Yogesh Gupta: Thank you so much.
Operator: Thank you. One moment for our next question. And that will come from the line of Ittai Kidron with Oppenheimer. Your line is open.
Ittai Kidron: Hi, guys. I just want to follow up on a couple of financial things, Anthony. First on the – on MarkLogic. Can you talk about how you’re going to incorporate them in ARR since they’re so lumpy? What is the financial exercise you’ll do to normalize that into an ARR number?
Anthony Folger: Yes. Sure, Ittai. I think we would expect that once the deal closes and we get to Q1, we would incorporate all of the ARR. So, we would effectively be able to provide
Yogesh Gupta: So, Ittai, let me try to repeat what Anthony was saying, just to see if – so you can hear it this time around. So, basically, as you know, when we complete – I mean, when we close the deal, then in the first reporting period which would be at the end of Q1, we basically take the historic ARR of that business and we do a pro forma across the history and current, and we use that going forward. Of course, for multi-year term licenses, we analyze those. Obviously, the maintenance becomes – or any other recurring revenues is annualized, of course. So, what we would expect to do is we would expect about $75 million increase to show in the ARR once the deal closes. And then we expect the ARR from MarkLogic to continue to grow. We have seen a steady growth in the ARR over the last three years, and we expect that trend to continue.
Ittai Kidron: Okay. And then last one for me, on the revenue guide for the year, when you take out MarkLogic from this exercise, and I assume that your guidance for ’23 includes already the $675 million to $685 million, does that include or does not include MarkLogic, just to be clear?
Anthony Folger: It’s included in that number.
Ittai Kidron: Includes? So, if you exclude your comments on MarkLogic from that number, you’re basically guiding a shortfall of about $20 million roughly plus, minus on the year. Can you talk about break that down a little bit more, say, as to the components of that, and what is your underlying macro assumption that you’ve taken into account in your guide?
Anthony Folger: No. We’re actually guiding, Ittai, if you were to take out $70 million, I think you’d be showing, and also if you factor in, say, I think $1.2 million in exchange rates that we mentioned, you’d be showing a little bit of growth at the midpoint. I mean, it would be slight, but growing a little bit. And I think from a macro perspective, that’s sort of leads to the consistency we talked about in terms of what we’re seeing in the demand environment.
Ittai Kidron: Okay. Very good. Thank you.
Operator: Thank you. I’m showing no further questions in the queue at this time. I would now like to turn the call back over to Mr. Yogesh Gupta for closing remarks.
Yogesh Gupta: Well, thank you, again, everyone, for joining for the call. And we look forward to speaking to you again soon. Thank you and have a good night.
Operator: Thank you all for participating. This concludes today’s conference call. You may now disconnect.
