Mark Mader: Yes, I think the other thing that I’d add to that in terms of how we plan for the year, we set our budgets, we set our plan. And we also have certain stage gates that we expect our teams to deliver against. So, as we go through Q1, we have certain opportunities that we’re looking to drive on AI, some of these new capabilities we’re launching to market, we expect performance to come on the back of that. And if those stage gates are met, then we continue to invest per our plan. And Pete has the right to inform us of a pullback in a couple of those areas to add more margin if those stage gates aren’t hit. So, I like the fact that we still have this mindset of investment. And I do think some of the investments we have an opportunity to demonstrate a contribution beyond what we have in our plan today.
Brent Thill: Okay. And then just a real quick follow-up on SMB. One of the theories of why maybe you’re seeing the weakness that you’re seeing is that you are spending a lot more time going up market. And many of questions, is this more execution and more of a competitive issue rather than blaming SMBs for not spending?
Mark Mader: Yes, I think part of the things that we’re looking to do, one of the reasons we’re trying to get the lowering of friction, getting people to discover things in a self-directed way. It’s like, you don’t want to spend a lot of human capital, getting those thousands and thousands and thousands of trialers to a point where they want to buy. I think a really good indicator of continued progress is, we had of our 500 companies, new organizations who moved from the free plan to a paid state this in January, one month, those are very self-directed motions. Those are not like heavy enterprise selling. And we’re trying to get — they open the aperture of getting that lead flow bigger and then positioning our offerings in a way where people can connect and purchase.
Part of that is features. Part of that is pricing and packaging. Part of that is the instantiation of the free plan a year ago. And when I look at the performance of new logos coming in at that leading edge, it remains very healthy. We have tens of thousands of orgs who do not pay us today engaged on the free platform today and the conversions coming out of that. Now we launched that free plan a year ago. So, could you say, well, some of that demand is rest, didn’t convert, rest and free and there’s a bit of an air gap now, we’re waiting for that demand to build, yes, you absolutely — you can drop that model and convince yourself of that. I think the NDRR though — sorry, the conversion rate on new on those SMB customers is heavily influenced by what you serve up to them.
And one of the reasons we’re making these investments is because we think there’s an opportunity to dramatically improve that. And we’re doing that alongside of the enterprise focus. It’s not like we’re moving student body right saying it’s all about enterprise. It’s enterprise-grade offerings that should work for both the leading edge of SMB as well as a really large company out there. And it’s — again, we look forward to reporting on improvement on this.
Pete Godbole: And you mentioned the competitive element, if you will, that was your follow-up. If you just looked at it, we talked about sort of what SMB, what I call NDRR are doing. If you look at our — any of the competitive impaired NDRR, they’re taking our NDRR is probably the strongest on that peer set. So, when you look at it, the business has to go somewhere with an expansion. Nobody’s seeing it. So, I would describe it as being it’s more of a function of the buyer in that market and how they’re sort of prosecuting incremental adds in what they want to do. That’s as simple as it is.
Operator: We’ll move next to Scott Berg at Needham & Company.
Unidentified Analyst: This is Rob Reilly on for Scott. Just a high-level one here. With budget scrutinization continuing. Can you provide any insight on how consolidation trends impacted the quarter, particularly on the enterprise side, weather continues to be a net benefit or headwind and then maybe how you anticipate player into 2025?
Mark Mader: I think consolidation remains more present in enterprise settings where people have hundreds of thousands of dollars of investment. We haven’t really seen a dramatic change, though, in rate or frequency. A couple of customer examples that I said in my prepared remarks, did become via a review by an IT organization that is trying to standardize. But when you look at the grand scheme of transactions in the quarter, it’s still a very, very small percentage.
Operator: And that does conclude our question-and-answer session. At this time, I would like to turn the conference over to Aaron Turner for closing remarks.
Aaron Turner : Great. Thank you all for joining us this quarter, and we’ll chat with you again next quarter.
Operator: And this concludes today’s conference call. Thank you for your participation. You may now disconnect.
