Citrix Systems (CTXS) 4 Nov 212021 Q3 Earnings call transcript

Good morning, everyone, and welcome to the Citrix Q3 2021 conference call. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. event recorded. today's note also is being Please And conference call time, I'd turn the like to over at this to Traci Tsuchiguchi. ahead. go Please

remind Good earnings Bob the to Financial note posted Arlen and forward-looking Calderoni, are Shenkman, joining like Officer. for materially that and law. Interim I'd today's XXXX the risks contain Please website. Relations current assumptions on thank Vice Investor statements will letter you Officer, today's third statements Chairman call, our and to differ subject and Executive from the Safe and be conversation our Quarter those Participating expectations These Earnings have President are on based us Harbor U.S. uncertainties. will that anticipated. we under Executive that to could we Chief Third quarter made Actual Call. provision of morning for you securities results and Chief

these of and financial On the financial concerning on information defined we website. call available and from Investor end in between SEC is G. the Company's Regulation measures GAAP earnings our SEC letter highlighted various on our can of discuss Investor discussed A of will SEC. call, are page the and website. Relations the Additional the reconciliation with our in earnings by Copies as factors letter this or other be Relations 's found non-GAAP the today's non-GAAP measures today's differences at on found filings

Calderoni, Officer. Interim Executive to like Bob? our to turn Chairman I'd it and Bob Now over Chief

us. joining you morning Good Traci. Thanks, thank for and

with while Today, a Interim stepped and technology in on give foundation. this know, VDI need I markets. my thought a business the is beyond. and leader time participate healthy And see some positions X And of yet I new weeks met, X just into I DaaS a number the share solid you market, business number you we are a I has hybrid strong And my as in observations as important the by have Citrix, strong with secure, markets I And you are market. can For VDI those market business. would our the work. some Board ADC Bob with I'm on you not and trends supported remote assets views I of Calderoni, of you XXXX before will very this advantages. The ago. some few role growing. know, I Chairman early CEO. in and secular and we're tailwinds in strong We're supporting those DaaS whom

over an on a unusual of strong is ARR. with our benefited total year $X We presence model fact I of basis, rather demand. best globe, to customer billion over business cloud loyal industry our perspective, vertical. we've transition the we from revenues largely in SaaS to have base billion recurring we the have and ARR, and And across a success every in with strong proven grow dollars have and a and expect you, overall our our the extraordinary COVID to from following is believe an this by that demonstrated and XXXX remind to XX% organic nearly velocity business that a year growth ARR of health in the we this transitioned

margins I with said, deliver say, is more to happy know profitability, for I'm planning we will working rest some this are sustainable there's a can also the of side, both these share are priorities do are we business I delivering role. been rates, lots on are forward I missteps fair is to of very growth not our the I My overshadowing but months. shared the underway, in renewal These We that individuals in place quota-carrying of this to questions. overlays it's clear. strive We're and disclose with complete. work up work say Much our but and us And point excess And more go-to eliminate to they management look long-term forward team course address look our to achieving. along missteps your you can't I'm be focus going QX let are sales on clearly way, of say need again call investments shore of fixable. and the signaling very for need open incentives rates part objectives I is be and the and strong part Another and now all selling not issues which partners. coming our solid to There's commissions. me XXXX. and of positive achieve along right to our however, as confident success. think our largely that the direct and of better on to to to all investments this for and improving. to our of have own forecasting, the renewal predictable, With flow. We I of rates. while recurring set the these growth the with to you put for call. objectives market and motion in important earnings cash our channel in And channel revenue metric over the talking ARR, yet our any as capable a health we I with programs many in total

gentlemen, and time question-and-answer this begin Instructions]. we'll at Ladies session. the [Operator

Evercore Kirk first with your question momentarily will question. from Materne And ahead pause We to roster. assemble go the from ISI. Please our comes

be visibility things go-to a then Anything And you the side, What's motion about beginning much. the maybe on better to get in just more any your by gone the worked? bit how quarter. getting channel? be pipeline us. hasn't I wrong would how very correcting there, little the there's little would going that channels as can next just of you deal what's -- that not market your think of just to channel isn't the Bob, sense trying changed that it front I'm secondly expectations an the about year you assume comments, be into market execution year. what this talk is been and maybe to just delivered. you're it's the between a Meaning bit couple on settle it changes go-to early a again, Thanks and on fourth Okay. in. it [indiscernible] for on of going

our the And more of is or certainly. the think Look, the that over an to Kirk They're sales channel -- made to about we partners. still gone how else's about sales their organization the really organization, and business. about our do Citrix we're of there, as it related on them with changes and which selling business some like our were to our be two channel compensating changes year need some of hasn't conference part program, of that channel profitability call part talked think focusing channel us. tweaked. in Yes. channel away. any business the The of is products; parts the channel to it somebody issue they're profitable earlier a some was the I of partners to The want just Company not really reduced and I incenting past on for other make compensation

with the few there we've how started to taken. make on more partners to our attractive take We've already business for channel actions are So them.

some was modified The opportunities here the pipeline, to business. sharing we're out also year. short-term over with to of programs. new of at way start We've give it Citrix some like more moved [indiscernible] them non-covered the of and business. we them of like that encourage stall, compensation on Think plans, first recently XXXX, we compensation for and as our to the more structured beginning the them a that do leads We're things in going typically the focus are for our

cloud them in So with didn't giving the more but we our around the to we and put incentives. them place. them transitioning educating we'll existing of in structured be really And approach we're lastly, wait before customers working financial transition in some to then incentives on want motion, XXXX,

think their they more and good well. as that's we for good us, them if opportunities there's to for business help we to cloud them move So add but to really business their our not value customers only think expand

fixable. but just I'm if So some be to and we or year something, attractive more see bit pretty you last the to of sold the done. over sales of did before take get more it it's Might attractive. confident and little a a Clearly of reverse X more just business have we like we the we uptick, make to then things will. make the that sell time And force, it you'll more

from one through bit color quarter. quick ARR that That's just bit a color. income get we is EMEA both, basis And parts great. want I a cloud on where the I shift statement, of that front. lot just wanted Thanks as little to or Might there's Arlen, behind be perpetual just to this the to could it Is what's one that of a EMEA realized be? if moving down was ask go you'd Arlen. I Thanks. on again but this some going on but all masking for

Kirk. Thanks,

where causing and it's that is the they're happening. Europe seeing in that of moving the of consistently is terms we're transition. just in terms headwind really that transition think of cloud, I the U.S. what's ahead And that to fast

we more tuned transition, the nothing and up we'll it to but continue that. think as I than quarters of just couple last the see

Super. you-all. Thank

Radke ahead Our next question. question comes from Citi. go with Please from Tyler your

on and what actions in Company initial you. where actions that through were. areas I back. low-hanging a years Thank thoughts fruit cost of here and been good of just over realignment terms Hey, Obviously, morning just welcome QX. take restructuring the some lot you the curious has see the on you biggest ask you and initial announced wanted your the the for

I restructuring thing does includes is everything better focused growth. Well, longed only doing business job in foremost, think is, that that terms that first of on that we're say but And on and is the believe any first includes margins, I've growth. focused something execution a not I'd this is and

margins, ensure are growth. our that making remove And that only from growth. we're us to depress of investments we the that looking distract but we're distractions support all So to not necessary looking

think of important I it. an as So focus part

or will keep our we're to would individuals changes compensation increase. channel be changes think say that some I to and are going carrying the I -- is that making we're quota providing partners. making thing we're going direct earlier, our the I increase mentioned it and increase about to going to other we're

support we're other with front get more to that in in business. line said, of again of going efficient and growth more And think will aspects business. revenue-generating of the is be this our investment So then and I parts

that the saying last I'm one organization, introduced to getting think and overlays we've go-to-market I have the early things XX over I've found a many many XX where same good the people we many compensated too as on got of too I months too think deal. don't that's And we on, far instances thing. months.

capacity I sales think time. think that it also cost, at more away adds the takes same only I not

us to So solutions, investments portfolio, that sure don't and to shore again, tied in trough are of the have then make and we're going and areas, improve content positioned we're organization. of we the all to a lot will those. flow. material organization R&D, of also changes to the organization I we're in the other is of to and cash our see saying closely will are lot in the of VDI-ADC we're I'm anything up -- more see year have that an making think for margins flow. those our things our drive growth, looking in margins needed driver and that else grow. so end as a those remove definitely important and to it both product of one growths that going And it of at really better XXXX a most parts And drive significantly to going a cash I is be confident confidence the

much a to that think and value. out as we're can going I one create more of Company and So stronger come this deliver

of on like drivers in you to this one-time cash year. could And you. year-to-date flow. And looks And free be QX, what's items, related comments free I'm cash the year. significantly just follow-up the last performance pretty think if a much can rate, relative it this How you we can but going Thank as the you if we be initial flow's the to maybe just makes of able what saw between implied bridge that. sense for don't to looks the on the by And down for any Yes. a I have XXXX, know is comments unpack free wondering to about the cash items. just and Arlen, to if obviously of kind XXXX flow normalized restructuring growth more one-time driven of from for

think Tyler, I of it. would

First as to parts know, moving lot of all, a of you there do are that.

normalize and they're So is -- to it, for us it just

it very is complicated.

stabilizing more are cash we That anything that as we're at had Company, look drive of try multiyear as which and reasons letter the on being happen like? said, should the of the for is fair how at the in that guidance I we going flow where look taken expense haven't drive new a that. account we included fact compensation normalized about into the think increase you that said One 'XX, think obviously, cash if highlighted free was there because is in we I and to is Bob much a you're as restructure. going, a the go think which free the year basis going it's to factors you of to what in result conversation towards help might trough it haven't to think it

think So an a it's on free if we that last the about were included normalized that's flow years, probably think it more you might concept about at basis, few thinking to I way of in not conceptually. anything But do. accurate look to cash your

Yes.

I think this year.

in have quarter Arlen be from that largely the that this of growth, of think flow added I out last the Last year. surge some would said, following headwinds year as year. do bonuses, Again, drove spillover revenue it were in COVID, the and year's a on. We lot cash commissions first gets and paid

So you this from I million, as that are spillover year. And down into year. last then see, at year our margins least think, this can $XXX

a that of XXXX and side. higher much premature or but get coming cash marginal It's flows shouldn't track have effect I levels an expect won't will on point and next headwind we have off spillover quantify X. the inflection year in the year, reverse So yet. improvement here I margin be to and right the on back

Thank you.

with Mark comes Moerdler from ahead question. Our next from Research. Bernstein question Please go your

problems that you speed mind. much Cloud my know you step. X both Thank follow-up have And plans term perpetual good licenses the you on, for questions on. Citrix in for a and going of a them you've recognized fact it's complexity licenses the big of I and can is up Can WorkSpace, A lot very perpetual have were was are for taking you question. your getting disincentive randomly a term make if to selling maybe don't portion of them then the you for licenses? or now gotten modify sell licenses? Arlen. to What rid term which you I licenses

model Look, I delivery a and the a ratable then there's model. -- think there's

moved but largely thing that's moved And On recurring. our think increase will revenue. we've all not -- store by ratable, that. It's of we've it's recurring -- lifetime think I model, all revenue a important on the all the customers I revenue most doing we've recurring basis, we ratable because from the our

think As can far I but we've I delivery to force think for driving we try that. the encourage as it's incent to done can that a We delivery wrong doesn't them, them. model them, customer work model, to a largely

do good interest we're SaaS customers You revenue growing thing see over probably not we force Company the in But SaaS I think tries and to not $X in their nicely. is that is a do. any to our -- business, something growth billion that's best when to now

while business all if really And -- recurring. that total to us easier was be I on is now it it'd it revenue recurring follow So is got we've best a the metric ratable, the at good think annualized to feel I look basis. the

models. look I encouraged think different having of we noise business noise all sorts the out at if that, very also of out by It the the sorts licensing that results. I'm transition. the model And

the That's that that to that's this XX% saying And and the business. really and XX% I'm will investors quarters that. have think that is well. And being good. to velocity for I I as and in provide on year. can revenue. I approximately for metric marketing through We growth of for me; think in important something recurring really full-year, a full-year, understanding to health at the we That's the metric good you be an X We're investors internally will of increasing and you out about focus transparency us additional feel I think most see messages other both our

the are for model. Citrix. sense around tied want about is customers going think them cloud, to a rate I bigger on reality. Citrix think a And that to to do because we've makes Now, times to got that just naturally do often infrastructure not delivery We pace that recognize decision migrate much to cloud them I and the just

down we've companies seen industry. appreciated. other What the in be Is would pulls licenses to color it years? term many Any software? than networking the it of X.X for Lower

Yeah.

I out for second, there was But think cut a about about X.X. I you of your duration Mark. think question

Yes.

high, we're to going of contracts. of the expose some on are and it And is which fourth for have to I as of way about condition, us continue quarter as of is And SaaS go transmission compare as the those ADC if is the the to that business, expect we're [indiscernible] we of a we up. the to you look, we things continue X.X to is, well when fast licenses, think puts business, first as it the That the happy position for to see us. all, all recognize, said, you going with being duration, it a obviously had sell think to combination you high a where in modification as

we of are we're where Some of be in business. we the where those happy terms transition going the with to with are threshold. our But are, of

continue do which expect up will to go We transition that over going to the to other [indiscernible] up, faster to will but anything push that time. not we're than continue

makes That you. it. sense. Thank I appreciate

the This mean, I'd the up on down. ARR than longer-term deals earlier duration be of term great shorter revenues. sign that reported is why point about having noise goes should indicator because have deals, I duration down, be rather or example obviously, focus a versa. my misleading duration we a be could or good and it and but if vice less up quarter, goes duration could in creates but And a

So I as the going to all indicator normalizes and ARR to of would increasingly that point that's everybody better that, be metric and a health I our underlying of velocity. think

you. That appreciate. Thank I makes sense.

Brent comes your Jefferies. go Our from Please next question from question. Thill ahead with

want than It Bob, you items the that of the in. the Most through manage you the confidence that trough have quite flow. you on talk like you given I you of talk cash through less Thanks. seems this XX% that listed put your to a when investments number the margin that the What those that, to and can a have cloud investment to-do list. companies about there's year? are penetrated trough all and of confidence gives bit being and

scale do a a both. am Well, Citrix, software firm business-like a business I can in believer that our

think have reasonable we respectable grow I think levels, can that I profitability. we and at can

than beginning at because a largely, of down went the surge XXXX. that were expectations year of what for set year level we unrealistic margins was in greater this bookings a the Our

are if surprise year I be lower but think, -- looking line, a levels they this booking to look everyone about think realistic. year internal trend don't the year better felt past will -COVID negative And I not XXXX, be pre higher. the like. I'm line it think higher we had better things looks have we you're trend of think lot would differently than would than if I XXXX. -- happened this forecasting what would a a we I lot a they're But that when

good wind that's thing you not salesforce. first high your for too is setting The up quotas and

and down You into going saw from XX% maybe, not for for also the XX% margins last allow the you to the that of to to about business Company year they're come come get XXXX. spending revenue you're

think on. program. things These to I restoration work that a this have is all margin we fixable are operating very

growth. comments And growth, I and As I my chew that in going about we're is then But anything this growth, gum. limiting think is about funding funding walk earlier, distraction. said to isn't it's this not a

can we do think And can both. it. organization do this I

is And changes about maybe of comes you fine you anytime going a shakeup the want how of you leader the kind how tune make? in, there When be. overhaul, characterize is to versus new would about magnitude think concern big to the

is This intact. of that a a Strategies business lot has tailwinds.

work here I to stay. think is remote hybrid

good that. that a is I in time. be think should about overhauled for business strategy needs don't think lot of tailwinds feel to this all. quite growth secular the there at I some fuel I really

are I things. think these fixable operational

focus companies think a and on Sometimes I successful takes business. run more than it only growth and growth, that to

don't think I you It I off think both. a can grow than growth it this and in choking an operationally a be business. either better having And or, can we're is business. little margin have we by you not is sound

you. Thank

Our next questions. go from comes ahead question Karl with UBS. your Keirstead Please from

Bob. Thanks,

of exit ADC I follow the signal lines. issues, need that to sale the that noticed you're you and the a correct or major product doesn't that are operational the up a businesses fixable or interpretation, sends as Bob? any contemplating to question. And did express commitment that say you outright these an a Citrix really last Is When on overhaul Just that not strategy service.

business we're at and we're that DaaS in we're in are in we're about right VDI when in. solutions, I largely the business, content think Now, largely today; business, ADC X business. the the the Those we're businesses

all I about businesses. those of feel good so X And

ADC our to see an investing ADC service VDI I of a continue DaaS part as important and We and are as we'll that. in do solutions.

are X edges we're investment what that sometimes going in those around investments is that being of businesses. synergistic stuff made those largely to of always every stay doing. we're So But and to like all the there's Company,

think, distractions. investments those sometimes are, I And

going have going get that's so It's isn't, going the funded, on well it to doing to It's to contribution now. the defunded. we're portfolio right it's get to meaningful where a growth. analysis if And and

Got it.

And it's that doing clear we're that.

So I high growth. be going will that has think going priorities. across behind there to change. change. at I be fewer have it's than no growth too too level, thin themselves are How support many that see a to limit Companies can some more put something to not detailed more think, at a we level, But be spread wood successful companies arrows,

Okay. That makes sense.

I've been telling the organization since I nothing got here, important. when is everything is important,

So focus we have to on important. what's

growth Got over I much the was other Bob, largest what's bit one as that things of a be it, the better that story that part and to reducing job important the call your I you by notice attrition Wrike. a I last that heard perhaps for around Wrike. is is Citrix this I of acquisition years. can at Arlen, important did trimmed makes Citrix? guide Wrike driving synergies guess sense. little an far haven't such several plan do around think 's the around on that That

Yeah, -- change year. Company the to look, XXX. a Wrike ARR XX million XXX full from to the its went for forecast did estimate XXX to

point underperformed earlier slightly So so it's it's of still think nicely. growing view, I but from it -- expectations, that

and good better than have that a business higher that. growing all I in can and to to we good acquisitions, organization strong growth. that there market I of see as is got that true those so acquisition, The our temporary can of I still always do of we've think a think down and and growth a But, I it's I product. [indiscernible] Like confusion get think after happens be see it in ARR is a continuing level an of is all driving here. business. in mid-XXs some And as growth. things I think an growth pretty some there, we settled start again,

Terrific. of in Okay. these luck Best initiatives.

Great. Thanks.

from Sanjit from Singh question question. go your Morgan ahead Our next Stanley. comes Please with

the at cloud, ARR that XX% but the want high-level, always are base get seen those the that think to has that what growth on of over been more with the you given that efficiency the at think interpreting that the really to the pace X it have make issue? you the more squeezing we've through last answers And the the that and question questions just are been the is. thanks, quarters, transition. cloud has Cloud that happy Thank the you and When it's operations efficiency that rather to around to X the you Bob, is have me the for I'm the satisfied pace question. executing I which to of seems you and your of The efficiency guys of want I better, being in or listened than the and correctly. importantly, really pointing the you for you're sure source things We that moved pace at and business taking you the been just do issue of look with of metrics? me transitions

is I I board, of there me, transition, is think efficiencies number really it's this to on there. the focus And one growth focus on this it's the I way I right the total not - that to the but With the business and across the focus Company platform, only To the platform don't think quite on year transition. ARR. a at of that's continued also that off of that's prem accelerating. think level of continue Clearly we of onto Cloud pace Cloud drive think there. our contrary. No, velocity the read the that's existing moving sales pace been through and versus good XX% to and new customers want That's

priority profitable more in with want to XXXX. have our I are margins higher fuel So that number earlier, also priority. the to continue than But Company is growth like we mistake don't the both can a comments we we be growth. over and Growth said one

Our didn't growth because this, mistakes. come margins were a with and this we fueling made of down we year couple came down too much margins

to need Let and that we we're up. clean them up, to going motion me clean go-to-market

Understood.

Just to margin follow up on the question. broader

message which we you distinctive the margins, transition that several have digest market through growth In and philosophically over potentially broadly going to is so subscription talk economics going margins flow growth, to this been period have cloud we the a back guys really a we're I distinctive. step the a other but and the cloud 's take we about is if to a unit to a lower of then improve you other think compelling and last tradition software messaging revenue ultimately investors from have think transition are cloud slower during side the going come to are in to and typically transition I maybe most all were years, position. flow the that companies Citrix cash strong looking cloud SaaS, cash transition, of out to our that

you're -- be cash in go? to going the flow that's to concert growth. margins, you the drive that is the to direct idea But do understanding philosophically, sales this with people investing -- point So path confident right that growing transition, SaaS around still feel

Yes.

transition. be this changes we're transition. on growth. the maybe But the X of going quota-carrying to making to call that restoration progress a direct about I I going and the the number program the will think should a And is growth think talking that not I really in investments think, we're around, channel are are the Company on supporting I having here, we're if increase improve good the margin margins lot focused that are I growth. to the adding margins. increase And shared better again, over our compensation is emphasizing focus somewhere a We're growth, made focus to take and If just say directly not the accountable on looking you to to growth, mean, away doesn't would we're what else, sales going going aren't for things expense. that overlays delivering that adding having bunch of do. that's and We're investment frontline. that add I driving to individuals. be said

of a growth. a read XXXX. don't for is year set of and to [indiscernible] growth. margin haven't going objective and Growth this I'm direction [indiscernible] really that is support it's -- the think We cash yet just is number we're for that It our But in lieu flow. at of objective. both point giving in X XXXX

Bob. I you. thoughts, appreciate all the Thank

question with Capital next go Dan from from RBC comes Markets. Please our question. ahead your And Bergstrom

guys you hear me? Can

we hear Yes. Yes, can sir, now. you

and and to is improving, first Hedberg. Matt I that is that at good confidence you renewal this margin? just guess are good I voice. growth looking of hear of I you change continue rates This when noted your to -- and hear. review and focus hear to And can on period strong that was what process, into know really you actually but you're gives all, Bob, encouraged which Okay. the

of it's think of I our strength the business. an Well, indication

there's health the misinformed. I out now the I and think right out look, there that's the narrative and think it's a questioning business there strength of

healthy. that's here we've think business a got very I

I in think that at see in ARR reflected can XX%. you growth the our

of them to is Azure right but competition in out the fact can point That, for bit this to the Citrix lot a you relationship infrastructure lot see business and drives strong -- partner moving it's very of now, pointing business of we that a it's a with because they in the that very that's think consumption. value little it big I to And partner I very healthy a Microsoft on think ours. we better, of Azure. healthy, a I environment. of narrative It there, out in good contrary a where as again, have And they're getting a symbiotic renewal see a would us. rates competitive sign

the we we're that so uptick significant with jointly, also deals a on deals uptick on of working a So and on partner. significant of size the Microsoft. in working the we're we're in that is deal, we most the deals Microsoft monitor see have those both number a working We that

to cloud, and the all solid reason say we are would that transition seeing More noise, suggest year is and transition the our of of If the votes are to think I in a at that other rates, here look of that lot most I of and strong biggest I think that from encouraging, Citrix metrics missed are I throughout our very, to that look term. double-digit me, doing because making the very of our the and in of the our stumbled partnership To that part with ARR ARR quarters are we're out the first all, the confidence some in complicated our making reported with there's confidence that's on And pointing business long existing of in see the this own narrative I there. all why me, metrics why customers that And that we our SaaS move. of at growth I these narrative growth, obviously rates. Microsoft. inconsistent think part are the renewal reason have business. of strengths if Cloud, to [Indiscernible] prem So really revenue of a tremendous in objectives, is I customers business In couple there. I'm - to that's a Citrix think vote

really work. Bob. of helpful, work, really flexible That's built enabling is obviously, And sort hybrid upon then Citrix

narrative you I - Citrix It customers, important started How be of is your you you that your work. XXXX. across are of a mean, a in to guys hybrid businesses. If lot in more always well-positioned since directly should role, to -- do that? see learnings that of me struck post really maybe COVID talking to new leverage tailwinds how noted you lot

work think cases not of aspect think I lot a start very to think mad realize hybrid it's to and security a the more performance And big scramble not remote connectivity going important. people that as has in it. towards there solved it, where going problem use and Citrix very of lot But ways last year our was that fact, business even there lot way. companies big a incremental lot a companies. and from year. more Last important. different was a of came benefits for I of might a Well, got be that was Citrix this it's permanent aspect more I time, it, to And remote move strength. over think actually very aspect are a I just reactive, to has to a to becomes big work

big Citrix and that orders performance work. any the in of advantages of is facilitating have form of magnitude VDI. One our HDX performance levels other -- is something of more our a hybrid technology That's that and the remote we

some that a security put to a So becomes more require bigger I issue, at towards and bigger think going complex of Citrix disadvantage as and move alternatives actually also other thinking, out the use cases it's there.

So I underlying well. this is of a and moving there real secular of to be Citrix This think as going is some currents off tailwind is thread. that direction forever the

Bob. luck. Best Thanks, of

you. Thank Great.

and we'll would Bob gentlemen, to any closing to answer I that, and today's back ladies session. the turn floor concluding with question like Calderoni for be And over remarks.

final a Thanks, everyone for joining Thanks. I today. just you few Great. leave us want thoughts. to with

in I believe working conference rate of what a progress. number moving I success can better you the our sharing I to the of next of we've we of feel terrific overall in are at beyond. things they ARR As comments, all also our in the the nearly about understanding scheduled or recurring continued is the It's growth pace Cloud good business to underlying to XX%. on revenues, got at moving of And to I plans at. forward XXXX, and we plans growing we that's in And those well. momentum look get at my And are strength call. good there every business an have mentioned all going XXXX with business, and health of for all are, deliver Like good. reflected the the

then, very much. So you until thank

gentlemen, and that, conclude We with joining call. for you today's conference presentation. thank we'll today's Ladies

disconnect You may your lines. now