Rapid7 Inc (RPD) 2023 Q3 法說會逐字稿

Good afternoon. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Rapid7 Third Quarter 2023 Earnings Conference Call. (Operator Instructions)

午安.我叫羅布，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Rapid7 2023 年第三季財報電話會議。 （操作員說明）

Thank you. Elizabeth Chwalk, Director of Investor Relations, you may begin your conference.

謝謝。投資者關係總監 Elizabeth Chwalk，您可以開始會議了。

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Rapid7's third quarter 2023 financial and operating results in addition to our financial outlook for the fourth quarter and full fiscal year 2023.

謝謝接線員，大家下午好。感謝您今天加入我們，討論 Rapid7 2023 年第三季的財務和營運業績，以及我們對 2023 年第四季和整個財年的財務展望。

With me on the call today are Corey Thomas, our CEO; and Tim Adams, our CFO. 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.

今天與我一起參加電話會議的是我們的執行長科里·托馬斯 (Corey Thomas)；和我們的財務長 Tim Adams。我們已經透過網路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。此次電話會議將透過網路直播進行現場直播，電話會議結束後，將在 Investors.rapid7.com 上提供音訊重播。

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 plans, financial guidance for the fourth quarter and full year 2023, financial goals for the full year 2024 and the assumptions underlying such goals and guidance.

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，包括與公司的定位、策略、業務計劃、重組計劃、2023 年第四季度和全年財務指導、2023 年財務目標相關的聲明。2024 年 全年以及這些目標和指導所依據的假設。

These forward-looking statements are based on our current expectations and beliefs and on information currently available to us. 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 August 9, 2023, and in the subsequent reports that we file with the SEC. The information provided on this conference call should be considered in light of such risks.

這些前瞻性陳述是基於我們目前的期望和信念以及我們目前可獲得的資訊。由於存在許多風險和不確定性，包括我們於 2023 年 8 月 9 日提交的最新季度報告 10-Q 表格中所包含的風險和不確定性，以及在我們向 SEC 提交的後續報告。應根據此類風險考慮本次電話會議中提供的資訊。

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. Rapid7 does not assume any obligation to update the information presented on this conference call, except to the extent required by applicable law.

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有重大差異，且報告的結果不應被視為未來績效的指標。 Rapid7 不承擔任何更新本次電話會議中提供的資訊的義務，除非適用法律要求。

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 responses 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.

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 業績之間的調整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，當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，此附加詳細資訊可能是一次性的，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執行長科里·托馬斯 (Corey Thomas)。科里？

Good afternoon, everyone, and thank you for joining us today on our third quarter 2023 earnings call. Rapid7 ended the third quarter with $777 million in ARR, growing 14% over the prior year, while delivering revenue and operating income above our guided ranges.

大家下午好，感謝您今天參加我們的 2023 年第三季財報電話會議。 Rapid7 第三季末的 ARR 為 7.77 億美元，比上年增長 14%，同時實現的收入和營業收入高於我們的指導範圍。

During the third quarter, we continued to see strong demand for integrated security operations solutions across our Insight platform. Our value proposition is resonating with mainstream enterprise customers, particularly with our consolidated offerings.

第三季度，我們繼續看到對 Insight 平台上的整合安全營運解決方案的強勁需求。我們的價值主張與主流企業客戶產生共鳴，特別是我們的整合產品。

Over 40% of new ARR in the third quarter was from either a threat or cloud risk complete deal, validating our strategic focus around supporting the modern or extended SOC with integrated best-of-breed capabilities across risk management and threat detection. As we sell more of our platform together, we see deal sizes getting larger as ASPs have steadily increased all year.

第三季超過 40% 的新 ARR 來自威脅或雲端風險完整交易，這驗證了我們圍繞支援現代或擴展 SOC 以及跨風險管理和威脅檢測的整合最佳功能的戰略重點。隨著我們一起銷售更多的平台，我們看到交易規模越來越大，平均售價全年穩定成長。

Overall, we saw a customer spending environment that was in line with our expectations and remained stable during the third quarter and into October. Amid the worsening consequences for cybersecurity incidents and the persistent challenge of proactively securing IT environment in an efficient manner, we consistently hear a set of [themes] from conversations with customers.

總體而言，我們看到客戶支出環境符合我們的預期，並在第三季和十月保持穩定。在網路安全事件後果日益惡化以及以有效方式主動保護 IT 環境的持續挑戰中，我們在與客戶的對話中不斷聽到一系列[主題]。

There is need for integrated cloud security offerings with InsightOps as well as a desire to upgrade to cloud-native detection response programs and automation and integrated expertise are often critical differentiators in choosing technology partners.

需要透過 InsightOps 整合雲端安全產品，並希望升級到雲端原生偵測響應程序，而自動化和整合專業知識通常是選擇技術合作夥伴時的關鍵區別因素。

While security team leaders are prioritizing spending around these areas, the budget environment remains complex. Consistent with the last 12 months, we continue to see higher levels of approval during extended procurement cycles. The good news is that our sellers have become more adept in navigating this environment, and there is still urgency from customers on projects around cloud security and detection response, the anchors of our successful risk and threat management offerings.

儘管安全團隊負責人正在優先考慮這些領域的支出，但預算環境仍然很複雜。與過去 12 個月一致，我們在延長採購週期期間繼續看到更高水準的批准。好消息是，我們的賣家已經變得更加擅長駕馭這種環境，並且客戶仍然迫切需要圍繞雲端安全和偵測回應的項目，而雲端安全和偵測回應是我們成功的風險和威脅管理產品的支柱。

Our critical role as a strategic partner to SecOps team is reflected in the growing number of long-term commitments we're seeing from customers. Our total weighted average contract length in the quarter was up 20% over the prior year, which speaks to the value and confidence our customers have in Rapid7 as a long-term technology partner.

我們作為 SecOps 團隊策略合作夥伴的關鍵角色體現在我們從客戶那裡看到的越來越多的長期承諾。本季我們的總加權平均合約期限比上一年增長了 20%，這說明了我們的客戶對 Rapid7 作為長期技術合作夥伴的價值和信心。

Turning now to the restructuring we announced alongside our Q2 earnings results in August. Our efforts to streamline the business are mostly complete, and we are progressing on our areas of strategic reinvestment. I am proud of how well our Rapid7 team has responded to the changes as we have worked to optimize our organization and underlying cost structure over the past few months.

現在談談我們在 8 月公佈的第二季獲利結果的同時宣布的重組。我們精簡業務的努力已基本完成，我們正在策略再投資領域取得進展。我對我們的 Rapid7 團隊對這些變化的出色反應感到自豪，因為我們在過去幾個月裡一直致力於優化我們的組織和基礎成本結構。

Collectively, our strategic alignment is benefiting profitability, as we expected. And we continue to expect the full year 2023 operating margin to expand over 750 basis points from the prior year and to generate free cash flows of approximately $80 million.

總的來說，正如我們預期的那樣，我們的策略調整有利於獲利。我們繼續預計 2023 年全年營業利潤率將比上一年擴大 750 個基點以上，並產生約 8,000 萬美元的自由現金流。

Regarding our customers. We had an intentional focus during the latter half of the third quarter on ensuring continuity and strong overall customer experience as we executed our transition plan. Our customer-facing teams were heavily focused on spending more time engaging with and messaging to existing customers and prospects, with less relative focus on scaling incremental pipeline.

關於我們的客戶。在執行過渡計畫時，我們在第三季後半段有意將重點放在確保連續性和強大的整體客戶體驗。我們面向客戶的團隊主要專注於花更多時間與現有客戶和潛在客戶互動並向其發送訊息，而較少關注擴展增量管道。

The result is that our changes were widely well received by customers, driving strong conversion rates that fueled solid overall ARR growth in the quarter. Now that we are largely through these changes, our teams are incrementally more focused on engaging broadly to drive strong and improving pipeline momentum as we exit the year. And we believe we remain well positioned to achieve our fourth quarter objectives.

結果是，我們的改變受到了客戶的廣泛好評，推動了強勁的轉換率，推動了本季整體 ARR 的穩健成長。現在我們基本上已經完成了這些變化，我們的團隊逐漸更加專注於廣泛參與，以在今年結束時推動強勁和改善的管道勢頭。我們相信我們仍然有能力實現第四季的目標。

Regarding reinvestment into our strategic areas of focus. We're accelerating our leadership in the extended SOC as well as further scaling our ability to offer expertise alongside our technology. While it's still early, we are progressing well in both areas, and I'll give you tangible examples of the positive traction we're seeing in the business.

關於對我們策略重點領域的再投資。我們正在加速我們在擴展 SOC 領域的領先地位，並進一步擴大我們提供專業知識和技術的能力。雖然現在還為時過早，但我們在這兩個領域都進展順利，我將向您提供具體的例子，說明我們在業務中看到的積極推動力。

We continue to see strong demand for our integrated consolidation solutions to support the extended SOC, and we continue to innovate by adding end-to-end capabilities to expand our value proposition to mainstream enterprises. In October, we announced the general availability of multilayered endpoint protection for our managed detection and response customers.

我們繼續看到對我們的整合整合解決方案的強勁需求，以支援擴展的 SOC，並且我們透過添加端到端功能來繼續創新，以將我們的價值主張擴展到主流企業。十月，我們宣佈為我們的託管檢測和回應客戶全面提供多層端點保護。

By offering integrated next-gen antivirus, alongside digital forensics and incident response capabilities onto our Insight agent, we are elevating the breadth and holistic visibility of our extended detection and response. We saw a meaningful gap in the market for customers with legacy endpoint solutions that are focused on affordable, highly effective solutions.

透過在 Insight 代理上提供整合的下一代防毒軟體以及數位取證和事件響應功能，我們正在提升擴展檢測和響應的廣度和整體可見性。我們看到，對於那些擁有傳統端點解決方案的客戶來說，市場存在著巨大的差距，這些解決方案專注於經濟實惠、高效的解決方案。

Our expanded offerings will now enable these MDR customers to benefit from reduced endpoint security cost and complexity within their SOC while freeing up additional budget dollars by consolidating onto our Insight Platform. We also continue to see traction cross-selling across our integrated platform of solutions.

我們擴展的產品現在將使這些 MDR 客戶能夠受益於降低其 SOC 內的端點安全成本和複雜性，同時透過整合到我們的 Insight 平台來釋放額外的預算資金。我們也繼續看到我們的整合解決方案平台上的牽引交叉銷售。

A good example of this is in the third quarter was a deal with a midsized fintech company owned by a large private equity firm. This customer became a Rapid7 vulnerability management customer in 2022, and earlier this year, extended their enterprise risk visibility with our cloud security offering. They reset again in the third quarter to explore our managed threat complete offering after facing additional resource constraints and regulatory requirements.

一個很好的例子是第三季與一家大型私募股權公司旗下的一家中型金融科技公司的交易。該客戶於 2022 年成為 Rapid7 漏洞管理客戶，並於今年稍早透過我們的雲端安全產品擴展了他們的企業風險可見度。在面臨額外的資源限制和監管要求後，他們在第三季再次重置，以探索我們的託管威脅完整產品。

With transferred dollars that weren't part of their initial budget and after a competitive process, the customer chose Rapid7 for our ability to detect and respond to threats across their entire security environment and throughout each phase of the D&R life cycle. With our Insight agent already deployed, the customer is able to implement our robust monitoring capabilities within days of their purchase, allowing a quick return on their security budget dollars.

由於轉移的資金不屬於其初始預算，並且經過競爭過程後，客戶選擇了 Rapid7，因為我們有能力在整個安全環境以及 D&R 生命週期的每個階段檢測和回應威脅。透過部署我們的 Insight 代理，客戶能夠在購買後幾天內實施我們強大的監控功能，從而快速收回其安全預算。

Our ARR with the customer more than tripled to the high 6 figures over the course of 18 months, highlighting the urgency and the value resource-constrained enterprises place on best-in-suite solutions within strategic areas of security operations. We're also scaling our ability to offer integrated expertise alongside our SecOps solutions by accelerating our strategic managed services partnerships.

在 18 個月的時間裡，我們為客戶提供的 ARR 增加了兩倍多，達到 6 位數，這突顯了資源有限的企業對安全營運策略領域內的最佳套件解決方案的緊迫性和價值。我們也透過加速我們的策略託管服務合作夥伴關係，擴大我們提供整合專業知識和 SecOps 解決方案的能力。

I am pleased to announce that we signed a partnership deal in the third quarter with a nationwide leader in communication services, who chose Rapid7 technology as the foundation for their managed detection and response offering. It was a highly competitive process, and our new partner needed a single provider to help their customers manage security across their entire network, endpoint server and cloud infrastructure while helping to contain and disrupt ongoing security breaches.

我很高興地宣布，我們在第三季與全國通訊服務領導者簽署了合作夥伴協議，該公司選擇 Rapid7 技術作為其託管檢測和回應產品的基礎。這是一個競爭激烈的過程，我們的新合作夥伴需要一家供應商來幫助他們的客戶管理整個網路、端點伺服器和雲端基礎設施的安全性，同時幫助遏制和破壞持續的安全漏洞。

This partnership will combine our best-in-class threat detection and response platform and global SOC presence to help small, medium and large enterprise customers better manage an ever-evolving and challenging cyber threat landscape. Over time, we'll have the opportunity to expand our partnership to sell other Rapid7 solutions to their substantial customer base.

此次合作將把我們一流的威脅偵測和回應平台與全球 SOC 結合起來，幫助小型、中型和大型企業客戶更好地管理不斷發展和具有挑戰性的網路威脅環境。隨著時間的推移，我們將有機會擴大我們的合作夥伴關係，並向其龐大的客戶群銷售其他 Rapid7 解決方案。

We're excited about this partnership and our ability to leverage similar partnerships in the future as we scale our ability to offer integrated expertise to more customers. Rapid7 remains focused on being the leading provider of integrated security solutions for the extended SOC by providing risk and threat management within the context of overall security, alongside expertise tailored to the needs of each customer.

我們對這種合作關係以及我們在未來利用類似合作夥伴關係的能力感到興奮，因為我們擴大了為更多客戶提供全面專業知識的能力。 Rapid7 始終致力於成為擴展 SOC 整合安全解決方案的領先供應商，在整體安全背景下提供風險和威脅管理，並提供根據每個客戶需求量身定制的專業知識。

We are pleased with our third quarter results and continue to march forward towards our goals. When we updated our ARR guidance in August, alongside the announcement of our restructuring and strategic realignment, we established a high confidence range to account for modest degrees of disruption in the business. As we make progress, we've seen performance track within our range of expectations.

我們對第三季的業績感到滿意，並將繼續朝著我們的目標邁進。當我們在 8 月更新 ARR 指引時，同時宣布了重組和策略調整，我們建立了一個高置信區間，以應對業務適度的干擾。隨著我們取得進展，我們看到績效軌跡在我們的預期範圍內。

Given larger deal cycles as well as the heavy concentration of large deals in the fourth quarter, we believe it is prudent to reiterate our full year ARR guidance of $800 million to $805 million. All in all, we are pleased with our third quarter results and the early progress we are making as we work to reaccelerate growth by reinvesting into strategic areas of strong customer demand within our business.

鑑於交易週期較長以及大型交易高度集中在第四季度，我們認為重申全年 ARR 指引 8 億至 8.05 億美元是謹慎的做法。總而言之，我們對第三季的業績以及我們在業務中透過對客戶需求強勁的策略領域進行再投資來重新加速成長所取得的早期進展感到滿意。

We were able to outperform on our operating income target in the third quarter and to flow through that upside to our full year guidance range. This speaks to the benefit of our new streamlined cost structure, which will allow us to become a more profitable growth company. We expect to generate approximately $80 million of free cash flow this year and then double that figure to at least $160 million next year in 2024.

我們能夠在第三季超越營業收入的目標，並將這個上升空間轉移到我們的全年指引範圍。這說明了我們新的精簡成本結構的好處，這將使我們成為一家利潤更高的成長型公司。我們預計今年將產生約 8,000 萬美元的自由現金流，然後在明年（2024 年）將這一數字翻一番，達到至少 1.6 億美元。

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

感謝您今天加入我們的電話會議。我現在將把電話轉給我們的財務長蒂姆·亞當斯，分享有關我們財務業績和前景的更多細節。提姆？

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

謝謝你，科里。今天電話會議的大家下午好，感謝您加入我們。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。

Rapid7 ended the third quarter of 2023 with $777 million in ARR, growing 14% over the prior year on solid demand for our consolidated offerings across risk management and Threat Complete. Customers continue to gravitate towards our integrated solutions anchored in detection and response and cloud security, which made up over 40% of new ARR in the third quarter.

截至 2023 年第三季度，Rapid7 的 ARR 為 7.77 億美元，比上年增長 14%，這得益於我們在風險管理和 Threat Complete 方面的綜合產品的強勁需求。客戶繼續傾向於我們以偵測、回應和雲端安全為基礎的整合解決方案，這些解決方案佔第三季新增 ARR 的 40% 以上。

Our value proposition is resonating with customers as we see ASPs continue to climb and our average contracts get longer. We saw relatively balanced contributions from new and existing customers in the third quarter. ARR per customer grew 7% over the prior year to $68,100, and we ended the quarter with over 11,400 total customers, reflecting 6% growth over the prior year.

我們的價值主張與客戶產生了共鳴，因為我們看到平均售價不斷攀升，我們的平均合約時間也越來越長。第三季我們看到新客戶和現有客戶的貢獻相對均衡。每位客戶的 ARR 比上年增長 7%，達到 68,100 美元，本季末我們的客戶總數超過 11,400 名，比上年增長 6%。

Third quarter revenue of $199 million represented growth of 13% year-over-year, exceeding the high end of our guidance range. Product revenue grew 14% year-over-year to $190 million as customers continue to prioritize budget dollars around projects in our areas of strategic focus, both around the extended SOC and the ability to offer integrated expertise. International revenue made up 22% of total revenue, while North American represented 78%.

第三季營收為 1.99 億美元，年增 13%，超出了我們指導範圍的上限。產品收入年增 14%，達到 1.9 億美元，因為客戶繼續優先考慮我們戰略重點領域項目的預算資金，包括擴展的 SOC 和提供整合專業知識的能力。國際收入佔總收入的22%，而北美則佔78%。

Moving on to operating and profitability measures for the quarter. Product gross margin was 77%, in line with the prior year, and total gross margin was 75%. Operating expenses reflect the changes to our cost structure that we implemented in August. Sales and marketing represented 34% of revenue in the quarter, down from 38% in the prior year.

接下來討論本季的營運和獲利能力指標。產品毛利率為77%，與前一年持平，總毛利率為75%。營運費用反映了我們在八月實施的成本結構的變化。銷售和行銷佔本季營收的 34%，低於上一年的 38%。

R&D and G&A expenses were 16% and 6% of revenue, respectively, compared to 20% and 8% in the third quarter of last year. Overall, higher revenue and a leaner cost structure drove higher-than-expected operating income of $37 million in the quarter. Our adjusted EBITDA was $43 million in the third quarter and diluted net income per share was $0.50.

研發和一般行政費用分別佔營收的 16% 和 6%，而去年第三季分別為 20% 和 8%。總體而言，更高的收入和更精簡的成本結構推動本季營業收入高於預期 3,700 萬美元。第三季調整後的 EBITDA 為 4,300 萬美元，攤薄後每股淨利為 0.50 美元。

Before we turn to the balance sheet and cash flow statement, I want to mention certain items from the third quarter income statement that do not affect our non-GAAP results. We incurred a total of $24 million in restructuring and real estate impairment charges in the quarter, in line with our expectations. We also booked a noncash-induced conversion expense of $54 million in the quarter as a result of the required accounting treatment related to the partial repurchase of our 2025 convertible notes.

在我們討論資產負債表和現金流量表之前，我想提一下第三季損益表中的某些項目，這些項目不會影響我們的非公認會計準則績效。本季我們總共產生了 2,400 萬美元的重組和房地產減損費用，符合我們的預期。由於與部分回購 2025 年可轉換票據相關的必要會計處理，我們在本季度還計入了 5,400 萬美元的非現金引起的轉換費用。

We ended the third quarter with cash, cash equivalents and investments of $373 million. We took proactive steps during the quarter to strengthen our balance sheet and to take advantage of favorable market conditions.

截至第三季末，我們的現金、現金等價物和投資為 3.73 億美元。我們在本季度採取了積極措施來加強我們的資產負債表並利用有利的市場條件。

The increase in cash and equivalents from the second quarter reflects the proceeds from our convertible notes offering in September, partially offset by the previously mentioned partial repurchase of our 2025 notes. This was primarily a liability management effort, allowing us to enter into a new convert with more favorable terms and extended the maturity date of a portion of our debt structure.

第二季現金和等價物的增加反映了我們 9 月發行的可轉換票據的收益，部分被前面提到的 2025 年票據的部分回購所抵銷。這主要是一項負債管理工作，使我們能夠以更優惠的條件進行新的轉換，並延長部分債務結構的到期日。

Operating cash flow was $4 million and reflects timing of the restructuring payments, which were concentrated in the third quarter, as expected. It also reflects a working capital headwind related to the timing of cash collections. We have already seen strong collections early in the fourth quarter, and we'll continue to manage these working capital dynamics closely.

營運現金流為 400 萬美元，反映了重組付款的時間安排，正如預期的那樣，重組付款集中在第三季。它也反映出與現金回收時間相關的營運資金逆風。我們在第四季初就已經看到了強勁的收款情況，我們將繼續密切管理這些營運資金動態。

Moving on to our outlook for the remainder of 2023. As Corey mentioned, we are maintaining our full year ARR outlook range of $800 million to $805 million or approximately 12% to 13% growth over the prior year. As our strategic realignment is tracking in line with our range of expectations, we feel confident about maintaining the existing range for the full year.

接下來是我們對 2023 年剩餘時間的展望。正如 Corey 所提到的，我們將全年 ARR 展望維持在 8 億至 8.05 億美元之間，比前一年增加約 12% 至 13%。由於我們的策略調整符合我們的預期範圍，因此我們對全年維持現有範圍充滿信心。

We are raising our full year revenue guidance to $773 million to $775 million, representing 13% growth. This reflects product revenue outperformance in the third quarter, partially offset by slightly lower services revenue forecast for the full year as we actively deemphasize some lower-value professional services coming out of our restructuring.

我們將全年營收指引上調至 7.73 億美元至 7.75 億美元，成長 13%。這反映了第三季產品收入的優異表現，部分被全年服務收入預測略有下降所抵消，因為我們積極淡化了重組中一些低價值的專業服務。

We are also raising the midpoint of our full year operating income guidance by $7 million to reflect our strong third quarter performance. This brings our full year operating income guidance to $94 million to $96 million, representing roughly 12% full year operating margin and over 750 basis points of improvement from the prior year.

我們還將全年營業收入指導的中點提高了 700 萬美元，以反映我們強勁的第三季業績。這使得我們的全年營業收入指引達到 9,400 萬至 9,600 萬美元，相當於全年營業利潤率約 12%，比前一年提高了 750 個基點。

Non-GAAP net income per share is expected to be $1.26 to $1.29 based on an anticipated 72.1 million diluted weighted average shares outstanding. We are reiterating our free cash flow guidance of approximately $80 million for the full year.

根據預計 7,210 萬股稀釋加權平均流通股，非 GAAP 每股淨利潤預計為 1.26 至 1.29 美元。我們重申全年自由現金流指引約 8,000 萬美元。

As implied by our full year guidance for the fourth quarter of 2023, we expect revenue in the range of $200 million to $202 million and operating income between $33 million and $35 million, which represents an operating margin of approximately 17%. Non-GAAP net income per share for the fourth quarter is expected to be $0.47 to $0.49 based on an anticipated 73.8 million diluted weighted average shares outstanding.

正如我們對2023 年第四季的全年指引所暗示的那樣，我們預計收入將在2 億美元至2.02 億美元之間，營業收入將在3,300 萬美元至3,500 萬美元之間，營業利潤率約為17%。根據預計 7,380 萬股稀釋加權平均流通股，第四季非 GAAP 每股淨利潤預計為 0.47 至 0.49 美元。

With that, thank you for joining us on the call today, and we will now open the call for questions. Operator?

感謝您今天加入我們的電話會議，我們現在開始提問。操作員？

(Operator Instructions) And your first question comes from the line of Matt Hedberg from RBC Capital Markets.

（操作員說明）您的第一個問題來自 RBC 資本市場的 Matt Hedberg。

Great. Corey, great to see the results and demand commentary and the benefits of the restructuring going on here. I'm curious, you noted in your prepared remarks that you're working to reaccelerate growth. I guess, I'm wondering, when we think about sales and marketing or products or whatever it might be, what do you think are some of the most important aspects of what you guys are doing to control some of that reacceleration, even despite ongoing economic uncertainty?

偉大的。科里，很高興看到這裡的結果和需求評論以及重組的好處。我很好奇，您在準備好的發言中指出，您正在努力重新加速成長。我想，我想知道，當我們考慮銷售和行銷或產品或其他任何內容時，您認為您為控制某些重新加速所做的事情中最重要的方面是什麼，即使正在進行中經濟不確定性？

Yes. Thanks, Matt. It's a good question. So I think there's 2 fundamentals. Just one, you have to be in the right markets that have the right demand drivers. I think we're there. If you think about what we're doing in the extended SOC, customers are struggling with the cost of complexity of managing their tech service in this environment.

是的。謝謝，馬特。這是一個好問題。所以我認為有兩個基本原則。第一，你必須處於擁有正確需求驅動因素的正確市場。我想我們就在那裡。如果您考慮我們在擴展 SOC 中所做的事情，您會發現客戶正在努力應對在此環境中管理其技術服務的複雜性成本。

And so we are leaning into that and continuing to reallocate investment into that area of focus. That's a long-term investment area that involves cloud, involves some member. expertise.

因此，我們正在傾向於這一點，並繼續將投資重新分配到該重點領域。這是一個涉及雲端、涉及一些成員的長期投資領域。專業知識。

But of course, we're actually focused on that. We have been. We think we have a good leg up. We think we're competitively differentiated. But it's a long-term investment area, and again, we're rotating more of our investment to those areas over time.

但當然，我們實際上專注於此。我們已經。我們認為我們有很好的優勢。我們認為我們具有競爭優勢。但這是一個長期投資領域，隨著時間的推移，我們將把更多的投資轉向這些領域。

Yes, I would say, deployment on that point on that one is going to be also the one that goes to go to market is, look, we can actually grow faster. Our big focus right now is growing efficiently, though. And so this is a focus of making sure we have durable growth and efficient growth because, as we actually look forward, we know that we can.

是的，我想說，在這一點上的部署也將是進入市場的部署，看，我們實際上可以成長得更快。不過，我們現在的重點是高效率成長。因此，這是確保我們實現持久成長和高效成長的重點，因為正如我們實際展望的那樣，我們知道我們可以做到。

Actually, in the right areas, the right spaces, we know we actually are setting up for the right products and services. We have to make sure that we actually have the efficient growth that we're actually looking for, and that spend is going to come over time.

事實上，在正確的領域、正確的空間，我們知道我們實際上正在為正確的產品和服務做好準備。我們必須確保我們確實實現了我們真正尋求的有效成長，並且支出將隨著時間的推移而實現。

So we are, I would say, being methodical, being very thoughtful. We are going to be spending the reinvestment, but it's going to be through extending into the cloud, continuing to actually work with partners to deliver augmented services. As I talked about with the large national provider and one of the deals that we actually just did, you'll see more of that.

所以我想說，我們是有條不紊、非常周到的。我們將進行再投資，但這將透過擴展到雲端中，繼續與合作夥伴實際合作來提供增強的服務。當我與大型全國性提供者以及我們剛剛完成的其中一項交易討論時，您會看到更多這樣的情況。

But it's also a big focus on extending our sales and marketing engine, but actually doing that both through partners, but doing that efficiently ourselves. And that's what you'll see us make investments over the course of both this year, but more importantly, we'll make investments over the course of 2024.

但它也非常注重擴展我們的銷售和行銷引擎，但實際上是透過合作夥伴來做到這一點，但我們自己有效率地做到了這一點。這就是我們今年將進行的投資，但更重要的是，我們將在 2024 年進行投資。

But that's kind of how we think about growth. We're focused on efficiency now and then adding growth that actually gives long-term growth potential, but actually doing it in a way that makes sure that we actually stay very disciplined, very lean and very efficient.

但這就是我們對成長的看法。我們現在專注於效率，然後增加成長，這實際上帶來了長期成長潛力，但實際上這樣做的方式確保我們實際上保持非常自律、非常精簡和非常高效。

Your next question comes from the line of Adam Tindle from Raymond James.

您的下一個問題來自雷蒙德詹姆斯 (Raymond James) 的亞當廷德爾 (Adam Tindle)。

Okay. Corey, I just wanted to start, you mentioned how the pipeline was impacted from Q3 from making sure existing customers were okay, which makes total sense, and probably a good move. I guess. The question would be, how do you shift the sales force to focus? How did you shift them to focus on existing? And how do you pivot them to focus on new pipelines, some of the things you can do from incentives?

好的。科里，我只是想開始，你提到了第三季度確保現有客戶狀況良好對管道的影響，這完全有道理，而且可能是一個很好的舉措。我猜。問題是，如何轉移銷售人員的注意力？你是如何將他們的注意力轉移到現有的事情上的？你如何讓他們專注於新的管道，你可以透過激勵措施做些事情？

And Tim, if you wanted to maybe as a follow-up to this, I know that, that can have a lagged impact on revenue growth, that deceleration in pipeline. Wondering how we should think about that in light of moving forward in 2024 growth. We're exiting, I think, at single-digit growth in Q4. Wondering if that's maybe an indicator of what to expect in 2024. Why or why not?

提姆，如果你想作為這件事的後續行動，我知道，這可能會對收入成長產生滯後影響，即管道的減速。想知道我們應該如何考慮 2024 年成長的前景。我認為，我們將在第四季以個位數成長退出。想知道這是否是 2024 年預期的指標。為什麼或為什麼不呢？

Yes. So I'll tackle that. So I'll tackle it first. So one, on the -- as we actually think about sort of guidance, I would just say, listen, the biggest factor there was, as you said, we were very focused on executing the cost structure alignment and make sure we take care of customers. We actually just had very direct discussions with our team about what the priorities were. The priorities to make sure we're servicing our customers well, make sure that we were converting existing deals.

是的。所以我會解決這個問題。所以我先解決這個問題。因此，當我們實際上考慮某種指導時，我只想說，聽著，最大的因素是，正如您所說，我們非常專注於執行成本結構調整，並確保我們照顧到顧客。實際上，我們剛剛與我們的團隊就優先事項進行了非常直接的討論。確保我們為客戶提供良好服務的首要任務是確保我們正在轉換現有交易。

We saw and just continue to see very, very strong conversion rates overall. And we continue to see that we were actually adding more consolidation pipeline. So we had a pipe that's more consolidation pipe. Those are bigger deals. They actually have longer sales cycles. So you asked what the short-term effect was. Theoretically, less pipe for Q4. That's something we're very comfortable with. Because, again, our big near-term focus was the cost structure.

我們看到並將繼續看到整體轉換率非常非常高。我們繼續看到我們實際上正在增​​加更多的整合管道。所以我們有一個更堅固的管道。這些都是更大的交易。他們實際上有更長的銷售週期。所以你問短期影響是什麼。理論上，Q4 的管道較少。這是我們非常滿意的事情。因為，我們近期的重點是成本結構。

Now longer term, we're very focused on continuing to build strategic pipe, which we're seeing in the consolidation efforts. We're doing 2 things around that. We're making sure that our sales team is well-equipped and selling it. And I would just say, we're seeing the benefits of that now. Yes, that actually have some benefits in 2024.

現在從長遠來看，我們非常專注於繼續建立策略管道，我們在整合工作中看到了這一點。我們正在圍繞這個做兩件事。我們確保我們的銷售團隊裝備精良並進行銷售。我只想說，我們現在看到了這樣做的好處。是的，這實際上在 2024 年有一些好處。

But the other part of it is, as I talked about on the last call, we did drive lots of efficiency, not in our direct sellers, but in our overall go-to-market engine. And we expect to actually add more of the -- more of the pipe and demand generation capabilities over time, but we are very, very disciplined about adding that in a way that is lean and that is efficient. And I think that sets up for a good long-term dynamic, but that's the focus that we actually have right now.

但另一方面，正如我在上次電話會議中談到的，我們確實提高了許多效率，不是在我們的直銷員中，而是在我們的整體進入市場引擎中。我們希望隨著時間的推移，實際上會增加更多的管道和需求產生能力，但我們非常非常自律地以精益和高效的方式添加這些能力。我認為這為良好的長期動態奠定了基礎，但這才是我們現在真正關注的焦點。

Yes. And then, Adam, it's Tim. To the second part of your question regarding 2024, we are right in the middle of our budgeting process for next year. So it would be premature for us to make any comments about growth for next year. But I'll reemphasize what Corey said, we're very focused on efficient growth and generating strong free cash flow. So we've shared with you guys last quarter that we anticipate roughly $160 million of free cash flow next year. And we still feel very good about that number.

是的。然後，亞當，是提姆。關於您關於 2024 年的問題的第二部分，我們正處於明年的預算編制過程中。因此，我們對明年的成長做出任何評論還為時過早。但我要再次強調科里所說的，我們非常注重高效成長和產生強勁的自由現金流。因此，我們在上個季度與大家分享了我們預計明年的自由現金流約為 1.6 億美元。我們仍然對這個數字感到非常滿意。

And look, we had some hard actions that we had to take back in August with the restructuring and the realignment of the company. But I do think that sets us up very well for next year that we've rationalized the cost structure. So very focused on efficient growth, and we'll have more to say about next year on the Q4 call.

看，我們在 8 月透過公司的重組和調整不得不收回一些艱難的行動。但我確實認為這為我們明年的成本結構合理化奠定了良好的基礎。因此，我們非常關注高效成長，我們將在明年的第四季電話會議上有更多內容要說。

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

您的下一個問題來自摩根士丹利的 Matt Saltzman。

Great. So just looking at total customer growth, it's kind of trended in this mid-single-digit range for several quarters now. I appreciate you guys don't specifically guide to or disclose gross logo retention. But I'm just curious if you can speak qualitatively about the trends on gross logo retention over the last 12 months and maybe the last 6 months.

偉大的。因此，只要看看總客戶成長情況，現在幾季的趨勢都在中個位數範圍內。我很感謝你們沒有專門指導或披露整體徽標保留。但我只是好奇您是否可以定性地談論過去 12 個月甚至過去 6 個月的整體徽標保留趨勢。

Yes. I mean, I will talk at a high level. As you say, we don't disclose it. I think last year, we talked to we're exiting last year seeing some pressure in that area in Europe. And what I would just say is that, this year, we've seen the improvement that we actually have expected to see. So we feel good about our retention overall.

是的。我的意思是，我將在高級別上講話。正如你所說，我們不會透露它。我想去年，我們談到去年我們要退出，因為歐洲該地區面臨一些壓力。我想說的是，今年，我們已經看到了我們實際上預期看到的改進。因此，我們對整體保留率感覺良好。

So I'd just say, on balance, if you look at last year compared to this year, we feel that it's trending positively, and we feel good about the direction and the setup going forward. And in fact, as we think about sort of the efficient growth, a big part of that is really focused in to make sure you're taking care of your customers first. That's the allotment for the customer value, that's [allotment] for us. And we feel good about the trends that we're seeing in the business.

所以我想說，總的來說，如果你對比去年和今年，我們覺得趨勢是正面的，我們對未來的方向和設定感覺很好。事實上，當我們考慮某種有效成長時，其中很大一部分真正集中在確保您首先照顧您的客戶。這就是顧客價值的分配，這就是我們的[分配]。我們對在業務中看到的趨勢感到滿意。

Your next question comes from the line of Fatima Boolani from Citi.

您的下一個問題來自花旗銀行的 Fatima Boolani。

Corey, I wanted to revisit some of the pipeline commentary you talked about. Very clear that the focus was very, very intentional on keeping our existing customers happy and growing the wallet share there. But it sounds like there are going to be some pivots into building new pipe and incremental demand generation on the new logo front.

科里，我想重溫你談到的一些管道評論。很明顯，我們的重點是非常非常有意地讓我們現有的客戶滿意並增加那裡的錢包份額。但聽起來將會有一些重點轉向在新標誌方面建立新管道和增量需求。

And I just wanted to make sure I understood or picked up on that information correctly. And so really, what are some of the things that you're going to be putting in place to be able to maybe reaccelerate some of that new customer and new logo acquisition momentum and those initiatives?

我只是想確保我正確理解或掌握了這些資訊。事實上，您將採取哪些措施來重新加速新客戶和新商標的獲取動能以及這些舉措？

Great question. And by the way, welcome back. Look, I think that there's -- on the question of pipe overall is there's 2 dynamics that are really key to focus on. One, we're actually doing a great job of building a strategic pipe. And so -- and I've talked about this before.

很好的問題。順便說一句，歡迎回來。聽著，我認為，就整體管道問題而言，有兩個真正值得關注的動態。第一，我們實際上在建立策略管道方面做得很好。所以——我之前已經討論過這個問題。

One of the interesting things is as we actually build -- as we build more consolidation pipe, those things are bigger deals, and they follow the same sales cycles as the bigger deals. That's a positive thing, so we're converting those things well. And that's more of a timing thing. So I think that we have more visibility into the outlook as we actually go forward.

有趣的事情之一是，當我們實際建立時 - 當我們建立更多的整合管道時，這些事情都是更大的交易，並且它們遵循與更大的交易相同的銷售週期。這是一件積極的事情，所以我們正在很好地轉變這些事情。這更多的是一個時間問題。因此，我認為，隨著我們實際前進，我們對前景有了更多的了解。

The second thing that I think you're alluding to and hitting on, which is actually also important, is we're focused not just on how do we actually build the pipe, but we're focusing on what's the efficiency and what's the cost to building the pipe. So we're not treating all things the same.

我認為你提到並提到的第二件事實際上也很重要，我們不僅關注如何實際建造管道，而且關注效率和成本建造管道。所以我們不會對所有事情都一視同仁。

So I'll give you a perfect example of that is we have a very intentional focus about how do we actually build pipe through partners in the ecosystem and through MSSPs. You saw an example of that on one of the marquee deals that I actually named on the call. Going through partners and especially MSSP partners, but more broadly, the channel, we have a very, very tight focus on that. And we think we can do that efficiently through a targeted set of partners, that's 1 example.

所以我會給你一個完美的例子，我們非常有意識地關注如何透過生態系統中的合作夥伴和 MSSP 實際建立管道。你在我在電話會議上實際提到的一項大牌交易中看到了這樣的例子。透過合作夥伴，特別是 MSSP 合作夥伴，但更廣泛地說，透過管道，我們非常非常關注這一點。我們認為我們可以透過一組有針對性的合作夥伴有效地做到這一點，這就是一個例子。

But again, if you're in the right demand areas, then you can actually sort of like find ways to actually build pipe. And we are focused, I would say, more now on the cost and the efficiency of the pipe that we build and the overall engine. They're just actually just driving growth as fast as possible.

但同樣，如果您處於正確的需求區域，那麼您實際上可以找到實際建造管道的方法。我想說，我們現在更專注於我們建造的管道和整個引擎的成本和效率。他們實際上只是盡可能快地推動成長。

We will grow. Again, our tight focus is on long-term growth. But it's not on trying to get the fastest time to actually, that growth, is actually making sure it's both durable, sustainable, but also actually has the right cost structure around it.

我們會成長。再次強調，我們的重點是長期成長。但這不是要以最快的速度成長，而是要確保它既持久、可持續，又具有正確的成本結構。

Corey, the only thing I would add is, I think we both commented in our prepared remarks just on the strength of the packages, the Threat Complete, the Cloud Risk Complete, now over 40% of new ARR. And we've seen that grow nicely over the quarter. So that's another tailwind of momentum, I think, we have with our sellers, both new and existing customers.

Corey，我唯一要補充的是，我想我們都在準備好的評論中評論了軟體包的強度、威脅完整、雲端風險完整，現在超過了新 ARR 的 40%。我們看到這個季度成長良好。我認為，這是我們的賣家（包括新客戶和現有客戶）的另一個動力。

Absolutely. Thank you again. Great question.

絕對地。再次感謝你。很好的問題。

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

你的下一個問題來自威廉布萊爾的喬納森何 (Jonathan Ho)。

This is John Weidemoyer for Jonathan. So your solutions are targeting modern SOC efforts. In terms of SOC spending, are you seeing customers start to shift how they approach traditional apps like SIEM and other solutions to save, muddy or improve security? And how might that relate to Rapid7's value proposition?

我是喬納森的約翰·韋德莫耶。因此，您的解決方案針對現代 SOC 工作。就 SOC 支出而言，您是否看到客戶開始改變使用 SIEM 等傳統應用程式和其他解決方案來節省、混亂或提高安全性的方式？這與 Rapid7 的價值主張有何關係？

Yes. It was -- yes, we're seeing a big shift. One is if you think about the traditional SOC, it was primarily focused on collecting log files in the on-premise environment and monitoring the on-premise environment. What we're doing when we think about the extended SOC is actually focusing on the overall attack surface, which is not just onset with environment. It's the cloud. It's the applications.

是的。是的，我們正在看到一個巨大的轉變。一是如果您考慮傳統的 SOC，它主要專注於收集本地環境中的日誌檔案並監控本地環境。當我們考慮擴展 SOC 時，我們所做的實際上是專注於整體攻擊面，而不僅僅是環境的攻擊面。這是雲。這是應用程式。

And so what we're helping customers do is, one, collect all the data to monitor the full attack surface. But that also adds a massive volume of data. And so we're focused on both the productivity but also augmenting either with our sales or with partners the expertise and the talent to actually manage the volume of data from that larger attack surface.

因此，我們幫助客戶做的是，第一，收集所有資料以監控整個攻擊面。但這也增加了大量數據。因此，我們既關註生產力，又透過我們的銷售或合作夥伴增強專業知識和人才，以實際管理來自更大攻擊面的資料量。

Customers are absolutely shifting their focus from traditional SIEMs and focus in on-premise to say, how do I cover my full attack surface? But they're also looking at how do I do that efficiently? Because if you look at the trends that are happening right now, customers are not able to add as many security professionals as they would like. And therefore, they're really, really focused on the efficiency and partners that can deliver efficiency in their agent, and that's our focus on our extended SOC. Thank you for your question.

客戶絕對將注意力從傳統的 SIEM 轉向本地部署，他們會問，我如何覆蓋整個攻擊面？但他們也在研究如何有效地做到這一點？因為如果你看看現在正在發生的趨勢，你會發現客戶無法添加他們想要的那麼多安全專業人員。因此，他們非常非常關注效率以及能夠提高代理效率的合作夥伴，這就是我們對擴展 SOC 的關注。謝謝你的問題。

Your next question comes from the line of Brian Essex from JPMorgan.

您的下一個問題來自摩根大通的布萊恩‧艾塞克斯 (Brian Essex)。

This is (inaudible) on for Brian Essex. It was great to see you reiterate the doubling of free cash flow in 2024. If you can let us know like what level of confidence do you have in it? And what are the primary levers you're looking to deliver that cash flow? And how much control do you have over them?

這是布萊恩·艾塞克斯（Brian Essex）的（聽不清楚）。很高興看到您重申 2024 年自由現金流將翻倍。您能否讓我們知道您對此的信心程度如何？您希望提供現金流的主要手段是什麼？你對它們有多少控制權？

We have very high confidence on the $160 million of free cash flow. I would -- what I would say is that we have a lot of controls and levers in the overall business. We've talked -- we've taken a very thoughtful approach to planning that looked at growth rates, plus or minus the growth rates of this year. And so we're very thoughtful about like what -- how do we actually deliver that free cash flow across a wide range of scenarios.

我們對 1.6 億美元的自由現金流充滿信心。我想說的是，我們在整個業務中擁有很多控制權和槓桿。我們已經討論過——我們採取了非常深思熟慮的規劃方法，著眼於成長率，加上或減去今年的成長率。因此，我們非常仔細地思考如何在各種場景中實際提供自由現金流。

We have the levers in the business. That's also a big part of why we're actually -- as we're doing reinvestments, we're doing the reinvestment steadily, not all in one go. Because that also gives us levers to actually make sure that our reinvestments are timed up well to the performance that we expect to see. So I say we have a lot of visibility. We have a lot of controls. But most importantly, our entire company is fairly committed, and we have a good structure from today to deliver on that.

我們擁有業務槓桿。這也是我們實際進行再投資的一個重要原因——當我們進行再投資時，我們正在穩步進行再投資，而不是一次全部進行。因為這也為我們提供了實際確保我們的再投資與我們期望看到的績效同步的槓桿。所以我說我們有很多知名度。我們有很多控制措施。但最重要的是，我們整個公司都相當投入，從今天起我們就有了一個良好的結構來實現這一目標。

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

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

Corey and Tim, good execution in a tough environment. So just to follow up on some of the kind of macro kind of guidance questions. Just curious what's kind of embedded in your guidance for 4Q in terms of conversion rates?

科里和蒂姆在艱難的環境中表現出色。所以只是為了跟進一些宏觀指導問題。只是好奇您對第四季轉換率的指導包含了哪些內容？

Because -- it seems like maybe you had some relatively high conversion rates this quarter. So just curious if you're extrapolating that out. And also, any color on the macro or expectations on the budget flush. And if you had any commentary on the linearity so far this quarter, that would be great, too.

因為—看來本季您的轉換率可能相對較高。所以只是好奇你是否推論出這一點。此外，宏觀上的任何色彩或預算上的預期。如果您對本季度迄今為止的線性有任何評論，那也很好。

Yes. I may miss something. So I'll cover those, and Tim will cover for me if I actually miss something. So what I would say is we've seen, I would say, improved conversion rates this year, not just across the 1 quarter, but it's been a consistent [theme] that's actually picked up. So we expect consistency more than anything else.

是的。我可能會錯過一些東西。所以我會報道這些，如果我真的錯過了什麼，提姆會為我報道。所以我想說的是，我想說的是，今年的轉換率有所提高，不僅是在第一季度，而且這是一個實際上得到重視的一致的[主題]。因此，我們最希望的是一致性。

And I would just say, on that one, I think the early start to the quarter indicates consistency and the consistency that we expect in the overall conversion rates. The other piece of it is, no, we're not out over our skis from our perspective on expecting a budget flush. We did not factor a budget flush in for this quarter. I don't see any indicators that would indicate a budget flush right now. If we do, that's great, but there was no reason to actually factor a budget flush into our expectations and how we think about the overall guidance.

我只想說，就這一點而言，我認為本季度的早期開始表明了一致性以及我們預期整體轉換率的一致性。另一方面，不，從我們期待預算充裕的角度來看，我們並沒有超出我們的滑雪板。我們沒有考慮本季的預算沖刷。我目前沒有看到任何顯示預算充裕的指標。如果我們這樣做，那就太好了，但實際上沒有理由將預算沖入我們的預期以及我們對整體指導的看法。

And your next question comes from the line of Mike Walkley from Canaccord Genuity.

您的下一個問題來自 Canaccord Genuity 的 Mike Walkley。

It's Daniel on for Mike. So could you just provide maybe some color on how the productivity of your sales reps are changing now that they have a few quarters' worth of experience, really exclusively selling via consolidated offerings? Also, just given your focus on improving profitability and cash flows, do you think the level of investments is sufficient to continue to grow longer term?

由丹尼爾取代麥克。那麼，您能否提供一些關於您的銷售代表的生產力如何變化的信息，因為他們擁有幾個季度的經驗，真正透過整合產品進行銷售？此外，鑑於您專注於提高獲利能力和現金流，您認為投資水準足以繼續長期成長嗎？

Yes, 2 great questions. So on productivity, what I would say is that through Q3, they're where we expected the productivity to actually be for our direct sellers. We are building larger deals in the pipe, which has some timing impact on the sales cycle. So you have a mix shift in the size of the deals in pipe. I provided a little bit of qualitative data on that in my prepared remarks.

是的，兩個很好的問題。因此，關於生產力，我想說的是，到第三季度，他們的生產力實際上達到了我們對直銷員的期望。我們正在醞釀更大的交易，這對銷售週期有一些時間影響。因此，管道中的交易規模存在混合變化。我在準備好的發言中提供了一些相關的定性資料。

So that's more of a timing issue, but we think that washes out. So what I would say is we see very healthy productivity trends. And we expect, I would say, reasonable, consistent levels of productivity to actually come up next year. So we're happy with the trends and outlook on the productivity.

所以這更多的是一個時間問題，但我們認為這可以消除。所以我想說的是，我們看到了非常健康的生產力趨勢。我想說，我們預計明年將真正達到合理、一致的生產力水準。因此，我們對生產力的趨勢和前景感到滿意。

Your second question was -- I forgot the second question.

你的第二個問題是──我忘了第二個問題。

With our focus on profitability, are we still investing at the right levels to continue with our outlook?

由於我們關注盈利能力，我們是否仍以正確的水平進行投資以繼續我們的前景？

Yes. So yes, look, I think -- but just to be clear is I take a very focused view on, I would say, mid to long-term growth. I'm not super -- I'm not trying to actually really drive short-term acceleration. And so the way to think about that is that we're doing heavy investments in products and services.

是的。所以，是的，我認為，但需要明確的是，我非常關注中長期成長。我並不超級——我並沒有試圖真正推動短期加速。因此，思考這個問題的方法是，我們正在對產品和服務進行大量投資。

When I talk about services, I'm talking about like us and our ecosystem and making sure we can augment our customers. We're investing heavily there. We're going to keep investing heavily there because, if you think about what drives long-term growth is, we have to be the preferred provider for the extended SOC. We're committed to doing that.

當我談論服務時，我談論的是我們和我們的生態系統，並確保我們能夠擴大我們的客戶。我們在那裡投入巨資。我們將繼續在這方面進行大量投資，因為如果你考慮推動長期成長的因素是什麼，我們必須成為擴展 SOC 的首選提供者。我們致力於這樣做。

We're putting lots of resources in the products and services. And we're very intentional about that. And those are investments that we're making now, but it's also investments that we're going to be steadily onboarding and increasing over the course of the next year. And so that's our ongoing plan.

我們在產品和服務上投入了大量資源。我們對此非常有意。這些是我們現在正在進行的投資，但也是我們將在明年穩步啟動和增加的投資。這就是我們正在進行的計劃。

The second part of that is the investment in sales and marketing. And while I say we're very focused, we're really looking at our engine, and we will be adding resources. We're going to be adding capacity, but we're making sure the engine is efficient in this environment. We are taking a more partner-focused approach and aligned approach in this environment.

第二部分是對銷售和行銷的投資。雖然我說我們非常專注，但我們確實在關注我們的引擎，並且我們將添加資源。我們將增加容量，但我們要確保引擎在這種環境下保持高效率。在這種環境下，我們正在採取更以合作夥伴為中心的方法和一致的方法。

And so again, if you look out, we think in the midterm, we're actually are going to have a very, very good growth engine. But it's not something that we're rushing on the sales and marketing investments to actually try to hit a quarter-by-quarter target.

所以，如果你仔細觀察，我們認為在中期，我們實際上將擁有一個非常非常好的成長引擎。但我們並不急於進行銷售和行銷投資來真正嘗試達到逐季度的目標。

Yes. Corey and I think as, look, analysts pencil out what numbers for the full year may look like for sales and marketing, it is -- we think it's the right amount, but it's still a healthy investment that carries into next year.

是的。科里和我認為，看，分析師們會畫出全年銷售和行銷的數字，我們認為這是正確的數額，但它仍然是一項可以延續到明年的健康投資。

Yes. The investments that we made this year actually helps set us up for next year. But again, it is a -- we are taking a more methodical approach on how we actually allocate net investments in sales and marketing.

是的。我們今年所做的投資實際上有助於我們為明年做好準備。但同樣，我們正在採取一種更有條理的方法來實際分配銷售和行銷淨投資。

(Operator Instructions) Your next question comes from the line of Trevor Rambo from BTIG.

（操作員說明）您的下一個問題來自 BTIG 的 Trevor Rambo。

This is Trevor on for Gray Powell. I was just -- I just want to ask, how are you seeing customers react in the latest breach -- an increase in breach headlines? And do you expect it to drive an increase in activity for the company? And then lastly, do you see any product categories that are a benefit more than 1 another?

我是格雷·鮑威爾的特雷弗。我只是 - 我只是想問，您看到客戶對最近的違規行為有何反應 - 違規頭條新聞的增加？您預計這會推動公司活動的增加嗎？最後，您是否發現任何產品類別比其他產品類別更具優勢？

Yes. So first, we tend to be pretty focused on not trying to not to sell into news headlines just because that creates some weird incentives. It also hurts customers' trust over time. That said, it is a backdrop that's happening.

是的。因此，首先，我們往往非常專注於不要試圖不去新聞頭條，因為這會產生一些奇怪的動機。隨著時間的推移，這也會損害客戶的信任。也就是說，這是正在發生的背景。

So look, here's how I describe the backdrop at the most fundamental level, is that CISOs, especially with some of the SEC's recent actions as it relates to solar winds and other things, are clearly very focused on security in their personal accountability. And so they have security as a top priority. And I still think we have a significant backlog of security projects and resources that are needed.

因此，我在最基本的層面上描述了背景，即 CISO，尤其是 SEC 最近在太陽風和其他方面採取的一些行動，顯然非常注重其個人責任中的安全性。因此，他們將安全作為首要任務。我仍然認為我們有大量積壓的安全項目和所需資源。

The funding environment the CISOs are going into is tight. And so the reconciliation of that demand backlog, the pressure in CISO space, and the speed and the velocity of the budgets they're getting is an underlying tension that underplays all the stuff that we actually see, what the deal cycles and all the other things. I think if you actually zoom out, that backlog of projects absolutely has to get resolved over time. So I think we actually have a healthy demand driver, healthy demand market.

CISO 面臨的融資環境很緊張。因此，需求積壓、CISO 空間的壓力以及他們獲得預算的速度和速度之間的協調是一種潛在的緊張關係，它低估了我們實際看到的所有內容、交易週期和所有其他內容事物。我認為，如果你真的縮小範圍，積壓的專案絕對必須隨著時間的推移而解決。所以我認為我們實際上擁有一個健康的需求驅動力、健康的需求市場。

Again, I love the place that Rapid7 sits with the extended SoC, with the focus on the attack surface, looking across the entire environment from the on-prem and endpoint to the cloud, I think we're set up well. But I would just say the budget environment for CISOs is going to play out as a budget environment place for CISOs.

同樣，我喜歡 Rapid7 與擴展 SoC 的結合，重點關注攻擊面，縱觀從本地和端點到雲端的整個環境，我認為我們已經設置得很好。但我只想說，CISO 的預算環境將成為 CISO 的預算環境。

Our goal is to set ourselves up to be a great partner and to brought a great ecosystem a's they have money, as they have funds to steadily unwrap them. And this is where I think our methodical long-term approach will pay dividends.

我們的目標是讓自己成為一個偉大的合作夥伴，並帶來一個偉大的生態系統，因為他們有錢，因為他們有資金來穩步展開它們。我認為這就是我們有條不紊的長期方法將帶來紅利的地方。

Trevor, there was maybe 1 last piece of that question. Just does it benefit any products in particular? And I mean, just go back to the packages, the way we fund them.

特雷弗，這個問題可能有最後一個。它對某些產品有特別的好處嗎？我的意思是，回到一攬子計劃，我們資助它們的方式。

Yes. Consolidation -- absolutely, Tim, that's a great point. It provides leverage and scale. Being able to actually say that I can actually manage my attack surface from the endpoint and on-prem to the cloud, it actually provides an economic value, which helps the CISOs do their job. It allows them if they choose to do it with us or our partner, augment with expertise. And so it provides an economic value. At the same time, it addresses core security concerns.

是的。整合－毫無疑問，提姆，這是一個很好的觀點。它提供了槓桿作用和規模。可以說，我實際上可以管理從端點、本地到雲端的攻擊面，它實際上提供了經濟價值，這有助於 CISO 完成他們的工作。如果他們選擇與我們或我們的合作夥伴一起做，它可以讓他們增加專業知識。因此它提供了經濟價值。同時，它解決了核心安全問題。

Your next question comes from the line of Rob Galvin from Stifel.

您的下一個問題來自 Stifel 的 Rob Galvin。

This is Rob on for Brad. The international growth of 16% and 22% of revenue appears to be trending well. And I'm wondering if the offshore talent mix shift from the restructuring discussed last quarter had any impact on this growth? Or if the offshore talent mix shift was more focused on operating cost efficiencies?

這是羅布替補布萊德。國際收入成長 16% 和 22%，趨勢良好。我想知道上季度討論的重組中海外人才結構的轉變是否對這種增長產生了影響？或者，離岸人才組合的轉變是否更注重營運成本效率？

Yes. So I think it's a great question. I would not say it's a primary driver of growth because it's actually too early here. What I would say is that we did have some catch-up work to do to make sure that the distribution of our global service and support ecosystem was properly allocated around the world to make sure that the [workload's] better.

是的。所以我認為這是一個很好的問題。我不會說這是成長的主要驅動力，因為現在還為時過早。我想說的是，我們確實有一些追趕工作要做，以確保我們的全球服務和支持生態系統的分佈在世界各地得到正確分配，以確保[工作量]更好。

The other thing is just the reality of cyber attacks is more of the attackers operate in time zones that are not the time zones of the U.S. And so as we actually make sure that our teams are operating around the clock, it's important to actually have people that are operating in the same time zones, not just our customers, but also the time zones that attackers are actually operating in.

另一件事是網路攻擊的現實是更多的攻擊者在美國時區以外的時區進行操作，因此，當我們實際上確保我們的團隊全天候運行時，真正擁有人員非常重要不僅是我們的客戶，而且也包括攻擊者實際操作所在的時區。

I think we will see more benefits and confidence because our teams, both in Europe and in Asia, are now able to actually talk more aggressively and directly about the ability to actually get local resources and commitment and availability. So we think that, that will be a positive thing as we actually go forward. But I would just say it's too early for that to actually have shown up in the Q3 specific results.

我認為我們將看到更多的好處和信心，因為我們在歐洲和亞洲的團隊現在能夠更積極、更直接地談論實際獲得本地資源、承諾和可用性的能力。因此，我們認為，隨著我們的實際進展，這將是一件積極的事情。但我想說的是，現在要真正體現在第三季的具體結果還為時過早。

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

您的下一個問題來自 Needham 的 Alex Henderson。

I was hoping you could talk a little bit about the partnership expansion programs, particularly the MSP that you noted in your call. How material do you think that will be as we look out into 2024 and 2025? Can it add 3%, 4%, 5% to your top line growth rate? And while you're at it, would you mind just -- looking at the Splunk acquisition by Cisco, does that have any positive impact on you as a result of that consolidation?

我希望您能談談合作夥伴擴展計劃，特別是您在電話中提到的 MSP。當我們展望 2024 年和 2025 年時，您認為這有多重要？它能讓您的收入成長率增加 3%、4%、5% 嗎？當您這樣做時，您是否介意看看 Cisco 收購 Splunk，這次整合對您有什麼正面影響嗎？

Yes. Those are 2 great questions. So on the first one, what I would say is that it will be incrementally positive, I think, in '24. We did 1 big one. I think we'll do some more. We've had some smaller ones actually prior to this. So I think it will be incrementally positive in '24. The bigger they are, I would just say, the longer the ramp cycle is.

是的。這是兩個很好的問題。因此，對於第一個問題，我想說的是，我認為，在 24 年，它將逐漸變得積極。我們做了 1 個大的。我想我們會做更多的事情。實際上在此之前我們已經有過一些較小的。所以我認為 24 年將會逐漸變得積極。我只想說，它們越大，斜坡週期就越長。

So I just want to be clear, it's just like your -- these are big organizations, and you actually have to -- you turn the gears of the organizations. So I would say some incremental movement in '24, but I think it really picks up in '25 and '26. And we like this consolidated focus on partnering, yes, with the [breadth] partners going to be clear. We have a war partner post.

所以我想澄清的是，就像你的——這些都是大組織，你實際上必須——你轉動這些組織的齒輪。所以我會說 24 年會有一些增量運動，但我認為它在 25 年和 26 年確實有所回升。我們喜歡這種對合作的統一關注，是的，[廣度]合作夥伴將會很明確。我們有一個戰爭夥伴職位。

But having a few bigger, very focused partners that really move the dial, I think, it's important. But these are big sophisticated organizations with lots of customers, so the effort and investment is well worth it. And we're going to be investing heavily with our partner, but it is also lots of sort of like investment in lots -- and some work that they do is to actually to make this broadly available.

但我認為，擁有一些規模更大、專注度更高、能夠真正推動改變的合作夥伴非常重要。但這些都是擁有大量客戶的大型複雜組織，因此付出的努力和投資是非常值得的。我們將與我們的合作夥伴一起進行大量投資，但這也很像大量投資——他們所做的一些工作實際上是讓這種技術廣泛可用。

So we expect to see the benefits over multiple years. But we do expect to have, I would say, incremental positivity in '24, but I would say really picking up in '25 when you start looking at some of these larger organizations and how they actually operate.

因此，我們期望在多年內看到好處。但我想說的是，我們確實期望在24 年擁有增量積極性，但我想說的是，當你開始研究其中一些較大的組織以及它們的實際運作方式時，真正的積極性會在25 年有所回升。

And then on the Splunk, it's a good question. Look, I have a lot of respect for Cisco, for Splunk. And so there's nothing specific about that or those teams and those organizations. What I would say is that when you actually have changes or disruptions to the market and you have -- that's always an opportunity.

然後在 Splunk 上，這是一個很好的問題。看，我非常尊敬 Cisco、Splunk。因此，對於那些團隊和組織來說，沒有什麼具體的內容。我想說的是，當市場確實發生變化或擾亂時，這總是一個機會。

And I would say, especially in this environment, where people are budget-concerned, where there are talent-concerned, I think it's an opportunity. Now it's just caused a lot of pain so they have probably a great consolidation story. But I think very spacious on the extended SOC and the extended attack surface. I think we're fairly unique in what we can actually offer here.

我想說，特別是在這種環境下，人們關心預算，關心人才，我認為這是一個機會。現在它只是造成了很多痛苦，所以他們可能有一個很棒的整合故事。但我認為在擴展 SOC 和擴展攻擊面方面非常寬敞。我認為我們在這裡實際提供的服務是相當獨特的。

And so I think that any time any competitor in the market has things that actually cause them to focus or shift focus, that's an opportunity for us. And so I think from that perspective, yes, it's an opportunity. But that's -- I have a lot of respect for the competitors in the market here.

因此，我認為，只要市場上的任何競爭對手擁有真正促使他們集中註意力或轉移注意力的東西，這對我們來說都是一個機會。所以我認為從這個角度來看，是的，這是一個機會。但那就是──我非常尊敬這裡市場上的競爭對手。

And we have reached the end of our question-and-answer period. I will now turn the call back over to our CEO, Corey Thomas, for some final closing remarks.

我們的問答期已經結束了。現在，我將把電話轉回給我們的執行長科里·托馬斯 (Corey Thomas)，讓其發表最後的結束語。

Thank you all for joining us today on our call, and I wish you all a good rest of the year.

感謝大家今天參加我們的電話會議，祝福大家今年一切順利。

Thank you.

謝謝。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。