Eliran Glazer: Hi Steve, it’s Eliran. Yes, so 34% obviously, is a very high percentage, and we would like to think about it as a one-off. Although we said that we are going to be slightly above 20% originally when we gave Q2 guidance by the end of the year, it’s mostly about, I would say, disciplined spending as part of the improving efficiency. And even though with the macro environment, we have a very consistent customer collections and billings. We don’t come across any significant issues. Actually, it’s very healthy. And also, just to be fair, with over $1 billion in bank – in the bank on the balance, we continue to generate nice returns with the environment of inflation. So all of the above is very healthy for us in terms of efficient free cash flow.
Steve Enders: That’s perfect. Thanks for taking the questions.
Operator: Our next question comes from the line of Brent Bracelin with Piper Sandler. Please go ahead.
Brent Bracelin: Good morning. Here we’ll echo the best wishes and support here for you, your family and colleagues impacted by the tragedy in Israel. Maybe Roy, obviously, super impressed with the strong execution, given some of the challenges. Obviously, we’re seeing some mix trends in SMB. I wanted to pivot a little bit towards the future product, specifically the monday.com AI Assistant. Can you just talk a little bit about what you are seeing there in that beta, what the early response has been? And then I have one quick follow-up?
Roy Mann: Yes. It’s Roy. So the AI was very nicely accepted with building boards. So, we used the assistant, to kind of help customers build things that are usually complex, like the formula builder and like the board and the workflow itself. And we saw that people kind of were surprised, about the suggestions they got and said like, they were really happy with the boards, they got from the AI. So, it’s kind of like, it’s really an assistant and that on-boards customers and helps them get the most out of the system right now.
Brent Bracelin: Very encouraging. And then I guess as a follow-up for you, Eliran, impressed here by continued improvement in margins. It sounded like you’re leaning, a little bit in on performance. Mark performance marketing, and the LTV to CAC, sounds like its improving. Can you continue to kind of sustain margins here, even while getting a little aggressive with performance marketing spend, just given the returns you’re seeing right now?
Eliran Glazer: So Brent, hi. I think that – the lever that is most, I would say, impactful of the numbers on a quarter basis is definitely the performance marketing, because it allows us either to spend when we see the return, or to hold back if we don’t see the return. From our perspective, things have not really changed, from the last few quarters. So we kind of manage the, spend in accordance with the returns that we see. We don’t see anything – it’s not getting any better, but it’s not getting any worse in terms of what the returns that we are seeing, maybe some of the competitors has already, started to spend more on the performance marketing. But for us, it’s pretty much what we anticipated, or what we saw in prior quarters.
We actually thought that, when the year goes by, we might see a more aggressive behavior from other players, but we didn’t so far. So, as long as it meets our return criteria, we continue to spend. And if it will be that a more aggressive spend, will provide us better results, then we are going to do it.
Brent Bracelin: Great to see impressive execution here, guys. Thanks.
Operator: Our next question comes from the line of Arjun Bhatia with William Blair. Please go ahead.
Arjun Bhatia: Perfect. Thank you guys. And all of my best wishes to you all in Israel. First, maybe just to start on – I noticed that the up market trends look very strong, but especially the percentage of ARR that you’re getting, from your large 50,000 plus customers. Can you just talk a little bit about, if you’re seeing any difference in customer behavior between those larger enterprise customers that are deployed on monday versus smaller customers, whether it’s in terms of upsell or seat expansion, et cetera? Thank you.
Eran Zinman: Yes. Hi Arjun, this is Eran. So yes, overall, in terms of our enterprise accounts, as I’ve mentioned, we see great momentum. Those enterprise accounts tend to upgrade more and increase their seat count more over time. So definitely, we see higher levels of MDR. In terms of usage, there’s a little bit of a difference between the way SMBs use it an enterprise customers. SMBs what we see is they usually consolidate on monday, managing a lot of departments and almost their entire operation on monday. In enterprise customers, usually, we sold two or three kind of main business use case for them. And then over time, they might add more departments, but it’s more of a gradual process. But definitely, in terms of retention, stability, growth, we invest a lot in enterprise customers, because over time, they generate more revenue and tend to expend more.
Arjun Bhatia: Okay. Got it. Perfect. That’s very helpful. And then just going on to mondayDB, it sounds like the next phase here is going to be on API enhancements and then improving scalability. How much is that impacting your ability, to go after these larger customers and show them the scalability and the improvements you’re making in the infrastructure, to get them to use monday? Is that something that, you’re seeing already, or something that we anticipate further down the road, as more DB versions get rolled out?
Eran Zinman: Yes. This is Eran again. So definitely, you touched on the point here, because I think one of the things that really help us accelerate scale, within enterprise customer is mondayDB. We mentioned this during the beginning of the earnings call, but we got great feedback from version 1.0. We saw customers already skilling their operation, and how to use monday. And now with the release of 1.1, we’ve really accelerated a major part, which a lot of enterprise use, which is dashboards. It’s been a significant boost, to how to use the platform. And usually, it’s managers and high-level management they use dashboards. So definitely, this is a huge game changer for our ability, to scale within the enterprise. And we have a lot of other sub versions that, we aim to launch in terms of mondayDB. And we feel that each iteration really help us accelerate our penetration into larger enterprises.
Arjun Bhatia: All right, perfect. Thank you and congrats, on the strong execution here, guys.
Operator: Our next question comes from the line of Derrick Wood with TD Cowen. Please go ahead.
