Stefan Schulz: No, it doesn’t mean that. What we’ve done, Nehal is in order for us to drive growth rate for the full-year, we’ve got not only leverage the billings that you talked about that we ended 2022 with, but we’ve got to also see that executed all the way through 2023. And as we typically do when we set guidance at the beginning of the year, we’re really only factoring in what we have near-term visibility to think next six months, and we don’t factor in as much around what we see around the second half. So as is typically the case, I would tell you that we’ve factored that in so that we have more of a chance to have upside than say, downside, but we are being cautious because of what we see in the marketplace. We do also have a little bit of a currency impact.
I mentioned earlier about a 1 to 2 percentage point €“ somewhere between 1 and 2 percentage points of an impact on currency, which is impacting us a little bit. And so those are some of the things that are driving that. But let me put it this way, we’re executing to a plan and an idea that could do better than that.
Nehal Chokshi: Okay. And then you have the Q1 guide for subscription revenue growth of 11%, but full-year, 14%. So doesn’t that imply accelerating subscription revenue growth as we go through calendar 2023?
Stefan Schulz: It does. Yes, it does. But that’s a different factor because what we’re really talking about there is timing of when those bookings come online. So from a revenue recognition standpoint. So as you probably know, there is a good portion of our business that €“ where we get the bookings, but we don’t immediately get the revenue recognition. That revenue recognition has delayed starts. So we have lined up revenue that’s already been booked to your point, that’s coming online from a growth rate perspective, and that’s why you’re seeing that factor in.
Nehal Chokshi: Got it. Okay. And then I always, I mean, it’s always great to see the significantly improved profitability that you’re projecting, but I always get concerned that, that is going to come at the expense of future revenue growth, yet you’re talking about accelerating your growth targets. So can you help me reconcile what you presented here?
Stefan Schulz: Well, from a growth rate perspective, we feel like we are continuing to invest in the areas that are going to help us drive growth. Now, when we looked at some cost-cutting areas and where we cut some costs, we did cut areas in what I would call lower priority areas. And so yes, that can have an impact on the overall growth rate. I don’t want to mislead you that area, but it’s not going to have a huge impact because the areas that we are really locked in on what we want to accomplish, both in the travel and B2B areas are areas that we’re still continuing to invest in. As a matter of fact, I would tell you that we’ve actually allocated a few more dollars in some of those areas as we went through these exercises to ensure that the things that we really want to focus on are those areas that are going to drive the revenue growth.
So yes, there is a phenomenal effect because of some of the things that we’ve stopped doing but our plan is to more than offset that or at least offset a good chunk of that with the focus and execution in those higher priority areas.
Nehal Chokshi: Okay. And then as far as the OpEx invoice we should be thinking about, the $45 million for the December quarter, is that the go-forward rate that we should be expecting in the March quarter and going forward from there?
Stefan Schulz: I’m sorry, Nehal, I didn’t understand your question, sorry?
Nehal Chokshi: I calculate that you had a $45 million OpEx for the December quarter. So is that the baseline level that we should be looking for going forward?
