Why don't we go ahead and kick this off? Welcome everybody to our 2nd quarter 2021 earnings call. I'm Jason Tsai, the new Head of IR here at Zendesk. We are pleased to report our results. Joining me on the call today are Mikkel Svane, Founder, CEO, and Chairman of the Board, and Shelagh Glaser, our new Chief Financial Officer. During the course of today's call, we may make forward-looking statements, such as statements regarding our future financial performance, product development, growth prospects, ability to attract and retain customers, and ability to compete effectively. The assumptions, risks, and factors that could affect our actual results are contained in our earnings press release and in the risk factor section of our prior and subsequent filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31st, 2020, and our upcoming quarterly report on Form 10-Q for the quarter ended June 30th, 2021. We undertake no obligation to update these statements after today's presentation or to conform these statements to actual results or to changes in our expectations, except as required by law. Please refer to today's earnings release for more information regarding forward-looking statements. During this call, we will present both GAAP and non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, not as a substitute or in isolation from, our GAAP financial information. You can find additional disclosures regarding our non-GAAP financial measures, including reconciliations with the comparable GAAP financial measures in today's earnings press release and shareholder letter. For certain non-GAAP financial measures for prior periods in the earnings press releases for such prior periods, all of which are available on our investor relations website. With this brief introduction, I'd like to turn the call over to Mikkel. Thank you, Jason, for this very brief introduction. Before I get started, I want to officially welcome you to the team. Welcome, Jason, and of course, welcome Shelagh, our new CFO. Very happy to be with you here on this call. I also want to say thanks to Marc Cabi, who I know is somewhere in the wings here of the call. Thanks to you for stepping in while we make this transition. Turning to our business, we accelerated our revenue growth this quarter to 29% year-over-year, compared to 26% last quarter. We saw both our bookings and our RPO grow by record dollar amounts, driven by strong increases in sales to enterprise customers and the continued adoption of Zendesk Suite. The changing makeup of our customer base and the products they use are translating to longer customer engagements with higher retention. While our record Q2 booking performance and key metrics reflects this fundamental strength of our business, we have updated our modeling and forecast to adjust for pacing and usage trends that resulted in quarterly revenue for this quarter that was at the lower end of our expected range. Shelagh Glaser will have the absolute pleasure of providing you with greater details on that in a minute. In what is now a digital-first economy, our customers have to deliver the real-time experiences that are expected in an online on-demand world. That means an increasing number of people are trying to reach customer service through new channels like social messaging, chat. That is one of the reasons why over now 8,000 customers are using the Zendesk Suite. It's our messaging-centric, radically simple customer service solution. What's more, Suite is a significant driver of our increase in average deal size, all while giving customers more relevant and more powerful capabilities. Broadly speaking, Zendesk continues to win because we deliver best-in-class solutions without a long, complicated IT deployment. We've seen this hold true particularly for leading gaming platforms that are experiencing unprecedented surges in users and support interactions. Our products enables the interactive, immediate help that gamers expect and that gamers demand. This quarter, we added new logos, including the world's largest video game retailer, and we expanded our relationships with existing customers, such as our good friends from Roblox. Now we support more than over 50 large online and mobile gaming platforms that serve nearly 3 billion gamers worldwide. The foundation of our business has never been stronger, and I am excited about both our near and long-term growth opportunities. With that, I will turn the call over to Shelagh to discuss the key points of the quarter. Take it away, Shelagh. Great. Thank you, Mikkel, and thank you everyone for your time today. Our strong momentum continues. In this quarter, we delivered $318.2 million, growing 29% year-over-year, an acceleration from last quarter's growth of 26%. Both net bookings and total RPO achieved record levels driven by strong enterprise penetration and Suite adoption. As Mikkel mentioned, changes to our booking pacing impacted this quarter's revenue. A greater percentage of our bookings was closed later in the quarter than last year and our historical trends. We expect this to become persistent as we continue our push into the enterprise, which as of Q2, has grown to 35% of our total ARR. We also adjusted our model for certain non-recurring usage revenue for products like Talk, for which volatility was at the high end at the onset of the pandemic in 2020. Our forecast for the remainder of the year reflect our updated understanding of these trends. The performance of our Suite has been outstanding. It continues to surpass our expectations and now makes up more than 16% of our total ARR, up from 7% last quarter. In connection with the launch of our Suite this year, we made the strategic decision to eliminate our lower end, lower ARR product plans. As expected, this decision is causing a leveling off in our total logos. We expect this trend to continue for several quarters as the customer base rotates out of these lower value plans towards Suite. Suite adoption drives better retention, predictability, and longer-term growth, and positively impacts our net expansion rate. This quarter, our NER was 120%, at the upper end of our healthy range of 110%-120%, and up from 114% last quarter. We may see NER increase in the near term as we graduate from the spike in churning contraction we experienced during the onset of the pandemic, but we do expect to stay in this range long term. Turning to margins, GAAP gross margin for the second quarter was 79.0%, up nearly 4 percentage points year-on-year. Non-GAAP gross margin was 81.3%, up more than three points year-over-year. Gross margin improvement was largely driven by revenue scale, increased optimization of our product support personnel cost, and efficiencies from our hosting infrastructure. GAAP operating margin declined by half a percentage point year-over-year to -13.3%. Non-GAAP operating margin declined by 0.7 percentage points, largely driven by higher personnel costs as we continue to invest in our growing business. Free cash flow was $20.9 million in the second quarter. Now, moving on to guidance. Given our strong Q2 2021 results and continued momentum with our customers, we are reaffirming our raise from last quarter and raising the lower end of our full year 2021 revenue guidance. We now expect full year 2021 revenue to be in the range of $1.310 billion-$1.318 billion, which represents approximately 28% growth year- over- year at the midpoint. We continue to expect our non-GAAP operating income to be in the range of $96 million-$101 million. We expect full year free cash flow for 2021 to increase and be in the range of $120 million-$130 million. Our higher free cash flow estimate for the year represents operational improvements that are resulting in stronger collections performance. To close, I would like to thank Marc Cabi, our Deputy CFO, for all of his support as I've transitioned to Zendesk. My first two months here have reinforced why I joined Zendesk. We have exceptional talent with a true passion for customer success and tremendous growth opportunity ahead of us. I look forward to growing and scaling our business, building on our strong foundation. You will hear more on this front at our investor meeting in November. Expect invitations shortly. With that, I will turn it back over to Jason for Q&A. Thank you, Shelagh. As we've done for the last few quarters, we've put everybody in a randomizer. First up is Brad Sills of BofA. Please go ahead. Unmute your mic and turn on your camera. Great. Thanks, guys. Sorry about that. Excellent. I just wanted to ask a question, Shelagh, just around the move to consumption that you mentioned and the impact this quarter. If you could just double-click a little bit on that, what drove, you mentioned some volatility in the prior year assumption, but was there any delta this quarter on your expectations on the consumption side for Talk? As we looked at it, the usage-based business, we saw quite a bit of volatility last year with the onset of COVID, and we saw a really rapid growth in the usage rates of Talk. As we started to come a bit out of it in the most recent quarter, we saw some of those growth trends attenuate. We're really adjusting based on sort of the new environment we're in. As we said, we've got a lot of customers that have moved up to Suite, and they're using some of the other messaging platforms. To some extent, it's a pretty unusual environment, COVID last year and then coming out of it a bit, and so we're adjusting our models for that. Got it. Great. Thanks so much for that. The net revenue retention acceleration, pretty meaningful this quarter. Congratulations on that result. Obviously, the Suite has a lot to do with that. Is there anything else you'd call out there from the product side that you're seeing that's driving that acceleration, in particular in some of those hard-hit industries that you've talked about in the past? Are they starting to come back with more expansion deals now? Any other color you can provide on that nice acceleration you saw in net revenue retention. Thank you. Suite has played a major role in the net expansion rate, certainly, and we've had tremendous success with the Suite nearly doubling since when it was introduced in the Q1 timeframe. We also are seeing some of the industries that were hard hit coming back. We've seen about 50% of that come back. There is a bit of a, as we bleed off some of the contraction we experienced during the COVID, there's some effect of that, too. Mm-hmm. Got it. Thank you so much, Shelagh. Thanks, Brad. The next question comes from Alan at Wolfe. Please unmute your mic and turn on your camera. Alan? Hey there. Thanks for taking my question. Can you give us a sense for what you saw in terms of the demand environment, both in the first half versus expectations for the second half? Would love to hear also how the selling environment is. Are certain geos having a bigger bounce back? How is strength in the enterprise versus small business? I have a follow-up. Shelagh, do you want to give a little color? Do you want me to ramble away a little bit here? You ramble, and then I'll jump on the back of your ramble. No, we are really positive about the demand that we've seen this quarter. It has been broad-based, but our enterprise business has been doing really well. You can see that throughout our metrics. We are very excited about that. We see, in general, just everything coming back. People are really gearing up for solidifying their plans. It's less hectic. It seems more balanced. It seems more prescriptive. It seems more intentional, the plans now. Last year was a lot of hectic activities, I would say. We feel really good about A lot of confidence after Q1, increasing confidence here after Q2, and we see that continuing. Globally, all regions overperformed. Very happy about that. Got it. Thank you for that color. Just as a follow-up, you now have the suite for about two quarters under your belt. It represents 16% of your ARR. Can you talk about the main drivers or limitations behind how big it can get as a percent of ARR exiting the year? Ultimately, what does success look like related to the suite for the year and going forward? Thank you. We have different success parameters. I think the adoption is beyond what we expected. The adoption is going really, really well. We want to see the usage of the new capabilities follow alongside that, and that's going really well, too. We see that trend continue for a while, and we don't have any constraints neither in how customers are using it or how they expect to use it that is setting any kind of limits to the adoption of what kind of adoption we can get of the suite. Yeah. I would say the estimate is that at least 60% of our customers would basically be aligned to Suite. As Mikkel said, it's going really beyond our expectations. We may find over time that there's even more applicability. Got it. Thank you. Thanks, Alan. The next question comes from Kirk Materne from Evercore. Go ahead, Kirk. Please unmute your mic and turn on your camera. I tried to turn on my camera, it wouldn't let me, so I'll just have to go with the voice over this. Shelagh Glaser, I'm sure you're going to get a lot of questions on this, but can you just talk about Jason Tsai's asked me to start my video. There we go. Anyway, can you just talk about what you're sort of embedding in the guidance from some of the consumption revenue? I think when you look at the quarter, the bookings were solid. RPO growth's really good. All the forward-looking metrics look really strong. NRR is obviously up. The guidance is sort of just coming up at the very bottom end of the range, not sort of moving up in aggregate. After this quarter, I assume you're being a little bit more conservative around the consumption part of the business. Sorry. Can you just give us some color on that? I think that would be probably helpful. Thanks. Certainly as we saw in Q2, some of the consumption revenue, the usage revenue attenuate. We're baking that into the forecast to ensure that we've kind of captured that key insight. In terms of thinking about the guidance, this is literally my first full quarter in the chair. I've got lots of opportunity to learn more deeply about the business and the contracts of the business. The way I really thought about guidance was enlightened by the Q2, enlightened, as you say, with the incredible strength we're seeing in subscription. Making sure we put a kind of a practical range in place as we navigate through this transition. Even me personally navigating through transition for the first full quarter in the chair. Well, Mikkel, one, two, three into the deep end to start. I have not been bored, so I've enjoyed every minute of it. Just maybe one follow-up. I don't know if this is for you or Mikkel, but the customers that contracted last year, they drew down. Are you seeing them come back? Are they adding seats back to the mix? Kind of how does that shape up for the rest of the year? Thanks very much. Yeah. Let me take that one. Yeah, as you said, last year, we saw significant impact to many industries that we support. As of now, we see about 50% of that coming back, approximately 50%. That's about the same that we saw in Q1. We're seeing that. We would assume over the next several quarters, we'll continue to see that come back. Okay. Thank you all. Thanks, Kirk. Next question comes from Ken Wong at Guggenheim. Please unmute your mic and turn on your camera. Thanks. Hey, Ken, we can't hear you. Hello? Can you guys hear me now? Yep. Okay. I had sort of a double mute going, so sorry about that. For you, Shelagh, as we think about the higher enterprise run rate that you guys are talking about, we do see it in some of the KPIs, obviously billings look pretty attractive. I guess, how should we think about maybe the second half kind of billings revenue dynamic there? Is there a scenario where perhaps billings will outpace revenue? I know that's not really a metric you guys necessarily guide to, but any color on that side would be particularly helpful with this interesting dynamic in Q2. We're continuing to see strength in enterprise. That was certainly in Q2, as we said, we saw a large acceleration, 50 deals over $250,000 ARR. We're continuing to see that. We're just seeing that those larger deals take longer to close. We saw that effect in Q2, and we're assuming that same effect for the balance of the year, that those larger, more complex deals just take a bit longer to close. We would expect that that trend continues, and we would expect that we continue to make lots of progress in the enterprise space. Got it. I guess as we think about that longer sales cycle, I guess, do you feel that that was partly maybe you guys weren't quite ready for that kind of a sales kind of negotiation process and something that you guys could potentially alleviate in the back half? Do you think it's just very much just the nature of as these deal sizes get larger and larger, we should just come to expect that extended sales cycle is what's going to be on tap? Mikkel has a lot of insight, I'm sure, here, but my own personal experience is typically enterprise is a longer sales cycle. Almost any product, any industry, it's just there's more approval levels and things like that that need to occur versus in a smaller business. I don't anticipate that the nature of those businesses changes. We're really just provisioning that into the forecast. SMB and commercial obviously have much more rapid pace, just due to the nature. Mikkel, I don't know if there's anything you'd want to add. No, that's fine, Shelagh. Ken, a lot of our revenue recognition is based on the pacing of the bookings, as you know, in the quarter. This model is based on historical data. That's also heavily influenced by what we saw last year. Last year was, as I would say, less intentional about purchases. There was a lot of activity, was less intentional. We have more intentional purchases right now and definitely more kind of enterprise deals. We see the model balancing or starting to gravitate more towards the end of the quarter, the last month of the quarter. That is the shift we've been seeing, and that Shelagh has built into our models going forward. Make sense? Yep. It does. Thank you, Mikkel. Thank you, Shelagh. Thanks, Ken. Thanks. The next question comes from Brent Bracelin over at Piper Sandler. Brent, please unmute your mic. Thanks. Hi, nice to virtually meet you here, Shelagh. I guess for me, listen, the Suite penetration doubling is fantastic. Enterprise adoption, really strong. The flip side to strong net expansion is maybe the contribution from new customers is not ramping maybe as fast as we think. What are the puts and takes relative to new customer lands that appear to be kind of recovering at a more subdued pace here? What can you do specifically to drive maybe a re-acceleration on new customer contribution here? Again, a lot of positive in the quarter. That was the 1 that kind of stood out as a question mark where you could do more. It might be tied to kind of the de-emphasis of those lower-end customers, but just that metric looked a little weak and any color there you could provide would be helpful. The one thing I would, when I kind of laid out the three drivers of the net expansion rate, the one thing that I would also lay out is we are coming off sort of a period the year prior that had a lot of contraction in it due to the COVID situation. Our intent and our focus is certainly the land and expand, but continuing to grow new customers. To some effect, the higher end of the range that we're seeing right now is a bit of the comparison quarters that were impacted by COVID. That's why we see it really as a short-term effect, not a long-term change in the business model. I think, Brent, your question is also about new customers. We actually had record new customer contribution this quarter, up remarkably compared to our second best quarter. If the indication you have, I don't know where you have that data, what you're pointing to, but the amount of logos, you're going to see a stabilization of that as we have terminated a lot of these kind of the low-end plans, and we see more and more customers choosing the Suite and migrating to the Suite. That's why you're going to see a stabilization over the next quarters as that number of logos is stabilizing. Does that make sense? Yeah. It sounds like there's some noise here as you abandoned some of those lower-end kind of standalone kind of products. We have to wash through that. It's kind of higher churn, lower-end customers, and the number of logos, you're going to see kind of a flattening for a while as we kind of wash that out. Got it. The new customer logo land sounds like it's been pretty strong. It was very strong this quarter. Very strong, yes. Perfect. Thank you. That's great clarification. Nice to meet you, Brent. Thanks. The next question comes from D.J. Hynes over at Canaccord. Please unmute your mic and turn on your camera. Hey, guys. Thanks for taking the question. Shelagh, two quick ones for you, maybe just to help put the revenue results in context this quarter. Can you talk about how much transactional revenue you get in a quarter? Second would just be how much revenue in a quarter comes from deals that are signed in that quarter? In terms of usage-based revenue, I think that's the first question that you have. We've talked about in the past, it's low single digits, but obviously since it's usage-based revenue, it's still booked and recognized inside the quarter. That's where some of the effects of the volatile Talk usage came into play. In terms of our pacing, as Mikkel talked about, obviously earlier in the quarter, we're able to recognize the majority of the revenue, and then the later in the quarter it is, most of the revenue recognition is going to be for subsequent quarters. As we start to move to a model where [mass] is the bigger month, as we move higher into enterprise, a lot of those effects will be for the subsequent quarter versus the current quarter. Yeah. Okay. Mikkel, maybe one for you. If we look at the customers that are onboarding over that $250,000 threshold, and we did pattern recognition on them, are there common characteristics? What would we pick up? What's the profile of the customer that's landing at that threshold for Zendesk? Our enterprise wins are very broad. A lot of them are in very traditional industries. Other of them are in very digital-first industries. We talk about the gaming industry, no doubt. The world of gaming is definitely exploding and we're working with a lot of these customers about that with their customer service. It's also we're working with breweries and electrical companies, and everybody has to embrace these newer channels that we now take for given when we engage with businesses. I would say it's very broad, our appetite, and it's very broad, the kind of demand we see in the market, also in the enterprise. Yeah. Okay. Thank you, guys. Great. Thanks, D.J. The next question comes from Taylor McGinnis over at UBS. Taylor, please go ahead. Please unmute your line, Taylor. Oh, can you hear me now? Yep. Okay, great. Thanks for taking the question. Sorry if I missed it earlier, but can you talk about the level of upsell you're seeing with Suite relative to the 20% you gave last quarter? I guess how much traction are you getting with single product customers in migrating to Suite versus multi-product customers? Maybe a third part of that is just on new logo activity, I'd be curious if you're seeing any interesting trends with Suite there. All the numbers. I think, yeah. We're seeing about the same that we saw in Q1, approximately the 20% upsell. I think we said in Q1 that the range was between 10% and 30%, and we saw 20% in Q1, and we're seeing 20% in Q2. We're continuing to see that as a positive trend, the average customer value of Suite versus non-Suite. In terms of the number of products that customers had and they're moving to Suite, I don't think I've got that at hand, but I would just say the substantial majority of the customers, the new customers coming in are moving on to Suite. Yeah, I think the metric is around 75% of new business is Suite. Got it. Awesome. That's really helpful. Thanks. Great. The next question comes from Derrick Wood over at Cowen. Please unmute your mic and turn on your camera. Yeah. Great. Can you hear me? Yeah. I hear the message that the enterprise business, you're working on bigger deals, and it's maybe a little bit more back-end loaded in the quarter. I want to ask a question on how to think about the shape of the second half. Do you see more direct enterprise business have seasonal uptick in Q2 and then softer seasonality in Q3 and then a bigger uptick in Q4? Do you see first half being slower, second half, including Q3, Q4, being stronger? Just trying to get a sense for the shape of the enterprise business and how to think about it in the model. Our expectation is continued strength in enterprise through the year. Since we're really still growing in that phase, we don't necessarily, I think, have quite the seasonality pattern that you're talking about. We're expecting to continue to be strong in enterprise in both Q3 and Q4. Okay. Maybe one for Mikkel. I wanted to hear about how you're thinking about Sunshine, and I think that there was going to be a bigger focus on Sunshine entering 2020. COVID hit. I think you backed off on it. It's more of an evangelical sale, and it involves maybe embracing developers and deeper integrations and beyond just the application scope. Whether you think you want to bring that back, especially as you're moving upmarket more where it's going to be more critical to have development platform. Would love to hear how you're thinking about that. Yeah. Our investments in developer tools has not decreased. We have kind of pivoted some of our investments on the platform kind of aspects of it to make these platform capabilities easily available for our enterprise customers. That is also part of why we see the increasing demand from the enterprise, that we are making these tools so they can extend, they can integrate, and they can customize Zendesk much, much better using our developer and platform capabilities. That is our current priority. Works really well in terms of making these things easily accessible for our larger enterprise customers. Okay. Thank you. Thanks, Derrick. Next question comes from Drew Foster over at Citi. Please go ahead, Drew. Drew? Hey, can you guys hear me okay? Yep. Can you hear me? Go ahead. Okay. I know you're using $250,000 as the benchmark for enterprise, but what percentage of your install base do you think you have an opportunity to grow your footprint at or above that $250,000 mark within those accounts? I mean, assuming those customers don't really grow the sizes of their own businesses today. I know we don't break it out. We haven't been breaking it out. We're continuing to see continued growth in the $500,000 and above. The expectation is that, over time, we'll be able to move some amount of those customers up and win new customers that are coming in at a higher rate. We don't have exact numbers on that, but our ambition is to keep moving up market. Cool. Then as you progress more into those enterprise accounts, Mikkel, what are some of the other changes you think you need to make, either within your feature set or on the distribution side, investments that you still have to make to increase your presence there? Well, the enterprise journey is long and interesting and never-ending. We feel like we're still in the early innings of our enterprise business here. We still have more people to invest in, more teams to build out. Our partner business is thriving, we can still do a lot more with partners, both in terms of introduce them early into the relationships with our customers and so on. I think we all feel that it's very exciting to work on because there's just so tremendous opportunity there, and we're getting more and more comfortable in our suits. Even though they're only bottom up. Sorry, top up. We still feel that it's been a long journey for us going enterprise, and it's going to continue for a while as we invest in all these things. We believe it's super interesting, and we learn a lot from it. There's a lot of investments we bring back to the products and make available for everyone and democratize and make it simple for everyone to use these capabilities, and we're excited about that. Thanks, Mikkel. Great. Thanks. The next question comes from Pat Walravens at JMP. Go ahead, Pat. Hey, Pat, can you unmute your mic? Oh, sorry about that. Can we talk a little bit more about the usage in Talk and how you feel about that product in general? There was the comment about moving some of that usage to other messaging platforms that I didn't really understand. Thank you. Well, I can give a little color, and Shelagh, you can support me here. Yeah. Well, again, it's a little bit our pacing. Our model is influenced by historical data, and especially historical data from 2020, where our users pattern, they were much more volatile, kind of how we saw usage kind of go up and down throughout the quarter. A lot of kind of sporadic usage. That had influenced our model, and it's stabilizing now. That model just didn't materialize the way we had because of these historical data. We had to adjust that. We still have high growth in usage, but it wasn't impacted by the same kind of volatility we saw last year. We are definitely making a lot of channels available for our customers with the Suite. We are having a big push to getting them to use these messaging channels that are getting increasingly important, democratizing these things, making it super easy for customers to engage with the customer over WhatsApp and chat and Facebook Messenger and all these other different channels. Our customers are realizing how convenient that is, both for their organization, but also the end customers. The consumers are realizing how convenient that is. We do see a lot of customers thinking messaging first versus voice first, if you will. Does that make sense, Pat? I can't see you. I hope you're nodding. Yeah. No, I'm sorry about that. I'm not driving, but I am in the car. It does make sense, but there's so much change going on in this space right now if you look at Zoom buying Five9. I was just wondering if there's something broader that might be in tech [audio distortion]. No, we're still very happy about the growth in the usage of this, but these models were based too much on some of the volatility from last year. We had to just adjust that. Okay, great. Thank you. Thanks, Pat. The next question comes from Arjun at William Blair. Please go ahead, Arjun, unmute your mic and turn on your camera. Hey, guys. Thanks for taking the question. Shelagh, maybe you don't have to belabor this point, but it seems like what I'm understanding is there was some assumption baked in about usage-based products before this quarter, and there's a new assumption today. Is there any way that you can quantify just how much the consumption is driving down your, or I should say, posing a headwind to your full-year guidance? The rest of the business seems strong, right? I think we're just trying to bifurcate those two aspects in the guidance. Yeah. I won't go into detail about it, which probably won't surprise you. As we've noted, the subscription business indicators are all extremely strong. We're seeing really across the board strength in highest RPO, both short term and long term, a significant number of customers over $250,000. That business is extremely strong. We're continuing our growth in the subscription business. The usage business has been low single digits, remains low single digits. There's not a significant change really in the forecast on that. As Mikkel said, understanding the usage rates when you're trying to come off of COVID, pretty unprecedented situation, has really had us adjust those for the second half of the year. In total, usage remains in the low single digits. Okay. Got it. I wanted to ask on enterprise, maybe Mikkel, this one might be for you, but is the partner channel at a point of maturity yet where you're seeing them bring in big enterprise deals, or is that something that your direct enterprise sales team is still handling? Well, we are seeing pockets of it. It's not like something where we execute well on it everywhere. We have pockets where it's working really well for us. As I said before, this is definitely one of the areas where for so many reasons, for the customer experience, for the success of the projects and all these things, we want to get that motion much more engaged. The partnerships we have been building and are working like that, they're working really well. The customers are really appreciating the quick time to value they're getting out of it and having a partner right on hand, and how quickly they can move on these things. It's definitely something we want to see a lot more of. Perfect. Thank you. Thanks, Arjun. Next up is Stan Zlotsky from Morgan Stanley. Please go ahead, Stan. Hey, guys. Hey. Morning. How are you? Hey, guys. Good to see everybody. Shelagh, great to meet you. A couple questions from my end. I realize you're reticent to kind of quantify the impact of the consumption changes for the full year, is there a way to possibly quantify the impact that we saw in the quarter? Probably won't go into that much detail. I think as we've said, the couple headwinds that we faced in Q2 that we've adjusted for the full year is just the really, as we move up market, that timing on subscription, it's just going to be heavier towards the end of the quarter. The usage piece, we had expected kind of some continued growth both based on what we saw in COVID, we just muted that growth for the balance of the year. Got it. Would it be fair to say that outside of that consumption component changes, did everything else come in essentially above your plan? Inside the quarter, the two effects were those two effects. The underlying indicators of the business, the long-term underlying indicators of the business, all are trending really positively. Right. We talked about the Zendesk Suite coming in more positively than we thought it would come in. Kind of the record improvement we had in booking. The key long-term foundational underlying aspects of the business are all trending very well. Obviously, you've got your in-quarter revenue recognition that really all comes down to when the timing of deal closure is, and then usage is obviously real-time revenue recognition. Last question. I realize, Shelagh, you said that you're a little bit newer to the company. There's obviously still a lot to learn. Is it fair to say that you maybe slightly tweaked the way you approach guidance setting now versus how the company has done it in prior quarters? I think it's objectively true that I'm brand new. It'll be my first 90 days inside this great company. There's a lot still for me to learn. A very strong business that's continuing to gain momentum. As I thought about guidance, I wanted to make sure that it was informed by the learnings that we had inside the Q2 timeframe and make sure to put guidance out that aligned with that. I would call it balanced. Got it. All right. Thank you so much, guys. Thanks. Thanks, Stan Zlotsky. Our last question comes from Samad Samana over at Jefferies. Please go ahead, Samad Samana. Hi. Thanks. Just maybe two questions on the large customer side. I think the data point around 50 customer accounts contributing $250,000, can you help us understand how many of those were new to Zendesk for the first time in the quarter versus customers that, let's call it, crossed the threshold that were already existing Zendesk customers? It's a combination of both. I don't think we're prepared to break it down, but we saw both new customers come in, as Mikkel had talked about earlier, quite a few large accounts that we were able to close in the quarter. As you know, our history has been accounts graduate. We get in companies in their early days, and they graduate from SMB to commercial into enterprise space. We also saw some graduations into that space, too. Okay, great. Just as I think about the 8,000 customers adopting the Suite, can you help us understand, I know there were a couple other Suite SKUs that existed previously, where we are in terms of either migrating or upselling those customers from the existing Suites to the one that was rolled out in February, and how should we think about that opportunity? The way we've thought about it is that we think at least 60% of our customer base Suite will end up being the offering for them. Again, we're early days, and we've been really pleasantly surprised at how quickly the Suite has been adopted through the customer base. Our current expectation is we've got a lot of room to go in the Suite adoption. Great. I'll leave it there, and congrats, Shelagh, on the new job, and look forward to asking you questions for several more quarters. Absolutely. Great. That was our last question. Mikkel, any closing comments? No. Thanks, everyone, for joining today. Congrats, Shelagh, on your first earnings call here. Thanks, everyone. Thank you. Thank you.