“To remind you, the channel contribution to our incremental ARR may fluctuate from quarter-to-quarter, but we expect the channel contribution to total ARR to continue increasing each quarter.”

In context

“growth rates in line with the 23% ARR growth we reported on a consolidated basis. Continuing now with total ARR and other key metrics we regularly assess, as of December 31, 2023, total ARR was $264.5 million, representing year-over-year growth of 23%, or 24% after adjusting for the impacts of FX. As a result, net new ARR in Q4 was 13.9 million, representing year-over-year growth of 28%. We ended the year with 547 customers with ARR of over $100,000, an increase of 20% from the prior year. We also ended 2023 with 178 customers with ARR over $250,000, an increase of 30% from the prior year. As of the end of Q4, 51% of total ARR came through the channel, compared to 47% at the end of 2022. And for Q4 specifically, 65% of our incremental ARR came through the channel, compared to 72% for Q3. To remind you, the channel contribution to our incremental ARR may fluctuate from quarter-to-quarter, but we expect the channel contribution to total ARR to continue increasing each quarter. In turn, this should continue driving ARR growth and operating efficiencies as we saw throughout 2023. Turning now to our customer retention rates. As I mentioned, adjusted for the impact of FX, our trailing 12-month gross retention rate for the fourth quarter was 87%, consistent with the first three quarters of 2023. And looking at our FX adjusted net retention rate, the strong contribution from our existing customer base led to another improvement in NRR versus the prior quarter, as this metric was 109% in Q4 compared to 108% at the end of Q3. On a reported basis, Q4 GRR was 86%, an improvement from 85% we reported in Q3. NRR also improved on a reported basis in Q4 as we delivered 108% compared to 107% in Q3. Turning back to the income statement, gross profit for Q4 was $56.1 million, r”