Operator: The next question is from the line of Tyler Radke with Citi. Your line is now open.
Tyler Radke: So Claire or Steve, just starting off on the ARR performance in the quarter. I guess the sequential growth of $1 million quarter-over-quarter, how much was incremental currency headwind to the reported number relative to your last guidance? And then secondly, it did look like a pretty steep decline in maintenance and software upgrade rights as well as subscription did tick down. So is it fair to say that the bulk of the cloud sequential growth came from migrations from those ARR basis? Thanks.
Claire Bramley: Yes, Tyler, thanks very much for your question. So to your point, from a quarter-over-quarter standpoint, we did actually see a $13 million negative impact from currencies. So to your point, it looks like we only grew total ARR by $1, but that was actually $14 million in terms of constant currency. And some of that headwind, because ARR is down from a currency standpoint at the end of the quarter, kind of the ending rate. We did see a sequential impact on currency. And that’s what we’re seeing as we go into Q4. as well. We’re actually pleased with the mix, as Steve mentioned earlier, with the mix between migrations and expansions. It was in line with what we expected. In the quarter, to your point, we are seeing software upgrade rates and maintenance decline, but that’s in line with what we’re expecting.
And we see a lot of that being either conversions to subscription or conversion straight into the cloud. So we didn’t get any surprises in Q3, and we’re happy with how it looks to Q4, but we are seeing those currency headwinds at the end of Q3 and moving into Q4 from an ARR standpoint.
Tyler Radke: Okay. Super clear. And it sounds like you’re expressing a lot of confidence in 2025 targets, which is great to see. I guess just how should we think about kind of the linearity or the path to 2025 from 2023, should it kind of follow a straight-line path in terms of cloud growth and free cash flow or anything to call out just in terms of incremental on 2024 versus 2025.
Claire Bramley: So yes, Tyler, we do have good confidence in the goals that we previously laid out for 2025 and we’re not in a position to give guidance for 2024 at this point. But by definition, we will see growth as we go from ’23 to ’24 to ’25. So yes, we can model in growth naturally in 2024, but we’re not giving guidance at this point and I’ll come back to you next quarter with obviously, all of the details on that. But I think I’d just reiterate by saying good confidence in the goals that we set for 2025.
Operator: Thank you for your question. There are no further questions at this time. I will now turn the call back over to Steve McMillan for his final remarks.
Stephen McMillan: Thank you. And thanks, everyone, for joining us today. We are really pleased with our ongoing momentum and our cloud growth. We remain committed to our strategy and are confident in driving that differentiated value for our customers and a return to our shareholders. We look forward to speaking again after Q4 and hope you all have a great year-end. Thank you very much.
Operator: This concludes today’s conference call. You may now disconnect your lines.
