Qualys (QLYS) 9 Feb 232022 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Qualys Fourth Quarter and Full year 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to conference like speakers to now Mr. today, would hand over the your I King. Blair ahead. go Please

Good to and afternoon, welcome call. XXXX earnings Qualys' fourth quarter

our to are Joo Joining our Kim, President Thakar, Mi today and and CFO. me our CEO; discuss Sumedh results

the that I statements results these we forward-looking financial today's events. XX-K. including remind these statements set you will generally press no or cause release we our may future relate from are and future to our result statements of a forward-looking could operating like as that Before assumptions latest would filings make and Factors undertake differ to Actual remarks new differ with today, to our materially materially XX-Q on statements. to in started, this forth today information we or or performance. call SEC, get based obligation Form that update that of on include results future our Any as events and are

call, today's During release, presentation in measures. to included is we non-GAAP remarks And press available a investor all non-GAAP Investor the prepared of on section our measures reminder, of website. financial and GAAP A as the reconciliation and press are GAAP this Relations release. earnings present both will

So to turn with Sumedh. now that, over I'd the call like to

profitability. growth industry-leading of another Thanks, performance; Blair, and and welcome, reflecting accelerated everyone, quarter earnings strong financial quarter revenue year to We delivered fourth call. our a of

to and into Asset to a External agent misconfigurations EDR unified and system and single market. response Attack application. risk brought market vulnerabilities our brought comprehensive we with to around We We vectors XDR In Surface We We scoring asset capabilities telemetry asset our a terms introduced of innovation, our and with VMDR strong X.X our criticality, customers. high-fidelity Qualys was XXXX integrations. in CyberSecurity opportunity. for Management detection multiple TruRisk released enable expanded for enable context unique a platform and year Management as ITSM Context application

which our the innovations they and ownership traditional posture of zero-touch an introduced to options we FlexScan, assessment pairs agent standardize platform our These TotalCloud lower as ROI with container cloud flexing delivers Further total agentless security. comprehensive power trusted platform, relative management and our technologies. cloud-native that immediate reduce of detection and siloed customers allow on cost only to complexity a and with

Cloud comprehensive focused our CISOs With Management Enterprise risk third-party TruRisk we we TruRisk call customers. in ingest on with is to upgraded and Qualys increasingly platform preview Platform, have management, scans into capability which the now

environment, to asset a is our Cloud risk threat is holistic, vendor of score and so ability is leveraging with organization’s through automated to risk enterprise intelligence a based an workflows platform customers unified Qualys XX by threat this this criticality TruRisk enterprise Regardless capability enhancement our which unified database, reduce feeds. Threat organization’s remediation our special Qualys' a score scans an makes application, providing of What over on now enterprise-wide then with dashboard. with which applications

acquisition of Cloud which a solution risk October, Response Hexagon and is added our module TotalCloud Blue our clouds, GA, management TotalCloud, public Additionally, new now cloud-native since in and our to already we’ve solution. for is Detection

in zero-day multi-cloud moving another increasingly threat view and new prioritize organizations hybrid technology rapidly ML/AI-based and a environments, evolving differentiator competitive we to strong this As workloads as for response hunting market.

accelerate further opportunistic and to out acquisitions seek our our market expand further to continue will we platform, our market opportunity. time to enhance forward, Looking

the broadly need. We turning believe responding by execution, organically trusted to Now opportunity project QX, evolving remediation to layers sales security unique, to achieve scrutiny in address built dates. of and and risk. has increased continued standardize marketing expedient organizations witness as this and delaying platforms to comes Qualys consolidate of applying on scrutiny organizations a automation, to additional stacks, that platform our increased macro spend we this start to with leverage

to capitalize requires crisp opportunity go-to-market execution. on this fully Nevertheless,

while work This do have in to headwinds, the progress our team and still sales lower-than-expected fronts dynamics the today’s context our is we of we’ve meaningful the enablement investing and Over evident in and year, growing operations made and on regard, some last sales in persistent QX. particularly execution. sales macro several marketing including in successfully resulted in which market growth functions, this within bookings

and Revenue his a position today, we Qualys Accordingly, Officer, for which couple forward his and us continued to our we to for success. the within thank changes of We sales Peters. sales organization. share and announced during Allan upcoming of planned scale contributions Allan our like I’d personnel at Chief as marketing alignment our Earlier organization, grow departure tenure

the interim, the Qualys. focus growth, overseeing team on in we will sales as inherent In be product-led I

our Allan’s We’re for who in talented to position market, competitive business we energized as fortunate to team have next-level a the regional I’m sales of successor. drive our by leaders confident search in forward ability are our effectively and

Additionally, I’m recently joined who Qualys was both our Chief Officer, November to as of Product year, Pinkesh last Product pleased announce in new overseeing well as to serve Marketing. Shah, promoted as

operational to strong looking the great execute believe and our in to having both efficiencies we product-led background marketing in product on the growth leadership increase we’re will in forward motion. on helping investments team, have our leadership under our Pinkesh’s Pinkesh It’s Given his and return long-term help go-to-market same growth, and drive agenda.

looking the to remain and CISOs they address over security our brought their pivot problems. trajectory. by platform-based solve we with market diligently past to a hundred confident the their over solution challenges long-term complex is few and uncertainty, we As clear; strategy in are on to a met months, I’ve message today’s

organizations’ Vegas, reduce security Several reducing Cloud to their in and cyber measure and macro, posture This Qualys organizations XXX customers of over Qualys face risk Security in while our the complexity and gap, threat risk underscored ability an reduction leveraging security environment skills together which In to need Conference the was highlighted measurable the by escalated Qualys Boards and executives. while costs. C-level costs presenting brought to evolving customers attendance and recent at Las Platform, partners. initiatives

and reduced XX% having vulnerabilities amount buy VMDR risk feeds. stated a Truist, customer to without critical with intelligence short eliminated One time separate very of threat that they of through in

backdrop, this several were QX. positives in there Against

unified siloed to in remediate VMDR platform, both posture enhance security to vulnerabilities on insurance a not but replace workloads. We deployed see traditional in continued included environments quarter and is that and Qualys its is institutions of also customers now key a by to XX% the company and wins ability on-prem which adoption Global XX worldwide. Global financial VMDR, XXX only of for VMDR our steady detect, the who tools security leveraging cloud chose A few seven-figure two

optimize and Beyond these a successes reduce who share to additional wins, security moment risk. spend with I’ll customers, their take now of a consolidating stack to are couple

point logo seven-figure application with web a replacing company competitive Asset win selected in Cybersecurity to one from new Fortune three First, and hosting remediation NO vendors a Management platform. VMDR XXXX and risk solutions Cost

program, the ability The enhance natively remediation all internal for solutions this vulnerability customer, to CMDBs a only where steps market. external detection integrated platform, with compared significantly and criticality, automating risk key quick security to and alerting in differentiators its comprehensive on a

they asset same end-of-life context, Asset have our strategic is focus engagement able This we deal an Qualys upsell on Cyber Asset our out high-quality visibility In solution, inventory, Security Cybersecurity for addition, inventory organization's to real-time over signing XXXX, rich to in of customer expanded customer, for financial with $XXX,XXX and platform already due the on are real-time services they Management Management highlighting an deployed agents and existing standardizing asset get the solution. VMDR

current them enabled which enhance customers in to This in solutions, their platform Qualys and investment environment. macro consolidating important to is

in customers As to and $XXX,XXX our continued a -- our evidenced growth a are security XX%, market solve gain customer platform, with XXX beginning their complex they ago ability more from are growing QX difficult increasingly the us to or in leading problems, more drive to share. year leading to we by leverage This is large perceive with Qualys up platform, as customers spending more security that growing confident spend, can a in and and they as growth security have

market, we in growth have initiatives slower our to witnessed now SME/SMB Turning where growth.

VMDR new simple, multi-vector introduced small Management to solutions new reduce have VMDR and for TruRisk Management against packaging offer product all remediate Patch TruRisk easy protected to the cybersecurity deploy These customers. both and manage FixIT continuously emerging threats and TruRisk Patch protect includes We and EDR. packages with VMDR with cyber

the We believe for offering, process that of this SME/SMB pricing partners our value, in convenient and packaging the to the streamline our and market. proposition will value sales time further advance reducing help

machines. service to to Oracle management Infrastructure Cloud In began compute share vulnerability leverage with scan partnership offering, fully managed licenses Qualys are vulnerability, we Oracle. that pleased to addition, that their OCI, our virtual enables expanded QX, a we OCI customers their scanning in

that solution for pleased and a help advancing their ecosystem. infrastructure environment also This security vulnerability. Qualys' our quality to and I'm scan of vulnerability selected to has to partner testament note, management cloud is internal the effectiveness OCI

I'm the that recently platform. to introduced on FedRAMP impact received Ready pleased at GovCloud status, high Finally, Qualys announce our newly level

the achievement FedRAMP government Qualys management workflow. workloads cloud, the the alternative, is for to With the marks of agencies. single this management high scanners from offering platform state in makes environments legacy local modern to this only federal, a ready Currently key and vulnerability government patch inventory, milestone and on-prem a and moving agencies unified only increasingly

well public positioned sector to presence, platform address to a in consolidated that term. our help new certification, now we establish believe will the Given drive investment are long the and growth vertical we a our

brings is as out We believe more is quantifying, they risk, reducing Cloud integrated cybersecurity value our less platform, a security mission-critical remediating to single using a the customers a market proposition of Platform. and highly differentiated summary, that technology. natively In resources Qualys our get

to continue already crisply and our XXXX, enhance and approach with an our to proven and balanced advance innovation long-term further our In growth go-to-market disruptive we’ll execute profitability. strategic vision investments

further With year call for first quarter and to fourth this, quarter full discuss and outlook Joo Mi the I’ll our over turn XXXX. the results to

and Sumedh, good afternoon. Thanks,

that, year comparisons I except period, unless non-GAAP Before note and to figures to on prior stated for based the are I’d are rates otherwise. start, revenue, all growth like financial

we XXXX our product was and EBITDA gross margin leadership XX%, generating at for of another XX%. by maintaining growing Qualys notable inflationary while innovation year pressures, of as XX% our product revenues despite continued margin

While for our with and both Qualys a investment industry peers, year was revenues. profit than and R&D was marketing faster growing of our margin XXXX sales well-above

management headcount marketing, product proposition our value of R&D, as mix teams trade and it our marketing in executing research to we In sales security in was investments and the assist in go-to-market strategy. of campaigns. well invested strengthen products our as further and a In and shows

with marketing driving profitable long-term against investment growth. XXXX headcount, XX% a we executed in as investments XXXX forward committed our plan to look increase to over in our optimizing sales remain Having and we

in outpacing the fourth grew Now, ago includes XX% revenues. quarter hundred which from the $XXX.X the quarter from Hexagon up thousand period. turn dollars XX% This fourth year add in partners direct, minimis to let’s Blue grew few to XX%, results. XX%. from de channel grew QX to a which million, a acquisition, Revenues contributed Revenues

mix year ago. up a Our total last shifted the year revenue contribution slightly over XX% revenues with of direct XX% making versus has

trend expect XX% US XXXX. to By grew We business, growth international in-line our which a similar continue was the geo, XX%. of with in in

year. mix rate Looking revenue remain from In XXX%, we international expansion customer basis ahead quarter dollar continued strength XXXX, net to XX%, QX, last respectively. and up-sell roughly lower from up with dollar we down but XXX% but a saw currency expect retention XXX% last performance at XX% at in constant US in and our on our to

Where we year. less during saw smaller the for than primarily last spent customers improvement with room $XX,XXX us was in who

with this packages with by comparison, customers In approximately launch just the expect and XX% that Sumedh in $XX,XXX increased of who product more new us count gain spent or mentioned. momentum segment We revenue. to both the

continued combined X% QX healthy up of in combined XX% CyberSecurity in terms basis. for In two bookings a new of bookings, Patch we contribution XX% new Management Asset to QX. increased Management and to LTM The demand these growth for of with LTM product on the and adoption see in bookings resulted making products

higher year to XXXX the a shows. representing related the for compared XX% headcount margin million, EBITDA XX% as a and growth million, fourth including driven increased ago. to quarter QX XX% by Operating spend $XX.X costs a trade expenses on and marketing in well of primarily in Adjusted was sales as $XX.X margin investments by

of compared to was of our we year a invest million our a million of fourth to ago. – quarter quarter from In into million Qualys shares. of capital outstanding free margin flow QX, expenditures repurchase operations $XXX,XXX the we cash $X.XX continued to including EPS back XXXX and for XXXX cash XX% and $XX.X margin the fourth was representing quarter generated $XXX.X on for a $X XX% the

we share in $XXX.X million program. At remaining the our had quarter, repurchase end the of

additional announce total Board We share million. repurchases share to authorized has our that amount are pleased $XXX.X an the million repurchase for to bring available program $XXX

guidance. a growth to Now is XX%. for let full our us $XXX revenues turn $XXX to to year million Starting which our represents XXXX, XXXX revenue the rate with million, XX% of guidance

For of to revenues $XXX we the of in rate expect XX%. first quarter growth million be representing range to XX% XXXX, to million $XXX.X the a

what guidance no throughout This from our XDR as cloud is fourth unfavorable in continued witnessed XXXX. XXXX market contribution assuming the of we revenue and such newer similar material total dynamics to products Context quarter and

importance in optimization. and Given we the to us, of while operations, growth continue will opportunities ahead invest recognizing of people the systems

XXXX low XXs quarter in margins. result, we year a with expect fourth to XXXX the As EBITDA in the roughly line margin be full

year the quarter in the X.XX and and XXXX the of of We range EPS in range X.XX and X.XX. be of for X.XX full expect to first

in Our to expenditures million first million. of of $XX and planned in XXXX the the of XXXX range be capital $X million expected for quarter $X is to $XX to in million range the

initiatives our to to a macro on XXXX, and the same investments focus economics. sales support and more approach specific pipeline align respond to maintaining and time marketing drive product current at unit to In plan the we while disciplined conditions, to

headcount Throughout and functions and by hiring XXXX, the great of employee XX%. while the company XX%, we the increasing pace total accelerated talent broadened all growing marketing base sales across by of

in marketing the continue in to investment increase environment functions XXXX support and well planning in plan and largely are of we we're our maintaining in, given invest investment sales prioritize to as engineering. to while as we systems related in While level

profitability. share our As will we balancing by we [indiscernible] sales Qualys be focusing while returns, growth on and to marketing drive able execution long-term we sharpen and and productivity, believe enablement to and

XXXX, and In strong profitability. top-line delivered we conclusion growth in industry-leading

XCR true We cloud continue lead to with and adding Total introducing product VMDR. Context to and innovation risk

to achievements, these and commitment a value. deliver to in elevate platform long-term with our go-to-market further we to opportunity ability investments the our to scale, areas remain critical control business shareholder prioritize With of continue our will our confident growth and our within on advancing and we maximize

With that and would of to I Sumedh happy your answer questions. any be

RBC [Operator Instructions] Markets. Our Dan Capital come the Bergstrom will from question first from line of

Your open. line is

question. our Yes. Thanks for taking

perspective for What So, but it fourth everyone's guidance assuming little the of bit from more maybe more understand in numbers you you could what about to rates? in you relative Just talk to getting is the a -- level better XXXX? buildup calendar the here. quarter? macro to worse, saw are a conservatism year close similar, the trying You same on said

Yes.

our work -- saw continue team, execution. that sales And, in our think and -- we think, on both us from perspective really we think, to we opportunity and their I I with bookings, in thing reflected than that upsell. see macro our the QX deteriorate was to expected softer that for new and improve

changes those we in think we place, things to. are put of the -- looking have I are that that some forward that And

get into productivity we QX not XXXX, we've sort the looked guidance. that or we assumed in macro of FY any like As when for that change or anything and at

there. you Great. XX then, through and the GXK looking looks PowerPoint, customers penetration previously Thanks. prepared example versus the And an increase in out the remarks Fortune called of like it

verify, some that adopt? real did this business, securing just what's there first they about in curious And is Just what then, penetration time? to products change the in

management they really response and security helping Asset management, them customers, Cybersecurity problems need and the the Management vulnerability together and combination really the capability to that. patch think, detection interesting complex they I are what's solve that, have solve is larger that of

is is the security putting And being question is the of reduction but happening a you're outcomes everybody the that, the and meaningful question being layers that's a talking it's added is and that's really about budgets in and what scrutiny, giving risk you that asked. really security from perspective that spend

now, spend because If that going we risk resonated last And has well a where that's it CISOs, reduction. the year to that have we enhancement are and done with this getting we're we score TruRisk bring the able quantify money, the introduced and that them able that actually they're how give now the to is risk that sense. making down really and investment tie we're risk to score to able they're spend to doing

add product has quite in $XXX,XXX that inventory we just asset think actually to to threat. VMDR which security I QX, worth able just speed And company, I at address example to conversation been they and program get essentially that that of reduce is QX and exciting enhance bought like the where that they're larger over QX enterprises, of and -- gave on see that outcome the this their this so could that

in outcome And resonating are customers. bringing. the executing, So kind what's not that what of the is it's security our just think projects that's I you you're but with

Great. Thank you.

One question moment Joshua Research. Wolfe Tilton line next our from And for our next the comes of question. from

line open. Your is

Hey, my for question. guys. Thanks taking

The kind guys for back current for of of is the of you me. in one year growth growth range ahead XXXX. outlook that half next your billings in Just the did

just can that meet, ramp in but need So billings laid guidance of that help maybe wouldn't you the order you acceleration to you understand come new maybe us that XXXX? say ahead out slightly that in for guys in I or Thanks.

Yeah.

the trend that made now. thought we consideration it that well -- that around the take at conditions current the right guidance as into you we're revenue If XXXX our take guidance that the a probably what seeing And at that billings you look are range. we would XX%, the to beat would prudent to the be we take something assumptions that I growth current gave look for a if is we as for need think XXXX, do macroeconomic

quarter tough for QX was us. a

what performance. it in is the assumed mentioned, lower-than-expected And we've that bookings continues. Sumedh was that condition XXXX guidance As

both We customer and guidance probably point. the all growth. will is in as as looking our look sales at said, But to small be this actively we execution drive that opportunities base at to feel well different across bookings improve derisked our with large that order

you much. very Thank

Thank you. One moment for next our question.

line question next Truist. Our the is Fishbein Joel of come from from

open. is line Your

Hi. just for question. Fishbein. had Joel is a Good I This afternoon. [indiscernible]

talk did I of XX some inflationary as especially I down margin that additionally about think customers -- pricing I saw QX, ticked discounting? pressure you renewing contracts? mentioned think Could mentioned And your around And you your existing have some might your any basis quarter-over-quarter. you points gross in had you were see pressures.

Yeah.

QX, as think for into pressure we saw And of customer competition. discounting we they have case-by-case a to different basis, dollar we more went I can in us. offer same we lot coming spend certainly that we capabilities but bring value the more to with review from with the

we additional discounting together see with where And friction do to the discount, management so in the some much pressure And we and with for easy offer yes, the which packages it packages, that them et capabilities. the reduce are you adding and value metal going essentially the simple process. them prop a of in have to we actually of make that see we're cetera but little XXXX, back patch EDR buying built

Thank Great. you.

for next One question. moment our

Owens come from of Our from the next question Rob will Sandler. Piper line

Your line is open.

my taking question. for Thanks Great.

other metric direction Thanks. guys at might investment it couple static channel that given been look as at over relatively As the look you direct the one and standpoint. your way moving leaning years? forward, or either from it's Are skew a sales you of last marketing we and

partners of Yeah. that the we've I high at started May last say level year. program a in for would

the So it's traction the think excited terms registration -- partners, are of in of early number engagement some to I we're seeing we we a are seeing the with see that days. think so but we are of early and I that

partners a will one picture we some evolves I get so way And have year other. progress as or through better or from And that of think and better the we this towards a necessarily idea how so, as is direct. the we'll coming driving are not demand versus

Thank for moment One you. next question.

Essex from the will from of question JPMorgan. next line Our Brian come

Your line open. is

maybe Hi. Good taking my Thanks guess for for Sumedh. question. afternoon. I

might think, from cloud, outside drive other Mi real but and those seeing XDR early no was that I what material upside emerging mentioned products there guidance you're Joo might in in that there products of indications levers the for and maybe total showing contribution? be early that Contact for maybe XXXX? contribution signs And some of how

Great question.

you uptake. you at XX% if in for see think of those look where you continue I at if to And look patch management, QX, the cybersecurity if those the combination I like two. contribution think the good So bookings, management, have it's to

And interest think more are more we I in those. so and seeing

I Blue we're driving think total in Hexagon cloud of innovation is the in. something and lot that coming a

a flexibility of something and So are I looking additional the licenses grow for into will see is and from as as we cloud they with licenses have the that flexible VMDR customers the multi-cloud cloud then into where look they combination moving adopt on-prem total initially in with licenses workloads at Qualys cloud think being future. back they

of the feedback that capability on them bring of we flexible scanning chart agent-only just positive because giving and focusing snap has a only we're very most options. scan or scan the been comprehensiveness of sort The the

cloud-only applications everything. it of to visibility cloud of near that a of excited is And want gives Most companies so a and them the see is in risk risk they instead cloud. enterprises of our of it large only have at the it on-prem about some hybrid some security combination are solutions overall looking in or

valuable of has to that customers feedback forward Coco starting we have so And Cloud. looking evaluations who been to quite and are do

it's that they us in that see addition own feedback and on that their using VMDR that Now brain adopt can how gone they're to the and give systems.

days. early still is SDR context then And

something have us collecting But customers then the build data them giving today the same it is few to and are of having overall parts having multiple that the a feedback. that started tools of theme have using We bring to instead context.

it's asset, just of are or it vulnerabilities running whether context from So collecting are those has tools are and while the missing. the many all things whether a detections logs of those that locks there database, providing

we asset that's able logs use so those because And the platform, they interesting they're on Qualys so seeing bring context much can real-time satisfy. they're of that when to where have cases the in Qualys

think kind more that how case use are individual than use of it at solves the the they Qualys that getting that's multiple product. how looking solved. is I have the platform that customers cases really It's

So it's more Management Cloud think these, but about Patch early Cyber seeing we Management look and the days Context we're term Security for are quarters. we I pretty then forward uptake to that immediate excited more Asset and in future in Total XDR and the

Got quick Maybe helpful. just it. a follow-up. That's

you've seeing Just it on the and outside managed spirit talked I expanding traction But partners. there incremental large of past. services you're enterprise of penetration, any to traction the about think the in And outside with note? of that in

think bring work think but that on is I board, nothing MSSPs dramatically with as continue call No, to you to we out I them, different.

their see it of by I vulnerability as partners they bringing to to are we like right said but And share looking they nothing those is what material versus that different are I that macro they want XX or optimize the service patching bottom the their very partner evolves to service managing platform into value the customers Qualys perspective from the everything as providing from not standardizing interesting on line having how think, go tools as a to also to to different to was provide the provide, XXXX, to how see provide congresses to are also EDR. now. having management

Thank much. helpful. That's you so it. Got

for One question. next our moment

line of Kessinger Davidson. come from Rudy the will question from next Our D.A.

Your open. line is

taking XXXX my guess, the conditions saying Hey, question. I go on next necessarily not worse. an not guys. like step. just is sounds QX why guidance assumption the in I in the I'm and is but that Thanks guess I'm get curious continue into you're what's curious what guide for baked for it that

and I that XXXX your further gone space in the competitors others an think step extra make things that bake that and cybersecurity guide. broader the to most assumption into of have deteriorate

there. just what curious drove So, that decision

Yeah.

what into was look we fairly what taking terms not account and I think lower in which QX think seen saw of what we terms was expected. et productivity was in for had in we that earlier than are I it have we cetera, of different – us than

that to continue. the packages and are more improve at in looking sales cetera, assuming to we're to of how we we house that's side to So to get marketing have, execution. be the continuing are able again and the to quota going And improve that invest we carriers et with

just the that's QX we we understand, continuation again, So lumpiness why it. that's seeing. are that of that it's there of looking we is we the at are assuming macro kind – are how But but

than we in Yeah. had QX I as mentioned saw that QX felt what was in and macro came impact And bookings that we in lower what anticipated, we so already.

we're rep sales macro the the it And the at it the had way our into the really execution so it and for is momentum. trickle and in of us look sales because process impact productivity looking we a had a and down on impact

see that just where do with we we new like so And launched as signs a said, an product. example

these in There are different personnel the feel that, we elements the some all are direction. on now is into But actually guidance going the initiatives headed right changes. that including consideration like it's taking right

feel guidance a we it cautious our from that So is perspective.

on you've guess, newer your package improve? are Okay. you're out execution longer And that the items the really then are of that could the mentioned sales you be not whole need to your more improvement? to sales could selling on looking where it secondly tenured so a couple times more execution, Is do really I you reps is macro and call that affected reps obviously, taking But impacting tangible that. any as ramp

Yes.

think we overall. I are

XXXX. them have done in well. lot the A we of investments I think made

I as increased think we sales well. headcount

larger that because of additional segment each deals we there of additional stay of layers of little the of in didn't in signature, value different in customers to on are from those. ensuring are et larger people well and the of and ahead We a some Qualys, in course deals cetera. convincing saw bit the were where terms the for it's additional think quite room there value. do the I like And showing actually then you I the macro capabilities enterprises is of us getting there some are better these front right in think doing

we that's I even ahead we XXXX, that of better training into think as staying job get that. a are our So of giving doing to make we're a tenured sure reps that

for in the do I provide about how we have and more it friction process think that Risk end messaging True of to matter that's this reduce not your having is them going call modules upsell and MDR buying the the to on lower and a you. then individual is of packages we then customers, and segment fix SMB to proposition this going just as better fix by around protect the the value things it

think I think I different right. it's on – those So two segments it's

way aligning much management, more more And coming room platform a overall sales can opportunities product quickly. a there believe the hiring sales course year we And board to that's itself for product is been and create force Pinkesh a enablement value we sellers for our growth, marketing, on as show have better product then them. and to for last we of have more to now why we with driving product-led being us provide use our prop and market

a it's of And looking we things combination at. are that those so

more it well and we works a solve that to And color just product differentiated The looking been leader. problems. We customers are way very add complex we've difficult little very cloud bit at our a a serves have looking believe very enterprise and it. that to to platform that always we're is

larger the successful in last to And so our dollar from in organizations. that's been terms the of ability account grow why both and year we've amount

in on with the spent count at said, who us, will that seen growth we less packaging, you customers able we've accelerate of than deliver that that didn't in new XXXX. more where example, if be look and our the now and with half gain an launch. macro the that and a the lack the to that will will and was a we're am much the really happy grow space, of that we've with SME to drag second revenue really $XX,XXX happy the if there where focused is believe that been knew on momentum this friction. where and you new With the That's if right product probably SMB segment as And is the inefficiency I an incremental very have we're where you product And business. on that's with seen we'll head, we take where of that

next Thank question. moment our you. for One

question next Fodderwala from come will Stanley. Morgan of line from Our the Hamza

open. is line Your

talked Hi, about and Thank that. you're Mi, Joo taking personnel changes a thinking for my good little evening. question. the you you bit how about

reflecting sort of sales on you that risk CRO that XXXX Just curious, the Is in additional back of outlook? disruption something of are really the the departure? your how contemplated you

appropriately second the to no if off take we that half derisked our the material to newer we we And newer huge mean a Yes. that is product. improve assumption or from outlook addition gain happened made I in this upside that year. current is, see take -- because if continues product in assuming is this perspective, why our do from macro to believe you guidance of the our the the

changes, that it that sales it in though XXXX. the even QX, productivity, the it assuming we However, believe and we're because is was lower as continues of personnel in

year. I throughout our Got metric. the guess, curious about it it. are because how maybe just you're is level growth set, so for important an I'm thinking models And CCB

I to XX% slowing -- CCB growth close been Should where to kind have seen times maybe by few expect a revenue CCB think things years south points. this grow of year? we we've of where in like

you if could think so from the CCB the a grow uncertainty. about that's And higher say lag it's than I CCB, upside, the revenue and because necessarily, the the when Not revenue, right?

be what achieve guidance by on believe the half XXXX. We XXXX. were informed in able revenue That will greater in more revenue, of it's first terms we to however, we'll for weight our achieving a for In have XXXX. the the

Okay. Thank you.

in I'm call. not you concludes any showing that, With participating. you. Thank questions queue. this the today's Thank conference further for

a now day. You have disconnect. Everyone may great