Operator: Our next question is with Brad Reback from Stifel.
Brad Reback : Mike, as we think about the macro backdrop, what, if any, impact should we expect to — for that to have on an RPO in 4Q?
Mike Scarpelli: I don’t see it having a big impact on Q4 based upon the pipeline of deals and knowing the number of customers I know are running out of credits. And I should say, from a current RPO, the big question is whether customers in this environment will do multiyear deals or just choose to renew for 1 year, which they have the option to do as well, too. But with that said, I know Q4 will always be our largest addition to RPO. And based upon all the sales calls that we have, I feel pretty good about that right now where we’re sitting. But obviously, there’s still two months left in the quarter.
Operator: Our next question is with Will Power from Baird.
Will Power : Mike, it was great to see the higher free cash flow guidance, I guess, this year initial expectations for next year. And I guess the longer-term target looks pretty conservative, I guess in light of that, but it would be great just to get kind of perspective on kind of the key upside drivers there relative to what you were previously anticipating.
Mike Scarpelli: Well, part of it is just what we guided to. This year is going to come in where we thought it was going to come in for the second half of the year. But a lot of it is driven by customer consumption with some of our largest customers and knowing the RPO that they have and the timing of when those things are going to get billed. But coupled with the fact that we are slowing our hiring down next year, we’re seeing very positive gross margin improvements. I do think there’s more opportunity next year for gross margin improvement, but wait until we guide just based upon some things we’re in discussions with the cloud providers. And I feel pretty good about those numbers sitting here right now on our preliminary planning for next year.
Operator: Our next question is with Mike Cikos from Needham & Company.
Mike Cikos : I had a question about the optimization trends that we’re seeing from customers and really, it relates to the cohorts here. But given the current macro backdrop, is it fair to think that newer customers who maybe were onboarded in the most recent six or nine months and are on that growth trajectory? Are they at a slower rate versus previous cohorts? Can you elaborate at all as far as what the more recent cohorts are demonstrating from a growth perspective?
Mike Scarpelli: I really haven’t looked at that, but I’m not — what I will say is customers today, we spend a lot more time with them on making sure they use Snowflake efficiently, and there’s a lot more people that have experience with Snowflake that it’s — I think the customers that were growing on Snowflake today that are starting out are much, much more efficient in how they use Snowflake. But I’ll turn it over to Christian, who actually talks to a lot of our customers.
Christian Kleinerman : Yes. We’re very focused on helping our customers do not go through a cycle of grow, optimize, grow, optimize, but just being a smoother curve all along. And it is, as Mike said, expectation setting, explaining with training and other material, but also product enhancement and we’re seeing that type of behavior, both with existing and new customers.
