Michael Berg: Thank you.
Operator: Your next question comes from the line of Jackson Ader with MoffettNathanson. Your line is open.
Jackson Ader: Hey, good evening, guys. First question is for you, Pete, on the improvement in the enterprise or on the macro environment. Should you — or should we, I guess, expect that if that improvement were to continue, would that show up in a rebound maybe of net customer additions? Or would it show up more in maybe the enterprise segment NRR.
Pete Godbole: Jackson, I think that would show up more dominantly in the enterprise NDRR that we would see internally.
Jackson Ader: And then as far — just to follow-up, as far as what we could see in the public metrics, and I guess I’m really getting after the — should we expect net additions in any of these kind of customer strata, whether it’s $5,000, $50,000, $100,000 in spend to reverse and start to see some year-over-year growth in the net additions in a particular quarter.
Pete Godbole: We are seeing net additions. If you think of our largest customer sizes, cohorts $100,000, we saw 30% growth there. I think as you start to go through the build of the future quarters, I think you’re going to see that progress continue because customers are going to rely more on us and come up with more projects that they give us. Mark mentioned the customers which are even larger. I think he mentioned customers who pay us more than 0.5 million, that population is going to grow as we go through the year. That’s the way you’ll see it. We don’t report on all those metrics all the time. But as we get more data, we’ll be sure to sort of think of sharing that.
Jackson Ader: Sure. Okay. Thank you.
Operator: Your next question comes from the line of Jason Celino with KeyBanc. Your line is open.
Jason Celino: Great. Thanks for taking my questions. Maybe first on the high velocity side, I think you said you are still seeing some pressure there. Maybe to ask us more plainly, in the quarter compared to last quarter, did you see it get marginally better or worse? Or is it pretty much the same as last time?
Pete Godbole: Just as about the same.
Jason Celino: Okay. And then last quarter, you also talked about increasing marketing efforts to offset some of the weakness you’re seeing on this side — velocity side. I’m curious how the effectiveness of these marketing efforts are going.
Pete Godbole: So, Jason, we didn’t describe that as last quarter as a — to support the weakness. We just talked about things we are doing incrementally. So let me give you a quick status on how we’ve done. We are pretty pleased with the quality of the leads that have come out of the program. But given that this was focused on our largest enterprise customers and the fact that the timing is fairly recent. If you look at the conversion dynamics for these enterprise customers, we’d expect to see a small benefit this year, but a larger benefit as we go into FY ’25. So that’s the way this is likely to play out.
Jason Celino: Okay. Thanks for the clarification. [Indiscernible].
Pete Godbole: Of course.
Operator: Your next question comes from the line of Robert Simmons with D.A. Davidson. Your line is open.
Robert Simmons: Hey, thanks for taking the questions. So it sounds like enterprise maybe got a little bit better, while the online velocity [ph] business was still kind of weak. Could you also give us some color by geography and by vertical?
Pete Godbole: Robert, so if you think about our top , what I call it four verticals in book this quarter, they were, I think, manufacturing, health care, finance and retail. And I think that’s just the size of the verticals. But if you look at the ones that got all which were strong year-on-year, I’d probably say it’s consumer goods and education. You’ll see those in live entertainment kind of sign of the times. And probably the ones that weren’t strong relative year-on-year growth, you’re looking at media and production and technology.
Robert Simmons: Got it. Got it. That makes sense or is helpful. And then so you raised your income guide by more than you raised the revenue guide for the year. I guess, are there specific areas that you’re cutting back on or just kind of like trimming your sales a little bit? And which areas are you kind of pouring more money into?
Pete Godbole: So, Robert, if you think about the delta between sort of how we’ve increased our margin versus the actual revenue outperformance, I’d say some of the margin improvement comes from the fact that we are just flowing revenue beat straight into margin. But on top of that, what we are also doing is we are being extremely thoughtful on operating efficiency. It’s when we hire, whether we replace a role or not, where we hire and looking at every nonrevenue sort of investment and scrutinizing it. Kind of the — I was laughing to telling Mark the other day. I think that’s just the role of a CFO and the finance org in what they do. So this is what I call no fault cost reduction that plays out into margin. That’s what you’re seeing play through.
Robert Simmons: Got it. Thank you very much.
Pete Godbole: [Indiscernible] Robert.
Operator: Your next question comes from the line of Steve Enders with Citi. Your line is open.
Unidentified Analyst: Hi. Thanks for taking the question. This is George on for Steve. Just wanted to follow-up Brandfolder. Last quarter, I think you called out some demand headwinds, but in your prepared remarks called out a pretty significant win. So just an update on the demand environment there. Thank you.
Pete Godbole: So, George, if you think of that we called marketing solutions and Brandfolder is the major part of it, our quarter-on-quarter, if you looked at it, that performance improved. And we did call out a big deal, which was the largest in Brandfolder history that we booked in Q2 as well. Brandfolder is a part of the market which is experiencing obviously, the impacts of the macro environment, but we are learning to sort of go after that business by listening to customers and trying to fit how we’ve described the benefits in an ROI way. So we are seeing that pay off a little bit for us. And we are being very smart about even how we think of pricing and packaging. More of that to come when we get the ENGAGE conference.
Unidentified Analyst: Great. And then a quick follow-up. You called out some stabilization in the macro. Anything notable on the linearity through the quarter? Thank you.
