So, as Greg mentioned, we expect that to improve. We’re seeing the leading indicators that we would want. And I think it’s an area that I would say unquestionably we can and will do better as we go forward.
Jason Ader: And just following up on that, Matt, can you talk about how any geographies? You mentioned sort of disproportionate success in certain geos. Anything that you can expand on there?
Greg Henry: Yeah. Hey, Jason, it’s Greg. I’ll add it. I mean look, there’s a couple of regions in particular. So, we actually broke out are sort of EMEA region and we run it as Europe and then to TIMEA, which is Turkey, Israel, Middle East and Africa, and we’re seeing very good activity there. We have a great leader there. And then the other one, which we’ve been investing in the last couple of years, is Asia Pacific, which has also been doing very well. And as you can imagine, because we’re newer there, newer technology, we’re seeing a lot of Capella activity and a lot of new logo activity coming out of Asia Pacific. So, those regions are really starting to become much more impactful to the business, as we’ve invested there over the last few years.
Jason Ader: Thanks, guys. Good luck.
Greg Henry: Thanks, Jason.
Operator: Thank you. Our next question is from Brad Reback with Stifel. Please proceed with your question.
Brad Reback: Oh, great. Thanks very much. Matt, any reason you wouldn’t break Capella out next year?
Matt Cain: In what sense, Brad, like, reporting-wise?
Brad Reback: Yes.
Matt Cain: We expect to break that out when we’re ready and are excited to be at the point that we can do that.
Brad Reback: Okay. Switching gears, thoughts around using M&A to gain scale? Thanks.
Matt Cain: Yeah, Brad, I mean I think we pride ourselves at being agile with our strategy and we’re always doing build by partner analysis. It’s something that would be an ongoing consideration for us. And as we think particularly about M&A, there is benefits beyond scale, like an improving the platform in a particular area. So, I’d say it’s part of what we do, but I’m not prepared to make comments beyond that.
Brad Reback: Great. Thanks very much.
Matt Cain: Thanks, Brad.
Greg Henry: Thanks, Brad.
Operator: Thank you. Our next question is from Taz Koujalgi with Wedbush Securities. Please proceed with your question.
Taz Koujalgi: Hey, guys. Thanks for taking my question. One for what [indiscernible] Greg. Greg, I mean you don’t focus on billings as much, focus mostly on revenues and ARR. But if you look at the billings number this quarter, looks a little bit light. I think seasonally down sequentially, which is I believe never happened before. So, anything to call out there on the billing metric, any headwind on the invoicing or duration front?
Greg Henry: No, not really, I would say, Taz. I mean, again, we’ve tried to say that billings for us is a bit noisy. We don’t focus on that too much. We think ARR is a better measure, and a lot of it had to do with the timing of some of the renewals. Because we are still — the predominant part of our business is the enterprise business. And the renewal timing or annual upfront when we get those billings is when we do the renewal. So, no, I wouldn’t read into anything about the billings. Durations are steady, if not slightly improving from sort of the lows we saw in the sort of worst of the macro.
Taz Koujalgi: Got it. Then just one follow-up for Matt. Matt, you’ve seen strong strength in Capella in the last few quarters. On the go-to-market motion for Capella, is there a self-service element where people are signing up Capella without requiring a field guy or a sales rep to get to them? If you could just comment on any self-service motion with Capella traction versus direct sales selling Capella to your customers?
Matt Cain: Yeah, Taz, it’s certainly part of the Capella value proposition. What I would say, complementing our more direct, highly instrumented, go-to-market model, enabling developers to come to us in their evaluation initial purchase, et cetera. So, it’s certainly something that we’re actively building as a complement to the overall business. And one of the benefits that we see there is, not just for new logos, but expansion activity where people within our existing accounts can get at new applications faster. So, we’re focusing a lot on what we call the developer experience and getting into product-led growth. All of which is possible with the Capella offering and we’re excited about the instrumentation and we have in place and the leading indicators of what that will do to the overall business.
Taz Koujalgi: Got it. Very helpful. Thanks, guys.
Greg Henry: Thanks, Taz.
Operator: Thank you. Our next question is from Howard Ma with Guggenheim Securities. Please proceed with your question.
Howard Ma: Thank you. Greg, ARR guidance assumes that you add about the same amount of net new ARR in the second half of the year as the $17 million added in the first half. Can you remind us if new bookings is normally more back-half weighted? And if so, are there any offsetting factors this year that would make the two halves more equal?
Greg Henry: Yeah. Hey, Howard. Appreciate the question. Look, obviously we feel good about the ARR performance and even the ARR guide and the outlook we have in the second half. To your question about the bookings, yes, there is slightly more weighted towards the bookings in the second half, particularly Q4 tends to be our largest bookings quarter. Again, this is the guidance which we feel good about it. As we’ve stated before, we set up guidance to hopefully at a minimum meet that, if not beat it. And again, we feel good about the momentum we have heading into the second half.
Howard Ma: Okay, great. Thanks. And for Matt, do you think new Gen AI capabilities could accelerate your new customer acquisition engine near term? For instance, do you have any evidence that Capella customer prospects are placing more weight on capabilities, such as coating co-pilots when choosing a database management system, or is Gen AI more of a mechanism to drive expansion among existing customers? Thank you.
