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: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Jason, for you, I'm wondering if you -- is there any way for you to quantify the impact of some of these slowed or delayed cloud
implementations in the quarter? And have any of them closed in Q3? Or are you expecting some of these to sort of maybe push out
into next year -- next fiscal year?
Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst
: Got it. Super clear. And then I think what gets missed in all this is this is becoming a much more efficient company. And you beat on
profitability, taking cash flow up a bit. I think you outlined some of the cost-cutting things that you're looking at. And I think what's
important is you don't think any of it is going to impact top line growth. I'm wondering if you could -- if you could sort of like talk
about the time frame for some of these cost cuts because -- is it multiple years? Is it this year? Just sort of -- any sort of sense for like
where we are in that kind of that cost synergy equation.
Question: Steven Richard Koenig - SMBC Nikko Securities America, Inc., Research Division - Analyst
: I've got one for Gary, and then I've got a follow-up for Jason on financials. So Gary, the macro is affecting a lot of companies, not just
Splunk. And it tends to be in different areas. And sometimes, it's the newer areas of their business where they aren't as established.
I'm wondering for Splunk, this -- you've been on the board for a while, and you've seen this. This isn't the first time that Splunk has
seen some variability in terms of customers expanding in cloud or migrating to cloud. It has happened previously. And I'm wondering,
what can Splunk do to get customers off the dime on Splunk Cloud and get those migrations and expansions accelerating? And
then I have one follow-up, if you don't mind.
Question: Steven Richard Koenig - SMBC Nikko Securities America, Inc., Research Division - Analyst
: Got it. Great. And then for you, Jason, just help me square your commentary that cloud expansions were lighter than expected as
well as migrations with the metric you gave on cloud dollar-based net retention was 129%, which is really only 1 point lower than
last quarter. So maybe help me square those things.
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