Good day, everyone, and welcome to today's GitLab third quarter fiscal year 2026 conference call. At this time, all participants are in a view and listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. If you would like to ask a question, please use the raise hand feature located in the menu at the bottom of your Zoom toolbar. In addition, ensure your Zoom name reflects the full name and firm you are with. If you are joining via phone, you may press 9 to ask a question. Please note this call is being recorded. And it is now my pleasure to turn the conference over to Yao Chu.

Good afternoon. We appreciate you joining us for GitLab's third quarter 2026 Financial Results Conference Call. With me are Bill Staples, our CEO, and James Shen, our Interim CFO. During this afternoon's call, we will provide an overview of the business, commentary on our third quarter results, and guidance for the fourth quarter and fiscal year 2026. Before we begin, I will cover the Safe Harbor statement. I would like to direct you to the cautionary statement regarding forward-looking statements on Page two of our presentation and in our earnings release issued earlier today, both of which are available under the Investor Relations section of our website. The presentation and earnings release include a discussion of certain risks, uncertainties, assumptions, and other factors that could cause the results to differ from those expressed in any forward-looking statements within the meaning of the Private Securities Litigation Reform Act. As is customary, the content of today's call and presentation will be governed by this language. Additionally, during today's call, we will be discussing certain non-GAAP financial measures. These non-GAAP financial measures exclude certain unusual or non-recurring items that management believes impact the comparability of the periods referenced. Please refer to our earnings release and presentation materials for additional information regarding these non-GAAP financial measures and the reconciliations to the most directly comparable GAAP measure. I will now turn the call over to Bill. Bill?

Thank you, Yao, and good afternoon, everyone. Thank you for joining us today. I am pleased to report strong third quarter results. Revenue grew 25% year over year to $244 million, two points above our Q3 guidance. Non-GAAP operating margin reached 18%, a full five points above our Q3 guidance. It is my first anniversary as GitLab's CEO, and I wake up every day feeling incredibly lucky to build upon the foundation that Sid and the team have created. When I first got here, I said three things. There has never been a better time to serve developers. We are in the early stages of how software gets transformed through AI. And GitLab sits at the heart of the software development life cycle and has the best and most comprehensive platform to enable this transformation. My conviction in the company and our opportunity has only grown stronger. A year into this journey and hundreds of customer conversations later, I can confidently say that we are stronger today than even one year ago. We have built the foundation to deliver more value through AI in the coming year, architecting GitLab and Duo Agent platform to remain mission-critical and delivering increasing value as LLMs and markets evolve. I truly believe there has never been a more exciting time to be at GitLab. We are seeing the rise of AI expand our total addressable market. AI has drastically reduced barriers to entry of software creation and is driving the marginal cost of code generation towards zero. However, software is more than just code. Software with all its embedded business processes and sensitive data is business-critical. The global economy runs on software. Human lives rely on software. Businesses cannot afford negligence in their quality assurance, security, compliance, or governance of their software development and…

Thank you, Bill. And thanks again to everyone for joining us today. I am happy to report that we beat our guidance across the board as the team executed through a dynamic environment. Third quarter revenue reached $244 million. An increase of 25% from Q3 of the prior year. We now have 10,475 customers, Our larger customer cohort with ARR of at least $5,000, which contributed over 95% of total ARR in Q3. of $100,000 plus in ARR increased 23% year over year and reached 1,405. Our customer base is well diversified across industry, and geography. And no single customer accounts for more than 2% of ARR. On the expansion front, we ended the quarter with a dollar-based net retention rate, or DBNRR, of 119%. Total RPO grew 27% year over year to $1 billion while CRPO grew 28% year over year to $659 million. We remain pleased with this very healthy growth rate. Non-GAAP gross margin was 89% for the quarter. The team continues to do a good job of driving operating efficiencies even as our SaaS business has become a greater portion of our mix. Driven in part by the continued strength in GitLab dedicated and 31% of total revenue and grew 36% year over year. Q3 non-GAAP operating income was $43.7 million, compared to $25.9 million in Q3 of last year. Non-GAAP operating margin was 17.9% compared to 13.2%. In Q3 of last year, an increase of approximately 470 basis points year over year. We are making steady progress on building out a dedicated first order team and increasing our quota-carrying capacity. Q3 FY 2026 adjusted free cash flow was $27.2 million, with an adjusted free cash flow margin of 11.1%. Compared to $9.7 million in the prior year. We ended the quarter with $1.2 billion in…

At this time, if you would like to ask a question, please use the raise hand function located on your Zoom toolbar. Or if you have joined by phone, please press 9. We request to limit yourself to one question in the interest of time. Take our first question from Koji Akeda from Bank of America. A following question will be from Matt Hedberg from RBC. Koji, go ahead, please.

Yep. Hey, guys. Thanks so much for taking the question. My one question here is on the guide, the fourth quarter guide. And specifically on subscription revenue growth. You did grow subscription revenue in the third quarter 27%. That is pretty darn good for a, you know, primarily a seat-based model. But it is a deceleration from 30% last quarter and I do hear you on the public sector softness. I get that. And so I wanted to ask on the implied fourth quarter total revenue guide of 19%. Can you help us walk us through a little bit more on the demand environment, any sort of Fed sector catch-up that has already happened? Pipeline coverage into the fourth quarter, and any additional color on how to think about what the guide means for fourth quarter subscription revenue growth. Thank you.

Thanks, Koji. You know, our guidance approach this quarter was fairly similar to the one we took last quarter. We developed independent roll-ups across the field. Across CRO leadership teams. And across the finance team. You know, the prudence that we called out last quarter for both the SMB weakness and the go-to-market disruption were well warranted. And some of that remains into Q4. Additionally, as you called out, we will see some lingering effects from the recent US government shutdown. Guidance, you know, at the end of the day, reflects our best view of the business today. With what we know, and we feel good about the guidance heading into Q4.

Next question, Matt Hedberg followed by Rob Owens from Piper Sandler. Matt, go ahead, please.

Great. Thanks, Yao, for the question. Bill, in your prepared remarks, you noted progress on the first order business was better than last quarter, but I think you said it is still not where it needs to be yet. Understanding this is probably a multi-quarter trend, could you provide a bit more color on from your perspective, what is left from the team? And perhaps how long we think to see some of the full benefits from that?

Yeah. Thanks, Matt. As we shared last quarter, we decided to hire a global leader focused just on acquiring new business reporting to the CRO. I am happy to share that we closed that search and hired the individual. Exceptional executive that has now joined us and is onboarding. We are beginning the hiring ramp for that team. Which again will be a global team reporting to him directly into the CRO. Expect that hiring ramp to take a couple of quarters with results in the back half of FY 2027. In addition, I will share on the product-led growth front. Manav, our chief product and marketing officer, has now been in seat for a quarter. Has begun digging in there. Looking really at two things with regard to product-led growth. First, tightening the feedback loop with customers who are earlier in their journey with GitLab, as well as removing friction in the customer journey to make it easier to go from a free into a paid product with GitLab. And the early results there are really promising. It is exciting to see the efficiency in the funnel improving. Very early results. But here again, I would expect, you know, these kinds of incremental gains to aggregate over time. And would expect to see that show up in terms of new customer acquisition acceleration the later half of FY 2027.

Great. Next question, Rob Owens from Piper Sandler followed by Sanjit Singh from Morgan Stanley. Rob, go ahead, please.

Great. Thank you guys for taking my question. I was hoping you could drill down a little bit more into the Fed impact that you spoke about, you know, since it probably impacts the license line. Anything you can do to quantify that would be great. And then was that something that impacted your retention rate as well, or are there other things at play in that metric, ticking down a couple points sequentially? Thank you. Rob, any important thing to keep in mind here is that our long-term public sector thesis remains very much intact. You know, we are the preferred software factory to a lot of these countries. Leading federal agencies. PubSec is about 12% of our ARR, Haven't quantified specifically the headwind that we saw in Q3. What I would say is that we did see disruption from both the shutdown and the ongoing effects of Doge that are rolling through the government and we are very much partnered with our customers and these agencies. In helping them overcome these challenges.

Next question from Sanjit followed by Shrenik Kothari from Baird. Sanjit, go ahead, please.

Yeah. Can you hear me?

We can.

Awesome. Thank you. Bill, I think we can all agree that no matter what the debate is around seat-based models, there is tons of software being developed and created particularly right now. And, again, you pointed to some of the metrics around activity and usage in the platform, which is well above the revenue growth that you guys are delivering at least for right now. And so it is kind of a longer-term question, Bill, but what is the ultimate, you know, ultimate sort of answer solution on how to get activity in the platform to converge with the revenue growth that you would like to see. Is that is the answer there sort of dual agents, or is there anything beyond that? That we should be thinking about over the medium term? Good question, Sanjit. Yes.

I believe the medium to long-term answer there does lie in our shift from a pure seat-based business model to more of a hybrid seat plus usage-based business model, as we introduce Duo Agent platform I mentioned in my prepared remarks, that we are on the cusp of that in the coming weeks, declaring general availability and introducing pricing. So that will help monetize the activities downstream from AI code generation. By bringing AI acceleration across the software life cycle and solving that AI paradox that we talked about in our prepared remarks. In addition to that, we are looking at incremental innovation on top of our premium and ultimate SKUs which, you know, provide customers additive value at an incremental cost, which would also be part of our FY '27 road map and provide new monetization opportunities as well.

Great. Next question, Shrenik Kothari from Baird, followed by Raimo Lenschow from Barclays. Shrenik, go ahead, please.

Hey, guys. This is Zach on for Shrenik. Thanks for taking the question. So one on Duo for me. You know, you have consistently emphasized Duo's arch importance and its mission-critical value. But how are you really tracking the monetization of Duo-specific capabilities? Today versus just core DevSecOps or CICD functionality? And then maybe what percentage of new ACV includes Duo or Duo-related features? Thanks.

Yeah. Today, in our Duo Pro and Duo Enterprise products, they are monetized with seat-based add-ons. And we have not shared the specifics of the revenue contribution of those products. But they have been in the early stages. What we did earlier this year is shift or pivot from a use case-driven innovation agenda around AI to a platform-driven agenda. Meaning, we have augmented our core platform with AI capabilities at every layer, unlocking an agentic approach to AI that can help customers solve any number of challenges across the software life cycle. It allows them to choose the best-in-class AI tools, like those from Amazon, Google, OpenAI, and Anthropic. As well as create their own agents using Duo technology to solve, again, any class of engineering problem across the software life cycle. That has been in beta now for a couple of quarters. And is reaching general availability. And will introduce usage-based pricing once we reach general availability. So the very early stages of both the innovation and introduction of that monetization stream but it is the tone and the conversation with customers I have engaged over the last year on the topic of AI just continues to grow stronger and more excited about the platform approach that we are now taking. So I am really excited about the future opportunity. Do see that as expanding our TAM and incredible new value to customers.

Great. Next question, Raimo Lenschow from Barclays. By Howard Ma from Guggenheim. Raimo, go ahead, please.

Hey. Thanks. Thanks for squeezing me in. Bill, one for you. Like, the, you know, the SMB weakness is obviously something that impacts everyone. And it is just, you know, it is, you know, you cannot control that. But is there anything that you could do, for example, from a SKU perspective? Etcetera, to kind of help kind of play better in market? Anything is doable, or do we just have to wait for the kind of improvement in the overall market sentiment there? Thank you.

Yeah. SMB is a very small share of our overall revenue. And not something we optimize for from a business, you know, strategy and go-to-market perspective. However, it is in particular, business, you know, start-ups and smaller companies that are on a growth path. Are important for us to, you know, drive awareness and early adoption. On. I would say, primary approach there has been to deliver a really great free product in the form of our open-source packages and free tier on gitlab.com. Which we have seen healthy adoption of in a very, very broad community. I do think Duo Agent platform brings new opportunities for us to convert those free customers into a first paid engagement with GitLab as we deliver AI on top of those free products in the coming year. Obviously, that has not been in a path that we have pursued to date with the Duo Pro and Duo Enterprise add-ons. But it is something that I think we will look seriously at Duo agent platform reaches GA. And I do think it plays into customers of all sizes who want to start their GitLab journey on a free DevSecOps platform but are willing and excited to pay for AI because they understand incredible value and the cost associated with delivering that.

Great. Next question, Howard Ma Guggenheim followed by Mike Cikos from Needham. Howard, go ahead, please.

Great. Thanks. Last quarter, you shared a stat that seat count is double digits year over year and has been accelerating. My question is, does that trend still hold? And what does seat count growth look when you exclude Duo seats? Howard.

That was a one-time disclosure that we gave last quarter to help you think through and understand the seat dynamics in the business. We are happy with the seat growth. This quarter, but we will not comment on the specifics that we gave last quarter.

Great. Next question, Mike Cikos followed by Needham followed by Kingsley Crane from Canaccord. Mike, go ahead, please.

Great. Thanks, team. I just wanted to come back to the public sector element for a second, and I appreciate the disclosure in the headwinds from that shutdown. Can you help us parse out when we think about the 4Q guide that we have versus the 3Q results that you guys just posted? Are you expecting the public sector headwind from the shutdown in Doge to actually compound or increase in magnitude when we think about this January? And, again, I know we are getting to, I guess, a fine-tooth comb here, but just wanted to see how you guys are thinking about your assumptions here as we look at this forecast. Thank you so much.

Yeah. Thanks, Mike, for the question. You know, I comment on the specific magnitude and whether larger or smaller quarter over quarter. What I would say is that we are seeing lingering effects from the shutdown. You know, the US federal government does not turn on overnight. And we are working with our customers through these deals and renewals that have pushed from Q3 into Q4.

Great. Next question, Kingsley Crane, Canaccord, followed by Derrick Wood from TD Cohen. Kingsley, go ahead, please.

Great. Thank you. And it was nice to hear about the Duo agent expansions even pre-GA. I know investors are eager to see the impact of '27? Thank you.

Kingsley, could you repeat your question, please? You have cut out on our end. Can you hear us?

Yes. Can you hear me?

Yep. We lost you at Investors. Right? Excited, and then you cut out. Please repeat the question.

Sure. So investors are excited about the impact of DuoAgent in the market, the eventual impact. Just want to know more about the product proof points that you are evaluating signal GA readiness and then how to think about the ramp in twenty-seven. Thank you.

Yeah. We have said a number of criteria to evaluate readiness. You know, first and foremost, being the reliability, the performance, and the overall stability of the platform in meeting our customers' expectations. Also measuring the quality of the responsiveness and the responses of the agents that we are building and our customers' ability to build their own custom agents and get quality responses. And then finally, you know, we obviously must ensure that we meet our own high-security standards. And avoid shipping vulnerabilities or exposing our customers to any kind of vulnerability. So a number of quality-related criteria that we are measuring in addition to customer adoption and usage. And we think we are reaching the point of meeting all of that criteria as I mentioned in the coming weeks. And once we do, we will be declaring general availability. In terms of adoption and usage, you know, in the quarters ahead, it is hard to forecast exactly how fast that will go. I will just repeat what I have shared previously, which is you know, 70% of our revenue is based on self-managed customers who do require an upgrade to take advantage of Duo Agent platform, and that does take often multiple quarters to get a majority of the customer base onto a new version. So, you know, we will see some slowness there versus a pure cloud SaaS business. And you know, I will also share I am pretty excited about the opportunity to deliver the Duo agent platform into the public sector since that has been a topic of conversation today. Unlike many AI tools, in the market today, which rely completely on cloud-hosted models, DuoAgent platform delivers both cloud-hosted models, but also the ability to run-in completely air-gapped environments against custom self-hosted models which many of our public sector customers have as a configuration today. So we look forward to delivering that into those environments as those customers are able to adopt.

Great. Next question. Derek Wood from TD Cohen followed by Cyrus Nautica from Wells Fargo. Derek, go ahead please. Derek, are you on? It looks like your phone is muted.

Sorry about that. Okay. Can you hear me?

We can.

Yeah. Okay. Thanks, guys. James, can you give us the mix within the net revenue retention rate of seats versus tier upgrades versus price yield? And I think last Q4, you guys had a very large seat expansion deal. Any color, to provide on how to think about the impact on NRR? As we anniversary this large deal in Q4 this year?

Derek, I am happy to share the mix of DB NRR this quarter, and I also want to talk about this specific disclosure more broadly. So Q3 was similar to Q2, where seats contributed slightly over 80% of the mix. Yield was about 10% and the remaining from up-tiering. As our business evolves, this disclosure will become less relevant, both because we have evolved from a two SKU company into multiple SKUs but also because we are augmenting our seat-based business with a usage-based business that Bill referred to. And so we will look to share more in the quarters to come on this topic.

Great. Next question, Cyrus from Wells Fargo followed by Jason Celino from KeyBanc. Cyrus, go ahead, please.

Hey, guys. It is Ryan McWilliams on for Cyrus. So now that you are past the price increase, and you are adding more features, onto your more premium plans, and since you have seen competitors for their higher-end plans, like Cursor and Cloudcode come in at $200 a month for those plans, think there is an opportunity to take price on GitLab's higher-end plans? As AI becomes more integral, to DevOps overall? What do you think, capturing that through usage is more likely?

Yeah. Our plan is to capture through usage. I believe, you know, the right long-term approach to monetization is to have a pricing plan that provides an equal exchange in value for cost. And what I see competitors doing with AI pricing is really all over the place, and it has been rapidly evolving. I expect some evolution with regard to our price. But rather than introduce another seat-based price, as I shared earlier, we will be moving to a more usage-based pricing model where customers can pre-commit upfront for usage, to earn the very best rates. But that commitment is a pool of usage that could be shared across all users. And as we have tested that and introduced it to customers, they are very excited about that approach. And I believe, ultimately, when customers are excited and see the value they buy more over time.

Great. Next question, Jason Celino from KeyBanc followed by Steve Koenig from Macquarie. Jason, go ahead please.

Perfect. Thank you. Bill, you in your prepared remarks, you talked about some interesting stats. On the deployment activity you are seeing across the platform. You know, I forget the exact percentages, but how much of this elevated activity you think is from, you know, customers developing applications, you know, for AI. Like the underlying development activity. Or do you think it is from more, you know, better productivity from, you know, AI going tools? Hope you understand kind of the difference in the question, but curious you are seeing.

Yeah. It is exciting to see the downstream effects of AI coding on the platform. And I think it is driven through a mix of things. Probably both of the dynamics that you described. But, you know, ultimately, what a software team is doing is not just thinking about the code they are generating. They are thinking about the innovation they are delivering to customers. That is really, you know, the full software life cycle that is required. Everything from, you know, planning those changes, to testing them, to integrating deploying them, making sure that they meet the security and compliance standards. And that is what GitLab does. And because the code volumes are increasing, because engineers are able to take on more projects faster we see that acceleration in the rest of the stages of the software life cycle. To date, none of those have been AI accelerated, That is what we are doing with Duo Agent platform. And once we bring that full life cycle acceleration, I believe, we will begin to see the monetization benefits that we have talked about on the call. Because customers want to take advantage of those as well to accelerate not just the cogeneration, but the entire software delivery process.

Great. Next question, Steve Koenig from Macquarie. By Miller Jump from Truist. Steve, go ahead, please.

Okay. Thanks, Yao. Can you guys hear me okay?

We can.

Great. Okay. Yeah. So maybe building on the last question, you know, Bill, I understand, like, the platform, the value there is holistically throughout the software development life cycle. I am wondering, as you begin to deploy Duo Agent platform, is generally available, and it starts to be adopted. What where do you think it is going to make the most immediate impact in terms of improving productivity of the various aspects of the life cycle? And then if I could just sneak in, I am wondering more color on the SMB softness. Is that more of a macro or execution on your part? Thanks a lot for taking my question.

Yeah. I will answer the first part on Duo, and maybe, James, you can take the SMB one. So on Duo Agent platform, the important thing to understand about it versus other AI tools is that it is really a platform approach to AI, meaning customers can take advantage of the capabilities of the platform that is now AI native to orchestrate actions with AI tools for any class of engineering problem. So we have seen customers take advantage of it, for example, in terms of helping them plan and document what they are going to go work on upfront before the code even gets generated. To help analyze bugs and help triage and prioritize the work that needs to be done in code. We have also seen them take advantage of Duo Agent platform to author and to review the code. We have seen them take advantage of Duo Agent platform to do security analysis. To do prioritization, based on the advanced characteristics that we capture as part of our security scanning capabilities. We have seen them take advantage of it in terms of troubleshooting pipelines that are failing when, you know, code is not passing the quality standards, security standards, or other compliance guardrails that a company has put in place. So it is really across the board. And that is what is so exciting because, you know, having spent many decades now, software engineering, the process of software engineering is very complex. And there is any number of ways that things can break down. What customers will be able to do with dual agent platform instead of waiting for a human to engage in a manual process to recover from any one of those failure classes or any of those work tasks, they can now apply an agent that can automatically work on their behalf to triage, to analyze, to debug, and to recommend a fix or even automate a fix. And we believe that is what is going to bring incredible value to our customers. James, on the SMB question?

Yeah. Just quickly on SMB. This is segment-specific weakness that we have called out for a few quarters now. What I would say is a few things. One is we have a very strong free offering as you heard Bill talk about, and we see price sensitivity in this so both price and overall spend sensitivity. And as these are coming up for renewal, there is a lot of scrutiny and auditing around license usage. SMB is a small part of our business. It is roughly about 8% of ARR. And we are assuming that this weakness continues into Q4 in our guidance.

Great. Next question from Miller Jump from Truist followed by Mark Cash from Raymond James. Miller, go ahead, please.

Hey. Great. Thank you for taking the question. You all mentioned in the prepared remarks that all of your largest expansions in the quarter were with customers using some form of AI tooling. I guess, I am wondering, are most of your customers using AI tooling at this point? Or is that indicative of a smaller subset of the group? And, you know, was there any difference in the growth drivers for those accounts between the seats, customer yield, and up-tiering that you talked about for the broader business? Thanks.

Yeah. I think I shared last quarter, we did a customer survey where we analyzed a few different questions around customer AI tool usage, there. Forecast in terms of, you know, increased GitLab usage, as well as seats. And we did see in that survey fairly pervasive use of AI tools, along with GitLab. It is important to remember it is an and and not an or. Many times, I have heard investors refer to some of these other AI tools as competitors. And while it is clear there is some overlap in terms of what we are doing and what they are doing, ultimately, customers see them as complementary because they serve a variety of different use cases and support one another. So, yes, I believe AI tool usage is pervasive across our customer base. Many of them implementing multiple AI tools as part of their current AI strategy. And, I believe we are in a good position with Duo Agent platform to capture our fair share of that demand because we are solving inherently different problems than other AI tools on the market.

Great. Final question will come from Mark Cash of Raymond James, and I will pass it over to Bill for closing remarks. Mark, go ahead, please.

Yeah. Thank you. Yeah. Bill, maybe building on that last question. So we have seen some larger players like OpenAI and Google add more DevSecOps functionality alongside the smaller AI natives this quarter, and just kind of curious how you are considering deploying that $1.2 billion of cash and really strong free cash flow we are seeing maybe help further wedge GitLab's differentiation that spans this software development lifecycle against those guys. Appreciate it. Thank you.

Yeah. There is probably two parts to that question. You know, how do I think about what Git how GitLab competes with small and large vendors? And then there is, you know, deployment of cash. Maybe, James, you can take the second part. I will take the first part. Yep. Really, you know, when you think about what agents are made up, there are really four ingredients to every agent. There is an LLM, and we provide, like, almost every vendor access to all of the major foundational LLMs on the market. And the cost of those is going to continue to go down. The quality of those is going to continue to go up. Not a lot of differentiation to be had there. It is just, like, electricity for any kind of electronic system. Second part of an agent is the prompt that steers the LLM into solving the problem. And that is, you know, defined with human language, and, again, here, the IP value is fairly shallow. There are many, many libraries of open-source prompts. Out there and available. There are only so many ways you can tell and then allow them to solve the problem. And, you know, we provide dual agents with great prompts out of the box, but we also allow customers to customize and extend those prompts. So a little level of extensibility beyond what competitors offer today. But those two ingredients, would say, largely are commodity, and it is really the second two ingredients that make GitLab stand out and that even the large AI vendors cannot match. The first is context. We provide not only the system of record for all of the source code that our customer store, but all of the changes to that source code over time all of…

Yep. On the cash position, you know, the $1.2 billion of cash and investments really puts us in a position of strength. In this market. And, you know, we have a strong track record of fiscal discipline here, and we are constantly looking at the most optimal avenues for capital allocation. That best deliver value both to our customers and to our shareholders.

Great. With that, that concludes our Q&A. I would like now to turn the call over to Bill for closing remarks. Bill, go ahead, please.

Hey. Thank you everyone for joining today's call. One year into my journey with GitLab, and I believe we are executing stronger than ever with a blueprint towards scaled responsible growth. As we shared, we are expanding our sales capacity in our field, investing behind a dedicated first order team in order to take advantage of our growing TAM. Product innovation and differentiation are also accelerating, and we are earning our right to define the future of software development with AI. We are now on the cusp of declaring general availability for our Agentic AI platform which will evolve our business model from a purely seat-based model to a hybrid seat plus usage-based model as we create new pathways to deliver value for our customers. These are all really significant structural improvements to GitLab. One thing that is not changing remains committed to investing and building for responsible growth, to drive shareholder value. I will close the call where I started off. There has never been a more exciting time to be at GitLab. James and I are in Phoenix, Arizona this week, and we will be speaking at the UBS Global Technology and AI Conference. We hope to see you there or elsewhere during the quarter. Thank you again, and good night.