So, we think we have similar exposure and we track to the same trends broadly. The other top providers are not as forthcoming with metrics, so it’s harder to do a direct comparison, but in the longer term, we expect the same trends to apply.
Koji Ikeda: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Peter Weed of Bernstein. Your line is now open.
Peter Weed: Thank you very much. One of the things that jumped out at me is you saw some improvement in net new customer adds quarter-over-quarter kind of for the first time maybe over the last year or so, which is pretty exciting. Obviously, I know there’s a long tail effect with this. But as you look at that, do you see that as kind of a reflection of momentum in kind of the larger enterprise, or a rebound in kind of the digital native venture-backed community perhaps from that born in AI? And if you think about pipeline going forward, should we anticipate kind of this bottoming in strength to continue and maybe accelerate?
Olivier Pomel: So, I mean, yes, the number of customers going up faster than it was in the past few quarters. I would say, it’s hard to read too much into it, because we have a large number of smaller customers and there’s more viability into the number of those smaller customers we get and we lose at any point in time without really having a very large impact on the business. So, I wouldn’t read too much into that. I will say the trends are all in customer acquisitions and retention are good. Another number we reported on which I think is worth mentioning is we saw also a higher number of customers above $100,000 [cross that mark] (ph), the $100,000 in revenue. And that’s a return to the mean of what we had seen before. I think last quarter number was a little bit lower and it really shows what we’re seeing last quarter, which is that customers are growing on that revenue curve.
And sometimes there are little peaks and valleys in that distribution of customers across the revenue curve for us. But overall, the motion is still the same. Customers are blending well small and they’re growing and they’re getting bigger. And as a result, we’re getting a larger and larger number of customers above $100,000, above $1 million and driving the [indiscernible] revenue.
Peter Weed: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Eric Heath of KeyBanc. Your line is now open.
Eric Heath: Hey, thank you. Oli, in your prepared remarks, I don’t think you talked too much on security and just given we’re out here at RSA this week, was curious if you could talk about traction you’re seeing there? And then maybe any feedback on adoption trends following the new packaging you rolled out a couple of quarters ago?
Olivier Pomel: Yeah. So far the news are pretty good on these new packages. Again, we want to wait to have seen them in the market for a few quarters before we comment too much on those, but the uptake is good. They seem to resonate well with customers, correspond to the right need and they are fairly easy to insert into the sales process. So, all that are good news so far. I realize we didn’t put too much into script on the security. We have — we actually have a few things coming up. There’s RSA this week in San Francisco and our team in there — is there to meet with customers. One of the new piece of functionality we’ve announced last week was the Agentless Scanning for [infrastructure] (ph) security products, which we think is going to help a lot of customers deploy our product much more broadly, much more quickly.
So, we’re very excited about that. It’s in beta right now. And yes, overall, the same trends we commented on last quarter are still true, thousands of customers [voting] (ph) on security, revenue growth, growth on a number of different pillars at the same time which is very exciting and really speaks to our platform approach for security as well.
Eric Heath: Thanks, Oli.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Andrew Nowinski of Wells Fargo. Your line is now open.
Andrew Nowinski: Okay. I had a question on guidance for Q2. You had strong net new ARR in Q1, and you said you’re seeing improved usage growth and less optimization. But based on your Q2 revenue guidance, it looks like you’re assuming net new ARR in Q2 declines pretty significantly. I guess, did you have some deals that pulled into Q1? And if not, why would net new ARR in Q2 be down year-over-year?
David Obstler: No, I mean, it’s the same thing that we’ve said in every quarter, that our guidance is taking the trends both in terms of usage growth and new business accumulation, and it discounts them. And that’s exactly the same as we said since we’ve been a public company. So that’s what we do in providing the guidance and continue to do that in this quarter.
Andrew Nowinski: All right. I’m wondering if you’re seeing any sort of uptick in consolidation in the log management and SIEM markets, given the M&A activity in that space?
Olivier Pomel: Yes, there are definitely opportunities there. And so, we spoke on the — I think in the script about some of the advanced query functionalities we’re adding to logs. We spoke about Flex Logs. So, those are all geared towards going after this opportunity. And we think also there’s more specifically an opportunity around SIEM workloads, which is why we’re investing heavily in our Cloud SIEM product. And so, we think there’s definitely a lot of opportunities there and the teams are very focused on that. I don’t expect these opportunities to make a big dent in our numbers in the next couple of quarters, but in the next year or so, definitely we expect to see more.
Andrew Nowinski: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Mike Cikos of Needham. Your line is now open.
Mike Cikos: Hey, thanks for getting me on the call here, guys. Just one topic, a bit of a two-parter here. But I think in the prepared remarks, management incited improving trends for the number of — or the cohort of customers who are moving past optimization sequentially. So I guess the question is really, can you help us think about the rate or pace of customers that are moving into this cohort, is the first piece of the question. And then the second piece, what kind of assumptions do you have for sustained improvement or additional customers entering that cohort as we think about the guidance that we have here today? I’m wondering how much needs to happen on that front for you guys to get more comfortable with the guidance. Or are you guys assuming steady state here and anything else is kind of really just upside? Thank you.
David Obstler: Yeah. No, we said that we don’t provide guidance on the percentage of customers that are in this cohort. We just are commenting that the trends that we mentioned last quarter of the abatement of optimization in this cohort manifested itself again and they continued to grow. Like always, our guidance takes conservative assumptions and looks across the trends in the business and assumes that there would be more conservative drivers of the business than we’ve had in the last quarters. So, we continue with that methodology.
Olivier Pomel: And, look, we mentioned that cohort because we thought it was a bellwether, right? We thought they were the first to really optimize, and they felt they exhibited all the highest needs, I would say, for a quick turnaround on their own financial profile. But there are other pockets of optimization in the business. There are other customers that are going through that later. There are customers still going through it. It’s an ongoing — it’s going to be an ongoing phenomenon. It’s been throughout the history of the company. So, as we get further and further from the macro situation last year — from last year, I think this cohort will lose in relevance in terms of its — we can read into it for the rest of the business.
Mike Cikos: Understood. Thank you for the additional color, guys.
David Obstler: Thank you.
Operator: Thank you. This concludes the question-and-answer session. I would now like to turn it back to CEO, Olivier Pomel, for closing remarks.
Olivier Pomel: All right, thank you. So again, I want to thank the whole team for what was a great quarter. And I know many of our customers and users are listening to the earnings call. So, I want to make sure everybody knows, we’re having our DASH conference in June in New York. You can go to dashcon.io, and we really look forward to seeing you there. So, thank you, all.
David Obstler: Thank you.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
