Regarding your second question about some of the new products and the impact of AI long term, what I would say is we definitely believe it will have a big impact long term. We think that things like Vector Search just make it so much easier to build smarter applications on MongoDB that unified developer experience is a key differentiator. There’s a really strong interest in our Public Preview product. We also see a lot of interest in Stream Processing. Stream Processing is a use case that’s really optimized for MongoDB. The data is typically JSON, the variability of the data lends itself to a document model that’s much more flexible. It’s obviously very developer-oriented, where all the alternatives are using very rigid schemas and are much more complicated to use that plays into our sweet spot.
So we think we have a big opportunity there. But — and so it’s hard to quantify what that impact will be in the long term, but I will tell you that we’re really excited and the interest level on the new products is incredibly high.
Kash Rangan: Fantastic. Thank you.
Dev Ittycheria: Thank you, Kash.
Operator: Thank you. One moment for the next question. Our next question will be coming from Brad Reback of Stifel. Your line is open.
Brad Reback: Great. Thanks very much. I’m not sure Dev or Michael, but going back to the commentary on fewer upfront Atlas commits. Oftentimes, when customers sign multiyear deals and pay upfront, they get a better rate. So if we were to think about not having them pay you upfront and make long-term commits, is that a net margin benefit to you guys on the pricing side?
Michael Gordon: Yeah. So a couple of things. Thanks, Brad, for the question. In general, for us, even before the sort of evolution and changes in multiyear deals, typically, they were not all paid upfront. Typically, ours has been annually billed. But yes, to your point, I think as we’ve reduced upfront commitment, you have a couple of dynamics. The key one is when we are not motivating it or providing an incentive to our sales force, and it winds up being customer driven, the leverage in that negotiation shifts. And on the margin, that is helpful for the ultimate pricing or discount and winds up with sort of better pricing for us, less discounting to the customer.
Brad Reback: Excellent. And then on your commentary about second half hiring outpacing first half. Would it be correct to assume that the hiring environment is a little less competitive, so you might actually be able to find people more easily and get better pricing for them as well? Thanks.
Dev Ittycheria: Yeah. What I would say, Brad, is that, I would say, in general, obviously, the frothiness of a few years ago has abated, but for certain skill sets, there’s still significant premium for talent, and we don’t want to lower our bar just to optimize on cost. We pride ourselves on recruiting the best of the best in this industry. And we focus on paying market rates. And so while it’s a little easier because the market is a little softer, I wouldn’t suggest that all of a sudden, we’re getting employees at a massive discount.
Michael Gordon: Yeah. I would think about it as availability rather than cost and then throw in some of the dynamics with some places around different return to office models and other things. I think that sort of incrementally is likely to provide opportunities in the back half of the year. And as they present themselves, we’ll certainly pursue those.
Brad Reback: Excellent. Thank you.
Michael Gordon: Thank you.
Operator: Thank you. One moment for the next question. Our next question will be coming from Karl Keirstead of UBS. Your line is open.
Karl Keirstead: Okay. Great. Maybe this one to Mike. Michael, I wouldn’t normally ask about the other segment, but it’s such an outlier if I could ask a two-parter. First is, what surprised on the upside there? Was the Alibaba deal much larger than you thought? Or did you grab a few others, maybe you could unpack that? And secondly, you did tell us that the second half guidance assumes a significant decline in the non-Atlas business. Is it fair to assume that this other category might return back to the levels it was at pre the July quarter? Thank you.
Michael Gordon: Yeah. Thanks, Karl. No, other deals, not Alibaba. Alibaba was baked at the time of the last guidance call. So it was sort of incremental deals that surprised us to the upside there. And yes, obviously, it’s a volatile or variable, especially given the 606 and the nature of it where it goes, given the lumpiness of the term license revenue and things like that. And so, yes, I think that this is not repeatable performance, and I think it should settle back down to a more — to a lower and more normalized level.
Karl Keirstead: Okay. And then if I could ask a follow-up, Mike, you did a good job explaining the changes in the model and the licensing on cash flow, but it’s not a metric you often talk about, but your deferred revenue balance was actually down year-over-year, highly unusual. Is this basically the same explanation that would be impacting DR? Thank you.
Michael Gordon: Yeah. I think it’s the same explanation or discussion overlaid with our recurring discussion around billings, and that’s sort of not a metric that we focused on and that we sort of discourage people from using and we’re focused sort of on those workloads and winning new workloads rather than large upfront commitments. But one of the ways that plays out is absolutely in deferred and for anyone still doing defer — I mean, calculated billings. Calculations that will affect that there as well. Yes.
Karl Keirstead: Okay. Awesome. Thanks so much.
Operator: Thank you. One moment for the next question. Our next question is coming from Rishi Jaluria of RBC. Your line is open.
Unidentified Analyst: This is [Rich calling] (ph) on for Rishi Jaluria today. Thanks for taking my question. So I guess if we look at the workloads you have in front of you with Vector Search, Relational Migrator and Streaming and could even throw an application search, which was more of a driver, let’s call it, last year. But if we had to stack rank each of those workloads in terms of your positioning to win and your overall opportunity in each of those use cases, how would you go about doing that?
