And in Q1, you saw most of that poured back into the margin profile. But even with our guide, Brett, for the year and for Q2, we still have room to continue to have that flexibility to invest back into the business.
Operator: The next question is from the line of Ken Wong with Oppenheimer.
Ken Wong: The first one for you, Howard and we’re probably kind of splitting hairs here. But when thinking about that cRPO commentary, I think last quarter, it was kind of assumed that it would rise in the second half. And I think this time around, we’ve got kind of stabilized in Q3 and then kind of improve in Q4. I guess, would you characterize kind of how you’re thinking about cRPO going forward is similar to 3 months ago? Or has there been any kind of adjustment in kind of the trough and rebound?
Howard Fu: Our perspective really hasn’t changed in terms of what that trajectory is going to look like. Still H2 stronger than H1 from a booking standpoint and how that’s going to flow through to cRPO is a further drop in growth in Q2 and then stabilization. Now remember, having said that, Q3 and Q4 are our biggest quarters. So we’ve got some ways to go to execute against the back half of the year. But particularly with our results in Q1 in the renewal base, that actually is reinforcing our perspective and our assumption that, that will happen at this point. So nothing has really changed, Ken, over — from 90 days ago.
Ken Wong: Got it. Okay. Perfect. And then, Tooey, just wanted to maybe pick your brain on the enterprise side. I mean just looking at the metrics, total RPO is a lot better, long-term RPO is a lot better. And I know you guys are still cautious on the environment. But would you characterize kind of the — what you guys are seeing at enterprise as being maybe a little more upbeat than how you were thinking 3 months ago?
Tooey Courtemanche: Yes. It was interesting. So Ken, when I had our Executive Customer Advisory Board here, I asked the same question. And so the first question I asked them was like how do you all feel about the future? And interestingly enough, their optimism level had — was really high for the long term. But in the short term, they realized that there are macro headwinds and there were challenges that they had to face. So it was almost the exact same story that they’ve been telling us over time. There was a little bit more optimism over the long run which came out in those calls. Backlogs being big and getting bigger. So the best way to characterize it is they’re facing the challenges of a tough economic environment right now but they’re really excited about the pent-up demand for the future and how their backlogs are shaping up.
Operator: The next question is from the line of Aaron Kimson with Citizens JMP.
Aaron Kimson: Just going back to the operating margin guidance, I’d like a little more color there. So you did a 4% risk a month into Q1, just did 13.8% adjusted operating margin and guided 9% to 10% of the year. I know you talked about the flexibility stuff in there, Howard. Can you talk about where that investment may go and how much conservatism is in that number?
Howard Fu: Where the investment would go, I think I’ve already talked about a little bit. In all cases, we continue to invest in our R&D organization and because we want to make sure that we continue to make progress in that long-term product road map. In the short term, we will flex and invest in our go-to-market as we see fit. Specifically, as it relates to the workforce reduction that we did, about 4%, it was roughly about a $4 million impact or so in Q1.
Aaron Kimson: Great. And then just as a follow-up. So Larry Stack is now a full quarter in as your CRO. What changes [indiscernible] to the go-to-market motion thus far?
Tooey Courtemanche: Well, Aaron, by the way, I think he might argue with you. I don’t think — I think he’s almost a full quarter in. But — so Larry has been on the road. And really the first several months has been — he’s been all over the earth, visiting our offices and visiting our customers and visiting job sites and just really steeping himself in everything that he needs to know to do his job and just doing a wonderful job at that. I’m really enjoying working with him. But still early days for him. I want to give him a little chance to get settled and learn where the cafeteria is. But in general, he’s really a great person to work with and I’m enjoying every minute of it.
Operator: The next question is from the line of Alexei Gogolev with JPMorgan. The next question is from the line of Jason Celino with KeyBanc.
Unidentified Analyst: This is Devin [ph] on for Jason today. I want to ask about Procore Pay. I’m encouraged to hear that now you guys have around 100 customers adopting it. I know, Tooey, in the remarks, you kind of talked about 1 customer adopting Procore Pay. Could you just dive into that a little bit more, what ultimately drove them to go to Procore instead? And with Procore Pay now as one of your product suite, I mean, does that help your win rate as you move up market?
Tooey Courtemanche: So Alberici is the one that you’re referring to. It’s actually been a customer for 5 years and they have adopted many of our products. And they were well positioned to become a Procore pay customer because they were already running our financials product as well as our invoicing and our ERP connector. So they were very well primed and they knew what the benefits of having all of that in place. And then tacking on Procore Pay, we’re going to be — was going to deliver some tremendous value. And maybe if you come to Groundbreak, you can ask them directly as to their opinion on all this. But I’ll say, they’ve been nothing but great partners. And there’s a lot of customers that are really excited about Procore Pay.
But I do always like to caution people, it does take time to get these accounts fully online because they’re not going to bring a job online that’s halfway done because it wouldn’t make sense to start paying people differently during the middle of the job. And the way construction companies run is, new jobs come online every month or so. So it takes a bit of time to get these folks ramped up. But the good news is that it’s a very solid product and it’s been very well received. And we’re just loving the feedback we’re getting from the market.
