Patrick Colville: All right. Thank you so much for taking my question. I just want to double-click on your comments. I think you said customers are reengaging in July. You said that in the prepared remarks. I mean, I guess, what do you mean by that? Is it new customers, existing customers, consumption, contract negotiations? And then, any color you can give us on thus far in August would be helpful.
Mike Scarpelli: All three of the above. We have new customers. I just pointed out those two large Cap Ones. We usually don’t do Cap Ones that big, and it was a very good quarter with some large new customers. We’re seeing our existing customers. We saw some nice early renewals with customers where they were consuming faster. And we’re seeing customers willing to do larger deals rather than just do a co-term to bridge them through to another period. So that’s what I mean by the sentiment is changing with our customers.
Patrick Colville: All right. I guess my kind of follow-up is — I mean, NVIDIA reported results tonight. I think looking at the numbers, the data center revenue rose by 150% sequentially. But clearly, like AI spend is hitting the silicon layer. I mean a question I get from investors is when will AI spend more clearly hit the software layer? I mean, do you have any thoughts on that?
Mike Scarpelli: I think it’s going to be next year. As I said, it’s going to take some time for AI. And people are still struggling to get GPUs and there is a time lag between when a chip manufacturer sells their chips to it gets built into the hardware that actually gets deployed in a rack in a data center, and it gets deployed to customers.
Frank Slootman: I think you will see the leading actually happening in months to come. But the material impact, I think most analysts out there are seeing in 2024 and we tend to agree with that.
Mike Scarpelli: And I would say in my prior life, when we were buying racks of servers, there’s a six-month delay between when we bought them and when they were actually going into production. And I don’t see that any different with GPUs.
Operator: Thank you. The next question will be from the line of Alex Zukin with Wolfe Research. Your line is now open.
Ethan Bruck: This is Ethan Bruck on for Alex Zukin. I just had a quick kind of numbers question. So, if we calculate the product revenue of cRPO booking growth, it decelerated to 13% from about 30% last quarter. So, just curious, how should we think about this as an indicator of future consumption for future product growth?
Mike Scarpelli: So, I guided to full year revenue at $2.6 billion, and we’ll guide next year next year.
Ethan Bruck: Okay. And then I guess just to ask the August trends question in a different way. I guess, has some of the stability you called out trended into August kind of the first one for the quarter? And then just on the seasonality, is there any kind of month to note as you think about the rest of the year that seems that either seasonally strong or seasonally weak?
Mike Scarpelli: Well, as I said, August is shaping up very good. I called out yesterday, it was actually a very good consumption, but one day doesn’t make a trend. Q4 is definitely seasonality with the holidays with Thanksgiving in the U.S. and the Christmas holidays that does impact daily consumption. From a bookings perspective, Q4 though, is clearly our largest bookings.
Ethan Bruck: Got it. Makes sense. Okay. Thank you, and congrats on the quarter.
Operator: Thank you. The next question will be from the line of Brent Bracelin with Piper Sandler. Your line is now open.
