Brad Sills: Great. Thank you so much. I wanted to ask a question around the sales capacity. It sounds like, at some point last year, you realized that you had under-invested, maybe pivoted too much towards margin expansion and then are now catching up. In the guidance, if you could assume you had the sales capacity that you would prefer to be at this point, given the demand that you’re seeing, would we be at a higher level of growth? I’m just trying to parse out how much of the guide is factoring in those constraints on sales capacity that you’ve talked about?
Dev Ittycheria: Yeah, so thanks for your question. Yes, we, given the macro uncertainty, especially coming out off Q4 of last year, we did slow down hiring quite meaningfully. And obviously that showed up in our numbers to the point that Michael talked about in our op margin as well. We obviously know that we have a big opportunity in front of us. So we are growing our headcount between the mid and high teens. We think that’s appropriate relative to the opportunities we see. And yes, if we had more productive sales capacity, the guidance would probably be higher. There’s no question about that.
Michael Gordon: Yeah, I would just — Brad, I would just make sure it’s clear. The slowing down and hiring was really macro related and just sort of concerns about the environment. If you think back then, there were broadscale layoffs happening across the industry and everything else. And obviously we successfully weathered the storm. I think we talked about on the last call how with the benefit of hindsight and the results that we put up and how quickly, at least for us, things stabilized, we could have started investing sooner. And so I think in the call — the year-ago call, we talked about adding single digit headcount growth relative to I think 30% headcount growth in the prior year. We wound up adding 9%. So obviously at the high end of what would constitute single digits in part because of the stabilization that we did see, but to the comments that affect the op income guide and everything else, that was very back-end loaded, right?
So those investments will much more affect the fiscal ‘25 P&L, and that’s really what we’re reflecting into.
Brad Sills: Understood, thanks so much for that. And then one more, if I may please. You guys have such broad exposure to different industries. With the advent of AI coming into your business and some of the early progress you’re seeing, are there any verticals that you would point to where you’re seeing more activity perhaps than others, any use cases you might point to, just to give us a sense for where that early adopter might come from? Thank you.
Dev Ittycheria: Yeah, in regards to use cases, we’re seeing most customers focus on driving efficiencies in their business because their existing baseline of costs are well known. So it’s much easier for them to determine how much value they can derive by using some of these new AI technologies. So I see the first wave of applications being around reducing costs. You’ve seen some announcements by some customers saying, focusing on things like customer support and customer service, they really have — they have found ways to dramatically reduce their costs. That’s not surprising to me. I think cogeneration and this increasing developer productivity is another area. I think those are going to be kind of two areas where there’s low hanging fruit.
But then I think you’re going to see customers focus on delivering better experiences for their customers and then find new streams of growth. And so I think it will be common phases. And so in terms of across industries, I think it’s obviously there’s some constraints and some customers based on the regulated nature of their industry, but in general we see basically high interest across almost every industry that we operate in.
Brad Sills: That’s exciting. Thank you so much, Dev.
Dev Ittycheria: Thank you.
Operator: Thank you, Brad. Give me a moment. Our next question comes from the line of Rishi Jaluria of RBC. [Technical Difficulty] is open.
Rishi Jaluria: Wonderful. Hey, Dev. Hey, Michael. Thanks so much for taking my question. I wanted to first start with relational migrator. Dev, can you talk a little bit about what demand for that looks like? And when customers are talking to you, are they more focused around the value prop being around cost savings that they get from moving from legacy relational databases over to MongoDB? Is it more about the flexibility around the technology itself? And maybe if you could tie in, how you expect now with GenAI’s accelerator, how that can impact the timeline of migrating workloads from relational over to MongoDB? And then I’ve got a quick follow-up to Michael.
Dev Ittycheria: Sure. When we talk to customers, and remember, even at our IPO, we had a meaningful number of customers migrating off relational to MongoDB. So they tend to come in three categories of reasons why. First is that the data models become so brittle with the relational architecture that it’s very hard to build new features and be responsive to their customers. And so they just feel like their ability to innovate has slowed down. The second reason is that the system is just not scaling or performing given the increased number of users or the large amount of data that they have to process, that they realize that they have to get off a legacy platform. And the third reason is just the cost of the underlying platform and relative to the ROI that application is providing.
So typically falls in one of those three buckets. Sometimes customers may have all three or maybe two of the three that are driving that demand. And then there’s typically some compelling event, maybe there’s some milestones they want to hit, maybe there’s a renewal coming up with the incumbent vendor that’s driving them to potentially move off that vendor as quickly as possible. As I said, with relational migrator, there’s three parts to it. There’s mapping of the schema from a tabular, relational schema to a document-based schema in MongoDB. Then there’s actually moving the data, mapping to the new schema, and then there’s the rewriting of the application. And so we have done lots of those already pre-GenAI, and some customers take a — I want to rewrite everything.
