Gray Powell: All right. That’s really helpful — really helpful color. Congrats on the improved execution this quarter. Thanks.
Dave Gennarelli: All right. Next, let’s go to Jonathan Ho with William Blair.
Jonathan Ho: Can you maybe give us a little bit more color? As you start to think about this progress that you’ve made on the go-to-market and sales realignment improvements, maybe what were you most proud of in terms of accomplishments and maybe what is still a work-in-progress when it comes to that go-to-market side?
Todd McKinnon: I think the most impactful has been clarity of the message. At Oktane, we really had a — we started the process of clarifying the message, as you know, a few months ago, 4 or 5 months ago now. But we really had an opportunity to show it off at Oktane. And the clear message of this is Workforce Identity, this is Customer Identity, there are two clouds that are each best-in-class and they’re better together. That resonated really well not, only with the field organization, but also with customers and partners, everyone gets it. They understand the strategy. They understand that we’re — we are already by far the leading independent neutral identity platform. And this sets us up to really cement that lead and extend that lead over the long term.
And it translated into — it’s not just the impression from a conference, it translated into the really quantifiable metrics like the number of sales rapes that have actually done a Customer Identity Cloud deal is increasing the last three quarter sequentially, which is a really good sign. The lower attrition rate is a good sign. So, I think that’s the most impactful change. The thing that — when we look about our — talk about our outlook and being cautious, the big thing there Jonathan is that the more time and see a go-to-market person has, the more familiar they are with the products, the more they understand the customers’ problems and the value props, time and different at-bats in this process built strength and capability. So I think, what to improve is just give the great folks in go-to-market more time and at-bats.
It’s an amazing team — the more — now that we’ve given in this clarified positioning, something that was really I think — we put in the test spot before. We’ve clarified the positioning. Now they’re going to get the at-bats and build the muscle and be amazingly productive in the future.
Dave Gennarelli: Let’s go to Hamza Fodderwala at Morgan Stanley.
Hamza Fodderwala: Hey guys. Thanks for taking my question. And way to throw the kitchen sink on the guide. I wanted to talk a little bit about the profitability. So, you’re going to be growing high teens next year. It sounds like there’s still some capacity build that needs to take place because of the attrition this year. And there’s probably going to be a little bit of a drag on sales force productivity. So, I’m just curious if you could put a finer point on how you’re driving that incremental leverage in FY24?
Brett Tighe: Yes. Actually, I would say the capacity build is not the area I would focus on, Hamza. I would say it’s more about the productivity. It’s exactly what Todd was just talking about, getting those reps even more tenured and getting more productivity out of them, right? Because as you know, Hamza, you’ve been following us long enough, know that a year — a rep that’s been here for three years is far more productive than ones been here for 9 months, right? Both are — ramping more in our technical terms, but you’re getting — you’re getting a much more productive rep at that point. So that’s the one side, just from your pure sales and marketing perspective. And I think other areas that we’re focusing, obviously, the classic focus on productivity across the rest of the organization.
One of the key things — we’re still — like I said, we’re still early in our planning process, but one of the key goals we’re talking about next year is around automation, around improving the productivity of not just the field but like my team, the R&D team, how do we make everyone a little bit more productive, and that’s one of the ways we see the margins improving over time.
