Eric Yuan : Yes. Normally — it is a great question. It comes from upmarket opportunities, right? And a lot of our SMB customers, they do not use like Whiteboard and some other cool features. As an Enterprise customer, given the economic uncertainty and challenged cost reduction, they would like to consolidate, right, into one platform, right? And most of the tool from a total window perspective. When you look at the Zoom product, they’re trying to understand what kind of other services features they can leverage more and then also toggle with my Whiteboard and Team Chat, Contact Center, Zoom IQ for Sales, more and more upsell opportunity. This is a great time for those upmarket customers, especially commercial and enterprise customers, right?
Because they already trust our brand. They know those services they’re provided for example, they know we are doing innovating. They know our service will be better than others, why not deploy Zoom Whiteboard. This is a great example.
Imtiaz Koujalgi : So the early deals that you’ve had so far, what is the uplift you’ve seen in, I guess, dollars you’re getting from that customer? How much some do you see typically, I guess, as an uptick factor when somebody goes from just using Zoom Meetings to using Zoom One? What is the — what’s the, I guess, the upsell or the uptick in the deal value?
Kelly Steckelberg : It really depends on the customer. The thing that I would point out, though, is it’s not just the uplift in the dollar amount. It’s the retention that we see, which is really important to us as customers that have more — I remember at Analyst Day, we showed that chart that like — I can’t remember exactly what it is more than 50% improved retention rates when they have more than one product deployed. And so the value of us having a broader platform in there, including the one that is much more intensive like Zoom Chat and Zoom Phone really brings a lot of value to us.
Imtiaz Koujalgi : Got it. And just one follow-up, Kelly. Typically, we see customers — companies having free cash flow margins, higher than operating margins. U.S. reversed last year. I think you had a drag from cash taxes and stock-based comp. Is there — would that — again, your guide implies free cash flow margin, I believe, lower by about 9 points from operating margin. Does that reverse at the point in the future? Or do we see that as more of a permanent.
Kelly Steckelberg : Given that we are a cash tax payer for here to eternity now, I think you’re likely to see it be slightly under, but what we’re getting back to, which was very disruptive last year is a more normalized relationship between those two as we’re on more of a normal force now from a cash tax perspective.
Kelcey McKinley: Moving on to Matthew Harrigan with Benchmark.
Matthew Harrigan : I’m sorry, I tried to take myself out of the queue. I send the message.
Kelcey McKinley: No problem at all. Thanks, Matthew. All right. Well, we’ll go ahead in that case and move on to William Power with Baird.
William Power : Great. A lot of my questions have been answered, but I did want to ask about Zoom Phone. It looked like a particularly strong quarter. I think the push around Zoom One is probably helping. But it’d be great to get any other perspective on what seems to be a nice acceleration there in Zoom Phone adoption? And any color you’re able to provide just around pricing trends? And when does this become a 10% revenue component?
