And we think every business, every institution is going to develop a complete and total dependency not just on data, but the ability to harness that data. So, this is a full-on transformation really of how industry and institutions have operated and worked at the leading edge of it, but we’re also very much at the beginning of it.
Raimo Lenschow: Okay. Thank you.
Operator: Thank you. The next question will be from the line of Karl Keirstead with UBS. Your line is now open.
Karl Keirstead: Thank you. So, Mike, just wanted — maybe two quickies. You mentioned there was a one-time credit from one of the CSPs. Are you able to define how material that was? It sounds like it might have certainly hit gross margins. But just wanted to clarify.
Mike Scarpelli: That was about $4 million that hit in the quarter.
Karl Keirstead: Okay, got it. Thanks for that. And then maybe just a follow-up. Mike, what I’m hearing you describe is an effort, you mentioned, certainly, your largest customer, but perhaps others taking their usage a little bit closer to their ACV. So, one would think that that would result in a decent amount of headwind, yet your guidance for the third quarter, in my judgment anyway, is relatively solid. So, what’s the offset? What customer segment might be ramping nicely to offset to some extent the headwinds from your large customers? Thanks so much.
Mike Scarpelli: Well, we’re now at 639 Global 2000 that are only consuming on average on a trailing 12 months at around $1.5 million, $1.6 million. A lot of those are still doing their migrations and we don’t see that stopping. It’s the larger customers. They just are not forecast to grow as quickly. They’re still growing, but at a slower pace. Now, that — once again, this is a consumption model, that could turn around tomorrow.
Karl Keirstead: Yeah. I get it. Okay. Thank you, Mike.
Operator: Thank you. The next question will be from the line of Kash Rangan with Goldman Sachs. Your line is now open.
Kash Rangan: Thank you so much. Frank, I think your fireside chat with Jensen was absolutely illuminating. He was looking at the opportunity set with structured data in the Snowflake ecosystem and almost salivating, and yet you seemed a little moderated and that you need to have a business case. So, when are we likely to reach a point where Generative AI coupled with Snowpark could really lead to a tangible increase in consumption outside of the core data cloud business? And one for you, Mike. If we are to read your comments, three months of stability, four months of stability, it looks like including August, does that mean that net expansion rates reach a bottom and could potentially start to stabilize and rebound as we head into the later part of the year? Thank you so much.
Frank Slootman: Well, it’s Frank, Kash. I mean, in the really short term, I’m only talking days, weeks, and months here, where you’re going to see language model begin to immediately impact the business is that SQL generation. I mean, in other words, the analyst job is going to be up leveled so much. I think people are going to be able to drive queries into the data much better, much faster with far less skill requirement than they ever have before, and we’re showing that off every day. So, I mean, these days, you don’t even have to be literate in order to be able to have interactions with your data. So that really is an expansion vector that is just enormously and it’s very close to home, that gives us really how you use data and how you use a platform like Snowflake.
