Operator: Our next question comes from Alex Zukin with Wolfe Research.
Alex Zukin: I guess on the same vein, I wanted to ask about NRR. Henry, you mentioned it was sub-90%. Are we — does this feel like a bottom and now we’re kind of taking that rate over a larger cohort here into Q4? Or is this something that gets to the mid-80s or the low-80s in Q4 and Q1? And then just on the margins, just can you remind us, given I think that there was a slight tick down in the guide on operating margins. Like what’s the — it sounds like the first half will be continually challenged from a revenue growth perspective. Are you going to grow OpEx by more than or less than revenue growth during this period?
Cameron Hyzer: So with respect to net retention, it continues to be a tough world out there. I think when we set up the guidance, we do assume that it continues to have an impact and a negative impact on net retention. And then with respect to margins, our goal right now is to maintain margins in that 40% level on an annual basis. I think historically, if you look at seasonality of margins, we do tend to have somewhat lower margins in Q1 and Q2 just based on the way that revenue recognition sets up and typical merit cycles and so forth. So realistically, I think we’re aiming to keep the annual margin at that 40% level, but I think you should — we should continue to think about seasonality and how the historical seasonality of margins has played out.
Alex Zukin: Got it. And then just a clarifying follow-up. Just — I know we’re not guiding to next year at this point given the lack of visibility. But again, if you just take the second half of days adjusted sales revenue growth or sales outstanding, is that the right way that we should at least start to conceptualize the first half for next year, just so we can kind of all get our models in the zone.
Cameron Hyzer: Yes. So I think we’ve consistently said that we continue to see challenges with respect to the environment, and we’ll see challenges through at least Q1 of 2024. So, in my mind, the range of sequential growth that we’ve seen in 2023 is a good starting point for that time period. Certainly, we think that there’s the opportunity to accelerate after that, but I don’t want us to get ahead of ourselves as to when that acceleration will occur just based on the uncertainty in the market.
Operator: Our next question comes from Elizabeth Porter with Morgan Stanley.
Unidentified Analyst: You have Brian Bressner [ph] on for Elizabeth Porter. Thanks for taking the questions. On sales efficiency, you mentioned in Q2 that trends ticked down slightly in June after showing signs of stabilization in Q1. Any update maybe on how this particular metric performed in the quarter? And what steps you can take to kind of help this into a better demand environment going forward?
Cameron Hyzer: Yes, sure. So, the environment does continue to get more challenging. And that particularly impacts sales efficiency, more so existing customer sales efficiency than anything else. So, that efficiency with our existing customers does continue to be challenged and is more challenging in Q3 relative to Q2. New sales efficiency continues to hold in there reasonably well. I think, as we’ve — as we’ve talked about before, we do see a much higher concentration of our new sales with companies outside of the technology space, which has helped us basically go after customers that are more — where there’s more demand right now.
Unidentified Analyst: Maybe just a quick follow-up. You made a few recent changes at the leadership level. Can you just — any quick comments on any changes or impacts we should expect from these going forward?
Henry Schuck: Yes. Look, I think — and I talked about it in the call, I think the big opportunity for me and for the business is a flattening of the organization that gets me closer to our customer base, closer to revenue and customer success and customer support. I, over the last 60 days, have met with over 200 of our account executives and account managers and roundtables across the Company. I’m constantly meeting with our customers. And I don’t anticipate any meaningful changes that come from these leadership changes.
Operator: Our next question comes from Kash Rangan with Goldman Sachs.
Kash Rangan: So how seriously is the Company taking the attrition rates, which seem to have spiked, especially among as you characterize the mid-market business? Some of it is not controllable if somebody is going out of business or just adding fewer salespeople or letting go of salespeople completely understand. But when you isolate those instances out, what are you learning from the engagement with the product itself that you can make it a stickier proposition that is really part of a complete loop that it’s impossible to get unhinged from the data source that you guys have built up? Because it seems to me that the attrition should be contained better than what you’re experiencing. But I’m curious to get your thoughts on how you plan to fix this.
Henry Schuck: I think that’s right. I think we’ve been thinking about — we think about this in a number of ways. And if I think about it departmentally, if I start with product and engineering, we’ve been working really hard to simplify the user experience in our platform and make sure that our customers are not just using ZoomInfo as a lookup tool, but actually plugging it in through our workflow solution to an ongoing workflow. What we’ve seen this year is the NPS scores are up every quarter. In course, our NPS score was up 20-plus points on our core SalesOS platform. It’s up 7 points year-over-year and product engagement is also up meaningfully. And so, we’re focused on making the product easier to use and then also plugging that product into an ongoing sales or marketing person’s workflow.
