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01/10 19:38
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary reflects strong financial performance with 23% revenue growth and robust international expansion. The company shows promising AI integration and platform adoption, with a positive outlook for ARR and operating margins. The $200 million share repurchase authorization indicates confidence in the business. While Q&A reveals concerns about longer sales cycles, management expects improved trends and highlights competitive advantages in AI and cloud-native solutions. Overall, the positive financial metrics, strategic initiatives, and shareholder returns suggest a positive stock price movement.
EPS $0.02 EPS, unchanged year-over-year.
Revenue $229 million, grew 23% year-over-year, driven by strong demand and expansion in international markets.
International Revenue Grew 27%, representing 38% of quarterly revenue, contributing to overall revenue growth.
Total ARR $948 million, grew 24% year-over-year, reflecting strong platform adoption and market share gains.
Customers with ARR of $100,000 or more 1,459 customers, grew 22% year-over-year, indicating strong customer retention and expansion.
Average Deal Size (ARR per customer) Expanded double digits year-over-year, highlighting platform momentum.
Remaining Performance Obligations $1.2 billion, grew 33% year-over-year, indicating strong future revenue visibility.
Gross Margin 79%, unchanged year-over-year, maintaining industry-leading status.
Operating Margin Negative 2%, improved over four percentage points year-over-year, driven by scale and cost discipline.
Free Cash Flow Margin 20%, a record for the quarter, reflecting strong cash generation.
Cash, Cash Equivalents, and Investments Increased to $1.2 billion, providing flexibility for growth and shareholder value.
Share Repurchase Authorization $200 million open-ended program announced, reflecting confidence in long-term business trajectory.
New Product Launch: Introduced the unified cloud security suite, integrating multiple cloud security functions into a single solution powered by AI.
Product Innovation: Launched Purple AI Athena, the next evolution of Purple AI, aimed at delivering an end-to-end agentic AI platform for cybersecurity.
AI SIEM Offering: Data solutions surpassed $100 million of ARR, addressing challenges faced by large enterprises.
Market Expansion: Revenue growth of 23%, with international markets growing 27%, representing 38% of quarterly revenue.
Customer Base Growth: Customer base expanded with 1,459 customers having ARR of $100,000 or more, a 22% increase.
Federal Sector Growth: Achieved FedRAMP high authorization for multiple products, enhancing presence in the federal market.
Operational Efficiency: Achieved a record free cash flow margin of 20% and maintained a gross margin of 79%.
Cost Discipline: Operating margin improved to negative 2%, with a focus on operational efficiency and margin expansion.
Strategic Shift: Transitioning from a product-centric sales approach to a platform sales strategy to enhance growth.
Partnership Development: Launched Partner One program to deepen engagements with MSSPs, VARs, and technology partners.
Macro Economic Uncertainty: Heightened macro uncertainty observed in April impacted Q1 net new ARR, leading to elongated sales cycles as some customers paused spending decisions.
Regulatory Challenges: Near-term uncertainty around federal budget allocation and spending persists, which may affect deal timelines in the public sector.
Competitive Pressures: As AI-driven threats grow more sophisticated, the need for autonomous security solutions increases, putting pressure on the company to continuously innovate and adapt.
Supply Chain Challenges: No specific supply chain challenges were mentioned, but the overall economic environment may pose indirect risks.
Market Dynamics: The cybersecurity market is undergoing a transformation, requiring companies to adapt quickly to new standards and technologies, which may present challenges for maintaining competitive advantage.
Revenue Growth: Q1 revenue growth of 23% with expectations of approximately $242 million in Q2, and full-year revenue guidance of $996 million to $1 billion, representing 22% growth.
Free Cash Flow Margin: Achieved a record free cash flow margin of 20% in Q1, with expectations to exceed operating margin for the full year by several percentage points.
Customer Growth: Total ARR grew 24% to $948 million, with customers having ARR of $100,000 or more growing 22% to 1,459.
Product Innovation: Launched Partner One program for MSSPs and introduced the unified cloud security suite, enhancing customer access and platform adoption.
Market Positioning: Achieved FedRAMP high authorization for multiple products, enhancing competitive differentiation in the public sector.
Share Repurchase Authorization: Announced a $200 million open-ended share repurchase authorization to support shareholder value.
Q2 Revenue Guidance: Expecting revenue of approximately $242 million for Q2, driven by sequential net new ARR growth.
Full-Year Revenue Guidance: Full-year revenue expected to be between $996 million and $1 billion.
Gross Margin Outlook: Expect Q2 gross margin to remain at approximately 79%, with full-year gross margin between 78.5% and 79.5%.
Operating Margin Outlook: Expect Q2 operating margin to be breakeven, with full-year operating margin between positive 3% and 4%.
Investment Strategy: Focus on transformative innovation in AI, data, cloud, and automation while enhancing operational efficiency.
Share Repurchase Authorization: $200 million open-ended share repurchase authorization announced, reflecting confidence in long-term business trajectory and belief that current stock price does not fully reflect underlying fundamentals.
The earnings call highlights strong financial performance with 22% revenue growth, improved margins, and a raised full-year revenue outlook. Positive developments include strategic investments, robust AI and data solutions growth, and promising Flex deals. Despite lighter guidance due to macroeconomic factors, the overall sentiment is optimistic with stable net retention rates, strategic M&A plans, and no significant disruptions from competitors. These factors suggest a likely positive stock price movement.
The earnings call highlights strong financial performance with 22% revenue growth, record free cash flow margin, and a high gross margin. Strategic initiatives, such as AI innovations and the PartnerOne program, coupled with a significant share repurchase plan, bolster investor confidence. The Q&A section reveals positive analyst sentiment and potential growth from new offerings like Flex and Prompt AI. Despite some prudence in guidance, the overall outlook remains optimistic with continued growth and strategic partnerships, justifying a positive sentiment rating.
The earnings call summary reflects strong financial performance with 23% revenue growth and robust international expansion. The company shows promising AI integration and platform adoption, with a positive outlook for ARR and operating margins. The $200 million share repurchase authorization indicates confidence in the business. While Q&A reveals concerns about longer sales cycles, management expects improved trends and highlights competitive advantages in AI and cloud-native solutions. Overall, the positive financial metrics, strategic initiatives, and shareholder returns suggest a positive stock price movement.
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