But to the point about — the trust is the starting position. Maybe one other point I’d make is, assuming you give us consent, we then anonymize and aggregate that data so that there is no opportunity for anyone to extract any confidential issues or data out of the agreements.
Operator: Our next question comes from the line of Mark Murphy with JPMorgan. Please proceed with your question.
Mark Murphy: Thank you very much and congrats on a nice finish to the year. Thinking back to last quarter, you had mentioned the introduction of some new enterprise licensing structures, and there was some comparison, I believe, to ELAs. Wondering if you can shed a bit more light on any changes made there. And when they were implemented? And Blake, did it have any effect on Q4 financial results? For instance, would it change any of the ratios between bookings and billings and recognized revenues or any type of impact to think about from those changes going forward?
Allan Thygesen: Yes, we have done a few deals like that, and I think it will continue to grow with some of our very largest clients. And as we offer a broader set of products, obviously, an enterprise license also becomes more interesting as you can mix and match across products. But it still remains a very small part of the business. We even some of our very largest customers, some of the contract renewals remain on an envelope basis.
Blake Grayson: Yes. And just to add on top of that, it’s — while we’re super excited about the opportunity in very specific cases to consider those, it’s not a huge number for us today, it grows. It’s continuing to grow. And again, I think, and to directly answer your question, no material impact on our results for Q4. But it’s also one of these things, I think, in this business, we have a very, very broad and diverse customer base. And so there’s — we don’t have single customers that, I would say, vastly impact us like there might be other companies, which, I think is a strength for us. And so — but anyways, just to directly answer your question, no material impact.
Allan Thygesen: Yes. I would make one other point. ELA has a very specific connotation of sort of unlimited consumption and being able to combine products across. We have leaned in significantly harder to make sure that we are competitive in large enterprise deals. And we did some very large and very nice renewals with some large customers. I think in part as a result of that improved motion. So we have senior people on it. We have our large deal desk. We have all the things that you would expect to make sure that we are as competitive as possible.
Operator: Our next question comes from the line of Michael Turrin with Wells Fargo Securities. Please proceed with your question.
Michael Berg: Hi. Thanks for taking my question. This is Michael Berg on for Michael Turrin. I just wanted to touch on free cash flow. You had a very strong free cash flow generating quarter and year. Maybe you could just shed some light on what drove that? Was it some of the renewal timing you discussed on your — in terms of billings on the quarter? And how can we think about the relationship between operating margin and free cash flow moving forward? Thanks.
Blake Grayson: Sure. And so yes, we did have a very strong quarter and year as it regards to free cash flow, we had a 32% free cash flow yield for fiscal ’24. And the reason why it’s materially higher than our operating margin is frankly, just a working capital tailwind that we had, and it’s really driven by two components. One is if you recall about a year ago, we had an ERP implementation that caused a delay in our ability to do some collections. So earlier this year, we’ve got a tailwind from that. But on top of that, we’ve also improved our collections process, I would say, extremely well, reduced agings. And so kind of, I would say, just really brought some operational efficiency to our working capital that showed that improvement.
Now going forward, as you all know, like being able to repeat working capital improvements on top of each other year-over-year, while we’re going to strive to be able to continue to improve and gain efficiencies, it’s not something you usually can just get pretty easily. And so that’s why in the prepared remarks, you’ll find that I would expect longer term to assume a free cash flow yield more closer to that operating margin.
Operator: Our next question comes — our final question comes from the line of Alex Zukin with Wolfe Research. Please proceed with your question.
Arsenije Matovic: Hi. This is Arsenije on for Alex Zukin. Congrats on results. With the international strength you have seen this year, I think it has contributed close to 45% of total revenue growth in fiscal ’24. Do you expect this to be an even greater contribution to growth in fiscal ’25? Does this mix stay the same? Or as you roll through the drag from the pandemic cohorts early in fiscal ’25, do you think that there is strong renewal expansion domestically if macro stays the same, that leads to more US contribution to top line growth in fiscal ’25? Thank you.
Blake Grayson: Yes. Thanks for the question. Well, first off, again, really happy with how our international growth has progressed to the year, growing much faster than the overall business. All of our major regions grew to the double-digits in Q4. To the question about whether we think it accelerates more or less, I’m not going to provide any guidance out to that. But what I will say is that, just to reiterate, the international opportunity for us, I think, is quite sizable. Only 27% of our revenue in Q4 came from our international business. And if you think of GDP or something as a proxy, it should be, not higher than that. And so I think I’m really excited for that longer-term opportunity, but not any place to say, oh, I think it will accelerate faster or slower than any other market.
