PagerDuty (PD) 30 Nov 232024 Q3 Earnings call transcript

Good afternoon, and thank you for joining us to discuss PagerDuty's Third Quarter Fiscal Year 2024 results. With me on today's call are Jennifer Tejada, PagerDuty's Chairperson and Chief Executive Officer; and Howard Wilson, Chief Financial Officer.

Before we begin, let me remind everyone that statements made on this call include forward-looking statements based on the environment as we currently see it, which involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

These forward-looking statements include our growth prospects, future revenue, operating margins, net income, cash balance and total addressable market, among others, and represent our management's beliefs and assumptions only as of the date such statements are made, and we undertake no obligation to update these.

During today's call, we will discuss non-GAAP financial measures, which are in addition to and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. and measures GAAP our available between release. earnings reconciliation non-GAAP is financial in A

these factors as SEC. included and the on recently with and information Further other the our including other results make the most differ subsequent Exchange we made Commission, company's Form that to materially as filings are XX-K in filed with Securities well financial cause could filings

over to With Jennifer. the that, I will call turn

top XX%. and Good ranges, of PagerDuty QX afternoon, all to address and and our delivered margin high margin demonstrate the joining commitment you X,XXX over with operating growth to challenges. similar profitable guidance high enterprises basis line seek today. us bottom priority demand by end thank for revenue as a our above points non-GAAP results . Year-over-year solid growth. of we strong to operating as continue Long-term expanded remains XX%

expect their Crossing command experiences are revenue First, modern and digital real-time in customers CASM an operations this control But services. protect and critical increasingly is digital and their marketplace. to grow antiquated, are and and on-demand operations manual.

led generative Second, an automation reduce more seek to has in appetite operational less face increased costs an AI efficiency for in businesses achieve ongoing order shortage. and and This with demand of for skill scale. all the do to to at

incident automated intelligent creating of operational risk and to solutions. and material tech driving third, rise, And failures, demand and complexity for continue debt business management

leaders, the in for cloud. demand Solving operations these critical and and enterprise the priorities is increased has technology especially for PagerDuty business

productivity, to software and ops. Pat's of a at expansion ARR value new to operational the highlight cloud and the Along advancing strengthen enterprises. and proposition and and X and this enterprise results were fiscal and risk reduce $X customer. showcases each a all revenue automation record-setting strengthen of from platform expansions acquisition year. Two, surpassing customer New and million protect enterprise with over long-standing was operations by customer mid-market in customer AIOPs, increase incident the maturity included win products: business QX quarter, for management, QX contributions service of resilience This strategic

performing sizable few in SMB. dollar-based Enterprise, basis more of issues during than remains QX, Notwithstanding but net unusual strongest segment points our the above a renewal retention focus. enterprise strategic our was quarter XXX that

Customer retention product confidence months. over our the have These resilient prioritization been metrics our growth and go-to-market enterprise global reinforce in enterprise development past our more XX key of strategy, resources efforts. and also and in

pressure and Macro decision-making. uncertainty budgets volatility slow to customer continues and

remain mid-market while X/X us apply engaged they customers nearly to conservatism reduce overall critical protecting enterprise quarter, in highly for investments IT expansions operations. our spend of to functionality and seek with While with and in customers to ways continue expanding the

were relationships behaviors. be our we've seen In focusing than will gains, and that on rather We approach. similar long-term the past, short-term by rewarded continue to

created quarter. ARR expansion down environment, unfavorable and a That reinforcing total and during the headwind was in operations the resonates. the fiscal grade New cloud proposition said, strongest to our challenging generated operating that year, turning were business value a dollars to even the target of

customers need providing are of life risk to the use to identifying systematically pricing of flexible earlier customers demonstrate maximize in Operations by cycle; We addressing third, their and engaging for and risk working the the downgrades Cloud optimize solutions in second, value. higher churn who customers with business First, renewal by multiyear with

the value motion. included C-suite to Cloud, decision-making has our This the proposition to methodically As and Operations our all support that around champions focuses enterprise we practitioners our customers, positioning complements centered enabled centralized quality on approach enterprise focus the quantity land-and-expand for high-velocity to evolve pricing and buyers enterprise centralized on improve expansion with us This and management increased norm has technical products. across wins. motion purchasing the scaled financial become of and of continue account authority, has

enterprise enterprise persistent on efficient focus leadership The with our underpins an pace innovation practice. go-to-market of increasingly

of generative the AI have access our make including to third engage X to generative resolution. Cloud CoPilot interface with use to continued generative in the even it automation, both We it early capabilities from operations and new customers the features event now Slack we're program intuitive advance. AI-generated updates, the make status possible cases quarter, use These to are capabilities. based for a calling and AI our of across AI chat PagerDuty During first PagerDuty ingest family [indiscernible] runbook easier to

approach Our build a developers can gateway upon. secure strategy as across opt-in common as interface a packaged instantiating a customer it products, take all and is primitive CoPilot. AI employees PagerDuty With and platform to to generative leveraging core

in current solution QX, operations service To Our program. private we the status customer and access primary our engagement pages input CSM through and Also date, positive. expanded is case to usage very and on goal available early our have been customer ServiceNow include feedback design automation.

in enhancements switching. to visibility customer-facing cases level connect complex These This customer close to more enabling of agents largest our and most and customers. into workflow engagement quickly by is service incident customer product, immediately management requested PagerDuty live teams a contact without

specifically data several analyze These operational operation resilience of improve engineering enable central measurable In centers significant volumes teams, automation out action ops, additions immediately network and teams. for to with IT teams AI results. vast reliability and we using site rolled including enhancements to

oversubscribed. these the access are went early quarter, During and into

improvements in in to in and instant for deep team a completing service incident productivity reliability into of drive Operations management, turns the Jelly opportunity beyond And with we Nora the rich cycle management acquisition the proactive and technology quantifiable response of finally, incident life going the to action, Deli's and Cloud differentiate month, every actionable on earlier team resilience. and IT by to Kelly and learning particularly learning improvement. analysis talented welcome closed will front, development want Incorporating this system as a further the of PagerDuty. product Jones I

has expanding and forward a positive, to look to as incredibly we reaction incident this been our offering management Customer rapidly result. combination

Operations Incorporating a as of produces manual enterprise reduce tens our to unique Recall product to dollars in and of our global the solution automation commitments cloud. identified that the human semiconductor customer in workflow no-code work of millions supplier pursuit error eliminating annual innovation QX, into go-to-market in enduring nonvalue-added costs.

alignment, to decision-making In focus in processes. expansion. enterprise champions in a serving Our QX, cases, well X-figure a combined in in as proved on their win operations strong technical resulting with continued X-figure scale navigating as instrumental proven additional record-setting track centralized cloud an record both executive multiyear

service tens of millions units to tightly dollars their save customer, enterprise provide ownership journey users. a in software multiple With large their customer we business cost best-in-class of and aligned for operational end experience across on a

with anchor Our scale PagerDuty executives team as across partner and service customer to problems high-priority strategic collaboration a identified business teams. technology to in

in revenue We efficiency, protection from work estimate $XX and through million churn. in reduction manual operational annual savings

global objectives automation. growing examples the its service also This PagerDuty cybersecurity growing the a improve to and rapidly aligned strain strategic number the with A leader of reduce to on increasing productivity CEO's These wins. are reduce of organization. manual with throughout partnered representative customer through teams by processes

total platform narrow believe competitors. including use cost differentiators we the short to and short-term an outpaces that of advantage, provide set time low-cost our competitive served of cases scale, Our low resilience at value and ROI by functional ownership homegrown,

the area seamless over adoption user plan new the to within support time, cases, and scale strategies surface several retention next some operations piloting quarters. more In reduced our to and We bundling begun initiatives of pipeline and the this sales We've expand reduced pricing has cycle cloud customers. generated risk. X

of Partner us this cooperation embraces past AWS Earlier at America. Year as year. week honor North whose PagerDuty was Reinvent, AWS Marketplace This the partner business as model over recognized for a innovation and the the specialization recognizes

unlock nature the to globe We consulting deepen scale across partnerships operations. in strategic validates the FY of relationships our plan in technical Operations recognition Cloud value more partner the we refine 'XX. as and and to This modernizing

QX, and During IT this, Eric with us leading and critical SurveyMonkey President he is also Senior focused new fellow and Eric management, DocuSign talent. Johnson of had enterprise we CIOs. on to the PagerDuty's data evangelism both as and infrastructure, to as Prior from comes Vice served CIO, our welcomed CIO systems

categories Best and Work employees best a recognized best workplaces PagerDuty's great were in technology, We including medium honored workplaces place to Fortune as in us X to by ranked be quarter, this to Places work.

for Additionally, PagerDuty work was to the in named XX top Portugal. companies X of

ARR. were named tough, radar. remains leader incident we response we significantly GigaOm's expansion Cloud and Finally, definitive operations the the while saw in in To momentum environment the Enterprise and advanced summarize,

recovery, too While and stabilization a including call several shoots, engagements. operations demand green early for market we do strategic cloud enterprise it's mid-market and to see

make are further no improvement of are intend focused and growth. margin on our expansion. proud to margin We we mistake, But continue to drive operating

great year. want thank manage revolutionize place in to the have trust expect grateful mission progress PagerDuty on for initiatives to our automate and work. reacceleration to fiscal teams us We and commitment made during I next and growth their who to we the our their customers position for well most We've our operations,

and that, forward to call questions. Howard, over With to I look the turn I'll your

day to Jen, us joining on you, afternoon's call. everyone Thank and good this

and we we line. delivered ranges the the In QX, results solid provided bottom guidance for both above top the

to effectively enterprise terms and of to new in acquisition economic and continue both business improvement We mid-market, expansion. the with environment new in adjust in

around renewals. SMB increased by to negotiation continue spending Cautious impact customers and caused

customers evidence key However, and mature to role modernize technology quarter several of enabling providing large environments. X- this and in X-figure our transactions are PagerDuty's their

initiatives Our basis this on multiyear profitable with margin focused quarter. over improvements X,XXX points deliver continued improvement to operating growth

and earnings references posted release Unless results our call. a operating basis the in to non-GAAP that reconciled otherwise results stated, all GAAP are our expenses was the and to before on are

XX% seen $XXX of from quarter, XX% QX an up of from contribution was million increase the the year. revenues, in total was XX% The third Revenue last international in year-over-year.

QX dollar-based in in same XXX% period recurring year-over-year to exiting grew year the delivered to We revenue $XXX QX million. net Annual ago. XXX% compared X XX% retention

XXX, Customers expectation DBNR over annual ago. $XXX,XXX is grew revenue spending XXX%. approximately to recurring in from up QX year XX% a for Our

among platform, compared remain VSB an uneven. increase to by paid customer X% XX,XXX, count XX,XXX QX year. accounts of last however, to our grew declined customers Total approximately Free and of over SMB and as XX% of demand year-over-year on

the basis gross same $XX range. revenue or year. or by over XX% revenue. in XX% within compares XX% million and to target our margin million of was QX points X% to last income quarter Operating X,XXX to XX% This $X of improved

with $X income the a Revenue result. along approximately positively contributed X million delay in expenses quarter of upside nonrecurring to operating realizing

million In the and XX% revenue. free $XX revenue, operations $XX was cash cash XX% of from flow or for quarter, million of of terms were flow or cash

the below the cash year-over-year. to X% up an Total Quarterly last of to We cash, ended ended sheet. million, during with balance range equivalents revenue billings $XXX $XXX quarter's calculated increase million year-over-year in deferred and call. $XXX million, at investments. the of X% the provided Turning and X% XX% quarter quarter were

On compared a basis, $XXX respect estimates. With growth in XX-months be were line expect XX% trailing to billings and we to a billings our approximately to QX, XX-month ago of an increase XX%. million, with year

our Turning guidance. to

For the fourth quarter of XXXX. fiscal

growth We operating a the And to million attributable to expect in diluted rate $XXX.X $X.XX PagerDuty, range income $X.XX. to representing the of an X% $XXX.X per of share X% revenue range to implies Inc. margin million, of of X%. net to in This XX%.

full year of million to growth expectation $XXX $XXX XXXX, range This to a of provided range XX%. to our $XXX million. to we are the For compares revenue rate $XXX million, fiscal of previously a the representing increasing million

implies between remains This And of attributable Inc. income PagerDuty diluted net $X.XX and operating XX%. $X.XX. per share an to margin

past have quarters yielding we adjusting changes results. over the the X to The macroeconomic environment are made

cloud priorities. We stronger are cycle in metrics, improved mid-market, they leading our ensure enablement larger enterprise and customer of are engagement In to expansion renewal of investments support transactions. successful increase level strategic commitments with and operations and the outside customers are a driving business acquisitions, to multiyear new their new our multiproduct

the of has to as our business continuing customers. view with focused operations us deliver we on profitable long-term Our growth revolutionize

the call I With Q&A. that, for will open

Thank Okay. Oliver. to going you, team, Rob hear first from and we're

guys. Can okay? you hear Thank you me

can. we Yes,

Howard. for video, connection and I'm the off apologize to I myself Hi Great. Jen, Okay. going Hi bad keep

mute quick X I'll out connection. in then squeeze ones lose the and I'll So in I'll case

mentioned is your green just first, you just statement Jen, now on around and pipelines, the if a little a it conversations? enterprise the more you could we've of kind hear I that's And out, whether from add week. So shoots. that was comments be like a love you wondering bit of that is people to kind would of heard this I gives to call what comfort couple color it

And is then my Howard. follow-up for

last of comments setup bit the know there's guys Just any was didn't when headed around customers. into around the through the of sort pass year, if fiscal the slowing in perhaps the your XXX,XXX beat. the quarter, you you I conservative pipeline. a was final quarter thought

macro we any should there number. in if that think or the was wondering about change just So how

Sorry to squeeze both. in

I've of more quarters. And No level last just AWS' around in lot reinvent in worries. cloud spending I've Rob. Las just customers encouraged from engagement strategic a XXX customers. discussions. been week. Thanks for over the I question, time couple operations of seen came the with by of Vegas, tremendously I'm the this back

while I operating continues actually be on appetite with think environment the to it's this less. what for demanding, And more focus really the doing automation. it's driving people's

cloud long-term understand we've really led what's to available has customers that turning broader relationships in with And as I platform. they to had think us them the them operations the to

great really perspective. and remarks. record I this enterprise we've new deal and to in did stabilize we and that very quarter a significant about continue expansion operations enterprise an cloud a prepared and saw We seen talked mid-market expansion my really And Secondly, from and perform.

So more taking pipeline. opportunities, see about opportunity operations, just and the big resulting several when we stronger hold the for large in I had strategic deal underway quarters. think that and deal we've cloud initiatives

cautious are the mid-market in market strategic that SMB And that their some starting more is still volatile more a spend see of say customers our that handle also get on I'd and around and enterprise. We lower and while behavior. reengagement discussions in to budgets. causes

with lot adapting the the is teams along to well encouraging that, confidence. our so, And way gives are us and a of environment

-- in ties your comments into because Rob, $XXX,XXX. on customers And that ties pick up actually question around Jen's Yes. above that to just

in at their mid-market, above at we customers seen customers the strong or and So And cohort. we've which in this. into helping into result The what renewal. to is that strong of dynamics $XXX,XXX, was customers growth a has enterprise and as play positive of that quarters. slower than space. spending in in some haven't same having meant prior matriculate we is XX% saw a expansion there constrain And acquisition in a really which expansion level we terms seen time, . But we the growth little one growth did seen same new have were that that that see the of that, at X

performance being the But today year, above particularly of I XX% is This foundation is into QX our XX%. improve to a customer when really we see and approaching and It's forward next enterprise the able look where into for Enterprise base we've our ARR. have and laid in we mid-market. retention XX%. gross

and as And focus into so us, will those number contribute cohort. expand it's an the of $XXX,XXX the above positively we for within area customers that increasing

Next, Crane. we're going Kingsley with Genuity Canaccord to

you. Good to see good to everyone. Yes, see

had So seagrowth last a discussed theme nice upsell. for traditionally similar catalyst created how quarter, a we

sales it's have more strategic you in now seat that more requiring growth, from Now repositioning the headwinds some force.

that's Just going? receptive feel from that? like do to standpoint, a you And been customers have how process how then

good already of feed-based a IT volume packaging operations customers our engineering, for because don't for PagerDuty about bought standard when and growth, their it's really as do pricing positioning job we real-time Yes, security either well. or think across their organization. they're mean and I into going pricing

but that the some deals getting to adapting multiproduct And ourselves for that a fray I And the I think count instance, getting where down a of and action. question actually instantiating seeing sort can at see better where be estate, are. seat-based strategic we're think large well. we're in less and headwind. meeting as licensing But you're quite are mean I you for they that head in better just where we're that pricing a managing customers expansion growth, beyond these platform market no of

to makes there one just AI that the the It lot second initial products. like And would Ops? with and few pricing be great Okay. packaging of clear, mean, contribution to overlap looks like Yes, just be a sense. have do I great CoPilot. a on of then for on Is set a want I any thoughts But you any revenue. a

a Yes. been platform our in for that AI has more decade. Remember foundational than

events As we of consolidate we and or call on of work and are how we right you and automating live small instead an to the even AIOps resolution. few how we automate people intelligently hundreds how correlate automatically think and books how people run customers automatically, help about increasingly orchestrate a entire

been and From to Monetizing is our not goal deliver platform still to us, use AI going opportunity within perspective, a in new AI so not with a AI when a of level lot just generative resilience from are from out well. that expect there's capabilities April. platform monetization core input fidelity is that's a perspective, that cube with we new of our the since generative make get high things the and our sure that AI they customers can particular,

any we're looking want as really And sets of engage a to we effectively noise before the at platform. managing users of we the AI in features. also make different sure feature all So across our GA we're way to generative

usage first So is engagement priority. and our

will packaging we future. start services learn, we and the those as in some the to and surface pricing And of products for

Hallum, Moving next to you have ahead. Bennett. go Craig along we right switch Chad Chad, on . to if and want

the of ahead talked thinking So Howard just about growth billings kind overall. just a fourth you're you've of curious quarter the seasonality curious, quarters last at of I and how kind just know I'm least. about few quarter growth deferred billings here into

sure. Yes,

QX, quarter growth this fluctuated us XX-month the more perspective. to out for a for partly that. look So as renewals a has why biggest of into noise a know, we trading tend way and the you is is try on from of we quarter-to-quarter. to Which from focus lot billings . When some us Chad, get our as metric

them are is place renewals just take metro seeing how about think some that the momentum next setup a payment. for of that on factoring a we So we're around upfront in a billings doing -- other deals this us QX. we often deals, that, was the are for gives view in of thing these us and larger the year. And also that are multiyear that giving high volume Those quarter

I probably But billings to third? year-over-year quarter the Okay. that fourth on mean, fair in than on pressure it a there's more basis say is

us. be quarter I large like us. perspective, for tends last a a QX comparison think quarter a was for to is it And QX from year -- large

will there So that compare from perspective, is a tougher. be

Got you it. you on on gleaned, as in of kind I'm maybe gave received guess, tool receive on on know we much? more do I can we enterprises on people sure how of so as spend, this headwinds with of we scrutiny -- little just moderation the And of bit terms maybe indicating, don't and just I we on just And then call, need some the just or it is less. seat you've not maybe developers -- of or not that you've it and insight one platform on did. the the but of any the hey, part many thought just much and this renewals maybe then there or a renewals feedback Is

No. and customer what That's the have we lot try like we're or large in renewals. reach do shorten large our what from learn their decides I it. try that in with and out and involved in a understand less we were, not and renewal. invest And to That's issues Chad. -- us usually question, thanks a And a I'm for of hearing. fact,

adding encouraged I count access customers spend the most been Howard their have actually always they of constrained. And or in In as clear, reducing environment has and funding to as It's this result and their tried has perspective customers our significantly actually to cases, as churn who declined sell mentioned demand. to. their either the cases, budgeting most a their new past, from are has to in downgrades. add when as We've soon seeds primarily available. downgrades, need budgets we or to we head never primarily macro talk it's be because of a about And add ahead see product think customers we've they

most customers. certain our areas services customers and quarters critical what But And start PagerDuty their reduce remains absolutely XX%. on pointed a that course on. PagerDuty. back out of above but services spend in do come of enterprise, in adding gross their our over keep or us essential And remains Howard couple infrastructure for see back those is then retention months we'll some to the Oftentimes, they'll of

less There in will featured may less cases, But always offering. customers cost resources head fall of just about more access a some reduction. who price-sensitive and are constrained to money, count who it's cost usually capital be prey or, to lower

I'll involved the think renewal saying I Jen's one trend because their more Chad, but of these in just think that customer, about in they a need And but find And aren't this add to been I'm use we spend. few I've who customers every to increase thing, to actually some actually of a is across comment discussions. position not PagerDuty, a

have be do like is So what to of much attempted to early days tend our customers. we in of we we did supportive COVID the

them we help whilst through sometimes environment rather be that less. in economic going more actually a platform users and have they're have can, so than on supportive rather fact, to the So they tougher out,

average every public. company. for revenue per I grown up look at customer as And that us quarter positively our still a we has went If works since

us. what mid-market continuing about available. it's expand the want to and the is see providing customers modest enterprise at particularly economic and we to our Even ensure are with really to them and customers to we're their for we that trying So need if retain cycles levels. And and view circumstances be know change. will them needs as we they that because to continue will that, change,

Chad. much, very you Thank

the we're Oscar Savera. that's believe Stanley. Morgan from going We Next, representative to

on guidance. Savera full Sanjay. a good touch Congrats revenue the quarter. year Oscar back want to on for on It's Yes. I

guiding to your flowed about like if XXX through I XQ. but to XXX you're also more like it quarter, you've math, now declined do than NRR the the sequentially beat X% looks for and the So by in

when function cut you sort is So a guidance environment super sign a better initial I'm new more now you seeing in back logos? expecting you back of QX. of the conservative was did then down to like are just and maybe Or that it wondering just than

and of Howard, I what's adapted we're seeing an one, jump said, say, environment the in, some Operations as largely response. effectively starting simply the and And whether margin as results. think we're our customers enabling really better green motion. about To can selling our for I shoots earlier, number sales more more incident proposition to than really around cloud I that the we've that's really offer really awareness that talked more confidence. driving the investing longer-term Also, in with a platform to And stabilization operations and top-down or like and to our if PagerDuty enterprise far see we've operating to we improvement of motion efforts Cloud that's land-and-expand would C-level initiatives fact, some that a we've in benefit same, had strategic resonating in . And our -- we a mid-market building recently action. understand and high-velocity been value organization a branding I complement hold, that's in sell. have place taking

you in. I'll jump Howard, let

going make our some I comments execution. to of And really view sure. think is the Yes, improving about along I our was --

have us put place. what it, that we've a been over good think in the in trying view particular, we the adjustments I And made control. control has past X can to always . quarters, Our

to QX, in I are customer mind. things and We I put of process on look keep an think in a couple there acquisition when So the enterprise. mid-market increased the at

we able growth. value know higher higher long that's we're for the area So to actually sustain an to where be and term, going

landing will the there but at dollar-based contribute those values, in a higher that expect we it at enterprise mid-market net retention and contribution positively year. this in the and So from be customers QX, positive to doesn't

a within mix a also We we quarter. the react that revenue positively elements few revenue perspective, have to from have, do

self-managed process we're leads positive For contribution within have if example, automation, the done, -- that a positive some services we has revenue or revenue. if quarter, to our to environment, we also deals if delivering it

guidance from those in that ARR. It's straight So the we factor through flow all the a gave. purely of to not we

your to want do if analysts, I the raise or questions for you And to Okay. free hand remind have team. feel comments our

Next, hear going from to RBC. we're

We have Anushtha Mittal.

I platform? think to Mittal. to about And have just from start revenue more or -- then perspective? its you how about Anushtha contribution PagerDuty Jelly adds value maybe a how -- we the acquisition with is that talk This should to and the margin of can

how ticks cadence Yes. access I'll been mostly because even fantastic are super strong acquisition Jelly those Howard map on talent. our fold, surprised excited of about on technical We've into both both touch touch I bring making this. PagerDuty strategic road customers the the and acquisitions accelerate boxes. us customers by And that really the financials. a strategy our and about give to But to the I have like are of positively excited we can -- mean, thrilled Jelly then are excited our it. had

and customers learn resilience hearing developers, overall to it happening SREs the going very it of developers. of those from I incidents operations And prevent ago reasons incident from because similar improve pretty seamlessly. One years forward. and their many those was the a is apply major learnings large to from personnel immediately and to and to Jelly IT production beloved do about an was What it by does we're enables Jelly. joined PagerDuty ethos again.

of Slack far, I and for. features, well some been our for weeks, so And we're that a customers really culturally but of have including been number only Jelly asking aligned there of integrations mean, instance, are as companies couple a it's

market, invest future the the what it the developers strong sort from look and ROI that were the they immediate gives So going of about Jelly really did accelerate me has of Jelly lot anyway. a in optimism to a efforts of But and like. brand that we connection of to encouragement lot preference sort see that could

small a they're is company. a -- very It small

so know overall immaterial say us growth incident our expect Howard do posture going the would I management be And we and help it's that in it to advance but will to revenue, future.

little a add was actually bit Jen. additional I'll of Thanks, QX a just event. commentary. This Yes.

will it subsequent earnings. within as released or a in the reflected so. be will our next which the XX-Q, So day after day event be Typically

components just some is -- high So the the the And it we in factored we be details provided. doesn't and the move that. both able needle. on a of revenue a materiality you'll that small, at contribution, a guide the to see perspective revenue not expense really level from from really into

us the I that when it, of team to the that sales for about great accelerate year optimistic built we will that Jelly,and technology has the But really leveraging it believe next more fact, to positive at look because in from value will, use our along us what us a allow be with capabilities, I'm perspective. brings Jelly go-to-market

helpful. fiscal next know building on -- you providing guidance I we And any one in model? yet. mind can post That's On blocks it. should year's or you're guide it keep Got provide about official not think But we as more. 'XX, we think then should

Yes. Sure, Anushtha.

trailing So to at I as around but with expecting exit we're yet would billings not think it. providing QX guidance you XX%. XX-month is this about say, how We're

you a good thinking place in a terms So modeling. starting of I good -- think that's point about for

see over we're that demand we expecting both of accelerate expect own to we ARR increase in are the our and the year. With to execution, improvement terms growth that seeing the in

year. we ARR will higher to year a at So where end we are exiting next rate ending up this growth

margins. of period modest to over not points operating time. to certainly margins, of think a modeling, about revenue well our continue expand that So improvement look continue to a at but we that's certainly the basis expanding looking from year, but we our as it how X,XXX path would a

Okay, team.

over for does any back Jennifer, to you please. will I comments, turn with think that close for it us it final questions.

just execute. joining to continue today our we term, confident you thank Well, remind us operations cloud incredibly focused and to opportunity about We're the durable, ability that building Sure. you long all a I to growth want for excited be company. on and the in profitable

So and you joining all for great have thank a us, day.