Ash Kulkarni: Yes. So let me maybe touch upon that. So in terms of the three different segments, like I mentioned, where we tend to lead with in new accounts is almost always either in log analytics for Observability or SIEM for security or Enterprise Search. In Enterprise Search, we really haven’t seen any change. In security and log analytics, we really haven’t seen any change either. What we have seen is, as we land and we expand, as we expect €“ when we are trying to talk about XDR, we tend to see the vendors that have already been in the XDR space, but that’s where we typically tend to go with that expand motion, not with a new customer, but with a customer that’s already familiar with the Elastic platform that’s already using us for say SIEM.
And then we basically get the point across to them that the same agents that they have deployed for ingesting data into SIEM for analytics are the agents that can help them with actual endpoint protection. So, it tends to be a different kind of a conversation as opposed to just going head-to-head against other XDR vendors. And it’s the same thing even in Observability, because we also tend to start with log analytics, which has been an area of extreme strength for us. That’s an area where we are very well known. We tend to have the advantage. We compete incredibly well in that area. And once we start with log analytics, the progress that we have made on APM has been with existing customers, right. So once we land with log analytics, we will expand from there, we don’t tend to just go into completely new APM scenarios for APM itself, like for APM alone.
So, it’s because of all of those dynamics, we have not seen the competitive environment change in any meaningful way at all.
Kamil Mielczarek: That’s really helpful. And just a quick follow-up, you have well over $800 million in cash and cash equivalents. Can you update us on how you are thinking about the decision to build versus buy? And given the declining valuations in private markets, would you be more open to a more transformative acquisition?
Ash Kulkarni: Yes. Look, from our perspective, typically, one of the things that we have been very focused on is we want to make sure that we are building a platform, not just assembling a portfolio. We believe that, that’s the right answer in the long-term. When you have a clear well integrated platform, the land and expand motion tends to work much better. Your overall efficiency tends to only improve over time in terms of how you go to market, even in terms of your engineering efforts. So we want to be consistent with that. And so that’s one of the reasons why traditionally we have always done tuck-in technology acquisitions. In the private markets, to your point, at this point, to be honest, I don’t think that the private markets have corrected the way we have seen the changes in the public markets.
It will happen in time. That’s what history has always shown us. But as that happens, when that happens, we are always going to be looking for technology tuck-ins that allow us to bring our future forward, because we tend to integrate them deeply to make sure that we have a consistent platform. So I don’t expect that strategy to change. When you say transformative, some of those small tuck-in acquisitions could end up being transformative just in terms of what that lets us accomplish in new areas that lets us get into. And we will always be on the lookout for those kinds of things, but that’s how you should think about our strategy there.
Kamil Mielczarek: That’s helpful. Thanks, guys.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ash Kulkarni for any closing remarks. Please go ahead.
Ash Kulkarni: Well, so thank you all for joining us. The thing that I’d say in closing is we are absolutely focused on our execution and we remain confident in our ability to both drive growth and build a generational company and also continue to focus on profitability, as we have demonstrated through all the things that we have done. So thank you again. Have a great day.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
