“For the full year FY 2025, we expect total revenue of $733 million to $737 million, representing a growth rate of approximately 26% to 27% year-over-year.”

In context

“Brian Robins (CFO): Thank you, Sid, and thank you again for everyone joining us today. I am pleased with our start to FY 2025 as the team delivered strong top-line growth. We also achieved a significant year-over-year increase in operating margin, and for the first-time generated positive Q1 operating and adjusted free cash flow. Our number one objective is to grow, but we continue to do that responsibly. It is clear from our results that our customers see the value of our end-to-end DevSecOps platform that allows them to consolidate spend, avoid vendor lock-in and deliver outcomes to the business more quickly. Customers report to us that they were able to consolidate their tool chain anywhere from 3 to 20 solutions into our platform, accelerate release cycles by 7 times and even realize 70% improvements in annual savings. These outcomes move the needle for our customers in the software development life cycle, maximizing budgets and increasing their competitiveness. Turning to the numbers. First quarter revenue of $169 million represents an increase of 33% from Q1 of the prior year. Please note that our acquisition, Oxeye, did not contribute to Q1 revenue. As a reminder, when we guided for Q1 and FY 2025 we had not completed our annual stand-alone selling price analysis or SSP, which determines our revenue recognition rate for upfront license revenue. As a result, we used our FY 2024 rates for FY 2025 guidance. That evaluation is now complete and had the effect of decreasing Q1 revenue by approximately $1 million and decreased expected FY 2025 revenue by approximately $4 million relative to guidance. Excluding the impact of the new SSP allocation, Q1 revenue was $170 million, an increase of 34% year-over-year. Going forward, guidance for FY 2025 includes our updated SSP allocation. We ended our first quarter with a dollar-based net retention rate, or DBNRR of 129%. Q1 DBNRR was driven by a combination of seat expansion at approximately 55%, priced at approximately 35%, and tier at approximately 10%. Over the last four quarters, seat expansion has been greater than 50% of the growth in DBNRR and we are very pleased to see customers' commitment to our platform reflective in this expanding adoption. We now have 8,976 customers with ARR of at least $5,000, an increase of approximately 21%. Consistent with previous quarters, our customers with greater than $5,000 in ARR contributed over 95% of our total ARR in Q1. In particular, we monitor performance of our larger customer cohort of $100,000 plus in ARR, where average ARR per customer continues to increase and unit economics continue to improve. This is a testament to the importance of security and compliance for these large customers. At the end of the first quarter of FY 2025, we had 1,025 customers with ARR of more than $100,000, an increase of over 35% year-over-year. Expanding this cohort, both in absolute number and total ARR is a focus of our go-to-market team and as Sid mentioned, we'll continue to invest additional resources to drive momentum across these customers. This quarter, total RPO grew 48% year-over-year to $681 million, while cRPO grew 34% to $436 million. Non-GAAP gross margins were 91% for the quarter. SaaS now represents over 28% of total revenue and grew 50% year-over-year. The team continues to identify efficiencies that allow us to maintain best-in-class non-GAAP gross margins. Once again, we saw a year-over-year improvement in operating leverage. Q1 non-GAAP operating loss was $3.8 million compared to a loss of $15 million in the first quarter last year. As a reminder, in this Q1, our non-GAAP operating loss included a $15 million investment in Summit, our global team member gathering. I'm really pleased with the team's continued focus on execution which resulted in a non-GAAP margin expansion of more than 900 basis points year-over-year. Cash from operating activities was $38.1 million in the first quarter of FY 2025 compared to an $11 million use of cash in operating activities in the same quarter of last year. Adjusted free cash flow was $37.4 million in the first quarter of FY 2025 compared to an $11.2 million use of cash in the same quarter of last year. Turning to guidance. I'd like to start with a few comments on guidance. First, as I mentioned already, guidance includes our updated SSP revenue analysis. FY 2025 revenue guidance includes the approximately $4 million SSP net headwind for FY 2025 and raises in-line with our first quarter top-line outperformance. For the second quarter of FY 2025, we expect total revenue of $176 million to $177 million representing a growth rate of 26% to 27% year-over-year. We expect a non-GAAP operating income of $10 million to $11 million, and we expect a non-GAAP net income per share of $0.09 to $0.10, assuming 167 million weighted average diluted shares outstanding. For the full year FY 2025, we expect total revenue of $733 million to $737 million, representing a growth rate of approximately 26% to 27% year-over-year. We expect the non-GAAP operating income of $34 million to $38 million and we expect a non-GAAP net income per share of $0.34 to $0.37, assuming $168 million weighted average diluted shares outstanding. Separately, I'd like to provide an update on JiHu, our China joint venture. In Q1 FY 2025, non-GAAP expenses related to JiHu were $3 million compared to $5.6 million in Q1 of last year. Our goal remains to deconsolidate JiHu. However, we cannot predict the likelihood or timing when this may potentially occur. Thus, for FY 2025 modeling purposes, we forecast approximately $14 million of expenses related to JiHu compared with $18 million in FY 2024. In closing, Q1 was a strong start to the year, highlighting the differentiation of our DevSecOps platform and the power of our financial model. We're excited about the introduction of AI across the entire software development life cycle, the significant value we deliver for our customers, and a large market opportunity in front of us. Thank you all for joining us this afternoon. With that, I'll turn it over to Kelsey who will moderate the Q&A.”