Mike Scarpelli: On your question on investments in the business, Brad, given the opportunity, we are investing as fast as we think we need to invest. You did see the guided margins to 4% for operating margin where we just did 5% this quarter and that’s because we’re investing. As an example, we have a 1,000 H1100 GPUs reserved, that’s an extra $1 million a month as we’re working on AI. I’m not getting requests that people need more headcount in the engineering organization and the sales and marketing. Until we see an increase in productivity, we’re going to be very methodical about how we add resources into those areas. So, we’re definitely not under-investing in the business, at least I’m not getting the feedback from any of the executive team with regards to that.
Brad Zelnick: Thanks for the additional color.
Operator: Thank you. The next question will be from the line of Tyler Radke with Citi. Your line is now open.
Tyler Radke: Yes, thanks for taking the question. First question just on the commentary around some of the projects you are starting to see better momentum there, particularly in July. I was wondering if you could just comment on the nature of those projects. Are they larger deals than you typically see or maybe they include more Generative AI or data science given all the new products that you released? If you could just kind of contrast the pickup and kind of where that’s coming from?
Frank Slootman: Yeah, just — you want to get going?
Mike Scarpelli: You, go ahead, Frank.
Frank Slootman: So, you shouldn’t equate projects with deals, okay, because there is tons and tons of projects going on and projects relate to use cases and workloads and applications. But what we said in the prepared remarks is, we’ve really seen a sort of a sentiment change from the earlier quarters where people were sort of trying to cut off their limbs to fit within budgetary constraints and all these kinds of stuff. And then where do — and that’s why you see unnatural acts to save money. That has really subsided considerably and the conversation is really going back to where it historically has been, as you know, we want to do these applications, these workloads, these migrations. And of course, we’re pushing the boundaries on much more sophisticated use cases in machine learning.
And obviously, people want to understand how do I deploy large language models on the Snowflake platform. And we have outlined that an excruciating detail and demonstrated, showcased how we are doing that and we’re super excited about how that’s unfolding for us and our customers.
Tyler Radke: Great. And then follow-up, just in terms of the Snowpark revenue. Any update on kind of where you’re expecting that to track as you exit this year? And then these related services, whether it’s the Native App Store or Container Services, would that all fall under Snowpark theoretically when that goes GA next year? Thank you.
Mike Scarpelli: In terms of Snowpark, as we said, whereas Frank talked about seeing 70% growth in Snowpark consumption, still relatively small, but meaningful. We have a number of customers that are in the process of doing their migrations, a few quite large ones. I do think next year, it will be more meaningful to revenue. But on $2.6 billion in revenue, it’s a couple of percent of our revenue this year.
Frank Slootman: Once that container services become primetime and that is part of Snowpark, obviously, that means any workload becomes a fair game to be deployed on Snowflake. This is obviously running close to the data, inside our governance perimeter, it’s essentially virtualization for the cloud. So, we think there is enormous upside for us once those services become generally available across all our cloud platforms.
Mike Scarpelli: Which will be next year.
Tyler Radke: Thank you.
