“One thing to call out for fiscal 2023, Q3 is going to have headwinds, because in Q3 of last year, the duration was longer.”

In context

“Remo Canessa (CFO): Yes. The billing guide for Q2, the duration is similar to last year. It's slightly above the midpoint. One thing to call out for fiscal 2023, Q3 is going to have headwinds, because in Q3 of last year, the duration was longer. Related to the conservatism, related to our billing guide, it's really related to what we saw happening in Q1. So what we saw happening in Q1, we're taking forward into Q2 and for the rest of the year. What we're seeing basically is elongation of sales cycles. As we talked about and Jay mentioned on the prepared remarks, our deal size is getting bigger. Customers are buying more of our platform. It's more of a platform sale, all good. Our pipeline is increasing. Our pipeline is increasing five regions. Each region pipeline is increasing. But whereas before for the larger deals, we talked about, it was nine to 12-month sales cycle. It was trending down into more than nine months, now it's trending up more into the 12-month type range. So, all those things basically were taken into consideration with our guidance.”