Financial Data and Key Metrics Changes - Rapid7 ended 2024 with $840 million in ARR, growing 4% year over year [6][22] - Full year revenue reached $844 million, a 9% increase from the previous year, exceeding guidance [24] - Operating income was $164 million, representing a 19% operating margin, an expansion of over 600 basis points from the prior year [24] - Free cash flow for the year was $154 million, with a free cash flow margin of 18%, an increase of over 800 basis points from the prior year [25] Business Line Data and Key Metrics Changes - The Detection and Response (DNR) business generated over $400 million in ARR, with managed DNR growing in the mid-teens [7][14] - The risk and exposure management business showed over 20% year-over-year growth in pipeline generation during Q4 [7] - ARR per customer grew 2% year over year to approximately $72,000 [23] Market Data and Key Metrics Changes - International revenue grew 14% year over year, accounting for 25% of total revenue, while North America grew 3% and made up 75% of the mix [26] - The total customer base increased by 2% year over year, ending 2024 with over 11,700 customers globally [23] Company Strategy and Development Direction - The company is focusing on innovation in its detection and response offerings, expanding coverage and leveraging AI capabilities [8][10] - Rapid7 is scaling its partner ecosystem, with 80% to 90% of new ARR booked through the channel [8] - The launch of Exposure Command is seen as a significant milestone, validating the integrated approach to attack surface management [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundational work completed in 2024, positioning the company for more consistent execution and sustainable growth [10][12] - The company expects ARR growth of 4% to 6% in 2025, primarily driven by the DNR business [18][29] - Management acknowledged the competitive landscape but emphasized the strategic value of their integrated security operations platform [10][90] Other Important Information - The company plans to reinvest up to $30 million into strategic growth initiatives, including expanding MDR service capabilities and establishing an innovation center in India [20][30] - An Analyst Day is planned for later in the year to provide deeper insights into the business and strategy [21] Q&A Session Summary Question: Clarification on ARR for Detection and Response - Management confirmed that the DNR business is growing in the mid-teens, with the remainder of ARR being a mix of cloud VM and legacy products [34][35] Question: Margin Outlook for Managed DNR - Management indicated that overall product gross margins will remain stable in the mid-seventies, but managed services will have lower gross margins due to labor components [39] Question: Competitive Landscape in Cloud Security - Management highlighted the focus on integrated exposure management to reduce complexity for customers, targeting a broader market [46][47] Question: Confidence in Net New ARR Growth - Management expressed confidence in the pipeline and early conversion rates, expecting improvements in net new ARR throughout the year [74][76] Question: Churn and Downsell Pressure in VM - Management noted that churn in the VM segment is stabilizing, with expectations for improved retention as customers transition to more integrated products [98][99] Question: Strategic Options for Declining ARR - Management is considering all options for the declining ARR segment, focusing on customer pain points and the complexity of managing risk [104][105]

Financial Data and Key Metrics Changes - For the full year 2024, the company reported revenue growth of 10% to $607.6 million, with adjusted EBITDA margin at 47% and net income increasing by 16% to $229 million, resulting in an EPS of $6.13 [21][22]. - In Q4 2024, revenues also grew by 10% to $159.2 million, with free cash flow reaching $41.9 million, representing a 26% margin compared to 22% in the prior year [22][25]. Business Line Data and Key Metrics Changes - Cloud management and cybersecurity asset management combined accounted for 15% of total bookings and 24% of new bookings in 2024 [24]. - The channel contributed 48% of total revenues in Q4, up from 44% a year ago, with revenues from channel partners growing by 18% compared to a 3% growth in direct revenues [22][23]. Market Data and Key Metrics Changes - International revenue growth was 15%, outpacing domestic growth of 7%, with the U.S. and international revenue mix at 58% and 42%, respectively [22][23]. - The company anticipates a stable selling environment in 2025, with ongoing budget scrutiny expected to persist [23]. Company Strategy and Development Direction - The company is focusing on evolving its platform to provide a comprehensive risk analytics and quantification solution, enhancing its strategic relevance and market opportunity [6][8]. - The introduction of the Enterprise TruRisk Management solution aims to set a new standard in proactive cyber risk management, allowing customers to operationalize a modern risk operations center [10][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's market position and growth opportunities, emphasizing the importance of continuous innovation and delivering value to customers [19][20]. - The company expects revenue growth in 2025 to be in the range of $645 million to $657 million, representing a growth rate of 6% to 8% [26][27]. Other Important Information - The company announced a $200 million increase to its share repurchase program, bringing the total available amount for share repurchases to $343.4 million [26]. - The departure of the Chief Revenue Officer is noted, with plans to oversee the sales organization and continue focusing on a partner-first strategy [18][39]. Q&A Session Summary Question: Thoughts on creative packaging opportunities for products - Management indicated that they are exploring feedback from early adopters to enhance broader platform adoption and pricing strategies [31]. Question: Plans for balancing time and hiring key leaders after CRO departure - Management reassured that the sales leadership team is strong and capable, with a focus on execution and partner-oriented strategies [32][34]. Question: Changes expected in sales motion post-CRO departure - Management highlighted a focus on executing sales growth with a strong sales head group and leveraging partnerships for new business [38][39]. Question: Early customer feedback on TotalAI and competitive dynamics - Management noted positive early feedback on TotalAI, emphasizing its unique capability to secure AI workloads and the growing interest from customers [40][44]. Question: Performance in Q4 relative to guidance and expectations - Management explained that better linearity in renewals and invoicing cycles contributed to stronger Q4 performance, while Q1 guidance reflects a more conservative outlook [50][52]. Question: New logo bookings growth expectations for 2025 - Management anticipates weaker growth in new logo bookings for 2025, focusing on partner-led strategies for acquiring new customers [53][55]. Question: Opportunities in the federal vertical - Management expressed excitement about the potential in the federal market, especially with the anticipated FedRAMP High certification [60][61]. Question: Go-to-market strategy for Enterprise TruRisk Management (ETM) - Management emphasized that ETM is a comprehensive solution that enables proactive risk management, with a focus on leveraging partnerships for broader market reach [66][71].

Financial Data and Key Metrics Changes - The company reported a total revenue growth of 17% for Q4 2024, reaching $1.66 billion, with product revenue increasing by 18% to $574 million, marking the highest growth rate in six quarters [11][15]. - Operating margin reached a record 39.2%, reflecting strong gross margins and favorable foreign exchange impacts [17]. - Free cash flow was $380 million, with a free cash flow margin of 23%, up 11 points year-over-year [18]. Business Line Data and Key Metrics Changes - Unified SASE billing grew by 85%, contributing to a 13% growth in total unified SaaS billing, which accounted for 23% of the business [7][12]. - Security operations and unified SASE ARR grew by 32% and 28%, respectively, with combined revenue exceeding $1.5 billion [12][19]. - The company added a record 6,900 new logos in Q4, driven by strong channel partner alignment [11]. Market Data and Key Metrics Changes - EMEA was the best-performing geography with over 25% growth, while government and service provider verticals grew over 20% [15]. - The SMB segment was the top-performing customer segment, achieving over 30% growth [14]. Company Strategy and Development Direction - Fortinet continues to focus on a single vendor SASE strategy, integrating multiple security functions into a single operating system, FortiOS, which enhances user experience and security [7][9]. - The company aims to leverage its unique ASIC technology to drive growth in secure networking and AI-driven security solutions [9][23]. - Fortinet's acquisition of Perception Point aims to enhance its cybersecurity offerings by extending protection beyond email to the entire modern workspace [8]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential within the secure networking space, anticipating that it will surpass traditional networking by 2026 [9]. - The company acknowledged potential challenges from tariffs and geopolitical factors affecting demand, particularly in Latin America and Canada [42][66]. - Management expects continued momentum in the second half of 2025, particularly related to the upcoming service dates for existing customers [25]. Other Important Information - The company announced the retirement of CFO Keith Jensen, with Christiana Ohlgart set to take over [28][30]. - Fortinet was recognized as the seventh most trusted company in its market by Forbes, highlighting its commitment to transparency and customer trust [10]. Q&A Session Summary Question: Involvement with hyperscalers like Oracle - Fortinet is involved in securing data centers for hyperscalers, leveraging its secure ASIC processor for enhanced computing power [34]. Question: Weak guidance for billings - The company experienced strong performance in Q4 but anticipates a more cautious outlook for Q1 due to external factors like tariffs and government disruptions [42]. Question: Refresh opportunity implications for subscription revenue - Subscription revenue growth is tied to upselling additional services alongside hardware renewals, with plans in place to incentivize sales [48]. Question: Billings guidance assumptions - The guidance includes significant upsell components and expectations for gradual growth rather than spikes [56]. Question: Impact of tariffs on demand and supply chain - The company is monitoring the dynamic situation regarding tariffs, particularly in Latin America and Canada, and acknowledges potential impacts on demand [62][66]. Question: U.S. performance sustainability - Fortinet has enhanced its U.S. enterprise sales and sees significant growth potential in the region due to increased resources and channel partnerships [72]. Question: Linksys relationship and strategic positioning - The acquisition of Linksys positions Fortinet to enter the consumer home-based network security market, leveraging its technology and existing user base [79]. Question: Inventory levels in anticipation of demand - The company targets healthy inventory turns and anticipates a gradual upgrade path for product revenue [84][86].

CrowdStrike (CRWD) Update / Briefing September 18, 2024 07:00 AM ET Speaker0 We would like to remind you that during today's presentations, we will be making forward looking statements. These statements reflect our views and expectations only as of today. While we believe these forward looking statements are reasonable, the outcomes are subject to risks and uncertainties, so actual results could differ materially from our expectations. Please see the risk factors section of our most recent 10 q filed with t ...

Summary of Zscaler (ZS) 2024 Investor Day Company Overview - **Company**: Zscaler (ZS) - **Event**: 2024 Investor Day held on June 12, 2024 Key Industry and Company Insights Expanding Platform and Market Opportunities - Zscaler is expanding its platform, focusing on secure communication, data protection, and Zero Trust networking as core areas of growth [8][10][11] - The company identifies a significant opportunity in the Internet of Things (IoT) and Operational Technology (OT) sectors, with a serviceable market of approximately 1.5 billion devices [13][83] - The Total Addressable Market (TAM) has increased from $72 billion to $96 billion, reflecting growth in data protection and Zero Trust solutions [16][18] Data Protection and Security Innovations - Data protection is highlighted as a rapidly expanding area, with Zscaler investing in technologies to secure applications and data across various environments [10][54] - The company has developed a comprehensive data protection solution that integrates multiple data loss prevention (DLP) engines, reducing complexity for organizations [54][59] - Zscaler's data protection market has grown from $10 billion to $20 billion, driven by the consolidation of fragmented data security solutions [61] Zero Trust Networking - Zscaler emphasizes the importance of Zero Trust networking, which eliminates the need for traditional VPNs and enhances security by verifying every connection [70][76] - The company has scaled its Zero Trust Private Access (ZPA) to over 25 million end users, positioning itself as a leader in this space [70][75] AI and Platform Integration - Zscaler is leveraging AI to enhance its platform capabilities, focusing on proactive threat detection and actionable insights [24][25] - The acquisition of Avalor is expected to enhance Zscaler's data fabric, allowing for better integration and contextualization of security data [25][27] Customer Engagement and Market Strategy Customer Wins and Adoption - Zscaler has secured notable contracts, including a global bank with 150,000 seats and a Fortune 500 financial services company with a 74,000 seat deployment [62][64] - The company is seeing increased adoption of its data protection solutions, with a focus on simplifying security for complex environments [58][61] Go-to-Market Strategy - Zscaler is refining its sales approach by creating specialized teams for emerging products, ensuring that new offerings receive adequate attention [19][20] - The company is focused on educating potential customers about the benefits of its Zero Trust solutions to overcome market inertia [15][16] Additional Insights Challenges and Competitive Landscape - Zscaler faces challenges in educating the market about Zero Trust solutions and overcoming the inertia of legacy systems [15][16] - The company is positioned to disrupt traditional networking and security vendors by offering a comprehensive, integrated approach to security [76][80] Future Outlook - Zscaler anticipates continued growth in its serviceable market, particularly in the areas of IoT and OT security, as organizations modernize their networks [85][86] - The company is committed to expanding its product offerings and enhancing its platform through ongoing innovation and strategic acquisitions [59][61] This summary encapsulates the key points discussed during the Zscaler 2024 Investor Day, highlighting the company's strategic focus on expanding its platform, enhancing data protection, and leading in Zero Trust networking.