And the more weaken our marketers in going to their CFOs, Pete, no offense, right, in presenting the value, I think that really get market — the marketing teams much more confidence. So it’s a newer arena for many marketing organizations, but I think it’s — it actually is quite promising for the year ahead.
DJ Hynes: Yes, okay. That’s helpful, thanks. And then, Pete, just a follow-up for you. So look, in the context of the big margin upside next year and I know this is question you won’t want to answer. But can you help frame like, what kind of sales capacity you’re thinking of adding in fiscal ’24? Maybe relative to what you did in fiscal ’23 and the reason I ask, like, I think investors are going to want some assurances that we’re continuing to invest and positioned for growth in fiscal ’25 and beyond. So any color there would be helpful for folks.
Pete Godbole: So, DJ, I think, we’re committed to growth. So think of that growth coming from a more efficient model. So, quite simply, if you think of the size of our base that we bring in for renewal, The cost in terms of what it takes to service that base is much lower than what the cost is for bringing in new dollar business. That economic or that effect is going to stack into how many resources we need. And now we will continue to hire. We’re going to hire this year as well. We will hire next year, but the classes in size will be smaller than what we’ve historically done. So you see an accretion to margin as a part of our longer-term plan to grow margins.
DJ Hynes: Yes, okay. Thank you, guys. Appreciate the color.
Pete Godbole: No problem, DJ.
Operator: Your next question is from the line of Scott Berg with Needham. Your line is open.
Scott Berg: Hi, everyone, congrats on the nice results this quarter. Thanks for taking my questions. I guess, Mark, I wanted to start with the question of a totally different kind of, I guess, agenda, is the company is pretty close to a $1 billion revenue run-rate. How does Smartsheet look differently at a $2 billion run-rate, do you think?
Mark Mader: I think the enrollment, Scott, of many more customers having a diversified experienced in Smartsheet, that will be the — that’ll be very much present at $2 billion. So today we talk about thousands of companies benefiting from Advance. I think, a couple of years from now, we’re going to see tens of thousands of organizations having a much more complete Smartsheet experience. So a couple of years ago at Analyst Day, someone said, what’s the thing you would most like to have in your product? You know what, don’t give me another thing. I want the customers to have perfect information on what’s possible now. Fortunately, I have got a whole bunch of it in the two years, but I want those assets, those capabilities to land with our medium customer.
So we are working very hard not just to cater to the largest of the large, but how do you get that midsized customer in that upper mid customer and even emerging customer to understand the power of the platform. So I believe you’re going to have a much more cross connected product experience across the various disciplines within Smartsheet, whether it is on strategic transformation, it’s marketing suite of management, it’s PPM, it’s core work management, you are going to have much more complete usage. And today, you see — you have evidence of hundreds of customers using us at-scale doing very sophisticated things. That will be driving towards the middle of the band. And I would say, what that will result in, it’s not only more customers, but also a significantly higher average contribution per customer.
So our ASP will climb meaningfully over the next few years as a result of that.
