Matt Cain: Howard, I think the simple question — simple answer to the question is, yes. And we were excited to announce Capella iQ. I would tell you that the early sign-ups for private preview have exceeded my expectation, which I think is indicative of new customer activity. And if you think about the value proposition of Capella and just making it so much easier for developers, so much more efficient to get the full benefit of Couchbase, that’s really important to us. And quite frankly something that we think is going to add a lot to how people think about and then directly and quickly experience Couchbase. So I think it’s going to be an accelerant on both sides, new and migrations.
Howard Ma: Great. That’s encouraging. Thank you.
Greg Henry: Thanks, Howard.
Operator: Thank you. Our next question is from Rudy Kessinger with D.A. Davidson. Please proceed with your question.
Rudy Kessinger: Hey, thanks for taking my questions. On Capella, I know I speak for everybody in this call [regularly] (ph) awaiting further metrics you can share, could you at least comment maybe directionally just how Capella has trended as a percentage of new bookings over the last several quarters? Any increase you’ve seen? I know you said it’s been the majority of customer signings. But how is it trending as a percentage of new bookings or total bookings? Anything you can share?
Greg Henry: Yeah. Hey, Rudy. It’s Greg. Good to hear from you. Yeah, look, again, Capella every quarter becomes a larger percentage of pretty much every metric, whether it’s bookings, revenue, ARR or customer accounts. It just, it continues to grow. And so, which is what we expected. So, yeah, it just becomes a bigger component every quarter, because it’s growing faster than the rest of the business.
Rudy Kessinger: Okay, fair enough. And on the ARR outperformance in the quarter and the $4 million raise for the year, what’s the primary driver there? It sounds like that is primarily consumption exceeding expectations, but I know FX also flipped to a 1% tailwind in the quarter. Did that have any impact on the $4 million raise for the year?
Greg Henry: A little bit, not as much. I think it was two things. I think it’s the Capella acceleration we talked about the net retention rate continuing to improve and it being the best in three years. So that was — part of it driven by Capella. But, Matt, also referred to some large enterprise deals we closed in the quarter with some very material expansion. So it’s really — again, it’s a combination of both, I see it as sort of just broad-based performance in the quarter, quite honestly in terms of where we had set guidance and the pipeline strong. So, we’re again excited for what we did here in the second quarter and the second half outlook.
Operator: Thank you. There are no further questions at this time. I would like to hand the floor back over to management for any closing comments.
Matt Cain: Thanks, operator. To recap, we had another strong quarter. We remain excited about our opportunity with Capella, due to some very big trends in our favor. The rapid adoption of cloud, desire for greater cost efficiency, IT modernization and of course AI. We are cognizant of the macro environment and are sharply focused on execution during times like this, while also building for what we believe will be a very exciting future. Thank you all for joining us, and we look forward to speaking with you next quarter.
Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
