George Iwanyc: And with that, maybe could you give some perspective on when people are in the app, are you seeing them engage with multiple products in a more broad way with the overall platform?
Mark Mader: When you say more products you mean more elements of our product or integrations with…
George Iwanyc: Yes, more elements of your product.
Mark Mader: Yes. And I think as we dovetail things like Brandfolder into the experience and our resource management more into our core experience, by lowering that hurdle height for people to easily traverse, yes, we are seeing that happen. The one thing that I’m quite looking forward to and I shared this on a prior call, as we remove — further remove the friction from people being able to explore our entire portfolio. As Pete said a second ago, today a lot of those capabilities are really consultative sale. And what Praerit and the engineering team are working on continue to let people discover, explore, realize the value and then ultimately buy those in a self-directed manner. So I think in the coming 2 years, you’re going to see a much greater diversity in people using more things in our products because we’re lowering that friction.
Operator: Your next question comes from the line of Alex Zukin with Wolfe Research.
Unidentified Analyst: This is Ethan Brook on for Alex Zukin. Congrats on the quarter. I wanted to ask, I appreciate the color for where NRR will go next quarter. But as you think about looking to next year, is like mid-120 the right way we should think about I guess where NRR would stabilize, and if you look to next year, it’s high 20s growth the right way we should be thinking about it.
Pete Godbole: Ethan, we’re not talking about next year because that’s a part of the whole construct of how we see next year. It’s related to what we see bookings, billings, all those elements. So it’s a little premature to talk about sort of where that number will be. I think longer term, we see great capability for that number to grow just based on our history and sort of the products we’ve got in the pipeline. So that’s the way I’ll leave it.
Unidentified Analyst: Great. And then congrats also on showing the great improvement in incremental margins improved from like negative 20 to negative 3%. I guess is this the kind of the pace and rate we should think about margin improvement going forward? And I guess how are you thinking about balancing, I guess, improving this margin, a little bit more? Can we expect a little bit more on the margin side? And also, I just want to ask, is the 10% free cash flow margin for calendar ’24 still on the table?
Pete Godbole: So Ethan, I appreciate the question. We’ve made significant strides by really focusing on operational improvements and moderating hiring. So we’ve seen that play out in the margins you’ve just seen. What I would tell you is we’re going to continue that effort by trying to go after efficient growth, and that’s going to be something we’ll continue for several years as we go through it. That being said, we’re not going through specific callouts of how much margin improvement there is and what rate it clips at. There’s a little bit of work to be done before we get to that point.
Unidentified Analyst: Congrats, again, on the good quarter.
Operator: Your next question comes from the line of Rishi Jaluria with RBC Capital Markets.
Unidentified Analyst: This is Richard Poland on for Rishi Jaluria. I guess just in terms of the macro environment versus what you saw 90 days ago, is there any way to kind of bifurcate what you’re seeing between SMB and enterprise and just kind of — are there any pockets of either demand improvement or demand softening that you’d call out within that?
Pete Godbole: So Richard, this is Pete. What we’ve seen is we’ve seen, if you would parse the segments of the market differently. I would say in the U.S. mid-market, we’ve seen sort of global impacts more broadly so. I would say we’ve had strength in the enterprise based on just the number of transactions we’ve been able to book with these enterprises. So those would be like the texture on it. I think you’re looking for that level. I think in terms of verticals, we’ve seen strength in manufacturing, global energy architecture, construction, if you will, and some of the weaker verticals for us have been technology, probably consumer good, and media, if you will.
