“We look forward to completing our SaaS transition in 2025, which we believe will better position the company to accelerate growth and show continued free cash flow improvement on our way to our $1 billion ARR target.”

In context

“$11 million. And, non-GAAP net loss per basic and diluted share in the range of negative $0.06 to negative $0.04. This assumes 113.6 million basic and diluted shares outstanding. For the full year 2025, we expect ARR of $737 million to $745 million, representing growth of 15% to 16%; free cash flow of $120 million to $125 million; total revenues of $610 million to $625 million, representing growth of 11% to 13%; non-GAAP operating income of $0.5 million to $10.5 million; non-GAAP net income per diluted share in the range of $0.13 to $0.17. This assumes 137.5 million diluted shares outstanding. In summary, we are excited to finish 2024 with the majority of our ARR coming from SaaS for the first time and are encouraged by the step function change in the new customer momentum we are seeing. We look forward to completing our SaaS transition in 2025, which we believe will better position the company to accelerate growth and show continued free cash flow improvement on our way to our $1 billion ARR target. With that, we would be happy to take questions. Operator? Operator: [Operator Instructions] Our first question comes from the line of Matthew Hedberg with RBC Capital Markets. Please proceed with your question. Mike Richards: Hey guys, this is Mike Richards on for Matt. Thanks for taking the question and congrats on the results and the accelerated timeline here. Maybe we're sitting here a year from now and we're talking about upside to that flat net new ARR growth. Could you talk about maybe where there might be some conservative assumptions around either Copilot uptake or conversions of the base? And how are you accelerating that Phase 2? Is that going to be through a care-and-stick approach? Are we looking at sales incentives? Just any detail around that would be great. Thanks. Yaki Fai”