Adam Hotchkiss: Okay. Thank you, Eugene. That’s incredibly helpful. And then could you just talk a little bit more about your professional services strategy here as you move up market. It seemed through what we’ve seen that you’re opting to vet and collaborate with enterprise freelancers, excuse me, to help enterprises. Is it fair to say that this will exist in the place of building out more meaningful services in-house? And then maybe, Brian, if you could just touch on what the monetization arrangements look like with those freelancers that would be useful.
Eugene Levin: Yes. Great question and I probably should have answered this in the first part as well because, of course, services is another area where enterprise product is differentiated from SMB productivity. And as you mentioned, big companies, they need extra services, they need someone to hold their hand, they need someone to provide second opinion and guide them. And there are two options that companies, software companies, have when they tackle this problem. Sometimes they decide to build service arm inside the company, which has some benefits, but from our point of view, it’s actually margin dilutive. And we’re a software company. We want to run very high margin business. And the other approach is actually what we are doing to partner with industry-leading experts in different areas and connect them with the pool of customers that we have.
And we are starting with freelancers and experts. Over time we think we could expand this to our agency clients as well and generate additional leads and demand for them by allowing them to work with our brand customers. And in terms of financial arrangement, what we do is we productize their services and we provide sort of billing and handle transactions and then take our small commission for facilitation and then pass the remaining revenue to freelancers. So we recognize as revenue only our commission, so it’s a clean, high margin revenue for us.
Adam Hotchkiss: Okay, really useful. Thanks so much, Eugene.
Operator: Our next question today comes from Elizabeth Porter from Morgan Stanley. Your line is now open. Please go ahead.
Elizabeth Porter: Great. Thank you so much. Just given the focus on the cross-sell and up-sell, plus addressing larger enterprise customers, it sounds like it can be a material upside to our ARPU. So how should we think about the growth algo between new customers and ARPU, shifting between these two factors? I think historically it’s been a little bit more balanced, maybe skewed a bit more towards customers. So, just wanted to level set on the growth algo and the forward outlook as we go down these new initiatives. Thank you.
Brian Mulroy: Hey, Elizabeth, it’s Brian. Yes, so we expect, as we’ve experienced in the past, that both will be significant growth drivers for us. So we’re still very pleased to see the amount of net adds that we experience every single quarter. The SMB and mid market, which tends to be the bulk of the incremental net adds for us has been very strong and healthy and we expect that will continue to be a growth driver for us. At the same time as we’ve been talking about, we do see much healthier metrics as we’re moving up market. We’ve talked about things like the retention, the average ARR per paying customer and even growth for that particular segment. So I think going forward you might see a slight shift where the number of accounts — sorry, the growth would actually shift a little bit more towards up-sell and higher valued accounts, but we still expect that we’ll see healthy growth from net adds as well.
Elizabeth Porter: Great. And then a follow-up actually on the net add side that adds a 4000 but just a bit below the 5000 you’ve consistently added in prior Q1s. So just curious if there were any factors to call out? And then also touch on the seasonal trend of customers leaving in Q4, but coming back in Q1, how did that play out relative to prior years?
Brian Mulroy: Sure. So you’re just building on what we were just talking about. Like any metric, they can fluctuate from quarter-to-quarter. There is always seasonal dynamics within one quarter or even year-over-year that could affect that number. But I think what you’re seeing is just because we’re putting more focus on higher valued up-market enterprise accounts, that you could see that — as we are putting more focus on that, that you could see that net add metric be impacted going forward.
Elizabeth Porter: Great. Thank you.
Operator: Our final question comes from Mark Murphy from JPMorgan. Your line is now open. Please go ahead.
Arti Vula: Hey, this is Arti Vula on for Mark Murphy. Thanks for taking the question and congrats to the quarter. As you spoke to some of these investments you guys are expecting to make, particularly on the upper end of the market, can you give us any sense of how you expect hiring to trend through this year? Thank you.
Oleg Shchegolev: It was tough to hear. It was a little bit choppy. Can you just ask it again? Sorry, it was tough to hear you.
Arti Vula: Yeah. Is this better?
Oleg Shchegolev: It’s breaking up a little bit, but try again.
Arti Vula: My question was just around hiring and how we should expect headcount growth, particularly in sales and marketing, to trend through this year, maybe compared to last year and year before. Thanks.
