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CEO Mark McClain stated that large-scale strategic wins are not atypical and often involve displacing a legacy vendor. President Matt Mills added that a strong relationship and education phase preceded the deal, and the customer's pain with their legacy solution led to a relatively short sales cycle once the opportunity was formally initiated.

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CFO Brian Carolan explained that strong term renewals in Q4 boosted results but noted the company is guiding for SaaS to be ~90% of net new product ARR in FY26, creating a near-term headwind for revenue and margins. He highlighted that migrations from the maintenance base continue to be a strong driver, typically yielding a 2-3x uplift in ARR and contributing 3-4% to net retention growth.

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Co-CEO and COO Mark Thurmond explained the caution stems from distractions related to the new administration, including hiring freezes and personnel changes, which create uncertainty around the timing of transactions, though budgets and projects are not being canceled. Co-CEO and CFO Stephen Vintz noted that the public sector is about 15% of total sales, and the full-year model reflects a slightly lower contribution due to this caution.

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CFO and Co-CEO Steve Vintz explained that exposure solutions now represent over 20% of total sales, with the Tenable One platform being the primary growth driver due to strong market demand. He suggested that even a modest increase in the sales mix of Tenable One, currently 30% of total sales, could accelerate overall growth, noting the U.S. Federal market remains a temporary headwind.

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Co-CEO Stephen Vintz explained the caution stems from macro uncertainty, particularly in the U.S. Public Sector, where leadership disruption is causing less visibility and longer procurement cycles. He noted that while top-of-funnel demand is strong, the company is taking a prudent approach. Vintz confirmed that despite the top-line caution, the outlook for operating income and free cash flow is reiterated due to the natural leverage in the business.

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CEO Amit Yoran stated the strong federal quarter played out as expected, without the unusual issues of the prior year. CFO Steve Vintz highlighted consistent margin expansion, reaffirming a long-term target of 35%+ free cash flow margins and expecting several hundred basis points of margin expansion annually.

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CRO Marcus Jewell explained that the sales cycle bottleneck is not a technical or sponsorship issue, but is occurring at the final stage related to the flow of funds. He attributed the delays to significant personnel changes within government agencies and the time required for newly approved budgets to be allocated and processed through procurement systems.

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CEO Yossi Carmil stated that the federal sector constituted about 20% of total business at the end of 2023 and that the new Cellebrite Federal Solutions unit aims to expand the addressable market. Executive Chairman Thomas Hogan explained the CEO search is casting a wide net for the 'best leader possible' without initially over-indexing on specific criteria, focusing on finding a leader to guide the company to over $1 billion in ARR.

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CFO Christiane Ohlgart stated that the services billings-to-revenue conversion takes time, and while they are being prudent with the guide, they are confident in stronger product revenue for the year. She confirmed that customers sometimes consolidate multiple devices into one, which can impact the attach rate, making it critical to upsell other solutions like SASE. CEO Ken Xie added that accelerating product revenue is a leading indicator for future services growth.

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CAO and incoming CFO Christiane Ohlgart explained the sequential decline was primarily due to Q1 having two fewer days than Q4 and a slight lag in recognizing revenue from recent acquisitions. Founder, Chairman, and CEO Ken Xie added that strong FortiGate billing growth, which outpaced overall billing growth, is a positive indicator for future service revenue.

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CAO Christiane Ohlgart explained the guidance includes a significant upsell component and incentives to drive new logos. She stated the current assumption for product revenue growth is around 10%. Regarding the trajectory, she indicated the company expects a more moderate build throughout the year rather than a spike in billings growth in Q4.

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CFO Keith Jensen stated that the end-of-life for these products begins in the second half of 2026, but they expect the refresh cycle to start in 2025 as larger enterprises conduct POCs. He noted the magnitude in 2026 is the largest they've ever seen, significantly larger than a similar lift in 2023, and is unusually dominated by both entry-level and mid-range firewalls. An unnamed executive added that enterprise customers often refresh about a year before end-of-life, while smaller customers wait longer.

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CEO Sumedh Thakar stated there is no set timeline for the CRO hire, as the focus is on finding the right fit for a partner-led strategy. CFO Joo Mi Kim noted that the impact from FX was not material on revenue or expenses during the quarter due to the company's hedging program.

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CEO Nadav Zafrir positioned Quantum as a critical instance within the broader 'connectivity fabric' platform. CFO Roei Golan added that the company is in the middle of the refresh cycle, which has 'huge potential' and is expected to last at least until 2026, driven by both existing customers and competitive replacements.

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CEO Nadav Zafrir explained his focus is on accelerating growth through expanded go-to-market spending, fostering a culture of urgency, and shifting compensation to prioritize ARR and subscriptions. He emphasized that accountability for ambitious targets extends to every employee, including R&D.

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CFO & COO Guy Melamed called the authorization a 'great milestone' but stated it's too early to expect a material impact on Q3 results, noting the federal sector is about 5% of ARR. CEO Yaki Faitelson added that FedRAMP certification is also valuable for commercial sales, as it serves as a testament to the company's high security standards.

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CEO Yaki Faitelson explained that the proliferation of Agentic AI in any environment, including Salesforce, puts the data security problem front and center. He stated that to safely enable AI, organizations need Varonis to automatically right-size permissions and monitor activity, suggesting the need is universal and fundamental, regardless of the specific application.

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CFO and COO Guy Melamed stated that customer benefit is the priority, highlighting that the SaaS product is superior and the MDDR offering is a key value-add available only with SaaS. He noted that for 2025, sales commissions are structured to incentivize conversions while still prioritizing new business. CEO Yaki Faitelson added that the rapid innovation on the SaaS platform and the necessity of automated security for AI makes the move compelling for customers, reducing resistance.

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CEO Yaki Faitelson affirmed that the SaaS platform's value proposition, especially the automated outcomes and MDDR capabilities, creates a strong appetite for conversion among customers. CFO & COO Guy Melamed added that being just under two years into the transition and on track to hit nearly 50% SaaS mix demonstrates the healthy progress, all while significantly increasing free cash flow generation.

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Chairman, President & CEO Arvind Krishna noted that the U.S. federal government's focus is shifting from simple cost-cutting to modernizing agencies with technology and AI. He cited the administration's AI action plan as a positive indicator. Based on high-level conversations with agencies, he expressed enthusiasm and confidence that IBM is viewed as a credible partner for these modernization efforts, providing good visibility into future demand.

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CEO Arvind Krishna expressed confidence in a strong z17 cycle, suggesting that macro volatility can actually pull forward demand from clients seeking capacity and efficiency. He confirmed that IBM has long offered leasing for its hardware via its financing business, which is a standard practice that does not materially impact balance sheet risk. CFO Jim Kavanaugh added that IBM's capital structure and liquidity are strong, allowing it to support clients while preserving the balance sheet for strategic investments.

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CEO George Kurtz reported a great response from both the salesforce and customers, stating the focus is back on innovation, platform consolidation, and the value of offerings like Charlotte AI. He emphasized that customers are eager to expand their relationship with CrowdStrike, as evidenced by the rapid adoption and consumption of FalconFlex licenses.

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CEO George Kurtz addressed the question by highlighting the strategic importance of Identity protection, citing that 79% of modern attacks are non-malware based. He confirmed that Identity and Cloud were popular choices for customers using the Customer Commitment Program (CCP) packages, viewing this as a positive 'seeding' of the customer base that will create renewal and upsell opportunities in the second half of the year as the incentives expire.

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CEO George Kurtz stated that conversations with large customers have centered on CrowdStrike's superior technology and its effective handling of the July incident, which has built trust. He noted that while some churn might occur in the very small MSP segment, the corporate business had its best quarter ever. The primary drivers for adoption remain the platform's ability to stop breaches and lower customers' total operational costs.

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CEO George Kurtz reported that customer conversations have been positive, emphasizing CrowdStrike's transparent response and the continued desire for platform consolidation. He shared an anecdote of winning a next-gen SIEM deal post-incident, stating that customers recognize the value of the platform and want to do more with CrowdStrike.

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CEO Todd McKinnon expressed excitement for 'Auth for GenAI,' a product in developer preview designed for AI agents. Regarding the new MCP protocol, he noted it is very early, but Okta is actively working to integrate OAuth standards. He clarified that Auth for GenAI will use a usage-based pricing model similar to Auth0, while monetization for MCP-related features is to be determined.

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CEO Todd McKinnon explained that longer contract durations are a direct sign of strategic, platform-level commitments from customers. When enterprises decide to replace dozens of legacy identity products with Okta, the conversation shifts from tactical to strategic. These large-scale displacements, often involving a multi-year implementation plan with a GSI partner, naturally lead to longer-term commitments, providing greater visibility.

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CEO Todd McKinnon estimated the majority of new product bookings came from upsells to existing customers, though he noted some significant new logo wins with multi-product suites. He sees the larger opportunity in expanding within the existing base, especially large enterprises. CFO Brett Tighe added that as new products mature, they will increasingly become a vehicle for landing new customers.

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CFO Barbara Larson explained that the company is driving efficiency by realigning teams and making targeted investments in key growth areas like AI, while divesting from non-core areas. She noted investments are focused on AI innovation and strengthening the go-to-market organization.

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CEO Tomer Weingarten explained that while the primary focus for sellers remains on new logo acquisition, the significant upsell and cross-sell opportunity within the customer base will be unlocked more gradually. CFO Barbara Larson clarified that the legal costs were a few million dollars related to past M&A, and the company chose to settle proactively to avoid lengthy litigation.

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CEO Tomer Weingarten stated that while Q2's strong performance was based on organic momentum, the forward-looking pipeline is strengthening. He noted that partners and customers are revisiting expansion plans and considering SentinelOne as the primary alternative to diversify risk. Weingarten clarified that while some customers have already decided to switch, the full impact will play out over longer sales cycles and is not the sole basis for their growth outlook.

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CEO Nikesh Arora explained that product revenue growth is driven by both hardware, which grows steadily at 5-8%, and a significant inflection in the software firewall business. He stated this acceleration is fueled by the AI trend, as customers moving to the cloud to leverage AI models require robust security for cloud traffic, thereby boosting software firewall demand.

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CEO Nikesh Arora explained that the company's platformization strategy provides the harmonized data necessary to build effective AI agents. Chief Product Officer Lee Klarich added that the new Cortex Cloud connects security from code to cloud to SOC, enabling proactive, real-time security. Nikesh Arora concluded that the cloud security market is shifting toward run-time protection with agents, a trend that favors their integrated approach.

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Chairman and CEO Nikesh Arora and Chief Product Officer Lee Klarich responded. Nikesh positioned the integration as critical for the shift towards real-time cloud security (CDR). Lee added that the integration, launched earlier in the year, connects Prisma Cloud's posture data with Cortex's runtime protection, enabling superior threat detection and automated remediation in cloud environments.

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President and CEO John Pagliuca affirmed that demand for cyber resiliency remains a necessity, keeping the pipeline strong despite anecdotal reports of longer deal cycles. EVP and CFO Tim O'Brien suggested the dollar-based net retention rate is likely at a trough, with steady gross retention, and expects improvements to be driven by cross-sell opportunities and a 1-2% pricing increase in 2025.

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President and CEO John Pagliuca described engagement with Adlumin's resellers as 'enthusiastic,' noting they appreciate the backing of a public company and access to N-able's broader portfolio. He detailed Adlumin's competitive advantages, highlighting its cloud-native, AI-powered architecture, its endpoint-agnostic capabilities, and its unique ability to separate the XDR software from MDR services, offering more visibility than 'black box' competitors.

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CEO John Pagliuca stated that the MSP channel remains healthy, with a vast majority planning for growth driven by security and disaster recovery demand. EVP and CFO Tim O'Brien explained that G&A cost levels are sustainable, while sales and marketing expenses are expected to grow in line with revenue going forward. He also noted that capitalized commissions contributed to the year-over-year reduction in S&M spend.

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CEO Jay Chaudhry explained that Zscaler offers flexibility, providing its own AI-powered data classification on-the-fly and for data-at-rest, while also integrating with third-party solutions. He emphasized that Zscaler's position in the traffic path makes it the natural policy enforcement point. This strategy is driving strong growth, with data protection ACV up 40% year-over-year.

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CEO Jay Chaudhry explained that the Avalor acquisition provided the foundational data fabric for new SecOps offerings like Risk360 and unified vulnerability management. He emphasized that Zscaler's key differentiator is its access to this massive, proprietary dataset, which is essential for training effective AI models for advanced capabilities like breach prediction and threat hunting, something competitors without the data cannot replicate.

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CEO Jagtar Chaudhry responded that in enterprise cybersecurity, 'good enough' solutions are not acceptable. He emphasized that Zscaler's ability to demonstrate clear ROI by eliminating numerous point products like firewalls and VPNs is a powerful tool to justify cost and close deals, effectively countering competitive pricing pressures. He noted that new and upsell business has actually accelerated.

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CEO Eric Friedrichsen stated he is pleased with early results from the new strategy, noting the 9% growth in customers spending over $100k. He clarified the main change was freeing up sellers from account management duties rather than a major headcount shift, and that the team is adequately staffed. Regarding guidance, he explained the range reflects the timing uncertainty of when the strategic shift will fully impact results, but he believes there is significant upside from focusing on large customers.

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CEO Eric Friedrichsen highlighted strong early feedback for Cecilia AI, noting its security features are designed to encourage adoption in the conservative legal industry. He shared an anecdote of a large firm calling it "light years ahead" of competitors but cautioned that it will not have a material revenue impact in the near term. Regarding profitability, Friedrichsen stated the primary goal is accelerating growth, with revenue expected to outpace expense growth next year through strategic resource shifts rather than just adding costs, putting the company on a path to sustainable profitability.

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CEO Corey Thomas explained that geographic performance varies, with Europe and APAC showing strength last year while North America faced weaker budget cycles. He clarified that the expected improvement in North America for 2025 is not based on a macro recovery but on having a full year to sell a more robust and expanded product portfolio. He emphasized that trends are highly specific to industries and sub-regions rather than broad, continent-level dynamics.

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CEO Corey Thomas stated he does not believe the partner mix is the primary contributor to longer deal cycles. Instead, he attributed the elongation to the significant increase in the average size of deals in their pipeline. He explained that larger deals inherently face more budget scrutiny in the current environment, and the company's focus on larger D&R deals through partners has shifted the pipeline mix accordingly.

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CEO Matt Cohen reported that sales training began immediately, with strong pipeline already being built for the next year. He highlighted unexpectedly high demand from partners for training, noting the full impact on growth will likely materialize through 2025 due to typical sales cycles. CFO Joshua Siegel confirmed there would be no material deferred revenue write-down from the acquisition.

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