Koji Ikeda: Hey guys. Thanks for taking my question. Just one for me here and I am really kind of trying to focus on this less than 100,000 customer ACV cohort here. So, just given the commentary with the SMB and really thinking about these two components being a fairly big component of the total revenue and really that $2 billion fiscal €˜25 target. I really want to understand the growth potential of this category of the medium-term. I heard that you guys are repurposing SMB spend to enterprise sales, a higher focus on self-serve for SMB and then some investments for digital demand generation. So, a lot of puts and takes there. So, I guess the question is, how should we be thinking about the growth in this sub 100,000 ACV segment here? Is the second quarter kind of the net add a good way to think about a sustainable net adds in this category? I mean does it go down from here? Does it go up from here? Any sort of help on how to think about this category? Thanks.
Janesh Moorjani: Yes. Koji, maybe I will try and unpack that a little bit. So, a couple of thoughts. In terms of our customer acquisition motions, we continue, as we have done over the past couple of quarters to focus on driving towards customers who have a greater propensity to spend over time with us, which has meant focusing on those customers that are above that 10,000 ACV threshold and focusing less on the long tail of smaller customers that might spend just a few hundred dollars a month, for example. And you see that in the numbers. So, when you look at the total subscription customer count, although sequentially, we added fewer total customers. When you look at the customers that are more than $10,000 in ACV, that customer additions was consistent with what we have done in prior quarters.
So, we feel pretty good about the new customer acquisition motion and the effectiveness that we are driving as we try and work the cost to acquire customers into the calculus as well. So, I think that’s working quite nicely now. If you think about how those customers then eventually expand into the greater than 100,000 category, I think that’s where we €“ you can look at a couple of metrics. Obviously, the net expansion rate and then also just the sheer number of customers in the greater than 100,000 count in that particular category. And again, in both of those categories, you will see that the expansion motions are working quite nicely. Here in Q2, they were a little bit slower than what we would have ideally liked. And I think that just reflects the broader trends that we have talked about from an enterprise perspective.
So, what that does for us in terms of continuing to drive growth into the future suggests that the areas that have been working nicely for us, we need to continue to expand investment in those areas. So, for example, in digital demand gen and marketing to continue to acquire customers at the right pace and the right kinds of customers at the right pace and then to continue to invest in the higher touch selling motion where we can continue to expand those customers into larger customers over time. And those are the two areas where we are continuing to shop in and invest a bit further, while focusing our €“ and pulling back some of the investments in some of the other areas that were less productive in those selling motions.
Koji Ikeda: Thanks Janesh. Thanks for taking the question. Appreciate it.
Janesh Moorjani: Yes. Of course.
Operator: The next question will come from Kamil Mielczarek with William Blair. Please go ahead.
Kamil Mielczarek: Hi, thanks for taking my question. I just want to double-click on the competitive environment. I believe you said win rates are unchanged. But as you look across your three products, can you provide more detail on where you are seeing the most competitive pressure? And there is a large number of private vendors entering the Observability space, are you seeing any change in who you are coming up against some deals?
