Kelly Steckelberg : Yes. So renewals were not, right? There’s always an opportunity to talk to our Enterprise customers around Zoom One, the platform bundle, which we think is a great opportunity for our enterprise customers to help our prospects and customers understand the full features of the platform. And then, of course, there is a natural opportunity to do that as they’re going through the renewal period. And as we guided, we expect renewals to be strong in Q1. However, there is going to be that impact of currency that we’ve already experienced for Q2 through Q4. But unfortunately, we have one more quarter against the previous year comps that there’s going to be some impact and some headwinds there.
Kelcey McKinley: And Sterling Auty with SVB MoffetNathanson has the next question.
Sterling Auty : Kelly, maybe just to clarify on that last answer, now that we’re in fiscal ’24 on that online answer you just gave, you meant that we’d see the turn Q2, Q3 of this fiscal year, correct?
Kelly Steckelberg : Yes, this fiscal year, yes. For FY’ 23.
Sterling Auty : I just want to make sure people didn’t think fiscal ’25 so.
Kelly Steckelberg : Not FY ’25. No. Thank you, Sterling.
Sterling Auty : You’re welcome. So in terms of questions, I want to take the other side of it and go to the enterprise. What’s built into the expectation for full year revenue around the enterprise and maybe dive into at least some qualitative commentary around net retention and what you expect on renewals from customers and what you’re expecting from contribution of new customers. So what needs to happen for the enterprise to deliver that side?
Kelly Steckelberg : So we expect renewals — we talked about renewals over the last year, the last 12 months, and we expect them to consider — continue at kind of the same rate. And what we’ve mentioned in the past is that we have seen some contraction in seats as organizations around the world are experiencing reductions. So working with them on that. But on the other side, the opportunity to really bring a lot of value to our customers through our total cost of ownership, which includes expansion of the total portfolio. So as you saw, Phone really, really resonating very well, especially in this economy. And Contact Center, while it’s still small, small from an absolute dollar perspective, it doubled the ARR for contact center doubled from Q3 to Q4.
So again, small relative dollars, but really exciting to see it coming into its own. And that — we expect that to continue to contribute through all of this year, but then really start to accelerate from a contribution perspective in FY ’25, and I do mean FY ’25 in that comment. And then, of course, there’s Zoom IQ for Sales as well, which is on kind of a similar trajectory in terms of contact center, that small dollar contribution, but accelerating in terms of its overall growth.
Kelcey McKinley: We’ll now now hear from Matt Stotler with William Blair.
Matthew Stotler : Maybe just one on — a follow-up on Zoom One. You mentioned some strength there, obviously, relatively early days, a couple of quarters in I would love to get some color on maybe the portion of new customers that are going with the Zoom One bundle versus other paths to buying Zoom products? And then what the characteristics are that you’re seeing of those early adopters, right, both in terms of customer size, whether they’re adopting that for specific departments and rolling that out like you’ve seen the core meetings product historically. Any color there would be helpful.
