Howard Wilson: Yes. And Rob, just to pick up on that because that actually ties in — Jen’s comments ties into your question around customers above $100,000. So, we saw a 10% growth in customers above $100,000, which is a little slower than what we’ve seen in prior quarters. And there were really two dynamics at play in this. The one is that we did see strong expansion growth and strong new acquisition in the enterprise and mid-market, which was positive in terms of helping customers matriculate into that space. But at the same time, we have seen some customers having to constrain their spending at renewal. And as a result of that, that has meant that we haven’t seen the same level of growth or expansion into that cohort. But when I look forward and particularly into Q4 and into next year, we’ve really laid the foundation for being able to improve our performance in the enterprise and mid-market.
Enterprise today is 60%. It’s approaching 60% of our ARR. This is a customer base where we have we see gross retention above 90%. And so it’s an area of focus for us, and that will contribute positively as we expand those customers into increasing the number within the above $100,000 cohort.
Tony Righetti: Next, we’re going to Canaccord Genuity with Kingsley Crane.
Kingsley Crane: Good to see everyone. Yes, good to see you. So a similar theme last quarter, we discussed how seat growth had traditionally created a nice catalyst for upsell. Now that you have more headwinds in seat growth, it’s now requiring some more strategic repositioning from the sales force. Just from a process standpoint, how do you feel like that’s going? And then how receptive have customers been to that?
Jennifer Tejada: Yes, it’s going well. I mean when we do a good job of positioning pricing and packaging for volume and growth, our customers don’t really think about feed-based pricing because they’re already bought into PagerDuty as their standard for real-time operations across either their engineering, IT or security organization. And I think we’re getting better and better at meeting customers where they are. I mean no question in a down market where you’re seeing less head count growth, for instance, seat-based pricing can be a headwind. But I think, we’re managing that and adapting to that quite well. And you see that in some of these strategic large expansion deals that are multiproduct where we’re getting beyond the fray sort of just licensing the estate, but actually instantiating ourselves as a platform for action.
Kingsley Crane: Okay. Yes, that makes a lot of sense. And then the second one would just be on CoPilot. It looks like a great packaging for a set of a few great products. But I just want to be clear, I mean, like do you have any initial thoughts on pricing and the contribution to revenue. Is there any overlap with AI Ops?
Jennifer Tejada: Yes. Remember that AI has been foundational in our platform for more than a decade. As you think about AIOps and how we help customers consolidate and correlate events automatically, how we automatically and intelligently orchestrate work to the right small few people instead of hundreds of people on a live call and even how we automate run books or how we are increasingly automating an entire resolution. Monetizing AI is not new to us, and there’s still a lot of opportunity just within the core platform from a monetization perspective, in particular, with our new AI cube that’s been out since April. From a generative AI perspective, our goal is to get input and make sure that we can deliver generative AI capabilities with the level of fidelity that our customers expect from a high resilience platform that they use when things are not going so well.
So we really want to make sure we’re managing noise effectively before we GA any of our features. And we’re also looking at generative AI as a way to engage users across all of the different feature sets in the platform. So engagement and usage is our first priority. And as we learn, we will start to surface some of the pricing and packaging for those products and services in the future.
Tony Righetti: Moving right along next to Craig Hallum, we have Chad Bennett. Chad, if you want to switch on and go ahead.
Chad Bennett: So just curious, I know you’ve talked about Howard kind of billings growth a quarter ahead the last few quarters at least. I’m just curious kind of how you’re thinking about seasonality of deferred into the fourth quarter here and just billings growth overall.
Howard Wilson: Yes, sure. So as you know, Chad, billings growth for us has fluctuated a lot from quarter-to-quarter, which is partly why we tend to focus more on the trading 12-month metric as a way for us to try and get some of the noise out of that. When we look into Q4, this is our biggest quarter from a renewals perspective. So a high volume of renewals take place in Q4. And the other thing that we are factoring in is just — the momentum that we’re seeing around doing these larger deals that are often multiyear deals, some of them was a metro upfront payment. Those are giving us a view on how we think about billings for this quarter and also the setup that, that gives us for next year.
Chad Bennett: Okay. But I mean, is it fair to say that probably there’s more pressure on billings in the fourth quarter on a year-over-year basis than third?
Howard Wilson: I think like from a comparison perspective, it tends to be — Q4 is a large quarter for us. And Q4 last year was a large quarter for us. So, there is from a compare perspective, that will be tougher.
