The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Mike Cikos - Needham & Company, LLC - Analyst
: Great. Thanks for taking the question, guys, and great quarter here as far as the execution. I wanted to come back to some of the prepared remarks.
I think David, it might have been you who is talking about the recurring revenue contribution. Really appreciate the 55% of total revenue statistic,
which I think is big for investors. Can you just help give us a better sense as far as the sources for the recurring revenues? And then I know that we
have a 55% of total revenue today. Can you help us think about how that 55% was maybe a year ago or a quarter ago? Just so we have something
Question: Mike Cikos - Needham & Company, LLC - Analyst
: Got it. Thank you for that. I wanted to just highlight two other pieces here. So first, the CRPO remains strong for the organization, right? And I think
that's -- if I'm reading the tea leaves here, that's probably what gives you the confidence to be taking up the full-year guidance. And I guess the
question that I have is more around the RPO and the sequential decline we saw.
So first, the sequential decline, can you remind us, is that more of a -- based on seasonality for the business? And then the second piece on RPO.
So first, is it tied to seasonality? And then second, with RPO, are you seeing customers maybe increasingly shift towards shorter-term contract
durations? Did that in any way come into play when we think about that RPO metric?
Question: Mike Cikos - Needham & Company, LLC - Analyst
: That's great. Really appreciate the color from both of you today. Thank you. I'll turn it over to my colleagues.
Question: Peter Levine - Evercore ISI Institutional Equities - Analyst
: Thank you guys for taking my questions. Elad, you made a comment earlier on in your script around investments in North America. Maybe just
help us understand who you're replacing, what is the go-to market? Is it any different in North America than it would be in other markets that you
compete in? Just kind of give us an understanding of the investments you're making today in North America, the replacements, and are the sales
cycle buying process is any different?
Question: Peter Levine - Evercore ISI Institutional Equities - Analyst
: I don't know if you could down maybe a two-part question is: can you share with us what your net retention rates look like? And then second, on
the investigative analytics side, in terms of AI, help us understand how are you monetizing AI. Is it more -- Is it an upsell? Is it a retention tool? Just
kind of walk us through with the new AI innovations that you're coming out with, how you're pricing that? And then second, if you could share
with us net retention rates.
Question: Peter Levine - Evercore ISI Institutional Equities - Analyst
: Thank you, guys, for taking my questions.
Question: Shaul Eyal - TD Cowen - Analyst
: Hi, good afternoon, guys, and congrats on execution and improved result. Elad, we've seen the majority of these companies under coverage, those
that are slightly more cybersecurity focused, really reporting healthy government and federal-related vertical results. And I'm translating that to
your improved results. Seems as if we're seeing a little bit of the spending coming ahead of the seasonally strong September federal quarter. So
just maybe help us understand how is it that you're seeing the market? And what has been driving what seems to be an across-the-board healthy
federal spending thus far?
Question: Shaul Eyal - TD Cowen - Analyst
: Thank you very much.
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