Trevor Walsh: Great. Thank you, both, so much. Appreciate it.
Ashley Fieglein Johnson: Thank you.
Operator: Our next question comes from Michael Latimore with Northland. Please proceed.
Michael Latimore: Great. Yes. Thanks very much. What are you thinking about in terms of the NDR number for the fourth quarter?
Ashley Fieglein Johnson: Yeah. Obviously, that’s driven by the timing of when some of these larger expansions land that will impact where we end up landing on that number for the year. As I said in the prepared remarks, we ticked up quarter-over-quarter and I feel very good about where we are on overall retention rates. It’s just a matter of that NDR ultimately depends on some of the larger expansion opportunities and the timing of when they come in.
Michael Latimore: Okay. And then, you seem positive on the U.S. government opportunities in the pipeline, can you mention a use case or two that might be in the mixer?
Will Marshall: Yeah, actually there’s several. I mean, so we’ve got multiple opportunities both on the civil government side expansions and new partnerships there and on the defense and intelligence side and it’s also both expansion and new parties. If you get that, the US government is not a monolith. There’s really multiple agencies in both sectors that need our data. We also — and in addition seeing a lot — so there’s a lot of pull from them mainstream — mainstay products, but we’re also seeing a lot of new and heightened interest both in the U.S. government and international governments for AI on top of our PlanetScope Imagery that enables you just search and scan large areas for new threats or emerging changes and that is proving to be a very strong pull as well and that’s something that’s only be possible very lately because of the large language models on top of PlanetScope imagery, and so that’s providing an extra pull as well, but, — yeah, the use cases vary a lot by the different agencies, I can’t speak to all of them right a second, but it’s strong pull in both sides.
Michael Latimore: Okay. Great. Thanks so much.
Operator: Your next question comes from Ryan Koontz with Needham and Company. Please proceed.
Ryan Koontz: Thanks for the question. Start with Ashley, can you unpack the kind of step down in commercial we’re seeing here? You mentioned the legacy contract churn there, is that the prime reason here behind the step-down? There are other things going on and is this — does this quarter mark the kind of the end of that impact or is it going to continue to linger on for future quarters on that impact? Thanks.
Ashley Fieglein Johnson: Yeah. Thanks, Ryan. The primary driver on the revenue year-over-year comparison commercial is that legacy contract that came to an end in Q1 really and that was just a small tail, so really — as you pointed out, Q4 is the end of that year-over-year compare headwind. We did see softness in some of the renewals a year ago. We talked about in the commercial market, that also was a secondary headwind coming into the year and commercial is continuing to see headwinds in terms of expanding those businesses. So we do anticipate a lot of the growth in the next year coming from the commercial — government sector. But that said, we still are very big believers in the opportunity in the commercial space and just view it as an opportunity that we will be pursuing with our partner ecosystem.
Ryan Koontz: Got it. That’s great. And just a couple of quick product questions for Will on the Forest Carbon product, can you kind of walk us through that business model and how you productize that for these sorts of customers, that will be really helpful? Thanks.
Will Marshall: Yeah, absolutely. So that’s one of our Planetary Variables for everyone’s benefit the — basically enables us to measure — I mean, we’ve been doing deforestation monitoring and helping countries with that for a long time, but this actually gets at quantifying the amount of carbon stock in forest and initially at 30-meter level, and next year, we’ll be launching a 3-meter level, which is almost an individual tree level, very excited by that. We’ve seen a lot of interest. The hope is that this will help underpin carbon markets. We’ve been very pleasantly surprised by the amount of initial demand amongst both the sort of regulation side of this. So the people that are checking the math, if you like, on everyone’s carbon trading as well as the marketplaces that are trying to match-make between buyers and sellers of carbon, which of course both sides want to check the math as well and so on both fronts of that we’ve seen demand and we were — of course — I mentioned in my prepared remarks that our first customer there, BeZero Carbon, which is the marketplace and we are very proud to be seeing that interest so early in that new product.
Sorry, BeZero is a carbon rating agency, I should say, it’s in the form category.
Ryan Koontz: Got it. Really helpful. Thanks so much. That’s all I have.
Will Marshall: No problem.
Ashley Fieglein Johnson: Thank you.
Operator: Your next question comes from Noah Poponak with Goldman Sachs. Please proceed.
Noah Poponak: Hello, everyone. With the expanding Defense and Intel and civil government opportunity set that you’re referencing, are there contract names you can cite that we can follow or is it some combination of small or classified or extension or reprogrammed dollars or something that we can follow?
Will Marshall: I mean, most of them are public procurement mechanisms you can follow. I would just say that it takes a lot to follow. I mean, there’s a lot of different agencies that you have to track, but no, mostly public procurement. There is no huge one outstanding to just point out like EOCL is of course our mainstay contract with the NRO and there is opportunities for expansion there and you can watch that, but there’s no big other ones to just pull out and identify for you right the second, but we certainly continue to monitor all of those, of course, that’s our job.
Noah Poponak: Will, can you mean the one or two largest even understanding it’s maybe a pool of with no single one that’s much larger than the others, but whether its size or just what’s most exciting to you because of what it means for your future, just something we could track I think would be helpful.
