Sanjit Biswas: If I can add a little bit of customer perspective also. I would say the Video-Based Safety application where we are in the vehicle, is, relatively speaking, underpenetrated. This is not a industry segment that has adopted the legacy products. So, they’re seeing value really for the first time. So, they’re very excited about it. And many customers have shared with me that a lot of the risk actually occurs when they’re driving around, it’s when they’re driving to and from the jobs site, when they’re driving over the road. So, while it’s not typically considered a Telematics or Video-Based Safety use case, construction is an exciting industry where we can solve a lot of problems for the customer.
Derrick Wood: Awesome. Thanks.
Mike Chang: The next question comes from Matt Pfau with William Blair, followed by Junaid with Truist.
Matt Pfau: Great. Congrats on the results, and thanks for taking my questions. First, just wanted to better understand within those customers that are doing $1 million-plus in ARR, what is the remaining opportunity there? Is there the potential to get a good portion of these customers that $5 million-plus, $10 million-plus in ARR? Are they sort of at the point of being fully penetrated?
Dominic Phillips: Definitely not fully penetrated. Again, I would just go back to the customer that is now our largest customer overall, they’ve done 20 expansions since 2018. And so, I think that expansion opportunity, whether it’s cross-sells of some of these newer products or more phased rollout of their existing products, gives us a lot of opportunity to grow our overall net new ACV within some of these largest accounts. I think within our $1 million-plus customers, they can be many multiples the size that they are today on average.
Matt Pfau: Got it. And sort of a follow-up on a previous question. Historically, your split-in net new ARR has been roughly even between new customers and existing customers move around a bit quarter-to-quarter. But as you land larger and larger with new customers on the initial sale, do you expect any material shift in that split longer term?
Dominic Phillips: I don’t know how it’s going to play out. It’s interesting, because we don’t incentivize our sales organization to sell new versus expansions, they retire quota on net new ACV. And they’re clearly doing a pretty balanced job of landing new logos and expanding existing customers. I think if we started to see it skew one way more than the other, we could potentially consider that, but it’s happening exactly. We like it to be balanced. We need more new logos today that we can expand in the future. And obviously, we want to expand wallet share within our existing customers as much as we can. I think a lot of our larger customers tend to do more of a phased rollout over time, because they just have complex operations and so many assets. And so, as more and more of our net new ACV and ARR mix moves into larger customers, that could push more of the mix to expansions over time, but it’s been very balanced over the last couple of years.
Matt Pfau: Great. Thank you.
Mike Chang: The next question comes from Junaid with Truist, followed by Jim Fish with Piper Sandler.
Junaid Siddiqui: Great. Thank you for taking my question. You had an exceptionally strong quarter on the gross margin line. I think you’ve talked about before that most of the leverage is going to be coming below the gross margin line. So, if you could just maybe expand on, going forward, should we still expect most of our leverage coming in, or should we see strong gross margin performance going forward as well?
Dominic Phillips: Yeah. I mean you even saw it in the results in Q4, gross margin improved 3 percentage points year-over-year, but operating margin improved 13 percentage points year-over-year. And so, I think that’s indicative of what to expect in the future that more of the operating leverage will continue to come from our OpEx leverage, sales and marketing, primarily again the cost of sale on a renewed dollar of ACV is much lower than it is when we land or expand ACV dollars. And then, obviously, we expect more and more leverage to come out of G&A as we continue to grow and scale. And so, I think that’s where I would point investors to looking for additional leverage.
Junaid Siddiqui: Great. Thank you. And just a follow-up. Is there any update that you can provide us on the lawsuit against Motive?
Sanjit Biswas: Sure, I’ll take that one. In terms of update, it’s a relatively recent suit. So, no big update. In terms of context of why we’re even filing the suit is to protect our investment in innovation and IP. This is a patent infringement claim, and we’ve seen that their senior leadership team was in our products getting access, copying features of our platform, many of those were patented features. So, there is more information on our microsite, but that’s kind of where we are today.
Junaid Siddiqui: Great. Thank you.
Mike Chang: And the next question comes from Jim Fish with Piper Sandler, followed by Daniel Jester with BMO.
Jim Fish: Hey, great quarter, guys. Thanks for the question. You guys are doing really well internationally. I think it was 16% of net new ACV you called out. At what point do you get more aggressive in other regions really not in and are just smaller in? Is this where — Dom, you kind of alluded to headcount additions. Is that where it’s going to be added? Were there any new geographies going to be supported this year?
Dominic Phillips: No. I think we feel like we’ve got a lot of market opportunity in front of us. First of all, I mean just in our core US market but Canada, Mexico, Western Europe, the countries — the key regions in Western Europe that we’re addressing, that’s where our focus is, and we feel like we’ve got a lot of market opportunity within those regions. And then, obviously, on the product development side, it’s another key area where we’re allocating more capital. But we feel like we’ve got enough market opportunity with the current geographies.
