Howard Fu: Hi Dan, this is Howard. It’s good to meet you here. The first thing is, when we issued our framework at Investor Day, we still have about two weeks to three weeks left in the quarter. And those two weeks to three weeks at the end of the quarter typically have a fairly outsized impact on how the full quarter performs. And frankly, we were surprised. I was surprised at the downside in terms of what we expected to close in those last two weeks. There were a number of deals, some of them are fairly large. And frankly, we expected to close in those two weeks to three weeks that didn’t close, and that had an impact on our Q3 performance. With respect to your comment about when did we know and when do we start to see this trend, keep in mind that we have always tried to be as transparent as possible in terms of what we have seen and to communicate that to everybody.
This starts back all the way back to mid-2022 when we started to take a much more cautious approach in our guidance just in case something like this happens. And then going back to Q1 of this year, we started to share some insights about the business specifically about the economy and the customer behavior that may not have shown that would not have shown up in our financial results, and we have continued to provide updates to that dichotomy and also about the sentiment and the cautiousness in our customer base. So, this wasn’t something that kind of was just strong on this, and it’s something that we did see progress from Q1 to Q2 and Q3. Regarding international versus U.S., the macroeconomic headwinds in the tough demand environment is not something that’s domestically based.
It’s both U.S. and international and non-U.S. We don’t right now see any type of diversion. But as we get more information and we see more signals, we will communicate what we see to you.
Daniel Jester: Great. That’s really helpful. Thank you. And then just on the expansion opportunity, it sounds like incremental focus there. Can you kind of share any details about sort of incrementally what you may be doing differently over the next year to supplement the opportunity there? Thank you.
Howard Fu: Yes. So, I think as with any type of opportunities that we look at, we are constantly adjusting to where we see strength and where we see strengthen us immediately. So, far in terms of what we have seen some of the impacts is we have seen more of the impacts in the lower end of the market in terms of where the macroeconomic environment is having a bigger impact. Now, that’s not to say it’s only focused there. It’s definitely throughout all the different segments and all the different stakeholders. And when we see that, what we have seen is that in the enterprise space in the upper end of the market, those customers have been more steep. They have been more well prepared and more well prepared to be able to weather the macroeconomic conditions. Now having said that, those conditions in the tough demand environment is still being felt there, but that’s where we believe that we have more stability.
Daniel Jester: Thank you very much.
Operator: Our next question comes from Dylan Becker with William Blair. Please proceed.
Dylan Becker: Hi gentlemen. Maybe sticking with that same theme around kind of the enterprise stability, Tooey, you called out the opportunity for retooling and kind of strengthening around a potential cyclical recovery at some point in time. As we think about the bifurcation kind of between enterprise and SMB, how you maybe expect that incremental kind of projects, share gain fueling that Procore network of kind of that incentive of collaborator conversion where more project stakeholders need to be on the ecosystem around that recovery to gain and capture share of more of that scope of work over time.
