Net New ARR Growth
Q: What's driving strong net new ARR growth?
A: Our net new subscription ARR grew over 20% sequentially, reaching $856 million in ARR, up 46% year-over-year. This was driven by strong execution, secular demand for cyber resilience solutions, and favorable large transactions, with twice the ARR from $1 million-plus deals compared to Q1 FY2024.

Outlook and Guidance Prudence
Q: Any timing elements to consider for ARR guidance?
A: We had an exceptional quarter benefiting from large transactions. However, being early in the year and with potential uncertainty ahead, including an election year, we remain prudent with our guidance and confident in our outlook.

Market Share Gains
Q: Where are market share gains coming from?
A: We're gaining share across both legacy competitors and newer vendors due to our differentiated solution and unique platform. Our win rate against both is very high, and we're winning the vast majority of deals.

Impact of Competitor Consolidation
Q: Does competitor consolidation affect your win rate?
A: We see the merger of competitors as positive for us. Historically, merging a growth company with a legacy platform hasn't succeeded, and we expect confusion around the merger to benefit us.

Large Deal Pipeline
Q: How does the large deal pipeline look ahead?
A: We're becoming more strategic with large customers, with average selling prices increasing quarter-over-quarter. We added 15 customers to our $1 million-plus count this quarter, up from 99 to 114. While timing can vary, the contribution of large transactions to our pipeline is increasing.

Demand in Uneven Macro Environment
Q: How is demand amid macro volatility?
A: Despite the uneven macro environment, we're not seeing significant impact on demand. Customers have a sense of urgency for cyber recovery solutions, and we're experiencing significant strength in demand.

Subscription Gross Margin Drivers
Q: What drives subscription gross margins?
A: Gross margin and operating leverage are the two drivers. With the exit of the hardware business, gross margins are in the long-term range of 75% to 80%. We're gaining leverage across R&D, sales and marketing, and expect benefits of scale in G&A as a public company.

NRR Mix and Outlook
Q: What's the mix of new logos vs. upsell in ARR?
A: We aim for a balance between new customer lands and expansions. Our Net Retention Rate (NRR) benefits from data growth (60%) and security capabilities (40%). As the business scales, NRR may gradually decline without the impact of transitions.

Differentiation of Laminar and DSPM
Q: How does Laminar differ from other DSPM offerings?
A: We combine data security posture management with cyber recovery to deliver complete cyber resilience. Traditional cybersecurity vendors lack cyber recovery capabilities; we're seeing strong demand for DSPM and have had a very strong quarter in this space.

Partnership with Kyndryl
Q: What does the Kyndryl partnership bring?
A: The partnership focuses on helping customers achieve cyber resilience. Kyndryl has a significant practice in this area and targets the upper end of the market, enhancing our reach to large organizations globally.

Ruby AI Demand
Q: What's the demand for Ruby AI?
A: Ruby is our Gen AI agent focused on productivity for IT and security teams. It's a long-term project, already seeing usage in our customer base, and we believe it will drive more adoption of our enterprise edition.

Impact of Cyber Insurance
Q: Is cyber insurance affecting customer behavior?
A: Yes, rising premiums and difficulty obtaining cyber insurance make cyber resilience critical. Our platform helps businesses stay operational despite attacks, and we've partnered with E.ON for joint go-to-market efforts.

Public Sector Opportunities
Q: Update on public sector vertical and certifications?
A: We've achieved StateRAMP certification and our state and local government business remains strong. We're undergoing FedRAMP certification, which we believe will unlock opportunities in the federal market.

Procurement Behavior Across Enterprises
Q: Differences in buying behavior between midsize and large enterprises?
A: We're not seeing significant changes in demand across segments. While procurement processes may involve more scrutiny, the urgency for cyber recovery solutions keeps demand strong.

AI-Driven Data Growth
Q: Is AI-driven data growth a catalyst for you?
A: Yes, AI amplifies demand for securing unstructured data. Along with data security demand and vendor consolidation, these catalysts support our strong market position despite macro unevenness.