Rapid7 Inc (RPD) 2023 Q2 法說會逐字稿

Thank you for standing by. My name is Jessica, and I will be your conference operator today. At this time, I would like to welcome everyone to the Rapid7 Second Quarter Earnings Call.

謝謝你的支持。我叫傑西卡，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Rapid7 第二季度財報電話會議。

(Operator Instructions)

（操作員說明）

I would now like to turn the call over to Sunil Shah, VP of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係副總裁蘇尼爾·沙阿 (Sunil Shah)。請繼續。

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Rapid7's second quarter 2023 financial and operating results in addition to our financial outlook for the third quarter and full fiscal year 2023. With me on the call today are Corey Thomas, our CEO; and Tim Adams, our CFO.

謝謝接線員，大家下午好。感謝您今天加入我們討論Rapid7 2023 年第二季度的財務和運營業績，以及我們對2023 年第三季度和整個財年的財務展望。今天與我一起參加電話會議的是我們的首席執行官科里·托馬斯(Corey Thomas)；和我們的首席財務官蒂姆·亞當斯 (Tim Adams)。

We have distributed our earnings press release over the wire, and it is now posted on our website at investors.rapid7.com, along with the updated company presentation and financial metrics file. This call is being broadcast live via webcast, and following the call, an audio replay will be available at investors.rapid7.com.

我們已經通過網絡分發了我們的收益新聞稿，現在它與更新的公司演示和財務指標文件一起發佈在我們的網站 Investors.rapid7.com 上。此次電話會議將通過網絡直播進行現場直播，電話會議結束後，將在 Investors.rapid7.com 上提供音頻重播。

During this call, we may make statements related to our business that are considered forward-looking under federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include statements related to the company's positioning, strategy, business plans, restructuring plan, financial guidance for the third quarter and full year 2023 financial goals for full year 2024 and the assumptions underlying such goals and guidance. These forward-looking statements are based on our current expectations and beliefs and on information currently available to us.

在這次電話會議中，我們可能會發表與我們的業務相關的聲明，這些聲明根據聯邦證券法被視為前瞻性聲明。這些聲明是根據 1995 年《私人證券訴訟改革法案》的安全港條款制定的，包括與公司定位、戰略、業務計劃、重組計劃、第三季度財務指導和 2023 年全年財務目標相關的聲明。 2024年以及這些目標和指導所依據的假設。這些前瞻性陳述基於我們當前的期望和信念以及我們當前可獲得的信息。

Actual outcomes and results may differ materially from the future results expressed or implied in these statements due to a number of risks and uncertainties including those contained in our most recent quarterly report on Form 10-Q filed on May 10, 2023, and in the subsequent reports that we filed with the SEC. The information provided on this conference call should be considered in light of such risks. Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements and reported results should not be considered as an indication of future performance.

由於存在許多風險和不確定性，包括我們於2023 年5 月10 日提交的最新季度報告10-Q 表格以及隨後的報告中所包含的風險和不確定性，實際結果和結果可能與這些聲明中明示或暗示的未來結果存在重大差異。我們向 SEC 提交的報告。應根據此類風險考慮本次電話會議中提供的信息。實際結果和某些事件的時間可能與此類前瞻性陳述預測或暗示的結果或時間存在重大差異，報告的結果不應被視為未來業績的指標。

Rapid7 does not assume any obligation to update the information presented on this conference call, except to the extent required by applicable law. Our commentary today will primarily be in non-GAAP terms and reconciliations between our historical GAAP and non-GAAP results can be found in today's earnings press release and on our website at investors.rapid7.com. At times in our prepared remarks or in response to your questions, we may offer incremental metrics to provide greater insight into the dynamics of our business or our quarterly results. Please be advised that this additional detail may be onetime in nature, and we may or may not update these metrics in the future.

Rapid7 不承擔任何更新本次電話會議中提供的信息的義務，除非適用法律要求。我們今天的評論將主要採用非 GAAP 術語，我們的歷史 GAAP 和非 GAAP 業績之間的調節可以在今天的收益新聞稿和我們的網站 Investors.rapid7.com 上找到。有時，在我們準備好的評論或回答您的問題時，我們可能會提供增量指標，以便更深入地了解我們的業務動態或季度業績。請注意，此附加詳細信息可能是一次性的，我們將來可能會也可能不會更新這些指標。

With that, I'd like to turn the call over to our CEO, Corey Thomas. Corey?

說到這裡，我想將電話轉給我們的首席執行官科里·托馬斯 (Corey Thomas)。科里？

Thank you, Sunil, and welcome to everyone joining us on today's second quarter 2020 earnings call.

謝謝 Sunil，歡迎大家參加今天的 2020 年第二季度財報電話會議。

I would like to start by acknowledging the plan we announced today to restructure and optimize our organization by reducing Rapid7's employee base by roughly 18%. While it was an extremely difficult decision, we believe this step is critical to build on the momentum we're seeing in security operations and to position us to be a more profitable growth company in 2024 and beyond. I will discuss more details about the strategic rationale behind this decision and the associated financial impacts later on today's call.

首先，我要對我們今天宣布的計劃表示認可，該計劃旨在通過將 Rapid7 的員工人數減少大約 18% 來重組和優化我們的組織。雖然這是一個極其困難的決定，但我們相信這一步驟對於鞏固我們在安全運營方面看到的勢頭並使我們在 2024 年及以後成為一家利潤更高的成長型公司至關重要。我將在今天的電話會議上詳細討論這一決定背後的戰略理由以及相關的財務影響。

Let's start with our second quarter results. I'm pleased to report that Rapid7 ended the second quarter was $751 million in ARR or 14% over the prior year and delivered revenue and operating income above our guidance ranges, alongside better-than-expected free cash flow. During the second quarter, we continue to see strong and improving traction with our consolidation offerings. Customers are gravitating towards our holistic security operations stack, particularly threat complete, which unifies risk and threat management into a single integrated offering.

讓我們從第二季度的業績開始。我很高興地報告，Rapid7 第二季度末的 ARR 為 7.51 億美元，比上年同期增長 14%，收入和營業收入高於我們的指導範圍，自由現金流也好於預期。在第二季度，我們繼續看到我們的整合產品的強勁且不斷改善的吸引力。客戶傾向於我們的整體安全運營堆棧，特別是威脅完整，它將風險和威脅管理統一到單個集成產品中。

The performance of our packages once again exceeded our expectations as over 1/3 of new ARR in the second quarter was driven by either a direct or cloud risk complete deal as customers look to increase the effectiveness and efficiency of their security programs by consolidating their vendor footprint. A great example of this consolidation was a 6-figure ARR deal in the second quarter with an existing InsightVM customer that was looking to replace a legacy SIEM solution managed by an MSSP. Building on our established VM relationship, Rapid7 was uniquely able to provide the customer a comprehensive security solution and our best-in-class technology coupled with the expertise of our stock analysts was amplified by the value proposition from our Managed Threat complete offering.

我們的軟件包的性能再次超出了我們的預期，因為第二季度超過1/3 的新ARR 是由直接或云風險完整交易驅動的，因為客戶希望通過整合供應商來提高其安全計劃的有效性和效率腳印。這種整合的一個很好的例子是第二季度與現有 InsightVM 客戶達成的 6 位數 ARR 交易，該客戶希望替換由 MSSP 管理的傳統 SIEM 解決方案。基於我們已建立的VM 關係，Rapid7 能夠以獨特的方式為客戶提供全面的安全解決方案，我們一流的技術與股票分析師的專業知識相結合，通過我們的託管威脅完整產品的價值主張得到了放大。

We competed against many large players in the extended detection and response space. And the customer chose Rapid7 based on the strength of our automation capabilities, our security and incident response expertise and our predictable pricing model. This customer is indicative of the current environment where customers are upgrading and consolidating providers while looking for better quality services and experiences. Customer spending dynamics in the second quarter were broadly in line with our expectations with ongoing macro sensitivity, influencing customer budgets. We've optimized our sales efforts around this new normal by leaning into customers' needs for more cohesive, efficient solutions that are aligned with their resource constraints.

我們在擴展檢測和響應領域與許多大型企業競爭。客戶選擇 Rapid7 是基於我們的自動化能力、安全和事件響應專業知識以及可預測的定價模型。該客戶代表了當前的環境，客戶正在升級和整合提供商，同時尋求更優質的服務和體驗。第二季度的客戶支出動態基本符合我們的預期，持續的宏觀敏感性影響了客戶預算。我們圍繞這一新常態優化了我們的銷售工作，深入了解客戶對更一致、更高效、符合其資源限制的解決方案的需求。

Our strategic focus around SecOps consolidation continues to gain momentum, and we are driving, focused innovation across our core products and capabilities to accelerate customer value. We are particularly focused on integrating a frictionless cloud security experience into risk management programs for mainstream buyers. A great proof point is our recently introduced Executive Risk viewing, a new capability, they give security practitioners unify visibility to risk across all combinations of on-premise, cloud and hybrid environments. Executive Risk views ability to holistically assess risk and track security program effectiveness is a complete differentiator for us across VM and cloud security. It's also an example of our unique ability to add value for customers by leveraging the breadth of our Insight platform.

我們圍繞 SecOps 整合的戰略重點不斷增強，我們正在推動核心產品和功能的集中創新，以加速客戶價值。我們特別專注於將順暢的雲安全體驗集成到主流買家的風險管理計劃中。一個很好的證據是我們最近推出的執行風險查看這一新功能，它們為安全從業人員提供了跨本地、雲和混合環境的所有組合的統一風險可見性。 Executive Risk 認為，全面評估風險和跟踪安全計劃有效性的能力是我們在虛擬機和雲安全方面的一個完全優勢。這也是我們利用 Insight 平台的廣度為客戶增加價值的獨特能力的一個例子。

Our expertise in helping customers secure the cloud and hybrid environment is illustrated by a 6-figure competitive win in the second quarter with an enterprise manufacturing company. As an existing customer, built out a strong risk management program with the traditional environment with Rapid7's vulnerability management and app sec solutions. Despite a flat budget this year, the CISO security teams needed to extend risk visibility and management into their growing cloud footprint.

第二季度與一家企業製造公司的 6 位數競爭勝利證明了我們在幫助客戶保護雲和混合環境方面的專業知識。作為現有客戶，利用 Rapid7 的漏洞管理和應用程序安全解決方案在傳統環境中構建了強大的風險管理計劃。儘管今年預算持平，CISO 安全團隊仍需要將風險可見性和管理擴展到不斷增長的雲足跡中。

After an extensive POC, Rapid7's cloud security capabilities set us apart from other well-known players for multiple reasons: our ability to provide unified visibility to risk across the full environment, the integration and ease of use of our platform, and our ability to offer extensive automation, including automated remediation. Ultimately, these product differentiators, combined with the budget predictability and value proposition from our cloud risk complete offering led the customer to consolidate this part of their SecOps stack on the Rapid7 Insight platform.

經過廣泛的POC 後，Rapid7 的雲安全功能使我們從其他知名廠商中脫穎而出，原因有多種：我們能夠在整個環境中提供統一的風險可見性、我們平台的集成性和易用性，以及我們提供廣泛的自動化，包括自動修復。最終，這些產品的差異化因素，再加上我們的雲風險完整產品的預算可預測性和價值主張，促使客戶將其 SecOps 堆棧的這一部分整合到 Rapid7 Insight 平台上。

Turning now to our strategic areas of focus as we enter the second half of 2023 and look forward. We remain anchored on our core customer mission to make the best security operations technologies accessible to all. Let me share with you how we're optimizing to executing against this mission through our focus on the modern SOC. With the industry undergoing a customer-driven shift to consolidated security platforms, the early success around our integrated SecOps strategy is evident as our consolidation offerings track ahead of expectations.

現在轉向我們進入 2023 年下半年並展望未來的戰略重點領域。我們始終堅持我們的核心客戶使命，即讓所有人都能使用最好的安全運營技術。讓我與您分享我們如何通過關注現代 SOC 來優化執行這一使命。隨著行業正在經歷客戶驅動的向整合安全平台的轉變，我們的整合 SecOps 戰略的早期成功是顯而易見的，因為我們的整合產品超出了預期。

Looking ahead, we see an evolving set of critical customer dynamics in this space. First, we have noticed a customer shift from cloud security as a specialized function to cloud security as an integrated capability within security and SecOps teams. We view this as a massive demand driver for integrated SecOps and think that we have a significant opportunity to be the leader in delivering integrated risk and threat management across on-prem, cloud and external tax services.

展望未來，我們看到該領域的關鍵客戶動態不斷變化。首先，我們注意到客戶從雲安全作為一項專門功能轉向雲安全作為安全和 SecOps 團隊內的集成功能。我們認為這是集成 SecOps 的巨大需求驅動力，並認為我們有很大機會成為跨本地、雲和外部稅務服務提供集成風險和威脅管理的領導者。

Second, as the threat landscape continues to grow in complexity, customers are showing more demand than ever for integrated expertise to support them in effectively managing their security technologies. The convergence of these key trends, security consolidation, integrated cloud security and expertise-driven outcomes are the foundation of what we view as the new modern SOC. Rapid7's focus is to be the leading provider of integrated security solutions for the modern SOC by providing risk and threat management within the context of overall security delivered as a service alongside expertise tailored to the needs of each customer.

其次，隨著威脅形勢的複雜性不斷增加，客戶對集成專業知識的需求比以往任何時候都更高，以支持他們有效管理其安全技術。這些關鍵趨勢、安全整合、集成雲安全和專業知識驅動成果的融合是我們所認為的新現代 SOC 的基礎。 Rapid7 的重點是成為現代 SOC 集成安全解決方案的領先提供商，在作為服務提供的整體安全環境中提供風險和威脅管理，並提供針對每個客戶需求量身定制的專業知識。

Let me walk you through 3 distinct opportunities for Rapid7 to support the modern SOC, and why we believe that we are optimally positioned to win. One, customers continue to upgrade from legacy log-centric detection to cloud-native detection and response programs. With over $300 million of our ARR and detection response with a growth at over 25%, it is clear that customer demand is strong, and we have to establish both the scale and product leadership to win this opportunity. Two, customers can no longer treat their risk and threat functions as distinct. The modern SOC manages threats as a function of risk and vice versa. With our integrated best-of-breed capabilities across risk management and threat detection in both cloud and traditional environments, we are uniquely positioned to deliver this integrated experience to mainstream buyers.

讓我向您介紹 Rapid7 支持現代 SOC 的 3 個獨特機會，以及為什麼我們相信我們處於獲勝的最佳位置。第一，客戶繼續從傳統的以日誌為中心的檢測升級到雲原生檢測和響應程序。我們的 ARR 和檢測響應超過 3 億美元，增長率超過 25%，顯然客戶需求強勁，我們必須建立規模和產品領先地位才能贏得這個機會。第二，客戶不能再將其風險和威脅功能區分開來。現代 SOC 將威脅作為風險的函數進行管理，反之亦然。憑藉我們在雲和傳統環境中的風險管理和威脅檢測方面的集成最佳功能，我們處於獨特的地位，可以向主流買家提供這種集成體驗。

And three, customers are increasingly reliant upon both greater levels of automation and integrated expertise alongside their technology. Having built best-in-class service augmentation with our global stock presence, we see massive potential to drive high-margin managed services, both through existing offerings and investing in accelerating our strategic managed service partnerships.

第三，客戶越來越依賴於更高水平的自動化和綜合專業知識以及技術。通過我們的全球庫存建立了一流的服務增強功能，我們看到了通過現有產品和投資加速我們的戰略託管服務合作夥伴關係推動高利潤託管服務的巨大潛力。

With that context, let's talk about the strategic decision we announced today to restructure our organization and reorient our cost structure, and how that positions us to better execute against our strategy. We recently completed a deep analysis of our cost structure through the lens of accelerating our investments, to deliver the most comprehensive modern SOC offering for our customers. Earlier today, we announced plans to reduce our global workforce by approximately 18% and to consolidate our global facility footprint.

在此背景下，我們來談談我們今天宣布的重組組織和重新調整成本結構的戰略決策，以及這如何使我們能夠更好地執行我們的戰略。我們最近通過加速投資的角度完成了對成本結構的深入分析，以便為客戶提供最全面的現代 SOC 產品。今天早些時候，我們宣布計劃將全球員工人數減少約 18%，並鞏固我們的全球設施佈局。

There are 2 clear outcomes from this reorientation. First, it is clear that we have an opportunity to [lend leaner] as a business. About half of our plan changes are efficiency-related cuts that we expect to flow directly to the bottom line. These include streamlining management layers, reduction of role overlap and optimizing our own and offshore talent mix. Second, we have a compelling opportunity to strategically reallocate investment to key areas that we believe will drive the most long-term value for customers. With a vast amount of our product expansion now behind us, we can reallocate and accelerate investment in capabilities and services that customers are purchasing around the modern SOC, including our managed service partnerships.

這次重新定位有兩個明顯的成果。首先，很明顯，作為企業，我們有機會[提供更精簡的貸款]。我們大約一半的計劃變更是與效率相關的削減，我們預計這些削減將直接影響利潤。其中包括精簡管理層、減少角色重疊以及優化我們自己和海外的人才組合。其次，我們有一個絕佳的機會，可以戰略性地將投資重新分配到我們認為將為客戶帶來最大長期價值的關鍵領域。隨著我們大量產品擴展的結束，我們可以重新分配並加速對客戶圍繞現代 SOC 購買的功能和服務的投資，包括我們的託管服務合作夥伴關係。

We expect these changes will meaningfully optimize our cost structure while enhancing future product capabilities and delivering a higher quality customer experience. Ultimately, these changes position us to drive strong and more profitable growth over time by aligning our investments with our customers' long-term SecOps needs, while at the same time establishing a strong free cash flow support for our business. Tim will guide you through more specific financial details later on the call. But at a high level, net of the investments we are making in strategic focus areas, we expect these measures to substantially expand our profitability profile while driving significant progress towards our midterm Rule of 40 objective.

我們預計這些變化將有意義地優化我們的成本結構，同時增強未來的產品功能並提供更高質量的客戶體驗。最終，這些變化使我們能夠通過使我們的投資與客戶的長期 SecOps 需求保持一致，隨著時間的推移推動強勁且利潤更高的增長，同時為我們的業務建立強大的自由現金流支持。蒂姆將在稍後的電話會議中指導您了解更具體的財務細節。但從高水平來看，扣除我們在戰略重點領域進行的投資後，我們預計這些措施將大幅擴大我們的盈利能力，同時推動我們在實現 40 條規則中期目標方面取得重大進展。

Looking ahead to 2024, we believe these actions position us to deliver at least $160 million in free cash flow in 2024 and doubling from our current 2023 guidance of $80 million. Given the investment levers in our business, we have confidence in our ability to scale free cash flow in 2024. While it's premature to set any revenue or ARR growth targets for 2024. This free cash flow expectation does not assume improvement in the macroeconomic environment, and we're confident we can execute to this target even if our top line growth or to be sustained at this year's levels.

展望 2024 年，我們相信這些行動將使我們能夠在 2024 年實現至少 1.6 億美元的自由現金流，比目前 2023 年 8000 萬美元的指導值翻一番。考慮到我們業務的投資槓桿，我們對2024 年擴大自由現金流的能力充滿信心。雖然現在設定2024 年任何收入或ARR 增長目標還為時過早。這種自由現金流預期並不假設宏觀經濟環境有所改善，我們有信心能夠實現這一目標，即使我們的營收增長或維持在今年的水平。

Shifting our focus back to 2023. I'm pleased with the progress our team has made during the first half of 2023. Laying the groundwork for us to drive ongoing customer impact with our integrated SecOp strategy, including executing to our first half growth targets. Looking to the back half of 2023, we continue to see line of sight to our original full year ARR guidance range. With that said, we believe it is prudent to establish a high confidence expectation range that accounts for a modest degree of disruption over the next 3 to 6 months as we implement the strategic realignment. As a result, we're reducing our full year ARR guidance by approximately 2% at the midpoint to account for potential disruption. This is coupled with a significant ramp in our operating margin expectations, which we will now expect to improve by approximately 700 basis points over the prior year. Tim will share more specifics on this in his comments.

將我們的重點轉移回 2023 年。我對我們的團隊在 2023 年上半年取得的進展感到滿意。為我們通過集成 SecOp 戰略推動持續的客戶影響奠定了基礎，包括執行我們上半年的增長目標。展望 2023 年下半年，我們繼續關注最初的全年 ARR 指導範圍。話雖如此，我們認為，在我們實施戰略調整時，建立一個高信心預期範圍是謹慎的做法，在未來 3 至 6 個月內考慮到適度的干擾。因此，我們將全年 ARR 指導值中點降低了約 2%，以應對潛在的干擾。與此同時，我們的營業利潤率預期也大幅提高，我們現在預計營業利潤率將比上一年提高約 700 個基點。蒂姆將在他的評論中分享更多細節。

In summary, we continue to focus on highest value, most impactful areas of our business on behalf of customers. While the changes we announced today are difficult, we have a compelling opportunity to position ourselves to deliver stronger, more profitable growth, and we remain committed as ever to our enduring goals, help customers securely transition to the cloud, expand the capabilities and value of our Insight platform and balance strategic investments in durable growth with expanding profitability.

總之，我們將繼續代表客戶專注於業務中價值最高、影響力最大的領域。雖然我們今天宣布的變革很困難，但我們有一個令人信服的機會，可以讓自己實現更強勁、利潤更高的增長，並且我們將一如既往地致力於我們的持久目標，幫助客戶安全地過渡到雲，擴展雲的功能和價值。我們的洞察平台，平衡持久增長的戰略投資與不斷擴大的盈利能力。

Thank you all for joining us today. I will now turn the call over to our CFO, Tim Adams, to share additional detail on our financial results and outlook. Tim?

感謝大家今天加入我們。我現在將把電話轉給我們的首席財務官蒂姆·亞當斯，分享有關我們財務業績和前景的更多細節。蒂姆？

Thank you, Corey, and good afternoon to everyone on today's call. Thank you for joining us.

謝謝你，科里，今天電話會議上的大家下午好。感謝您加入我們。

Before I turn to the results, a quick reminder that except for revenue, all financial results we will discuss today are non-GAAP financial measures, unless otherwise stated. Additionally, reconciliations between our GAAP and non-GAAP results can be found in our earnings press release. Rapid7 ended second quarter of 2023 with $751 million in ARR, consistent with our expectations and growing 14% over the prior year, reflecting continued demand for our Insight platform with the strongest growth contribution coming from the high priority areas of detection and response and cloud security.

在我討論結果之前，先快速提醒一下，除了收入之外，我們今天討論的所有財務結果都是非公認會計準則財務指標，除非另有說明。此外，我們的公認會計原則和非公認會計原則結果之間的調節可以在我們的收益新聞稿中找到。截至2023 年第二季度，Rapid7 的ARR 為7.51 億美元，與我們的預期一致，比上年增長14%，反映出對我們的Insight 平台的持續需求，其中最強勁的增長貢獻來自檢測和響應以及雲安全等高優先領域。

We continue to see threat and cloud risk complete offerings tracking ahead of our expectations at over 1/3 of new ARR in the second quarter, with the benefit coming from both landing new customers and driving upgrades and expansion within our base. We also saw balanced contributions from new and existing customers in our overall business during the quarter with ARR per customer that grew 7% year-over-year to $66,500 as existing customers leverage more capabilities on our platform. We saw a nice improvement in total net customer adds ending the second quarter with nearly 11,300 customers, representing growth of 6% year-over-year. Second quarter revenue of $190 million grew 14% over the prior year and exceeded the high end of our guidance range. Product revenue grew 14% year-over-year to $182 million and was better than expected on favorable linearity in the quarter. International revenue grew 17% over the prior year and represented 21% of total revenue, while North America revenue grew 13% year-over-year.

我們繼續看到威脅和雲風險完整產品的跟踪超出了我們的預期，第二季度新增 ARR 超過 1/3，其好處來自於吸引新客戶以及推動我們基地內的升級和擴展。我們還看到本季度新客戶和現有客戶對我們整體業務的平衡貢獻，隨著現有客戶利用我們平台上的更多功能，每位客戶的 ARR 同比增長 7% 至 66,500 美元。我們看到第二季度末淨客戶總數有了很大改善，客戶數量接近 11,300 名，同比增長 6%。第二季度收入為 1.9 億美元，比上年增長 14%，超出了我們指導範圍的上限。產品收入同比增長 14%，達到 1.82 億美元，由於本季度良好的線性關係，好於預期。國際收入同比增長 17%，佔總收入的 21%，而北美收入同比增長 13%。

Now turning to our operating and profitability measures for the quarter. Product gross margin was 76% in the second quarter and overall gross margin was 74% and both in line with our expectations. Sales and marketing expenses represented 39% of revenue in the quarter, down from 41% in the prior year. R&D expenses were 21% of revenue, unchanged from the prior year, and G&A expenses were 7% of revenue compared to 8% in the prior year. Higher revenue, combined with slower hiring in the quarter drove stronger-than-anticipated operating income of $13 million in the second quarter. Our adjusted EBITDA was $19 million in the quarter and diluted net income per share was $0.18 better than our guided range on higher operating income.

現在轉向我們本季度的運營和盈利能力指標。第二季度產品毛利率為76%，整體毛利率為74%，均符合我們的預期。銷售和營銷費用佔本季度收入的 39%，低於去年同期的 41%。研發費用佔收入的 21%，與上年持平；一般管理費用佔收入的 7%，而上年為 8%。收入增加，加上本季度招聘放緩，導致第二季度營業收入強於預期，達到 1,300 萬美元。本季度調整後的 EBITDA 為 1900 萬美元，攤薄後每股淨利潤比我們較高營業收入的指導範圍高出 0.18 美元。

There are 2 additional items from the second quarter, I want to mention that our non-cash and do not affect our non-GAAP results. First, our GAAP net income reflects a $13 million noncash charge related to a capped call transaction from our 2023 convertible bonds. These bonds were retired as part of a refinancing nearly 2 years ago, but the associated cap calls require us to record a mark-to-market adjustment at the end of the second quarter. This cap call transaction was settled in early August, resulting in a cash receipt of slightly over $17 million.

第二季度還有 2 個額外項目，我想提一下，我們的非現金項目不會影響我們的非 GAAP 業績。首先，我們的 GAAP 淨利潤反映了與 2023 年可轉換債券的上限贖回交易相關的 1300 萬美元非現金費用。這些債券在近兩年前作為再融資的一部分而退役，但相關的上限要求我們在第二季度末記錄按市值計價的調整。此次上限認購交易已於 8 月初結算，現金收入略高於 1700 萬美元。

Second, as part of the restructuring plan, we will be consolidating our global real estate footprint. As a result, we incurred a noncash charge of $27 million in the second quarter related to real estate assets that we determine are not necessary to support our strategic growth objectives.

其次，作為重組計劃的一部分，我們將鞏固我們的全球房地產業務。因此，我們在第二季度產生了 2700 萬美元的與房地產資產相關的非現金費用，我們認為這些資產對於支持我們的戰略增長目標來說沒有必要。

Moving to the balance sheet and cash flow statement. We ended the second quarter with cash, cash equivalents and investments of $296 million. This is before the $17 million we collected in August related to the cap call transaction on our 2023 convertible bonds. Operating cash flow was $31 million, and we generated $26 million of free cash flow in the second quarter, driven by stronger profitability and more favorable collection trends.

轉到資產負債表和現金流量表。第二季度結束時，我們的現金、現金等價物和投資為 2.96 億美元。這還不包括我們在 8 月份收取的與 2023 年可轉換債券上限贖回交易相關的 1700 萬美元。運營現金流為 3100 萬美元，在更強的盈利能力和更有利的收款趨勢的推動下，第二季度我們產生了 2600 萬美元的自由現金流。

Now turning to our outlook for the remainder of the year. The restructuring plan we announced today is a focused effort to align our organization and our investments around the areas of business that are driving the most value for our customers. This was not a decision we made lightly, and we believe these actions will enable stronger and more profitable growth as we invest to meet customer demand for consolidated SecOps solutions. We expect to incur charges of approximately $24 million to $32 million related to the restructuring plan throughout the third and fourth quarters of 2023, of which the majority are expected to be cash expenditures and weighted towards the third quarter.

現在轉向我們對今年剩餘時間的展望。我們今天宣布的重組計劃是一項集中努力，旨在圍繞為客戶帶來最大價值的業務領域調整我們的組織和投資。這不是我們輕易做出的決定，我們相信，隨著我們投資滿足客戶對整合 SecOps 解決方案的需求，這些行動將實現更強勁、更有利可圖的增長。我們預計 2023 年第三季度和第四季度將產生約 2400 萬至 3200 萬美元的與重組計劃相關的費用，其中大部分預計為現金支出，並加權到第三季度。

We also expect to incur $3 million to $4 million in non-cash impairment charges from the consolidation of our real estate footprint throughout the second half of 2023. These restructuring charges will be excluded from our non-GAAP operating income and non-GAAP net income results, though the cash expenditures will be reflected in our operating cash flow and free cash flow. As such, the cash benefit of reduced head count will be offset by the associated severance-related cash charges. As a result, we are maintaining our expectation of approximately $80 million in free cash flow for the full year.

我們還預計 2023 年下半年我們的房地產業務整合將產生 300 萬至 400 萬美元的非現金減值費用。這些重組費用將不計入我們的非 GAAP 營業收入和非 GAAP 淨利潤中儘管現金支出將反映在我們的經營現金流和自由現金流中。因此，減少員工數量帶來的現金收益將被相關的遣散費相關現金費用所抵消。因此，我們維持全年約 8000 萬美元自由現金流的預期。

As Corey mentioned, we are updating our full year ARR outlook range to $800 million to $805 million or approximately 12% to 13% in growth over the prior year. This is roughly a 2% reduction in year-over-year growth at the midpoint, which despite healthy year-to-date momentum in our business, we believe, is appropriate to account for modest disruption risk in the business as we make these important strategic changes. We are adjusting our total revenue guidance for the full year to $771 million to $775 million or roughly 13% growth. The $3 million reduction at the midpoint is wholly driven by lower professional services revenue, tied specifically to our restructuring cost actions, which we now expect should be approximately flat compared to last year. We are raising our full year operating income guidance to a range of $86 million to $90 million, which represents approximately 700 basis points of operating margin expansion over the prior year. We expect full year net income per share to be in the range of $1.23 to $1.29 based on an estimated 67.5 million diluted weighted average shares outstanding.

正如科里提到的，我們將全年 ARR 展望範圍更新為 8 億至 8.05 億美元，即比上一年增長約 12% 至 13%。這相當於中點同比增長大約下降 2%，儘管我們的業務今年迄今勢頭良好，但我們認為，這對於考慮業務中的適度中斷風險是適當的，因為我們將這些視為重要的戰略變化。我們正在將全年總收入指引調整為 7.71 億至 7.75 億美元，即增長約 13%。中點減少 300 萬美元完全是由於專業服務收入下降，特別是與我們的重組成本行動相關，我們現在預計與去年相比應大致持平。我們將全年營業收入指引提高至 8600 萬美元至 9000 萬美元，這意味著營業利潤率較上一年擴大約 700 個基點。根據估計的 6750 萬股稀釋加權平均流通股，我們預計全年每股淨利潤將在 1.23 美元至 1.29 美元之間。

Turning to quarterly guidance. For the third quarter of 2023, we expect revenue in the range of $196 million to $198 million, which represents growth of roughly 12% year-over-year. We expect operating income for the third quarter in the range of $29 million to $31 million and non-GAAP net income per share of $0.41 to $0.44, which is based on 71.7 million diluted weighted average shares outstanding. As we look out at next year, we expect to generate at least $160 million in free cash flow in 2024, doubling from our current 2023 guidance of $80 million. We feel good about our results year-to-date and about our ability to pursue the strategic opportunities ahead of us as a leaner, more agile company.

轉向季度指導。對於 2023 年第三季度，我們預計收入在 1.96 億美元至 1.98 億美元之間，同比增長約 12%。我們預計第三季度營業收入在 2900 萬美元至 3100 萬美元之間，非公認會計原則每股淨利潤為 0.41 美元至 0.44 美元，這是基於 7170 萬股稀釋加權平均流通股計算的。展望明年，我們預計 2024 年將產生至少 1.6 億美元的自由現金流，是我們目前 2023 年 8000 萬美元指導值的兩倍。我們對今年迄今為止的業績以及我們作為一家更精簡、更敏捷的公司抓住戰略機遇的能力感到滿意。

Thank you for taking the time to join us on the call today. And with that, we will now open the call for questions. Operator?

感謝您今天抽出時間參加我們的電話會議。現在，我們將開始提問。操作員？

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Matt Hedberg with RBC.

我們的第一個問題來自馬特·赫德伯格 (Matt Hedberg) 與加拿大皇家銀行 (RBC) 的對話。

So just one, let's see. So I just wanted to maybe get a better perspective on the full year guide. I mean, obviously, the Q2 results were good. I just want to be clear, is the full year reduction just a function of the restructuring? Or is it that you're seeing macro trends deteriorate? Just maybe a little finer point on sort of the assumptions on the 2% reduction would be super helpful.

所以只有一個，讓我們看看。所以我只是想更好地了解全年指南。我的意思是，顯然，第二季度的結果很好。我只是想澄清一下，全年的減少只是重組的結果嗎？還是您看到宏觀趨勢惡化？也許對 2% 減少的假設進行更細緻的闡述會非常有幫助。

Very reasonable question. So the first thing is that we were really focused on looking at our cost structure, both this year, but more importantly, as we go into '24. And we decided that if we're going to have the right cost structure in the '24, this is the right time to actually make these changes. Now secondary impact is we have to really assess is what's the risk of these changes in the business. As you know, we had a back-end loaded year. But I would say it's foundationally, we were trending well towards what we had set out. But when we think about the amount of change that we're doing with the 18% reduction in a back-end loaded year, we want to make sure that we actually gave a guidance range, so a very high confidence guidance range. So that was the primary driver of the change in the guidance.

非常合理的問題。因此，第一件事是，我們今年非常關注我們的成本結構，但更重要的是，隨著我們進入 24 年。我們決定，如果我們要在 24 年擁有正確的成本結構，那麼現在就是實際進行這些改變的正確時機。現在的次要影響是我們必須真正評估這些業務變化的風險是什麼。如您所知，我們度過了後端負載較重的一年。但我想說的是，從根本上來說，我們正在朝著我們設定的目標發展。但是，當我們考慮後端負載年份減少 18% 所做的改變量時，我們希望確保我們實際上給出了一個指導範圍，因此是一個非常高的置信度指導範圍。所以這是指南變化的主要驅動力。

Your next question comes from the line of Saket Kalia with Barclays.

你的下一個問題來自巴克萊銀行的 Saket Kalia。

Okay. Great. I'll keep it to one as well. Corey, maybe for you. You talked about using this restructuring as a way to also reallocate resources. And clearly, there's a profitability benefit. But also as a way to reallocate resources to the areas where customers are seeing the most value I was wondering if you could just go one a little deeper into that. What product areas do you think are maybe going to get a little bit of increased investment? Where do you think you can get a little bit more profitability? Tell us how you thought about that?

好的。偉大的。我也將其保留為一。科里，也許適合你。您談到使用這種重組作為重新分配資源的一種方式。顯然，這會帶來盈利優勢。但作為將資源重新分配到客戶看到最大價值的領域的一種方式，我想知道您是否可以更深入地探討這一點。您認為哪些產品領域可能會增加一些投資？您認為從哪裡可以獲得更多的盈利能力？告訴我們你是怎麼想的？

That's the question. In fact, one of the things that we actually saw is we were seeing extraordinarily strong, healthy performance conversion rates in certain parts of our business aligned with what we actually saw with the package strategy that we actually laid out. We have to make sure that our entire organization was aligned around it. And frankly, it just wasn't. And that gave us -- this gives us the opportunity to actually get the alignment, right?

這就是問題所在。事實上，我們實際看到的一件事是，我們業務的某些部分看到了異常強勁、健康的績效轉化率，這與我們實際制定的一攬子戰略中實際看到的情況是一致的。我們必須確保我們的整個組織都圍繞它保持一致。坦率地說，事實並非如此。這給了我們——這給了我們真正實現協調的機會，對吧？

The areas specifically, Saket to your very the question is really I think about 3 core areas that we're really going to hope. One is what we think about the modern SOC is customers are looking to upgrade their thoughts to drive efficiency. They need both great technology, yes, but also a consolidation play, but they also need expertise on demand. And so if you look at the investments that we're making, we're really bringing the modern SOC together, which people have to actually market their traditional environment, but they also have to really market their cloud environment, and they have both managed risk and threat. We've seen increasing demand and traction with that strategy.

具體來說，Saket 對於您的問題是，我確實考慮了我們真正希望的 3 個核心領域。一是我們對現代 SOC 的看法是客戶希望升級他們的想法以提高效率。是的，他們既需要出色的技術，也需要整合，但他們也需要按需提供的專業知識。因此，如果你看看我們正在進行的投資，我們確實將現代 SOC 結合在一起，人們必須真正推銷他們的傳統環境，但他們也必須真正推銷他們的雲環境，而且他們都管理風險和威脅。我們看到該策略的需求和吸引力不斷增加。

Frankly, the packages are actually going ahead of what we actually laid out, but there's opportunity to actually build a deeper, more integrated solution and to fully take that to market in a very compelling way. And I would say we're seeing some of the benefits of that, but we plan to accelerate the benefits. The second thing which actually alluded to in the previous statement was the accelerating our investment in continuing cloud. Cloud is that it's early evolution. It's early inning. The most important thing now is it's actually gone from a niche thing where you actually have a separate thing and as more customers focus on complex integrated environment, it needs to be a mainstream vein. Our goal is a leader in mainstream security operations where people are able to actually both monitor risk and threats across their traditional environment and their cloud environments and that to be a seamless experience.

坦率地說，這些軟件包實際上超出了我們實際佈局的範圍，但我們有機會真正構建一個更深入、更集成的解決方案，並以一種非常引人注目的方式將其完全推向市場。我想說，我們已經看到了其中的一些好處，但我們計劃加速這些好處的實現。上一份聲明中實際上提到的第二件事是加速我們對持續雲的投資。雲是它的早期演變。現在是第一局。現在最重要的是，它實際上已經不再是一個利基的東西，你實際上有一個單獨的東西，並且隨著越來越多的客戶關注複雜的集成環境，它需要成為主流。我們的目標是成為主流安全運營的領導者，讓人們能夠真正監控傳統環境和雲環境中的風險和威脅，並獲得無縫體驗。

We have great traction and great progress. But look, it's a competitive market, we're not resting on our laurels, and we actually are reallocating and refocusing our investment in that area. In the last area, I would just say it's more than anything a realignment focus area, as we've actually executed our strategy quite well on broadening our product portfolio. We've just actually had different experiences with different buyers of different products and services. And so we're streamlining and aligning that. That, frankly, is both an efficiency benefit, but it's a better customer experience for our customers. So those are the areas of major focus that we have.

我們擁有巨大的牽引力和巨大的進步。但你看，這是一個競爭激烈的市場，我們並沒有滿足於現狀，我們實際上正在重新分配和重新集中我們在該領域的投資。在最後一個領域，我只想說，這不僅僅是一個重新調整的重點領域，因為我們實際上在擴大產品組合方面很好地執行了我們的戰略。實際上，我們與不同產品和服務的不同買家有不同的經歷。所以我們正在簡化和調整它。坦率地說，這不僅提高了效率，而且為我們的客戶帶來了更好的客戶體驗。這些是我們重點關注的領域。

Your next question comes from the line of Eric Heath with KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Eric Heath。

I'll ask 2 questions, if I may. Just first, I mean, Corey, can you help us just give us an understanding on kind of the type of growth profile you're setting yourself up for in '24 following this restructuring plan and then one follow up, if I may.

如果可以的話，我會問兩個問題。首先，我的意思是，科里，您能否幫助我們了解一下您在 24 年重組計劃之後為自己設定的增長概況，然後是後續行動（如果可以的話）。

Yes. No. So I can answer that one pretty quickly. It's way too premature to actually talk about the growth profile in '24, mostly because I am not at all false to talk about what the economy is going to be like in '24. And so we'll update you on that later. I think the important thing to think about, when we think about the growth profile is we knew we wanted to actually strengthen our free cash flow. We want to establish a strong foundation there. And so what we did was really pressure-tested the growth profile to make sure that it was going to be resilient, I mean the free cash flow that it would actually hit our free cash flow aspirations and targets in a lane of different scenarios.

是的。不，所以我可以很快回答這個問題。現在真正談論 24 年的增長狀況還為時過早，主要是因為我談論 24 年的經濟狀況一點也不假。我們稍後會向您通報最新情況。我認為，當我們考慮增長狀況時，需要考慮的重要事情是我們知道我們想要真正加強我們的自由現金流。我們希望在那裡建立堅實的基礎。因此，我們所做的是真正對增長狀況進行了壓力測試，以確保其具有彈性，我的意思是自由現金流，它實際上會在不同情況下達到我們的自由現金流願望和目標。

So we have a lot of confidence if we got to. What I will tell you, too, is that we're making investments in set of the business, such that as the economy normalizes, whenever that happens, we should actually see growth accelerate from where we expected to be this year. But again, it's too early to actually talk about what's going to happen in the economy. But we're definitely making the investments to actually yet to get more free cash flow and efficiency, but we plan to be a competitive grower in the market. And as the economy normalizes, our absolute focus is making sure that we're actually growing stronger than what we're seeing at this level today.

因此，如果需要的話，我們有很大的信心。我還要告訴你的是，我們正在對一系列業務進行投資，這樣，隨著經濟正常化，無論何時發生，我們實際上都應該看到增長比我們今年的預期加速。但同樣，現在真正談論經濟將發生什麼還為時過早。但我們肯定會進行投資，實際上尚未獲得更多的自由現金流和效率，但我們計劃成為市場上有競爭力的種植者。隨著經濟正常化，我們的絕對重點是確保我們的增長實際上比我們今天所看到的水平更強大。

Okay. And then just on your comments about cloud, could you just maybe be a little bit more specific on where you'd like to invest in cloud security. Does this mean more kind of aggressively in the CNAPP space? Is that how I should think about it? And then just if you had any color on kind of how big the cloud security business is at the moment, that would be great color as well.

好的。然後，關於您對雲的評論，您能否更具體地說明您希望在雲安全方面進行哪些投資。這是否意味著 CNAPP 領域更加積極主動？我應該這樣想嗎？如果您對目前云安全業務的規模有任何了解，那也將是很棒的。

Yes. So we see traction in cloud. We didn't release the specific numbers on it. What I would just say at a high level for cloud is we're actually seeing great traction. In fact, the traction has accelerated, which is part of our confidence in investing, and there's 2 different areas that I think we actually have core capabilities and strength and cloud vulnerability management, cloud vulnerability assessment and CSPM and cloud automation today and we have a good position in other areas. There's 2 things I would say. One, it's a continuing investment in overall cloud security to make sure that we have the leadership position there. And so there's some aspects of CNAPP absolutely will be investing in it. But the other one is that cloud is still early stages. It's not like how do you think about procurement AI in the cloud. And so it's also a nonstatic, it's a highly dynamic market.

是的。所以我們看到了雲的吸引力。我們沒有公佈具體數字。我想說的是，對於雲計算，我們實際上看到了巨大的吸引力。事實上，牽引力已經加速，這是我們投資信心的一部分，我認為我們實際上在兩個不同的領域擁有核心能力和優勢，以及雲漏洞管理、雲漏洞評估和 CSPM 以及云自動化，我們今天擁有其他領域的地位也不錯。我有兩件事要說。第一，這是對整體雲安全的持續投資，以確保我們在這方面處於領先地位。因此 CNAPP 絕對會在某些方面進行投資。但另一個問題是雲仍處於早期階段。這不像你如何看待雲中的採購人工智能。因此，它也是一個非靜態的、高度動態的市場。

And we also want to make sure we have the investment capacity to make sure that we actually are leaning into the investment. Because of cloud, you actually have to be leaning into the investments to stay relevant. The last thing I'd say is that we do see a big advantage and the traction that we've seen is customers are looking to manage cloud in the context of other things that we're doing in the environment, So I would say we see a major differentiator and integrated security operations management that includes cloud in the context of the traditional environment, allows people to manage our overall security footprint cost effectively. And we think that the market builds mainstream, that's a massive opportunity. And that will be one of our drivers to your previous question that actually helps us continue to actually accelerate growth as the economy normalizes.

我們還想確保我們有投資能力，以確保我們確實傾向於投資。由於雲的存在，您實際上必須進行投資才能保持相關性。我要說的最後一件事是，我們確實看到了一個巨大的優勢，並且我們看到的吸引力是客戶希望在我們在環境中所做的其他事情的背景下管理雲，所以我想說我們看到一個主要的區別和集成安全運營管理，其中包括傳統環境中的雲，使人們能夠經濟有效地管理我們的整體安全足跡。我們認為市場已成為主流，這是一個巨大的機會。這將是我們回答你之前問題的驅動因素之一，它實際上有助於我們隨著經濟正常化而繼續實際加速增長。

Your next question comes from the line of Matt Saltzman with Morgan Stanley.

您的下一個問題來自摩根士丹利的馬特·薩爾茨曼 (Matt Saltzman)。

Corey, just to start a quick one for you. When you think about the competitive landscape for Rapid7, I would assume things have certainly shifted, particularly as you broaden the product portfolio and really honed in on these bundled go-to-market motion. So I'm curious in the RFP process that you're seeing a broadening of the vendors that you're competing with and just kind of any commentary that you can give around win rates. I know it's still relatively early in terms of the bundles being in the market. But anything you can give us around win rates against kind of new competitors would be really helpful.

科里，我只是為您快速開始一個。當您考慮 Rapid7 的競爭格局時，我認為情況肯定已經發生了變化，特別是當您擴大產品組合併真正專注於這些捆綁的上市行動時。因此，我很好奇，在 RFP 過程中，您會看到與您競爭的供應商的範圍不斷擴大，並且您可以就獲勝率給出任何評論。我知道就市場上的捆綁而言還相對較早。但是，您能為我們提供的任何關於針對新競爭對手的勝率的信息都會非常有幫助。

Yes. No, it's a good one. So look, I think the biggest new where we have the (inaudible). It's going to be clearly the modern SOC space, that's the evolution of the SIEM market, but we also have a consolidation pipe. And you see a range of different competitors. You see the traditional SIEM players. You see some of the MDR players. You have a range of competitors. What I would say is that we're actually having a lot of traction of momentum. That's part of why we're continuing to double down in that business in that space. Conversion rates are high, the growth rate is good. it's an [at-scale] business is extraordinarily healthy.

是的。不，這是一件好事。所以看，我認為我們擁有的最大的新東西（聽不清）。顯然，這將是現代 SOC 領域，這是 SIEM 市場的演變，但我們也有一個整合管道。你會看到一系列不同的競爭對手。你會看到傳統的 SIEM 玩家。你會看到一些 MDR 玩家。你有一系列的競爭對手。我想說的是，我們實際上擁有很大的動力。這就是我們繼續加倍投入該領域業務的部分原因。轉化率高，增長率好。這是一項非常健康的[大規模]業務。

We're seeing lots of ability to attach around that business. And so part of what we're doing is really oriented around that modern SOC, and how we've been doing. So that's the first thing. And so our win rates are actually consistent and growing and high, and we feel very good. We're actually having with managed to a complete, I would just say, record conversion rates in that offering, which is a proxy for win rates although we haven't publicly disclosed the win rates. The second thing I would just highlight is there's two ways to think about the cloud space is the integrated, our strategy right now because the cloud place is both competitive and expensive is we knock out the ballpark that we actually do an effective of upgrading our vulnerability management installed base, which is a special base and sticky.

我們看到了很多圍繞這項業務的能力。因此，我們正在做的部分工作實際上是圍繞現代 SOC 以及我們一直在做的事情。這是第一件事。因此，我們的勝率實際上是穩定的、不斷增長的、很高的，我們感覺非常好。我想說的是，我們實際上已經成功地在該產品中實現了完整的轉化率記錄，這是獲勝率的代表，儘管我們尚未公開披露獲勝率。我要強調的第二件事是，有兩種方式來考慮雲空間是集成的，我們現在的策略是，因為雲空間既具有競爭力又昂貴，我們實際上可以有效地升級我們的漏洞管理安裝基地，這是一個特殊的基地和粘性。

That's a motion that we really got focused on this year, and that's the purpose of CRC, and we're doing an extraordinary job right now with a very recent start and actually started to upgrade that CRC base. It's early. We have that vulnerability management base. But we are not going out specifically trying to actually land lots of net new cloud customers because this is not the most efficient motion for us right now. we see our early momentum over the next couple of years is really upselling and upgrading our vulnerability management install base to cloud risk complete -- you start to see evidence of that. I think I've talked about in the story.

這是我們今年真正關注的一項動議，也是 CRC 的目的，我們現在正在做一項出色的工作，最近才開始，實際上已經開始升級 CRC 基地。現在還早。我們有漏洞管理基礎。但我們不會專門嘗試真正吸引大量新的雲客戶，因為這對我們來說並不是目前最有效的舉措。我們看到，未來幾年我們的早期勢頭確實是向上銷售並將我們的漏洞管理安裝基礎升級到雲風險完成——你開始看到這方面的證據。我想我已經在故事中談到過。

The pipeline ability is there. The conversion rates are there, we manage to do that. But that's the strategy and focus areas that we actually have there. Now inevitably, I think as you're alluding to as we continue to actually build on that cloud momentum, we'll absolutely see more cloud competitors, and it's a hypercompetitive market and we'll tackle that as it comes. But to be clear, is that you talked about accelerating growth, we knock it out the ballpark by just upgrading our vulnerability management installed base, and that's what we're sort of currently under the focus.

管道能力擺在那裡。轉化率就在那裡，我們設法做到這一點。但這是我們實際擁有的戰略和重點領域。現在，我認為，正如您所提到的，隨著我們繼續以雲計算勢頭為基礎，我們肯定會看到更多的雲計算競爭對手，這是一個競爭異常激烈的市場，我們將及時解決這個問題。但需要明確的是，您談到了加速增長，我們只需升級我們的漏洞管理安裝基礎就可以實現這一目標，這就是我們目前關注的焦點。

Your next question comes from the line of Brad Reback with Stifel.

你的下一個問題來自 Brad Reback 和 Stifel 的對話。

Corey, 18% is a really large number. So as you manage the business going forward, how do you prevent I'll call it, morale breakage. And then how do we think about how long it will take to reinvest those savings back into the business?

科里，18% 是一個很大的數字。因此，當你管理未來的業務時，你如何防止我稱之為士氣崩潰。那麼我們如何考慮將這些儲蓄再投資回企業需要多長時間？

One, you're quite right, 18% is large. Of course, we don't do this lightly. So let me just talk about how we actually thought about this. So the first thing is that from our employees, I think that we're able to say to our employees today. is while we don't control it, incrementalism is not helpful to anyone. There's a lot of companies that have to do this multiple times. And so we actually kind of by about, hey, let's go deeper and actually do this once, if we're going to have to do it. So that's the one thing that we have to focus on. The second thing is that we definitely like all companies have inefficiencies. We start about technical inefficiencies. The inefficiencies are absolutely a smaller number.

第一，你說得很對，18% 很大。當然，我們不會輕易這樣做。那麼讓我談談我們實際上是如何思考這個問題的。首先，我認為我們今天可以對我們的員工說。當我們無法控制它時，漸進主義對任何人都沒有幫助。有很多公司必須多次這樣做。所以我們實際上有點，嘿，讓我們更深入地做一次，如果我們必須這樣做的話。所以這是我們必須關注的一件事。第二件事是，我們絕對喜歡所有公司都效率低下。我們從技術效率低下開始。效率低下的數量絕對較少。

But part of what we actually saw in the (inaudible) is we actually have parts of our business that are actually growing quite healthily, having credible stickiness are showing great signs of the expansion and anchoring ability. And we did not have all of our team and resources aligned around that for obvious reasons, if you think about the likes of the business. And so when you think about -- you've got to do something like a risk or restructuring, you could just tackle the efficiencies, even with shallow, which actually causes more pain to employees over the longer-term frame. You can actually go a little bit different in an effort to actually do it once.

但我們在（聽不清）中實際看到的部分內容是，我們的部分業務實際上正在相當健康地增長，具有可信的粘性，顯示出擴張和錨定能力的良好跡象。如果你考慮一下業務的情況，出於顯而易見的原因，我們並沒有讓我們所有的團隊和資源都圍繞這個目標進行調整。因此，當你想到時，你必須做一些諸如風險或重組之類的事情，你可以只解決效率問題，即使是淺層的，從長遠來看，這實際上會給員工帶來更多的痛苦。實際上，你可以採取一些不同的方式，努力真正做到一次。

And we think that's the best for employees, so they actually have some visibility in the conference moving forward. The thing that gives me the most confidence and the thing that I've heard from most of our employees that they're excited about is that second part of actually making a hard decision to do some of the realignment that allows us to focus on the areas that people see the momentum because our employees see where we actually have momentum and us put a line in the sand that we will actually be investing behind these opportunities is a confidence builder for lots of our employees who actually looking at the opportunity in the market. So that's our decision. Make sure that our employees, we actually do this once with every new thing that we actually know as possible, making sure that we're being best in tackling the big opportunities that we're already getting progress on, and that's the type of thing that we think actually motivates and excites the employees that are actually moving more us.

我們認為這對員工來說是最好的，因此他們實際上在會議的進展中擁有一定的知名度。讓我最有信心的事情，也是我從大多數員工那裡聽到的讓他們感到興奮的事情，是實際上做出艱難決定的第二部分，即進行一些調整，使我們能夠專注於人們看到勢頭的領域，因為我們的員工看到我們實際上有動力的領域，並且我們在沙子上劃了一條線，我們實際上將在這些機會背後進行投資，這對我們許多真正關注市場機會的員工來說是一種信心的增強。這就是我們的決定。確保我們的員工，我們實際上對我們實際上知道的每一件新事物都盡可能做到這一點，確保我們能夠最好地應對我們已經取得進展的重大機遇，這就是類型的事情我們認為這實際上能夠激勵和激勵員工，從而讓我們更加感動。

Corey, just on the second part of Brad's question about the timeliness of the reinvestment, we're going to be very thoughtful and very deliberate in terms of what we do. But Brad, you would expect to see some of that happening in the back half of this year and certainly carrying into next year. But again, we're very confident with that improvement in free cash flow doubling year-over-year to the $160 million that Corey mentioned earlier for next year.

科里，就布拉德關於再投資的及時性問題的第二部分而言，我們將在我們所做的事情上非常深思熟慮和深思熟慮。但是布拉德，你預計會在今年下半年看到一些事情發生，並且肯定會延續到明年。但同樣，我們對明年自由現金流的改善非常有信心，同比翻一番，達到科里早些時候提到的 1.6 億美元。

Your next question comes from the line of Joel Fishbein with Truist Securities.

您的下一個問題來自 Truist Securities 的 Joel Fishbein。

Just a quick follow-up on Brad's question and then one about acquisitions. You guys are reaching a point where you have easier comps going forward. And I just if you've thought about how this may impact in terms of go-to-market or talk about any impact your go-to-market, feel on the street salespeople at the restructuring might have? I know there's not focused there. And then also just as a follow-up to that, how the restructuring or focus on free cash flow might impact your acquisition strategy going forward.

只是快速跟進布拉德的問題，然後是關於收購的問題。你們已經達到了一個點，未來的比賽會變得更加容易。我想問一下，如果您考慮過這可能會對上市產生什麼影響，或者談論一下您的上市、重組過程中街頭銷售人員的感受可能會產生什麼影響？我知道那裡沒有集中註意力。然後，作為後續行動，重組或對自由現金流的關注可能會如何影響您未來的收購策略。

Yes, no-- 2 very good questions. So the first is that we make every effort to make sure that we actually minimize customer impact in the short term, in the midterm, it's very positive to actually customer impact. We're actually locating more people to be frontline customer-facing and engage. One way the simple way to think about the restructuring is that it's a very mild impact on our quota-carrying people are frontline support people in terms of the number of net people in the organizations that are doing customer-facing stuff. There is a lot of impact in some of the overhead that's built up in line, the management layers, the efficiency. And so that is an impact. To your point, I think part of what we actually have to look at is we have a lot of positive signals.

是的，不是——兩個非常好的問題。因此，第一是我們盡一切努力確保我們在短期內真正最小化客戶影響，在中期，這對實際客戶影響非常積極。實際上，我們正在尋找更多的人在一線面向客戶並參與其中。考慮重組的一種簡單方法是，就組織中從事面向客戶工作的淨人員數量而言，這對我們的配額承載人員（即一線支持人員）的影響非常輕微。一些日常管理費用、管理層和效率都會產生很大的影響。這就是影響。就你的觀點而言，我認為我們實際上必須關注的一部分是我們有很多積極的信號。

I mean, the momentum in the business we had in Q2, we built or part. We've seen great conversion rates. But what we really wanted to balance that with is making sure that we actually take proper care, that means the risk that comes from a change of this order of management size. And so part of that is making sure that we're deeply focused on making sure we try to minimize customer any customer friction that can come along with this, have the communication. Part of this is also why we actually reduced the guidance range to actually make sure that our team is focused on building a long-term healthy business. But again, there's some unknowns in there to actually go through a change in a relatively tight one. So that's the setup that we actually have around that. I think that we're quite set up well to actually manage our customers engage in on the short term. But in the mid term, we actually think it will be quite successful.

我的意思是，我們在第二季度的業務勢頭是我們建立或部分建立的。我們已經看到了很高的轉化率。但我們真正想要平衡的是確保我們真正採取適當的謹慎措施，這意味著管理規模的變化帶來的風險。因此，其中一部分是確保我們高度專注於確保我們盡量減少客戶可能隨之而來的任何客戶摩擦，進行溝通。這也是我們實際上縮小指導範圍的部分原因，以確保我們的團隊專注於建立長期健康的業務。但同樣，在相對嚴格的環境中實際經歷變化還存在一些未知因素。這就是我們實際擁有的設置。我認為我們已經做好了充分的準備，可以實際管理我們的客戶的短期參與。但從中期來看，我們實際上認為它會非常成功。

And you had a second question?

你還有第二個問題嗎？

It was on the M&A side, free cash flow...

這是在併購方面，自由現金流......

On the M&A side, I think there's, what, 2 obvious points is that, one, generating more free cash flow gives the more range of flexibilities of options about how to do that. Of course, we'll actually look at what's the best benefit for long-term shareholders. And so that's going to be a (inaudible). It just gives us a lot more flexibility and a lot more option selling in the business, which is why I had a really, really big focus with Tim and the rest of our leadership team on establishing a much stronger foundation of free cash flows going forward because it allows us a lot more options. When we do M&A, look, I can never say we'll never do anything. We have a significant bias for tech and team things that are strategically aligned and oriented. That tends to be where we actually like to play and where we actually like to focus on in M&A. But I would think about the free cash flow, it's just given us a lot more capacity and options about how to actually generate value in the business.

在併購方面，我認為有兩個明顯的點是，第一，產生更多的自由現金流可以提供更多關於如何做到這一點的靈活性選擇。當然，我們實際上會考慮什麼對長期股東來說是最好的利益。所以這將是（聽不清）。它只是為我們提供了更大的靈活性和更多的業務銷售選擇，這就是為什麼我與蒂姆和我們領導團隊的其他成員非常非常關注為未來的自由現金流建立更強大的基礎因為它讓我們有更多的選擇。當我們進行併購時，我永遠不能說我們永遠不會做任何事情。我們對戰略上一致和導向的技術和團隊事物有很大的偏見。這往往是我們真正喜歡參與的領域，也是我們在併購中真正喜歡關注的領域。但我會考慮自由現金流，它只是給了我們更多的能力和選擇，讓我們能夠真正在業務中創造價值。

Your next question comes from the line of Shrenik Kothari with Robert Baird.

你的下一個問題來自 Shrenik Kothari 和 Robert Baird 的對話。

So Corey, it's good to see that your threat and cloud risk complete offerings are tracking ahead of their expectations and it's head over 1/3 of your new ARR and overall better-than-expected kind of favorable linearity in the quarter. From an international revenue standpoint, it seems like it again grew quite strongly about 17%. Can you provide some -- (inaudible) provide some geographical color around both the favorable linearity as well as the overall retention rates sequentially from last quarter, I really appreciate it.

因此，Corey，很高興看到您的威脅和雲風險完整產品的跟踪速度超出了他們的預期，並且超出了您的新 ARR 的 1/3 以上，並且本季度整體線性度好於預期。從國際收入的角度來看，它似乎再次強勁增長了 17% 左右。您能否提供一些（聽不清）圍繞有利的線性以及上季度以來的整體保留率提供一些地理色彩，我真的很感激。

Yes. I'll tag team that with Tim. So the first thing I would just say is we're seeing, last year was pressure in the international, especially EMEA, Tim talked about retention last year. I would say we've seen a very healthy stabilization and a good place to actually continue growth and help them here. And so we feel very good about what's happening in international teams. We feel very good about the execution leadership. And we think we're set up well as we actually go forward. But a lot of that is just its improvement over last year, which we had a rough '22 when it came to international. And so you saw stabilization, and now you're starting to see some improvement on the (inaudible) moving forward.

是的。我會用蒂姆來標記團隊。所以我要說的第一件事是我們看到，去年國際市場面臨壓力，尤其是歐洲、中東和非洲地區，蒂姆去年談到了保留。我想說，我們已經看到了非常健康的穩定，也是一個真正繼續增長並幫助他們的好地方。因此，我們對國際團隊中發生的事情感到非常滿意。我們對執行領導力感覺非常好。我們認為我們已經做好了實際的準備。但這在很大程度上只是它比去年有所進步，去年我們在國際比賽中經歷了一段艱難的22年。所以你看到了穩定，現在你開始看到（聽不清）前進的一些改進。

So, Tim?

那麼，蒂姆？

No, I would just add, Corey, certainly, a big opportunity still internationally. The growth rate has been better -- higher than what we've seen in North America, still a huge TAM over their big opportunity. And to your point, just on retention rate, something we pay a lot of attention to, and the team does a lot of work there, and they've remained stable.

不，我只想補充一點，科里，當然，國際上仍然有很大的機會。增長率更好——高於我們在北美看到的增長率，仍然是一個巨大的 TAM 超過他們的巨大機會。就你的觀點而言，就保留率而言，我們非常關注這一點，團隊在那裡做了很多工作，而且他們一直保持穩定。

Your next question comes from the line of Jonathan Ho with William Blair.

你的下一個問題來自喬納森·何（Jonathan Ho）和威廉·布萊爾（William Blair）的對話。

I wanted to see if I could get a little bit of additional detail on the MSP opportunity that you referenced and just like why is the MSP opportunity a little bit more attractive than in prior periods? How does the restructuring maybe impact that as well?

我想看看是否可以獲得有關您提到的 MSP 機會的更多詳細信息，就像為什麼 MSP 機會比之前的時期更具吸引力？重組又會如何影響這一點？

Yes, it's a great question. So we've been talking a little bit for a while about partnership, the partnership focus, but also the big opportunity about MSSPs. Look, the way that we see it is as customers overwhelm, and they need both technology and services. As people try to tackle for a complex security environment, there's just not enough talent and other expertise. We have to scale with a strategy of both technology that's great, well integrated as the service experience. Rapid7 does some of that, but we have no aspirations to actually do all of it. Two, we're actually in MSPs are great partners.

是的，這是一個很好的問題。因此，我們已經討論了一段時間的合作夥伴關係、合作夥伴重點以及 MSSP 的巨大機遇。看，我們看到的方式是客戶不堪重負，他們需要技術和服務。當人們試圖應對複雜的安全環境時，卻缺乏足夠的人才和其他專業知識。我們必須採用將兩種技術與服務體驗完美集成的戰略來擴展規模。 Rapid7 做了其中一些工作，但我們並不希望真正完成所有這些工作。第二，我們在 MSP 中實際上是很好的合作夥伴。

And so part of what we're doing in the efficiency of the streamlining is not just internally line and our team, we're actually leaning heavily into a partner strategy that actually for partners actually provide value to customers to be investing more of those partners, co-selling more with those partners, investing in integrated technology solutions and support services with those partners. But we are rotating. Our orientation to be -- look, partners have actually grown well with our business. We have key partners that are have to do quite well. But you'll see even more of that in the future.

因此，我們在精簡效率方面所做的部分工作不僅僅是內部線路和我們的團隊，我們實際上嚴重依賴於合作夥伴戰略，該戰略實際上為合作夥伴提供了價值，為客戶提供了更多的投資，以便對這些合作夥伴進行更多投資，與這些合作夥伴共同銷售更多產品，與這些合作夥伴一起投資於集成技術解決方案和支持服務。但我們正在輪換。我們的定位是——看，合作夥伴實際上與我們的業務一起成長得很好。我們有重要的合作夥伴，他們必須做得很好。但將來你會看到更多這樣的情況。

We have some great demand with some very key strategic partners that we've already shown momentum with this year. And we see a lot of opportunity to actually partner with key folks in the ecosystem going forward. And so that's a big focus. But at the end of the day, customers need great technology yes, they need to be integrated, but they also need service augmentation. And our strategy is to actually do that not just our sales, but (inaudible) with our partners.

我們對一些非常重要的戰略合作夥伴有很大的需求，今年我們已經表現出了這種勢頭。我們看到未來有很多機會與生態系統中的關鍵人物進行實際合作。所以這是一個重點。但歸根結底，客戶需要出色的技術，是的，他們需要集成，但他們也需要服務增強。我們的策略是，不僅是我們的銷售，而且（聽不清）與我們的合作夥伴一起做到這一點。

Your next question comes from the line of Gregg Moskowitz.

你的下一個問題來自格雷格·莫斯科維茨（Gregg Moskowitz）。

This is Mike on for Gregg here. Just 2 quick ones. So firstly, just wondering were there any changes this quarter in average sales cycles, average deal sizes or duration as compared with the Q1. And just second, what sort of ASP uplift did you see for Threat Complete and cloud risk complete this quarter?

這是格雷格的邁克。就2個快的。首先，我想知道本季度的平均銷售週期、平均交易規模或持續時間與第一季度相比是否有任何變化。其次，您認為本季度威脅完成和雲風險完成的 ASP 有何提升？

Yes, I would say no change in Q1. If you think about Q4, Q1, Q2, it's been what we've seen. It's a pressured economic environment. Things take a little bit longer. But it's a stable trend what I would actually see. But yes, I just want to be clear, our demand outlook is healthy and stable. It's just you have an environment where customers are a little bit of pressure, and we have to be thoughtful about how that pressure manifest it. But we're also seeing things convert, we're seeing lots of health, and so we feel very good about the stableness of the demand environment so far. Things always change, but we feel very good about what we actually saw in Q2 and what that pertains as we actually move forward. On your second question is that the uplift that we saw on the packages was still double. It's roughly 2x. We feel good about that. We do have to do a job of managing more deals that could have -- that have higher ASPs in there. And that's also a (inaudible) consideration we think about guidance and other things. But again it's roughly 2x, and that's been a positive trend in the business.

是的，我想說第一季度沒有變化。如果你想想第四季度、第一季度、第二季度，這就是我們所看到的。這是一個充滿壓力的經濟環境。事情需要更長的時間。但我實際上看到的是一個穩定的趨勢。但是，是的，我只是想澄清，我們的需求前景是健康穩定的。只是在你所處的環境中，客戶會承受一些壓力，而我們必須考慮這種壓力如何體現。但我們也看到事情發生了轉變，我們看到了很多健康狀況，因此我們對迄今為止需求環境的穩定性感到非常滿意。事情總是在變化，但我們對第二季度實際看到的情況以及我們實際前進時所涉及的內容感到非常滿意。關於你的第二個問題，我們在包裹上看到的漲幅仍然是兩倍。大約是2倍。我們對此感覺很好。我們確實必須管理更多可能具有更高平均售價的交易。這也是我們在考慮指導和其他事情時考慮的（聽不清）。但再次大約是 2 倍，這是該行業的積極趨勢。

Your next question comes from the line of Gray Powell with BTIG.

您的下一個問題來自 BTIG 的 Gray Powell。

So yes, maybe just one on my side. I want to make sure I had a stack right. I think you called out detection response at over $300 million in ARR with 25% growth. That's great to hear. I know you're not disclosing vulnerability management revenue anymore. But is it safe to say that that's still growing in line or maybe better than the overall VM market? Just how should we think about that mix.

所以是的，也許只有我這邊的一個。我想確保我的堆棧是正確的。我認為您指出檢測響應的 ARR 超過 3 億美元，增長了 25%。聽到這個消息我很高興。我知道您不再披露漏洞管理收入。但可以肯定地說，該市場仍在增長，或者可能比整個虛擬機市場更好嗎？我們應該如何考慮這種組合。

Yes. So one -- I'll answer 2 questions. One, at the heart of it, when you think about competitiveness from a usage and adoption, we believe, and we're seeing healthy traction in usage and adoption of vulnerability management and new customer adoption of mobility management solutions. It gets a bit apples and oranges because this is the challenge when you actually have allocation as you do more platform sales, more solution sales, more packages. And so then you're actually attributing, and what I would just say there is that it really doesn't make sense to actually do the allocation base because, again, it's just more of an allocation based on revenue perspective.

是的。那麼一——我將回答兩個問題。一，其核心是，當您考慮使用和採用的競爭力時，我們相信，我們看到漏洞管理的使用和採用以及新客戶對移動管理解決方案的採用具有良好的吸引力。它有點蘋果和橘子，因為當你進行更多的平台銷售、更多的解決方案銷售、更多的套餐時，當你實際進行分配時，這是一個挑戰。所以，你實際上是在歸因，我想說的是，實際進行分配基礎確實沒有意義，因為，這更多的是基於收入角度的分配。

So the way that we actually are real in measuring this both this year, which again, is sort of start off a bit more challenged, but we're seeing the right ramp and the right trend in the right trajectory. But as we actually go forward is that we expect us to grow better than the overall vulnerability management market in the mid to long term because we actually have a better overall growth profile and opportunity. Yes, we have to actually get to these near-term changes yes, the economy is in plus some ways. But we think we have a very healthy setup for that. And that's the main thing versus actually talking about like how do you actually allocate dollars to specific line items.

因此，我們今年實際衡量這一點的方式，同樣是一開始就更具挑戰性，但我們在正確的軌道上看到了正確的斜坡和正確的趨勢。但隨著我們實際前進，我們預計中長期內我們的增長將優於整體漏洞管理市場，因為我們實際上擁有更好的整體增長狀況和機會。是的，我們必須切實應對這些近期變化，是的，經濟在某些方面正在發生變化。但我們認為我們對此有一個非常健康的設置。這是主要的事情，而不是實際談論如何將資金分配給特定的項目。

Your next question comes from the line of Roger Boyd with UBS.

你的下一個問題來自瑞銀集團的羅傑·博伊德。

Corey, I'd love to go back on MSSPs for a second. A lot of your competitors in VM, cloud, SIN, et cetera, also emphasizing the growth opportunities they see in this channel. I wonder if you could just talk about the competitive environment there with MSPs and what makes Rapid7 a better partner versus some of your competitors? That would be great.

Corey，我想再談談 MSSP。 VM、雲、SIN 等領域的許多競爭對手也強調他們在該渠道中看到的增長機會。我想知道您是否可以談談那裡與 MSP 的競爭環境，以及是什麼讓 Rapid7 成為比您的一些競爭對手更好的合作夥伴？那太好了。

Yes, I think there's -- I appreciate that answer the question. So the first thing is when you think about MSSP, let's just talk about what they need in as a size. So one, not all people will be successful at in MSSPs. You're seeing a lot of movement in the market or almost every, I would say, channel partner, tech company VAR, a lot of tech companies are doing more managed services. And just to be clear, that's what customers need. So let's just understand like this is an area of core customer need. Now let's talk about why Rapid7 is ideally positioned, and while we're having lots of momentum, in fact, while we put even more investment in this area.

是的，我認為有——我很高興回答這個問題。因此，當您考慮 MSSP 時，首先我們要談談他們需要什麼尺寸。因此，並非所有人都能在 MSSP 中取得成功。你會看到市場上發生了很多變化，或者我想說的是，幾乎每個渠道合作夥伴、科技公司 VAR，很多科技公司都在提供更多的託管服務。需要明確的是，這就是客戶所需要的。因此，讓我們理解這是核心客戶需求的一個領域。現在讓我們來談談為什麼Rapid7 處於理想的位置，雖然我們擁有很大的動力，但事實上，我們在這一領域投入了更多的投資。

We are not interested in commodity, low-value managed services that do a poor job security for customers. We want to have world-class services that are good. We're also not interested in low-margin businesses. And so what we've actually had to really focus on over time in Rapid7 is how do you actually build an integrated platform. So the first thing I'll say on differentiation is very few people in the market actually offer integrated solutions that paying our security operations, which is what a lot of these partners are looking for. So if you think about our solution, it gives them a compelling solution that allows them to compete in detection of spots, the overall cloud security space, traditional vulnerability management space, the risk and compliance space and even now with some of our partnerships and some of our enhancements (inaudible), the endpoint space.

我們對商品化、低價值的託管服務不感興趣，因為這些服務對客戶的安全保障很差。我們希望擁有世界一流的優質服務。我們對低利潤業務也不感興趣。因此，隨著時間的推移，我們在 Rapid7 中實際上必須真正關注的是如何真正構建一個集成平台。因此，關於差異化，我要說的第一件事是，市場上很少有人真正提供為我們的安全運營付費的集成解決方案，而這正是許多合作夥伴所尋求的。因此，如果您考慮一下我們的解決方案，它為他們提供了一個引人注目的解決方案，使他們能夠在斑點檢測、整體雲安全空間、傳統漏洞管理空間、風險和合規空間方面展開競爭，甚至現在與我們的一些合作夥伴和一些合作夥伴進行競爭。我們的增強功能（聽不清）是端點空間。

It gives them the ability to go to customers with a holistic solution. That's critical, and that's what actually partners for. The second thing that partners need though, is they don't want poor margins. And so what we've actually built in is heavy automation for ourselves. When we look at ourselves to a lighthouse customer, we have highly competitive, highly attractive managed service and MDR solutions that have a high win rate, but also was at very, very high gross margins. And so when you think about competitive positions, we have a comprehensive solution with a lot of automation intelligence, they can be run at high gross margins, and we set ourselves up to actually partner well with those service providers.

它使他們能夠向客戶提供整體解決方案。這是至關重要的，也是合作夥伴真正的目的。合作夥伴需要的第二件事是，他們不希望利潤率很低。因此，我們實際上為自己構建了高度自動化。當我們將自己視為燈塔客戶時，我們擁有極具競爭力、極具吸引力的託管服務和 MDR 解決方案，這些解決方案具有很高的勝率，但毛利率也非常非常高。因此，當你考慮競爭地位時，我們有一個包含大量自動化智能的全面解決方案，它們可以以高毛利率運行，並且我們準備與這些服務提供商進行良好的合作。

This is why we actually have lots of RAN is when we actually have tended advantage. And that's also why we're accelerating our investments in those partnerships because, yes, it's a little bit disruptive in the short term, but it gives us long-term scale in the business, and that's incredibly important to us.

這就是為什麼當我們實際上擁有優勢時，我們實際上擁有大量 RAN。這也是我們加速對這些合作夥伴關係的投資的原因，因為，是的，這在短期內有點破壞性，但它給我們帶來了長期的業務規模，這對我們來說非常重要。

Your next question comes from the line of Alex Henderson with Needham.

你的下一個問題來自 Alex Henderson 和 Needham 的對話。

Just to start off with a clarification. You said your demand trends are stable and you were comfortable. But I was hoping if you could just tell us, is your pipeline as robust coming out of the June quarter as it was, say, coming out of the first quarter or out of the end of the year. So that there's no change in that trajectory as we go into the restructuring. So the change in revenue is only a function of the destabilization, not a pipeline issue. And could you talk a little bit about the linearity during the quarter? Was there any fall off in orders or closure rates late in the quarter that we should be aware of?

首先澄清一下。您說您的需求趨勢穩定，您感到很舒服。但我希望您能告訴我們，六月份季度的渠道是否與第一季度或年底一樣強勁。因此，當我們進行重組時，這一軌跡不會改變。因此，收入的變化只是不穩定的結果，而不是管道問題。您能否談談本季度的線性情況？本季度末訂單或關閉率是否出現了我們應該注意的下降？

No. Super fair following questions, Alex, considering the amount of the things that we announced today. So the first thing I would just say is our overall pipeline is actually stable and our conversion rates are improved throughout the quarter. So we actually feel very good about the conversion rates. We feel good about the pipeline coming out. Again, the trends in the business are healthy from that perspective. Just to put a final point on because I think the fair question you're asking is like, a, how much of the guide down is the structural changes in risk management and how much of the guide down is sort of like just trends that you actually saw? And just to be very specific about that, is that -- it is about the structure with management. And here's what it comes out is we actually have a good opportunity.

不。亞歷克斯，考慮到我們今天宣布的事情的數量，以下問題非常公平。因此，我要說的第一件事是，我們的整體渠道實際上是穩定的，我們的轉化率在整個季度都得到了提高。所以我們實際上對轉化率感覺非常好。我們對管道的出現感到滿意。同樣，從這個角度來看，業務趨勢是健康的。最後一點，因為我認為你問的公平問題是，a，下降的指導有多少是風險管理的結構性變化，下降的指導有多少是你所預測的趨勢。真的看到了嗎？非常具體地說，這與管理結構有關。結果是我們實際上有一個很好的機會。

The year was already back-end loaded. We saw good trends. We actually don't -- we don't want to be overly precise about an 18% cut and what the implications of that are. And so the question that we actually exited after we decided sort of like how to set up 2024, how to set up free cash flow, is what's been appropriate from a guidance perspective, knowing that we're actually going to be going through changes I would say, Alex, there's no precision that you can actually do this like take a $1 million or take $2 million. We said, listen, we want to actually give a number that even with the changes that it makes to outcomes and knowing by the way, that in every quarter, I'll answer your other questions. Other question was (inaudible), we saw a great and consistent conversion rates throughout the quarter.

這一年已經被後端加載了。我們看到了良好的趨勢。事實上，我們不想過於精確地了解 18% 的削減及其影響。因此，在我們決定如何設定 2024 年、如何設定自由現金流之後，我們實際上退出的問題是，從指導的角度來看，什麼才是合適的，因為我們知道我們實際上將要經歷變革。亞歷克斯會說，你實際上無法做到這一點，比如拿100 萬美元或200 萬美元。我們說，聽著，我們實際上想給出一個數字，即使它對結果造成變化，順便說一句，我會在每個季度回答您的其他問題。另一個問題是（聽不清），我們在整個季度看到了良好且一致的轉化率。

Nothing fell off in the last week. In fact, we have had another consistent period of very strong closes on the thing. That said, is something that actually goes comes, somethings push, and that's what we expected. But in years, it's already back-end loaded, where you can actually have things pushed and still close. What we didn't want to do was be over precise about what the impact of a change of this magnitude was. And so we actually asked the opposite question. It says, "All right, what's the range of outcomes if actually some things go well, some things don't something take longer or something push, and we actually want to have a high confidence guidance range. That was the primary driver of guidance than we actually thought.

上週沒有任何下降。事實上，我們在這件事上又經歷了另一個持續非常強勁的階段。也就是說，有些事情確實會發生，有些事情會被推動，這就是我們所期望的。但多年來，它已經是後端加載的，你實際上可以將事情推送並仍然關閉。我們不想做的就是過於精確地描述如此大規模的變化的影響是什麼。所以我們實際上問了相反的問題。它說：“好吧，如果實際上有些事情進展順利，有些事情不需要更長的時間或有些事情需要推動，那麼結果的範圍是多少，我們實際上希望有一個高置信度的指導範圍。這是指導的主要驅動力比我們實際想像的要多。

Just one last question, if I could stick it in. The timing of these restructurings, given the announcement here in August, is most of the cost improvement then going to start kicking in, in the fourth quarter and into '24? Or do you get some of it in the current quarter?

最後一個問題，我能否堅持下去。考慮到 8 月份的公告，這些重組的時間安排是大部分成本改善將在第四季度開始生效，並進入 24 年？或者您在本季度得到了一些嗎？

Yes, Alex, you'll get a little bit in the in the third quarter, the majority of the team, the 18% is happening right now this week, you'll have some folks that are transitioning through the balance of the year, but then you get the full quarter impact in Q4. And of course, for next year as well, which you see in the free cash flow guide for next year.

是的，亞歷克斯，你會在第三季度得到一點，團隊的大多數人，18% 正在這週發生，你會有一些人在今年的剩餘時間裡進行過渡，但隨後您會在第四季度獲得整個季度的影響。當然，明年也是如此，您可以在明年的自由現金流指南中看到。

Your next question comes from the line of Rob Owens with Piper Sandler.

你的下一個問題來自 Rob Owens 和 Piper Sandler 的對話。

This is Ethan on for Rob. I wanted to ask about net new customer additions. They looked pretty strong here, both on a sequential basis and a year-over-year basis. So I was kind of hoping you could add some more color there. Where did you see strength? Was it with the new packages, with the MDR services, just curious if there's anything to call out there, and why there's such a dark improvement?

這是伊森（Ethan）替羅布（Rob）發言。我想詢問淨新客戶增加情況。無論是環比還是同比，它們看起來都相當強勁。所以我希望你能在那裡添加更多顏色。你從哪裡看到了力量？是不是有了新的套餐，有了 MDR 服務，只是好奇是否有什麼值得注意的地方，以及為什麼會有如此黑暗的改進？

Yes. It was a little bit surprising probably from what we have commented on about really rotating our focus on expanding the customer. What I would say -- and I want to just remind you is that we started with the focus first on the packages. And the follow-on motion in train and enabling was about how do we actually engage deeper and sell more into our installed base. So that motion really started in Q2. So I would expect this trend to change over time. But I'll probably look a little bit imprecise in the timing on the last call because that motion would start.

是的。從我們關於真正將重點轉移到擴大客戶的評論來看，這可能有點令人驚訝。我想說的是——我想提醒您的是，我們首先關注的是軟件包。培訓和支持的後續動議是關於我們如何真正深入參與並向我們的安裝基礎銷售更多產品。所以這項運動在第二季度才真正開始。所以我預計這種趨勢會隨著時間的推移而改變。但我可能會在最後一次通話的時間上看起來有點不精確，因為該動議將會開始。

But I still expect us to see, in fact, we saw a little bit more value expect to see a skew towards expansion in the installed base over the next year but we did actually, that was a follow-on motion from the package motion that we actually get to start the year. And then to answer your whole question, it's very broad-based across regions, products and territory. So I can't really localize it to one man. What I would just say is that the -- our sales team has a lot of confidence and a lot of momentum. I would say we're focusing heavy on expansion as we actually go forward. But that may rotate over at a store pace is the way that I will take away from this quarter.

但我仍然希望我們看到，事實上，我們看到了更多的價值，期望看到明年安裝基礎的擴張，但我們實際上做到了，這是包裝動議的後續動議我們實際上要開始新的一年了。然後回答你的整個問題，它的基礎非常廣泛，跨地區、產品和領域。所以我無法真正將其定位於一個人。我想說的是，我們的銷售團隊充滿信心和動力。我想說的是，在我們實際前進的過程中，我們將重點放在擴張上。但這可能會以商店的速度輪換，這是我將從本季度學到的方法。

Your final question comes from the line of Brian Essex with JPMorgan.

你的最後一個問題來自摩根大通的布萊恩·埃塞克斯 (Brian Essex)。

Corey, I just want to follow on to that actually the last topic. I echo my congrats on some healthy net new ads here from a customer perspective. Just want to get a sense, anything you can provide us for attach rates within the installed base? How much running room do you have to go to kind of upgrade existing customers with adoption of packages. And are you seeing anything in your pipeline that's yielding greater confidence in sales productivity from a selling a platform perspective?

科里，我只想繼續討論最後一個主題。我從客戶的角度對一些健康的網絡新廣告表示祝賀。只是想了解一下，您可以向我們提供任何有關安裝基礎中的附加費率的信息嗎？您需要多少運行空間才能通過採用套餐來升級現有客戶。從銷售平台的角度來看，您是否發現您的渠道中有任何東西可以讓您對銷售效率產生更大的信心？

Yes. So I actually think we have a massive run rate. Part of what we actually saw in sometimes use work like restructuring you miss sort of like the realignment and optimization pieces, but a big opportunity that we actually see is that, look, for better or for worse, it actually worked, but we actually spent the last couple of years, both through an innovation to manage development. We have relevant offerings today in areas. Yes, there's continuing work to do, but we actually set ourselves up for relevant to make sure that we're in growth markets as we actually go forward. And we have to actually do that by selling into areas that, frankly, vulnerability and management did not buy us lots of tailwinds.

是的。所以我實際上認為我們的運行率很高。我們實際上看到的部分內容有時會使用諸如重組之類的工作，您會錯過一些重新調整和優化部分，但我們實際看到的一個巨大機會是，看起來，無論好壞，它確實有效，但我們實際上花了過去幾年，都是通過創新來管理髮展。我們今天在各個領域提供了相關產品。是的，還有持續的工作要做，但我們實際上已經做好了相關準備，以確保我們在實際前進時處於增長市場。坦率地說，我們必須通過向那些脆弱性和管理並沒有給我們帶來很多順風車的領域出售產品來真正做到這一點。

And when you think about the SIEM market, when you think about (inaudible), you think about MDR, when you think about automation, when you think about cloud. There is a set up there, but we have to get traction. We have traction, and we actually have momentum. A part of what we're doing is restructuring is a lot of the alignment. We have not hold our engine to actually really focus on expansion in the installed base. And that's an opportunity that's in front of us. So a big part of what we actually did in our baseline and we did our research, when we look at best practices and benchmarks is we actually have a lot of ground that we can actually gain this relatively straightforward for a company of our size, when it comes from the internal operationalization of how we actually expand and operationalize in our installed base. and we're applying that. It's not market size, but it's applicable, but now is the right time to actually do that because we actually have established critical mass.

當您想到 SIEM 市場時，當您想到（聽不清）時，您會想到 MDR，當您想到自動化時，當您想到雲時。那裡已經有了一個設置，但我們必須獲得牽引力。我們有牽引力，而且我們實際上有動力。我們正在做的一部分工作是重組，其中包括很多調整。我們並沒有讓我們的引擎真正專注於安裝基礎的擴展。這就是我們面前的機會。因此，當我們查看最佳實踐和基準時，我們在基準中實際所做的很大一部分以及我們所做的研究是，我們實際上有很多基礎，對於我們規模的公司來說，我們實際上可以相對簡單地獲得這一點，當它來自我們如何在已安裝基礎上實際擴展和運營的內部運營。我們正在應用它。這不是市場規模，而是適用的，但現在是真正做到這一點的正確時機，因為我們實際上已經建立了臨界質量。

Keep in mind, most companies when they add new product extensions, never get critical mass. We actually have critical mass in growth areas and this is a good place to really focus about how we expand in the isolate and most of the opportunities in front of us at over $0.5 million ARR per customer and still being several hundred [K] ARR per customer and having historically, frankly, immature processes around expansion, not a lot of focus, focus mature in our processes, focusing on our alignment, our pricing and packaging. Those are the areas that we're focusing on, that drive that expansion in the installed base, and that is a big part of the restructuring line.

請記住，大多數公司在添加新產品擴展時永遠不會達到臨界質量。實際上，我們在增長領域擁有臨界質量，這是一個真正關注我們如何在孤立領域進行擴張的好地方，以及我們面前的大多數機會，每個客戶的ARR 超過50 萬美元，而且每個客戶的ARR 仍然高達數百[K]坦率地說，歷史上圍繞擴張的流程不成熟，沒有太多關注，我們的流程成熟，專注於我們的調整、定價和包裝。這些是我們關注的領域，推動安裝基礎的擴張，這是重組線的重要組成部分。

Corey and to your point, you see in that ARR per customer continues to grow, which has been very healthy, but there's so much room to grow from the mid-60s into the 100,000 numbers. A lot of headroom to go.

Corey，就您的觀點而言，您會發現每位客戶的 ARR 持續增長，這是非常健康的，但從 60 年代中期增長到 100,000 的數字還有很大的空間。還有很大的空間。

All right. I think that, that is all the questions that we have. I know this was a lot to cover. I'm definitely appreciate everyone's time and attention and all of you have a great evening.

好的。我認為這就是我們所面臨的所有問題。我知道這有很多內容要講。我非常感謝大家的時間和關注，祝大家度過一個愉快的夜晚。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連接。