Alex Zukin: Hi guys, thanks for taking the question. Good to see a solid quarter and congrats on kind of the margin guidance. Just two quick ones for me. First, if we dig in a little bit of the macro factors that you saw in the quarter versus what you guided to getting worse. I guess clearly churn was strong at some 4%, but maybe if you split-up, what you’re seeing around expansions with existing customers versus net-new, where are you seeing that bigger impact from the macro, any downward pressure on renewals? And then I have a quick follow-up.
Pete Godbole: So Alex, I’ll take your question in pieces. So first of all, the net dollar retention rates are fairly healthy and the pullback that we’ve seen is on the expansion side of it, tied to sort of what’s happening in the macro. And what we’ve seen is, it has been relatively strong with our larger customers and our enterprise customers and there’s a little more pressure with the SMB and smaller ARR customers. So that’s how we’ve seen it play-out. We haven’t seen, as I said, the churn number materially get impacted. So we’ve seen fairly strong commitment to the Smartsheet platform.
Alex Zukin: Perfect. And then, I guess, with respect to the margin guidance, maybe talk about through — the linearity through the year, the exit rate that we should be looking at for fiscal ’24? And specifically, as you contemplate kind of this net new growth algorithm — growth profitability algorithm where your billings growth is that kind of 20% level, what is the aspiration around sales efficiency in terms of that magic number or the ability to kind of generate a balance of both?
Pete Godbole: So I’ll start by saying that, this is a big market and we think there is plenty of room in the growth in this market long-term. We’re bullish in this market and we are the leaders in the enterprise segment and across the whole category. So when we think of this business in terms of the longer-term growth, we see this as a solid grower. Now, there could be macroeconomic adjustments as we go through different cycles of macroeconomic change. So that’s one part of it. The second part of your question is on the profitability and how we think of that moving forward? We’re going to continue to be optimizing essentially the scale we’ve attained. So you think of the scale we have achieved. We don’t need to add a lot of resources, just given the scale in terms of where we’re at.
And we’re being more-and-more efficient, because the every dollar we’ve already gained, cost us a lot less to serve compared to a $1 we need to invest to gain. So that’s playing into the economics you’re seeing in sales and marketing is going to continue through. So you’re going to see that play itself in the future as well.
Alex Zukin: Perfect, Thank you, guys.
Pete Godbole: No problem.
Operator: Your next question is from the line of Terry Tillman with Truist Securities. Your line is open.
Terry Tillman: Yes, thank you. Good afternoon. Hi, Mark, Pete and Aaron. I have look at the press release like three times, because I’m looking at that $110 million of free-cash flow and then surely it was. So great to see that. I have two questions. The first one is a multi parter and then the second question I’ll follow-up with on. First question is around product and packaging. I think Mark you said you had 3,300 customers that are considered enterprise. But I’m curious about is, the penetration of Advance now in that segment, and then if we take a step-back, if we’re looking at 23% or 24% growth in the total revenue. How should we be thinking about the enterprise segment? And then I had a follow-up around product discovery.
