John Gomez

John Gomez of Scotiabank asked about the biggest lever for reaccelerating ARR growth back to double digits, questioning the role of gross expansion versus retention. He also asked how the mix of net new ARR from expansion versus new customers is expected to trend.

Answer

CEO Jennifer Tejada identified the primary lever for growth as retaining and expanding strategic enterprise customers by ensuring they achieve value realization. She emphasized the tremendous untapped white space within the existing customer base, indicating that while new lands are important, the core focus is on growing the largest accounts.

John Gomes, on for Nick Altmann, asked for the primary driver of longer deal cycles and for the underlying assumptions for SMB ARR performance in the second half of the year.

Answer

CEO Jennifer Tejada responded that she views longer sales cycles positively, as they result in larger, stickier, multi-product deals that strengthen the business long-term. CFO Howard Wilson addressed the SMB outlook, stating they expect the bulk of growth to come from enterprise and mid-market, with the SMB segment remaining a headwind in the second half, even with some signs of stabilization.