Shrenik Kothari: Got it. Thanks a lot, Ash.
Operator: The next question is from Kingsley Crane with Canaccord. Please go ahead.
Kingsley Crane: Great. Thanks for taking my question. Congrats on the quarter. I just want to ask a quick one on cloud. Great performance this quarter. As we look at Q4, should we expect similar levels of seasonality versus last year? I think last year was when the cloud cost optimization started in April?
Janesh Moorjani: Hi, Kingsley, this is Janesh. Maybe I’ll take that. Overall, when we look at the approach that we’ve had – we had really strong performance in the first half of this year. We’ve seen customers start to ramp their consumption towards the levels that they had committed, and we’ve continued to see them make strong commitments. As I mentioned earlier, when I talked about guidance, the way we’ve approached it is simply to consider the fact that it’s still an economic environment out there, that is stable, you know, but similar to what it was before. And there’s room for potential fluctuations in consumption patterns. So we’re just trying to make sure that we balance the strength of our execution that we’ve seen so far in the first half of the year against any potential risks that might be out there. And again, just for abundant clarity, we’ve not actually experienced anything different, yet, but we’re just being thoughtful as we build our plan for the year.
Kingsley Crane: Makes sense. Thanks for the color, Janesh.
Janesh Moorjani: Thank you.
Operator: The next question is from Mike Cikos with Needham and Company. Please go ahead.
Michael Cikos: Hi, thank you. And Janesh, if I could just build off Kingsley’s question there. I know that there have been a number of people who are asking about the guidance construction and what it means for Elastic cloud. I guess my question said plainly, does your guidance currently anticipate the gap between commitments and consumption widening, as we get into the second half of this year versus what was delivered in the second quarter?
Janesh Moorjani: I think the answer to that question mathematically would depend on what level of commitments we are assuming for Q3 and Q4. And I’m not going to unpack that level of detail. I think what we’ve seen is that consumption is ramping quite nicely. We’re doing everything that we can to help customers derive value. It’s worked nicely for us for the last few quarters, and we’ll continue to work hard towards that end for the next couple of quarters and beyond.
Michael Cikos: Got it. And if I could – just a quick follow-up for Ash here, but on the generative AI adoption, I’d be curious to hear what kind of customers you are seeing adopt? Are these more potentially digital natives or mid-sized organizations that might be nimbler? And the reason I ask is, we picked up in our checks that maybe some of the larger enterprises are still running evaluations to understand GenAI, how to orchestrate these workflows, just given the compute intensity behind them. So anything incremental on the flavor of customers that are starting to adopt these technologies would be really helpful?
Ashutosh Kulkarni: Yes. Thanks for the question. We are seeing success across the board, large customers as well as digital natives across verticals. I gave at least two examples in my prepared remarks. Those are both, you know, those were large customers. One I – one we noted as DocuSign, the other, you know, was the video sharing platform. And what I would say is that generally, even the larger organizations, one of the reasons why we are having success in those environments is because we are proven in those environments. The value of incumbency, the fact that they trust our platform, they’ve been doing all kinds of large scale search applications on our platform in the past. And now, as they see the functionality and the innovations that we are driving, it’s very – you know, it’s a much faster process for them to get productive and be able to build GenAI applications on our platform than other places.
And we’ve seen that over and over again, where they might start playing around with some pure vector database and they quickly realize that they need more than that and they look to our platform and they choose our platform. So I feel really good about it. And it’s not just about the digital natives, it’s actually much broader than that.
Michael Cikos: Thank you for clarifying. And I will turn it over to my colleague. Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ash Kulkarni for any closing remarks.
Ashutosh Kulkarni: Thank you all very much for joining our call today. I could not be more excited about the opportunity and our unique position in generative AI, as a leading AI-powered search analytics platform. We are pleased with our strong performance in the first half and confident about the second half of the year. We look forward to updating you on our progress as we go. Have a great rest of the evening and thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
