And so we are seeing good balance and that’s ultimately what’s important to us. On the conservatism in the FY €˜24 guide comment that was made in the shareholder letter and the prepared remarks. Really, what I am saying is if you go back to like FY €˜23, we initially guided 30% to 32% revenue growth and we ultimately finished that 52% growth. So that entailed beats of 8%, 7%, 9%, 9% in Q1, Q2, Q3 and Q4, what we are seeing for FY €˜24 is we are starting the guidance at 28% to 30%. We will not have those same level of beats in FY €˜24. So, it is less conservative than that initial FY €˜23 guide. There is a lot of obviously macro uncertainty. If we see a lot of those headwinds, we won’t need to reduce our guidance, that is why we call it de-risked, we do not think we will go below 20% to 30%.
If we don’t see those headwinds, we will have the opportunity to move that guidance up throughout the year, similar to what we did in FY €˜23 but we do not expect the same magnitude of beats. And so that’s really the point that I was trying to drive home, more in that kind of low to mid single-digit revenue beats on a quarterly basis if we do not see any sort of macro uncertainty.
Peter Burkly: Makes sense. Thanks, Dom.
Operator: Our next question comes from David Unger at Wells Fargo followed by Alexei Gogolev at JPMorgan.
David Unger: Hi, can you hear me okay?
Sanjit Biswas: Yes, we can hear you.
David Unger: Okay, thanks. Just couple for me. Can we just talk about the competitive environment, any changes you are seeing over the past year? And then just looking ahead to the long-term with efficiency gains, just which line do you think could be the most meaningful opportunity for you for the long-term? Thank you.
Sanjit Biswas: So, David, I will take the competitive question. I would say the competitive environment remains pretty consistent with what we have seen. Most of our customers are familiar with the number of the legacy incumbents that have been in this marketplace for some time. They offer point solutions products that either just do GPS tracking or just do driver safety or €“ and so on. And we are differentiating ourselves by being a modern platform, a platform where the majority of our customers now are using multiple apps, which is exciting to see. And it’s also €“ we are differentiated in the sense that we are open in the number of integrations that we offer, which is now up over 220. So just a kind of quick summary there is I would say the competitive environment remains very consistent with what we saw in previous years.
Dominic Phillips: And I will take the second question kind of on the leverage point. I would say again, gross margins we think longer term can be in the mid-70s, I think through the IPO and the long-term model we had 74% to 76%. So, that’s where we likely see that plateau out. I think that most of the €“ again the leverage in the business is really going to come from OpEx. Sales and marketing is our largest area of spend as more and more of our base renews the cost of sale on renewal is like it is for most subscription businesses is significantly lower. And so we will get a lot of natural leverage out of that. R&D is an area. I don’t expect much leverage there in FY €˜24 a lot of investments to make there. And then G&A is another area where we will get more and more leverage as we scale. Obviously, as a first year public company, there was an inflection in public company costs. I don’t expect those costs to grow at the same rate as revenue in future periods.
David Unger: Excellent. Congratulations. Thank you.
Operator: Our next question comes from Alexei of JPMorgan followed by Dan Jester at BMO.
Alexei Gogolev: Thank you, Mike. Can you hear me, okay?
