Unidentified Participant: This is Ethan Brock (ph) on for Alex. He said he is in [indiscernible] right now. Thank you for taking my question. I just had two quick questions. Just how do we think at what level should we expect or when for the NRR of the enterprise cohort to trough? Just any kind of puts and takes around enterprise revenue in the quarter, right, above your expectations, it grew sequentially. And it was also — it was probably like RPO, CRPO. CRPO bookings has all accelerated. I guess, is it fair to think that for next year’s enterprise growth rate would be above what’s implied in the 4Q guide? And just if you can give any more kind of color around the 4Q numbers and kind of what you’re expecting in the online churn, that would be helpful. Thank you.
Kelly Steckelberg: Yeah. So we did see strength in the direct bookings, they were very back-end loaded in Q3, which just continues the theme that we’ve been talking about in terms of the overall macro. And as we look forward to Q4, we have typically, we have the benefit of having year-end where customers are having their year-end on 12/31 and then we have our year-end on January 31. And of course, we have our six-month quota-carrying reps that are coming to the end of their quoter cycle. So hopefully taking advantage of their accelerators. But we are expecting similar behavior in terms of even if we have a 12/31 sort of bump expecting that to be back-end loaded and then January 31 on as well. In terms of your question around net dollar expanding, we’re not going to give — I mean, we don’t guide on that.
I expect that given your growth rates have come down a little bit more that there might be a little bit more room for that to come down even further until it starts to stabilize and probably reaccelerate sometime next year.
Unidentified Participant: Okay. Thank you. And then just a quick follow-up. Just on the comment you made in your prepared remarks around the shorter billings duration. I guess, is there just any way to qualitatively think relative to 3Q, if there’s any change, just how to think about obviously, people moving to a more different — shorter payment terms. So just how we think about that in terms of what’s implied in the 4Q guide? Thank you.
Kelly Steckelberg: Yeah. We — so we commented first time, in seeing this trend was in Q2. If you remember, we also talked about this in our prepared remarks, we saw this happening. And given the interests rates are high, I don’t expect it’s going to change any time soon. I think — the good news is from the health of the underlying business, right, customers are committing to longer-term duration contracts, they just are preferring to pay on shorter term. And yet, we obviously had very strong cash flow in the period. So I don’t think it’s something you should be worried about.
Unidentified Participant: Got it. Thank you very much. Congrats on the next results.
Kelly Steckelberg: Thanks.
Operator: And our next question is going to come from Mark Murphy at JPMorgan. Mark will be audio only.
Unidentified Participant: Hi, guys. This is [indiscernible] on for Mark Murphy. Thanks for taking the question and congrats on the quarter. You guys called out the Virgin Group and the launch of Workvivo across 60,000 employees and a number of the workforce-related innovations you’ve launched recently. Can you just speak to the adoption of those products and what kind of momentum you’re seeing on that front? Thank you.
Kelly Steckelberg: Yeah.
Eric Yuan: Kelly you go ahead.
Kelly Steckelberg: Yeah. I mean we’re really excited about Workvivo. They — first of all, in terms of operating, they’re continuing to run as an operating unit, which — we’re making sure that we support them and their continued momentum, and we’ve already talked about — we talked about Dollar General on the last quarter and their amazing adoption. So we’re really excited about that team. They — when they joined us, we said, welcome to the family and gave them an accelerated bookings target, and they are running and achieving against that. So really thrilled to have them and watching that continue to succeed.
Unidentified Participant: Great. Thank you.
Operator: Our next question is going to come from Catharine Trebnick with Rosenblatt.
Catharine Trebnick: Thanks for taking my question. Nice quarter. Has your appetite for M&A changed at all in the last year? All day long on CNB they kept saying, we’re looking for growth, reacceleration of growth. So I’m just wondering if you’re looking at the $6.5 billion and your attitude towards M&A? Thank you.
Kelly Steckelberg: Yes. Thank you, Catharine. M&A is something that we evaluate and think about for as a potential strategy all the time. I have a core dev (ph) team that looks at opportunities on a daily basis. And we have a very strong lens that we look through in terms of evaluating that is, first of all, the technology and what does it bring to our customers. We would always want to make sure that our customers continue to enjoy a really high-quality product like they do with Zoom today. We look at the culture to make sure that it’s something that we think work well with Zoom. It’s usually a really good indicator success of integrating two companies. And then, of course, we look at the lens of valuation and does it make sense?
Is it a price that we are willing to pay. And because we have such a high bar, it honestly has been hard to find companies that we love that makes it through all three of those tests. It doesn’t mean that we wouldn’t love to find someone that did. There are some really great companies out there. And for one reason or the other to date, we just haven’t found the right match, but it doesn’t mean that we won’t. And that is why we have purposely remained retained, I should say, the flexibility of having that cash on our balance sheet so that if we do see something interesting, we’re able to act on it.
