SolarWinds Corp (SWI) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Chris and I will be your conference operator today. At this time. I would like to welcome everyone to Solarwinds third quarter, 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw that question again, press star one. Thank you. I will now like to turn the conference over to Tim Karaca , Vice President of Finance. You may begin.

女士們、先生們，感謝你們的支持。我叫克里斯，今天我將擔任您的會議主持人。此時。歡迎大家參加 Solarwinds 2024 年第三季財報電話會議。所有線路均已靜音以防止任何背景噪音。演講者發言後，將有問答環節。如果您想在此期間提問，只需在電話鍵盤上按下星號，然後按數字 1 即可。如果您想再次撤回該問題，請按星號 1。謝謝。現在，我想將會議交給財務副總裁 Tim Karaca。你可以開始了。

Thank you. Good morning, everyone and welcome to the Solar Winds third quarter, 2024 earnings call Sudhakar Ramakrishna, our President and CEO and Lewis Black. Our CFO are with me today following our prepared remarks. We'll have a question and answer session.

謝謝。大家早安，歡迎參加 Solar Winds 2024 年第三季財報電話會議，我們的總裁兼執行長 Sudhakar Ramakrishna 和 Lewis Black。我們的財務長今天與我一起發表了準備好的演講。我們將舉行問答環節。

This call is being simultaneously webcast on our investor relations website at investors dot tolerance dotcom.

本次電話會議將在我們的投資人關係網站 investors dot tolerance dotcom 上同步進行網路直播。

You can also find our press release and the summer slide deck which is intended to supplement our prepared remarks during today's call.

您還可以找到我們的新聞稿和夏季幻燈片，旨在補充我們在今天電話會議上的準備演講。

Please remember that certain statements made during this call are forward-looking statements including those concerning our financial outlook, our market opportunities, our expectations regarding customer retention, our continued evolution to subscription first mentality, our expectations regarding our partner ecosystem, the CC enforcement action, the impact of the global economic and geopolitical environment on our business and our gross level of debt.

請記住，本次電話會議中所做的某些陳述是前瞻性陳述，包括有關我們的財務前景、我們的市場機會、我們對客戶保留的期望、我們對訂閱優先心態的持續演變、我們對合作夥伴生態系統的期望、CC 執法行動、全球經濟和地緣政治環境對我們業務的影響以及我們的總債務水平。

These statements are based on currently available information and assumptions and we undertake no duty to update this information except as required by law.

這些聲明是基於目前可用的資訊和假設，除非法律要求，否則我們不承擔更新這些資訊的義務。

These statements are subject to a number of risks and uncertainties including the numerous risks and uncertainties highlighted in today's earnings release. And our filings with the SEC copies are available from the CC on our investor relations website.

這些聲明受到許多風險和不確定性的影響，包括今天的收益報告中強調的眾多風險和不確定性。我們向美國證券交易委員會 (SEC) 提交的文件副本可從我們投資者關係網站上的 CC 中取得。

We will discuss various non-GAAP financial measures on today's call. Almost other specified when we refer to financial measures. We'll be referring to non-GAAP financial measures.

我們將在今天的電話會議上討論各種非公認會計準則財務指標。當我們提到財務指標時，幾乎其他的都明確規定了。我們將參考非公認會計準則財務指標。

A reconciliation of the differences between GAAP and non-GAAP financial measures and the definition of other financial metrics discussed on today's call are available in our earnings press release and summary slide deck on the investor relations page of our website.

有關 GAAP 和非 GAAP 財務指標之間的差異的調整以及今天電話會議上討論的其他財務指標的定義，請參閱我們網站投資者關係頁面上的收益新聞稿和摘要幻燈片。

Finally, we note that the financial results discussed on today's call and in our earnings release are preliminary and pending final review by us and our external auditors and will only be final once we file our quarterly report on form. Thank you with that. I will now turn the call over to Sudhakar.

最後，我們注意到，今天的電話會議和收益報告中討論的財務結果是初步的，有待我們和我們的外部審計師進行最終審查，並且只有在我們提交季度報告後才會成為最終結果。謝謝你。現在我將把電話轉給蘇達卡 (Sudhakar)。

Thank you, Tim and good morning, everyone.

謝謝你，提姆，大家早安。

As always, I'd like to thank our employees, customers, partners and shareholders for their ongoing commitment to Sullivan.

像往常一樣，我要感謝我們的員工、客戶、合作夥伴和股東對 Sullivan 的持續承諾。

I'm pleased to report that we delivered another strong quarter. Once again exceeding our guidance across our key metrics.

我很高興地報告，我們又度過了一個強勁的季度。我們的關鍵指標再次超出了我們的預期。

Our results testify to our team's commitment to customer success, the breadth and depth of our offerings and the trust that customers continue to place in us. I'm pleased with the execution of our teams which resulted in strong top line and adjusted ebita growth.

我們的業績證明了我們團隊對客戶成功的承諾、我們提供的產品的廣度和深度以及客戶對我們的持續信任。我對我們團隊的執行力感到滿意，這帶來了強勁的營收和調整後息稅前利潤成長。

Now turning to the business highlights from this quarter. First, we again delivered strong subscription revenue and AR R growth highlighting the sustained momentum of our subscription first strategy.

現在來談談本季的業務亮點。首先，我們再次實現了強勁的訂閱收入和 AR R 成長，突顯了我們訂閱優先策略的持續勢頭。

Second, the increased adoption of our observability solution continues to drive revenue growth on October 2nd, we announced significant updates to this part of our portfolio more on this. In just a second.

其次，我們的可觀察性解決方案的廣泛採用繼續推動收入成長，10 月 2 日，我們宣布了對我們產品組合這一部分的重要更新。就一秒鐘。

Third, we continue to experience a good balance of deal sizes across our regions and market segments. We believe our low customer concentration and the criticality of our solutions to customer operations continue to underpin our performance. Fourth, we continue to extend our solutions portfolio with the goal of delivering the best time to value and time to detect and resolve issues for our customers.

第三，我們在各個地區和各個細分市場之間的交易規模持續保持良好的平衡。我們相信，低客戶集中度和解決方案對客戶營運的關鍵性持續支撐我們的績效。第四，我們將繼續擴展我們的解決方案組合，目標是為客戶提供最佳的價值實現時間以及檢測和解決問題的時間。

I will now touch on some Q3 financial highlights before turning the call over to Lewis for more color on the quarter and our financial outlook for the balance of the year in Q3 2024 we delivered total revenue of 200 million representing 6% year over year growth above the high end of our guidance rate.

現在，我將介紹第三季度的一些財務亮點，然後將電話轉給劉易斯，以了解有關本季度的更多細節以及我們對 2024 年第三季度剩餘時間的財務展望，我們實現了 2 億美元的總收入，同比增長 6%，高於我們指導率的高端。

We continue to execute our subscription first strategy and delivered year over year subscription revenue growth of 30% and subscription ARR growth of 36% in the third quarter.

我們持續執行訂閱優先策略，第三季訂閱營收年增 30%，訂閱 ARR 成長 36%。

Our third quarter in quarter, maintenance renewal rate was 96% and our trailing 12 month maintenance renewal rate was 97% flat from 97% last quarter and up from 95% in Q3 of last year, our customer retention metrics remained robust. Highlighting the compelling value proposition of our solution total. ARR in the third quarter was $724 million. An increase of 8% year over year we delivered adjusted ebida of $96 million representing 13% year over year growth with 48% margin.

我們第三季的維護續約率為 96%，過去 12 個月的維護續約率為 97%，與上一季的 97% 持平，高於去年第三季的 95%，我們的客戶保留指標依然強勁。突顯我們解決方案整體的引人注目的價值主張。第三季的ARR為7.24億美元。與去年同期相比，我們的調整後息稅折舊攤銷前利潤成長了 8%，達到 9,600 萬美元，年增 13%，利潤率為 48%。

We continue to be a rule of 50 company turning to our product portfolio. As I've previously discussed, our purpose of enriching the lives of our customers is central to all we do reducing complexity, lowering costs and increasing our customers' productivity remain key motivating factors for our portfolio evolution.

我們將繼續遵循 50 家公司專注於我們的產品組合的規則。正如我之前所討論的，豐富客戶的生活是我們所有工作的核心，降低複雜性、降低成本和提高客戶的生產力仍然是我們產品組合發展的關鍵激勵因素。

I believe a diverse array of solutions across observability, database performance monitoring and service management. Deliver unmatched time to value time to detect and time to remediate issues.

我相信在可觀察性、資料庫效能監控和服務管理方面有各種各樣的解決方案。提供無與倫比的時間價值、檢測時間和補救問題的時間。

We serve customers across on premises, cloud and hybrid environments, empowering them to make the best decisions for their organizations while adapting to their evolving needs.

我們為本地、雲端和混合環境中的客戶提供服務，幫助他們在適應不斷變化的需求的同時為其組織做出最佳決策。

Customers facing higher costs and complexities from multiple vendors continue to use our platform to consolidate their tools, lower their total cost of ownership and increase visibility across their hybrid environment.

面臨來自多個供應商的更高成本和複雜性的客戶繼續使用我們的平台來整合他們的工具，降低總體擁有成本並提高其混合環境的可見性。

We're encouraged by the traction here highlighted by key wins in Q3 with both public and private sector organizations turning to Sullivan's observability.

我們對這一進展感到鼓舞，第三季的關鍵勝利突顯了公共和私營部門組織都開始關注 Sullivan 的可觀察性。

Most organizations have assets both on premises and in the cloud.

大多數組織在本地端和雲端都擁有資產。

The complexity of these hybrid and distributed environments leads to visibility challenges resulting from a hybrid observability. GAAP.

這些混合和分散式環境的複雜性導致了混合可觀察性所帶來的可見性挑戰。公認會計準則。

This GAAP can cause degraded technology performance, prolonged issues, identification and resolution times and even damage customer experience from missed slas these can further cause declining customer satisfaction, lost business and reduced tech ROI impacting a company's bottom line and future growth. Of course, customers try to counter the hybrid observability GAAP with many tools leading to tools straw often they are forced to prioritize either on premises or cloud workloads due to the limitations of other software vendor solutions.

這種 GAAP 可能會導致技術性能下降、問題延長、識別和解決時間，甚至因錯過 sla 而損害客戶體驗，這些可能進一步導致客戶滿意度下降、業務損失和技術投資回報率降低，影響公司的底線和未來成長。當然，客戶會嘗試使用多種工具來應對混合可觀測性 GAAP，但最終卻發現這些工具行不通，由於其他軟體供應商解決方案的限制，他們常常被迫優先考慮本地或雲端工作負載。

However, we designed our observability solution to close the hybrid observability GAAP and give our customers unified visibility across on premises and cloud environments.

然而，我們設計了可觀察性解決方案來關閉混合可觀察性 GAAP，並為我們的客戶提供跨本地和雲端環境的統一可見性。

It is gratifying to see growing validation in our approach. As organizations increasingly turn to our platform to consolidate their tools, lower TCO and increase visibility across their environment.

我們很高興地看到我們的方法得到越來越多的認可。隨著企業越來越多地轉向我們的平台來整合他們的工具、降低總體擁有成本 (TCO) 並提高整個環境的可見性。

Earlier this month, we announced that our observability offerings are now collectively known as solar winds, observability a hybrid offering previously known as hybrid cloud observability and our cloud native SAS offering previously known as Sullivan's observability will now be known as Sullivan's observability self hosted and Sullivan's observability SAS respectively.

本月初，我們宣布我們的可觀測性產品現在統稱為太陽風，可觀測性混合產品（以前稱為混合雲可觀測性）和我們的雲原生 SAS 產品（以前稱為 Sullivan 可觀測性）現在分別稱為 Sullivan 可觀測性自託管和 Sullivan 可觀測性 SAS。

This change which we discussed at our Sullivan's Day on to the second is tightly aligned with how we market our comprehensive observability solutions to our end customers.

我們在第二天的沙利文日上討論的這項變更與我們向最終客戶推銷全面可觀察性解決方案的方式緊密相關。

We continue to extend our versatile observability solutions in the market with key capabilities including improving system scalability to help customers reduce their footprint by as much as 50% thereby reducing their total cost of ownership.

我們將繼續在市場上擴展我們的多功能可觀察性解決方案，其關鍵功能包括提高系統可擴展性，幫助客戶將佔用空間減少多達 50%，從而降低他們的整體擁有成本。

Expanded support for Azure and Aws workloads, Svan extensions, wireless access points and storage arrays. We believe these enhancements further improve our competitiveness in landing new customers as we help customers more readily eliminate tools from.

擴充對 Azure 和 Aws 工作負載、Svan 擴充、無線存取點和儲存陣列的支援。我們相信，這些增強功能將進一步提高我們吸引新客戶的競爭力，因為我們可以幫助客戶更輕鬆地消除工具。

We evolved our AI ops progress around anomaly based alerts to reduce alert fatigue and to improve incident management.

我們圍繞著基於異常的警報改進了我們的人工智慧操作進程，以減少警報疲勞並改善事件管理。

These enhancements can help customers reduce their time to detect and time to resolve issues.

這些增強功能可以幫助客戶減少偵測和解決問題的時間。

Our observability database performance and service management solutions work together to deliver a great value to our customers. We are excited by the energy of our team, bringing and sharing these improvements with our customers and we are confident in the solutions we offer to the visibility problems. Our customers have told they face turning to Solomon service management. We are leveraging generative AI to extend our capabilities, allowing customers to auto generate runbooks further accelerating remediation capabilities and time savings.

我們的可觀察性資料庫效能和服務管理解決方案共同為我們的客戶提供巨大的價值。我們為團隊的活力而感到興奮，與客戶一起帶來和分享這些改進，我們對我們提供的解決可見性問題的解決方案充滿信心。我們的客戶表示他們正面臨轉向所羅門服務管理的挑戰。我們正在利用生成性人工智慧來擴展我們的能力，讓客戶自動產生運行手冊，從而進一步加速補救能力並節省時間。

We also continued our expansion journey with our enterprise service management platform enabling our customers to provide help desk solutions across any department in the organization.

我們也透過企業服務管理平台繼續我們的擴張之旅，使我們的客戶能夠為組織的任何部門提供幫助台解決方案。

So even its customers who enabled our gen A I features have achieved meaningful year over year improvement. In the meantime, to resolve issues, we are seeing greater adoption of these gen A I capabilities which are part of our service desk solutions premium package and result in higher average sales prices.

因此，即使是啟用了我們的 A I 代功能的客戶也實現了逐年有意義的改進。同時，為了解決問題，我們看到這些人工智慧功能的採用越來越廣泛，它們是我們服務台解決方案高級套件的一部分，並帶來了更高的平均銷售價格。

Now turning to our database performance management solution, we continue to simplify the packaging and pricing of our database solutions.

現在談到我們的資料庫效能管理解決方案，我們繼續簡化資料庫解決方案的包裝和定價。

Now customers have the freedom and flexibility to choose the right solution for their environment.

現在客戶可以自由靈活地選擇適合其環境的解決方案。

Analogous to the changes we implemented for our observability solutions over the last two plus years, we believe this will further simplify the customer experience resulting in greater adoption and higher ASP.

類似於我們過去兩年多來針對可觀察性解決方案實施的變革，我們相信這將進一步簡化客戶體驗，從而提高採用率並提高 ASP。

As always, we remain dedicated to helping customers reduce costs while enabling them to accelerate their business transformation.

一如既往，我們致力於幫助客戶降低成本，同時加速其業務轉型。

We believe this will give us further opportunity to expand our footprint in customers' environments and help them consolidate their tools in closing. I'm proud of the progress we have made against the priorities we provided at the start of the year.

我們相信這將為我們提供進一步的機會來擴大我們在客戶環境中的影響力，並幫助他們整合他們的工具。我為我們在年初確定的優先事項上所取得的進展感到自豪。

First, we are extending our soliance platform and delivering effective solutions built to help customers achieve hybrid visibility and manage their hybrid and multi cloud environments.

首先，我們正在擴展我們的 Soliance 平台並提供有效的解決方案，旨在幫助客戶實現混合可視性並管理他們的混合和多雲環境。

The recent announcements on Sullivan's observability represent significant milestone achievements against this priority.

關於 Sullivan 可觀測性的最新公告代表了在這項優先事項上取得的重要里程碑式成就。

Second, investing selectively while continuing to exercise expense discipline and seeking expanded profitability as evidenced by portfolio evolution, topline growth and bottom line profitability.

第二，選擇性地進行投資，同時繼續嚴格控制費用並尋求擴大獲利能力，這可以透過投資組合的演變、營業收入成長和利潤獲利能力來證明。

Third, focusing on subscription and total ARR growth, customer success and retention, growing profitability and creating more value for our shareholders.

第三，專注於訂閱和總ARR成長、客戶成功和保留、提高獲利能力並為股東創造更多價值。

We aim to continue to deliver compelling value to our customers. The relevance of our solutions and the commitment of our team gives me high confidence in our ability to deliver a strong Q4. With that, I will now turn it over to Lewis to expand on our financial performance and provide our fourth quarter a full year 2024 outlook Lewis.

我們的目標是繼續為客戶提供極具吸引力的價值。我們的解決方案的相關性和我們團隊的承諾使我對我們實現強勁第四季度業績的能力充滿信心。說完這些，我現在將把話題交給劉易斯，讓他詳細介紹我們的財務業績，並為我們的第四季度提供 2024 年全年展望。

Thank you, Sudhakar. I'm thrilled to be here with all of you today. On my first solar winds earnings call, we delivered a strong third quarter and continued the momentum we built in the first half of the year like Saker, I am confident in our ability to achieve our business and financial goals in the remainder of 2024.

謝謝你，Sudhakar。我很高興今天能和大家在一起。在我的第一次太陽風收益電話會議上，我們第三季度表現強勁，並延續了上半年的勢頭，就像 Saker 一樣，我相信我們有能力在 2024 年剩餘時間內實現我們的業務和財務目標。

Although the it spending environment continues to be challenging. We continue to see growth in the mix of predictable recurring revenue and have delivered sustained ARR growth.

儘管IT支出環境依然充滿挑戰。我們繼續看到可預測經常性收入組合的成長，並實現了持續的 ARR 成長。

I'll now turn to the numbers.

我現在來談談數字。

We finished the third quarter with a total revenue of 200 million. A 6% increase compared to the prior year and above the high end of the outlook for total revenue of 196 million that we provided. Last quarter, we ended the third quarter with total ARR of 724 million up 8% year over year.

我們第三季的總收入為2億美元。與上年相比成長了 6%，並且高於我們預期的 1.96 億總收入的最高限額。上個季度，我們結束第三季的 ARR 總值為 7.24 億美元，年增 8%。

Our subscription ARR at the end of the third quarter was 289 million. An increase of 36% year over year. This growth continues to be driven by the execution of our subscription first strategy.

我們第三季末的訂閱ARR為2.89億。較去年同期成長36%。這一增長繼續受到我們訂閱優先策略實施的推動。

We had 1100 customers with over $100,000 of total AR R representing 18% growth over the prior year.

我們擁有 1100 名客戶，總應收帳款超過 10 萬美元，比前一年增長了 18%。

Digging into the revenue details. Our third quarter subscription revenue was 76 million up 30% year over year. The increase in subscription revenue continues to reflect the success of our subscription first strategy which includes converting a portion of our maintenance base to our subscription products.

深入挖掘收入細節。我們第三季的訂閱收入為 7,600 萬美元，年增 30%。訂閱收入的成長繼續反映了我們訂閱優先策略的成功，其中包括將部分維護基礎轉換為訂閱產品。

Maintenance revenue was 111 million in the third quarter. Down 5% compared to the prior year. This decline was expected as we continue to convert existing customers to our solarwinds observability products.

第三季維護收入為1.11億。比上年下降5%。由於我們繼續將現有客戶轉化為我們的 solarwinds 可觀測產品，這種下降是意料之中的。

Our maintenance renewal rate is 97% on a trailing 12 month basis and was 96% for the third quarter. To remind you as we convert maintenance customers to subscriptions. We exclude those customers from this renewal rate calculations due to the subscription revenue growth and strong maintenance renewal rates. 94% of our total revenue is now recurring revenue for the third quarter. License revenue was 13 million down 10% from 14 million in the third quarter of 2023 as a reminder, our subscription first focus has affected and will continue to affect our licensed sales performance.

我們的維護續約率在過去 12 個月為 97%，第三季為 96%。提醒您我們將維護客戶轉為訂閱客戶。由於訂閱收入成長和強勁的維護續訂率，我們將這些客戶排除在續訂率計算之外。我們總收入的 94% 目前是第三季的經常性收入。授權收入為 1,300 萬美元，較 2023 年第三季的 1,400 萬美元下降 10%，提醒一下，我們的訂閱優先重點已經影響並將繼續影響我們的授權銷售業績。

Our focus on operating discipline continues to drive results and we delivered another strong quarter of nongaap profitability. Third quarter adjusted EBITDA was 96 million growing 13% year over year representing an adjusted EBITDA margin of 48% and coming in 3 million above the high end of the 93 million outlook we gave for the quarter turning to our balance sheet, our net leverage ratio at September 30th was approximately 2.8 times. Our trailing 12 month adjusted EBIDA compared to three times at the end of last quarter.

我們對營運紀律的關注繼續推動業績，並且我們又一個季度實現了強勁的非公認會計準則獲利。第三季調整後的 EBITDA 為 9,600 萬美元，年成長 13%，調整後的 EBITDA 利潤率為 48%，比我們給出的本季 9,300 萬美元預期高出 300 萬美元。我們過去 12 個月的調整後 EBIDA 與上一季末的三倍相比有所提高。

As always, we will monitor the interest rate environment and look for opportunities to further reduce our variable interest rate in the future.

像往常一樣，我們將監控利率環境並尋找未來進一步降低浮動利率的機會。

We generated 115.5 million in cash flow from operations in the nine months ended September 30th, our cash and cash equivalents and short term investment balance at quarter end was 199.2 million.

截至 9 月 30 日的九個月內，我們的經營活動產生了 1.155 億美元的現金流，季度末的現金和現金等價物以及短期投資餘額為 1.992 億美元。

Our nongaap diluted earnings per share were 27¢ which was above the guidance range of 24 to 26¢. This beat was largely due to our improved profitability.

我們的非公認會計準則攤薄每股收益為 27 美分，高於 24 至 26 美分的指導範圍。這項成績主要歸功於我們獲利能力的提升。

I will now walk you through our outlook before turning it over to stacker for final thoughts.

現在我將向您介紹我們的展望，然後將其交給 stacker 進行最終思考。

I will start with our fourth quarter guidance and then discuss our updated outlook for the year for the fourth quarter. We expect total revenue to be in the range of 201 million to 204 million representing 2% growth at the midpoint adjusted EBITDA for the fourth quarter is expected to be approximately 95 to 98 million representing 11% growth at the midpoint.

我將首先介紹我們的第四季指引，然後討論我們對第四季年度的最新展望。我們預計總營收在 2.01 億至 2.04 億之間，中間值成長 2%；第四季調整後 EBITDA 預計約 9,500 萬至 9,800 萬美元，中間值成長 11%。

Nongaap fully diluted earnings per share are projected to be 27 to 28¢ per share assuming an estimated 175 million fully diluted shares outstanding.

假設已發行的完全稀釋股票數量約為 1.75 億股，則預計非公認會計準則 (Nongaap) 完全攤薄每股收益為 27 至 28 美分。

Finally, our outlook for the fourth quarter assumes a Nongaap tax rate of 26% and we expect to pay approximately 9 million in cash taxes during the fourth quarter for the full year. We are pleased to raise the revenue guidance and expect total revenue to be in the range of 788 million to 791 million representing 4% year over year growth at the midpoint.

最後，我們對第四季度的展望假設 Nongaap 稅率為 26%，我們預計第四季度將全年支付約 900 萬美元的現金稅。我們很高興上調了收入預期，預計總收入將在 7.88 億至 7.91 億之間，中位數為年增 4%。

We are raising our adjusted EBITDA for the year which is now expected to be approximately 376 million to 379 million representing 15% year over year growth at the midpoint.

我們正在提高今年的調整後 EBITDA，目前預計約為 3.76 億至 3.79 億，中位數為年增 15%。

Non-Gaap diluted earnings per share are projected to be $1.08 to $1.09 per share assuming an estimated 173.9 million fully diluted shares outstanding.

假設完全攤薄的流通股數量估計為 1.739 億股，則非公認會計準則攤薄每股收益預計為 1.08 至 1.09 美元。

Our full year and fourth quarter guidance assumes a EUR to dollar exchange rate of $1 and the 6 Cense to 1 EUR with that, I'll return the call to Sudhakar for his closing remarks.

我們的全年和第四季指引假設歐元兌美元的匯率為 1 美元，即 6 歐分兌 1 歐元，在此基礎上，我將回電給 Sudhakar，請他作最後發言。

Thank you, Lewis. I'm pleased with our progress in the third quarter, evidenced by our strong financial performance and the platform updates that address our customers' evolving and critical needs.

謝謝你，劉易斯。我對我們第三季的進展感到滿意，這從我們強勁的財務業績和滿足客戶不斷變化的關鍵需求的平台更新中可見一斑。

We delivered a strong Q3 and I'm confident about closing Q4 and 2024 on a high note as we continue to execute our strategy, which we set more than three years ago.

我們第三季的業績表現強勁，我相信，隨著我們繼續執行三年多前製定的策略，我們將以高調結束第四季和 2024 年。

As I look to the future, I remain optimistic for several reasons. First, we continue to serve a large growing and diversified customer base with a broad array of solutions allowing us to increase our share of wallet while growing our relevance, we believe the growth in our ARR and strong customer retention proves this out.

展望未來，我仍然保持樂觀，原因有幾個。首先，我們繼續為不斷增長的多樣化龐大客戶群提供廣泛的解決方案，從而讓我們在提升相關性的同時增加我們的客戶份額，我們相信 ARR 的成長和強大的客戶保留率證明了這一點。

Second, our solar winds platform continues to mature, enhancing our ability to add functionality at a lower marginal R&D cost. This was always the premise of building a platform and it is beginning to bear fruit.

其次，我們的太陽風平台不斷成熟，增強了我們以較低的邊際研發成本增加功能的能力。這始終是建立平台的前提，並且它已開始取得成果。

Third, our strong customer and partner base, fantastic customer success teams, events like the recent Sullivan's Day on October 2nd and the Tracks community are great sources for understanding emerging trends and evolving customer needs. We believe this increases our ability to deliver customer relevant solutions and de risk our portfolio development efforts. Fourth, our good market efforts continue to grow from a strong heritage of inside sales with a broader and more committed partner ecosystem. Planning distributors, resellers, managed service providers and cloud service providers.

第三，我們強大的客戶和合作夥伴基礎、優秀的客戶成功團隊、最近 10 月 2 日的沙利文日和 Tracks 社群等活動都是了解新興趨勢和不斷變化的客戶需求的重要來源。我們相信這增強了我們向客戶提供相關解決方案的能力並降低了我們的投資組合開發風險。第四，我們良好的市場努力繼續從強大的內部銷售傳統和更廣泛、更堅定的合作夥伴生態系統中發展。規劃經銷商、經銷商、主機服務供應商和雲端服務供應商。

These partners broaden our reach in a cost-effective way.

這些合作夥伴以經濟有效的方式擴大了我們的業務範圍。

Finally, and most importantly, I'm proud of our team for remaining steadfast in the purpose of enriching the lives of our customers.

最後，最重要的是，我為我們的團隊始終堅定不移地致力於豐富客戶的生活而感到自豪。

I believe we are best positioned to help customers reduce the complexity of their hybrid environments, improve visibility, increase productivity and reduce their costs. Again, I want to thank our employees, partners, customers and shareholders for their continued commitment to Furance Lewis and I are now happy to address your questions.

我相信我們最有能力幫助客戶降低混合環境的複雜性、提高視覺性、提高生產力並降低成本。再次，我要感謝我們的員工、合作夥伴、客戶和股東對 Furance Lewis 的持續承諾，我現在很高興回答您的問題。

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. And if you'd like to withdraw that question again, press star one, we also ask that you limit yourself to one question and one follow up. Your first question comes from the line of Rob Oliver with Baird. Please go ahead.

謝謝。我們現在開始問答環節。如果您想提問，請按下電話鍵盤上的星號 1 來舉手並加入排隊。如果您想再次撤回該問題，請按星號 1，我們也要求您將問題限制在一個問題和一個後續問題上。您的第一個問題來自貝爾德 (Baird) 的 Rob Oliver。請繼續。

Great. Thank you. Good morning. Thank you for taking my questions. Saker, we had the opportunity to attend your product roll out earlier in Tober and you know, very impressive and you guys have made a ton of progress across all of your different product areas, particularly around cloud enhancements. I'd be curious and I know it's still early with the new functionality. But when you look at the different areas, whether it be hypercloud, observability or database observability, where you're seeing kind of the most signs of traction right now, if there's any one area to call out or also maybe what you're hearing from some of the increased activity with your partners around where they're seeing the most pull from these products and activity in their pipeline. And then I had a quick follow up for Lewis as well.

偉大的。謝謝。早安.感謝您回答我的問題。Saker，我們有機會參加您在托伯爾 (Tober) 早些時候推出的產品發布會，您知道，這非常令人印象深刻，你們在所有不同產品領域都取得了巨大進展，特別是在雲端增強方面。我很好奇，而且我知道新功能還處於早期階段。但是當您查看不同的領域時，無論是超雲、可觀察性還是資料庫可觀察性，您現在看到的是最多的牽引跡象，如果有任何一個領域需要注意，或者也許您從合作夥伴的一些增加的活動中聽到了什麼，他們從這些產品和渠道中的活動看到了最大的吸引力。然後我也對劉易斯進行了快速跟進。

Sounds good, Rob. Good morning. And thank you again for your ongoing support of the approach that we have taken with the Sullivans platform. And the integrated solutions is to be able to intersect a customer in their journey and be able to help them evolve it. And that could start from a customer who is on on premises with some assets in the cloud or a customer that might be committed fully to the cloud. So it really doesn't matter to us in terms of how we have architected our solutions. It's all about providing them flexibility. Now, to your point about where do we see the pull. If instead of looking at it as a particular functionality, we should be looking at the broader context of the customer and most customers are looking at, how do I bridge the on premises and cloud divide, so to speak. Today, they use a number of tools to address it. And with our solutions, they're able to not only get hybrid visibility but also consolidate vendor tools. That's one reason why I would suggest you're seeing a continuing increase in 100 K plus AR R customers. And so it really depends on the customer, but with the platform flexibility that we have, we are able to address and intersect very, very quickly.

聽起來不錯，羅布。早安.再次感謝您對我們採用的 Sullivans 平台方法的持續支持。整合解決方案能夠在客戶的旅程中與他們相交，並能夠幫助他們發展。這可能從在雲端擁有一些資產的本地客戶開始，或者從可能完全致力於雲端的客戶開始。因此，對我們來說，如何設計解決方案其實並不重要。這一切都是為了給他們靈活性。現在，回到你提到的我們在哪裡看到吸引力的問題。如果我們不將其視為一種特定的功能，而應該著眼於客戶的更廣泛背景，大多數客戶都在關注的是，我該如何彌合內部部署和雲端之間的鴻溝。今天，他們使用了許多工具來解決這個問題。透過我們的解決方案，他們不僅可以獲得混合可視性，還可以整合供應商工具。這就是我認為 10 萬以上 AR R 客戶數量持續增加的原因之一。所以這確實取決於客戶，但憑藉我們擁有的平台靈活性，我們能夠非常非常快速地解決問題和交叉。

Okay. That's helpful. Thank you. And then Louis just, you know, a bit of an open ended question from you, but now that you've been you know, in your seat now for a little bit over a quarter, just wanted to get a sense from you of kind of your, your thoughts. You know, obviously very powerful financial model, you know, it solar winds and highly profitable. I think, you know, what we hear often from investors is, you know what, when a lot of a lot of positive changes here, one good top line growth pick up you certainly not asking you to guide to 25. But when you look at the model and some of what you've seen now here being in your seat over a quarter, perhaps some observations on some of your goals are priorities in the seat. Thank you very.

好的。這很有幫助。謝謝。然後路易斯，你知道，你問了一個有點開放式的問題，但是現在你已經在你的座位上坐了四分之一多一點，我只是想從你那裡了解一下你的想法。你知道，這顯然是非常強大的財務模型，你知道，太陽風的利潤非常高。我想，您知道，我們經常從投資者那裡聽到的是，當這裡發生很多積極的變化時，一個良好的營收成長回升肯定不會要求您指導到 25。但是當您查看模型以及您現在在這裡看到的四分之一以上的席位時，也許對您的某些目標的一些觀察是席位的優先事項。非常感謝。

Much.

很多。

Okay, sure. I.

好的，當然。我。

Thank, thank you for the question. So first thing is that the reason that I joined the company when I saw an effective market, and that the company had a great strategy, it was aligned to the market and the customer needs. And the, the business had an incredible customer base to continue to develop grow and deliver value for. So all of these beliefs coming into the company, All I've done is I've, I've further kind of validated the assumptions that I had in coming into the company in terms of the business model, the business model is very powerful. I think the strategy is clearly aligned to both where the market is going and the needs of the customer. So I see it as long term and sustaining. We're early days in terms of the transformation journey and we still have a long way to go. But the the thesis of developing a platform expanding and broadening the capabilities of that and then leveraging the installed base to deliver continued future value to the customers. It is a long term sustained play, a lot of value will continue to be delivered. And I'm I'm very excited about the Opportunity ahead.

謝謝，感謝您的提問。所以首先，我加入這家公司的原因是，我看到了一個有效的市場，並且該公司有一個很好的策略，它與市場和客戶的需求保持一致。並且，該企業擁有令人難以置信的客戶群，可以繼續成長並創造價值。所以，所有這些信念都進入了公司，我所做的就是，我進一步驗證了我進入公司時在商業模式方面的假設，商業模式非常強大。我認為該策略顯然與市場發展方向和客戶需求一致。因此我認為這是長期且可持續的。我們的轉型之路才剛開始，還有很長的路要走。但開發平台的論點是擴大和拓寬其功能，然後利用已安裝的基礎為客戶提供持續的未來價值。這是一項長期持續的活動，將會持續產生許多價值。我對未來的機會感到非常興奮。

Rob. Lewis won't mention this, but in addition to significant financial capabilities and background, he also brings a significant operational expertise to the table that will allow us to H1 in on specific and targeted investments more efficiently than we were able to do before. And our journey of profitable growth will continue. As you know, we just reported 8% ARR growth and 94% of our business is now recurring. So that gives us a super solid foundation to continue our journey. But we are also very prudent about how to think about the future.

搶。劉易斯不會提及這一點，但除了強大的財務能力和背景之外，他還帶來了重要的營運專業知識，這將使我們能夠比以前更有效地進行特定的和有針對性的投資。我們的獲利成長之旅還將繼續。如您所知，我們剛剛報告了 8% 的 ARR 成長，而 94% 的業務現在都是經常性的。這為我們繼續前進奠定了非常堅實的基礎。但我們對如何思考未來也非常謹慎。

Understood.

明白了。

Thanks very much.

非常感謝。

Your next question comes from the line of Matt Hedberg with RBC capital markets. Please go ahead.

您的下一個問題來自加拿大皇家銀行資本市場的 Matt Hedberg。請繼續。

Thanks for picking my questions. Gentlemen and congrats on the, on the results. It's really good to see the momentum. I guess the doctor, you know, your, your growth rate continues to kind of tick up here this year and, and, and the beats are getting larger and relative to what we saw earlier this year. I'm just curious, you know, is could you could you put a finer point on on the demand environment? I know you said it was sort of stable, but you know, the results are certainly, you know, feel better than stable. So just kind of curious if you could help us understand you know, some of the demand trends that you're seeing.

感謝您選擇我的問題。先生們，對所取得的成績表示祝賀。看到這樣的勢頭真是太好了。我想醫生，您知道，今年您的生長速度會繼續加快，而且心跳也會越來越快，相對於我們今年早些時候看到的情況而言。我只是很好奇，能否更詳細地闡述需求環境？我知道您說過它有點穩定，但是您知道，結果肯定感覺比穩定更好。所以我有點好奇您是否可以幫助我們了解您所看到的一些需求趨勢。

Definitely ma first of all, thanks again for your ongoing support of of sole.

首先，再次感謝您對 of sole 的持續支持。

I am very pleased with the results that we delivered and it is simply an indication of ongoing progress and validation of our strategy and execution abilities with regards to the demand environment. As you know, we have a very large and diversified customer base both by GEO as well as market segment. A lot of our expansion or growth definitely comes from our installed base as we support them with broader solutions, more ability to consolidate their platforms, simplify their co or reduce their cost, I should say and increase their productivity. A lot of our demand comes from that. But we also have been getting our fair share of new customers as well in terms of the trends in the demand itself, I would say that and as they've consistently been reporting, we haven't seen like huge variations up or down in demand. And given the macro uncertainty, we continue to be prudent about future quarters and years.

我對我們所取得的成果感到非常滿意，這只是表明我們在需求環境下不斷取得進展和驗證了我們的策略和執行能力。如您所知，我們擁有非常龐大且多樣化的客戶群，既包括地理分佈，也包括細分市場。我們的擴張或成長很大一部分肯定來自於我們的安裝基礎，因為我們為他們提供更廣泛的解決方案，更強的能力來整合他們的平台，簡化他們的工作或降低他們的成本，我應該說，提高他們的生產力。我們的許多需求都來自於此。但就需求趨勢而言，我們也獲得了相當多的新客戶，我想說，正如他們一直在報告的那樣，我們並沒有看到需求出現巨大的上升或下降變化。鑑於宏觀的不確定性，我們對未來幾季和幾年的前景繼續保持謹慎。

Got it. Thanks. And then once the Lewis congrats on, on the, on the, on the role again, and I guess a little bit of a fall to the last question. You know, I, I guess I'm sort of curious about, you know, your, your guidance philosophy. You know, you know, I don't know how trends were in October, I assume they're continued to be stable. But I'm just curious, like, you know, you know, how do you think about like the prospects of a four Q budget flush embedded in the guidance and just, just maybe a little bit more on sort of your approach to building out a forecast?

知道了。謝謝。然後，一旦路易斯再次對這個角色表示祝賀，我想最後一個問題就會有點落空了。你知道，我，我想我有點好奇，你知道，你的指導哲學。你知道，你知道，我不知道十月的趨勢如何，我認為它們會繼續保持穩定。但我只是很好奇，你知道，你知道，你如何看待指導中所包含的四個季度預算沖洗的前景，以及你制定預測的方法？

So a number of factors play into that one is how the business is performing today. Secondly, is what we can see in terms of the market playing out, going forward and what are the things that we can validate? We try and get as much information from the market and the external sources to see what other companies are seeing as well. And then we apply a combination of how the business is performing and apply that to what we're seeing in the market, determine what we believe an appropriate forecast and guide is. And that will of course, be tempered with a level of prudence to make sure that what we can deliver, we are able to, or to make sure that, that what we state we have confidence that we will be able to deliver. So I believe it's fairly consistent with the approach that has been applied historically. I think it has been a solid approach and I know that the company has had a great record of being able to deliver the guidance that has been given historically and our goal. And my expectation is that we will continue that.

因此，有許多因素都會影響業務，其中之一就是目前的業務表現。其次，就市場未來表現而言，我們能夠看到什麼？我們嘗試從市場和外部來源獲取盡可能多的信息，以了解其他公司的情況。然後，我們結合業務表現並將其應用到我們在市場中看到的情況，確定我們認為合適的預測和指導。當然，我們也將保持一定程度的審慎，以確保我們能夠實現我們能夠實現的目標，或確保我們有信心實現我們所聲明的目標。所以我相信它與歷史上採用的方法相當一致。我認為這是一個可靠的方法，而且我知道公司在履行歷史上給出的指導和我們的目標方面有著出色的記錄。我希望我們能夠繼續這樣做。

Thanks a lot. Best.

多謝。最好的。

Of luck for the remainder of the year.

祝今年餘下的時間好運。

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

您的下一個問題來自摩根士丹利的 Sanjit Singh。請繼續。

Yes. Thank you for taking the questions and congrats on the, on the solid Q3 results. You know, in addition to on boarding Lewis as the new Chief Financial Officer and, and congrats lew on the role, You also brought on a new Chief Revenue Officer Zach, I was wondering if you could just give us some insight into the particular capabilities of, of this executive coming on board and if you give us a sense of the magnitude of change that we should expect for the sales force, obviously, we're coming up on a Q4, but then going to 2025 what is he going to be his you know, priorities and objectives going into next year?

是的。感謝您回答這些問題，並祝賀我們第三季的穩健業績。您知道，除了任命劉易斯擔任新任首席財務官並祝賀劉易斯擔任這一職務之外，您還任命了新任首席營收官扎克，我想知道您是否可以向我們介紹一下這位新任高管的具體能力，以及您是否能告訴我們銷售團隊應該發生多大程度的變化，顯然，我們即將迎來第四季度，但是到 2025 年，他的優先事項和目標是什麼？

Thank you again, Sanjit, good to hear from you. Andre has joined our company and has jumped right in in terms of major strategic shifts in go to market. I would not suggest that there will be any in the sense that a lot of the foundations that we have laid out. And I'll remind everyone that our foundations of a very robust inside sales motion will continue. That is something that the rest of the market has tried to emulate and that is the, in my opinion, one of the most scalable go to market models you can build. At the same time, we saw opportunities working with partners working with global system integrators, cloud service providers to expand our market reach.

再次感謝您，Sanjit，很高興收到您的來信。安德烈 (Andre) 已加入我們公司，並積極參與公司在市場進入方面的重大策略轉變。我不會說我們會建立起許多基礎。我要提醒大家，我們非常強勁的內部銷售運動的基礎將會持續下去。這是其他市場試圖效仿的，在我看來，這是你可以建立的最具可擴展性的市場模式之一。同時，我們看到了與全球系統整合商、雲端服務供應商的合作夥伴合作以擴大我們的市場範圍的機會。

Andre comes in with significant experience in those areas, be it with the partner ecosystem and the global system integrated space. So what I'm hoping and expecting as we get into 2025 and beyond is that Andre will bring his vast skills and extend our current your market models into those, but we'll always be very careful with how we deploy your market resources and ensure that our expense to bookings ratios are consistent with our financial goals.

安德烈在這些領域擁有豐富的經驗，包括合作夥伴生態系統和全球系統整合領域。因此，我希望並期待，隨著我們進入 2025 年及以後，安德烈將運用他豐富的技能並將我們當前的市場模型擴展到這些市場，但我們將始終非常謹慎地部署市場資源，並確保我們的費用與預訂比率與我們的財務目標一致。

Understood that that was very clear as a follow up, I had a question on gen I and gen E I has to relate to the pricing strategy sort of going forward. And so it's sort of a two quarter. So you mentioned in your script about enterprise service management as customers take on more of those gen A I capabilities in service management. What sort of uplift are you seeing relative to your, your your standard offering? And then more broadly as the observability push gets more mature and enterprise service management gets more mature. How are you thinking about pricing? There's definitely a sort of debate on fee based models versus more utility consumption based models. Should we anticipate that those more consumptive type pricing models start to layer in within service now? Sorry, I'm sorry, within solar winds over time.

我明白，作為後續問題，這非常清楚，我對第一代和第三代有一個疑問，它們與未來的定價策略有關。因此這有點像兩個季度。因此，您在腳本中提到了企業服務管理，因為客戶在服務管理中採用了更多的人工智慧功能。相對於您的標準產品，您看到了什麼樣的提升？更廣泛地說，隨著可觀察性推動變得更加成熟以及企業服務管理變得更加成熟。您如何考慮定價？關於基於費用的模型與基於效用消費的模型之間肯定存在某種爭論。我們是否應該預見那些更具消費性的定價模式現在會開始在服務中滲透？抱歉，很抱歉，隨著時間的推移，太陽風會改變。

Sanjit, the consumptive models and consumption based pricing models are things that we continue to contemplate but not something that you should model or we have modeled at this point in time. With regards to gen A I and the monetization of it. As I noted in my script, we have extended our enterprise service management and gen capabilities, especially things like automated runbooks, et cetera are part of our premium package. And the idea there is that customers should see compelling value there. And as they buy more of that, we get an automatic ASP upload. So it's not something where we charge for gen A I as much as gen A I is a capability of significant product enhancements and of course value delivery to customers. And that'll be the approach that we will take and the ASP applift. We, we'll keep referring to how we are progressing there. But the early indicators on enterprise service management is there's a lot more leaning towards the premium package, which is a way for us to monetize the AI.

Sanjit，消費模型和基於消費的定價模型是我們一直在考慮的事情，但不是你應該建模的東西，也不是我們目前已經建模的東西。關於 A I 世代及其貨幣化。正如我在腳本中提到的，我們已經擴展了我們的企業服務管理和生成功能，尤其是自動化運行手冊等都是我們的高級套餐的一部分。我們的想法是，客戶應該看到其中引人注目的價值。隨著他們購買更多，我們就會獲得自動 ASP 上傳。因此，我們對 A I 代收取的費用並不是很高，因為 A I 代是一種顯著的產品增強功能，當然還可以為客戶提供價值。這就是我們將採取的方法和 ASP 提升。我們將繼續關注我們在那裡的進展。但企業服務管理的早期指標表明，人們更傾向於高級套餐，這是我們將人工智慧貨幣化的一種方式。

Great to hear the doctor.

很高興聽到醫生這麼說。

Thank you very much.

非常感謝。

Your next question comes from the line of Pinjalim Bora with a JP Morgan. Please go ahead.

您的下一個問題來自摩根大通的 Pinjalim Bora。請繼續。

Oh, great. Thank you so much. So just one question for you, seems like a nice bump in the 100-k customers sequentially maybe talk about the driver. Seems like you said consolidation. Is that the main driver? Is there? Is there that up skewing into kind of premium skews? Is that also happening or more adoption across the three product pillars? Maybe just double click into that. Thank you very much.

噢，太好了。太感謝了。所以只想問您一個問題，似乎 10 萬名客戶的數量會有一個很大的成長，也許可以談談驅動因素。好像你說的是合併。這是主要驅動因素嗎？有沒有？這種向上傾斜是否會導致溢價傾斜？這是否也正在發生，或在三大產品支柱中被更多採用？也許只需雙擊即可。非常感謝。

Absolutely. The first driver I would highlight is the ongoing conversion to subscription. As we have converted our maintenance base to subscription. There's always an opportunity to discuss the value with the customer. And as you remember, I have noted that our subscription transition is not simply a business model transition as much as it is a value model transition. So in many of those con conversations, we consolidate customers tools so that in essence means that we are getting a larger share of wallet. That is definitely one aspect of it. The second increasingly is the fact that we have a more unified observability solution that spans on premises and cloud and closes the hybrid visibility. GAAP is enabling us to win larger deals. That's an early trend, but it's definitely a contributing trend. And the third piece is what you mentioned, which is some of the upstream customer requirements, especially as we selectively go upstream into the enterprise through G SI partners. That's also a contributing factor.

絕對地。我要強調的第一個驅動因素是正在進行的訂閱轉換。因為我們已經將維護基礎轉換為訂閱。總有機會與客戶討論價值。正如你所記得的，我已經注意到，我們的訂閱轉型不僅是商業模式的轉型，更是價值模式的轉型。因此，在許多這樣的爭論中，我們整合了客戶的工具，從本質上來說，這意味著我們將獲得更大的市場份額。這確實是其中的一個面向。第二個事實是，我們擁有一個更統一的可觀察性解決方案，涵蓋本地和雲端，並關閉混合可見性。GAAP 讓我們能夠贏得更大的交易。這是一個早期趨勢，但絕對是一個有益趨勢。第三部分就是您所提到的，即一些上游客戶的要求，特別是當我們透過 G SI 合作夥伴選擇性地進入上游企業時。這也是一個因素。

Understood. Thank you.

明白了。謝謝。

Your next question comes from the line of Miller jump with truest securities. Please go ahead.

您的下一個問題來自 Miller jump with truest securities 一線。請繼續。

Thank you for taking the question and I will echo my congrats on the solid execution. I, I actually, I I also wanted to double click on some of the consolidation theme that has come up a couple times on the call. Just wondering if you could give a little more color on these deals. It is a motion where you know, your sales team is proactively reaching out and driving this consolidation are customers really coming to you kind of renewal cycles and then maybe just is there any difference between that sales cycle versus your traditional one?

感謝您回答這個問題，我對您的出色執行表示祝賀。我，實際上，我還想雙擊通話中出現過幾次的一些合併主題。我只是想知道您是否可以提供更多關於這些交易的詳細資訊。這是一種動議，你知道，你的銷售團隊正在積極聯繫並推動這種整合，客戶是否真的會來找你進行更新周期，那麼也許這種銷售週期與傳統銷售週期有什麼區別呢？

Definitely the renewal cycle is a instigator for a broader conversation. But we are not restricted only to a renewal cycle and it is in the spirit of continuous touch. As we have been discussing as part of our good market evolution over the last three years. I while we had a very strong transactional motion, historically, what we have done is evolve that transactional motion to more of a continuous touch motion. We have an incredibly strong customer success team that is regularly in touch with customers understanding, doing pulse checks, figuring out their ongoing needs. And I spoke about the community effect as well. So there is both a push and a pull here.

毫無疑問，更新周期是更廣泛對話的推動力。但我們並不局限於僅僅一個更新周期，而是本著持續接觸的精神。正如我們過去三年來一直在討論的良好市場發展的一部分。雖然我們擁有非常強大的交易動議，但從歷史上看，我們所做的就是將這種交易動議發展為更連續的觸摸動議。我們擁有一支非常強大的客戶成功團隊，該團隊定期與客戶保持聯繫，了解客戶動態，檢查客戶脈搏，了解他們持續的需求。我也談到了社區效應。因此，這裡既有推力，也有拉力。

Thanks for that and, and then maybe for lew, I know you're not guiding, you know, 25 but just curious if you could talk at a high level about the key drivers you're thinking about in the model for next year, given ongoing transformation in particular interested. If you see any catalyst for acceleration of the transition.

謝謝你，然後也許對於 Lew 來說，我知道你沒有指導，你知道，25 但我只是好奇你是否可以在高層次上談談你在明年的模型中考慮的關鍵驅動因素，特別是考慮到正在進行的轉型。如果您看到任何加速轉變的催化劑。

I think it's, as I, as I said earlier, it's a long term model that we are building into. So from a priority standpoint, we'll continue to extend the Solarwinds platform. We'll also, we'll, we'll invest selectively around potential growth.

我認為，正如我之前所說，這是我們正在建立的長期模型。因此從優先順序的角度來看，我們將繼續擴展 Solarwinds 平台。我們還將根據潛在成長選擇性地進行投資。

Opportunities while continuing.

機會在繼續。

To, to exercise expense discipline. And we'll, we'll focus on the subscription arr customer success and continuing to grow profitability. So these are all the areas that we will be focusing on going into next year. And although we're not going to give guidance, we will give guidance for the or during the Q4 call for next year. I think if you're as you think about modeling for, for 2025 you should look to the implied a Q4 exit growth rate, which I think is a good kind of baseline and proxy for how you should be Thinking about next year.

要嚴格執行費用紀律。我們將專注於訂閱客戶的成功以及持續提高獲利能力。這些都是我們明年將重點關注的領域。雖然我們不會提供指引，但我們將在明年第四季電話會議中提供指引。我認為，如果您正在考慮為 2025 年建模，您應該專注於隱含的第四季度退出成長率，我認為這是一個很好的基線，可以作為您思考明年的指標。

Very helpful. Thank you.

非常有幫助。謝謝。

Your next question comes from the line of Patrick Colville with Scotia Bank. Please go ahead.

您的下一個問題來自加拿大豐業銀行的派崔克‧科爾維爾。請繼續。

Hey morning, Saka Lewis, you know, thank you for having me on the call and it's a real pleasure to be part of the story.

嘿，早上好，薩卡·劉易斯，你知道，感謝你邀請我參加電話會議，我很高興成為這個故事的一部分。

I guess I, I want to ask about ebida margin. You know, in Q3 ebida margin, they hit a record high, which is, you know, undoubtedly very impressive to see.

我想問 EBIDA 利潤率。您知道，他們在第三季的息稅折舊攤提前利潤率創下了歷史新高，這無疑令人印象深刻。

But when in our launch, you know, one of the questions we received kind of quite frequently from investors was how solar wind is thinking about balancing margin versus the investments in, go to market and product development, given the market opportunity you highlighted. So do you mind just talking to that? I guess, kind of qualitatively of how you think about that kind of balance between profitability and investment on a go forward basis?

但是，當我們發布產品時，投資者經常問我們的一個問題是，考慮到您所強調的市場機會，太陽風能如何考慮平衡利潤率與市場進入和產品開發的投資。那你介意就此談談嗎？我想，您如何從定性的角度來看待未來獲利能力和投資之間的平衡？

Sure, I'll take, I'll.

當然，我會接受，我會的。

Take that anger. So I clearly we, we have a policy and a strategy to, to balance growth and profitability and we will continue to do that. So we're, we're always looking to consider opportunities to drive more growth. And we will continue to do that where we see there's a clear return coming back on the investments that we're we're making. But we're also highly focused on profitability. Profitability continues to be an important factor for us. So we are going to balance the, the growth investments as well as the, the opportunity to continue to streamline and simplify and make our business more efficient.

承受那份憤怒。所以我很清楚，我們有平衡成長和獲利的政策和策略，我們將繼續這樣做。因此，我們一直在尋找機會來推動更多的成長。當我們看到我們所做的投資獲得明顯回報時，我們將繼續這樣做。但我們也高度關注獲利能力。盈利能力對我們來說仍然是一個重要因素。因此，我們將在成長投資和持續精簡、簡化和提高業務效率的機會之間取得平衡。

Okay. Understood. And then in terms of the, the, the the product name changes, I mean, I think that makes a ton of sense to us to kind of simplify the, the thela. I guess I want to ask about Solarwind SAS. You know, how is that progressing in terms of adoption? And are there any quantitative metrics you'd be willing to provide in order to allow us to understand, you know, adoption of Solarwind Sass as of three Q.

好的。明白了。然後就產品名稱的變化而言，我的意思是，我認為這對我們來說非常有意義，可以簡化 thela。我想問一下有關 Solarwind SAS 的問題。您知道，從採用的角度來看，進展如何？您是否願意提供任何量化指標，以便我們了解截至第三季 Solarwind Sass 的採用情況。

Patrick, I'll, I'll touch on it and Louis might want to elaborate. We do not break out into s and other types of consumption.

派崔克，我會談一下這個問題，路易斯可能想詳細說明一下。我們不細分為s和其他類型的消費。

The primary reason on the observability side is, as we noted on our October 2nd announcements. We have looked at on premises to cloud, be it self hosted or fast consumed as a continuum. There are lots of customers where they have both our solutions and we are helping them actively bridge those as well. So it kind of becomes difficult to split those out. What I can say qualitatively is that we continue to make strong progress in that dimension. And my expectation is that the continued progression will be a function of where the customers are in their journey and how they plan to evolve it.

可觀察性方面的主要原因是，正如我們在 10 月 2 日的公告中所指出的那樣。我們已經研究了從本地到雲端，無論是自行託管還是快速消費，作為一個連續體。許多客戶同時擁有我們的解決方案，我們也積極幫助他們彌補兩者之間的差距。因此將它們分開就變得有點困難。我可以肯定地說，我們在這方面繼續取得長足進步。我的期望是，持續的進步將取決於客戶在旅途中的位置以及他們計劃如何發展它。

Wonderful. Thank. Thank you so much.

精彩的。感謝。太感謝了。

And that does conclude our question and answer session and I will now turn the conference back over to Suica for closing comments.

我們的問答環節到此結束，現在我將把會議交還給 Suica 進行結束語。

Thank you again and I appreciate everyone's attendance today and the questions so we will keep you posted on our progress.

再次感謝大家，我感謝大家今天的出席和提問，所以我們將隨時向大家通報我們的進度。

And ladies and gentlemen, that does conclude today's conference call. Thank you for your participation and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。