“Second, we will meet conditions necessary to be deemed a large accelerated filer as of December 31, 2023.”

In context

“operating income of $5 million to $6 million, and for the full year, we now expect total ARR of $258 million to $263 million or 21% year-over-year growth at the midpoint. We now expect total revenues of $261.9 million to $265.9 million or approximately 14% year-over-year growth at the midpoint. Lastly, we now expect non-GAAP operating income of $15.9 million to $17.4 million. We'll open for Q&A in a moment, but first, I wanted to provide some additional color on our guidance with a focus on our cost expectations for the balance of the year. While still early, we are beginning to see some signs of stabilization in the demand trends we closely monitor. And as such, we are starting to make some incremental investments to ensure we are well positioned for continued growth in 2024 and beyond. Second, we will meet conditions necessary to be deemed a large accelerated filer as of December 31, 2023. And as a result, we expect some incremental costs in Q3 and Q4 relative to our prior guidance. Taken together, these 2 factors are why we are not raising our full year operating income guidance beyond the outperformance we achieved in Q2, but we are extremely pleased that even after factoring this in, our Q3 operating margin guidance represents year-over-year expansion of nearly 450 basis points, and our new full year operating margin guidance represents year-over-year expansion of approximately 750 basis points. In summary, this was a strong quarter and a continuation of our momentum from Q1. While we remain mindful of near-term economic uncertainty, we continue to be excited by the opportunities we see in 2023 and beyond to deliver shareholder value by advancing the digital workplace,”