Karl Keirstead: Great. Thanks for fitting me in. Hey, Kelly. I’d just love to ask you about the — your perceived utility of the billings number. Traditionally, we look at that number as a decent proxy for business momentum. But, obviously, minus 10 in 4Q and plus 1% for the full year, I am guessing you would argue that that’s a poor proxy for Zoom’s momentum. So can you opine on that a little bit, because I think maybe there’s some consternation about that negative 10% and 5% billings?
Kelly Steckelberg: Thank you, Karl. I should have said this earlier. So as a reminder, we don’t guide to billings we never have, because we don’t think that they are a good indicator for us. Because of the large percentage of our customers that are, especially in the Online segment of the business that are on monthly contracts. And so because they bill and they pay us monthly, they don’t show up in that number and so that’s why it doesn’t — it isn’t really a good proxy for you to use.
Karl Keirstead: Okay. And as a follow-up, Kelly, is there anything else that’s skewing that DR number. Is there any change to invoicing terms or maybe more flexible payment terms to customers that maybe on the margin are impacting DR as well?
Kelly Steckelberg: Nothing significant.
Karl Keirstead: Okay.
Kelly Steckelberg: It’s really more about the timing — you are talking about the deferred revenue specifically
Karl Keirstead: Yeah.
Kelly Steckelberg: Really about
Karl Keirstead: Yeah.
Kelly Steckelberg: the seasonality of the renewals. I can’t stress that enough for everybody. Remember, it’s the two factors. It’s — the fact that they bill in Q1 and then so you are going to see an uptick in billings and deferred and collections. And then that amortizes over time and then the billings in Q4 are just a lot smaller. So you have this double impact, right? Now you have amortized a lot of the deferred that was picked up in Q1, so We are down at the lowest period and the billings in Q4 are the lightest period to refill that bucket. So it’s going to, look, this is going to be a phenomenon that We are going to see for years to come, as I talked about until. Over time, we start to see more and more of our bookings happening in but that’s going to take a long time.
Karl Keirstead: Yeah. Makes sense. Thank you.
Kelly Steckelberg: Okay. Thanks a lot, Karl. Thanks everybody.
Operator: And again that does conclude our Q&A session for today. I will go ahead and turn things back over to Eric for any closing or additional remarks.
Eric Yuan: Thank you. First of all, thank you for every Zoom employees, great work. Thank you for every customer, partner and investors, greater support. You all have a wonderful holiday season. Thank you again. See you in our Q4 meeting. Thank you.
Operator: Thank you, Eric. And again, this does conclude today’s earnings release. We thank you all so much for your participation. And from our family to yours, may you have a safe and happy holiday season. Enjoy the rest of your day and again we will see you next quarter. Good-bye.
