HashiCorp (HCP) 31 Aug 232024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to HashiCorp’s Fiscal 2024 Second Quarter Earnings. 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.

I would now like to turn the conference over to your first speaker today to Alex Kurtz, VP of Investor Relations and Corporate Development. you. Thank ahead. go Please

release welcome afternoon, fiscal our we financial our fiscal and today. market earnings second second call. XXXX press in announced This will results after to afternoon, the XXXX closed HashiCorp's quarter quarter issued Good be discussing

Armon HashiCorp's release, Co-Founder, you we provides an presentation In me have CTO are Navam additional and our presentation in call. that our that our review encourage Dave published to CEO, With conjunction quarter. information CFO; with McJannet; Welihinda; of and Dadgar. press We about earnings earnings advance

You ir.hashicorp.com. can access it on our investor website at

Today's which Securities safe Litigation the contain call Private of harbor Act will XXXX. forward-looking are made Reform the statements, provisions of under

performance reflect third or as include guidance plan, as financial representing believe, Forward-looking statements upon any date, will at as and identified and only or our our relied quarter and these condition of concerning and intend, expected such seek These views similar update not words and be any statements. XXXX expect, statements our for may should trends, anticipate, These be duty undertake do our today fiscal and by year. the subsequent views and statements business not we financial full financial future statements to statements. business

address Forward-looking expectations. from to risks statements cause are that to nature by materially differ and actual their subject matters uncertainties results that could

not also we prepared reconciliation are these been earnings GAAP presented release, with measures is other ir.hashicorp.com. the with we as and is the to also available measures these prepared most noted. has GAAP financial included accordance will which discuss in call, measures directly on otherwise our in well A at accordance as to the which are website accepted and non-GAAP financial how define SEC unless in financial our furnished press metrics During call The non-GAAP accounting certain generally this on financial of principles. measures, comparable

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With over Dave. to the me let that, Dave? turn call

Thank you, fiscal call Alex, earnings second for XXXX. our everyone quarter welcome and to

reported second bottom annual and results of total line our added We of with than performance million, $XXX recurring growth exceeded or to of XXX. million, that we Current $XXX representing growth revenue year-over-year quarter year-over-year solid non-GAAP a representing top XX% obligations $XXX,XXX XX revenue guidance XX%. reached in reach and with customers equal greater to remaining

Platform subscription and Boundary HCP announce in to Cloud revenue, million Our HashiDays October. Global quarter. capabilities XX% across product we this new more during and whole Europe our reached we offerings HashiCorp representing the have announced portfolio, of and our User Terraform, We're around in for $XX.X Conference revenue at excited in the Vault,

team Our challenging backdrop. an well and executed delivered ongoing solid against results

simply, to to continue their the the it though strategic that environment market. we we our the see a XXXX's elongated our Global performance win long-term Although cloud and partner deal cloud. To part difficult, of we shows for to the is plans critical transitions purchasing remain continue put cycles,

and an taking Conference three simultaneously, June, User the our sold of in in Paris, out in hosted As example we place European Munich locations London. this, in

and During become time a and scale consumption customer shared is move team Enterprise. an who a strategic XXXX. the of platform Terraform they provisioning from resources over the partner their to Global long-time engineering to the we’ve adopted their cloud how approach This using they example services by a keynote, I company, how how cloud automated was financial multinational a of large joined to excellent customer HashiCorp

ultimately and powered accelerated team more organizations delivery X,XXX cloud is applications, which with than enabled platform developers use great banking customer capabilities journey resources XXX make they to the case example Terraform, consume of new expanded customers. a their long-term their of their for autonomously their As internal use This of over us.

innovation At to announcements a also across of portfolio, briefly our in HashiDays, highlighted made that those. share and we continued I want investment few several product

availability First, a we announced HashiCorp initial Enterprise. been of interest has Boundary and the pipeline response the day. by to Boundary early exciting, highly anticipated general Enterprise with The healthy growing

finding to As until available organizations the modern was transition not Boundary management are privileged cloud-friendly a solution, market. cloud, they they which require in access

Vault across Consul. our enhancements also announced We portfolio, Terraform, and several product including

approaches teams quarter, traveled and to are to swing new message in and still them. other customer macroeconomic adopted, more transition more products faster, and infrastructure, are for provide. consistent I securely. which the our once full parts a the The cloud customers enabled is approaches requires I as Europe cloud And met from in Despite technologies heard This of conditions, with world, changed. and new managing build planning efficiently hasn't to these and

build on positioning of at at our during our time targets very meet achieving opportunity, investor same Finally, remain while for cloud that look you. in San HashiConf I I forward Francisco our focused remain I and we a it. continue ourselves reiterate event to profitability the Thank to about adoption. to optimistic HashiCorp long-term want in to October. future continued seeing we you

and over questions. look Now, to to I'd it any I forward like to turn answering Navam

us today. Dave, for joining to you, and Thank everyone thanks again

quarter, for Dave to procurement second activity quarter, our contract scrutiny team's As total remain first we Global saw ongoing. and and low within results. and our sales the pleased to top are seasonally was performance both in the cycles quarter. the we during with better delivered Enterprise line segment mentioned, also elongated, Similar Compared last quarter solid second

through to persist We cautious environment rest spending the of expect this XXXX.

continue trend despite the enterprise cloud transformation economic bigger the to also efforts we of However, expect current uncertainty.

ROI, quarter. non-GAAP business a the in the to side, for On better than on continue we forecasted resulting expense operate the heavy EPS focus with

reverts basis. flow due we cash quarter Free and cash in first to on As mainly and QX quarter. to four-quarter volume trends occur flow a a trailing quarter, cash quarter second operations cash seasonal free QX, normal view HashiCorp from and the second operations for back reminder, the contract flow and a low always is seasonally cash collections flow free the where flow in from

full through earnings to ir.hashicorp.com can presentation to GAAP reconciliations. numbers found doc Results. disclosures, you our Quarterly the read our available I disclosures on encourage under website Our and for guidance in be count Financials, full share metric non-GAAP

million. the range loss non-GAAP summarize guidance, third the $XX of expect in a to we operating $XX total the and in million range for To $XXX our fiscal 'XX, quarter of $XXX million. million of revenue to

expect $XXX year $XXX revenue the total 'XX non-GAAP expect the the $XXX million range loss in of FYXX and operating $XXX fiscal and For million. in of million range we million full and

A Q&A. couple of final notes before

non-GAAP in into These quarter severance guidance. $X costs typical an the the seasonality First, to from our additional summer the $X.XX a we has our due non-GAAP have in reduction amounted months, reminder, in million our costs as from to and third was included the or quarter EPS. second, last expenses. seasonality And force factored

are attention. any are many In also October of be of at event Alex? your to your closing, IR and you available on Thanks Armon on investor our XXth for live to I our site. Dave, see take we excited streamed questions. that will

go we can you. question? Thank our to Operator, first

line question from Thank Instructions] show Ittai you. Kidron of our the from go Please first I comes Oppenheimer. ahead. [Operator And

feel she's Thanks can I how sales thoughts you field, the anything noticeable and progression this on you like quarter force talk perhaps first Susan's about guys. on productivity in Shortened there? share to doing early, days you it's Maybe how any planning? the point And it. but can know what do she's about side, I maybe, the and about

super certainly field the with her question, land. the adding time Dave. She's Hey early And Ittai. her Thanks is just the through Company lay Susan on would teams, Susan for spending Board to excitement I value. folks the the question. that the that her It's and remind the of to there's for On It's time with well already her involvement leadership. for a understands us. been say lot of super, understands

for and and I -- a of around around it. that would perhaps of would broader think we're that in demand the more seeing reminded this And meetings productivity, it's of cycle did progression question like the I I The say were how the environment infrastructure question I for life say, the with Next sort who And the XX role in profound the in sort of world. largest companies town play I'm pretty Google week we critical is companies event.

organizations But said, we of focused of that the plans just cloud change certainly And or software in market. the have the we're in world. that people's any And on trust our of said, we we're being that market reflected in an a lot in midst there's the I in in on approach. optimization largest see and dynamics don't spend, think and competitive the of winning conservatism the the general, material cycle, being

of Wolfe And ahead. I the Research. Please comes show question from from our line Zukin go next Alex

I few projects, first just And one mentioned on do has one any guess, the bigger numerical did it model change, following generative the some out thinking environment here And the or over of is quarter, beginning guess from kind it or quarter should quarters? and into maybe some other then, of between a in BSL pushing just how of the then that spend gotten priorities, you the about crowding out you, end of like for you the we if coming next for the time kind the unchanged. Dave, and better and initiatives other be change worse? almost I longer see picture, meaning course scale? recent Navam, any changing impacts

tackle to in let try I’ll couple I'll a Armon those maybe them. of order to and answer

since on consistent. no, question demand in it the of the On feels the couple honestly, environment, pretty last months,

considered our of we've the communicate, parts always stack. products very to infrastructure been clear they're because seriously deeply very, are As

signals demand through is -- And remain out we the that consistent flows procurement find later. so, super that front-end how

net say change. huge not would I So a

people On just AI implies in that priorities, keep the cloud. need this actually would push back to to spend point mind I

their as are cloud that truth, built on our in New in much role. a orientation And play are that applications as the products is infrastructure. AI

what's covers actually, say, I under much So, the underpin happening our products in would estates. cloud the of

that generally speaking. we are so, of And part initiative strategic

comment the describe best it. Any other probably it? make you’d Armon that's way So, about to

Yes, sure.

more add are implies point, but strategy. I multi-cloud. what think or I is actually is, seen think predominantly enterprise it I two lot maybe customers we've which CSP one one Dave's that that, hybrid a had a Because things, than implies it from on I'd think of to cloud,

a with across user looking I Terraform. think are of enabling salience with multi-cloud leverage best-of-breed across And access these things how Vault, people in like of terms at portfolio estate. enabling provisioning obviously the our with raises they it technology services and do Boundary Now different across control that multi-cloud access

interest seeing helpful around has invested like quarter and also do on-premise Nomad in that the us. I I a there And this are that data drive Nomad. tools there GPU that been was So, then customer in heavily was for think think And to discussed priority that workloads. to interesting an center, expansion private that shift major folks we're we

So, sort and a we are continuing to us. of workload bunch of shifts, driving interesting on-premise both for in cloud see AI

model enables continue allows license us long-term what right think invest the on it's and impact to about, was BSL change from No, get that's and really expect And the last really product. I question, open how to we think in for in do. any key is and which to innovation change us that's what to us that. we I motivation the your that should understanding do the the

expectation And in terms so, revenue. no of

Scotiabank. the comes Please line And our Nick of I from go from ahead. Altmann show question next

Awesome. quick two-part I question the guess a BluBracket. here. had a Thanks, I maybe guys. of question on acquisition just

is The appetite just secondly, a be more should on then, whether of can basis that of is should around from go-forward or And is, we guys not M&A there any maybe expect acquisitions, larger revenue types of to do or we contribution first being unpack maybe just acquisitions? strategy your aware one these you any BluBracket? and there

philosophy me of Sure. talk Yes, take of M&A. the we're kind one, let about about how we can first the thinking

and well in ahead with team teams, amount We're the and products, schedule-wise of sort incremental that's of the product a on small of the both So, integrating revenue. from company BluBracket, the is and process thought of where integration. we integration integrating going came

So, have to our that short relatively hope market on in order. is

of more integrated. So, year small as it's expect fully contribution impact we next to revenue today, and a

to focused very As offerings, there we of on a us, kind for synergy. of think sort of philosophy adjacent where M&A are where that products much about we're core there's are our the natural

us I BluBracket for interval? their that synergy obvious the gap. my And that think first Vault, I BluBracket, with obvious estate customers So are with helps solve that for help is secrets I and question how was onboard in have starting do

buyer same to synergy clear has adoption. really adjacency, and obvious helps an it's So, Vault accelerate

our think really lies. I interest that's where

products And alignment products, accelerate our buyers. obviously, to map. As we we for look across core to our opportunities core road look there core are where and

go next Our from question Gray ahead. from of line Powell Please the BTIG. comes

a questions. Great. numbers for the of taking Thanks And here. good congratulations on set

wanted guidance. current If and RPO So, drill the growth just ticked on basis into higher improvement we then, quarter. I good the that current actually just how dollar year-over-year to maybe versus at should slightly I to a QX, had RPO translate And absolute sequential an in the QX. look just

So, I'm revenue just there from anything curious, QX. QX other was that in would just why roughly conservatism is flat than explain

parts Just think to moving there any about?

Navam Hey Thanks Gary, here. for it's question. the

bookings the we're solid and very quarter. CRPO with yes, happy this So performance

to compared and that last you half. talked which compared transformation what And have QX second the time, basically the The continuing. the to half, has a thing same in cloud but So and QX you've is a year's into to is got purchasing seasonally right? an about, we're back digital company, you different enterprise environment, at Dave efforts So, demand is second as factoring first a the environment that challenging quarter was of half software have seasonality which larger quarter, remember a solid performance.

So, QX that's into guidance. and factored our forecast QX

on seeing cRPO you're impact growth the that's line. versus So, revenue the

I the with very cRPO forward. pleased So overall, results think we're

of comes question ahead. the from Mark line Please from JP next Morgan. Our Murphy go

customer growth Navam, That great that volume nice to that's similar Gray’s. the adds. noticed see. with question cRPO, a I low sequential of occurred to in

just And wondering explain mechanics. could you I'm if the so,

to Google pretty Terraform have the at, had of in And Armon, you for I deals And terms wanted mix, a million. looked we Next in that you, that your been to few chunky the then did XXX climbed ask downloaded provider different I Google just instance, anything For at composition? it's for million noticed announcement XXX times.

somehow I'm mentioning there Is look moving actually optimizing? kind movement? more is into wondering actively? Do like footprints slowdown kind of that should just -- it companies looks of their a Azure and see faster -- spreading as Google this are while in shockingly the terms it if it's And of of that So amidst -- more active. at we where what them kind you're confirming over multi-cloud little you

Sure. Mark. Thanks,

I Let think those download new it we Google think impressive question, me impressed then hand your certainly, over and I think I Yes. take to -- to the second continue milestone. had back cross can thresholds, Navam. I be an as to No, point, counts

I mark billion think AWS recently crossed the X download as well.

of So, we're activity. continuing download to see a lot

think in I earlier, back multi-cloud do going the I driving AI were on a AWS do capabilities seeing think to And that comment certainly, offering. best-of-breed focused customers investments CSP maybe quite generative that I at, one is think how my hey, Google certainly has access primary Azure more we're interest. now looking I are of these announcing, is announcing, bit some of

a you look get access sort that So, I best the breed. and think focused investing how all to of think of to are driving I offerings, clouds is in do

certainly that's think fair. I So

it's And Navam. hey, Mark. Yes,

on There's customer note just a total self-serve are there's generally a customers low wide somewhere the and are end; question, mix GXK around customers high these end, the customers on customers, customer the $X,XXX On the of the year. on then the group, and there our in range spending smaller right? a

group is perspective that impact the of some small customer so terms on But almost you're of immaterial customer count, quarter. small. there's self-serve they're we customer saw revenue impact what movement seeing of total since impact, an count sort in the So of that this

customer and from wasn't the there of terms taking that team for additions on the any we impact revenue. in XXX,XXX saw We're deal sales second our remaining single any there, still gross they're the additions, in ground outsized consistent. and sort of So customer our quarter

of Thank you. Brad next Bank our comes from Please I show of go question line ahead. America And the Securities. Sills from

cloud mentioned offering. more is of then, ask a could And Terraform? you so impact to much. any results you macro wanted business? observation last to catalyst also be I those? seeing impact offerings, and color, some here that Thank for Just the after perhaps that on that more interplay? outsized that updates you resilient given you the on on on observations it's if the any please, saw What might And Vault are that Vault to going more versus an the security Terraform core quarter provide

Thanks, Yes. Sure. Brad. Yes.

among focus So in some and of updates, a shared bunch set that our we of June the cloud is key a really thematics this security from event was other Europe updates. HashiDays of

was and conversation big which as those a privileged So across around set updates Boundary. mentioned the product management what our span driving Boundary features modern a advanced one that's well self-managed like cloud tool was the our And introduction for self-managed access board, is us certainly as Dave recording of Enterprise, our lot both a Boundary Boundary was as what the session of and for. solve as Enterprise HCP a of PAM customer well cloud-delivered launch

the with a On net security tools, service introduced other cloud new around the we Vault. --

Vault is called this So Cloud Secret.

solutions So time, data great we've how we think for and available Vault public button demand and strong really much multi-tenant, easy continuing the onboard. interest onboard at use, we quickly. to that, that introduced and adoption a looking that it very to in see really made make I to easier quicker seen customers to first And to from into get and for in push simpler started looking do

policy, ease focused bunch and Around on around really Terraform different areas use of different different a onboarding. Cloud, around and cost whole of there updates capabilities, was management

when basically can a was cost. unmanaged Terraform cost a them their cloud to to workspaces import environments Terraform, thing management, resources not using femoral So, deprovision better into dev bring users to they're reduce key test so allow

capabilities different workflow around we management. and And then Consul, introduced a observability with cloud few

how management customers for for our So to clusters, observability save how to Consul looking I do at-scale do of really clusters. understand I multiple do global these do

seeing I state of -- capabilities the offering was there adoption are we're from to interest the net what healthy cloud the a new of self-management coming to so and are rate And continue drive and differentiating to the cloud. is think that cloud inbound

the we is products. the delta of impact? sort the of -- And how terms core any between macro In there are seeing various

really I think large, difference. not and any seeing by we're

to continuing multi-cloud, AI Terraform Gen there. to go as think customers I want helpful certainly benefit

I think cyber robust. very remains

and the our boundary lots portfolio of security around tools So interest Zero Trust Vault, in Consul.

I demand. whole lot seeing think a not of So differential we're

think, understand cloud. segment. essence -- question the corporate add just your just historically, one I to segment, SMB consumption comment, the going I I’d and it cloud of I'm say, from maybe the our has come about I back pull

those as invest deeply some cadence Armon like we lots database. think said, continue than, seeing customers. are of steady the we of as considered infrastructure managed interest I from enterprise a ones Certainly, to services. to are lot companies very, largest consume as always we've shoots is increasing that the that a a green But very inclined say, announced, from the more

a smaller continued optimistic the to steady do And is but that the we're see investment for the it see on and pace, cohort measured super our of is we growth happening customers. largely shoots it given that green cloud But offering so, continue we're now, there. putting we'll into

TD comes Wood of question the go ahead. from next Cowen. Our Please from Derrick line

about the early just that that that on What revenue to are Boundary, maybe GA. reps in see it I there. Andrew as just to maybe start how wanted Derrick. with about for is market far this? you're go what Thanks. with market? we saying early self-managed next they ask Dave, could it's to year? went traction your contribute It's And seeing know version so talk to about But,

one. Sure. I'll let that Armon answer

about Yes. say excited Thanks, it. I'd Andrew. general, Yes, we're very Sure. in

cloud, general have as we've to dynamic a much customers the looking they to think adopt from femoral practices. I they gotten is much and more a they're Trust infrastructure. Zero It's feedback go more

fact so that, right inbound here. as interest, we're of a well. in of seeing that in as new lot fits a And I customers think And cross Boundary from and prospects existing consequence

So few quarter, a boundary landed significant deals. we this pretty

customers some existing were these as land and opportunities from customers were expansion of well. Some

we're momentum at new perspective, been certainly, So, I we're field that capabilities signals excited think seeing to from build that very terms the And we continuing of we're with enterprise our announced from demand customers. feedback conference. has positive, in the that and

market. to borne is XX clear requirement that continues and I theory the think what's I out our this this early think introduce X on does I topic. customers say, very the be have is And customer to demand. was that of cloud with paradigm me I'd for today, in particular the conversations out new

from line Piper James Fish next of question comes from Our Sandler. the

in the Quinton really you about Jim for you Fish. is actually This on government for faced And thinking any really question. business Can good you're when guys APJ then the Thank of line our across Vault up guys? for Thanks FedRAMP or federal or a guys. the you you. agency. for opportunity Hey, about the kind In press Boundary win opens highlighted process taking Terraform? release, how U.S. that time talk haven't or in and you

thinking about In us for from SMB terms do in that progression as tends we Thanks, we're our cloud. of move today, as -- Dave be Yes. customers are to predominantly mentioned, corporate general, cloud, consuming it's how Quinton. a

a commercial market. for focus looking of the opportunity, we're on big set at unlocking the next us, As commercial it's

really So, is self-managed opportunity the a within we predominantly year, think is enterprise that's today ahead are going us that we're as the PCI and our priority customers top for commercial into bringing largest next segment.

to longer particularly FedRAMP, course, play going and I as civilian important an term, think Of SLED think, is agencies. for I role,

road on well. so it's And our certainly map as

used in clarify already. Ready, we Fed applies call that because self-managed just just to FedRAMP. there's products SaaS to sometimes to just offerings, confusion broadly that delineate. to you around point form And underscore the environment in really that perhaps are FedRAMP our could I

Morgan Please comes Singh Sanjit ahead. question Stanley. go of next The line from from the

you. Thank Great.

of that looks Terraform is question maybe around I on Theo overall. how announced like should pricing It think steady Cloud. changes, really the on like were And pricing like changes a we changes? And like for my got to adopted Sanjit. pretty that are Any kind also about quarter ability and question the wanted to upcoming You’ve but one ask will Cloud, Terraform of are receiving indications you basis, for for helpful. that? have the on color broader portfolio super in kind that of how terms then, be early go-forward what's And both on any make customers further

Armon let that. answer I’ll Yes.

Yes. Thanks Theo.

had few think I Terraform yes, on particularly limited So there simplify we And few the really sort was packaging goal changes. to goal of pricing our more was before particularly, PMP, is a Terraform different very The and a the of this tiers standard so Cloud was distinct a from free effectively tiers. and right? premium is tier sort a capability our that that of had and subset things,

the So, is standard standard a we've was tier -- there's really premium version into bring just a usage of tier. to on was goal one capped the and a and framework what done that tier design free here where the

a the in for get and So the same board, on they Terraform as value access continue tier They And our they tier, scale value sense of free suite customers Cloud they what as but on SKU. with that to our into up paying of cross full the product, get new the adds. users the the is, from to capability. it

a paid growing users using So, it being some simplifies of the into up and sense signing platform motion then in customer. really that organically

of substantial move structure side been that that But flip shift it. free in tier near-term of The of the the at paid had Terraform driven uptake you new sign-up tier given into it, of just I some to of end the the customers the that rate a it's Cloud. very is see excited impact is think we've where our low PMP

going And that's think paid of the offering for from it to think graduate they onboard as then tier our continue impact free make to I I expectation them us near-term it's So and of scale. easier it. kind an into users our to

of, looking broader obviously, In at question, think, and I fine-tuning we're the pricing terms think, and I packaging across. constantly

of align to and our think as our that so small to usage, out getting tooling philosophically want land unit their a programs to we sort as the them. ultimately and value and is I with consumption more customers cloud that we their grow they grow of of enable value they're their goal

always do but the philosophy. we're how so, looking And sort that's simplify core at we of that,

our show Truist line question from comes of Jump I the from Please Miller next Securities. go And ahead.

the thinking So to you a you this customer I'm Last activity with the curious, customers smaller did customer existing about of kind have out base. the large any maybe contract. of rightsized last an that quarter, strong or about QX one-off? is maybe is of more really a comping just that there that And confidence kind in more QX, guess, a against to of now called large you're quarter, add-on this year. incremental I from all

So, for on you that just renewal out headwinds all any opportunity -- side? and any call on the curious or Thanks. the color flip to there have

generally, very as pointed think but quarter the some our continue that with that customers. representative the And I unusual Sure. Thanks. more likely across called very called I Yes. wouldn't doing No, I of one I vendors. to be I optimization for I going the all out, to just software, underscore that customer that what think same cycle there's we're that we out on remains this we expect last quarter out a scenario, and forward. in was and is period to time, our think last And of -- go largest

Yes.

Specifically, than QX. retention gross the a was better second quarter quarter

result. with we very So were pleased that

from question the comes of Capital And Michael our I Turits Markets. line next KeyBanc show from

on is Hey, Michael. Billy guys. This for

your of open addressing geared think monetizing opportunities Does benefit monetization source source risks of I license the towards kind that keyed of on way, competitive users. been switching with have pressures the or in change more and or some code some in else? associated us something this is

Billy. Thanks, Yes.

lot associated to customers, the to whole of of the now business XX-plus license. practice, is right percent user there tools. partners a community our around and really think there's with I our change in market no impact license source In misinformation our the the

traditional So, what by the really that enabled license. our that's sense was clones our about it's a addressing product and cloning are there's NPL effectively product, been really that handful of

for us model about openly to within so community. this what's the And long-term changes continue right what to innovate is, the

that's really motivating was And so, it. what

Walravens And of Securities. comes question I our the go from from Please next line Patrick show JMP ahead.

Great. you I if guidance last from would Maybe at and this for mean, expected in have high is such big a a of level, XX%. QX for you, I QX never Dave. business your this slowdown. look just were you growing just XX% year,

that could the rank that driven maybe when So, reaccelerate? have And factors slowdown? it

as not simple I the I'm answer elements. cycle Certainly, infrastructure same the in all optimization have path sure I everybody the for is a to else. think

Global the and I we're at a think those more XXXX consistent. seeing companies buying they're customer applying we're price the starting ASP to very, and reality lower adds customer is caution wins the very at as if just are cycles. is our you slightly that What look

of which something remain to So, ago. to a of happening still That market. what would scale people some I just for plans these are customers of out, years were be intact, beginning. not the and taking function starting winning was said, larger are point a the at being that cloud start rather it propensity really if the point couple their It's their changing plans, they're we're the smaller than

of companies different the expansion cycle. lot we've are I've these seen that the two, sort life And has who applied been there. an fact, different are Point elongation not budgets and different been their a view changes think extension cycles, cyclical number at overall to stages -- of at of more surprisingly of the out in I scrutiny always sort as of

trends once on of said, get we impact super continue optimistic is can towards XX,XXX And be rates have growth sort said, customers, seeing not in and customers so to that every to you're We with. account growth cycle software we'll That that that of arc, And are every I X,XXX the these to we're our work for super I of that early stages Global vendor, next what XXXX forward, are think the aggressive. executing we us. being in like keep vision. the get moving indicative that's digestion in of to

shot a when take to we want just see it? at I might

of refer the continues to that that year, of at us our see guidance progress. which would the I best end view from reflects to how you'll this

speculation. be will else anything think I

showing in like back I That Mr. McJannet the I'm call remarks. further turn for to to questions session. At closing no our time, would concludes Dave this you. the queue. Thank Q&A

express from you and and in everyone the appreciate for the certainly participation Just my to questions. here, like thanks dialing for we all

in many at speaking you. with October. our look of forward we event you Thank So to

concludes you. Thank for conference Thank today's call. attending. you This

You disconnect. may all