Jennifer Tejada: Well, thank you for the question. We’ve long seen a lot of strength in SLED in the state and local government and education where those customers have been present in our mid-market segment for quite some time, and we’ve worked with a number of federal customers over the past years, and this is something that they have been looking for. And it’s also, I think, an important requirement for some of our large commercial customers for us to be able to support them where they have FedRAMP requirements. So this has really been driven by the voice of the customer, but I think it opens up a large opportunity in the U.S. federal government, which we think is a large and growing and sort of less cyclical market, some somewhat less, I guess, what’s the word, somewhat less impacted by the economic environment and yet very immature as it relates to incident response and incident management.
So — and we think there’s a lot of greenfield opportunity to be had there, and with the work that the team has done to get us to the certification that we’ve gotten so far within FedRAMP, I think that puts us in a very good position to start to have those conversations and build demand in that market.
Unidentified Participant: Great. Thanks. And maybe one more on your — on the focus on multiproduct customers. Could you double-click on maybe the KPIs of that cohort in comparison to the overall business in terms of churn, deal sizes there?
Jennifer Tejada: Howard, do you want to go ahead? I think we’ve shared in the past percentage of ARR for customers with more than two products?
Howard Wilson: Yeah. So we haven’t shared anything recently on that topic. But at the end of the past fiscal year, part one of our regular disclosures is the percentage of ARR coming from customers with two or more products. It was as of the end of past fiscal year, that was 58%. We’ve seen a modest increase in that number as we continue to drive the adoption of the operations cloud as customers are taking more of that product. I think a few of the characteristics that we are seeing is that the value that customers get from PagerDuty increases as they use more of the operations card. And that leads to a more highly retentive nature. So we see the highest dollar-based net retention in the enterprise segment. And those tend to be the companies where the risk of failure and the impact of failure is far larger.
And so for them being able to use both the intelligence driven from our AR solution, along with the orchestration capabilities of our incident response platform together with the process automation and workflow automation means that they’re able to go all the way from detection to order remediation, and that is unique about PagerDuty. That’s our competitive differentiator that we are the only platform that can enable those capabilities. So we’re empowering these customers to be able to manage the most critical aspects of their business.
Jennifer Tejada: The other thing I’d just add there is through a very consistent track record for integration — or sorry, innovation, both in and around incident response, but then into adjacent areas like AI Ops and process automation, where we’ve integrated that into the UI and workflow and made it easy for our customers to both discover new products and services, but also get value from them almost immediately as opposed to needing to invest in systems integrators to build integrations through our ecosystem of over 700 integrations it’s very fast, and the total cost of ownership of the Operations Cloud platform is much lower than some of the more traditional legacy ticketing environments. This is super important as our customers are trying to keep pace with their end customers who are moving at the speed of digital, who believe everything should be perfect in an instance who lower cost to change or lower barriers to entry, to move to another competitor.
