Jacob Roberge: Hi, how are you? Just wanted to follow-up on that renewal question from Andrew. I know you called out some larger customer down sales last quarter and Q3. Did that stabilize in Q4 and — kind of at the start of Q1, or were those still present throughout the quarter?
Howard Wilson: Yeah. We definitely saw an improvement, Jacob, in Q4. And that was really as a result of some of the measures we put in place a couple of quarters ago, which were really about engaging with customers earlier in the renewal cycle and ensuring that we were focused more particularly on how they were using the product and how they were getting value. So, those changes that we made led to us being able to improve our gross retention in Q4, which is, in fact, our biggest renewals quarter. And so, those — obviously, those changes are ongoing. It’s not something that now we’re done. We’re going to continue with that program to ensure that we can sustain high levels of gross retention.
Jacob Roberge: Okay, helpful. And then, great to hear that net new ARR was the best in a few quarters. Can you talk about what drove that performance? Was that mainly just stabilization in the core Incident Management business, or was that more driven by some of those larger platform deals that you called out during the quarter?
Jennifer Tejada: It was definitely driven by an improvement in cross-selling and upselling. So, I think we mentioned earlier that now 62% of our ARR comes from customers with two or more products. That’s a 4 percentage point improvement over the previous quarter. And I see that as early momentum. When you look at some of these larger deals that we’ve been able to close over the last quarter, we feel confident that that is a trend that should continue over time, particularly as we’ve done a better job, I think, than we had in the past of driving awareness around what the Operations Cloud actually is, what it can do, and why bringing those four pillars together in an integrated platform is greater than the sum of the parts. And we’ve also invested in branding around this, and invested in enablement and helping our sales reps make that transition from that more transactional, functional and technical sale to a technical individual or mid-level manager to more of a business centric, value-driven conversation with a CIO and a CTO.
And one other thing that I noticed is that, the technology leaders that we’re working with in the largest companies of the world are more technical than they used to be. So, we deal with a CIO at a large investment bank who actually came out of a cloud-based business as opposed to somebody who came out of procurement or program management business, and that is a trend that I like seeing in the customer base.
Jacob Roberge: Very helpful. Thank you.
Howard Wilson: And I think I’d just add to that, Jacob. That 62% of our ARR coming from customers with more than two products, that was an improvement from 58% a year ago. And the way that, that shows up is that when we look at the net new ARR within quarter, we’re seeing a much larger contribution coming from products outside of Incident Management to the extent that now we’re seeing this dynamic as customers adopt the operations cloud where the Incident Management portion is smaller than the portion that’s coming from the AIOps, Process Automation or CSR space.
Tony Righetti: Great, and thank you. From BofA Securities, and for Koji Ikeda, I believe. Let me go ahead and bring you on screen.
Howard Wilson: I think you might be on mute.
Tony Righetti: Oh, is your headset muted? It looks like Zoom has you unmuted.
Jennifer Tejada: Nope. No audio.
Tony Righetti: You can try unplugging it and plugging it back in maybe? Sorry for the trouble. We want to hear from you.
Jennifer Tejada: You could mime the question.
Tony Righetti: Sorry. We’re still unable to hear you. Looks like they can hear us.
Jennifer Tejada: Yeah.
Tony Righetti: Well, Jennifer, what do you say? Should we close it up?
Jennifer Tejada: Yeah. I mean, I’m happy to take a question in chat or we can close it out. Koji, are you — I’m sorry. We can’t hear you.
Tony Righetti: Okay. Jen, over to you for the final comments. Thank you so much.
Jennifer Tejada: Well, look, I just want to thank everybody for joining us today. I am really proud of the operational resilience our teams continue to demonstrate, and I’m encouraged by the stability and the momentum emerging from our enterprise focus. More than anything, I appreciate the loyalty and our partners and the partnership our customers and our users have demonstrated over the last year. And we look forward to building on our long-term vision to revolutionize operations. Thank you very much for joining us today.
