Financial Data and Key Metrics Changes - Total Annual Recurring Revenue (ARR) grew 24% to $996 million, with Subscription ARR increasing 33% to $844 million [3][17] - Total revenue increased 26% to $282 million, driven by a 46% rise in subscription revenue [4][20] - Non-GAAP EBIT grew 21% to $58 million, with a non-GAAP EBIT margin of 20.7% [24] - Gross margins for Q1 were 82.4%, consistent with expectations [24][29] Business Line Data and Key Metrics Changes - Subscription revenue increased 46% to $182 million, with SaaS ARR soaring 63% to $307 million [4][19] - The number of subscription customers approached 13,000, with approximately 700 net new subscription customers added [20] - SaaS net dollar retention rate was 125%, indicating strong customer expansion [20] Market Data and Key Metrics Changes - The company achieved triple-digit growth in marketplace transactions, with multiple six-figure and seven-figure deals [5] - Significant growth was observed across geographies, industries, and customer segments, from enterprise to SMB [6] Company Strategy and Development Direction - The company is focused on the booming cyber resilience market, enhancing offerings to meet the needs of CIOs and CISOs [7][10] - Strategic partnerships were formed with Deloitte, CrowdStrike, and HPE to enhance cyber resilience and data protection capabilities [11][12] - The company plans to acquire Satori Cyber to strengthen data security offerings and support responsible AI usage [14][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for the cyber resilience platform and the ability to capture market share [30] - The updated guidance reflects confidence in future opportunities despite broader macroeconomic considerations [30] Other Important Information - The company ended Q1 with no debt and a cash position of $363 million, with free cash flow of $30 million [25] - The acquisition of Satori Cyber is expected to be modestly dilutive to margins for the next several quarters [26][29] Q&A Session Summary Question: Revenue contributions from Satori acquisition - Management indicated that the Satori acquisition will not materially impact revenue guidance [33] Question: Cross-sell and upsell opportunities - Management reported a 45% increase in customers using two or more products, with a focus on expanding this further [35] Question: Bundling strategy - The company has logical bundles that make sense for customers, with more capabilities expected to be integrated [38] Question: Future growth through M&A - Management highlighted a focus on core security and cloud-native capabilities for future acquisitions [42] Question: Federal business performance - The federal business performed in line with expectations, with strong seasonality anticipated for the first half of the year [57] Question: Net new ARR dynamics - The SaaS business performed as expected, with strong performance in software contributing to net new ARR [50] Question: Pull forward of customer budgets - Management stated there is no evidence of budget pull forward, attributing strong performance to overall market strength [81]

Core Insights - Retail media is transitioning from rapid growth to a focus on measurable effectiveness, indicating a pivotal moment in the industry [1] - The global advertising expenditure for retail media is projected to reach $169 billion by 2025, growing over 15% year-on-year, despite rising skepticism regarding ad pricing and effectiveness [2] - Cannes Lions has recognized retail media's significance by introducing dedicated awards, highlighting its role in enhancing brand relevance and driving business outcomes [3] Group 1: Industry Growth and Challenges - Retail media has been a bright spot in the advertising sector, with Cannes Lions acknowledging its rising status and predicting that retail media ad spending will surpass traditional television by 2026 [3] - Advertisers are increasingly demanding quick responses and concrete return data from retail media platforms, reflecting a shift in expectations [2] - The industry is facing challenges such as high ad prices, fragmented evaluation systems, and the need for better tracking of conversions amid global economic uncertainties [2] Group 2: Evolution and Technological Integration - Retail media is moving from conceptual acceptance to practical validation, with advertisers focusing on specific outcomes like conversion rates and efficient processes [4] - The concept of "data clean rooms" is gaining traction as a critical tool for enhancing collaboration between brands and retailers [4] - Leading retailers are already implementing advanced solutions, such as Walgreens' partnership with LiveRamp to launch a Clean Room solution [4] Group 3: Strategic Approaches and Market Dynamics - Some retailers are rushing into external advertising without solidifying their internal capabilities, which could undermine their effectiveness [6] - European retailers are adopting a more cautious approach, prioritizing the development of their channels before expanding external collaborations [6] - As retail media budgets grow, advertisers are reclaiming control, demanding simpler purchasing processes and clearer return metrics [7][8] Group 4: Future Outlook - The competitive landscape of retail media is shifting from rapid platform development to a focus on actual business results and data utilization [8] - By the second half of 2025, the industry will need to assess whether continued investment in retail media is justified based on its effectiveness [8] - Success will depend on achieving a true loop between flexibility, transparency, and business outcomes [8]