“While this percentage may fluctuate from quarter-to-quarter, we expect the overall channel contribution to continue increasing, in turn, driving ARR growth and operating efficiencies.”

In context

“growth in our SaaS business. In North America, on a constant currency basis, SaaS revenues grew 35% while total revenue grew 16%. In EMEA, on a constant currency basis, SaaS revenues grew 41%, while total revenues grew 10%. And in APAC, on a constant currency basis, SaaS revenues grew 46%, while total revenues grew 28%. As of June 30, 2023, total ARR was $236.2 million, representing year-over-year growth of 26% and growth of 30% when adjusted for the impact of FX. We ended the second quarter with 495 customers with ARR of over $100,000, up 19% from the prior year period. As of the end of Q2, 49% of our total ARR came through the channel compared to 46% a year ago and 48% at the end of Q1. And for Q2 specifically, 61% of our incremental ARR came through the channel compared to 56% for Q1. While this percentage may fluctuate from quarter-to-quarter, we expect the overall channel contribution to continue increasing, in turn, driving ARR growth and operating efficiencies. Turning now to our retention rates, which, as you know, are a primary area of focus for us and critical to our long-term growth strategies. Adjusted for the impact of FX, our trailing 12-month gross retention rate for the second quarter was 87%, in line with what we reported at the end of Q1. And we are pleased that our net retention rate for Q2 improved versus Q1 as NRR was 107% after adjusting for the impact of FX compared to 106% at the end of the first quarter. And as we see more and more examples of customer expansion, like TJ described, we expect this trend to continue. To remind you, our medium-term target for GRR is 90% plus and for NRR is 110% to 115%. Both GRR and NRR improved on a reported basis as Q2 gross retention rate was 85%, and Q2 net retention rate was 104%. This compa”