Thank you for standing by, and welcome to Jamf's first quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star one one on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star one one again. As a reminder, today's program is being recorded. Now I'd like to introduce your host for today's program, Jennifer Gaumond, Vice President, Investor Relations. Please go ahead. Good afternoon, and thank you for joining today's call to discuss Jamf's first quarter 2025 financial results. Joining me on today's call are John Strosahl, CEO, and David Rudow, CFO. Before we begin, a reminder that shortly after the market closed today, we issued a press release announcing our first quarter financial results. We also published our Q1 investor and earnings presentations along with an Excel file containing quarterly financial statements to assist with modeling. You may access this information on the investor relations section of jamf.com. Today's discussion includes forward-looking statements, which involve risks and uncertainties that could cause actual results and trends to differ materially from our forecast. For more details, please refer to the risk factors and other information discussed in our most recent SEC reports, including our most recent annual report on Form 10-K. Jamf assumes no obligation to update forward-looking statements, which speak only as of the date they are made. We also reference some non-GAAP measures related to Jamf's performance. Reconciliations to the nearest comparable GAAP measures are available in our earnings release. To facilitate a full Q&A, please limit yourself to one initial question and one follow-up. Now I'll turn it over to John. Thanks, Jenn. Jamf achieved solid results in Q1 with year-over-year revenue growth of 10% and non-GAAP operating income margin of 22%, exceeding the high end of our outlook for both metrics. Total ARR grew 9% year-over-year to $658 million. Our net new commercial ARR saw year-over-year growth. Excluding FX, total net new ARR growth accelerated for the first time since Q2 of 2022. Additionally, we saw strong new logo bookings in both commercial and education, driven by higher ARR per customer. Security bookings were also strong, driving 17% year-over-year growth in security ARR to $162 million. Contributing to this performance was the successful launch of two new platform solutions in early March, Jamf for Mac and Jamf for K - 12. These device-based offerings represent the next evolution of Jamf's platform capabilities, helping remove barriers to Apple adoption by providing customers with everything they need for security and management in a single SKU. These solutions are tailored to specific buyer personas and leverage Jamf's strong relationships with the IT admins. This enables Jamf to deliver across our four key growth factors: security, mobile, international, and channel. Jamf for Mac empowers customers to easily embrace Mac in their operations, including multi-layered security that integrates with existing tooling while reducing the organization's security risk footprint. A global education publishing group recently expanded and converted to Jamf for Mac. The solution provided the IT admin the ability to enhance the company's device security posture with the IT and not the InfoSec budget. Jamf for K - 12 is an enhanced education solution that provides IT admins with a powerful yet simple security and management solution, combining Jamf Pro or Jamf School with Jamf Safe Internet. With this platform solution, we're transforming classrooms, supporting student success, and ensuring equitable opportunities for every learner, whether an individual school, district, or an entire nation. A large school district in Louisiana recently converted for Jamf for K - 12. The district's previous security product did not meet their growing security needs and required too many IT hours to manage. Jamf for K -1 2 provided the perfect solution at an attractive price, meeting the district's requirements and making the IT team more efficient. Deals like this have helped drive strong education performance in Q1, typically a seasonally light quarter for education. On the heels of this performance and leading into the traditional education buying season, we closed the acquisition of Identity Automation, a dynamic identity and access management platform solution. Security remains a key growth driver, contributing to continued demand for Jamf's Apple-first security platform, especially in the mobile space. By acquiring Identity Automation, Jamf gains almost 90 employees, as well as a key product differentiator, which is dynamic identity management for mobile. In K - 12 education and other mobile-centric industries, roles and accesses constantly shift. Identity Automation's platform dynamically adjusts access, device, and security policies in real time based on schedules, locations, and role changes. Identity Automation has a strong foothold in education with more than 500 customers, primarily in the U.S. Identity Automation has been a longstanding Jamf partner with over 250 shared customers, including five of the top 10 school districts. Combining forces will continue to deliver a solution to benefit schools and other industries that rely on mobile-centric and deskless workflows, especially where Jamf has a strong presence, such as healthcare, retail, aviation, and field services. Additionally, a significant opportunity exists for leveraging our 40,000 existing Jamf education customers, international footprint, and established Jamf channel relationships. While Jamf is known for its Apple-based platform, Identity Automation offers solutions across multiple endpoints. By unifying Jamf's endpoint management and security expertise with Identity Automation's adaptive identity technology, organizations can streamline and enhance overall user experience all within a single platform. We're excited to have the Identity Automation team on board and looking forward to bringing the power of Jamf and Identity Automation to our customers. David will review the financial impact of the acquisition later. Now, there's one key growth factor that I haven't touched on yet, which is our channel. With respect to the channel, as you recall, we launched our new global partner program in August of 2024 to accelerate the growth of Jamf's channel partners and managed service providers. In just six months, the program is delivering measurable results. Since the launch, Jamf has streamlined partner-led deal registrations, allowing for real-time visibility into status, progress, and upcoming renewals, helping Jamf's partners engage more effectively with customers. This has resulted in deal registration growth of nearly 50% year-over-year and more than 25% growth in new partners added since the program launched, expanding Jamf's global reach. We continue to be a strong channel-first business, with partner-driven ARR representing over 60% of Jamf's total ARR. Outside of the U.S., partner-driven ARR accounts for over 80%. In recognition of our channel efforts, Jamf recently received the five-star rating in the 2025 CRN Partner Program Guide. The five-star award is an elite recognition given to companies that have built their partner programs on the key elements needed to nurture lasting, profitable, and successful channel partnerships. The Jamf Global Partner Program reaches partners in over 70 countries worldwide. The program leverages a point-based system that rewards partners and equips them with the necessary resources they need to grow their business while helping organizations of all sizes succeed with Apple. Jamf Partner Hub is the one-stop shop for Jamf's partner community, offering them the ability to monitor deal registration status, check on upcoming customer renewals, complete training certifications, and a host of other co-selling functionality. Now, before I hand it over to David, I want to discuss how we are operating given the current geopolitical climate. We continue to see demand for Jamf solutions and expect it to continue given Jamf's industry-leading Apple-first solutions. We're closely monitoring customer sentiment and buying cycles. The cost of Jamf is a relatively small portion of an overall IT or security budget, and we believe Jamf's mission-critical status for many organizations allows Jamf to be insulated from efficiency efforts. With respect to our federal government exposure, outside of education, government-related ARR makes up approximately 2% of our total ARR. This amount includes state, local, and federal, with federal being the smallest portion. In K -1 2 education, the vast majority of funding comes from the state and local level, with only a small portion coming from federal funds. As such, we haven't seen an impact to our K- 12 budgets. It should be noted that Q2 and Q3 are typically our strongest K - 12 education quarters, so we'll be watching this space closely over the next coming months. In summary, considering the fluid situation, we're continually monitoring and adjusting as needed. We believe that we are well-positioned given Jamf's ability to meet both the security and the management needs for Mac and mobile devices with the most robust Apple-first platform. In closing, I want to thank our customers, our partners, employees, and shareholders for all of your ongoing support. Next, I'll turn it over to David to review our Q1 results and provide our Q2 and full year 2025 outlook. Thanks, Jenn. As a reminder, all non-revenue metrics I'll be discussing will be on a non-GAAP basis. We achieved solid results again in Q1, exceeding the high end of our revenue outlook. Year-over-year, total revenue growth was 10%. Recurring revenue grew at 11%, representing 98% of total revenues. Less strategic sources of revenue, such as services and license, continue to experience year-over-year declines. Our Q1 net retention rate remained flat from Q4 at 104%, and gross retention rates remained consistent with historical levels. Non-GAAP operating income exceeded the high end of our Q1 outlook at $37.6 million, or a 22% margin, an 800 basis point improvement over Q1 2024. This was driven by our continued commitment to disciplined investment and efficiency efforts. Sales and marketing as a percent of total revenue improved approximately 400 basis points compared to the prior year period, and G&A improved approximately 200 basis points. Our trailing 12-month unlevered free cash flow margin decreased slightly to 12.3% compared to 12.5% in the prior year. Unlevered free cash flow margin continues to be impacted by the timing of billings and collections associated with our comprehensive systems update. In the quarter, we made good progress on collections and expect DSOs to return to normal levels over the next few quarters. From a cash perspective, we ended Q1 with $222 million. On April 1st, we closed the Identity Automation acquisition. Under the terms of the agreement, the $215 million purchase price is payable in two installments: $175 million paid at the close and $40 million payable on October 1. Given Jamf's growth and improving profitability, we remain in a healthy liquidity position. Now, turning to our outlook for the second quarter and full year 2025, we remain committed to being a profitable growth company and will build on the progress we've made, improving efficiencies while strategically investing for growth. We believe in creating an achievable model. This outlook reflects current market conditions, and we will continue to monitor potential risks as they pertain to the current macro environment. Our outlook is based on current FX rates, and any future currency fluctuations are not factored in. We've taken a prudent approach to the remainder of 2025 by maintaining our previously provided revenue outlook. With the US dollar weakening relative to other currencies and our growing international expense base, we are seeing headwinds of about $2-$3 million for the remainder of the year and, in turn, are including this in our operating income outlook. The Q2 and FY 2025 guidance also includes the revenue and operating income from the recently closed Identity Automation acquisition. It should be noted that Identity Automation has seasonality with respect to ARR and revenue, with the second half of the year generating higher levels than the first half. For the second quarter of 2025, we expect total revenue of $167.5 million-$169.5 million, representing year-over-year growth of 10% at the midpoint. Non-GAAP operating income of $29.5 million-$30.5 million, representing a non-GAAP operating margin of 18% at the midpoint. This includes some additional go-to-market investment and Identity Automation, as well as the previously mentioned impact of FX. For the full year of 2025, we expect total revenue of $691 million-$695 million, representing year-over-year growth of 10.5% at the midpoint. Non-GAAP operating income of $144.5 million-$147.5 million, representing a non-GAAP operating margin of 21% at the midpoint, and approximately 500 basis point improvement over fiscal year 2024. These amounts include the contribution from Identity Automation of approximately $15 million of revenue for the remaining three quarters of the year, while being margin accretive for the balance of the year. This also embeds the previously mentioned impact of FX. As you model the seasonal impact of Identity Automation, remember that its revenue contribution is highest in Q3. Additionally, given our strong margin profile, we continue to expect to generate unlevered free cash flow growth of at least 75% for the year. In closing, we are committed to growth while driving incremental operating margin improvement regardless of the environment. Our objective is to exit fiscal 2026 at a rule of 40 run rate, as defined as the sum of the year-over-year growth plus adjusted EBITDA margin. To be more in line with our comparable group and for ease of calculation, we have made the decision to move to adjusted EBITDA margin for calculating the rule of 40. I look forward to sharing our progress against this objective as we move through the year. I also want to thank the entire Jamf team for another great quarter and for expertly serving our customers. Now, we will take your questions. Operator? Certainly, and our first question comes from the line of Joshua Riley from Needham. Your question, please. Awesome. Thanks for taking my questions and nice job on the quarter here. As you highlighted in the press release, the Identity Automation acquisition is set to enhance your mobile and security adoption. It seems the solution's initially targeted at the education market. How do you think about moving the solution more to commercial markets over time as well, including kind of the go-to-market strategy on that front as well? Yeah, Josh, this is John. I'll take the question. We actually have Henry Patel in the room as well, our Chief Strategy Officer. He can add some color to certainly part of this acquisition. You know, we really saw this benefit the education market. We've gone to market with Identity Automation for quite a while, as mentioned in the prepared remarks, with a lot of joint customers. We already had some traction there. We really like the fact that it provides the identity to the person, whether it's a shared device or a device that they have. It's based on context. By extending that security out and proving it out in an education setting, you can imagine all of the different areas that the deskless workflow would benefit from that similar type of model. If you are a shift worker, if you are a traveling nurse, if you are, you know, name your retail manager, all of those things require the provisioning and the identity based on where that person is. It could be time-based as well. We really believe that we can extend this out beyond education. Again, we have a lot of room to grow in education. We have over 40,000 education customers worldwide, and Identity Automation sold little to none outside the U.S. We are really looking to double down on that. I do not know, Henry, do you have? Sure, John. Yeah, I'll just make a quick comment here. I think John has kind of outlined all the different opportunities we have within education and outside of education. Really, what we're looking for is how do we actually, you know, tie ourselves to workflows that we can, you know, serve our customers. If we look at some of the retail, aviation, you know, the benefit here is really tying that identity to that device and how do we make that workflow better. Obviously, we're focused on the Apple devices, and we want to make that whole experience much better. Got it. That's helpful. Just one quick follow-up for me. Now that you have the Jamf for Mac, how do you think about the marketing of that relative to Jamf Business Plan going forward? I guess in terms of, like, what will you be pushing in terms of customers to adopt? What's the right scenario where you want to use Jamf for Mac versus the Jamf Business Plan? Yeah, Josh, this is John. It's really the Jamf Business Plan really was oriented more toward the smaller business customer. And Mac for Enterprise is really designed for the enterprise and how we have our go-to-market and the buying motion, all of those things are oriented around that enterprise buyer and including the solution. So really, kind of differentiation there is the smaller customers are going to be more business plan, and the enterprise customers are going to be more on the enterprise for Mac. And, you know, after releasing that, we've really seen some good traction there, just given the fact that you can talk to an IT buyer who's trusted, you know, a customer of ours and has been for years, and they can help extend the security within their environment without having to go through a separate buying motion. Understood. Helpful. Thank you, guys. Thank you. Our next question comes from the line of Koji Ikeda from Bank of America. Your question, please. Yeah. Hey, guys. Thanks so much for taking the questions. A couple from me today. When I listened to the prepared remarks and specifically on the commentary on demand, it sounds like demand is very good out there. With you guys keeping the guide, it feels kind of interesting. Where I'm going with this is, you know, is the guidance and the keeping of the guide a reflection of the good demand as coming in as expected, and you're pulling it forward, therefore keeping the guide? Or could you have potentially kept or raised the guide, meaning has the demand improved, but you're maintaining the guide because of an uncertain macro environment? Yeah. Thanks, Koji. This is David. Yeah. When as we thought about the guidance for the balance for Q2 and the guidance of the year, you know, I think you have to keep in the back of your mind of kind of the noise that's out there. Q1, I think there was, like, little things that we saw, like nothing big. April seems more or less in line. I mean, it's first month of the quarter. I think to be prudent, I think it was reasonable for us to just kind of maintain our guidance for the year. I think we feel comfortable doing that. Obviously, we're going to keep our eyes open, watch for any changes in the marketplace, and we correct accordingly. I think it's just prudent right now to provide and just maintain the guidance for the year. Got it. Thank you. I appreciate all the color on FX and the impacts there on operating expenses. I wanted to ask maybe FX, the potential of FX as being an international demand driver, you know, just thinking about a weakening USD. Could you remind us, you know, how is Jamf priced internationally? Is it all in USD, or is it translated to local currency? Is a weakening dollar potentially better for you guys from a demand perspective for international customers? Thank you. Yeah. So we went live with our new system. We did a system update in August of last year. Part of the reason for that is because we solely bill and collect in US dollars. Now that the system is live and up and running, we have the flexibility and the ability to bill in local currency. We are, in fact, doing that now. It's going to be a slow transition as we sign new deals. As customers renew, we will switch them to local currency billings. We saw very minimal benefit with the dollar weakening on the top line. We do have over 25% of our cost in international locations, so we are seeing a negative impact on the cost side. Thank you so much. Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. Our next question comes from the line of Jake Roberge from William Blair. Your question, please. Yeah. Thanks for taking the questions. Can you talk a little bit more about the Identity Automation acquisition? I know it's still early, but would love to hear what the initial reception has been like from customers and partners. I know you've historically had some partnerships with some of the more traditional identity vendors in the space. Curious if you see those changing at all moving forward. Yeah. I'll take the first part of the question, and I'd like Henry to add some color as well. I mean, as I mentioned before, we've been selling with Identity Automation for some time now, so it's not a new go-to-market motion with us. I think on day two, we closed our first deal. It's gotten, you know, it's continued, and we've been, you know, very happy with the results and how that's going with the integration and the traction that the go-to-market teams are going. Again, we're using our go-to-market team to support theirs so that we can really expand it, certainly internationally, and then think about how to do other industries outside of education. But Henry, why don't you add a little as well? Yeah, absolutely. You know, Jamf's posture is always that we're trying to integrate into existing customer environments. How do we fit in? How do we stand out? We have great partnerships in the identity market. We continue to have those partnerships, and we will strengthen those as well. What Identity Automation brings to the table is that dynamic identity. How do we actually build on that workflow for those customers in those specific segments and population of customers that we want to actually try to drive more solutions? It is an additive to the existing identity enterprise provider, so we're actually federating. We don't lose the ability to partner. In fact, we're enhancing the partnership here. Okay. That's helpful. Great to hear that net new ARR re-accelerated during the quarter. Can you talk about some of the drivers of that and whether anything stood out between security, mobile, or maybe even some of the key industries within tech or education that helped drive that? Yeah. Jake, this is John. Really, the Mac for the enterprise and the mobile for enterprise, both of them saw some good traction as we released those. It really simplifies our go-to-market motion there as well. That certainly was helpful. You know, we continue to see demand, as David mentioned. There's caution out there, and it's the same across the industry. I've spoken with other CEOs, and they're seeing similar things. There's caution, but there's still demand. With the mobility and the increase of mobility and the need for mobile security, all of those things play really, really well into our commercial performance this last quarter. Yeah. And Jake, just to add on, in terms of vertical performance, I think we saw strength in healthcare, financial services, education. On the regional side, we had a good APAC quarter. In Europe, Central, Southern, and U.K., Ireland also performed well. Very helpful. Thanks for taking the questions. Thank you. Our next question comes from the line of DJ Hynes from Canaccord Genuity. Your question, please. Hey, guys. This is Luke on for DJ. Thanks for taking the question. So we've seen reports out there of customers pulling forward Apple device purchases, trying to get ahead of potential tariffs. I understand the impact to you there isn't going to be direct, but wondering if you have any thoughts about how that might play out for your business, you know, if there is any change in sort of pull forward in those device counts at your customers. Yeah. Look, I can try to answer that question. Of course, I can't speak for Apple. You know, we have seen, or we haven't seen necessarily the pull forward. I don't doubt that that would happen if companies are trying to buy ahead of potential tariffs and things like that down the road. You're right. It doesn't have a direct or an immediate correlation to our business, but longer term, obviously, as Apple expands, that gives us a bigger footprint. You know, I guess the only thing from the Apple side is that they've tended to navigate these types of things really, really well in the past, and they're a healthy company. I think that, you know, if a company, a hardware company, is going to be able to navigate it well, it's certainly Apple. Yeah. That's great and helpful. Thank you. Maybe a follow-up just on your cloud marketplace momentum. The AWS marketplace has been a strong channel for you guys in the past. I think Azure just went online in Q4. Just wondering if you're seeing any early signs of pipeline build in that channel for that marketplace, and how do you see that evolving over time? Yeah, we do, actually. It's nice to see. As I mentioned in past calls, we were very pleasantly surprised on the AWS marketplace. And now extending that into the Azure marketplace, we're seeing, you know, we're seeing similar traction. It's early days, but we have closed deals through it, and we know that there's pipeline building. We speak very regularly with our Microsoft sales partners, and they're continuing to trudge ahead along with our teams. I'm optimistic about how Azure will do in a similar way that AWS did. Does that answer your question? Yes. That's great. Thank you. Thank you. Our next question comes from the line of Raimo Lenschow from Barclays. Your question, please. Hey, everyone. This is Isaac on for Raimo. Thanks for taking the question. Maybe on the education side, great to hear the strong performance in the quarter and how Jamf K - 12 has already started to pick up a little bit. As we think about you moving into the seasonally more weighted education portion of the year, how are you feeling from a pipeline perspective, and has Jamf K - 12 augmented your visibility at all to any degree? Yes. It certainly has. You know, we know, you know, we've been talking about this education refresh coming for quite a while, and we know that some jurisdictions have paused on that just out of caution and out of expense pressure. We are seeing some of that. We talked about it last quarter on the call. We're certainly seeing some pipeline build. We're in discussions with renewals and expansion of a lot of our international customers, particularly in the APAC region. You know, we're, again, we're optimistic about the K - 12 upcoming season. Certainly, with Identity Automation, that really gives us an extra push, not only an experienced sales team that's used to working with education, but we have a more holistic solution we can go to market with together. We're excited, along with our K - 12 offering. I'm optimistic about our upcoming season. Right. That's super helpful. Maybe one for David on the free cash flow side. It was nice to see the improvement year- over- year in Q1, as well as the reiteration of the full-year guide for that 75% growth. As we think about the shape of that through the remainder of the year, should that seasonality mirror what we saw in fiscal 2024, or is that going to be a bit more back-end weighted as that collections component starts to normalize again? Yeah. I think what we'll end up seeing is it will improve. It should improve throughout the year. If you look at DSOs for Q1, we're about 20 days over. The reason for that is, with the systems update we did last year, there were some billing corrections that we needed to make in the system. What happened was we ended up having a back-end loaded quarter from a billings perspective. We had a very large amount of billings in March. Those should start being collected, looking out in May, mid-May, late May, early June, sometime around that period. We would expect DSOs to return to a more normal range as we move out to the year. In turn, the free cash flow margins will improve as well throughout the year. Great. Thank you. Thank you. Our next question comes from the line of Patrick Walravens from Citi. Your question, please. Hi, guys. Thank you very much for taking my question. This is Nick on for Pat. Just one for me. David, it's been a little over six months since you've started working at Jamf. What is one thing that's been more challenging than you expected, and what is one thing that's been easier than you expected? Yeah. I would say probably the challenging piece would be the systems, right? Anytime you move to a new system, we move to a new ERP that went live in August. You know, we have 76,000 customers. We sell in 100 different countries. We're seeing huge benefit from the system as well as we're getting it optimized and performance is improving. I would say, like anybody that moves to a new system while you're operating a public company, a big company, that will happen. We feel great with where we're at. We're getting better visibility on numbers. We're getting better. You know, we can bill in different currencies now. We have the partner portal set up. There's a lot of good things that are coming out of it. Challenges, but I think in the long run, this will be a complete asset for us. On the good side, I would say it's our product and our customers. We have a rich set of blue-chip customers around the world. We sell into all verticals. This is a horizontal solution. It's not verticalized in any way. We can sell to any vertical. You know, our international reach as well. There's quite a bit of opportunity internationally still. I mean, I think it's very early days international. Challenges, system, of course, but then also, you know, the customer base and the product, the strength of the product is a pleasant surprise. Great. Thank you very much. Thank you. Our next question comes from the line of Samik Chatterjee from JP Morgan. Your question, please. Hi. This is Priyanka on for Samik. How are you guys doing? Great. How are you? Good. Good. You know, one question. I see from Identity Automation that you kind of have a fifth, if we're doing the back of the math, back of the paper math right here, we got $15 million uplift in the full-year guide, and then for revenue, and then $1.5 million for operating profit for, you know, 21% operating margin. Is this basically just to kind of keep it at 21%? What does Identity Automation's operating margins look like typically? Can it be improved once you kind of move away, move into commercial from the education-heavy portion that you see right here? I have a follow-up. Yep. No, that's a great question. Yeah. Identity Automation has a similar shape to revenues throughout the year as we do on the education side. The second half is stronger than the first half. In turn, you know, they do have large customers. It's U.S.-based. Naturally, they're more profitable. We expect that profitability to continue. We anticipate it. We said from the beginning it was accretive on the top and the bottom line. We still think that holds true. In Q2, we did add some additional expenses for go-to-market. We're seeing good demand out there. We're seeing some international demand as well. We're preparing for the Southern Hemisphere school season. Also, you know, as a side note, we have FX too in Q2 and throughout the year. We expect that the Identity Automation margins will improve in the second half of the year from the second quarter. All right. Fantastic. On the product line, you have Jamf for Mac and a few other things that you've launched. What makes it very differentiated from your offerings? You know, there could be like some sort of risk of seeing a bunch of different offerings that may or may not be differentiated. Will it drive cannibalization of bundling solutions where, you know, where customers are choosing, you know, I want this X, Y, and Z? I would love to get into those parts. Yeah. I can take that first part of it at least. You know, we're not, we really oriented the product certainly between the Mac for Enterprise and the mobile for Enterprise. There are different products in there. Some of them are similar, but many of them are very different, oriented toward the mobile piece of that, for example. There is a differentiation there. As I mentioned earlier, with Business Plan and Mac for Enterprise, the differentiation there is those products in the Business Plan are more oriented toward the smaller customers and what we've included in that. You know, we do not anticipate any cannibalization in that those, if we have to go through two buying motions to get that same product into that customer, you know, we have noted that with our platform solutions, not only do we have a higher conversion rate at a higher ASP, but we also have better retention. Those are all things that play into the fact that providing those platform solutions is the right thing for our customer. Again, we listen to our customers and how they want to buy. This is what we have been in discussions with them about. That is why we are providing them. Priya, one additional comment on Identity Automation revenues. We go to market with a cloud-based solution, but the company does have some legacy term-based that result in immediate recognition of a portion, a good portion of the revenues. There is maintenance that is pro rata over time. You will see that increase in Q3 and Q4, but it will end up being a little lumpy between Q3 and Q4 because of that. All right. Thank you so much. Thank you. Our next question comes from the line of Aidan Perry from Piper Sandler. Your question, please. Hi. This is Aidan on for Bravo. Thank you for taking my question. With the latest acquisition of Identity Automation, how should we think about R&D spend going forward and the product roadmap for security? Yeah. On the R&D spend, we're integrating the company together from a product perspective and go-to-market perspective, that will happen. We are committing a little more money upfront because we see the need. I think the addition of R&D to our total, it shouldn't throw the percentages off too much because it's part, I mean, it's a smaller company. It probably won't be that noticeable as you look out as to the consolidated R&D as a percent of revenues in the coming periods. All right. Thank you. Any more thoughts on how to think about the security product roadmap going forward? Yeah. As far as the security roadmap, again, it enhances. We listen to our customers. We actually got into security because our customers asked us to. This is just one more step in that continued direction. You know, allowing, especially as we have had a lot of success, as we've mentioned before in the deskless workflow, we saw a great opportunity for this, not only for our 40,000 education customers, but as we look to the deskless workflows, all of those things outside of education on the security standpoint. Again, this is an all-security play, so it's going to help enhance our security footprint. Very helpful. Thank you. Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to John Strosahl for any further remarks. Yeah. Thanks, Jonathan. Thanks everyone for your time today. We're pleased with our solid performance this quarter. We continue to monitor potential risks as they pertain to the current geopolitical environment and will adjust as needed. For now, we continue to execute on our growth and profitability initiatives and remain committed to our goal of achieving the Rule of 40. We hope to see some as we participate in the conferences over the next month. Thank you again for joining us, and have a great evening. Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.