“As we look ahead, our long-term expectation is that services will continue to decline and represent approximately 10% of our revenue.”

In context

“ontinues to be a delta between revenue growth and ARR growth. Many of you have asked when this delta will close. So let me spend a minute on it. The Delta is purely a function of our revenue mix, which as you know includes our SaaS, term license and maintenance revenues, all of which are recurring, as well as our services revenue, which are not recurring and are excluded when we calculate ARR. At approximately 16% of our q1 revenues, services is still a meaningful component of our business. But it is 9% growth rate in Q1 is much slower than the 20% growth from our recurring revenue business. The slower growth of services, which we are purposefully deprioritizing from our sales mix, serves as a drag on our total revenue growth, but does not impact ARR growth, hence the delta you see today. As we look ahead, our long-term expectation is that services will continue to decline and represent approximately 10% of our revenue. So as services becomes less a percentage of total revenues, the delta between total revenue growth and ARR growth will narrow, but it will never completely go away. What we expect will tighten substantially overtime is the delta between recurring revenue growth and ARR growth, which we saw in Q1 with recurring revenues growing 20% and ARR growing 26%. Taken together this dynamic in our financials is why we believe that ARR growth is the best measure of our underlying performance. The third point I would like to make is around our three product suites, where it Investor Day we disclose the ARR contribution from each for the last few years. While much of the questions centered around the fact that our resilience suite has consistently represented nearly 60% of our ARR, I want to point out t”