Sidney Ho: I want to ask about the, your visibility beyond this quarter, I am not asking specific for financial guidance for calendar ’23. But previously, you talk about having good visibility and then pipeline the second half of the year, and that there are some delays, but not known permanent pause. I also think you mentioned you could still be on one quarter. So how would you characterize the pipeline in the first half of next year at this point? And maybe comment on demand trends between the Enterprise versus Commercial customers? Thanks.
Charlie Giancarlo: Sure. Generally, our ability to have visibility in the pipeline extends about two quarters, so current quarter plus one current quarter plus two. So you’re asking and that would extend to through Q1 of next year, not our Q1 that is of next year. And generally, we don’t necessarily have visibility three quarters out just to be really clear. So I can’t really speak about the first half from a visibility perspective. What I would say is visibility into our Q4 the remainder of this year and visibility into Q1 of next year remains quite good. So, that will form if you will, that will go into forming our view of next fiscal year. We’re in the middle of planning right now. So difficult to give you any further insight into that. But as I said that our visibility into Q plus 1, Q plus 2 remains fairly good.
Operator: Our next question comes from the line of David Vogt with UBS. David, your line is now open.
David Vogt: Maybe just a follow-up to Kevan’s comments about preliminary margins next year and Charlie’s comments about growth being well into the double-digits next year. I know you mentioned Kevan, that there’s going to be some items that are not going to repeat this year, excuse me in fiscal ’23 versus this year. But just quickly, kind of doing top back of the envelope math, they would suggest that you’re sort of incremental margins next year are going to be under pretty material pressure. If your margins are going to come in at 14% to 15%, can you kind of walk us through what’s really the incremental spend categories or spend that you’re looking at next year given where you are and sort of where the long term operating model should shake out over the medium term?
Kevan Krysler: Yes, I’d appreciate that David. Look, we’re quite pleased with the overall margin expansion that we’ve seen this year. And really key drivers of that being are strong revenue growth and product gross margins and subscription services gross margins. And I’ve talked about the fact that we did have some tailwinds. And we’re thinking that it’s approximately 1.5, 1.5 points to our operating profits this year. And really, it’s kind of in three areas. We’ve talked about, as we were exiting last year, early in first half, we had higher attrition levels. And that really continued through Q1 and Q2. So, obviously, there’s a benefit a pickup there. And then, there was slower than planned hiring during the first half as well.
Now, we’ve made really good progress as you’ve seen on our hiring of talent, particularly in Q2 and this quarter. And obviously, that that’s going to play into to next year in terms of how we’re thinking about it. But then, in addition to that, we are planning for an increase in travel costs slightly. For example, we’re doing our first in person sales kickoff in the New Year. We haven’t had that in two years, so years or three years. So obviously, we’re considering that as we’re looking at our operating margin and profits for next year.
Operator: Our next question comes from the line of Mehdi Hosseini with Susquehanna. Mehdi, your line is now open.
Mehdi Hosseini: Just a quick follow-up for the Charlie and the team. You have done a good job of expanding margin very diligently, keeping the OpEx very reasonable, and realizing margin expansion. I just want to get an update on the strategy looking into the next one to two year. Especially into next calendar year perhaps as enterprise budgets are more constrained. How is that strategy going to evolve? Are you going to spend more to capture more dollars of revenue? Or the strategies to remain focused on having more leverage in a P&L? And I’m not asking for a guide, but it would just be helpful if you could give us an update our strategy changes into a rather challenging macro environment?
Charlie Giancarlo: Absolutely, and it’s a very fair question, Mehdi. So, we are consistently focused on revenue growth. That being said, we never like to go back on margin and largely because it’s about operational discipline. About being a high performing company with good internal practices. We should be able to grow at an optimal rate, while at the same time being diligent in terms of delivering good operating margin. Now, that being said, as we go into next year, we’ve increased a lot on our headcount already, and we’ll be seeing the full impact of that next year. We want to continue investing in our quota bearing heads. So we’ll continue making that investment. We want to continue obviously in developing good core product, but we’re going to be very diligent and focused, and we also want to be just thoughtful about potential pitfalls in the economy as we go forward.
So, we want to stay agile as well, in terms of, our ability to be flexible in the way we spend money or how much money we spend, given that the economy is uncertain. So, we are going to prioritize revenue growth, but at the same time, we want to make sure we can deliver, good results on the bottom line.
Operator: Our next question comes from a line of Nehal Chokshi with Northland Capital Markets. Nehal, your line is now open.
Nehal Chokshi: Provided just very generic color regarding the contribution from Meta’s research SuperCluster, can you give a little bit more detail around that? And more importantly, trying to get a sense as far as what is the revenue growth excluding Meta?
Charlie Giancarlo: You’re right. Well, let me give it a start and then Kevan will give you and fill in some of the details. So first of all, we did ship the vast majority of the second phase of our Meta program this past quarter. We were very pleased to be able to do so. The relationship remains very strong and we look forward to continuing to build good strength and good business with Meta as we go forward. So, Kevan, I know there’s a lot behind this quarter so perhaps you can provide some additions to this.
