Josh Baer: Really helpful. And then just wanted to dig in one more time on billings, Q3, Q4. Like you did show some nice upside and acceleration in Q3 off of an easier compare. The comp gets easier yet again in Q4, but the guidance implies a little bit of decel, like, even adjusting for the shift in the partners. So anything else to call out between Q3 and Q4? Or is kind of Q4 just embedding sort of the normal type of prudence in guidance? Thank you.
Pete Godbole: So Josh, our approach this year has been very consistent. The performance every quarter, sort of irrespective of direction, hasn’t materially changed our view of the year. Within a quarter, there’s many reasons for variability. It’s the timing of billings. It’s the lumpiness of deals. It’s seasonal variances, which tend to sort of offset over a full year term. We provided commentary based on actual sort of data we see in the quarter, but we’ve been very constant in our view of the year. And the way we see it is, given our performance over the past two quarters, we like the set up in Q4 to hit our 20% full year billings guide. So that’s the way we see it.
Josh Baer: Okay, great. Thanks, Pete.
Pete Godbole: No problem.
Operator: We will take our next question from Jake Roberge with William Blair.
Jake Roberge: Hi, thanks for taking my questions. Mark, now that you’ve had those AI solutions in beta for a few months and in the hands of customers, what’s been the early feedback on those? Are there any features that you’re really seeing outsized demand for?
Mark Mader: It’s interesting. As I talk to peer CEOs who have launched AI features into the wild, I think what the market is seeing is that I think people are assigning higher value but lower frequency, lower usage to some of these things. So when I look at a company saying, hey, we really assign value to the ability to generate configurations through advanced formulas or content generation, it’s not something where we see this being hammered away at 10, 50, 100x per day. We’re seeing a configuration at our large domain sort of a configuration being created daily. So it’s not like every single user is using us all day long, but it’s actually quite encouraging because people are utilizing it consistently. And I think as the surface area grows, not only from creating a logic, but then having an assistant and having the ability to do insights and having the ability to find templates through an AI mechanism, I think that frequency will climb.
But I would say pretty consistently across the peers that I speak with, a lot of investments are out there. And I think the frequency of usage is probably a little bit lower than people had anticipated. But when I look at the feedback we’ve received across favorable, neutral or negative, almost exclusively neutral or positive. And that’s a really good leading indicator that tells us continue to invest in this area. Heading into Q1 will be the first time where we have something available in our enterprise product, which can really be presented to a business user that they can associate you very cleanly. Like in the past, very often, enterprise plans tie out to security features and things that IT and governance really values, this will be the first foray into giving the business users something that they can get excited about.
So again, super early days. I’m really pleased to see the neutral or positive feedback on this. And it’s like it’s the first inning of this game. But again, no – definitely, the game is being pursued fully.
Jake Roberge: Very helpful. And then I know a lot of the solutions are still in beta today and will obviously take some time to roll out. But just in terms of that time line, what do you view as the kind of the biggest product hurdles you have left before getting these solutions really GA and lives in the hands of customers and really starting that upsell motion?
Mark Mader: I think especially in this arena, there are two factors. One, for many people, this is their first time interacting with an AI experience. So the importance of being correct, having – giving the customer high confidence in that interaction, we care deeply about that. So as we think about leaving some of these things in the oven, if you will, for an extra month or 2, we think it’s a really smart move. So we’re getting the first two skills out at the – before the end of Q4. And I think with each of these skills, it’s important to really understand what the feedback and interaction with that skill is as opposed to doing a drag right and say, well, it worked well for the first three skills, let’s just do that for the next five.
I think you really have to prosecute these independent of one another. I think the other piece of this equation is what the posture of the buyer is. So when I look at some of our largest organizations, we have about 5,000 organizations in the Early Adopter Program, spanning tens of thousands of users. There are some organizations – even with our approach to AI, which is unbelievably contained, like we don’t ship data across the boundary. Even in those situations, the procurement teams and security teams are taking extra care to really understand what their internal policies are. So we’ve actually had some of our largest clients who are taking an überconservative approach say, we will wait until it’s out of EAP, as they’re getting their internal controls defined.
And I think a lot of customers are being very prudent in that approach.
Jake Roberge: Great. Thanks for taking the questions.
Mark Mader: Yes.
Operator: We will take our next question from John DiFucci with Guggenheim.
