Michael Latimore: Okay. And then just lastly you talked about maybe a fewer of the 500,000 deals as a reflection of the macro perhaps. What about just sales cycles generally and change in sales cycles?
David Wagner: No, like I said, the velocity was strong, and so I look at that, both the CEM number and the over 100k number, so as indicators of the underlying velocity. But in this one quarter we were down, just a, it’s one quarter and it’s not a huge number, but we were down from five deals over a 100k in the quarter a year ago to 4, oh I’m sorry, over 500k from five deals down to four. And so that, I’m just putting all that in the shaker and really good gross retention, good, still good, very good velocity in the in the mid-sized larger deals and again, in this quarter, a little lower on the large deals.
Michael Latimore: Okay, great. Thanks.
Operator: Our next question will come from Koji Ikeda with Bank of America. You may now go ahead.
Koji Ikeda: Hey guys. Hey, David, hey Patrick. Thanks for taking the questions. I wanted to ask you a question or a followup on the sales capacity commentary earlier. You know, just taking in mind the reduction in capacity last year affecting growth this year, but it sounds like the demand in CEM and sales execution was pretty strong. So, I guess the question is, what are you looking for from a demand perspective this year where you may accelerate the pace of expanding sales capacity from here?
David Wagner: Yes, so that’s a, yes, that is a really good question and you’re, you know, I think you’re asking it the exact way that we’re thinking about it as a leadership team and a go-to-market team. And so we took out quota bearing reps with I guess with intentionality and with caution and the subtractions were largely in the reps who were focused on the smaller deal sizes which would potentially impact end number of new customers, especially as we, sales generated pipeline for those reps comes out quarter-over-quarter. But the real opportunity here in the first half is, arresting the departures and improving rep retention, which, whatever we are now six weeks into the quarter as well as from beginning July last year, we’re making really good progress on that rep retention, that’s thing one to address.
And that provides all of the expansion of capacity that we’d be planning for. As we look forward, we want to grow that capacity, so we want to be back into hiring quota bearing reps as we turn the page later this year into next, and that’s when we’re going be evaluating those decisions carefully based on how our sales efficiency progresses throughout Q1, Q2, and into Q3.
Koji Ikeda: Got it. Thanks David. And just one followup here, looking at the 1Q revenue guide, it is down sequentially. You mentioned gross retention back to the highest in two years. I also mentioned a couple of planned divestitures, so understand all of that, but maybe help us understand any additional puts and takes beyond that that would cause, 1Q revenue to be down sequentially, anything particular to call out from a FX perspective? Yes, yes, thank you.
David Wagner: Yes, I’ll let Patrick take the details. We’ve been disclosing, I think beginning at Q3, the split between revenue and in the quarter, rounded to the nearest million between recurring and perpetual. When you look at that stacked part chart we had a really strong Q4 and a pretty strong Q3. And so that combined with the lower perpetual Q4 and that’s the biggest difference. You’re going to see steady growth in our recurring revenues and seasonality in the perpetuals.
