January. Is it deteriorating? And it’s kind of stable? You did mention you have closed a few deals, so I was just wondering.
Jay Kreps: Yes. Yes. I would say the results in January so far have been in line with the kind of plan we put together for the quarter and guidance. So we’ve been pleased to see that play out as we hoped.
