Tooey Courtemanche: So Brent, I hate to give you the same answer I gave Dylan but it’s very much in the same vein which is where you see these really strong portions of the construction economy. They are generally kind of making up for other sectors which maybe not be performing as well. So in aggregate, the overall construction volume isn’t increasing all that much. But you’re just reading a lot about these data centers. And by the way, I had the opportunity about a month ago to visit a bunch of data centers up in the Pacific Northwest. And when you’re flying in and you see these data centers from miles away because there are so many and they’re so big, you get a sense of how big they are. But it doesn’t create any sort of distortion in our business because our customers, that’s just part of their diversified portfolio.
As a matter of fact, I’m taking the leadership team to Madrid next — in 2 weeks and we’re going to go tour some more data centers. It’s fun to see because they’re big and they’re kind of exciting to view but I wouldn’t over-index on that. But I do want to say one thing. I don’t — I personally don’t believe that there’s any software company out there that builds more data centers or supports the build in more data centers than Procore technologies. And it’s something I am really, really proud of. And it’s an area where we have a tremendous fit and our brand is strong. And frankly, there’s not a — there’s no reason why we shouldn’t be on every data center getting built on the planet.
Brent Bracelin: Makes sense here. And then as a follow-up for Howard, I apologize. I’m actually on the street to New York, there’s still a lot of construction happening in New York. Howard, for you, of backlog, RPO and cRPO year-over-year growth was actually healthier than we had expected. Just trying to parse that out. And you talked about stability. It looks a little stronger than we thought. Was there some maybe early renewals that aided RPO this quarter that came out of next quarter that got pulled forward? Just trying to think through the commentary around renewals and the strength you saw in RPO and cRPO this quarter versus kind of what you expected?
Howard Fu: There was nothing extraordinary from that perspective in terms of nuances or anything specific that caused that. Q1 actually turned out the way that we expected. And in fact, Q1 — the way that Q1 turned out is actually consistent with our expectation of the back half of the year being stronger. And with that, you’re going to — we’re going to expect to see our cRPO growth continue to go down in Q2 before it levels off and turns around. And that’s consistent with the seasonality that we mentioned. So there’s nothing specific or nothing nuanced about Q1 that caused those deltas. It’s just in some of the noise that happens in any particular quarter.
Operator: The next question is from the line of DJ Hynes with Canaccord Genuity.
Unidentified Analyst: This is Ryan [ph] on for DJ. I just have a quick question. So I guess a few months ago, we spoke about contemplated, I guess, professional services build-out to kind of like cultivate and bring home these enterprise relationships and limit this Procore attributed churn. Have you guys put any more thought into that? I guess I’m just curious if you have any like internal or external metrics that you’re tracking that would kind of make that case more filling.
Howard Fu: Look, we continue to make sure that we invest in our professional services with the intent to make our customers more successful. And our shift towards that upmarket motion and enterprise is consistent with that shift. And so we continue to do that and we’ll continue to make progress there. There’s nothing extraordinary to give an update on. Professional services from a top line standpoint is still a very small part of our revenue but we still continue to make investments there to make our customers successful.
Unidentified Analyst: Okay. Great. And then just a quick follow-up. So we spoke about new labor demand is usually a pretty acute pain point in construction. To what extent do you think Copilot is going to alleviate these pressures? Because I think we all hear about AI has a really strong value prop for, I guess, a traditional knowledge workers. So I’m just kind of curious what kind of effects it will have on more like a boots on the ground hands-on environment?
Tooey Courtemanche: Yes, Ryan. Good question because, as I mentioned in the opening remarks, that was a topic that came up in our Enterprise Customer Advisory Board which was really like what is the impact of AI on construction. And it’s very — the consensus across — and remember, these are 30 of the largest owners GCs and specialty contractors around. And the consensus of across these folks who are pretty well versed in all of this was that this wasn’t really about taking jobs and eliminating jobs. It was about making people who have their jobs more effective at doing their job and getting them back to doing what they got into this industry to do which is to build and not to do double data entry and not to do searching through Excel spreadsheets and Word docs on some foreign drive system somewhere.
So it is a force multiplier, for sure and it seemed that way. And I’m reaping the benefits of it myself in our beta program. So I think it’s going to have a big impact on our industry but not necessarily — I don’t think we’re going to see it pouring the foundation anytime soon.
Operator: The next question is from the line of Brent Thill with Jefferies.
Brent Thill: Howard, Tooey kicked off talking about the good efficiency gains you’re seeing in the margin improvement. And I’m curious if you could just lay out, assuming we kind of stick in a tougher environment in the short term, how you’re going to lean on those efficiency gains as a lever? Where are you going to see those? How are you getting those? Can you give us just a little more color in terms of where the biggest opportunity is and how you’re getting that?
Howard Fu: Yes. Look, the efficiency gains has been the same as we’ve seen in prior quarters which said it’s really coming from across all the different functional areas. And in terms of what we’re investing in and how we’re investing, keep in mind that regardless of what happens, we still continue to invest in our product, technology and R&D organization to make sure that we make progress on our road map and to continue to bring value to our customers. In the more short and medium term, the levers that we pull are particularly around the go-to-market side of things in terms of how to flex based on the demand environment and then you’ll continue to see that. Specifically for Q1 and for the remainder of the year, what you’re seeing is that, remember, we’ve built flexibility into our plan to be able to have that flexibility to invest back into the business or take it back to margin, depending on what we’re seeing and what we’re comfortable with.
