Chad Bennett: Got it. And then maybe just in terms of what you indicated on free cash flow margins being I think a couple hundred points, couple hundred basis points ahead of op margin. So would that imply that billings growth for the year should exceed revenue growth or is there something else that’s providing that delta there?
Howard Wilson: Yes. So just to be clear, that’s for the full-year that I’m seeing it because it’ll move, it’ll flex throughout the year as it does. I guess the way that we haven’t provided specific guidance on billings for the full-year, we’ve provided guidance for Q1. And what I would always point people to is if you look at the trend, the way in which our billings tends to follow our revenue guide over time, you’d expect to see that similar mechanic play out through this next year.
Chad Bennett: Okay. Thanks much for taking my questions.
Howard Wilson: Thanks, Chad.
Operator: Thank you. Next, moving over to Matt Stotler with William Blair. Matt, please go ahead.
Matthew Stotler: Hey, Jen. Hey, Howard. Good to see you both.
Howard Wilson: Hey, Matt.
Jennifer Tejada: Good to see you too.
Matthew Stotler: Thanks for the questions. I guess maybe first on the partner ecosystem. Let’s just get an update on partner contribution at this point. How those relationships are playing out, kind of on the broader timeline, ramping those up, but also considering the near-term macro? Obviously, ServiceNow is relatively new. You mentioned AWS recently. We’ve got a number of other pretty solid partners. So I’d love to get a broad update there.
Jennifer Tejada: Sure. I mean, partners continue to be an important and emerging growth factor for us from a channels perspective. AWS from a product standpoint €“ AWS has really stepped up from a product standpoint with us and where we’ve seen a lot of benefit is through the marketplace where customers in a constrained budget environment are able to deploy AWS prepaid spend to retire PagerDuty licenses. So that has helped a lot of our customers continue to invest in productivity and automation to reduce their overall infrastructure footprint. Julia Fare, who’s relatively new to the business is looking at some interesting new partnerships from a regional perspective too to augment the opportunity that we have in regions where we don’t have feet on the street.
We’ve seen some encouraging things recently in Japan where we closed a deal through a partner in Japan in the financial services sector. And that’s a very new market for us, a market where having partners on the ground is really important. And so we’re encouraged by that. But the vast majority of our ARR revenue still comes from our direct go-to-market organization and our product-led growth model. I think some of the things that I’m really encouraged about are, even through our direct salesforce, who’s really embracing the Operations Cloud and getting better and better at selling not just the vision, but the near-term opportunity there, we’ve seen our largest customer cohort continue to expand with us. So customers spending over a 100K grew 27% in the quarter, and not a single one of our customers is sold out.
We still have a lot of TAM to go after within those customer bases, whether it’s €“ within those customers, whether it’s seat-based or it is use case-based or functional or product specific. I think in the future, partners could be helpful in helping our customers with the transformation, like how are they driving the changes necessary to become more productive. How are they improving their workflows and their processes? How are they leveraging PagerDuty to the full extent? So that’s exciting, but something that still is out in front of us.
Matthew Stotler: Got it. That’s helpful. And then the comment on Japan is a good segue into the second question here on just the international markets, right? Pretty consistent as a percentage of revenue. We would love to maybe just double click on what you’re seeing there both in Q4, obviously, early in fiscal 2024. And then as you think about what’s embedded in guidance outside of North America, we’d love to get some color there as well.
