SentinelOne Inc (S) 2024 Q1 法說會逐字稿

Good afternoon, and thank you for joining the SentinelOne First Quarter Fiscal Year 2024 Earnings Conference Call. My name is Elissa, and I will be your moderator for today's call. (Operator Instructions). I would now like to pass the conference over to your host, Doug Clark, Head of Investor Relations. Mr. Clark, you may proceed.

下午好，感謝您參加 SentinelOne 2024 財年第一季度收益電話會議。我叫 Elissa，我將擔任今天電話會議的主持人。 （操作員說明）。我現在想把會議轉交給你的主持人，投資者關係主管道格克拉克。克拉克先生，您可以繼續。

Good afternoon, everyone, and welcome to SentinelOne's earnings call for the first quarter and fiscal year '24 ended April 30. With us today are Tomer Weingarten, CEO; and Dave Bernhardt, CFO. Our press release and the shareholder letter were issued earlier today and are posted on our Investor Relations section of our website.

大家下午好，歡迎來到 SentinelOne 截至 4 月 30 日的第一季度和 24 財年的財報電話會議。今天和我們在一起的是首席執行官 Tomer Weingarten；和首席財務官戴夫·伯恩哈特 (Dave Bernhardt)。我們的新聞稿和股東信已於今天早些時候發布，並張貼在我們網站的投資者關係部分。

This call is being broadcast live via webcast, and an audio replay will be made available on our website after the call concludes. Before we begin, I would like to remind you that during today's call, we will be making forward-looking statements about future events and financial performance, including our guidance for the second quarter and full fiscal year '24 as well as long-term financial targets.

此電話會議通過網絡直播進行現場直播，電話會議結束後將在我們的網站上提供音頻重播。在我們開始之前，我想提醒您，在今天的電話會議中，我們將就未來事件和財務業績做出前瞻性陳述，包括我們對第二季度和整個 24 財年的指導以及長期財務目標。

We caution you that such statements reflect our best judgment based on the factors currently known to us and that our actual events or results could differ materially. Please refer to the documents we file from time to time with the SEC, in particular, our annual report on Form 10-K and our quarterly report on Form 10-Q. These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements.

我們提醒您，此類陳述反映了我們根據我們目前已知的因素做出的最佳判斷，我們的實際事件或結果可能存在重大差異。請參閱我們不時向美國證券交易委員會提交的文件，特別是我們的 10-K 表格年度報告和 10-Q 表格季度報告。這些文件包含並確定了可能導致我們的實際結果與我們的前瞻性陳述中包含的結果存在重大差異的重要風險因素和其他信息。

Any forward-looking statements made during this call are being made as of today. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

本次電話會議期間做出的任何前瞻性陳述均截至今天。如果在今天之後重播或審查此電話，則電話中提供的信息可能不包含當前或準確的信息。除非法律要求，否則我們沒有義務公開更新這些前瞻性陳述或更新實際結果可能與前瞻性陳述中預期的結果大不相同的原因，即使將來有新信息可用也是如此。

During this call, we will discuss non-GAAP financial measures, unless otherwise stated. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the GAAP and non-GAAP results is provided in today's press release and in our shareholder letter. These non-GAAP measures are not intended to be a substitute for GAAP results.

除非另有說明，否則在此電話會議期間，我們將討論非 GAAP 財務指標。這些非 GAAP 財務措施不是根據公認的會計原則編制的。今天的新聞稿和我們的股東信中提供了 GAAP 和非 GAAP 結果的對賬。這些非 GAAP 措施無意替代 GAAP 結果。

Our financial outlook excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization expense of acquired intangible assets and acquisition-related compensation costs, which cannot be determined at this time and are therefore not reconciled in today's press release.

我們的財務前景不包括基於股票的補償費用、僱員股票交易的雇主工資稅、收購無形資產的攤銷費用和與收購相關的補償費用，這些費用目前無法確定，因此在今天的新聞稿中沒有協調。

And with that, let me turn the call over to Tomer Weingarten, CEO of SentinelOne.

說到這裡，讓我把電話轉給 SentinelOne 的首席執行官 Tomer Weingarten。

Good afternoon, everyone, and thank you for joining our fiscal first quarter earnings call. We delivered another quarter of significant revenue growth and margin improvement. Customer retention and expansion remains strong and above our long-term targets. We continue to achieve high win rates with stable pricing. The most discerning enterprises are consolidating their security on our best-of-breed platform, which now includes half of the Fortune 10 companies.

大家下午好，感謝您參加我們的第一財季財報電話會議。我們在另一個季度實現了顯著的收入增長和利潤率改善。客戶保留和擴展仍然很強勁，並且高於我們的長期目標。我們繼續以穩定的定價實現高贏率。最挑剔的企業正在我們同類最佳的平台上鞏固他們的安全性，該平台現在包括一半的財富 10 強公司。

We continued our progress towards profitability in the first quarter, making a seventh consecutive quarter of more than 25 percentage points of operating margin improvement. Despite many underlying business trends, our first quarter top line growth was lower than we expected as global macroeconomic pressures continue to persist. Succeeding in this environment requires a sharpened focus on go-to-market execution. Furthermore, we're taking actions to fortify our business by improving our cost structure and ensuring our path to profitability. We believe these measures will drive growth efficiencies across our business.

我們在第一季度繼續在盈利方面取得進展，連續第七個季度營業利潤率提高超過 25 個百分點。儘管有許多潛在的業務趨勢，但由於全球宏觀經濟壓力持續存在，我們第一季度的收入增長低於我們的預期。要想在這種環境中取得成功，就需要更加專注於上市執行。此外，我們正在採取行動，通過改善我們的成本結構和確保我們的盈利途徑來鞏固我們的業務。我們相信這些措施將推動我們整個業務的增長效率。

Cybersecurity is mission-critical and a must-have for all enterprises, especially with the world going through a digital transformation. We're leading the charge in security AI innovation and building the enterprise security platform for the future. On today's call, I'll focus on 2 key areas: one, details of our quarterly performance and external market dynamics; two, how we're continuously optimizing our business and ensuring progress towards profitability, which includes our recent cost-saving measures.

網絡安全是所有企業的關鍵任務和必備條件，尤其是在世界正在經歷數字化轉型的情況下。我們引領安全 AI 創新，構建面向未來的企業安全平台。在今天的電話會議上，我將重點關注兩個關鍵領域：一是我們季度業績和外部市場動態的細節；第二，我們如何不斷優化我們的業務並確保在盈利方面取得進展，其中包括我們最近的成本節約措施。

Before we move on, let me briefly address the onetime adjustment we made to our ARR throughout fiscal year '23. We believe making this change will reduce ARR volatility and better align growth with revenue. This adjustment did not impact our historical revenue or bookings. All of our Q1 reported ARR-related metrics and forward-looking statements include the impact of this onetime adjustment. Dave will provide more detail on this.

在我們繼續之前，讓我簡要介紹一下我們在整個 23 財年對 ARR 所做的一次性調整。我們相信做出這一改變將減少 ARR 波動並更好地使增長與收入保持一致。此調整不會影響我們的歷史收入或預訂量。我們第一季度報告的所有與 ARR 相關的指標和前瞻性陳述都包含了這一一次性調整的影響。 Dave 將提供更多詳細信息。

Now let's dive into the details of our Q1 performance and demand environment. We delivered revenue growth of 70%, a strong growth rate in any economic environment. We added net new ARR of $42 million, driven by continued adoption of our Singularity platform across endpoint, cloud and adjacent solutions. We achieved a record high gross margin of 75% supported by data efficiency and strong unit economics.

現在讓我們深入了解第一季度業績和需求環境的細節。我們實現了 70% 的收入增長，這在任何經濟環境下都是強勁的增長速度。我們增加了 4200 萬美元的淨新 ARR，這得益於我們在端點、雲和相鄰解決方案中持續採用我們的 Singularity 平台。在數據效率和強勁的單位經濟效益的支持下，我們實現了創紀錄的 75% 毛利率。

Our operating margin expanded by 35 percentage points in Q1. Let me double-click on that. We're making rapid progress toward our profitability targets. We also significantly improved our free cash flow margin, showing a year-over-year improvement of 46 percentage points. In absolute dollar terms, we reduced our operating losses and free cash flow outflows significantly.

我們的營業利潤率在第一季度增長了 35 個百分點。讓我雙擊它。我們正在朝著我們的盈利目標快速前進。我們還顯著提高了自由現金流利潤率，同比提高 46 個百分點。以絕對美元計算，我們顯著減少了經營虧損和自由現金流出。

With that said, our Q1 revenue and ARR growth fell short of our internal expectations. Let me address the 2 key factors head on that impacted our Q1 results.

話雖如此，我們第一季度的收入和 ARR 增長低於我們的內部預期。讓我來談談影響我們第一季度業績的兩個關鍵因素。

First, macroeconomic conditions are further impacting both deal sizes and sales cycles. Incrementally, budgetary scrutiny is leading to deal size adjustments for new customers and renewal contracts. We're seeing customers evaluate usage and rightsize on renewals. Some enterprises are taking a wait-and-see approach by deferring purchase decisions. While not entirely new, the impact from these conditions was more pronounced this quarter.

首先，宏觀經濟狀況進一步影響交易規模和銷售週期。預算審查逐漸導致新客戶和續簽合同的交易規模調整。我們看到客戶在續訂時評估使用情況和調整規模。一些企業通過推遲採購決定採取觀望態度。雖然不是全新的，但這些條件的影響在本季度更加明顯。

Second, operating in this environment raises the bar for execution. We were disappointed with some late-stage contract execution challenges on large deals that caused a few deals to slip to next quarter. For example, a multimillion-dollar deal with a customer who had already fully deployed our solution could not close in Q1 due to contract delays.

其次，在這種環境中運營提高了執行門檻。我們對大型交易的一些後期合同執行挑戰感到失望，這些挑戰導致一些交易推遲到下個季度。例如，由於合同延遲，與一位已經完全部署了我們的解決方案的客戶達成的價值數百萬美元的交易無法在第一季度完成。

At our scale, we have the opportunity to adapt quickly. We're focused on further enhancing our execution, including streamlining our closing process and up-leveling our enterprise platform go-to-market approach. In particular, we've incorporated factors like deal rightsizing and lower pipeline conversion as well as a higher emphasis on efficient growth into our outlook. There is no fundamental change in the business or opportunity, and our win rates remain strong, but the selling environment is more difficult. We're assuming a worsening macro environment. We now expect full year revenue to grow 41% at the midpoint.

以我們的規模，我們有機會快速適應。我們專注於進一步加強我們的執行力，包括簡化我們的關閉流程和升級我們的企業平台進入市場的方法。特別是，我們將交易規模調整、管道轉換率降低以及更加重視高效增長等因素納入了我們的展望。業務或機會沒有根本變化，我們的贏率仍然很高，但銷售環境更加困難。我們假設宏觀環境正在惡化。我們現在預計全年收入將在中點增長 41%。

To be clear, we are still adding significant new business and expanding with existing customers. These assumptions recalibrate our growth outlook and give us a solid foundation for the future. We're operating at record gross margins and winning significant majority of competitive opportunities. As we scale our business toward $1 billion in ARR and beyond, we believe our business will continue to become even more durable and resilient. We continue our expansion into adjacent domains such as security analytics and cloud security. We're early in this journey, and we remain focused on the long-term opportunity.

需要明確的是，我們仍在增加重要的新業務並與現有客戶一起擴展。這些假設重新調整了我們的增長前景，為我們的未來奠定了堅實的基礎。我們以創紀錄的毛利率運營，並贏得了絕大多數競爭機會。隨著我們將業務規模擴大到 ARR 10 億美元及以上，我們相信我們的業務將繼續變得更加持久和有彈性。我們繼續擴展到相鄰領域，例如安全分析和雲安全。我們處於這段旅程的早期，我們仍然專注於長期機會。

We're bringing innovative technology to a $100 billion addressable market composed of legacy solutions and ripe for disruption. The only way for companies to stay protected from cyber attacks is to have the best security. At SentinelOne, we leverage AI to deliver leading protection and value to enterprises of all sizes.

我們正在將創新技術帶入價值 1000 億美元的可尋址市場，該市場由遺留解決方案組成，顛覆時機已經成熟。公司免受網絡攻擊的唯一方法是擁有最好的安全性。在 SentinelOne，我們利用人工智能為各種規模的企業提供領先的保護和價值。

Digging deeper into our Q1 results, we are encouraged by several important strengths across our business. Customers of all sizes and geographies continue to treat SentinelOne for industry-leading technology and superior platform value. We added more than 700 new customers in the quarter, and total customer count grew about 43% year-over-year, exceeding 10,680.

深入研究我們的第一季度業績，我們對整個業務的幾個重要優勢感到鼓舞。各種規模和地域的客戶繼續將 SentinelOne 視為行業領先的技術和卓越的平台價值。我們在本季度增加了 700 多個新客戶，客戶總數同比增長約 43%，超過 10,680。

As you know, our customer count does not include the customers served by our MSSP partners so the number is dramatically understated. Customers with over $100,000 in ARR grew 61% year-over-year, much faster than our total customer growth. Customers above the $1 million mark grew even faster. In Q1, we added a new Fortune 10 customer, and we're now the cyber security platform of choice for half of the Fortune 10.

如您所知，我們的客戶數量不包括我們的 MSSP 合作夥伴服務的客戶，因此該數字被大大低估了。 ARR 超過 100,000 美元的客戶同比增長 61%，遠快於我們的總客戶增長速度。超過 100 萬美元大關的客戶增長得更快。在第一季度，我們增加了一個新的財富 10 強客戶，我們現在是半數財富 10 強的首選網絡安全平台。

Our Singularity platform scales with the world's largest enterprises and outperforms in the most stringent security requirements from detection to manageability to privacy and controls, other prominent customer wins, spend endpoint and cloud footprints, ranging from global financial institutions to iconic retail brands. Our momentum across mid-market enterprises remained particularly strong in Q1. Even with budgetary pressure and some downsizing, our ARR per customer increased by more than 20 percentage points year-over-year, demonstrating our success with large enterprises as well as increasing adoption of broader platform offerings.

我們的 Singularity 平台與世界上最大的企業一起擴展，並在從檢測到可管理性到隱私和控制的最嚴格的安全要求、其他重要客戶贏得、支出端點和雲足跡方面表現出色，範圍從全球金融機構到標誌性零售品牌。我們在中端市場企業的勢頭在第一季度仍然特別強勁。即使在預算壓力和一些裁員的情況下，我們每位客戶的 ARR 同比增長了 20 個百分點以上，這表明我們在大型企業中取得了成功，並且越來越多地採用了更廣泛的平台產品。

Our land and expand strategy is working as customer retention and expansion remains resilient. Our NRR exceeded 125%. This expansion was driven by footprint expansion and module adoption. Our emerging capabilities represented more than 1/3 of quarterly bookings in Q1, demonstrating strong momentum of our adjacent solutions. Singularity cloud remained our fastest-growing solution, followed by meaningful contributions from other adjacent capabilities such as Vigilance, MDR and Ranger.

我們的土地和擴張戰略正在發揮作用，因為客戶保留和擴張仍然具有彈性。我們的 NRR 超過 125%。這種擴展是由佔地面積擴展和模塊採用推動的。我們的新興能力佔第一季度季度預訂量的 1/3 以上，顯示出我們相鄰解決方案的強勁勢頭。 Singularity 雲仍然是我們增長最快的解決方案，其次是 Vigilance、MDR 和 Ranger 等其他相鄰功能的重要貢獻。

Our customer estate remains underpenetrated in terms of module adoption. There is clear opportunity to increase our platform expansion and improve our business durability. Our partner-supported go-to-market model continues to unlock scale and enhance our market position. We achieved another quarter of resilient growth from our MSSP partners in Q1 as businesses increasingly turned to managed security protection.

就模塊採用而言，我們的客戶群仍未得到充分滲透。顯然有機會增加我們的平台擴展並提高我們的業務耐用性。我們的合作夥伴支持的上市模式繼續擴大規模並提升我們的市場地位。隨著企業越來越多地轉向託管安全保護，我們在第一季度從我們的 MSSP 合作夥伴那裡實現了又一個四分之一的彈性增長。

Beyond endpoint license expansions, our MSSP partners have started to adopt broader platform modules such as Vigilance, MDR, Ranger and many others. We expect continued MSSP share gains, installed base replacement and module attach to drive meaningful growth going forward. Our autonomous security, multi-tenancy and fully customizable access control makes SentinelOne a critical partner for large MSSPs.

除了端點許可證擴展之外，我們的 MSSP 合作夥伴還開始採用更廣泛的平台模塊，例如 Vigilance、MDR、Ranger 等。我們預計 MSSP 份額的持續增長、安裝基礎更換和模塊附加將推動未來有意義的增長。我們的自主安全性、多租戶和完全可定制的訪問控制使 SentinelOne 成為大型 MSSP 的重要合作夥伴。

Together, we're providing enterprise-grade protection to customers of all sizes. Expanding upon our cloud security partnership with Wiz, we've enhanced the customer experience through deeper technology integration. Now our integrated cloud security platform provides enterprises with complete visibility into their cloud-hosted infrastructure and allows them to protect against cloud-based threats at machine speed.

我們共同為各種規模的客戶提供企業級保護。擴展我們與 Wiz 的雲安全合作夥伴關係，我們通過更深入的技術集成增強了客戶體驗。現在，我們的集成雲安全平台為企業提供了對其云託管基礎設施的完整可見性，並允許他們以機器速度抵禦基於雲的威脅。

Our recently launched cloud security marketing campaign is creating strong momentum, increasing customer and partner interest in Singularity cloud. Looking at the competitive landscape, we continue to maintain strong win rates without having to compromise on pricing. This hasn't changed, and our disciplined pricing and value is reflected in our record gross margins. Our ASPs remain stable, and we continue to win against legacy and next-gen vendors in significant majority of competitive evaluations.

我們最近發起的雲安全營銷活動勢頭強勁，增加了客戶和合作夥伴對 Singularity 雲的興趣。縱觀競爭格局，我們繼續保持強勁的贏率，而不必在定價上做出妥協。這沒有改變，我們嚴格的定價和價值反映在我們創紀錄的毛利率中。我們的 ASP 保持穩定，我們繼續在絕大多數競爭性評估中戰勝傳統和下一代供應商。

And we expect these trends to continue. Customers value SentinelOne's culture of trust and transparency, which is a philosophy we bring to every relationship. We're focused on expanding our pipeline, leveraging our channel ecosystem and refining our execution.

我們預計這些趨勢將繼續下去。客戶重視 SentinelOne 的信任和透明文化，這是我們為每一段關係帶來的理念。我們專注於擴展我們的管道，利用我們的渠道生態系統並完善我們的執行。

SentinelOne's platform is purpose-built to help customers optimize security and cost with coverage across diverse operating systems and cloud environments. We're helping enterprises consolidate multiple point solutions, enabling them to realize better security and business outcomes using fewer resources.

SentinelOne 的平台專為幫助客戶優化安全性和成本而構建，覆蓋各種操作系統和雲環境。我們正在幫助企業整合多點解決方案，使他們能夠使用更少的資源實現更好的安全性和業務成果。

Let me share how we're balancing our investments and taking specific actions to ensure our path towards profitability.

讓我分享一下我們如何平衡我們的投資並採取具體行動來確保我們實現盈利的道路。

In the current economic landscape, it is vital that we adapt and optimize our resources accordingly. By acting swiftly, we can enhance our execution and drive operational improvements. We're reiterating our commitment to delivering margin expansion regardless of current economic scenarios as demonstrated by our Q1 margin improvement and overachievement.

在當前的經濟形勢下，我們必須相應地調整和優化我們的資源。通過迅速行動，我們可以加強執行力並推動運營改進。正如我們第一季度的利潤率改善和超額業績所證明的那樣，我們重申我們致力於實現利潤率擴張的承諾，無論當前的經濟形勢如何。

As a result, we're adjusting our cost as needed to drive more efficient growth, enhance resiliency and ensure our path to profitability. Let me provide a few specific examples.

因此，我們正在根據需要調整成本，以推動更高效的增長、增強彈性並確保我們的盈利之路。讓我舉幾個具體的例子。

First, we're implementing a plan to optimize our workforce that is expected to impact about 5% of our current employees in pace of our future headcount growth plans. We also see opportunities to leverage AI tools to make our teams more productive and help drive operational efficiencies for the company.

首先，我們正在實施一項優化員工隊伍的計劃，該計劃預計將影響我們未來員工人數增長計劃步伐中約 5% 的現有員工。我們還看到了利用人工智能工具提高團隊生產力並幫助提高公司運營效率的機會。

Second, we're sharpening our focus on cost discipline. This includes reducing variable spend to business-critical needs as well as optimizing talent locations and facilities. We're prioritizing core products that offer the greatest potential for delivering substantial business and customer value. We believe these initiatives more closely align our cost structure with our current outlook without sacrificing long-term growth potential and market opportunities. These are the right steps to streamline our business. We are continuing to maintain a balance between growth and profitability.

其次，我們正在加強對成本紀律的關注。這包括減少對關鍵業務需求的可變支出，以及優化人才選址和設施。我們正在優先考慮最有潛力提供可觀業務和客戶價值的核心產品。我們相信，這些舉措使我們的成本結構更符合我們當前的前景，而不會犧牲長期增長潛力和市場機會。這些是簡化我們業務的正確步驟。我們將繼續保持增長和盈利之間的平衡。

Reflecting upon last few years, SentinelOne has evolved from an endpoint security solution to a comprehensive enterprise security platform. Our endpoint solution has been a source of tremendous growth, and we expect this to continue in the coming years. Beyond our endpoint market success, growth of our emerging solutions have diversified our business mix across endpoint cloud identity and data. Our leading innovations and holistic approach to cybersecurity put us in a strong position for long-term growth across multiple large addressable markets.

回顧過去幾年，SentinelOne 已經從一個端點安全解決方案發展成為一個全面的企業安全平台。我們的端點解決方案一直是巨大增長的源泉，我們預計這將在未來幾年繼續下去。除了我們在端點市場的成功之外，我們新興解決方案的增長還使我們的業務組合在端點雲身份和數據方面多樣化。我們領先的網絡安全創新和整體方法使我們在多個大型潛在市場的長期增長中處於有利地位。

We're in the midst of a paradigm shift among enterprise security and operations. Technological advancements are changing what was once imagined possible for cybersecurity. Artificial intelligence is among the most disruptive technologies of our time and has the potential to scale cybersecurity in a completely new way, and we are leading the charge through innovation.

我們正處於企業安全和運營之間的範式轉變之中。技術進步正在改變曾經對網絡安全的想像。人工智能是我們這個時代最具顛覆性的技術之一，有可能以全新的方式擴展網絡安全，而我們正在通過創新引領潮流。

From early on, we developed a fully automated AI-based security platform, integrating neural networks to serve a specific use case, combating cyber attacks and protecting our digital way of life as a force for good. Our Singularity platform is powered by a single proprietary security data lake to protect multiple attack surfaces. Our AI-based approach delivers best-in-class autonomous protection, where we've consistently led in third-party evaluations in Gartner Critical Capabilities.

從一開始，我們就開發了一個基於人工智能的全自動安全平台，集成了神經網絡來服務於特定的用例，打擊網絡攻擊並保護我們的數字生活方式，以此作為一種向善的力量。我們的 Singularity 平台由一個專有的安全數據湖提供支持，以保護多個攻擊面。我們基於 AI 的方法提供一流的自主保護，我們在 Gartner 關鍵能力的第三方評估中一直處於領先地位。

Our success is also proven in real-world experiences, whether that be the global scale Sunburst attack a few years ago when we had 0 customers impacted, or more recently, the SmoothOperator global supply chain attack. Here again, our Singularity platform successfully prevented the attack from executing well before the threat was discovered and identified by other security vendors. This is the true potential of SentinelOne's leading security, real-time AI-based autonomous protection.

我們的成功也在現實世界的經驗中得到了證明，無論是幾年前我們受到 0 個客戶影響的全球規模 Sunburst 攻擊，還是最近的 SmoothOperator 全球供應鏈攻擊。同樣，我們的 Singularity 平台在威脅被其他安全供應商發現和識別之前成功地阻止了攻擊的執行。這是 SentinelOne 領先的安全、基於人工智能的實時自主保護的真正潛力。

And once again, we're leading the industry by incorporating generative AI into cybersecurity. We recently launched Purple AI, a one-of-a-kind innovation in cybersecurity that supercharges users to control all aspects of enterprise security from visibility to response with unmatched speed and efficiency. This is much more than a sidecar assistant. It can upgrade any security analyst to superhuman levels. Customers and prospects were given hands-on access to a live demo of Purple AI at RSA, the world's largest cybersecurity event.

再一次，我們通過將生成人工智能整合到網絡安全中來引領行業。我們最近推出了 Purple AI，這是網絡安全領域的一項獨一無二的創新，它使用戶能夠以無與倫比的速度和效率控制企業安全的各個方面，從可見性到響應。這不僅僅是邊車助手。它可以將任何安全分析師提升到超人的水平。在全球最大的網絡安全活動 RSA 上，客戶和潛在客戶可以親身體驗 Purple AI 的現場演示。

And feedback was extremely positive. The Wall Street Journal called us out as an AI innovator. CRN put us on the top of the list of 10 cool new cybersecurity tools announced at RSA 2023. And CSO magazine named us one of the most interesting products to see at RSA Conference 2023. We are well positioned to bring more AI to customers. SentinelOne's AI-based detection engine has always been a differentiator. Now with Purple, we're taking a big step in bringing generative AI to security professionals, making security operations easier, faster and efficient across petabytes of data from any source.

反饋非常積極。 《華爾街日報》稱我們為 AI 創新者。 CRN 將我們列為在 RSA 2023 上宣布的 10 個很酷的新網絡安全工具的榜首。CSO 雜誌將我們評為 2023 年 RSA 大會上最有趣的產品之一。我們已準備好為客戶帶來更多人工智能。 SentinelOne 基於人工智能的檢測引擎一直是一個差異化因素。現在，借助 Purple，我們在將生成式 AI 帶給安全專業人員方面邁出了一大步，使安全操作在來自任何來源的數 PB 數據中變得更加輕鬆、快速和高效。

Importantly, we are committed to ensuring our cutting-edge technologies are used ethically, safely and responsibly. Our Singularity platform allows customers to maintain complete control of their data, reinforcing our dedication to keeping sensitive information in the hands of its rightful owners.

重要的是，我們致力於確保以合乎道德、安全和負責任的方式使用我們的尖端技術。我們的 Singularity 平台允許客戶保持對其數據的完全控制，加強我們將敏感信息掌握在其合法所有者手中的承諾。

Before concluding my remarks, let me mention an exciting development. Sally Jenkins joined SentinelOne in April as our new Chief Marketing Officer. Sally's marketing leadership will help further define our value proposition, expand our brand presence and solidify our leading growth across multiple market segments. She brings over 30 years of experience, amplifying brands at high growth and scaled companies. We welcome Sally to the SentinelOne leadership team.

在結束我的發言之前，讓我提一下令人興奮的發展。 Sally Jenkins 於 4 月加入 SentinelOne，擔任我們的新任首席營銷官。 Sally 的營銷領導力將有助於進一步確定我們的價值主張、擴大我們的品牌影響力並鞏固我們在多個細分市場的領先增長。她帶來了 30 多年的經驗，在高增長和規模化的公司中擴大了品牌。我們歡迎 Sally 加入 SentinelOne 領導團隊。

In conclusion, we believe today's macro challenges are not permanent and that enterprise transformation is in its infancy. We're well positioned to address critical enterprise needs leading next-generation security across endpoint, cloud and security data analytics.

總之，我們認為今天的宏觀挑戰不是永久性的，企業轉型處於起步階段。我們處於領先地位，可以滿足跨端點、雲和安全數據分析的下一代安全性的關鍵企業需求。

We also believe the market will continue to convert towards enterprise-wide cybersecurity platform driven by AI, an approach we pioneered and lead. We're committed to innovation, improving our operating performance and empowering customers with the best enterprise security resources.

我們還相信，市場將繼續轉向由 AI 驅動的企業級網絡安全平台，這是我們開創和引領的方法。我們致力於創新，提高我們的運營績效，並為客戶提供最好的企業安全資源。

Ultimately, companies win when they continue to adapt, innovate and deliver value for all stakeholders, and this is our North Star. I thank you and all stakeholders, especially our Sentinel customers, partners and shareholders, for your continued support and commitment. With that, let me turn the call over to Dave Bernhardt, our Chief Financial Officer.

最終，當公司繼續適應、創新並為所有利益相關者創造價值時，它們就會獲勝，這就是我們的北極星。我感謝您和所有利益相關者，尤其是我們的 Sentinel 客戶、合作夥伴和股東，感謝您一直以來的支持和承諾。有了這個，讓我把電話轉給我們的首席財務官戴夫伯恩哈特。

Tomer, thank you. I'll discuss our quarterly financials and provide additional context about our guidance for Q2 and fiscal year '24. As a reminder, all comparisons made are year-over-year and all margins discussed are non-GAAP, unless otherwise stated. Before digging into the Q1 results, I will discuss the details of a onetime adjustment we made to our ARR for fiscal year '23.

托默，謝謝你。我將討論我們的季度財務狀況，並提供有關我們對第二季度和 24 財年的指導的更多背景信息。提醒一下，除非另有說明，否則所做的所有比較都是同比的，所討論的所有利潤率都是非 GAAP 的。在深入研究第一季度的結果之前，我將討論我們對 23 財年 ARR 進行的一次性調整的細節。

First, some context. In the past few years, we had seen steadily increasing usage and consumption patterns by our large customers, which we accounted for real-time in quarterly ARR. However, as the first quarter progressed, we experienced a notable decline in usage, which continued in May. In light of the current macro environment, we expect these lower usage and consumption trends to persist.

首先，一些背景。在過去的幾年裡，我們看到大客戶的使用和消費模式穩步增加，我們在季度 ARR 中對其進行了實時計算。然而，隨著第一季度的進展，我們的使用量出現了顯著下降，這種情況在 5 月份仍在繼續。鑑於當前的宏觀環境，我們預計這些較低的使用率和消費趨勢將持續存在。

Due to this new dynamic, we elected to tighten the methodology for calculating ARR for consumption and usage-based agreements to reflect committed contract values. This provides a cleaner view of growth for fiscal '24 and beyond. By making this change now, we expect ARR and revenue to be more closely aligned. It should also reduce volatility in ARR compared to the prior methodology, where usage and consumption changes could have a magnified impact on ARR.

由於這種新動態，我們選擇收緊計算基於消耗和使用的協議的 ARR 的方法，以反映承諾的合同價值。這為 24 財年及以後的財政增長提供了更清晰的視角。通過現在進行此更改，我們預計 ARR 和收入將更加緊密地保持一致。與之前的方法相比，它還應該降低 ARR 的波動性，在之前的方法中，使用和消費的變化可能會對 ARR 產生更大的影響。

As we reviewed the methodology, we also discovered historical upsell and renewal recording inaccuracies relating to ARR on certain subscription and consumption contracts, which are now corrected. After considering these factors, this adjustment resulted in a onetime ARR reduction of $27 million or approximately 5% of ARR, resulting in Q4 fiscal '23 ending ARR of $522 million.

在審查該方法時，我們還發現了某些訂閱和消費合同中與 ARR 相關的歷史追加銷售和續訂記錄不准確，這些錯誤現已得到糾正。考慮到這些因素後，這一調整導致一次性 ARR 減少 2700 萬美元或 ARR 的大約 5%，導致 23 財年第四季度末 ARR 為 5.22 億美元。

We are applying a comparable estimated adjustment to the remaining quarters in fiscal year '23, which we believe is a reasonable approximation of the impact in those periods. Importantly, this adjustment did not impact historical revenue or bookings. We wanted to be transparent to address this upfront and move forward on a clearer path.

我們正在對 23 財年的剩餘季度進行可比較的估計調整，我們認為這是對這些時期影響的合理近似。重要的是，此調整不會影響歷史收入或預訂量。我們希望以透明的方式預先解決這個問題，並沿著更清晰的道路前進。

Now moving on to our Q1 results. Revenue grew 70% to $133 million, with international revenue growing 84% year-over-year and representing 35% of total revenue. We added net new ARR of $42 million and ended the quarter with total ARR of $564 million. This did not meet our expectations. Customers continue to tighten budgets and deal sizes. While these factors are not entirely new, they were more pronounced in Q1, and we have the opportunity to execute better.

現在繼續我們的第一季度結果。收入增長 70% 至 1.33 億美元，其中國際收入同比增長 84%，佔總收入的 35%。我們增加了 4200 萬美元的新 ARR 淨值，並在本季度結束時總 ARR 為 5.64 億美元。這不符合我們的預期。客戶繼續收緊預算和交易規模。雖然這些因素並不是全新的，但它們在第一季度更加明顯，我們有機會更好地執行。

Looking beyond the top line growth, our Q1 performance showcased many areas of strength across the business. We continue to see a healthy mix of new customers and expanding business from existing customers. Our dollar-based net retention rate remains north of 125%. Also, our ARR per customer increased more than 20% compared to last year, reflecting strong business momentum among large enterprises and growing adoption of our Singularity platform.

除了收入增長之外，我們第一季度的業績展示了整個企業的許多優勢領域。我們繼續看到新客戶的健康組合和現有客戶的業務擴展。我們基於美元的淨保留率保持在 125% 以上。此外，與去年相比，我們每位客戶的 ARR 增長了 20% 以上，這反映出大型企業的強勁業務勢頭以及我們 Singularity 平台的日益普及。

We achieved another quarter of resilient growth from our MSSP partners in Q1 as businesses increasingly turn to manage security protection. Our broader platform adoption by our existing customers and partners remains durable and resilient, fueling a solid base for growth regardless of broader conditions.

隨著企業越來越多地轉向管理安全保護，我們在第一季度從我們的 MSSP 合作夥伴那裡實現了又一個四分之一的彈性增長。我們現有客戶和合作夥伴對我們更廣泛的平台採用仍然持久且有彈性，無論更廣泛的條件如何，都為增長奠定了堅實的基礎。

Turning to our costs and margins. In the quarter, we achieved better gross and operating margin and narrowed our operating loss and free cash flows, all despite lower top line growth. We delivered a record gross margin of 75%, an increase of 7 percentage points year-over-year. Just 2 years after setting our long-term gross margin target, we're already operating within the range of 75% to 80%. This demonstrates great progress. We're seeing continued benefits from economies of scale, data processing efficiencies and cross-sell from adjacent solutions.

轉向我們的成本和利潤。在本季度，儘管收入增長較低，但我們實現了更好的毛利率和營業利潤率，並縮小了營業虧損和自由現金流。我們的毛利率達到創紀錄的 75%，同比增長 7 個百分點。在設定我們的長期毛利率目標僅 2 年後，我們就已經在 75% 到 80% 的範圍內運營。這證明了巨大的進步。我們看到了規模經濟、數據處理效率和相鄰解決方案交叉銷售的持續收益。

This also underscores the importance and benefits of our fully integrated security data analytics back end, where we collect data once to enable more and more capabilities. We also delivered substantial operating margin improvement, expanding 35 percentage points year-over-year to negative 38%. As market conditions have evolved, we have become more selective about investments. We've taken important steps to align our cost structure with our updated growth outlook.

這也凸顯了我們完全集成的安全數據分析後端的重要性和優勢，我們在後端收集數據一次即可啟用越來越多的功能。我們還實現了顯著的營業利潤率改善，同比增長 35 個百分點至負 38%。隨著市場條件的發展，我們對投資變得更加挑剔。我們已採取重要步驟使我們的成本結構與我們更新的增長前景保持一致。

We've also improved our cash conversion in the first quarter. On a dollar basis, we reduced our operating losses year-over-year in Q1. We also reduced our free cash outflow from $55 million in Q1 of last year to $31 million this quarter, reflecting a free cash flow margin improvement of 46 percentage points.

我們還改善了第一季度的現金轉換。按美元計算，我們在第一季度同比減少了運營虧損。我們還將自由現金流出從去年第一季度的 5500 萬美元減少到本季度的 3100 萬美元，反映出自由現金流利潤率提高了 46 個百分點。

Moving to our guidance for Q2 and the full fiscal year '24. We are maintaining strong competitive win rates, stable pricing, and we're generating strong pipeline momentum. At the same time, we expect macro conditions to worsen, impacting enterprise budgets and sales cycles. It's a more difficult selling environment. We are assuming lower pipeline conversion for the remainder of the year as well as further deal downsizing. We strongly believe this does not change our competitive position or our long-term opportunity. The only way for companies to stay protected from cyber attacks is with the best security protection, and SentinelOne offers that, leading security and platform value.

轉向我們對第二季度和整個 24 財年的指導。我們保持著強大的競爭獲勝率、穩定的定價，並且我們正在產生強大的管道勢頭。與此同時，我們預計宏觀環境將惡化，影響企業預算和銷售週期。這是一個更困難的銷售環境。我們假設今年剩餘時間管道轉化率較低，交易規模進一步縮減。我們堅信這不會改變我們的競爭地位或我們的長期機會。公司免受網絡攻擊的唯一方法是最好的安全保護，而 SentinelOne 提供領先的安全性和平台價值。

For the second quarter, we expect revenue of about $141 million, up 38% year-over-year, and we expect net new ARR in the low $40 million range, consistent with Q1. We expect second half net new ARR to be higher than the first half, consistent with typical seasonality. For the full year, we expect revenue of $590 million to $600 million, growing 41% at the midpoint.

對於第二季度，我們預計收入約為 1.41 億美元，同比增長 38%，我們預計淨新 ARR 將在 4000 萬美元的低位範圍內，與第一季度一致。我們預計下半年淨新 ARR 將高於上半年，與典型的季節性一致。對於全年，我們預計收入為 5.9 億美元至 6 億美元，中點增長 41%。

We now expect full year ARR to grow in the mid-30% range from the adjusted fiscal year '23 ending ARR of $522 million. While lower than our previous expectations, we expect continued growth and rapid progress towards our profitability targets.

我們現在預計全年 ARR 將從調整後的 23 財年結束時的 5.22 億美元 ARR 增長 30% 左右。雖然低於我們之前的預期，但我們預計將繼續增長并快速實現我們的盈利目標。

Turning to the outlook for margins. In Q2, we expect gross margin to be about 74.5%, an improvement of 10 percentage points year-over-year. We expect gross margin to remain relatively consistent in the remainder of the year. As a result, we are increasing our full year gross margin guidance to 74% to 75%, up over 2 percentage points year-over-year at the midpoint. We expect our increasing scale and improving data processing efficiencies to continue benefiting our results.

轉向利潤率前景。二季度，我們預計毛利率約為74.5%，同比提升10個百分點。我們預計今年剩餘時間的毛利率將保持相對穩定。因此，我們將全年毛利率指引提高至 74% 至 75%，中點同比增長超過 2 個百分點。我們預計我們不斷擴大的規模和提高的數據處理效率將繼續使我們的業績受益。

Finally, we expect our Q2 operating margin to be negative 36%, implying an improvement of more than 20 percentage points year-over-year. Despite a lower growth expectation for the year, we are reiterating our operating margin guidance of between negative 29% and negative 25%, an improvement of about 22 points at the midpoint compared to fiscal year '23.

最後，我們預計我們第二季度的營業利潤率為負 36%，這意味著同比提高 20 個百分點以上。儘管今年的增長預期較低，但我們重申我們的營業利潤率指引在負 29% 和負 25% 之間，與 23 財年相比，中點提高了約 22 個百分點。

We're focused on improving our execution and operating the business efficiently through evolving economic conditions. We must adapt, execute better and will emerge as a stronger company in the years ahead. Every dollar we invest must generate a positive return. To that end, we are taking measured steps to align our cost structure with the pace of growth this year, including decreases in variable spend and cloud hosting costs, optimizing talent and facility locations, lower forward hiring and approximately a 5% total headcount reduction.

我們專注於在不斷變化的經濟條件下提高我們的執行力和高效運營業務。我們必須適應，更好地執行，並在未來幾年成為一家更強大的公司。我們投資的每一美元都必須產生正回報。為此，我們正在採取措施使我們的成本結構與今年的增長步伐保持一致，包括減少可變支出和雲託管成本、優化人才和設施位置、減少遠期招聘以及裁員約 5%。

These efforts will increase performance accountability and operating efficiency, driving expected cost savings of about $40 million once fully executed. We believe these are the right steps to optimize our long-term market and growth potential while remaining on track to achieve breakeven profitability in fiscal year '25.

這些努力將提高績效問責制和運營效率，一旦完全執行，預計將節省約 4000 萬美元的成本。我們相信，這些是優化我們的長期市場和增長潛力的正確步驟，同時仍有望在 25 財年實現盈虧平衡。

We have a very strong balance sheet with $1.1 billion in cash, cash equivalents and investments and no debt. This is a substantial war chest. It provides longevity, flexibility and ample runway to achieve our profitability targets.

我們的資產負債表非常強勁，有 11 億美元的現金、現金等價物和投資，沒有債務。這是一筆可觀的戰爭基金。它提供了長壽、靈活性和充足的跑道來實現我們的盈利目標。

Before we open for Q&A, I want to take a minute to summarize everything we covered here today, which has been a lot.

在我們開始問答之前，我想花一點時間總結一下我們今天在這裡討論的所有內容，內容很多。

We achieved many positive results. 70% revenue growth and delivered upside to margins with significant free cash flow improvements. Demand in our pipeline remain healthy. On the other hand, customers are heavily scrutinizing deals, and we have the opportunity to elevate our execution. We also experienced a slowdown in consumption and usage among certain customers, which led us to adjust our ARR to better align with revenue and mitigate further fluctuations.

我們取得了許多積極成果。收入增長 70%，並通過顯著改善自由現金流來提高利潤率。我們管道中的需求保持健康。另一方面，客戶正在嚴格審查交易，我們有機會提升執行力。我們還經歷了某些客戶的消費和使用放緩，這導致我們調整 ARR 以更好地與收入保持一致並減輕進一步的波動。

Finally, we're executing workforce reduction and cost optimization actions to ensure we meet our fiscal year '24 margin targets and continue to deliver disciplined growth. Thank you all for joining us today. We will now take questions. Operator, please open up the line.

最後，我們正在執行裁員和成本優化措施，以確保我們實現 24 財年的利潤率目標並繼續實現有規律的增長。感謝大家今天加入我們。我們現在開始提問。接線員，請開通線路。

(Operator Instructions). The first question comes from the line of Brian Essex with JPMorgan.

（操作員說明）。第一個問題來自摩根大通的 Brian Essex。

I guess, Dave, just want to address this adjustment and get a little bit of clarity there. You just alluded to the slowdown in consumption and usage. Is this for kind of storage and query? Maybe you can explain the underlying product that's related to this consumption-based revenue. And then as we look in our models and try to forecast out the revenue generated from ARR, is this going to be -- does this basically remain out of the ARR equation now? So it's kind of an extra layer of revenue we need to consider that's more variable in nature? Maybe a little bit of color there will help.

戴夫，我想我只是想解決這個調整，並弄清楚那裡的情況。你剛才提到消費和使用的放緩。這是為了某種存儲和查詢嗎？也許您可以解釋與這種基於消費的收入相關的基礎產品。然後當我們查看我們的模型並嘗試預測 ARR 產生的收入時，這是否會 - 現在基本上不在 ARR 等式中了嗎？所以這是我們需要考慮的一種額外的收入層，它在本質上更具可變性？也許那裡有一點顏色會有所幫助。

Yes, happy to discuss this. So what's happened is we had a $27 million onetime adjustment. It's about 5% of the ending ARR that we decided to be more conservative on and restate as of Q4 of last year. It's two parts. One, we've changed the methodology of calculating the ARR and consumption and usage-based agreements to reflect the committed contract value.

是的，很高興討論這個問題。所以發生的事情是我們進行了 2700 萬美元的一次性調整。截至去年第四季度，我們決定更加保守並重申的最終 ARR 約為 5%。這是兩個部分。第一，我們改變了計算 ARR 以及基於消費和使用的協議的方法，以反映承諾的合同價值。

When you asked specifically what's that about, it's about the data ingestion and the security data lake and the data set consumption products. So those are approximately single digit of our total ARR. But what we had been seeing historically was we were seeing customers that were signing up for contracts, using the data in excess of what they were committed to, renewing early, and we were reflecting that in the ARR balance.

當您具體詢問那是什麼時，它是關於數據攝取和安全數據湖以及數據集消費產品的。所以這些大約是我們總 ARR 的個位數。但我們從歷史上看到的是，我們看到客戶正在簽訂合同，使用超出他們承諾的數據，提前續約，我們在 ARR 餘額中反映了這一點。

As something that we've seen going into late Q4 and early Q1 and then throughout Q1, even into May and likely into June, we're seeing a decrease in that and customers rightsizing their spend to get back to committed total. So we were seeing an outsized swing to the opposite end that we had seen prior. So what had happened was we're -- by doing this, we're trying to tighten the definition of ARR to eliminate these swings to our favor or to our detriment and basically lock it to the committed contract.

正如我們看到的那樣，進入第四季度末和第一季度初，然後在整個第一季度，甚至進入 5 月，甚至可能進入 6 月，我們看到這種情況有所減少，客戶正在調整他們的支出以恢復承諾總額。因此，我們看到了向我們之前看到的另一端的巨大擺動。所以發生的事情是我們——通過這樣做，我們試圖收緊 ARR 的定義，以消除這些對我們有利或不利的波動，並基本上將其鎖定在承諾的合同中。

So we believe that this is -- this, going forward, it's going to reduce the quarterly ARR fluctuations. It's going to more correlate ARR and revenue. And that's the reason that we did this. The reason it doesn't change any historical bookings, in terms of the other side of this, which was historical upsell and renewal inaccuracies, what we were seeing was we had upsell motions that included a renewal, and we were adding that to the historical ARR versus adding just the upsell component of it. This was an error in our CRM. We have fixed this and should not have that error going forward. That's why it didn't affect revenue, didn't affect overall total bookings, didn't affect cash flows, didn't affect the income statement. But what it did do is it set external expectations for what revenue should be going forward, both externally and internally, that's why we made this adjustment now.

所以我們相信這是 - 未來，它將減少季度 ARR 波動。它將更加關聯 ARR 和收入。這就是我們這樣做的原因。它沒有改變任何歷史預訂的原因，就另一方面而言，這是歷史追加銷售和續訂不准確，我們看到的是我們有包括續訂在內的追加銷售動議，我們將其添加到歷史記錄中ARR 與僅添加它的追加銷售部分。這是我們 CRM 中的一個錯誤。我們已經解決了這個問題，以後應該不會再出現這個錯誤了。這就是為什麼它不影響收入，不影響總預訂量，不影響現金流量，不影響損益表。但它所做的是，它為外部和內部的收入應該向前發展設定了外部預期，這就是我們現在進行此調整的原因。

Okay. And maybe to follow up. How should we -- is there a way we can understand the practical use case around how an enterprise might be managing their security posture and choose to maybe ingest and store less data? What is the thought process that goes along with that? And what is the risk reward kind of trade-off of their decision to ingest less data to save costs when your kind of security posture's at risk?

好的。也許會跟進。我們應該如何 - 有沒有一種方法可以讓我們了解企業如何管理其安全狀況並選擇可能攝取和存儲更少數據的實際用例？隨之而來的思維過程是什麼？當您的安全狀況面臨風險時，他們決定攝取較少數據以節省成本的風險回報是什麼？

We're seeing this in two different areas. I think that, one, that's something that you see, I think, with a lot of consumption-based companies. I mean, when people look at log analytics and generally trying to ingest data, they now take a more prudent approach to what they want to store. So you see them filtering out a lot of the data that they don't feel is useful.

我們在兩個不同的領域看到了這一點。我認為，第一，這是你在許多基於消費的公司中看到的東西。我的意思是，當人們查看日誌分析並通常嘗試攝取數據時，他們現在對他們想要存儲的內容採取更謹慎的方法。所以你看到他們過濾掉了很多他們認為沒有用的數據。

To us, that's one thing that we saw through the dataset user base happening where they downsize, rightsize some of the logs that they wanted to keep. I think a lot of companies are kind of going through that same exercise now, whether with us or other vendors, which was really why we elected to just remove that consumption part from our ARR to prevent that from kind of being something we consider into the future.

對我們來說，這是我們通過數據集用戶群看到的一件事，他們正在縮小、調整他們想要保留的一些日誌。我認為很多公司現在都在進行同樣的練習，無論是與我們還是其他供應商，這就是為什麼我們選擇從我們的 ARR 中刪除該消費部分以防止它成為我們考慮的事情未來。

And obviously, if something kind of aligns to the better, obviously, that becomes upside. The other side of it is when you look at security data, it's much of the same story. Some log sources are not as useful for customers, and they're now scrutinizing what they put into the platform, generally very healthy. Just when it comes after 2 years of putting everything they could into the platform, I think now we're seeing, obviously, the inverse behavior, which we felt, again, something prudent to do here is just remove that volatility from ARR, and that's the result.

顯然，如果某種東西向更好的方向發展，那顯然會變得有利。另一方面，當您查看安全數據時，情況大同小異。一些日誌源對客戶沒有那麼有用，他們現在正在仔細檢查他們放入平台的內容，通常非常健康。就在他們將所有可能的東西都投入平台 2 年後，我想現在我們顯然看到了相反的行為，我們再次感覺到，在這裡謹慎做的事情就是消除 ARR 的波動性，並且這就是結果。

The next question comes from the line of Tal Liani with Bank of America.

下一個問題來自美國銀行的 Tal Liani。

I hope you can hear me.

我希望你能聽到我的聲音。

We're here. We're not sure what's happening...

我們到了。我們不確定發生了什麼......

I know. I know. It's not you. I know. So hopefully, she can hear us. So I want to ask a question about certain things you said. On one hand, you're saying that this is a slippage of contracts from Q1 on to the next few quarters. On the other hand, if this is just slippage, why are you reducing second quarter guidance and full year guidance? And then why are you reducing workforce and other expenses? It seems to me from -- just from your actions into the guidance and into the expenses, that it's more than just slippage. That something in the environment in -- is worse. And the question I have is first about quarter linearity.

我知道。我知道。不是你。我知道。希望她能聽到我們的聲音。所以我想問一個關於你說的某些事情的問題。一方面，你說這是從第一季度到接下來幾個季度的合同下滑。另一方面，如果這只是下滑，你為什麼要減少第二季度指導和全年指導？那你為什麼要減少勞動力和其他開支？在我看來——從你的行動到指導和費用，這不僅僅是滑點。環境中的某些東西 - 更糟。我的問題首先是關於四分之一線性度。

I think, in April, you said that things are fine. So does it mean that it deteriorated right after? And I want to ask you something about competition. The question is, is it more related to competition? Did you have greater loss rate of contracts or things that impacted the guidance, the lower guidance? Or is it really strictly about spending? It's hard for me just to see the same spending comments from other companies. And I'm trying to triangulate kind of what the data points from other companies on the space.

我想，在四月份，你說一切都很好。那麼這是否意味著它立即惡化了？我想問你一些關於競爭的事情。問題是，它是否與競爭更相關？您是否有更高的合同損失率或影響指導的事情，指導越低？或者它真的是嚴格意義上的支出？我很難看到其他公司的相同支出評論。我正在嘗試對空間中其他公司的數據點進行三角測量。

Of course. It's not just deal slippage. I think we tried making that clear. I think deal slippage is something that, obviously, we witnessed as early as Q3 and Q4 of last year. So some of it was known. And I think that generally, we factored some of that into how we convert pipeline. I think we have had a couple of execution hiccups where some deals that just were not supposed to slip, this is not specifically macro related, we just weren't able to execute these contracts in time. And that was unfortunate, and that's something that we need to do better. So to me, this is not bill slippage. It's our own execution.

當然。這不僅僅是交易延誤。我想我們試著把它說清楚。我認為交易延誤顯然是我們早在去年第三季度和第四季度就目睹的事情。所以其中一些是已知的。我認為一般來說，我們將其中的一些因素考慮到了我們如何轉換管道。我認為我們在執行過程中遇到了一些小問題，其中一些交易本不應該被取消，這與宏觀無關，我們只是無法及時執行這些合同。這很不幸，這是我們需要做得更好的事情。所以對我來說，這不是賬單滑點。這是我們自己的處決。

The other factor and why we're taking a more cautious approach is just generally, we feel this environment, customers are not really at the end of the contract, reflecting what they intend to buy was in the beginning of entry to the pipeline. So if we take a more cautious look into our pipeline, which are very healthy, it's just you don't always are able to predict what that deal size is going to be at the end of it all. So to us, I mean, we're just taking a more prudent approach.

另一個因素以及為什麼我們採取更謹慎的方法只是一般來說，我們覺得這種環境，客戶並沒有真正處於合同的末尾，反映出他們打算購買的是在進入管道的開始。因此，如果我們更加謹慎地審視我們非常健康的管道，只是你並不總是能夠預測最終的交易規模。所以對我們來說，我的意思是，我們只是採取了更謹慎的方法。

The third factor that we see in play is that consumption dynamic. I mean consumption is something that we've had in our ARR. It's something that is part of our ongoing operations, obviously. So taking out consumption from ARR obviously forces us to also take the guide down and really not consider consumption as part of our go-forward but only as upside, as I mentioned.

我們看到的第三個因素是消費動態。我的意思是消費是我們 ARR 中的東西。顯然，這是我們正在進行的業務的一部分。因此，從 ARR 中剔除消費顯然會迫使我們也降低指南，並且真的不會將消費視為我們前進的一部分，而只是作為上行，正如我提到的那樣。

So these are the 3 factors that go into it. The competitive environment remains pretty much the same. Our win rates have been stabilized over the past few quarters and even before. I don't think we're seeing anything out of the ordinary there. We definitely see some of these providers that we compete against, I mean, become more aggressively defensive, especially when we come for their estates. I mean we're the up-and-comer here. We gun for their estates, and sometimes they become highly aggressive to the point of $0-deal types of transactions that we just don't do and will not do. But outside of that, which I would kind of call on the outline or kind of the outskirts of things, things are pretty normalized on the competition front.

因此，這些是其中的 3 個因素。競爭環境幾乎保持不變。我們的勝率在過去幾個季度甚至之前都已經穩定下來。我不認為我們在那裡看到任何不尋常的東西。我的意思是，我們肯定會看到其中一些與我們競爭的供應商變得更具侵略性，尤其是當我們來到他們的莊園時。我的意思是我們是這裡的後起之秀。我們為他們的財產開槍，有時他們變得非常激進，以至於我們只是不做也不會做的 0 美元交易類型的交易。但除此之外，我會稱之為事物的輪廓或事物的外圍，在競爭方面，事情已經相當正常化了。

And Tal, to build on that further and talk about some of the cost initiatives we've put in place. With these lowered expectations for revenue and ARR leading into the latter part of this year, we've said from the beginning, our goal was to get to breakeven or better for fiscal '25. These are things we have to do to make that -- to enable that to happen.

還有 Tal，在此基礎上進一步討論我們已經實施的一些成本計劃。隨著今年下半年收入和 ARR 預期的降低，我們從一開始就說過，我們的目標是在 25 財年實現收支平衡或更好。這些是我們必須做的事情，以實現這一目標。

So we said we were going to sharpen our pencils. We've said that everything we were going to do was focused on achieving those bottom line results no matter what the growth was. Everything we're doing in this action and what we've been doing earlier in the year when we've made similar actions that were smaller and kind of cuts around the edges, everything has been to prime us to be ready for that longer term, and that's why we made those decisions that we've made over the past week and really set forth today.

所以我們說我們要削鉛筆。我們已經說過，無論增長如何，我們將要做的一切都集中在實現這些底線結果上。我們在這次行動中所做的一切，以及我們在今年早些時候所做的一切，當時我們採取了類似的行動，這些行動規模較小，邊緣有所削減，一切都是為了讓我們為長期做好準備，這就是我們在過去一周做出並在今天真正提出的那些決定的原因。

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

我們的下一個問題來自巴克萊銀行的 Saket Kalia。

It's Saket. Sorry, can you hear me?

是薩凱特。對不起，你能聽到我說話嗎？

Yes.

是的。

I'm so sorry. Was just hopping off and between calls a little bit. Tomer, very helpful response on the last question. Maybe just to dig into the competitive part of that response a little bit. I was wondering if you could just double-click on Microsoft specifically. I mean, a lot of times, there have been questions around just how competitive or how effective the product is, but it's obviously very easy to buy. I mean any views on just how you're faring specifically versus them competitively?

我很抱歉。只是在通話之間跳來跳去。 Tomer，對最後一個問題的回答非常有幫助。也許只是為了深入研究該響應的競爭部分。我想知道您是否可以專門雙擊 Microsoft。我的意思是，很多時候，人們對產品的競爭力或有效性存在疑問，但顯然很容易買到。我的意思是對你在競爭中的具體表現有何看法？

Sure. Look, Microsoft is a formidable competitor. I mean this is not a legacy signature-based solution. Obviously, they have a fairly expanded security portfolio. With that said, I think that 4 customers that are looking for the security capabilities and the coverage that a pure-play vendor can provide, Microsoft just doesn't cut it.

當然。看，微軟是一個強大的競爭對手。我的意思是這不是一個遺留的基於簽名的解決方案。顯然，他們擁有相當擴展的安全產品組合。話雖如此，我認為正在尋找安全功能和純供應商可以提供的覆蓋範圍的 4 個客戶，Microsoft 並沒有削減它。

So I think in certain parts of the market, you can see them a bit more palatable for security teams. But as a whole, I think that doesn't really translate into these more discerning customers. Moreover, I think that when you look at what capabilities customers are opting right now for, cloud security would be one that I mentioned, triple-digit growth for us year-over-year on cloud security. That is something where obviously Microsoft is not as, I would say, prominent in their capability set. So all in all, they're still there. We see time and time again that when people eventually do go with Microsoft, that's a CFO-type led decision. And I think that more and more people are kind of shying away from that approach.

所以我認為在市場的某些部分，你可以看到它們更適合安全團隊。但總的來說，我認為這並沒有真正轉化為這些更有眼光的客戶。此外，我認為，當您查看客戶現在選擇的功能時，雲安全將是我提到的一個，我們在雲安全方面的同比增長達到三位數。我想說，這顯然是微軟在他們的能力集中並不突出的地方。所以總而言之，他們還在那裡。我們一次又一次地看到，當人們最終選擇微軟時，這是由首席財務官主導的決定。而且我認為越來越多的人有點迴避這種方法。

The last thing I'll say there is we're targeting now between all the different offerings we have in our portfolio, about $100 billion of addressable market. Even if you look at Microsoft as one of the leading cybersecurity providers with $20 billion of revenue overall, I mean, I think you're looking at about 1/5 of that market. So a lot of it is still up and up for grabs. And we feel pretty good about our ability to compete with Microsoft, especially with security-savvy professional, especially with MSSPs that are looking for more automated, more OpEx-driven solutions. So we feel well positioned, but obviously, Microsoft, they're a formidable vendor out there.

我要說的最後一件事是，我們現在的目標是在我們投資組合中的所有不同產品之間，大約 1000 億美元的潛在市場。即使您將 Microsoft 視為領先的網絡安全提供商之一，總收入為 200 億美元，我的意思是，我認為您看到的是該市場的大約 1/5。因此，其中很多仍在爭奪中。我們對我們與 Microsoft 競爭的能力感到非常滿意，尤其是與精通安全的專業人士，尤其是與正在尋找更自動化、更多 OpEx 驅動的解決方案的 MSSP 競爭。所以我們覺得自己處於有利地位，但顯然，微軟，他們是一個強大的供應商。

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

我們的下一個問題來自 Adam Tindle 和 Raymond James 的台詞。

Tomer, I just wanted to start to understand a lot of the concentration of the negative surprise here is in the data ingestion piece. And I know it's a smaller part of the business. But if we think about that, the narrative would be that there's perhaps concerns that, that could be a leading indicator for broader challenges coming in the business with the logic saying, hey, it's easier to shut off consumption quickly, and we'll get to the contractual stuff later and ultimately start shutting that off.

Tomer，我只是想開始了解這裡的負面驚喜集中在數據攝取部分。我知道這是業務的一小部分。但如果我們考慮一下，敘述可能會讓人擔心，這可能是業務中更廣泛挑戰的領先指標，邏輯上說，嘿，快速關閉消費更容易，我們會得到稍後再處理合同內容，並最終開始將其關閉。

Just wondering, with that kind of narrative or potential bear case, how you're thinking about preventing that or what you would say to investors that would be concerned about that.

只是想知道，對於那種敘述或潛在的熊案例，你是如何考慮防止這種情況發生的，或者你會對那些擔心這種情況的投資者說些什麼。

I think these are two completely separate things. I mean, at the end of the day, if you look at our GRR, it remained stable across many quarters. We don't churn customers, customers don't leave SentinelOne. At the end of the day, even when we look at the rightsizing of licenses, which I think is what you kind of referring to, I mean, that looks very same to us. I mean these are just getting aligned to the workforce that they have. So I don't think there's anything material with what's happening with licensing for us.

我認為這是兩個完全不同的事情。我的意思是，歸根結底，如果你看看我們的 GRR，它在許多季度都保持穩定。我們不會流失客戶，客戶不會離開 SentinelOne。歸根結底，即使我們查看許可證的權利大小，我認為這就是你所指的，我的意思是，這對我們來說看起來非常相同。我的意思是這些只是與他們擁有的勞動力保持一致。所以我認為我們的許可沒有任何實質性的意義。

Consumption, in its nature, is just more volatile. And I think that for companies out there, when they're under the gun to save, obviously, something as intangible as data is something that they can start thinking twice about. That's not the same for their core security posture, and that is something that we've seen very, very stable over time.

就其本質而言，消費只是更加不穩定。而且我認為，對於那裡的公司來說，當他們在槍口下拯救時，很明顯，像數據這樣無形的東西是他們可以開始三思而後行的東西。這與他們的核心安全態勢不同，而且隨著時間的推移，我們已經看到這種態勢非常非常穩定。

Even if we imply some factor of rightsizing into it, that doesn't create that same volatility that an ad hoc consumption model would have. Obviously, these are multiyear contracts. Obviously, these are tied specifically to the amount of people you have in the organization. Even if you have some volatility in that, it is not even close to the volatility that you can have with data volumes. And that's why, once again, to kind of remove that volatility, we remove that from our ARR projections.

即使我們在其中暗示了一些適當調整的因素，也不會產生與臨時消費模型相同的波動性。顯然，這些是多年合同。顯然，這些與您在組織中擁有的人數特別相關。即使你有一些波動，它甚至不接近數據量的波動。這就是為什麼，為了消除這種波動，我們將其從 ARR 預測中移除。

Okay. And Dave, maybe just a quick follow-up. I'm sorry if I missed it, but did you size that -- the consumption business? I know Scalyr, years ago, you talked about $10 million for that piece of it. What's the size that we're looking at? And any changes looking at from a contractual basis or anything like that moving forward?

好的。戴夫，也許只是一個快速跟進。很抱歉，如果我錯過了它，但你是否確定了消費業務的規模？我知道 Scalyr，幾年前，你談到了 1000 萬美元。我們正在查看的尺寸是多少？從合同的基礎上看有什麼變化或類似的東西向前發展嗎？

It's single-digit percentage of total ARR so -- or single-digit percentage of total ARR. We shouldn't expect these fluctuations going forward as we've moved to contractual. What we're -- everything we're doing is anchoring around having this be as conservative a number and removing the fluctuations either side going forward.

它是總 ARR 的個位數百分比 - 或總 ARR 的個位數百分比。隨著我們轉向合同，我們不應該期望這些波動會繼續下去。我們是什麼——我們所做的一切都是圍繞著讓這個數字保持保守並消除未來任何一方的波動。

The next question comes from the line of Patrick Colville with Scotiabank.

下一個問題來自豐業銀行的 Patrick Colville。

This is Lory again on for Patrick. Can you guys all hear me?

這是帕特里克的洛里。你們都能聽到我說話嗎？

Yes.

是的。

So I just want to ask the cloud security product. Last quarter, you had a very good traction, you mentioned. And how's this quarter? And can you share with us any update on partnership with Wiz?

所以我只想問問云安全產品。你提到，上個季度，你有很好的牽引力。這個季度怎麼樣？您能否與我們分享與 Wiz 合作的最新進展？

Of course. It's been great growth for us on the cloud side. And this quarter, once again, remain that same proportion of contribution for ACV, which represents, again, triple-digit growth year-over-year for cloud security. The Wiz partnership, I mean, we see a ton of pipeline movement from existing customers and also from new shared opportunities. All in all, it's early days with that partnership. But we've tightened up the technical integration part of it. We're kind of after phase 1. And all in all, I mean it shows great signs of progression.

當然。這對我們在雲方面的增長來說是巨大的。本季度，ACV 的貢獻比例再次保持不變，這再次代表云安全同比增長三位數。 Wiz 合作夥伴關係，我的意思是，我們看到來自現有客戶以及新的共享機會的大量管道移動。總而言之，這種夥伴關係還處於早期階段。但是我們加強了它的技術集成部分。我們在第 1 階段之後。總而言之，我的意思是它顯示出很好的進展跡象。

Generally speaking, we're not dependent on that partnership whatsoever to continue to grow our cloud business, and we're generating more and more cloud pipeline. With every quarter that passes, we have a dedicated campaign for cloud security. We have dedicated sales force for cloud security. So we're also maturing our sales force to kind of expand and evolve from an endpoint company to a platform company in cloud is obviously the tip of the spear for us.

一般來說，我們不依賴這種夥伴關係來繼續發展我們的雲業務，而且我們正在生成越來越多的雲管道。每過一個季度，我們都會開展專門的雲安全活動。我們有專門的雲安全銷售團隊。因此，我們也在完善我們的銷售隊伍，從端點公司擴展和發展到雲中的平台公司，這顯然是我們的矛尖。

The next question comes from Hamza Fodderwala with Morgan Stanley.

下一個問題來自摩根士丹利的 Hamza Fodderwala。

Dave, just a quick one for you. You talked about the $40 million in cost savings from the 5% workforce reduction. Is that reflected in the full year guidance? And would you be willing to sort of reaffirm the expectation for free cash flow breakeven exiting this year?

戴夫，給你一個快速的。您談到通過裁員 5% 節省了 4000 萬美元的成本。這是否反映在全年指導中？您是否願意重申對今年自由現金流盈虧平衡的預期？

So we're expecting to deliver $40 million cost savings relative to our prior plan. This ensures that we remain on track to achieve our full year EBIT guidance that we provided earlier and then reiterated again today. Specifically, from the [riff], it's about $15 million in annualized savings. I think about $5 million -- say, $3 million to $5 million in severance costs. There's inventory write-offs. We're also looking at facilities and other things that we will have that will continue the savings going forward. That's all contemplated in this guidance.

因此，與我們之前的計劃相比，我們預計可以節省 4000 萬美元的成本。這確保我們能夠繼續實現我們早些時候提供並在今天再次重申的全年息稅前利潤指導。具體來說，從 [riff] 來看，每年可節省約 1500 萬美元。我認為大約有 500 萬美元——比如說，300 萬到 500 萬美元的遣散費。有庫存註銷。我們還在研究我們將擁有的設施和其他東西，這些東西將繼續節省資金。這一切都在本指南中考慮到了。

And then in terms of free cash flow, I think in light of the reduced top line expectations for the year, I think the target for this year, where we said we could potentially hit it in the latter part of this year, say, Q4, I think that's probably better off thinking of that as a fiscal '25 activity just based on the lower top line.

然後在自由現金流方面，我認為鑑於今年的頂線預期降低，我認為今年的目標，我們說我們可能會在今年下半年達到目標，比如說，第四季度，我認為最好將其視為僅基於較低收入的 25 財年活動。

The next question comes from the line of Joshua Tilton, Wolfe Research.

下一個問題來自 Wolfe Research 的 Joshua Tilton。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

So a lot of the feedback that I'm getting from investors is just that it seems like you guys came across pretty bullish during the quarter. And clearly, the tone is changing here on this call. So I apologize if I missed this, but I'm just trying to understand when exactly did you notice the slowdown in the business really pick up? And maybe even like when did you guys notice the issues with the historical ARR disclosure?

因此，我從投資者那裡得到的很多反饋都是，你們在本季度似乎非常看好。很明顯，這次電話會議的基調正在發生變化。因此，如果我錯過了這一點，我深表歉意，但我只是想了解您到底是什麼時候注意到業務放緩真正開始的？甚至你們什麼時候注意到歷史 ARR 披露的問題？

I think generally, when we look at it, we see kind of the end of the quarter is the point where we started noticing more and more pronounced consumption changing. To us, that was a point where couple that with a couple of deals slips and suddenly, you're looking at a very different outcome for the quarter. So I think, generally, if you just look at our new and upsell target for the quarter, it was pretty much in line with what we expected.

我認為總的來說，當我們觀察它時，我們會看到本季度末是我們開始注意到越來越明顯的消費變化的時間點。對我們來說，這是一個點，再加上幾筆交易的下滑，突然之間，你看到的是本季度截然不同的結果。所以我認為，總的來說，如果你只看一下我們本季度的新目標和追加銷售目標，它與我們的預期非常一致。

But when you couple that with that downsizing of consumption, then you just arrive at a very, very different result. And to us, I mean, once again, win rates sustained, revenue still growing about 70%. I think if you take out that consumption element, I mean, things would have looked very, very different. So that, I think, is kind of the reason where parts of the business here are really humming. And suddenly, we saw this, which, frankly, we were surprised by and we were surprised by the magnitude, and that's where we are today.

但是，當你將其與消費縮減結合起來時，你就會得出一個非常非常不同的結果。對我們來說，我的意思是，贏率再次持續，收入仍增長約 70%。我認為如果你去掉消費因素，我的意思是，事情看起來會非常非常不同。所以，我認為，這就是這裡的部分業務真正繁榮的原因。突然間，我們看到了這一點，坦率地說，我們對此感到驚訝，我們對它的規模感到驚訝，這就是我們今天的處境。

And in terms of evaluating the ARR, I guess, rebasing restatement. When we really were diving into that, it was because I was investigating why revenue was coming up as a shortfall. So it started out, and we did a deep dive into revenue. And obviously, you would assume that about 1/4 of ARR goes into revenue absent some churn, absent some slower deployments, things like that, that are typical.

在評估 ARR 方面，我想是重新調整基準。當我們真正深入研究這個問題時，是因為我在調查為什麼收入會出現短缺。所以它開始了，我們深入研究了收入。顯然，你會假設大約 1/4 的 ARR 進入收入，沒有一些流失，沒有一些較慢的部署，諸如此類，這是典型的。

But I still, obviously, based on our Q1 results, had a shortfall. So to understand that, we did a deeper dive by scrubbing everything in ARR, all 10,700 customers, to evaluate why that was. And that's where we noticed that we essentially had an uplift that we expected because of renewals that had not been essentially moved out of the system because they were treated as upsell.

但顯然，根據我們第一季度的結果，我仍然存在不足。因此，為了了解這一點，我們通過清理 ARR 中的所有內容（所有 10,700 名客戶）進行了更深入的研究，以評估原因。這就是我們注意到的地方，我們基本上有一個我們預期的提升，因為續訂並沒有從系統中移出，因為它們被視為追加銷售。

So I was essentially stacking an upsell on top of an existing renewal without removing the previous renewal. And this was an error in our CRM. We fixed it, but that's where that came up, and that was obviously later on in the quarter and actually post quarter end when we really had fully identified it and been able to scrub all the customers.

所以我基本上是在現有續訂的基礎上疊加銷售，而不刪除之前的續訂。這是我們 CRM 中的一個錯誤。我們修復了它，但這就是出現的地方，這顯然是在本季度晚些時候，實際上是在季度末之後，當我們真正完全確定它並能夠清除所有客戶時。

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

下一個問題來自 Gray Powell 與 BTIG 的對話。

Great. And I just want to make sure, can you hear me okay?

偉大的。我只是想確定一下，你能聽到我說話嗎？

Yes.

是的。

All right, great. This might be a tough one, but I feel like I do have to ask it. And to some extent, you may have already answered it, but I'm just going to give it a shot anyway. So I guess like how should we think about -- like what was the main driver of just you missing the Q1 revenue guidance at $137 million? I mean you guided on March 14 and revenue is mostly ratable, and I know we've talked about the consumption components, but I just want to make sure that I fully understand that dynamic. And then can you just reiterate like why this won't happen again?

好吧，太好了。這可能很難，但我覺得我必須問一下。在某種程度上，您可能已經回答了這個問題，但我還是要試一試。所以我想我們應該如何考慮 - 比如你錯過第一季度 1.37 億美元收入指導的主要驅動因素是什麼？我的意思是你在 3 月 14 日進行了指導，收入大部分是可衡量的，我知道我們已經討論了消費部分，但我只是想確保我完全理解這種動態。然後你能重申一下為什麼這不會再次發生嗎？

I'll try and iterate for Dave because it's going to be the third time. But basically, the ARR adjustment that we've done was realizing that both we've had consumption is kind of an ad hoc element to our ARR, which basically drives up ARR as consumption goes up, but it drives down ARR significantly when consumption is not continuing to grow. In the past couple of years, consumption for us was always on the up and up, and it created that overstatement of ARR, so to speak, which created an expectation for revenue for us internally as well.

我會嘗試為戴夫迭代，因為這將是第三次。但基本上，我們所做的 ARR 調整是意識到我們的消費是我們 ARR 的一種臨時元素，它基本上隨著消費的增加而提高 ARR，但當消費減少時它會顯著降低 ARR不繼續增長。在過去的幾年裡，我們的消費一直在上升，它造成了 ARR 的高估，可以說，這也為我們內部創造了對收入的預期。

So when the quarter ended, the dust settled, when he started kind of figuring out, hey, why aren't we seeing that revenue, a big part of it was the ARR was reflecting consumption that was now going down. And that impacted what we should have seen in revenue. And couple that with, again, some CRM inaccuracies that Dave mentioned as well, and that was mainly the reason for the revenue miss.

因此，當季度結束時，塵埃落定，當他開始弄清楚，嘿，為什麼我們沒有看到收入，其中很大一部分是 ARR 反映了現在正在下降的消費。這影響了我們本應看到的收入。再加上 Dave 也提到的一些 CRM 不准確，這也是收入損失的主要原因。

Outside of that, the ARR for the quarter was roughly in line with what we expected, minus again that consumption downsizing. So all in all, a lot of it was cleaned and will never happen again, given that rebasing of ARR and the removal of consumption from the base.

除此之外，本季度的 ARR 大致符合我們的預期，再次減去消費縮減。所以總而言之，考慮到 ARR 的重新定基和從基數中移除消耗，很多事情都被清理了並且永遠不會再發生。

The next question comes from the line of Brad Zelnick with Deutsche Bank.

下一個問題來自德意志銀行的 Brad Zelnick。

Great. Can you guys hear me?

偉大的。你們能聽到我說話嗎？

We can.

我們可以。

Awesome. The ARR statement is very unfortunate. The environment is very tough. I think you guys have said it yourselves, and you're being asked a lot of tough questions. So I mean, as long as we're in this forum, I'm going to add to those, which I guess, for you, Tomer, most appropriately, what is your strategic end game?

驚人的。 ARR聲明非常不幸。環境非常艱苦。我想你們自己也說過，你們被問到很多尖銳的問題。所以我的意思是，只要我們在這個論壇上，我就會補充那些，我想，對你來說，Tomer，最合適的是，你的戰略最終遊戲是什麼？

You're facing an increasingly hostile macro and competitive end market. You're still burning a good amount of cash. I mean, it just seems like, in a recession, you're in a bit of a tough spot. And you, yourself, I think, said in many different ways that conditions are worsening. So when you think about what you envision for the business years ago, coming to the public market versus where you are today and what you can see a few years out on the horizon, how do you think about the different alternatives out there?

您正面臨一個日益敵對的宏觀和競爭激烈的終端市場。你還在燒大量的現金。我的意思是，在經濟衰退中，你似乎處境艱難。我認為，您自己以多種不同方式表示情況正在惡化。因此，當您考慮多年前對企業的設想時，進入公開市場與今天的情況以及幾年後您可以看到的情況時，您如何看待那裡的不同選擇？

Sure. Look, it's a long game. None of us expected to IPO the company and go home. I mean we're here to stay. It's a $100 billion TAM. We've got the most cutting-edge technology in the market. And we're improving our margins to the point that next year, we hope to be profitable. So all in all, I don't see anybody else in the market making such incredible improvements on the margin front. Our progression, I think, have been fairly impressive.

當然。看，這是一場漫長的比賽。我們誰都沒有想到公司上市後就回家了。我的意思是我們會留下來。這是一個 1000 億美元的 TAM。我們擁有市場上最尖端的技術。我們正在提高利潤率，希望明年能夠盈利。所以總而言之，我認為市場上沒有其他人在利潤率方面做出如此令人難以置信的改進。我認為，我們的進步相當令人印象深刻。

Obviously, this is not the best market to operate in for a growth company. And I think what you're seeing is our real-time adjustment for a full on growth -- from a full on growth company and into a more balanced approach, a disciplined growth company. We want to become more efficient. What you're seeing us do in the public eye is making the company more efficient, and we're really setting the stage, I think, for efficient growth.

顯然，這不是成長型公司經營的最佳市場。我認為你所看到的是我們對全面增長的實時調整——從一家全面增長的公司轉變為一種更加平衡的方法，一家紀律嚴明的增長公司。我們想變得更有效率。你在公眾眼中看到我們所做的是讓公司更有效率，我認為我們真的在為高效增長奠定基礎。

This is not the economy to put the pedal to the metal and run fast. This is where we just want to be more efficient, we want to make sure we're doing right by our customers. That's our North Star. That's why we're here. We're going to continue to build our platform. We're adding customers in a pretty rapid clip even in this environment.

踩下踏板并快速奔跑並不經濟。這就是我們只想提高效率的地方，我們想確保我們的客戶做得對。那是我們的北極星。這就是我們來這裡的原因。我們將繼續構建我們的平台。即使在這種環境下，我們也能以相當快的速度增加客戶。

So all in all, I mean, can't say it's a lot of fun right now, but at the end of the day, we keep on growing. We've got very promising technology. We're a leader in AI. AI in itself is going to disrupt the cybersecurity infrastructure landscape significantly in the next couple of years. All of that translates to an opportunity. And hopefully, our shareholders will see that, too.

所以總而言之，我的意思是，現在不能說它很有趣，但歸根結底，我們會繼續成長。我們擁有非常有前途的技術。我們是人工智能領域的領導者。人工智能本身將在未來幾年內顯著破壞網絡安全基礎設施格局。所有這一切都轉化為一個機會。希望我們的股東也能看到這一點。

I think if you look at us on a 3- to 5-year horizon, like let's play this out. If we're a profitable company, still growing at reasonable growth rates, this is a far more valuable company than it is today. And we're not relaxing on technology. We're continuing to advance that. We've been a technological leader, and we're going to continue to do that. So we look at this as it's still early innings in cybersecurity for us. We have a long runway to execute to execute better and to grow this company to be a more sizable company than we are today.

我想如果你在 3 到 5 年的時間裡看我們，就像讓我們一起玩吧。如果我們是一家盈利的公司，仍然以合理的增長率增長，那麼這家公司的價值將遠遠超過今天。我們並沒有放鬆技術。我們正在繼續推進這一點。我們一直是技術領導者，我們將繼續這樣做。因此，我們認為這對我們來說仍處於網絡安全的早期階段。我們有很長的路要執行，以更好地執行並將這家公司發展成為比我們今天規模更大的公司。

Our final question comes from the line of Ray McDonough with Guggenheim.

我們的最後一個問題來自 Ray McDonough 與 Guggenheim 的對話。

Can you hear me okay?

你能聽到我說話嗎？

Yes, we can.

我們可以。

Great. Maybe for you, Dave, and just to finish off. You guys mentioned a couple of times that customers are rightsizing on renewals, but also mentioned that gross retention rates remained stable. And last quarter, I actually think that you mentioned they ticked up. So just to be clear, dollar gross retention remained stable despite those comments.

偉大的。也許對你來說，戴夫，只是為了結束。你們多次提到客戶正在對續訂進行調整，但也提到總保留率保持穩定。上個季度，我實際上認為你提到過他們上漲了。因此，需要明確的是，儘管有這些評論，美元總保留率仍保持穩定。

And I guess, on the flip side of that, I'm trying to decipher the commentary that new and upsell was also in line with expectations and that renewals were stable. Is consumption -- that consumption business that's kind of the headwind here or a lot of the headwind, is that not accounted for in the gross renewal rate? How should we think about where the headwinds, I guess, showed up the most between renewals, expansion and new logos?

而且我想，另一方面，我試圖破譯新的和追加銷售也符合預期並且續訂穩定的評論。消費 - 消費業務是這裡的逆風還是很多逆風，這沒有計入總更新率？我想，我們應該如何考慮在更新、擴展和新標識之間出現最多逆風的地方？

If you think about it on a pure NRR rate, we've gone from the 130s into approximately north of 125. So we're still seeing our customers continue to increase their spend with us year-over-year. We expect that to persist. We're expecting 120-plus percent kind of as a floor for us, and we see that for the foreseeable future.

如果您以純 NRR 率來考慮，我們已經從 130 上升到大約 125 以北。因此，我們仍然看到我們的客戶繼續逐年增加他們在我們這裡的支出。我們希望這種情況能夠持續下去。我們預計 120% 以上是我們的底線，我們在可預見的未來看到了這一點。

In terms of how this affects GRR, our GRR has essentially been flat for past 8 quarters or so. I don't think it's deviated more than 1 point. So one of the things that Tomer had talked about is when customers use us, they don't tend to leave us. What we -- in terms of the rightsizing of deals. Historically, we've seen customers that may have signed multiyear deals, and they would have stepped up employee counts for endpoint and say, hey, I'm going to buy this much minimum and I'll step up for a better price for the following year and a better price for the following year based on volume.

就這如何影響 GRR 而言，我們的 GRR 在過去 8 個季度左右基本持平。我認為它的偏差不會超過 1 點。因此，Tomer 談到的一件事是，當客戶使用我們時，他們不會離開我們。我們——就交易的合理規模而言。從歷史上看，我們已經看到客戶可能已經簽署了多年協議，他們會增加端點的員工人數並說，嘿，我要買這麼多的最低價，我會加緊為更好的價格下一年，並根據數量為下一年提供更好的價格。

We're seeing customers now just flatten that out based on the employee count now and then they come back to us if -- at renewal, if they're purchasing a more sizable amount. So we're just not seeing that forward projections from our customers that we were historically seeing.

我們看到客戶現在只是根據現在的員工人數來平息這種情況，然後如果 - 在續訂時，如果他們購買的數量更大，他們就會回來找我們。因此，我們只是沒有看到我們過去看到的客戶的前瞻性預測。

Maybe just something to add to that and maybe that can help you kind of piece it all together. I mean, GRR is stable, and it's what we call planned GRR. And I think the one dynamic that we did see is that, traditionally, we didn't even get to the planned GRR. GRR was even lower than that. And that is something that we started almost taking for granted. And I think in this environment, that is something that you can't take for granted anymore. But once again, I mean, we still are one of the industry best in GRR, definitely in NRR, and we expect that to continue.

也許只是添加一些東西，也許可以幫助您將它們拼湊在一起。我的意思是，GRR 是穩定的，這就是我們所說的計劃 GRR。我認為我們確實看到的一種動態是，傳統上，我們甚至沒有達到計劃的 GRR。 GRR 甚至低於此。這是我們開始幾乎認為理所當然的事情。我認為在這種環境下，你不能再認為這是理所當然的事情了。但再一次，我的意思是，我們仍然是 GRR 中最好的行業之一，絕對是 NRR 中的佼佼者，我們希望這種情況繼續下去。

That concludes today's Q&A session. I would now like to pass the conference back over to Tomer for closing comments.

今天的問答環節到此結束。我現在想將會議轉回給 Tomer 以供結束評論。

Thank you, everybody, for joining. Appreciate your time.

謝謝大家的加入。珍惜你的時間。

That concludes today's call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開線路。