“This also assumes a 5% SaaS mix of sales from new licenses in the first half of 2023.”

In context

“p you gauge on our progress. As a reminder, ARR and cash flow will be the cleanest metrics to follow throughout our journey. We expect to deliver more color and new KPIs in early 2023, but the general framework to think about for next year includes: Free cash flow levels of $20 million to $25 million for the full 2023 year with similar seasonality to previous years. As a reminder, we generate the largest amount of free cash flow in Q1 with Q2 being the lowest of the year, followed by a moderate improvement throughout the second half of the year. ARR and revenue growth of 10% to 12% for the full year, which assumes further deterioration in the European economy, the slowing of business conditions in North America and an initial ramp-up phase for our sales team in the first half of the year. This also assumes a 5% SaaS mix of sales from new licenses in the first half of 2023. We plan to provide our full year SaaS mix assumption next quarter. Now let’s turn to our third quarter results in more detail. ARR grew 26% year-over-year to $447.8 million. After adjusting for the FX and Russia headwinds, ARR growth was 30%. As I mentioned earlier, total revenues grew 23% or 27% after adjusting for FX and Russia. This includes subscription revenues of $96.1 million, which grew 37% year-over-year. Maintenance and Services revenues were $27.3 million, with renewal rates again over 90%. Looking at the business geographically, North America had another strong quarter, as revenues grew 30% to $98 million, or 79% of total revenues. EMEA revenues declined 3% to $22.1 million, or 18% of total revenues. Last, Rest of World revenues grew 63% to $3.2 million, or 3% of total revenue”