“Free cash flow of $40 million to $45 million, which includes $8 million to $10 million of headwinds related to the TCJA capitalization of R&D provision;”

In context

“which is in line with historical trends. In Q4, we're assuming that $12 million of renewals will convert to SaaS which will serve as a headwind to revenue. Convergence to SaaS before considering any uplifted deal sizes do not impact ARR. Our guidance continues to factor in the same level of macro headwinds that we've discussed at length in the past. Now, turning to our guidance, for the fourth quarter of 2023, we expect total revenues of $115 million to $154 million, representing growth of 5% to 8%; non-GAAP operating income of $25 million to $27 million and non-GAAP net income per diluted share in the range of $0.22 to $0.24. This assumes 126.1 million diluted shares outstanding. For the full-year 2023, we now expect ARR of $535 million to $539 million, representing growth of 15% to 16%. Free cash flow of $40 million to $45 million, which includes $8 million to $10 million of headwinds related to the TCJA capitalization of R&D provision; total revenues of $495 million to $499 million, representing growth of 5%; non-GAAP operating income of $26.5 million to $28.5 million; non-GAAP net income per diluted share in the range of $0.31 to $0.33. This assumes 126.6 million diluted shares outstanding. In summary, we continue to see solid demand for both new and existing customers who wish to consume Varonis through our SaaS platform. As a result, our transition continues to move quickly, and approximately 15% of our total ARR is now coming from SaaS. This is benefiting our ARR performance and cash flow generation, which positions us for a strong fourth quarter. With that, we will be happy to take questions. Operator? Operator: Thank you. Ladies and gentlemen, at this time we will be conducting a question-and-answer session. [Oper”