Varonis Systems Inc (VRNS) 2023 Q3 法說會逐字稿

Greetings, and welcome to Varonis Systems, Inc. Third Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Varonis Systems, Inc. 2023 年第三季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce Tim Perz, Investor Relations. Thank you. You may begin.

現在我很高興向您介紹投資者關係部 Tim Perz。謝謝。你可以開始了。

Thank you, operator. Good afternoon. Thank you for joining us today to review Varonis' third quarter 2023 financial results. With me on the call today are Yaki Faitelson, Chief Executive Officer; and Guy Melamed, Chief Financial Officer and Chief Operating Officer of Varonis. After preliminary remarks, we will open the call to a question-and-answer session.

謝謝你，接線生。午安.感謝您今天與我們一起回顧 Varonis 2023 年第三季的財務表現。今天與我一起參加電話會議的是執行長 Yaki Faitelson；以及 Varonis 財務長兼營運長 Guy Melamed。初步發言後，我們將開始問答環節。

During this call, we may make statements related to our business that would be considered forward-looking statements under federal securities laws, including projections of future operating results for our fourth quarter and full year ending December 31, 2023. Due to a number of factors, actual results may differ materially from those set forth in such statements. These factors are set forth in the earnings press release that we issued today under the section captioned Forward-Looking Statements, and these and other important risk factors are described more fully in our reports filed with the Securities and Exchange Commission.

在這次電話會議中，我們可能會發表與我們的業務相關的聲明，根據聯邦證券法，這些聲明將被視為前瞻性聲明，包括對截至2023 年12 月31 日的第四季度和全年的未來經營績效的預測。由於多種因素，實際結果可能與此類聲明中提出的結果有重大差異。這些因素在我們今天發布的收益新聞稿中的「前瞻性陳述」部分中進行了闡述，這些因素和其他重要的風險因素在我們向美國證券交易委員會提交的報告中進行了更全面的描述。

We encourage all investors to read our SEC filings. These statements reflect our views only as of today and should not be relied upon as representing our views as of any subsequent date. Varonis expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements made herein.

我們鼓勵所有投資者閱讀我們向 SEC 提交的文件。這些陳述僅反映我們今天的觀點，不應被視為代表我們在任何後續日期的觀點。 Varonis 明確聲明不承擔公開發布對本文中任何前瞻性陳述的任何更新或修訂的任何義務或承諾。

Additionally, non-GAAP financial measures will be discussed on this conference call. A reconciliation for the most directly comparable GAAP financial measures is also available in our third quarter 2023 earnings press release and investor presentation, which can be found at www.varonis.com in the Investor Relations section.

此外，本次電話會議也將討論非公認會計準則財務指標。我們也可以在我們的 2023 年第三季財報新聞稿和投資人簡報中找到最直接可比較的 GAAP 財務指標的調整表，您可以在 www.varonis.com 的投資者關係部分找到這些內容。

Lastly, please note that a webcast of today's call is available on our website in the Investor Relations section.

最後，請注意，今天電話會議的網路廣播可在我們網站的投資者關係部分觀看。

With that, I'd like to turn the call over to our Chief Executive Officer, Yaki Faitelson. Yaki?

接下來，我想將電話轉給我們的執行長 Yaki Faitelson。燒？

Thanks, Tim, and good afternoon, everyone. Thank you for joining us today. Let me start by saying our thoughts are with our employees, customers, partners and all of those impacted by the recent events in Israel. We will continue to do whatever it takes to support our employees. Today, I would like to review our Q3 results and discuss how AI can serve as a meaningful tailwind to our business in the years to come. But first, I would like to remind you why Varonis exists and the problems we solve.

謝謝蒂姆，大家下午好。感謝您今天加入我們。首先我要說的是，我們的心與我們的員工、客戶、合作夥伴以及所有受以色列最近事件影響的人同在。我們將繼續盡一切努力支持我們的員工。今天，我想回顧一下我們第三季的業績，並討論人工智慧如何在未來幾年為我們的業務提供有意義的推動力。但首先，我想提醒您為什麼 Varonis 存在以及我們解決的問題。

Data is the prime target for bad actors because of its important to a business. Data is also out of control. The explosion of the cloud and remote work has improved collaboration but has also made securing data more difficult. Varonis helps companies locate sensitive data, visualize who has access to it and automatically lock it down. This allows companies to collaborate safely and get value from their data while managing risk, and AI will only make this an even greater priority.

數據因其對企業的重要性而成為不良行為者的主要目標。數據也失控。雲端和遠距工作的爆炸性成長改善了協作，但也使保護資料變得更加困難。 Varonis 幫助公司定位敏感資料、視覺化誰有權存取這些資料並自動鎖定這些資料。這使得公司能夠安全地協作並從資料中獲取價值，同時管理風險，而人工智慧只會使這一點變得更加優先。

Our third quarter results reflect the continued healthy adoption of Varonis SaaS. We saw further evidence that our transition to a SaaS business model is working, and SaaS ARR now represents approximately 15% of total company ARR. Third quarter SaaS mix came in at 59%, comfortably ahead of our guidance of 45%. ARR grew 16% year-over-year to $517.5 million, and we have generated $46 million of free cash flow year-to-date, up from $800,000 to the same period last year. Guy will review our Q3 results and our updated guidance in more detail. From a macro standpoint, we continue to see high level of deal scrutiny and longer sales cycle this quarter but remain encouraged by the progress of our SaaS position against these headwinds.

我們第三季的業績反映了 Varonis SaaS 的持續健康採用。我們看到進一步的證據表明我們向 SaaS 業務模式的轉型正在發揮作用，SaaS ARR 目前約占公司總 ARR 的 15%。第三季 SaaS 組合為 59%，遠高於我們 45% 的指引值。 ARR 年增 16% 至 5.175 億美元，今年迄今我們已產生 4,600 萬美元的自由現金流，高於去年同期的 80 萬美元。蓋伊將更詳細地審查我們的第三季結果和更新的指導。從宏觀角度來看，本季我們繼續看到高水準的交易審查和更長的銷售週期，但我們的 SaaS 地位克服這些不利因素的進展仍然令人鼓舞。

Now I would like to spend some time on how AI presents a meaningful opportunity for Varonis. In my conversation with customers and prospects, AI comes up more and more. And my key takeaway for Varonis is that the growth of AI is the potential to generate significantly more data, significantly more risk and significantly increase the need for data security.

現在我想花一些時間討論人工智慧如何為 Varonis 提供有意義的機會。在我與客戶和潛在客戶的對話中，人工智慧越來越多地出現。我對 Varonis 的主要看法是，人工智慧的發展有可能產生更多的數據、更大的風險並顯著增加對資料安全的需求。

Stepping back, generative AI presents both opportunity and risk for companies. It has an opportunity to boost productivity and efficiency, but in order to safely realize these benefits, there are security risks that businesses must mitigate first. These risks present opportunities for companies like Varonis.

退一步來說，生成式人工智慧為公司帶來了機會和風險。它有機會提高生產力和效率，但為了安全地實現這些好處，企業必須先緩解安全風險。這些風險為像 Varonis 這樣的公司帶來了機會。

The first risk is related to what I call self-inflicted risk, which happens when businesses start using AI to suggest content to employees. And as data is locked down, there is little to prevent AI from analyzing the company's entire data estate and revealing critical business assets like customer lists, payroll files or bank account information to the wrong people.

第一個風險與我所說的自我造成的風險有關，當企業開始使用人工智慧向員工推薦內容時就會發生這種風險。由於資料被鎖定，人工智慧幾乎無法分析公司的整個資料資產，並向錯誤的人洩露客戶名單、薪資文件或銀行帳戶資訊等關鍵業務資產。

Microsoft recommends mitigating this risk by securing sensitive data before deploying Copilot, which is the company's AI system, and specifically recommends having the right information, access controls and policies in place, which is precisely what Varonis does. Without Varonis, rightsizing access control is very challenging.

微軟建議在部署 Copilot（該公司的人工智慧系統）之前保護敏感資料來減輕這種風險，並特別建議制定正確的資訊、存取控制和策略，而這正是 Varonis 所做的。如果沒有 Varonis，調整門禁控制規模將非常具有挑戰性。

Managing access controls only gets harder over time in the data store, and AI will surely contribute further to this problem. Without the right controls in place, AI doesn't know who should see what and surface everything for everyone. This becomes a huge risk for organizations, and bad actors won't even need to search for content they want to steal. AI will help them to find it automatically.

隨著時間的推移，管理資料儲存中的存取控制只會變得更加困難，而人工智慧肯定會進一步加劇這個問題。如果沒有正確的控制，人工智慧不知道誰應該看到什麼並為每個人呈現所有內容。這對組織來說是一個巨大的風險，不良行為者甚至不需要搜尋他們想要竊取的內容。人工智慧將幫助他們自動找到它。

AI will also increase the risk that companies face from external attackers. A few examples of this include helping bad actors create and translate phishing e-mails so they can use them in many languages, creating fake data sets in order to trick companies into paying ransom and creating malware. Unfortunately, the use of AI will continue to lower the barriers to entry for hacking. (inaudible) organizations mitigate this risk by ensuring that only the right people have access to information that they need to do their job.

人工智慧也將增加公司面臨外部攻擊者的風險。這方面的一些例子包括幫助不良行為者創建和翻譯網路釣魚電子郵件，以便他們可以以多種語言使用它們，創建虛假資料集以誘騙公司支付贖金和創建惡意軟體。不幸的是，人工智慧的使用將繼續降低駭客入侵的門檻。 （聽不清楚）組織透過確保只有合適的人員才能存取他們完成工作所需的資訊來減輕這種風險。

Varonis can help organizations ensure that employees only see content suggestions that are relevant to their job function. If a bad actor bypassed perimeter controls, Varonis can lock out the compromised user or machine, preventing damage from happening. Although it is early and we are still quantifying timing and sizing, we see AI becoming a growth tailwind to our business as it gains momentum and have detailed plan to execute in.

Varonis 可以幫助組織確保員工只看到與其工作職能相關的內容建議。如果不良行為者繞過了周邊控制，Varonis 可以鎖定受感染的使用者或機器，防止損壞發生。儘管現在還為時過早，而且我們仍在量化時間和規模，但我們認為人工智慧將成為我們業務成長的推動力，因為它正在獲得動力並有詳細的執行計劃。

Apart from demand opportunity that we see arising from security risk related to AI, we are also leveraging this technology in new ways to improve our customer experience. Varonis has been using machine learning and AI for many years in our analysis engine and threat model, for example. And today, we are announcing 2 exciting generative AI capabilities in our SaaS data security platform, AI system security operations center or what we call SOC and natural language search. Although we do not plan to sell AI as a separate SKU, our AI system SOC will provide security analysts with an intelligent AI system specialized in performing investigation, remediating threats and proactively hardening environment.

除了我們看到與人工智慧相關的安全風險所帶來的需求機會之外，我們還以新的方式利用這項技術來改善我們的客戶體驗。例如，Varonis 多年來一直在我們的分析引擎和威脅模型中使用機器學習和人工智慧。今天，我們在 SaaS 資料安全平台、AI 系統安全營運中心或我們所謂的 SOC 和自然語言搜尋中宣布了 2 項令人興奮的生成式 AI 功能。儘管我們不打算將人工智慧作為單獨的SKU出售，但我們的人工智慧系統SOC將為安全分析師提供專門用於執行調查、修復威脅和主動強化環境的智慧人工智慧系統。

Our SaaS platform can analyze alerts and provide context and next steps to help analysts more efficiently resolve security incident. With natural language search, AI makes every Varonis user a power user. Anyone from the helpdesk to CISO can use natural language to get fast and accurate answers to questions such as: Do we have any file containing passwords that are exposed to everyone on the Internet? Or what user has been accessing our payroll file? Today, we introduced generative AI features built upon the Varonis SaaS benefits that we have discussed with you over the past year and will further reduce the time to value for our customers and improve their experience with Varonis.

我們的 SaaS 平台可以分析警報並提供上下文和後續步驟，以幫助分析師更有效地解決安全事件。透過自然語言搜索，人工智慧使每個 Varonis 用戶都成為高級用戶。從幫助台到 CISO 的任何人都可以使用自然語言快速準確地回答以下問題：我們是否有包含向 Internet 上的每個人公開的密碼的文件？還是哪個使用者存取了我們的薪資文件？今天，我們推出了基於 Varonis SaaS 優勢的生成式 AI 功能，這些優勢是我們在過去一年中與您討論過的，並將進一步縮短客戶實現價值的時間並改善他們的 Varonis 體驗。

I would like to spend a moment to remind you of the 3 key benefits our SaaS platform provides our customers. First, customers are much better protected with much less effort with automated remediation and proactive incident response. Second, SaaS is quicker to deploy and has significantly lower infrastructure costs. And third, SaaS is easier to maintain and upgrade. Three of the key benefits that we realize are: one, shorter sales cycles; two, larger initial lands; and three, margin benefits over time. This quarter, we continue to see additional proof points of these benefits.

我想花點時間提醒您我們的 SaaS 平台為客戶提供的 3 個主要優勢。首先，透過自動修復和主動事件回應，客戶可以以更少的努力得到更好的保護。其次，SaaS 的部署速度更快，且基礎設施成本顯著降低。第三，SaaS更容易維護和升級。我們實現的三個主要好處是：一、更短的銷售週期；二、更大的初始土地；第三，隨著時間的推移，利潤率會提高。本季度，我們繼續看到這些好處的更多證據。

A large state government organization became a Varonis SaaS customer this quarter. We first gained a department of this state as a customer in 2022. Over the past year, we had a very successful deployment in the department that allowed us to build capability and ultimately win the broader state government mandate. For this organization, SaaS was a must-have because the security team is (inaudible). Now they will benefit from quicker time to value, faster deployment, and most importantly, they will be better protected with our Proactive Incident Response team and automated remediation for Windows on-prem and Microsoft 365.

一家大型州政府組織本季成為 Varonis SaaS 客戶。我們於 2022 年首次獲得該州的一個部門作為客戶。在過去的一年裡，我們在該部門進行了非常成功的部署，這使我們能夠建立能力並最終贏得更廣泛的州政府授權。對這個組織來說，SaaS 是必備的，因為安全團隊是（聽不清楚）。現在，他們將受益於更快的價值實現、更快的部署，最重要的是，他們將得到我們的主動事件回應團隊以及針對本機 Windows 和 Microsoft 365 的自動修復的更好保護。

We also continue to see healthy interest from existing self-hosted customers who converted to SaaS this quarter. One example was a multinational financial institution that first became a customer in 2020 given the large volume of sensitive customer data committed to make sure that information was locked down. They originally purchased 4 on-prem subscription licenses to protect their on-prem Windows environment.

我們也繼續看到本季轉向 SaaS 的現有自架客戶的濃厚興趣。一個例子是一家跨國金融機構，該機構於 2020 年首次成為客戶，因為該機構擁有大量敏感客戶數據，致力於確保資訊被鎖定。他們最初購買了 4 個本地訂閱許可證來保護其本地 Windows 環境。

This organization success protecting all-prem Windows drove a desire to consume all of the platform by going both wider and deeper. Varonis SaaS will now help them shrink the blast radius in the cloud just as they did on-prem. Proactive Incident Response will supplement the threat detection capabilities, and Varonis SaaS eliminates the need for this customer to manage their own hardware, which will improve the scalability. We converted their on-prem Windows licenses into a SaaS equivalent package, and they purchased an additional SaaS package for Microsoft 365, widening their coverage.

該組織在保護全預置 Windows 方面取得的成功激發了透過更廣泛、更深入地使用整個平台的願望。 Varonis SaaS 現在將幫助他們縮小雲中的爆炸半徑，就像他們在本地所做的那樣。主動事件回應將補充威脅偵測功能，Varonis SaaS 消除了該客戶管理自己硬體的需要，這將提高可擴展性。我們將他們的本機 Windows 授權轉換為 SaaS 等效包，並且他們為 Microsoft 365 購買了額外的 SaaS 包，從而擴大了覆蓋範圍。

The sustained momentum that we saw from our SaaS transition this quarter, coupled with our faster pace of innovation, gets us closer to achieving a $1 billion ARR target and delivering meaningful stakeholder value.

本季我們從 SaaS 轉型中看到的持續勢頭，加上我們更快的創新步伐，使我們更接近實現 10 億美元的 ARR 目標，並為利益相關者提供有意義的價值。

With that, let me turn the call over to Guy. Guy?

接下來，讓我把電話轉給蓋伊。蓋伊？

Thanks, Yaki. Good afternoon, everyone. Thank you for joining us today. It goes without saying that the health and safety of our employees is of paramount importance to us, and we will continue to do whatever it takes to support them.

謝謝，亞基。大家下午好。感謝您今天加入我們。不言而喻，員工的健康和安全對我們至關重要，我們將繼續盡一切努力支持他們。

Before I discuss results, I want to briefly comment on the impact of the war in Israel on our operations. From a top line perspective, Israel has historically represented less than 1% of our business. We have approximately 1/3 of our employees located in Israel, which includes our principal research and development facility as well as a portion of our support and general and administrative team. At this time, a low single-digit percentage of our global team members has been called up to active duty. We have executed business contingency plans to minimize the impact on our business. And at this time, we don't expect a material impact on our global operations.

在討論結果之前，我想先簡單評論一下以色列戰爭對我們業務的影響。從營收角度來看，以色列歷來只占我們業務的不到 1%。我們大約 1/3 的員工位於以色列，其中包括我們的主要研發設施以及部分支援、一般和管理團隊。目前，我們的全球團隊成員中只有很低的個位數百分比被徵召入伍。我們已執行業務應急計劃，以盡量減少對我們業務的影響。目前，我們預計不會對我們的全球營運產生重大影響。

With that, I'd like to turn to Q3 results. We are pleased with the continued strong adoption of Varonis SaaS against continued macro headwinds. Our SaaS transition continues to gain momentum, and this quarter provided additional proof of the numerous benefits to our customers as well as the tailwind to our ARR and cash flow performance.

說到這裡，我想談談第三季的結果。我們很高興看到 Varonis SaaS 在持續的宏觀阻力下繼續被廣泛採用。我們的 SaaS 轉型持續勢頭強勁，本季進一步證明了我們為客戶帶來的眾多好處以及我們的 ARR 和現金流績效的推動力。

As a reminder, ARR, free cash flow and ARR contribution margin are the leading indicators for our business during this transition. The shift from on-prem subscription licenses where approximately 80% of the deal value is recognized upfront to a SaaS model with fully ratable revenue recognition will cause initial headwinds on the traditional income statement metrics as the SaaS mix and conversions of existing customers to SaaS increased. And this quarter's impact was meaningful as the number of existing customers converting to SaaS again increased. However, these headwinds are a function of accounting treatment and are not indicative of the health of our business. In fact, the greater these accounting-related headwinds are, the better it is for our business as it means the transition is progressing at a faster pace.

提醒一下，ARR、自由現金流和ARR邊際貢獻是我們業務在此轉型期間的領先指標。隨著SaaS 組合和現有客戶向SaaS 的轉換增加，從約80% 的交易價值預先確認的本地訂閱授權到完全可評估收入確認的SaaS 模式的轉變，將為傳統損益表指標帶來最初的阻力。隨著轉向 SaaS 的現有客戶數量再次增加，本季的影響意義重大。然而，這些不利因素是會計處理的結果，並不代表我們業務的健康狀況。事實上，這些與會計相關的阻力越大，對我們的業務就越好，因為這意味著轉型正在以更快的速度進展。

Our third quarter SaaS mix represented 59% of new business and net new upsell ARR versus our guidance of 45%. And after only 3 quarters into the transition, SaaS now represents approximately 15% of the company's total ARR.

我們第三季的 SaaS 組合佔新業務和淨新追加銷售 ARR 的 59%，而我們的指導值為 45%。轉型僅 3 個季度後，SaaS 目前約占公司總 ARR 的 15%。

The average deal sizes realized in Q3 continued to provide us with confidence in the 25% to 30% pricing uplift and margin structure that we previously provided. In the third quarter, a significant amount of SaaS deals were sold to new customers, but we again saw an increase in existing customers converting to our SaaS offering.

第三季實現的平均交易規模繼續讓我們對先前提供的 25% 至 30% 的定價提升和利潤結構充滿信心。第三季度，大量 SaaS 交易出售給新客戶，但我們再次看到轉向我們 SaaS 產品的現有客戶增加。

In the third quarter, we had approximately $10 million in conversions of existing customers, impacting our Q3 revenue. To be clear, this is the renewal amount that was previously booked as an on-prem subscription that is now SaaS, which causes a headwind to our reported revenue and operating margin but does not impact ARR or free cash flow. The $10 million from this quarter does not include the uplift that we realized from these conversions, which is accretive to ARR and free cash flow. As we look to our revenue guidance for the fourth quarter, we're now assuming that approximately $12 million of existing customer renewals will convert to SaaS in Q4, which is up from $10 million previously.

第三季度，我們現有客戶的轉換約為 1,000 萬美元，影響了我們第三季的營收。需要明確的是，這是以前作為本地訂閱（現在是 SaaS）預訂的續訂金額，這對我們報告的收入和營業利潤率造成不利影響，但不會影響 ARR 或自由現金流。本季的 1000 萬美元不包括我們從這些轉換中實現的提升，這會增加 ARR 和自由現金流。當我們展望第四季的營收指引時，我們現在假設大約 1,200 萬美元的現有客戶續約將在第四季度轉換為 SaaS，高於先前的 1,000 萬美元。

In the third quarter, ARR grew 16% year-over-year to $517.5 million. Year-to-date, we generated $46 million of free cash flow, which was up from $0.8 million over the same period last year, reflecting the inherent leverage in our model as well as our commitment to balancing top line growth with improving cash flow generation.

第三季度，ARR 年增 16%，達到 5.175 億美元。年初至今，我們產生了 4,600 萬美元的自由現金流，高於去年同期的 80 萬美元，反映了我們模型中固有的槓桿作用以及我們平衡營收成長與改善現金流產生的承諾。

In Q3, we continued to see a macro environment that was similar to the first half of the year. We're still seeing deal scrutiny and longer sales cycles across the board, which is impacting customer purchasing patterns and is constraining our near-term results. We expect these longer deal cycles to continue along with the associated budgetary scrutiny, and our updated guidance takes this into consideration.

第三季度，我們繼續看到與上半年相似的宏觀環境。我們仍然看到全面的交易審查和更長的銷售週期，這正在影響客戶的購買模式並限制我們的近期業績。我們預計這些較長的交易週期將與相關的預算審查一起繼續下去，我們更新的指南也考慮到了這一點。

Turning now to our third quarter results in more detail. Before I get into the numbers, let me remind you of what we've said for a while now. ARR, free cash flow and ARR contribution margins are the leading indicators for this transition. We take our commitments to the Street seriously, and our revenue guidance is based on a combination of our expected SaaS mix and existing customer conversion. As we said previously, the faster we progress throughout the transition, the more headwinds we will experience to our traditional income statement metrics. We view these headwinds in a positive light as they show our customers are adopting our SaaS solution more rapidly.

現在更詳細地討論我們的第三季業績。在我討論這些數字之前，讓我先提醒一下我們已經說過一段時間的話了。 ARR、自由現金流和ARR邊際貢獻是這項轉變的領先指標。我們認真對待對華爾街的承諾，我們的收入指引是基於我們預期的 SaaS 組合和現有客戶轉化的結合。正如我們之前所說，我們在整個轉型過程中進展得越快，我們傳統的損益表指標就會遇到更多的阻力。我們積極看待這些不利因素，因為它們表明我們的客戶正在更快地採用我們的 SaaS 解決方案。

Q3 total revenues were $122.3 million, down 1% year-over-year. During the quarter, as compared to the same quarter last year, we had approximately a 12% headwind to our year-over-year revenue growth rate as a result of having increased SaaS sales in our booking mix, which are recognized ratably versus the upfront recognition of our on-prem subscription product. Subscription revenues were $97.7 million, and maintenance and services revenues were $24.6 million as our renewal rates were again over 90%.

第三季總營收為 1.223 億美元，年減 1%。在本季度，與去年同期相比，由於我們的預訂組合中 SaaS 銷售額的增加，我們的同比收入增長率大約下降了 12%，與前期相比，這一銷售額得到了顯著的認可。對我們的本地訂閱產品的認可。訂閱收入為 9,770 萬美元，維護和服務收入為 2,460 萬美元，因為我們的續訂率再次超過 90%。

Moving down the income statement. I'll be discussing non-GAAP results going forward. Gross profit for the third quarter was $106.7 million, representing a gross margin of 87.3% compared to 88.3% in the third quarter 2022 despite significant revenue headwind, which were largely offset by greater efficiency on our SaaS platform than we initially expected. Operating expenses in the third quarter totaled $101.9 million.

將損益表向下移動。我將繼續討論非公認會計原則的結果。儘管營收逆風很大，但第三季的毛利為1.067 億美元，毛利率為87.3%，而2022 年第三季為88.3%，這在很大程度上被我們SaaS 平台比我們最初預期更高的效率所抵消。第三季營運費用總計 1.019 億美元。

As a result, third quarter operating income was $4.9 million or an operating margin of 4%. This compares to operating income of $9.8 million or an operating margin of 7.9% in the same period last year. During the quarter, as compared to the same quarter last year, we had approximately an 11% headwind to our operating margin as a result of having increased SaaS sales in our booking mix, which are recognized fully ratable versus the upfront recognition of our on-prem subscription products.

結果，第三季營業收入為 490 萬美元，營業利潤率為 4%。相較之下，去年同期的營業收入為 980 萬美元，營業利益率為 7.9%。在本季度，與去年同期相比，由於預訂組合中SaaS 銷售的增加，我們的營業利潤率下降了約11%，與我們的線上預訂的預先認可相比，這些銷售被認為是完全可評估的. Prem 訂閱產品。

Third quarter ARR contribution margin was 11.1%, up from 3.6% last year. The significant leverage improvement even during the early stages of the transition reflects our ability to drive strong incremental margin while growing ARR and transitioning to SaaS.

第三季 ARR 貢獻率為 11.1%，高於去年的 3.6%。即使在轉型的早期階段，槓桿率的顯著改善也反映了我們在增加 ARR 和過渡到 SaaS 的同時推動強勁的利潤增量的能力。

During the quarter, we had financial income of approximately $8 million, driven primarily by interest income on our cash deposits and investments in marketable securities. Net income for the third quarter of 2023 was $10.4 million or $0.08 per diluted share compared to a net income of $6.7 million or net income of $0.05 per diluted share for the third quarter of 2022. This is based on 126.7 million diluted shares outstanding and 126.9 million diluted shares outstanding for Q3 2023 and Q3 2022, respectively.

本季度，我們的財務收入約為 800 萬美元，主要由現金存款和有價證券投資的利息收入推動。 2023 年第三季的淨利潤為1,040 萬美元，即稀釋後每股收益0.08 美元，而2022 年第三季的淨利潤為670 萬美元，即稀釋後每股收益0.05 美元。這是基於1.267 億稀釋後流通股和 126.9 股稀釋後股票。2023 年第三季和 2022 年第三季分別發行 100 萬稀釋後流通股。

As of September 30, 2023, we had $731.5 million in cash, cash equivalents, short-term deposits and marketable securities. For the 9 months ended September 30, 2023, we generated $49 million of cash from operations compared to $8.4 million generated in the same period last year. CapEx was $2.9 million compared to $7.6 million last year.

截至 2023 年 9 月 30 日，我們擁有 7.315 億美元的現金、現金等價物、短期存款和有價證券。截至 2023 年 9 月 30 日的 9 個月，我們從營運中產生了 4,900 萬美元的現金，而去年同期產生了 840 萬美元。資本支出為 290 萬美元，而去年為 760 萬美元。

During the third quarter, we repurchased 1.2 million shares at an average purchase price of $30.10, which completed our intended share repurchase. Over the course of the program, we repurchased approximately 4.4 million shares at an average purchase price of $22.64 for a total consideration of approximately $100 million.

第三季度，我們以平均購買價格30.10美元回購了120萬股股票，完成了我們預定的股票回購。在這個計畫過程中，我們以平均購買價格 22.64 美元回購了約 440 萬股股票，總代價約為 1 億美元。

Turning to our guidance in more detail. We're raising our full year SaaS mix of new business and upsell ARR guidance to 55%, up from 50% previously, and we expect Q4's SaaS mix to be 60%. We continue to take a prudent approach in building our SaaS mix outlook as the dollar value of deals we expect to close in the fourth quarter is the largest of the year, which is in line with historical trends. In Q4, we're assuming that $12 million of renewal will convert to SaaS, which will serve as a headwind to revenue. Conversions to SaaS before considering any uplift to deal sizes do not impact ARR. Our guidance continues to factor in the same level of macro headwinds that we've discussed at length in the past.

更詳細地轉向我們的指導。我們將全年新業務和追加銷售的 SaaS 組合 ARR 指引值從先前的 50% 提高到 55%，我們預計第四季的 SaaS 組合將達到 60%。我們在建立 SaaS 組合前景時繼續採取謹慎的態度，因為我們預計第四季度完成的交易的美元價值是今年最大的，這符合歷史趨勢。在第四季度，我們假設 1200 萬美元的續約將轉換為 SaaS，這將成為收入的阻力。在考慮增加交易規模之前轉換為 SaaS 不會影響 ARR。我們的指引繼續將我們過去詳細討論過的宏觀阻力考慮在內。

Now turning to our guidance. For the fourth quarter of 2023, we expect total revenues of $150 million to $154 million, representing growth of 5% to 8%; non-GAAP operating income of $25 million to $27 million; and non-GAAP net income per diluted share in the range of $0.22 to $0.24. This assumes 126.1 million diluted shares outstanding.

現在轉向我們的指導。 2023年第四季度，我們預計總營收為1.5億至1.54億美元，成長5%至8%；非公認會計準則營業收入為 2,500 萬美元至 2,700 萬美元；非 GAAP 稀釋每股淨利潤在 0.22 美元至 0.24 美元之間。假設稀釋後的已發行股票為 1.261 億股。

For the full year 2023, we now expect ARR of $535 million to $539 million, representing growth of 15% to 16%; free cash flow of $40 million to $45 million, which includes $8 million to $10 million of headwind related to the TCJA capitalization of R&D provisions; total revenues of $495 million to $499 million, representing growth of 5%; non-GAAP operating income of $26.5 million to $28.5 million; non-GAAP net income per diluted share in the range of $0.31 to $0.33. This assumes 126.6 million diluted shares outstanding.

對於 2023 年全年，我們目前預計 ARR 為 5.35 億至 5.39 億美元，成長 15% 至 16%；自由現金流為 4,000 萬至 4,500 萬美元，其中包括與 TCJA 研發撥備資本化相關的 800 萬至 1,000 萬美元逆風；總收入從 4.95 億美元增至 4.99 億美元，成長 5%；非公認會計準則營業收入為 2,650 萬美元至 2,850 萬美元；非 GAAP 稀釋每股淨利在 0.31 美元至 0.33 美元之間。假設稀釋後的已發行股票為 1.266 億股。

In summary, we continue to see solid demand for both new and existing customers who wish to consume Varonis through our SaaS platform. As a result, our transition continues to move quickly, and approximately 15% of our total ARR is now coming from SaaS. This is benefiting our ARR performance and cash flow generation, which positions us for a strong fourth quarter.

總而言之，我們繼續看到希望透過我們的 SaaS 平台使用 Varonis 的新客戶和現有客戶的強勁需求。因此，我們的轉型繼續快速推進，目前我們總 ARR 的大約 15% 來自 SaaS。這有利於我們的 ARR 業績和現金流生成，使我們能夠在第四季度實現強勁成長。

With that, we would be happy to take questions. Operator?

這樣，我們很樂意回答問題。操作員？

(Operator Instructions) Our first question comes from the line of Saket Kalia with Barclays.

（操作員說明）我們的第一個問題來自 Saket Kalia 與巴克萊銀行的聯繫。

Okay. Great. I just want to send our thoughts to the Varonis team and their families in Israel.

好的。偉大的。我只想向 Varonis 團隊和他們在以色列的家人表達我們的想法。

Thank you.

謝謝。

Thank you.

謝謝。

Absolutely. If I stick to one question, maybe I'll make it for you here, Yaki. It just seems like great traction on SaaS. For those customers that are moving to your SaaS tools, what are you seeing on usage of the different modules? Are you seeing any change in usage now that the tools are arguably easier to deploy and use?

絕對地。如果我堅持一個問題，也許我會在這裡為你解答，Yaki。 SaaS 似乎有著巨大的吸引力。對於那些正在轉向您的 SaaS 工具的客戶，您對不同模組的使用有何看法？由於這些工具可以說更容易部署和使用，您是否看到使用方面發生了任何變化？

Well, we see just a dramatic change. We see what we call robotic value proposition. And it's -- the North Star was always what we call 10% of the effort, order of magnitude, more value. This works according to plan. We can measure everything from installation to update to remediation, our ability to deal with threats. And the other thing, we also build the ability of our people via our professional services to support the customer with much more ease. We can provide a lot of the value of the platform with the customer almost doing nothing, just very, very little in helping in terms of configuration. So just completely different value proposition, literally unleashing robots to solve this problem.

好吧，我們看到了一個巨大的變化。我們看到了所謂的機器人價​​值主張。北極星始終是我們所謂的 10% 的努力、一個數量級、更多的價值。這按計劃進行。我們可以衡量從安裝到更新再到補救的一切，以及我們應對威脅的能力。另一方面，我們也透過專業服務培養員工的能力，以更輕鬆地為客戶提供支援。我們可以提供平台的許多價值，而客戶幾乎什麼都不做，只是在配置方面提供非常非常少的幫助。所以只是完全不同的價值主張，從字面上釋放機器人來解決這個問題。

Our next question comes from the line of Hamza Fodderwala with Morgan Stanley.

我們的下一個問題來自哈姆扎·福德瓦拉 (Hamza Fodderwala) 與摩根士丹利 (Morgan Stanley) 的對話。

Yaki, I wanted to dig in a little bit more about your commentary around generative AI. I think a lot of the CIOs and CISOs that we're talking to more recently are talking about our data security and governance is a big hurdle to deploying these large language models. And I'm curious, to what extent are you starting to have conversations with customers on how they can deploy these generative AI models in a way that can prevent things like data leakage or poisoning from occurring?

Yaki，我想進一步深入了解您對生成人工智慧的評論。我認為最近與我們交談的許多 CIO 和 CISO 都在談論我們的資料安全和治理是部署這些大型語言模型的一大障礙。我很好奇，您在多大程度上開始與客戶討論如何部署這些生成式人工智慧模型，以防止資料外洩或中毒等事情發生？

I think that it's going to be a complete game changer. The reality is that we still haven't seen it completely, but just the initial release of stuff like Copilot for Business, I think essentially what it does, it's mining all the data that people can access. And this is not me saying Microsoft are saying that 90% of the access controls are excessive. You don't need them. So you have these tools that's leveraging large language models that's going and mining massive amounts of data, creating tremendous high-value information products that are completely out of policy.

我認為這將徹底改變遊戲規則。現實是，我們還沒有完全看到它，但只是像 Copilot for Business 這樣的東西的原始版本，我認為它本質上是做什麼的，它正在挖掘人們可以訪問的所有數據。我並不是說微軟說 90% 的存取控制是過度的。你不需要它們。因此，您擁有這些工具，它們利用大型語言模型來挖掘大量數據，從而創建完全不符合政策的巨大高價值資訊產品。

So now thinking about it, if I take your credentials and 90% of the data you can access is not relevant for you and you have these AI tools that are extremely sophisticated that's creating this highly valuable data, I just think that very soon what you will see is that organizations understand that they need to make sure that they have access control, data auditing and classification in place in order to make sure they can realize productivity gains and avoid disaster.

所以現在想想，如果我拿走你的憑證，你可以存取的90% 的數據與你無關，而你擁有這些非常複雜的人工智慧工具，可以創建這些非常有價值的數據，我只是認為你很很快就會發生什麼將會看到的是，組織明白他們需要確保他們有適當的存取控制、資料審計和分類，以確保他們能夠實現生產力提升並避免災難。

So this is something that we're starting to see that customers are talking about it, that all the customers are talking about it. And I really believe that Varonis is the foundation to make sure that you can -- that you would be able to use these AI-based products.

所以我們開始看到客戶都在談論它，所有的客戶都在談論它。我真的相信 Varonis 是確保您能夠使用這些基於人工智慧的產品的基礎。

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

我們的下一個問題來自 RBC Capital 的 Matt Hedberg。

Congrats on the results, and we send our thoughts and prayers to all the Varonis employees around the globe and in Israel. Yaki, maybe as a follow-up to Hamza's question. I think in the prepared remarks, you said you don't expect to sell a separate gen AI SKU at this point. I'm curious, could that change in the future? And then maybe secondarily, as you're having these initial conversations with customers, how do you think it could impact deal sizes longer term?

祝賀結果，我們向全球和以色列的所有 Varonis 員工致以我們的思念和祈禱。 Yaki，也許是哈姆札問題的後續。我認為在準備好的評論中，您說過您不希望此時出售單獨的 gen AI SKU。我很好奇，未來這種情況會改變嗎？其次，當您與客戶進行初步對話時，您認為這會如何影響長期的交易規模？

So it's -- definitely, it can change. If you think what we are doing with our AI, one thing is that you can use the product with just natural language, which means that you don't need to learn syntax, which is tremendous. The second thing, really, if you look at the metadata that we are collecting, we are the only company in the world that has this metadata, what we call data-oriented threat detection and response. And you can take a regular IT person, and he now has the assistant to be world-class threat detection person. But with time, maybe we will monetize it, but it's -- for us, the best way to monetize it is to sell the platform.

所以，它肯定會改變。如果你認為我們正在用人工智慧做什麼，一件事是你可以只使用自然語言來使用該產品，這意味著你不需要學習文法，這是巨大的。第二件事，實際上，如果你看看我們正在收集的元數據，我們是世界上唯一擁有此元數據的公司，我們稱之為面向數據的威脅檢測和回應。你可以拿一個普通的IT人員來說，他現在的助手是世界級的威脅偵測人員。但隨著時間的推移，也許我們會將其貨幣化，但對我們來說，貨幣化的最佳方式是出售平台。

And this is really answering your -- the other part of your question. Initial deal is great, but I really think that the way that we can grow ARR is in our customer base. I think that it's significant, and what we are seeing now is just the tip of the iceberg. We're starting to have stability in the overall transition to a completely different usage, able to leverage the unique data that we have to AI be the foundation for really the digital world to make sure that it can be prepared and benefit AI in a secure way. And then we'll decide if we are going to monetize this model. But at this point, we want to make sure that we have so much to sell to our customers, but it will be very easy for them to use it and to gain value.

這確實回答了你問題的另一部分。最初的交易很棒，但我真的認為我們增加 ARR 的方法是我們的客戶群。我認為這很重要，而我們現在看到的只是冰山一角。我們開始在向完全不同用途的整體過渡中保持穩定性，能夠利用我們擁有的獨特數據來將人工智慧作為真正數位世界的基礎，以確保它可以做好準備並以安全的方式使人工智慧受益。方式。然後我們將決定是否要透過該模型獲利。但在這一點上，我們希望確保我們有很多東西可以賣給我們的客戶，但他們會很容易使用它並獲得價值。

Our next question comes from the line of Brian Essex with JPMorgan.

我們的下一個問題來自摩根大通的布萊恩‧艾塞克斯 (Brian Essex)。

Our thoughts are with you and your families in Israel as well. Just wanted to dig in a little bit towards -- maybe for Yaki, what you're seeing in the pipeline, particularly with regard to previous commentary reflecting elongated sales cycles and the impact of deals in flight as you -- or as those customers assess moving to SaaS instead of term. Maybe if you can help us understand the impact in the quarter and then how much visibility into the pipeline. What was growth like? And how much confidence that gives you into your ability to execute in the last quarter of the year here?

我們也與您和您在以色列的家人同在。只是想深入了解一下 - 也許對於 Yaki 來說，您在管道中看到的內容，特別是之前的評論，反映了銷售週期延長以及飛行中的交易對您或客戶評估的影響轉向 SaaS 而不是術語。也許您可以幫助我們了解本季的影響以及管道的可見性。成長是什麼樣的？您對今年最後一季的執行能力有多大信心？

We see very healthy pipeline across the board. And the other thing that we're starting to see is that organizations understand that data protection is inevitable. It's actually our first frontier and your last resort. If you don't protect data, whatever, it will never be protected. And if everything else that you are doing will fail, it's the only thing that we save you.

我們看到整個管道都非常健康。我們開始看到的另一件事是，組織意識到資料保護是不可避免的。這實際上是我們的第一個前沿，也是您最後的手段。如果您不保護數據，無論如何，它永遠不會受到保護。如果你所做的其他一切都失敗了，這是我們唯一能拯救你的事情。

And I also think that many organizations didn't attack it head on because it was hard to do. And with the robotic value proposition that we are building, they understand that they can do it. And if you look at really enterprise projects, we can gain immediate time to value and ongoing value in a completely automated way. So I just think that -- I'm spending a lot, a lot of time with customers these days, and I definitely see that people understand that they need sophisticated data security platforms and the only way that they can do it is automation, and we are very well positioned to take [these budgets].

我還認為，許多組織沒有正面攻擊它，因為它很難做到。透過我們正在建立的機器人價​​值主張，他們知道他們可以做到。如果您看看真正的企業項目，我們可以以完全自動化的方式立即實現價值並持續創造價值。所以我只是認為 - 這些天我花了很多很多時間與客戶在一起，我確實看到人們明白他們需要複雜的數據安全平台，而他們能做到這一點的唯一方法就是自動化，並且我們完全有能力接受[這些預算]。

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

我們的下一個問題來自 Joel Fishbein 與 Truist 的對話。

Also thoughts and prayers with all of you. I wanted to just follow up on the new SEC reporting rules and if you are seeing it -- your customers starting to ask questions about them. And also, is that a potential driver to your pipeline and new business?

也與大家一起思考和祈禱。我想跟進新的 SEC 報告規則，如果您看到它 - 您的客戶開始提出有關它們的問題。而且，這是否是您的通路和新業務的潛在驅動力？

It's definitely a potential driver. What we see all around is that people understand that they need to protect data. I think that in the last few years, organizations spent a fortune on security. And a lot of them get not such great return on investment. You have a lot, a lot of security around the perimeter. And at the end of the day, if you will dissect the most breaches, they are happening from an insider that is a user or someone stole a credential and acting like a user and really inflicting the damage on the data stores.

這絕對是一個潛在的司機。我們所看到的是，人們明白他們需要保護資料。我認為在過去幾年中，組織在安全性上投入了大量資金。而且他們中的許多人並沒有獲得如此豐厚的投資回報。你的周邊有很多很多的安全措施。歸根結底，如果您仔細分析大多數違規行為，您會發現這些違規行為是由內部人員（使用者）或竊取憑證並像使用者一樣行事並真正對資料儲存造成損害的人發生的。

Attacks can come from anywhere and any device but only going in one direction, and it's the data that's essentially the most valuable assets that most organizations have and the most vulnerable one. So the SEC regulation is just another one, just inevitable. You want to have cybersecurity. You need to protect data. So this is really where we are and what we see, and definitely, every regulation is helping.

攻擊可以來自任何地方、任何設備，但只能朝一個方向進行，而資料本質上是大多數組織擁有的最有價值的資產，也是最脆弱的資產。因此，美國證券交易委員會的監管只是另一項監管，而且是不可避免的。您想要網路安全。您需要保護資料。所以這確實是我們所處的情況和我們所看到的，毫無疑問，每項法規都在提供協助。

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

我們的下一個問題來自瑞銀集團的羅傑·博伊德。

Great. Congrats on another very strong quarter of SaaS adoption. I don't think investors should be too surprised to see Varonis outperforming on a transition time line. But just given the success you're seeing with SaaS and meaningful outperformance on mix expectations and conversions, any update to how you're thinking about the timing of Phase 2 of the transition? And why not lean further into a more active plan to convert existing customers?

偉大的。恭喜 SaaS 採用率又一個非常強勁的季度。我認為投資者看到 Varonis 在過渡時間內表現出色並不應該感到太驚訝。但考慮到您在 SaaS 方面所取得的成功以及在混合預期和轉換方面的顯著優異表現，您對過渡第二階段的時間安排有何更新？為什麼不進一步製定更積極的計劃來轉化現有客戶呢？

I think that question can be broken into 2. One is the overall time line, and the second part is Phase 2. When we think about kind of the overall time line, I think with a 5% SaaS increase versus last quarter, when you think about that math and kind of the way it extrapolates going forward, it definitely makes sense to reconsider our time line, and that's something that we talked about last quarter that we would revisit our guidance for that at year-end, and we plan to do that.

我認為這個問題可以分為2 個部分。第一個部分是總體時間線，第二部分是第二階段。當我們考慮總體時間線時，我認為與上季度相比，SaaS 增長了5%，當你考慮數學以及它推斷未來的方式，重新考慮我們的時間表絕對是有意義的，這是我們上個季度討論過的事情，我們將在年底重新審視我們的指導，我們計劃去做。

I think overall, when you think about the transition, it's moving very fast. We're very happy to have 15% of our ARR coming from SaaS in just 3 quarters. That's -- it's happening fast because our customers and our sales force are adopting it very, very positively. So we definitely look forward to providing more color on that part in our next earnings call.

我認為總的來說，當你考慮這種轉變時，你會發現它的進展非常快。我們很高興在短短 3 個季度內就有 15% 的 ARR 來自 SaaS。這就是——它發生得很快，因為我​​們的客戶和我們的銷售人員正在非常非常積極地採用它。因此，我們絕對期待在下一次財報電話會議中提供更多關於這部分的內容。

In terms of Phase 2, when you think about kind of the conversion of the installed base, and that's how we define Phase 2, it hasn't begun yet. But we are increasing the number that we expect in terms of conversion in Q4 to $12 million. And that's gone up from $10 million that we guided last quarter. And when you think about the Q3 number, we actually came in at $10 million, which is a really high number as you think about it. And it's very positive but still a very small percentage of our existing customer base.

就第二階段而言，當您考慮安裝基礎的轉換時，這就是我們定義第二階段的方式，它還沒有開始。但我們將第四季的轉換金額預期增加至 1,200 萬美元。這比我們上季度指導的 1000 萬美元有所增加。當你想到第三季的數字時，我們實際上獲得了 1000 萬美元，這是一個非常高的數字。這是非常正面的，但在我們現有的客戶群中仍然只佔很小的比例。

So as much as we're seeing very strong adoption that's happening in a natural way, we haven't prioritized it yet, but we plan to do that next year. So I think overall, as we look at the progression of the transition, it's been really positive, and we hope to continue to move in that pace going forward.

因此，儘管我們看到以自然的方式得到了非常廣泛的採用，但我們還沒有優先考慮它，但我們計劃明年這樣做。因此，我認為總的來說，當我們看到過渡的進展時，這是非常積極的，我們希望繼續以這種速度前進。

Our next question comes from the line of Andrew Nowinski with Wells Fargo.

我們的下一個問題來自富國銀行的安德魯‧諾溫斯基 (Andrew Nowinski)。

Okay. I think last quarter, your guidance was for SaaS to account for about 45% of that new and upsell business because of the expected contribution from the U.S. federal deals. So I guess given how much higher SaaS was relative to your guidance this quarter, is it fair to assume that the Fed demand was not as strong as you expected? And if so, what happened to those deals?

好的。我認為上個季度，由於美國聯邦交易的預期貢獻，你們的指導是 SaaS 佔新業務和追加銷售業務的 45% 左右。因此，我想考慮到 SaaS 相對於您本季的指導要高出多少，可以假設聯準會的需求沒有您預期的那麼強勁嗎？如果是這樣，這些交易發生了什麼？

So the growth driver this quarter was overall the enterprise business. And when you look at the 59%, it was driven by the enterprise business. It's a strong reflection of how customers in the enterprise business are adopting SaaS. When you look at the federal industry as a whole, we definitely see the opportunity there, but it's still small mid-single-digit percentages out of ARR. But when we look at the opportunity, we feel very confident about our ability to grow there.

因此，本季的成長動力是整體企業業務。當你看到 59% 的時候，你會發現它是由企業業務驅動的。這強烈反映了企業業務中的客戶如何採用 SaaS。當您將聯邦行業視為一個整體時，我們確實看到了其中的機會，但它在 ARR 中所佔的百分比仍然很小，只有中個位數。但當我們看到這個機會時，我們對自己在那裡成長的能力非常有信心。

Our next question comes from the line of Fatima Boolani with Citi.

我們的下一個問題來自花旗銀行的法蒂瑪·布爾尼 (Fatima Boolani)。

Our prayers are with you and the entire employee base in the conflict zone. Yaki, a question for you, a bigger picture one, actually. We've been hearing a lot about data protection, data security posture management and sort of all these new monikers that are coming up as well as more traditional backup, and recovery vendors on the infrastructure side talk a lot about the importance of data protection and data recovery. I wanted to get your perspective on how you are interfacing with buyers as buying psychology changes around data protection. I wanted to get your sense of how those conversations are changing for you, if at all, and if these sort of changes in the competitive landscape are benefiting you in a way, in providing a spotlight to what you've been saying all along with respect to the importance of data protection.

我們為您和衝突地區的全體員工祈禱。 Yaki，問你一個問題，實際上是一個更大的問題。我們已經聽到很多關於資料保護、資料安全態勢管理和所有這些即將出現的新名稱的內容，以及基礎設施方面的更傳統的備份和復原供應商談論了很多關於資料保護和復原的重要性。數據恢復。我想了解您對於如何在資料保護方面的購買心理髮生變化時與買家互動的看法。我想讓你了解這些對話對你來說有什麼變化（如果有的話），以及競爭格局的這些變化是否在某種程度上使你受益，讓你專注於你一直在說的話。尊重資料保護的重要性。

I think that we just don't see the backup and business continuity and data protection. We are much more on data security. And -- but it's just -- people understand that they need to protect valuable data. Regarding posture management and all of this stuff, I think that organizations understand very well that this is the first time that we are benefiting from other people doing marketing.

我認為我們只是沒有看到備份、業務連續性和資料保護。我們更加關注資料安全。而且——但這只是——人們明白他們需要保護有價值的數據。關於姿勢管理和所有這些東西，我認為組織非常清楚這是我們第一次從其他人行銷中受益。

And in order to solve the problem, you really need these 3 use cases and you need a metadata. And it's something that is very hard to do. And everything really eventually in order to solve the problem, you need to be under one umbrella of the data security platform. We think with most breaches, people are doing this lateral movement between data stores, and we need to enrich the data.

為了解決這個問題，您確實需要這 3 個用例，並且需要元資料。這是一件非常難做到的事。而一切最終為了解決問題，都需要處於資料安全平台的保護之下。我們認為，大多數違規行為都是人們在資料儲存之間進行橫向移動，我們需要豐富資料。

So we definitely see that the marketplace understands that they need one big platform. You need to be able to classify in one place and then a repository to do it at scale, to have the profile of our people and identities are using data and to be able to do remediation in a very reliable, automated way. So we definitely see that everything that is happening in the ecosystem are benefiting us, and we are very excited to have tailwind from the marketing that other vendors do.

因此，我們肯定看到市場明白他們需要一個大平台。您需要能夠在一個地方進行分類，然後在一個儲存庫中進行大規模分類，獲得正在使用資料的人員和身分的概況，並能夠以非常可靠、自動化的方式進行修復。因此，我們確實看到生態系統中發生的一切都使我們受益，我們非常高興能夠從其他供應商的行銷中受益。

Our next question comes from the line of Chad Bennett with Craig-Hallum.

我們的下一個問題來自查德·貝內特和克雷格·哈勒姆的對話。

So just on -- I know it's early, but just in terms of kind of the type of customer converting from on-prem subscription to SaaS, I think you've talked before about that 25% to 30% uplift. But -- and I think you gave a couple of examples on the call already. But is there any commonality in terms of where the on-prem subscription customer is in their license journey when they're converting? And is there -- are you seeing significant cross-sell/upsell on that conversion from a license standpoint? Or is the hope obviously like a lot of conversion stories that once you get them to SaaS like-for-like product, that whole cross-sell upsell just becomes easier and kind of accelerated?

所以，我知道現在還為時過早，但就從本地訂閱轉換為 SaaS 的客戶類型而言，我想您之前已經談到過 25% 到 30% 的提升。但是——我想你已經在電話會議上舉了幾個例子。但是，本地訂閱客戶在轉換時處於授權旅程的哪個階段，有什麼共同點嗎？從許可的角度來看，您是否看到該轉換有顯著的交叉銷售/追加銷售？還是希望明顯像許多轉換故事一樣，一旦你讓他們使用 SaaS 同類產品，整個交叉銷售追加銷售就會變得更容易並且有點加速？

I think that's a very good question. And when you -- well, I'll start by saying that the SaaS offering is so much better for our customers that it's a no-brainer for them. And we're seeing that with the amount of conversions that are happening in a natural way. When conversions happen, we can get an uplift in the number of licenses that they buy because we're selling the platform. They don't have the opportunity to buy individual licenses. We can get an uplift in the fact that the number of users goes up, and we can get an uplift in their ability to consume more of the product.

我認為這是一個非常好的問題。當你——好吧，我首先要說的是，SaaS 產品對我們的客戶來說要好得多，這對他們來說是理所當然的。我們看到以自然方式發生的轉換量也是如此。當轉換發生時，我們可以增加他們購買的許可證數量，因為我們正在出售該平台。他們沒有機會購買個人許可證。我們可以因為用戶數量的增加而得到提升，並且我們可以得到他們消費更多產品的能力的提升。

It really depends on the situation of the customer, where they are in terms of the renewal, whether they want to speed it up or wait for the actual renewal date to come to place. So it's very individual. But at the end of the day, once we get them to the SaaS offering, their ability to see value and the simplicity of the usage of the product gives us a tremendous opportunity to continue to sell them more and more licenses.

這實際上取決於客戶的情況，他們在續約方面處於什麼位置，是想加快速度還是等待實際續約日期到來。所以它非常有個性。但歸根結底，一旦我們讓他們使用 SaaS 產品，他們看到價值的能力和產品使用的簡單性就為我們提供了巨大的機會，可以繼續向他們出售越來越多的授權。

So I would say there's no one straight answer on how it happens. But at the end of the day, it just works in our favor to get them to SaaS with good confidence in our pricing methodology as we see it so far.

所以我想說，對於它是如何發生的，沒有一個直接的答案。但歸根結底，讓他們對我們迄今為止所看到的定價方法充滿信心地使用 SaaS，這對我們有利。

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

我們的下一個問題來自羅布歐文斯和派珀桑德勒的對話。

I was curious if you could comment on just what the channel response has been regarding the move to SaaS. And are you getting the breadth of channel participation that you would hope in new transactions?

我很好奇您能否評論一下頻道對轉向 SaaS 的反應。您是否在新交易中獲得了您希望的管道參與廣度？

Yes. It's -- the channel reaction is usually just in direct correlation to the customer reaction. So definitely, they understand that it's much easier to sell. And it requires significantly less professional services, and this is something that they will need to adapt to. We just -- it's -- the whole thing of this platform is tremendous automation, but we're definitely getting a lot of help with the channel to take this [large language] model.

是的。渠道反應通常與客戶反應直接相關。所以毫無疑問，他們知道銷售要容易得多。而且它需要的專業服務要少得多，這是他們需要適應的。我們只是——這個平台的整個過程是巨大的自動化，但我們肯定在採用這個[大語言]模型的管道上得到了很多幫助。

Our next question comes from the line of Jason Ader with William Blair.

我們的下一個問題來自傑森·阿德爾和威廉·布萊爾的對話。

I wanted to ask you on -- first, a clarification. You said a 12% headwind to revenue growth in Q3, I believe. That's 12 percentage points, correct?

我想問你——首先，澄清一下。我相信，您說過第三季營收成長將面臨 12% 的阻力。那是 12 個百分點，對嗎？

Correct.

正確的。

Okay. And then just on the -- kind of following up on the channel question, can you remind us how you go to market? How much is direct? How much is indirect? And then where are you seeing the most success right now in terms of finding new customers?

好的。然後，關於通路問題的後續行動，您能提醒我們您是如何進入市場的嗎？直達多少錢？間接是多少？那麼，在尋找新客戶方面，您目前在哪些方面看到了最大的成功？

So we sell 100% through channel, but our outside sales force really does all the heavy lifting of doing the risk assessment, talking to the customers, explaining where the risks are. So the channel helps us in getting the meeting, and they help us in closing the deal, but all the hard work in between is done by our outside sales force. When we look at the opportunity with our SaaS offering, it opens up new markets. It opens up new territories. It opens up new industries to basically new customer opportunities that we didn't have before.

因此，我們 100% 透過通路銷售，但我們的外部銷售人員確實承擔了風險評估、與客戶交談、解釋風險所在等所有繁重工作。因此，管道幫助我們召開會議，他們幫助我們完成交易，但其間的所有艱苦工作都是由我們的外部銷售人員完成的。當我們看到 SaaS 產品的機會時，它開闢了新的市場。它開闢了新的領域。它為新行業開闢了新的客戶機會，這是我們以前沒有的。

And all of the reception that we have to date received on the SaaS offering has been positive, and we expect that to continue as we kind of really went through the toughest part of the transition, kind of clearing through the pipeline and now introducing every new customer with a quote that is SaaS only and not really on-prem subscription as we had in the past. So I think overall, we're very well positioned to take advantage of that opportunity going forward.

到目前為止，我們收到的有關SaaS 產品的所有反饋都是積極的，我們預計這種情況會繼續下去，因為我們確實經歷了轉型中最艱難的部分，清理了管道，現在推出了每一個新產品。客戶的報價僅為 SaaS，而不是像我們過去那樣真正的本地訂閱。因此，我認為總體而言，我們處於非常有利的位置，可以充分利用這一機會。

Our next question comes from the line of Joseph Gallo with Jefferies.

我們的下一個問題來自約瑟夫·加洛和傑弗里斯的對話。

Appreciate the AI commentary. You guys have a large M365 footprint. Can you just give us an updated size and growth profile of that business? And then maybe just to be clear, given the rollout of Copilot this week, does your existing solution capture that opportunity now? Or is it more just that you guys are perfectly positioned to capture that opportunity long term?

欣賞AI的評論。你們的 M365 足跡很大。您能否提供我們該業務的最新規模和成長概況？然後也許需要澄清的是，考慮到本週 Copilot 的推出，您現有的解決方案現在是否抓住了這個機會？或者更重要的是，你們完全有能力把握這個長期機會？

Regarding the product in terms of preparing an organization for AI, it's already here. So it's just the basic Varonis value proposition, understand what data is critical, make sure that only the right people can access the right data, alert and stop any abnormal behavior. It's the basic. Without it, you can't use it in a secure way, and this is 100% us.

至於為人工智慧做好組織準備的產品，它已經在這裡了。因此，這只是 Varonis 的基本價值主張，了解哪些數據至關重要，確保只有正確的人員才能存取正確的數據，發出警報並阻止任何異常行為。這是基本的。沒有它，您就無法以安全的方式使用它，而這是 100% 我們的。

And just to touch on the first part of the question, when we look at the Office 365 contribution, it's definitely become a significant tailwind for us going forward. But if you go back to our Investor Day in March, we actually showed in one of the slides there that our penetration within the overall 365 opportunity was -- at the time in March, it was 1%. Hasn't grown too much since then. So when you think about the opportunity going forward, there's so much for us to capitalize on, and we see the reception of our customers very positive when we sell that license.

就問題的第一部分而言，當我們看到 Office 365 的貢獻時，它肯定成為我們前進的重要動力。但如果你回到 3 月的投資者日，我們實際上在其中一張幻燈片中顯示，我們在 365 個整體機會中的滲透率是——在 3 月的時候，它是 1%。從那時起就沒有成長太多。因此，當你想到未來的機會時，我們有很多可以利用的機會，當我們出售該許可證時，我們看到客戶的反應非常積極。

Our next question comes from the line of Rudy Kessinger with D.A. Davidson.

我們的下一個問題來自魯迪·凱辛格 (Rudy Kessinger) 和 D.A.戴維森。

Guy, what was SaaS as a percentage of the mix if you exclude federal in Q3? And then just how much higher is federal as a percentage of new and upsell ARR in Q3 relative to Q4 and the other quarters?

蓋伊，如果您在第三季度排除聯邦，SaaS 在組合中所佔的百分比是多少？那麼，與第四季和其他季度相比，第三季聯邦政府在新增和追加銷售 ARR 中所佔的百分比究竟高出多少？

So like I said before, the actual driver this quarter was the enterprise business, and that's really what drove the 59%. To remind you, we're not FedRAMP certified yet. So we didn't have SaaS sales that were sold under the federal business, but we do expect to have FedRAMP for next year's cycle, which can become a significant opportunity for us. .

正如我之前所說，本季的實際驅動力是企業業務，這才是 59% 的真正驅動力。提醒您，我們尚未獲得 FedRAMP 認證。因此，我們沒有在聯邦業務下銷售 SaaS，但我們確實預計明年的周期會有 FedRAMP，這對我們來說可能是一個重要的機會。 。

And when you think at the overall opportunity from a new business and an upsell in that market, we fit like a glove to that type of use case. The amount of malicious actors that have happened only in the last couple of months has been tremendous, and our product sits there very, very nicely. And we feel that we can capitalize on that opportunity and grow our ARR coming from that industry going forward.

當您考慮新業務和該市場追加銷售的整體機會時，我們就像手套一樣適合這種類型的用例。僅在過去幾個月中發生的惡意行為者數量就非常巨大，而我們的產品在那裡非常非常好。我們認為我們可以利用這個機會並提高我們來自該行業的 ARR。

Our next question comes from the line of Joshua Tilton with Wolfe Research.

我們的下一個問題來自沃爾夫研究中心的約書亞·蒂爾頓。

I'll just say my thoughts and prayers are with your employees and just all the people of Israel. I'm actually going to sneak in 2.5 questions really quickly. My first question is just, how should we think about the implied Q4 net new ARR seasonality? And are the macro impacts baked into 4Q worse than they were a quarter ago? And on the AI front, which is my second question, why won't Microsoft offer these capabilities? And if so, do you expect this to bring you into more competition with them going forward?

我只想說，我的思念和祈禱與你們的員工以及所有以色列人民同在。實際上我會很快地偷偷提出 2.5 個問題。我的第一個問題是，我們應該如何看待隱含的第四季淨新 ARR 季節性？第四季的宏觀影響是否比一個季度前更嚴重？在人工智慧方面，這是我的第二個問題，為什麼微軟不提供這些功能？如果是這樣，您是否認為這會讓您在未來與他們展開更多競爭？

So in terms of Microsoft, we are the only truly company in the world today that's taking 3 streams of metadata, the permissions, the content and the activity to build these robots for rightsized access. So we just -- we need to build completely different type of solutions in order to do that. So I just think that we can, for a long time, leverage our moat and maintain tremendous competitive advantage in the space.

因此，就 Microsoft 而言，我們是當今世界上唯一一家真正採用 3 個元資料流、權限、內容和活動來建立這些機器人以進行適當存取的公司。因此，我們需要建立完全不同類型的解決方案才能做到這一點。因此，我認為我們可以在很長一段時間內利用我們的護城河並在該領域保持巨大的競爭優勢。

And when we kind of think about the guidance, our philosophy hasn't changed. So we're definitely thinking about the guidance in the same way that we've talked about it throughout the year. I think in terms of where we are in Q3, we definitely saw things stabilize compared to previous quarters, and that's a good sign for us. But our assumptions in terms of guidance have stayed the same. And we think that we are set up well for having our large Q4 in terms of seasonality. We don't see any change compared to the on-prem subscription.

當我們思考指導時，我們的理念並沒有改變。因此，我們肯定會以與我們全年討論的方式相同的方式來考慮該指導。我認為就我們第三季的情況而言，與前幾季相比，我們確實看到情況趨於穩定，這對我們來說是一個好兆頭。但我們在指導方面的假設保持不變。我們認為，就季節性而言，我們已經做好了第四季的準備。與本地訂閱相比，我們沒有看到任何變化。

So SaaS should be the largest quarter. Q4 should continue to be the largest quarter of the year, as it has been in previous years. Obviously, from a revenue recognition perspective, it does change because it's ratable, but you've heard me talk millions of times about the fact that ARR, free cash flow and ARR contribution margins are the right metrics for this transition. And especially in Q4, they should be viewed as the leading indicators of the business.

所以SaaS應該是最大的季度。與往年一樣，第四季應該繼續是今年最大的季度。顯然，從收入確認的角度來看，它確實發生了變化，因為它是可評級的，但你已經聽我數百萬次談論這樣一個事實：ARR、自由現金流和ARR邊際貢獻是這一轉變的正確指標。尤其是在第四季度，它們應該被視為業務的領先指標。

Our next question comes from the line of Shebly Seyrafi with FBN Securities.

我們的下一個問題來自 FBN Securities 的 Shebly Seyrafi。

So your headcount really was flattish in terms of growth in Q1 and Q2. And it looks like it grew around 50, which is a decent pace for the first time in like a year. So my question is, is this a sign that the environment is better for you? You talked about deal scrutiny, et cetera. But at least is it better, and therefore, you're hiring more? And related to this, talk about your headcount growth expectations going forward.

因此，就第一季和第二季的成長而言，你們的員工人數確實持平。看起來增長了 50 左右，這是一年來第一次出現這樣的增長速度。所以我的問題是，這是否表明環境對你來說更好了？您談到了交易審查等等。但至少它是更好的，因此，你正在僱用更多人？與此相關，談談您對未來員工人數成長的預期。

It's -- we know how to do this transition, and it was very important for us when we did it just to be focused on just the right moving parts to make sure that it will work. We definitely see just more stability in the transition. And despite the economic headwinds, we definitely see that there is just inevitable demand for data security.

我們知道如何進行這種轉變，當我們這樣做時，專注於正確的移動部件以確保它能夠發揮作用，這對我們來說非常重要。我們肯定會看到過渡過程中更加穩定。儘管存在經濟逆風，但我們確實看到對資料安全的需求是不可避免的。

This is something that the organizations need, and we have a lot of pipeline in what we can do in terms of road map of features and products, a massive total available market. So we need to cover it with sales force and make sure that our customers succeed, and we keep building the organization. So the business is performing, and we are investing against a massive opportunity.

這是組織所需要的，而且我們在功能和產品路線圖方面有很多可以做的事情，這是一個巨大的可用市場。因此，我們需要用銷售人員來覆蓋它，確保我們的客戶成功，並且我們不斷建立組織。因此，業務正在表現良好，我們正在針對巨大的機會進行投資。

And if you go back to our last quarter's earnings call, you could hear in the commentary that we talked about the fact that we're hiring. So obviously, the fact that we grew the headcount was part of our planning. We want to continue to increase the head count, but we obviously want to do it in the right way. And we want to make sure that we generate increased productivity, and I think we can do that going forward.

如果你回顧我們上個季度的財報電話會議，你可能會在評論中聽到我們談論了我們正在招聘的事實。顯然，我們增加員工人數是我們計劃的一部分。我們希望繼續增加員工數量，但顯然我們希望以正確的方式做到這一點。我們希望確保提高生產力，我認為我們可以繼續做到這一點。

So it's a balancing act of increasing headcount at the right pace, in the right positions, in the right locations, but also improving our leverage as we have done when you look at kind of the fact that the ARR contribution margin is now 11.1%, an increase of 750 basis points year-over-year, which is pretty significant.

因此，這是一種平衡行為，既要以正確的速度、在正確的職位、在正確的地點增加員工人數，又要提高我們的槓桿率，正如我們所做的那樣，當你看到ARR 貢獻率現在為11.1% 的事實時，同比增長750個基點，這是相當可觀的。

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

我們的下一個問題來自 Shrenik Kothari 和 Robert W. Baird。

Again, thoughts and prayers to your entire team out there. Just a follow-up to the previous Microsoft question. Yaki, you mentioned about the tailwinds and the growth runway in implementing the access controls and governing policies. And there was a previous question on the competitive advantage versus Microsoft as well. .

再次向你們的整個團隊致以思念和祈禱。只是前一個 Microsoft 問題的後續。 Yaki，您提到了實施門禁管制和管理政策的順風和成長跑道。之前還有一個關於相對於微軟的競爭優勢的問題。 。

Just trying to understand, of course, as the significance of data security rises, as we just pointed out, and especially in the realm of generative AI, which -- where you're anticipating kind of more traction, particularly for data access, governance, is this the right way to think that Varonis is kind of focusing on a comprehensive data protection platform including data security, access control, governance versus what Microsoft is offering, just kind of more narrow kind of DLP?

當然，正如我們剛才指出的那樣，隨著資料安全重要性的上升，尤其是在生成人工智慧領域，您預計會有更多的吸引力，特別是在資料存取、治理方面，只是想了解一下，這樣認為Varonis 專注於全面的資料保護平台（包括資料安全、存取控制、治理）與Microsoft 提供的（只是一種更狹隘的DLP）相比，這是正確的方式嗎？

And this urgency around data security, and of course, with respect to the data protection tailwinds, like is this the competitive advantage that you guys have? And is that the right way to think about the competitive dynamic from your perspective? I have a quick follow-up there as well.

這種圍繞著資料安全的迫切性，當然，還有資料保護的順風，這就是你們所擁有的競爭優勢嗎？從您的角度來看，這是思考競爭動態的正確方法嗎？我也在那裡進行了快速跟進。

Yes. It's essentially completely different. What we're just giving you, automated outcomes regarding the access control classification and threat detection. We have very little features that overlap and a lot of very good synergy to work with the way that they can label for DLP, as you mentioned, and other stuff. And -- but it's different. We actually work very well with them, and we have a very good partnership regarding the generative AI, which is the foundation, the building blocks.

是的。本質上是完全不同的。我們剛剛為您提供有關門禁控制分類和威脅檢測的自動化結果。正如您所提到的，我們有很少的功能重疊，並且有很多非常好的協同作用，可以與他們標記 DLP 的方式以及其他東西一起工作。而且——但情況有所不同。實際上，我們與他們合作得很好，並且在生成人工智慧方面我們有著非常好的合作夥伴關係，這是基礎、建構模組。

If you want to use generative AI in the right way and not to introduce a lot of risk and can end up in disaster, you need to use our solution to make sure that you are ready. So this is -- except of all the AI features that we can deliver using technologies in large language models, we are the foundation to make sure that businesses can use it in order to extract value from the [data].

如果您想以正確的方式使用生成式人工智慧，而不是引入大量風險並最終導致災難，那麼您需要使用我們的解決方案來確保您做好準備。所以，除了我們可以使用大型語言模型中的技術提供的所有人工智慧功能之外，我們是確保企業可以使用它來從[數據]中提取價值的基礎。

Our next question comes from the line of Hugh Cunningham with TD Cowen.

我們的下一個問題來自 Hugh Cunningham 和 TD Cowen 的對話。

I'll echo that everyone here on our team, our thoughts and prayers are with you and your families, your friends and your coworkers at Varonis. I do have 2 quick ones. First one is the 25% to 30% uplift that we're talking about, that's just on pricing of subscription versus SaaS. That doesn't include any assumptions that you mentioned before, more licenses, users go up, anything like that?

我謹代表我們團隊中的每個人，我們的思念和祈禱與您和您的家人、您的朋友以及您在 Varonis 的同事同在。我確實有2個快速的。第一個是我們談論的 25% 到 30% 的提升，這只是相對於 SaaS 的訂閱定價。這不包括您之前提到的任何假設，更多許可證，用戶增加，類似的事情？

Apples to apples only, so yes.

蘋果對蘋果，所以是的。

Okay. And then these conversions of existing customers, are these taking place at the end of their existing contracts? What I'm trying to figure out here is if -- when you quote a number, $10 million or $12 million, that number includes a sort of accelerated recognition for the initial period in that subscription. Is that right?

好的。那麼現有客戶的這些轉換是在他們現有合約結束時發生的嗎？我在這裡想弄清楚的是，當您引用一個數字（1000 萬美元或 1200 萬美元）時，該數字是否包括對該訂閱初始階段的某種加速認可。是對的嗎？

No. That relates only to the deals within the quarter.

不。這僅與本季內的交易有關。

Our next question comes from the line of Brian Colley with Stephens.

我們的下一個問題來自布萊恩·科利和史蒂芬斯的對話。

Can you talk about how the SaaS platform has impacted the pipeline for new logos as well as sales cycles for those new customers? I'm just curious if you're seeing an acceleration in new logo adds or sales cycles.

您能否談談 SaaS 平台如何影響新商標的管道以及這些新客戶的銷售週期？我只是好奇您是否看到新徽標添加或銷售週期的加速。

So I can tell you, when we look at the new customer adds, we've definitely seen positive signs this quarter. And I think that as we look at our ability to sell SaaS to new customers, as I said in one of my previous answers before, it opens up opportunities that we didn't have before with the on-prem subscription. So I think overall, the signs that we're seeing are healthy and positive and definitely gives us the ability to show value.

所以我可以告訴你，當我們查看新客戶的增加時，我們肯定在本季度看到了積極的跡象。我認為，當我們審視向新客戶銷售 SaaS 的能力時，正如我在先前的一個答案中所說，它為我們提供了以前透過本地訂閱所沒有的機會。所以我認為總的來說，我們看到的跡像是健康和積極的，並且絕對讓我們有能力展示價值。

I said before, we're kind of past this challenging part of the transition where we had to, quote/unquote, clean through the pipeline where some of the quotes were introduced to customers in the past as on-prem subscription. Now we're just starting with the SaaS as part of the quote. And it's been very well received by customers because the value of the -- our SaaS product is much greater than the on-prem subscription.

我之前說過，我們已經度過了轉型過程中這個具有挑戰性的部分，我們必須透過管道進行報價/取消報價、清理，其中一些報價過去是作為本地訂閱引入給客戶的。現在我們剛開始將 SaaS 作為報價的一部分。它受到了客戶的廣泛好評，因為我們的 SaaS 產品的價值遠遠大於本地訂閱。

That's the end of our Q&A session. I'd like to hand it back to management for closing remarks.

我們的問答環節到此結束。我想將其交還給管理層以供結束語。

Thanks for your interest in Varonis. Look forward to meeting you all at our conferences this quarter.

感謝您對瓦羅尼斯的興趣。期待在本季的會議上與大家見面。

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路，度過美好的一天。