Mark Mader: Yes. I think one of the big lessons, Brent, is just being quick, and the another sole notion survival of the quickest. I think you have to pair that, though, would be thoughtful. And it’s like we’re not just solving for Q3, we’re not just solving for Q4. FY ’24 is right around the corner. Pete and I are started talking about FY ’25. So it’s like these are all important dimensions. And I think one of the learnings is not to get too over-rotated on that next 90-day window. And I think Pete has been a good partner to me in helping manage some of that balance. So I think that’s probably the largest takeaway.
Brent Thill: Yes. I mean, Pete, just as a quick follow-up on the rep productivity. I mean, it’s kind of counter to what we’re hearing at other companies. What do you think inverted the quota attainment for you, what changed there? Was it something that happened in the demand environment? Was it one particular geography? What — was there anything you can put your pulse on because that’s kind of counter to what we’re hearing in other companies right now?
Pete Godbole: Yes, the rep productivity that I was describing was for our newer reps. We had a series of what I call well-timed and absolutely meticulously defined initiatives of how we would ramp the newer reps into territories they had never managed accounts, they had never managed. And I think we’re seeing the dividends of that play. So we’ve seen the productivity of those reps client. Now remember, we had a significant class that we ramped in. So when you’re looking at the weighted average of the impact of that many people getting ramped up with a systematic set of plays, that’s what we’re seeing.
Mark Mader: I think it’s also an important, Brent, to recognize that we’re making a relative statement. We were not pleased with where we were last quarter in terms of rep productivity on certain cohorts. We’re seeing improvement there. So heading in the right direction. I think that is a statement though against what we saw last quarter as opposed to we are exceeding at all levels on all fronts. I think we still have a good room to go to continue to improve.
Operator: Your next question is from the line of Pinjalim Bora with JPMorgan.
Pinjalim Bora: Congrats on the quarter. Mark, I just wanted to understand a little bit. I guess it’s a great quarter. It seems like numbers are great, but we are hearing a lot of consternation from other companies as well, right? Last quarter was you had faced some difficulties. So I’m trying to understand how does the macro feel for you? Is it the improvement that you did within some of these messaging plays that helped you this quarter versus the normal discussions on a macro front. Is that kind of similar to last quarter? Or is it — does it feel a little bit better or worse?
Mark Mader: I think it feels quite similar. I think the way we’re engaging in those conversations are starting to produce yield for us. But I would say that the tenor within the customer environment is quite similar. I would say how we’re responding to that has proven to be positive. And I think that is a function of reps feeling more confident, thus being able to present these solutions in ways that resonate with them. But I would say it is as much getting yourself higher in that priority list for customer consideration as opposed to the amount of budget customers have starting to swell again. So I think it’s really our placement in that stack rank, that’s helping us.
Pinjalim Bora: Yes. Got it. One follow-up. I wanted to ask you about WorkApps. We have some — we have had some conversations with some of your customers who are talking about consolidation, not just around work management applications, but consolidation of other third-party apps, in-house apps, scheduling app or something else, right, which are being built on top of WorkApps. Are you seeing that? Is that kind of a driver for the enterprise plan at this point where people are trying to save money to more with less?
Mark Mader: Yes. I think any time you have a — the beautiful thing about the platform as opposed to a point tool is that it can be utilized in a multitude of ways. And I think any time someone sees a set of technologies that they can utilize across multiple use cases and drive a higher yield for an amount of spending. That’s a good thing. So I think WorkApps is a contributing for us there. I wouldn’t say WorkApps is the tip of the spear. It’s one of a whole multitude of things that we’re presenting to clients. I think in the coming years, I think WorkApps will continue to gain steam, the release we had an ENGAGE by connecting it to control center, which has been a really successful offering for us. Customers are really happy to see that. I think we’ll see some benefits of that marriage between touch control center and WorkApps in the quarters to come.
Operator: Your next question is from the line of Josh Baer with Morgan Stanley.
Joshua Baer: Congrats on a strong quarter. I wanted to ask one on macro and sort of in relation to guidance. We can see the deceleration in the implied Q4 billings guidance and the commentary just around the decline in the net retention rate. So I was hoping you could talk about some of the macro assumptions that’s embedded in that guidance? And when you talk about prudence, what does that mean if you could add some details there?
Mark Mader: Absolutely. So Josh, the growth decel implied in our billings guidance is a function of the strong comp from Q4 from a year ago. And we’ve combined that with sort of a prudent outlook given the macro environment, which includes an expectation of lower customer budget spending sort of compared to prior periods. And that’s what substantiates the macro in your question, which is we’re seeing a macro that’s worsening. But the good news is when I gave you guidance a quarter ago, I gave you a composite guide of Q3 and Q4 and we had projected that Q4 would be softer given a worsening macro that was built in. So that’s the basis of the assumption.
