“So I think one thing to think about is if you look at our operating expense growth for the first two quarters, we grew 35% year-over-year in the first two quarters, but Q3’s growth rate was 21% and we're guiding Q4 for only 10% growth year-over-year.”

In context

“ere for you just with respect to foreign exchange. But I'm curious if you can just unpack for us in order of magnitude what sort of impacting your ability right now to drive maybe more visible operating profitability improvement? So if you could help stack rank for us, if it's FX and if you've got natural hedges in place, if it's the migration impact, if it's the M&A? Just from those lenses so we can sort of isolate some of the sizing of what sort of holding back more visible profitability expansion. And that's it for me. Jim Caci: So maybe just a couple points there, because there was a lot in there, so that's really good. So I think, maybe overall a first statement might be that we are very focused now on driving and managing our cost structure and improving profitability going forward. So I think one thing to think about is if you look at our operating expense growth for the first two quarters, we grew 35% year-over-year in the first two quarters, but Q3’s growth rate was 21% and we're guiding Q4 for only 10% growth year-over-year. So I think we are managing that expectation. A couple things that we're doing there. For us, FX is an impact as you called out, a little bit of a natural hedge there. The second is we implemented some slowing of hiring in Q3 and then we recently announced a complete hiring freeze that will also have a positive impact on keeping our cost structure relatively flat in terms of not accelerating like it has in the past. The other thing we're doing too is it's not just about headcount, it's also about really all the cost structures in our business, which go well beyond just people in terms of rents and office space and all those things. I think like many others, we're taking a look at all of those costs and seeing what we can do to drive those costs down. So again, we're looking at that as well”