So we certainly have worked with many, many, many of our customers this year on ensuring that they have the right package in place. And — but I also talked about earlier this earlier on the call, that we know that the majority of our customers have had some sort of renewal period in FY ’24, meaning that we hope, we anticipate that as we’ve got — get through the end of this year, we’ve moved through most of those transitions where organizations have done their own reductions and are aligning their licenses to that.
Peter Weed: But it sounds like you’re not seeing an uptick in churn. This is mostly just that kind of reduction in force. And once we do that, then you set a four in so that the expansions can kind of work going forward on all the great things people are buying, which even us at — great customers love the product.
Kelly Steckelberg: Yeah, I mean that, we’re not giving FY ’25 guidance, just to be clear. But yes, that’s in general what we anticipate, just knowing that we’ve worked through most of our customer renewals this year, and I assume that they’ve gotten through their reductions. Now it depends on what has overall with the macro, but that’s what we leave to be the case. Yes.
Peter Weed: Thank you.
Kelly Steckelberg: Yes.
Operator: Our next question will come from Imtiaz Koujalgi with Wedbush.
Kelly Steckelberg: You are on mute.
Imtiaz Koujalgi: Sorry, can you guys hear me now?
Kelly Steckelberg: Yeah.
Imtiaz Koujalgi: A question on Zoom Phone. So Kelly, you give us the ARR last quarter, we have the Zoom Phone seat this quarter. Further, if I do a rough math on the ASP, it comes down to like $7 to $8 something per month, which seems like almost half or even more of the list price. If you can just confirm that and has that come gone down or gone up?
Kelly Steckelberg: So as a reminder, you can buy Zoom Phone either for $10 per license per month if you have metered calling on top or $15, if you get unlimited long distance. So the ASP is going to depend on which version of that, which of the SKU the customers are buying and how they come together. And then, if you think about some of our largest enterprise customers, we do discount not just for obviously, for Zoom Phone, but the overall value of their purchases or their value of being a customer for longevity in terms of length of cycles, willingness to pay upfront. So all of those things contribute, but it sounds like you’re right in. You’re right in sort of the ballpark. We have not seen a dramatic shift in those discounts up or down.
Imtiaz Koujalgi: And just one follow-up. Is that similar to what you’re seeing in the contact center or versus your I think the list price was 70 for contact center. Any comment on how the discounting in contact center compares to what you’ve seen in Zoom Phone?
Kelly Steckelberg: Yeah. No. I don’t think if you can correlate them. They’re very different products with different sales cycle and approach. So I don’t think I can try to take a percentage discount necessarily from one product and expected to apply to a different one.
Imtiaz Koujalgi: Thank you.
Kelly Steckelberg: Yeah.
Operator: We will now hear from Tyler Radke with Citi.
Kelly Steckelberg: Hi, Tyler.
Tyler Radke: Yeah. Hi. Good evening. So Kelly, if I look at the midpoint of your guidance for Q4, it’s about 1% growth in others. Some currency in there. But how should we be thinking about that as a jumping off point for fiscal year ’25? What are kind of the puts and takes that would cause growth to be higher than that, and also lower. It does sound like you’re starting to see some stabilization in parts of the business. But just help us frame for how we should be thinking about that trajectory beyond Q4.
Kelly Steckelberg: Yeah. So we will obviously give FY ‘25 guidance on the Q4 call. However, I do think that the Q4 implied extra rate and considerations around the macro? And if it is stabilizing or improving over time are important considerations. We do see — we’ve talked about many great aspects of our business today, growth in Zoom Phone, growth in contact center, stabilization and all online, all could be contributors that could drive growth in FY ‘25 to be slightly higher than the implied Q4 exit rate. But right now, I mean, if you look at the extra rate consider the macro and take all that into account as you’re modeling.
Tyler Radke: Thank you.
Operator: We’ll move on to William Power with Baird.
