Michael Turits: Thanks, Sid.
Sid Sijbrandij: Thanks, Michael.
Operator: Ethan with Piper Sandler.
Unidentified Analyst: Great, Thanks for taking my question. Kind of filling in here for Rob this afternoon. I just wanted to kind of talk about kind of on the same topic of cloud optimizations and as these kind of come to maybe start to slow down, how are companies thinking about ramping the velocity of new development projects, especially as we head into 2024. I’d just be curious to hear how you — customer conversations have been trending on that topic. Thank you.
Sid Sijbrandij: I think there’s a lot of focus on ROI, like how do we do more and what measures should we look at? One of the best practices today is DORA metrics, looking for example at how frequently can we deploy. Also, cycle time is becoming really important for customers. How fast can I go from planning something to getting it out there? We’ve learned as an industry not to focus on lines of code written. It’s not a good metric to measure efficiency. And with GitLab, you’re able to look at those value stream metrics much more easily because you have everything in a single platform. And you’re able to say, hey, if I move to GitLab, I know I’m able to make faster progress against my most important initiatives.
Unidentified Analyst: Got it, thank you.
Sid Sijbrandij: Thanks.
Operator: Our next question comes from Matt with RBC.
Matthew Hedberg: Great, thanks for taking my question guys. Congrats from me as well. Maybe for either of you, one of the drivers that we think about over the next several years is free to paid. I think you guys have changed slightly sort of how you think about free-to-pay usage within your base. Can you talk a little bit more about that philosophically and are you seeing any benefit from that in the Q3 results?
Brian Robins: Yeah Matt, I’ll take that. Thanks for the question. And so we did implement a user limit on GitLab.com, and it’s led good conversion from free to paid. However, the vast majorities fall below $5,000, the base customer limit that we report, and so the impact is relatively low. We’re continuing to, pursue that product-led growth. We think it will be built into our guidance. And so that’s on free to paid. I’ll also take this as just an opportunity. I know a lot of you have had a wide range of outputs in the model for FY 2025 related to the Premium price increase. We’re halfway through our planning process right now. So we aren’t giving guidance for next year. It’s still a bit early. But the early work that we’ve done, we believe that the Premium price increase will contribute roughly $10 million to $20 million in revenue for next year. And so it should help you out from a modeling perspective.
Matthew Hedberg: Thanks, guys. Great detail.
Brian Robins: Thanks, Matt.
Operator: Joel with Truist is up next.
Joel Fishbein: Hi, thanks for taking the question. Sid, you mentioned on the call the AWS deal where you beat out GitHub. I would love to get a little bit more color on the partnerships and — with Google and AWS and how that go-to-market is working and maybe some updates from you there in terms of maybe driving some deal sizes, et cetera. Thanks.
Sid Sijbrandij: Yeah. Thanks, Joel. So we’ve got strong partnerships with both Google and AWS. And they’re interested because we help their customers move to their cloud faster. We help them accelerate moving those workloads. And an interesting thing we did with Google recently, we announced at Google Next that they’ll be integrating GitLab into their development console for GCP. I think that’s a really interesting development that will pay off as many things over the longer term. I think it speaks to the strength of these partnerships together with the AWS example I mentioned earlier.
Joel Fishbein: Just a quick follow-up. Can you just explain to us how — maybe [Amazon Q] (ph), you may work in conjunction with that as a part of being a competitive product? That would be helpful as well. Thanks.
Sid Sijbrandij: Yeah, for sure. We’re going to make sure — we’re discussing with Amazon how we can Q work really well with GitLab.
Joel Fishbein: Thank you.
Sid Sijbrandij: Thanks, Joel.
Operator: Pinjalim with JPMorgan.
Pinjalim Bora: Hey guys. Congrats on the quarter. Just one question for me. Ultimately, ARR seems like it was a big number, 50% of ARR, if I heard that correctly. It seems like a big uptick sequentially. Has the Premium price increase actually driven kind of a big upgrade cycle for you on Ultimate? Or I guess I can think of the reverse as well. Has Premium seat growth slowed dramatically sequentially?
Brian Robins: Yeah. A couple of things there to unpack. Thanks for the questions. Just for clarity, we said in the prepared remarks that Ultimate bookings were greater than 50% of the total bookings. Ultimate ARR comprises of 43% of the total. And Ultimate continues to be our fastest-growing tier, primarily as it relates to our security and compliance that’s found within Ultimate. And so I hope that helps out from a clarity standpoint.
Pinjalim Bora: That does. Thank you very much.
Operator: Next is Gregg with Mizuho.
Gregg Moskowitz: Thank you for taking the questions. Regarding GitLab Duo, just wondering if there are any usage updates that you might be able to share for Suggested Reviewers or some of the other features. And then secondly, in your recent state of AI in software development report, which really is excellent, by the way, there were a lot of interesting data points. One that caught my eye is that more than half of respondents said that they think AI will replace their role within the next five years. And I’m wondering if that in any way changes the way in which you’re thinking about the impact that GenAI could have on the number of seats over a longer-term basis, of course. Thank you.
