“So while we see early signs and positive customer conversations, we believe it will be gradual and therefore are conservative in our baseline modeling for this year.”

In context

“Joo Mi Kim (CFO): It's based on historical adoption timelines. New products like CSAM and ETM take time to become a material portion of bookings. ETM has been GA for a little over a year, and ETM plus CSAM currently make up 11% of bookings on an LTM basis. Conversion and upgrade from CSAM to ETM will take time to materially move company-level NDR. So while we see early signs and positive customer conversations, we believe it will be gradual and therefore are conservative in our baseline modeling for this year.”