Raimo Lenschow: Thank you. Two quick questions. One on staying on partners, competitors, et cetera, and Rob, you spent, obviously, a lot of years at SAP. Like how do we have to think about the SAP relationship, a lot of your businesses, isn’t that SAP installed base, helping on process optimization, et cetera. SAP is making more noise about doing it themselves. Like how is that relationship evolving? That’s my first question and then I have one follow-up for Ashim.
Rob Enslin: Yeah. Look, I mean, we — first of all, I would say, you have got to look at our portfolio. Our portfolio, we are very strong in financials and healthcare. So we have a broad portfolio that we go after. So it’s not only our partnership with SAP that we are working on and we have got a partnership. We — they utilize some of our technology. We obviously work closely with them and we continue to work closely with them, because we believe we have a mutual benefit in helping customers add value and together with the customer base and the customer fit they have. We think there’s an incredible value for our customers. But that also includes other companies in that space as well. So we continue to progress. Key partnerships are clearly part of the strategy we laid out at Investor Day and we continue to evolve that every quarter.
Raimo Lenschow: Okay. Perfect. Thank you. And then, Ashim, obviously, a lot of investors look at net new ARR added and you had a really strong $67 million this quarter. If I look at the implied number for Q4, it does seem different than what we saw in Q4 last year. Could you just kind of speak a little bit if there are specific factors that might drive that, I remember like a couple of years ago, we had the change in the year end, et cetera, like just anything that we should know about or remember about Q4? Thank you.
Ashim Gupta: Yeah. So in Q4 we have a more pronounced impact from foreign exchange. I think that’s the first notable point Raimo. The reason for that is a lot of our renewable base, which obviously will renew at a potentially lower FX rate — at the current FX rate, I should say. That has a $20 million impact year-over-year. So when you look at what we have implicitly guided at around $66 million and you add $20 million back for that, that takes you to $86 million. And then you take into account the macro — the impact from the macro environment and we have been consistent in our guidance philosophies in terms of guiding what we see in front of us. That’s kind of how you think about the components of the guide and the factor for why it is $66 million right now.
Operator: Thank you. Our next question comes from Matthew Hedberg with RBC Capital Markets. Please go ahead.
Simran Biswal: Hey. This is Simran on for Matt Hedberg. Thanks for taking our questions. So with the uncertainty you noted earlier about the current environment, has the tone of your customer conversations changed at all and do you see more hesitancy with customers are experiencing longer sales cycles?
Rob Enslin: Yeah. What we have been very clear about is we see a consistency between the quarters that we saw in Q2 into Q3 and we believe that we are actually managing it really well right now.
Simran Biswal: Got it. And then also earlier, you announced an additional reduction in your workforce. How are you thinking about the reallocation of those budgets towards greater efficiency and execution and customer strategies?
Rob Enslin: Yeah. Good question. So the restructuring was that we announced two weeks ago, I think. Part of the strategic discussions we had at Investor Day and the rollout. That is a cross-functional restructuring that we have. It has very little impact, the minimum impact on our quota carriers and our go-to-market, and we continue to execute the go-to-market as we design this around the strategic initiatives.
Operator: Thank you. And our next question comes from Keith Weiss with Morgan Stanley. Please go ahead.
Keith Weiss: Excellent. Thank you guys for taking the question. Ashim, on the operating margins, you guys really outperformed kind of what the original guide was there. Is that all coming from the headcount reductions or is there more efficiency kind of improvements that are coming from other parts of the business? And how should we think about that kind of the potential for further progression there into FY 2024 perhaps?
Ashim Gupta: Yeah. So not — the headcount reduction, just to answer directly and then I will walk you through the operating margin, Keith. The headcount reduction was announced on November 15th. So what we announced had very little impact — no impact on our third quarter results. When you break down and you look at how the operating margin came together, the first is the topline. The team did a great job on executing in the environment and so we outperformed the topline, and of course, that flows through and falls through to the bottomline. The second is, while we know we were in a period of reorganization, we had a hiring freeze that we put in place and we installed a lot of operating — we — in this environment, our entire employee base, I think, understands the environment and we are operating with a lot of discipline.
So you just take those two factors in there. That really explains the beat. In terms of the go forward, I’d point you back to kind of our discussions at Investor Day and the anchor points that we provided, we are committed to margin expansion. We see a path to be able to grow durably and profitably, and we are going to operate with discipline, but still execute a strategy for growth that we have laid out together.
