“We have decided to make changes to the management team of our federal business and believe those changes, coupled with our expectations for FedRAMP authorization next year, will better position us to capture that market opportunity going forward.”

In context

“R coupled with a small contribution from Gen AI. Our performance this quarter gives us increased confidence as we look to close out the year, and our SaaS transition continues to gain momentum with SaaS now representing 43% of our total company ARR. We saw strong contribution from both new logos and existing customer conversions, including conversions from perpetual maintenance customers, and many of the secular tailwinds we have noted this year, are continuing to have a positive impact on our business. Our enterprise business was the driver of our strong performance this quarter, with strong new business activity, healthy conversions and very early contributions from Gen AI to our reported metrics. Our federal business, however, underperformed our expectations by several million dollars. We have decided to make changes to the management team of our federal business and believe those changes, coupled with our expectations for FedRAMP authorization next year, will better position us to capture that market opportunity going forward. Looking at the quarter in more detail, the key drivers were again SaaS and MDDR. Our SaaS platform and MDDR offering together eliminate the two biggest pushbacks of, one, not wanting hardware and, two, not having the headcount to manage the platform or respond to alerts. The automation of our SaaS offering, together with the simplicity of the story, continue to drive positive momentum and shorter sales cycles when compared to the on-prem subscription deals. As we have said for a few quarters, Gen AI continues to come up in nearly every customer conversation, but this was the first quarter where it began to contribute to our results. We believe Gen AI is still very early in the adoption curve, which keeps us measured in our expectations around the timing and sizing of its contribution to o”