Operator: One moment for our next question. Our next question comes from Rishi Jaluria with RBC Capital Markets. Your line is open. This is Richard Poland for Rishi Jaluria. Thanks for taking my question and would reiterate my congrats to Drew. First one, just in terms of the new bundles, how should we interpret difference between the new DocSend and e-signature pricing capabilities that are included in the bundles versus what was available in the standalone offerings prior? And how long until we expect more of the functionality like FormSwift or Dash and AI to be included in those bundles as well? Thanks.
Tim Regan: Sure. So maybe I’ll start with the back end of your question. Now that we’ve built these bundles, we will continue to iterate on further capabilities to add to them over time. And so, FormSwift is one of the areas that we are contemplating as far as future additions to the bundles, and we’ll have more to share on that in future quarters. Dash, at this point, we are navigating towards selling that on a standalone basis. We’re driving towards our GA in the early part of 2024 where we are still identifying our go-to-market approach and so much more to share on that front as we get closer to that point. As far as how we’ve integrated DocSend and Sign into these bundles. So maybe I’ll just articulate that we are offering Dropbox Essentials for solo professionals for $22.
That’s relative to our professional plan, which was $20. Dropbox Business for small teams, that’s $24 a month, relative to standard at $18. And Dropbox Business Plus for larger teams, $32 a month, relative to advance for $30. And so the way we’ve brought these in is we’ve brought in some degree of functionality, but not full functionality from our sign and send capabilities. And so, that’s reflected in the degree of uplift in the pricing of those plans. Where again, the idea is to drive adoption of these multi-product capabilities that we have in these plans, where we’ve seen increased conversion and retention once users use more than one portion of our functionality. So that’s the idea behind the bundles and we’re excited to see how this progresses.
Richard Poland: Okay, that’s very helpful. And then just to follow up to that, I think in previous quarters you mentioned efforts to improve customer awareness of the document workflow capabilities. It seems like this kind of jives with that pretty well. But do you have plans, I guess, do any other like marketing campaigns or anything like that to boost awareness of the new pricing plans or maybe try and shift some of those family customers that should probably be on the team’s business plans? Anything like that kind of as we look into 2024?
Tim Regan: Absolutely. We’re looking into many different angles to improve the awareness of our multi-product capabilities. Marketing campaigns, as you alluded to, and that’s part of why our margins are going from 36% in the third quarter down to the guided level in the fourth quarter. That’s where we’re investing in marketing campaigns to fuel awareness of Dash as well as these bundled offerings that we just touched on. And then again, we’ve accompanied the launch of bundles with this refreshed web design that makes it very easy to find and use this additional functionality. So, a multi-prong approach to try to improve the awareness.
Richard Poland: Got it. Thank you. That’s very helpful.
Operator: One moment for our next question. Our next question comes from [indiscernible] of Jefferies, your line is open.
Eylon Liani: Hello. This is Eylon Liani on for [indiscernible]. Thank you for taking my question. First, you stated that the demand environment remained roughly the same versus 2Q. When do you expect that sentiment to shift, especially for DocSend and HelloSign that have remained under pressure in the past couple of quarters? And second, if you can shed some color on the international side, that would be helpful as well. Thanks.
Tim Regan: It’s really hard for me to predict when the macro will change and when sentiment will shift. It’s not something I’m assuming in our guidance. So for now, certainly assuming consistency in the trends that we have. As far as international, FX headwinds continue to put pressure on our international growth rates. Our document workflow businesses are also predominantly in the US, and those tend to have faster growth rates. Though of course driving international growth through improved localization is an opportunity for us. And maybe just briefly on the Middle East, we do have double digit ARR from customers in Israel, and since the beginning of the conflict, we have seen some slowdown in activity in that region. However, I don’t expect that to have a material impact on our overall numbers.
Eylon Liani: Thank you.
Operator: One moment for our next question. Our next question comes from Pat Walravens with JMP Securities. Your line is open.
Pat Walravens: Oh, great. Thank you. And forgive me if this has already been touched on. But is — like I think with Adobe Firefly, there’s something like 3 billion images that’s been created. And with all the image generators, we’re seeing more and more of it. Is it going to drive different storage requirements for you guys and other different sort of functionality and usage.
Tim Regan: Sorry, Pat, are you referring to Adobe Firefly or…
Pat Walravens: Yes. Just with generative AI, there’s so much more video and images that are going to be created than have ever been created before and you got to put them somewhere.
Tim Regan: Sure, so Dropbox has actually been home to many PDF type files and users of Adobe. And so I would expect those sorts of trends to continue as users continue to find places to store their content, and Dropbox is one of their favorite homes for that. So that could be a catalyst for future storage growth for us and we’re paying close attention to these sorts of trends.
Pat Walravens: Okay and so far not though right?
Tim Regan: No material difference or No material deltas as related to Adobe Firefly at this point.
Pat Walravens: Okay. All right. Thank you.
Operator: Thank you. And I see that we have no further questions in queue at this time. Ladies and gentlemen, this concludes today’s conference call. You may now disconnect at this time and have a wonderful day.
