Unidentified Analyst: Great. That’s very helpful. And then just as I think about SBC, I mean, stock-based compensation came down nicely in the quarter. Should we expect that to continue to trend down. Just kind of any update on your thoughts around how you think about stock-based comp?
Pete Godbole: Yes. Stock-based comp is really important to us because it’s a key element of how we look at the business. I think you should expect a few things to happen. I’ll answer your question right at the outset, do we expect stock-based compensation in the future to decline as a percent of revenue? Yes, it should decline. That’s the way the results will come out. Now when you think of stock-based compensation, think of it as a number of people times the how much you offer them being the driver. We’ve essentially, going forward, moderated our hiring plan because we don’t need to hire the same pace. We’re doing this very differently. So what you’re going to see is a positive impact on the number of people we’re bringing in and the impact it has on stock comp.
That being said, stock comp is dictated by the history of what you’ve done in the past. So when you look at it, you say large part of it is already set by the prior hires that we’ve put in place. But — so those are the 2 effects that play into the total stock comp that gets created, and we’re focused on making sure that it goes down year-over-year as a percent of revenue.
Operator: Your next question is from the line of Terry Tillman with Truist Securities.
Unidentified Analyst: This is Robert G. on for Terry. Curious to get an update on the newer onboarding experience and some of the other recent initiatives around helping users start quickly. Have you all started to see greater usage and penetration with newer customers today versus newer customers from say a year ago, what have been the specific drivers of that, if so?
Mark Mader: Yes. We have a number of measures there, Robert. And one of the things that we’ve seen a nice uptick in is the percentage of new participants who are successful in creating their first solution, the first thing that they’re starting to try and work with. We saw really nice improvements in that. That was one of the early success factors that we were trying to solve for. There are a number of other designs and elements that are being rolled in later this quarter targeted for Q1 and Q2, which I think will also have beneficial results in terms of conversion rate. But really pleased with what the team has put out there in terms of improving that experience. One other really nice benefit from what the team put in, we have greater visibility into what somebody’s intent is and that can come on a few fronts.
The more we understand someone’s intent, the better we can serve them, both in terms of consulting, advising templates to them, how we support them. So overall, it helps us serve better, help someone get navigated and started better. So pleased with the improvements.
Unidentified Analyst: That’s great. And just one quick follow-up. Hoping to dive a little deeper on Brandfolder, how attach rates and penetration for the solution been performing relative to expectations? And what trends are you seeing in the overall digital asset management market from a demand perspective?
Pete Godbole: So Robert, we were pretty pleased with our performance with Brandfolder. We’re seeing broad resonance as people look at the combined Brandfolder Smartsheet solution together. I think what’s really helped is, one, the customers’ impact which comes from both those solutions together. And this year, we launched a model where we basically turned on our core Smartsheet sellers to help in selling Brandfolder, that’s paid pretty good dividends for us as well. As far as the digital market and Brandfolder, I’ll let Mark speak to that a little bit.
Mark Mader: I think there’s still a huge opportunity for us to educate our customers and prospects about what’s available to them and I think, well we have examples that we can point to like this big appliance manufacturer who’s doing pretty impressive stuff in terms of content automation. A lot of times when we share those stories with people, they’re unfamiliar that, that’s even possible. So I think while digital asset management has been around and sort of many — some customers are fluent in it, the majority are not, and it’s still in an education phase. I think with our — as we talked about ramp up reps, we talk often about our newest cohort. I also think about ramping in productivity with our existing reps on new lines of business like Brandfolder and Outfit.
And I think, I would say with the median rep on our team who’s experienced is much better suited today to speak to that value proposition. So again, I think it’s a very different phase in terms of stage, in terms of market understanding, and we’re leaning into it.
Operator: Your next question is from the line of Jake Roberge with William Blair.
