“At the same time, we expect service revenue as a percentage of overall revenue to decline by transitioning more of these services to our channel partners, resulting in overall margin improvement.”

In context

“heir SaaS operations, our average core ARR per account continues to grow as well. At quarter end, the average core ARR per account was approximately $39,500, which represented an increase of 10% year-over-year. This growth was driven by 383 customers with ARR of over $100,000, up 34% from the prior-year period. Our core ARR dollar-based net retention rate for the quarter was 106% or 107% adjusted for FX impacts. Now let's review the income statement in more detail. Gross profit in the quarter was $41 million, representing a gross margin of 73.6% compared to 74.8% in the year-ago period. The slight margin decline is the result of our business mix and the impact of FX. Going forward, we are continuing to drive our sales efforts towards our fastest-growing revenue stream, our SaaS solutions. At the same time, we expect service revenue as a percentage of overall revenue to decline by transitioning more of these services to our channel partners, resulting in overall margin improvement. Sales and marketing expenses were $23.8 million or 43% of revenue compared to 42% of revenue a year ago. This represents an increase of $4.6 million year-over-year. This was driven by an increase in headcount and personnel-related expenses as we expanded our sales and customer success organizations as well as additional marketing spend as we invested in both our media and event strategies. We have grown our sales and marketing headcount by 8% year-over-year. The increase in headcount has resulted in a $2.2 million increase in total compensation, primarily driven by salary and benefits. Programmatic spend in marketing is up $1.8 million year-over-year, primarily driven by brand awareness efforts and marketing events. R&D expense was $6.9 million or 12% of revenue compared to 8% or $3.8 mil”