“We're continuing to expect to see acceleration on the SaaS front.”

In context

“stor Day on March 22 in New York. With that, we'd be happy to take your questions. Operator? Operator: [Operator Instructions]. Our first question comes from Jason Ader from William Blair. Jason Ader: Just wanted to drill down a little bit on the SaaS mix. So where do you expect SaaS mix to go in 2023? And do you expect it to be a headwind at all to revenue growth just given the mix shift away from some of the upfront rev rec? James Caci: Jason, let me take that first, and if TJ wants to chime in, he can. So great question. And I think you're right. You're seeing it -- maybe one way to think about that is we're forecasting the ARR growth at about 20% for the year and revenue growth is slightly less than that at 11%. And the biggest contributor to that is kind of what you're referring to. We're continuing to expect to see acceleration on the SaaS front. And you know as you accelerate the SaaS, your ARR is the same. But because of our rev rec on the multiple line items, we're going to see a little bit of a headwind on the revenue for that. Jason Ader: Got you. So -- and the revenue growth rate of 11%, is that constant currency? James Caci: Yes. So that is assuming that we're effectively using the FX rates at the end of December. So we've kind of pegged to that and assuming that we're matching to that the -- all of 2023. Jason Ader: Understood. Okay. So one quick follow-up on SaaS. So the impact on gross margins this year -- what -- where do you think the gross margins play out? How do you think the gross margins play out, just given the lower margins for SaaS? James Caci: Yes. No, great question. So actually, the biggest impact for us on”