Ladies and gentlemen, thank you for standing by, and welcome to Know Before second 1/4 2022 results conference call. Please be advised that today's conference call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, press star one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. Now it is my pleasure to turn the call over to Ken Talanian, Know before Senior Vice President of FP&A and Investor Relations. Please go ahead. As a reminder, our commentary today will include Non-GAAP financial measure. Information regarding our Non-GAAP financial results, their limitations and reconciliations of our GAAP and Non-GAAP results can be found in our earnings release, which was furnished with our Form 8-K today with the SEC and may also be found in the supplementary financial information available on our investor relations website at investors.knowbe4.com. In addition, some of our comments today, including those related to our guidance, may contain Forward-Looking statements that are subject to risks, uncertainties and assumptions. Should any of these materialize or should our assumptions prove to be incorrect, actual company results could differ materially from those projected or implied during this call. These risks are described in our Form 10-Q that will be filed in accordance with the filing deadlines established by the SEC. These documents can be found on the SEC's website, sec.gov, and on our investor relations website. During today's call, you will hear prepared remarks from our founder, CEO and President, Stu Sjouwerman, and CFO, Bob Reich. Lars Letonoff, our Chief Revenue Officer and Co-President, will join our question and answer session. With that, I will turn the call over to Stu. Thank you, Ken, and thank you all for joining us today. We are excited to share our results with you this morning. We've had another record 1/4 of strong execution, with second 1/4 results exceeding our guidance. This has resulted in over 36% Year-Over-Year annual recurring revenue growth and a strong 23.7% free cash flow margin. As many of you know, I started Know before to help organizations manage the ongoing problem of social engineering. We're the only public company dedicated to securing the human layer, a layer that continues to prove itself exceedingly critical to organizations of all sizes, public or private. The environment that we find ourselves in today has transformed this even further. We believe that securing the human layer is a matter of national security. Now, before I go through the highlights of our record performance, I first wanted to take a moment to talk about what this economic environment means for Know before. I want to reiterate that while we are constantly monitoring all of our Forward-Looking metrics, we have not seen any material indication of a change in our sales pipeline that could impact our proven Go-To-Market strategy. Our investment philosophy remains on track as well, especially regarding international expansion. To specifically address our SMB segment, we continue to see strong logo and dollar retention. Our average selling prices for the segment continue to move up, which we view as an indicator that our platform is being prioritized in SMB budgets. Our lead quote and referral trends all remain healthy, leading to predictable close rates. This year, we also have a record number of active SMB quota-bearing reps on board who are collectively producing excellent results. Historically, I have viewed these economic cycles as an opportunity to invest, which is a benefit that comes from running a streamlined organization with the kind of free cash flow that we have historically generated every 1/4. While these economic conditions can bring challenges to most businesses, I think that Know before is positioned for continued expansion with a balance of growth and profitability. There are a few reasons why I can confidently say this. The first reason for my confidence comes from the industry that we're operating in. Cybersecurity budgets are resilient. It is well known that the cybersecurity posture of an organization is crucial. However, the critical role that the human being plays in cybersecurity has only become clear within the past few years and is becoming more evident all the time. For instance, the 2022 Verizon Data Breach Investigations Report, or the DBIR, which came out this last 1/4, found that 82% of data breaches involve the human element. Organizations across the globe are experiencing increasingly frequent and debilitating data breaches, ransomware infections, and intellectual property theft, the vast majority of which are accomplished through social engineering attacks. We believe that a secure human layer is absolutely mission-critical to reducing these risks. Phishing attacks, which the DBIR calls one of the four key paths to your state, are continuing to rise as well. The Anti-Phishing Working Group published their latest report showing that phishing attacks have once again reached an all-time high in Q1 of 2022. Over 1 million attacks were detected during the period, more than tripling that of early 2020. This equates to over 1 attack every 8 seconds, and these bad actors only need to be right once. Know before's platform is proven to reduce the risk of phishing attacks. The cost is a small fraction of the overall cybersecurity spend for many organizations, and some of you may have seen that IBM Security released its annual Cost of a Data Breach report last week, which found that the average cost of a data breach in 2022 was $4.35 million. The second reason for my confidence is our market position. In spite of the success that we've seen so far, we still have a relatively low penetration in a global landscape that is predominantly greenfield. We're pioneering a category that is very much in the early days, all at a time when the geopolitical environment only continues to validate the need for our platform. The ongoing conflict between Russia and Ukraine has shown the world what modern cyber warfare looks like. Tom Burt, the head of Microsoft's Customer Security and Trust, just gave an interview last month offering a glimpse of this destruction. According to Burt, 10 hours before the first missiles were launched and the tanks rolled over the border, there was a huge wiper attack across 300 different systems in government and private sector companies in Ukraine. For context, a wiper attack is designed to wipe out as much data as possible and cause maximum network disruption. While the conflict itself is tragic, scenes like these are helping the international community realize that the cybersecurity posture of every organization is a matter of national security. The final reason that I'm confident in our ability to execute during a potential economic cycle is that our customer base itself is resilient. Our logo retention rate for both SMB and enterprise continues to remain above 90% this 1/4. This is a feat that we accomplished with over 52,000 customers in Q2 of 2022, over 46,000 of which we classify as SMB. COVID taught us that the spending habits of our customers are resilient as well, with the only measurable impact to our existing customers being a reduction in their seat counts as some of our customers furloughed employees for the first few months. We believe this is because they're aware of the value of the platform, which comes at a cost that some of our smaller SMBs can just charge to a credit card. Keep in mind, during this time, we continued to grow the number of customers with multiple products. We remain committed to long-term execution and continue to see an environment that only favors this. A few highlights from our Q2 results are evidence of this. Second 1/4 results exceeded our expectations across the board, with continued balanced growth in both top line and profitability, as well as strong free cash flow generation. This resulted in over $328 million in ARR, which is up over 36% Year-Over-Year as of the end of Q2. We believe this performance demonstrates our market-leading position in the human-centric cybersecurity space, and we continue to remain focused on innovation in order to meet the needs of our customers. I am pleased to announce that this now includes Know before Ventures, a fund dedicated entirely to supporting innovation in the human layer. We're enriching this critical ecosystem by focusing on supporting organizations that build integrations with our platform and utilize our unique data. For years, we've discussed the mismatch between cybersecurity spend on the human layer and the risk that it actually represents. The overwhelming majority of data breaches involve a human element, yet less than 3% of cybersecurity budgets have historically been dedicated to reducing this risk. By focusing on early-stage investments for organizations innovating within this space, we're hoping to support and expand the human layer for years to come. This is all part of our vision for the security awareness market, a vision that defines our own product roadmap as well. This includes both exciting new features and new products. A great example of this is SecurityCoach, the product we're planning to release in the second 1/2 of this year, resulting from the integration of our SecurityAdvisor acquisition. With SecurityCoach, we believe we are creating a new category in cybersecurity called human detection and response or HDR. How this works is we connect through a cloud interface to existing layers in our customer's security software stack and pull in security alerts to analyze and take real-time action. I am pleased to announce that SecurityCoach is currently in a closed beta, with initial feedback being overwhelmingly positive. An open beta is soon to follow, with general release still planned for Q4. We showcased a number of our new features to the public at KB4-CON 2022. Following the COVID environment of virtual conferences, it was refreshing to hold this one in person, and it was a great success. The number of attendees far exceeded our expectations, and the general feedback was overwhelmingly positive, with surveys showing 96% of 2022 attendees planning to attend in 2023 as well. One feature that KB4-CON visitors were particularly excited about is the Know before mobile app. It is currently in a closed beta with plans for a general release in Q3 2022. This has been a common request from our customers who want their users to be able to complete their new-school security awareness training directly from their phone. We believe that expanding our platform to mobile is the next step in boosting engagement and ultimately adds to the value that our customer base has grown to expect. As a reminder, we're operating in one of the few areas in cybersecurity, if not the only area, that isn't purely a replacement market. While most of our new business wins are greenfield, we also continue to see a number of competitive displacements. The greenfield wins continue to show that the value of security awareness is resonating with customers, and we believe that our competitive wins are further proof that our platform and customer support are superior. Here are a few examples of our global wins that we've had this last 1/4. We closed the largest deal in our history, a 243,000-seat opportunity with a state department of education. They cited the quality of our content and ease of deploying our platform across all districts as the primary reason for their choice. Above all, they understood that their in-house training was inadequate, given the current threat environment. We displaced a competitor in a 100,000 seat deal with a top multinational conglomerate. They had been unable to create a security culture with their current offering and also found our PhishER platform to be superior. Finally, we won a 100,000 seat deal with a multinational transportation enterprise. This was another great example of a large organization realizing that the threat landscape we're finding ourselves in today far exceeded their internal training capabilities, and utilizing our platform was a No-Brainer decision. The strong momentum we've been seeing in the international markets has continued as well. In Germany, we closed a 50,000 seat deal with one of the largest media conglomerates in the world. We also closed a 50,000 seat deal with a Swiss multinational building materials manufacturer. In Africa, we closed a 10,000 seat deal with a large state oil and gas organization, and we displaced a competitor for a 10,000 seat deal with a top multinational beverage company. Finally, we displaced a competitor in a 16,000 seat deal with an Italian medical device manufacturer. These are just a few examples of the types of wins that have become a common occurrence for us. We believe that they demonstrate how our customers continue to embrace not only the considerable risk reduction our platform brings, but also the thousands of hours we can save the IT department in triaging security events. Given the current shortage of skilled IT workers, our strategy of building time-saving features into our platform is paying off. This also remains a critical focus for our product roadmap. With that being said, I would like to thank our employees and partners for the dedication, commitment, and customer focus that has brought Know before to its market-leading position today. I am super proud of the great group of people driving this company and contributing to our communities. With that, I would like Bob to discuss our financial trends. Thanks, Stu, and good morning, everyone. Thanks again for joining us on the call today. We're pleased to be able to share our Q2 results with you this morning. This is my first full 1/4 here at Know before, and it was very exciting to see the strong execution across the business, delivering another solid 1/4 of results. I'll be sharing more details on revenue, costs, and cash flow for the second 1/4. As a quick reminder, unless otherwise noted, all numbers except revenue mentioned during my remarks are Non-GAAP. As you just heard from Stu, we continue to see strong revenue performance across our various Go-To-Market groups. In the second 1/4, total annual recurring revenue, or ARR, reached $328.3 million. Compared to $240.6 million a year ago, up 36.5% Year-Over-Year. Similarly, our reported GAAP revenue for the second 1/4 totaled $80.8 million versus $59.4 million during the same period a year ago, an increase of $21.4 million or up 36.1% year over year. Our Q2 growth was driven by another strong 1/4 across each of our key growth initiatives, new logo expansion, cross-selling to new and existing customers, and international expansion. We continued to see strong execution in each of these areas during the second 1/4. Let's start with our first pillar of growth, which is new logo execution. During the second 1/4, we sequentially added nearly 2,600 logos net of churn, bringing our total customer count to 52,216 as of June thirtieth. That's a 25.5% increase year over year, or over 10,600 new logos added net of churn. Our total customer distribution remains relatively consistent, with about 88% of our customers in the SMB space, which we define as organizations of less than 1,000 employees, and about 12% in the enterprise space, which we define as organizations with greater than 1,000 employees, where we've seen significant growth over the past few years. As a reminder, we remain focused on driving a balanced ARR mix between SMB and enterprise, and we again ended the 1/4 with ARR generally balanced between these 2. In terms of logo retention, both SMB and enterprise retention again remained greater than 90% during the second 1/4. We're particularly pleased with this continued strong retention rate in excess of 90%, especially when considering that our SMB customer base is over 46,000 customers. As Stu mentioned earlier, we're keeping a very close eye on all our leading indicators related to the health of this segment of the market, and all indicators remain positive. Our second pillar of growth is cross-selling to new and existing customers. During the second 1/4, we continued to see strong multi-product adoption, resulting in the percentage of customers subscribing to multiple products growing to 26.3% from 24.5% previously. This brings the total number of customers with multiple products to over 13,700, a number that has grown by 94% from Q2 of last year. While we're proud that over one-1/4 of our 52,000 customers have multiple products, we also view this as a strong opportunity for continued expansion. These are all users who understand the value of our KMSAT platform and continue to act as a rich source of leads to cross-sell into. We're seeing record levels of customers with 3 and even four products, and all were closed without having to bundle products. Although we don't report growth of our individual products separately, our combined revenue growth for PhishER, Compliance Plus, and KCM GRC again reached over triple digits year over year for the 1/4. Our cross-sell success is relevant not only to help expand our ARR base, but also to increase customer retention. Our retention statistics support that customers who purchase both KMSAT and PhishER get more value from our platform, and as a result, end up being much stickier customers. Our 1/3 pillar of growth is expanding internationally. Penetrating international markets remains one of our key pillars of growth. Our international revenue grew 56.1% Year-Over-Year and grew sequentially by $1.4 million from Q1, representing our strongest 1/4 of sequential growth from international in the last 3 quarters. This complements our consistent domestic momentum, which delivered 32.5% Year-Over-Year revenue growth during the second 1/4. The geographic distribution of our revenue continues to evolve, with revenue derived from international markets now representing 17.4% of our total reported GAAP revenue, up from 16.8% last 1/4. Although the majority of our revenue continues to come from North America, we believe there's a sizable greenfield market for Know before internationally, represented by a total addressable market, which is significantly higher than that of domestic, with key international regions at a similar inflection point previously seen in the domestic market. In order to capitalize on this compelling international opportunity, we continue to invest in both EMEA and APAC by focusing on hiring key Go-To-Market talent and expanding brand awareness. This international execution strategy is also closely tied to us building on our growing partner network outside of the U.S., which is our fourth pillar of growth. We continue to make meaningful progress on hiring key resources in our channel team and building marketing and distribution capabilities for our channel partners. For an example of the meaningful contribution that our channel partners continue to make, the largest deal in Know before history that Stu mentioned earlier came through our domestic channel business, and this will continue to be an important international execution initiative for us. The other global wins mentioned during Stu's remarks also serve as examples of international investment strategy producing results. While we're still early on in our expansion within these markets, we're adding marquee global brands to our client base on a monthly basis. As part of our philosophy of managing the business, we remain focused on sustaining our high growth rate with strong profitability, and we delivered margin expansion again in Q2. Our second 1/4 Non-GAAP gross margins improved to 87.9% from 85.9% a year ago as we continued to deliver an efficient performance on our direct cost structure. Our total Non-GAAP operating margin also showed healthy improvement during the 1/4, up to 13.5% from 7.6% in the second 1/4 of 2021, a demonstration of our ability to leverage our overall cost structure as we continue to scale. As a reminder, our Non-GAAP measures exclude stock compensation expenses, amortization of acquired intangibles, and acquisition and integration-related costs. Our total Non-GAAP operating expenses for the 1/4 totaled $60 million, up from $46.5 million in the prior year, an increase of roughly 29%. We continue to invest in headcount across the business, with total headcount increasing by about 33% versus the end of Q2 2021. This drove the vast majority of our operating expense increases. Year-Over-year increases in Non-GAAP sales and marketing expenses for the 1/4 were primarily attributable to higher Headcount-Related costs, including Headcount-Related subscriptions and overhead allocations, as well as higher marketing, PR, and demand generation costs contributing to our revenue growth. It's also worth noting that our marketing spend on industry events also increased year over year as we shift back towards in-person events versus primarily virtual arrangements in the prior year, including an incredibly successful KB4-CON customer event that we hosted in April. We continue to invest in sales capacity in our core markets. While we are still in the early stages of international expansion, we expect to continue to deploy additional resources to support growth in these markets. Non-GAAP technology and development costs have increased Year-Over-Year, primarily due to headcount increases across our product and content development teams. As we continue to expand our product offerings, you will see additional investments in key technical talent across the globe. These have been critical investments to support the development of the new products and features that Stu referenced earlier. The increases in Non-GAAP general and administrative costs Year-Over-Year are also attributable to investments in headcount and Headcount-Related costs, primarily to establish necessary administrative resources to support our international expansion and the ongoing life as a public company. These included headcount investments across legal, finance, HR, and our own internal IT teams. We also saw an increase in Non-Headcount related expenses related to professional services as we work to optimize and globalize our administrative systems. These investments are necessary to first build the foundational capabilities to ensure we continue to execute efficiently and at scale. We consistently try to highlight our balanced approach to both growth and profitability, and this is evidenced by our Non-GAAP operating income more than doubling Year-Over-Year, growing in Q2 by over 143% from $4.5 million in the second 1/4 of 2021 to $11 million in the second 1/4 of 2022. Let's now turn to cash flow and liquidity. We finished the 1/4 with cash and cash equivalents of $315.5 million, up from $273.7 million at 2021 year-end, illustrating our continued focus on maintaining a high level of capital efficiency and utilization of our liquidity. We're excited to highlight that this utilization will also now include Know before Ventures. As Stu mentioned earlier in his remarks, this is a program that is fully dedicated to supporting innovation in the human layer of cybersecurity. The purpose of this program is to provide early-stage investments that support an ecosystem of organizations actively building integrations with Know before's products. You'll note in our cash flow statement that we made $2.4 million of venture investments during the second 1/4. Moving on to our free cash flow, we generated $19.1 million of free cash flow in the second 1/4, resulting in a free cash flow margin of 23.7%. This compares to free cash flow of $12.8 million and free cash flow margin of 21.5% during the same period a year ago. The free cash flow results for the second 1/4 were driven primarily by continued upfront cash collections related to our favorable sales performance and some timing-related cost efficiencies realized during the 1/4. As we've discussed in the past, there is seasonality in our quarterly free cash flow margins, which has ranged anywhere from 22%-39% over the last 6 quarters. This is generally related to the timing of disbursements for expenses and investments during the year, as well as profiling of sales contracts and billings throughout a given 1/4. We're very pleased with our second 1/4 performance, which is indicative of our resilient cash-generating SaaS model and strong balance sheet, which is supporting a balance of Top-Line growth and healthy profitability. We're continuing to expand our resource pool, invest in new products and capabilities while maintaining sustainable, profitable growth as we lead this new category in cybersecurity. Before we go into guidance on future results, I just wanted to take a moment to dovetail onto Stu's remarks regarding the economic dynamics that continue to demand our attention. While we're constantly monitoring all of our Forward-Looking metrics, we haven't seen any material indication of a change in our pipeline, leads, quotes, referrals, or anything at this time significantly impacting our proven Go-To-Market strategy and our largely greenfield market opportunity. This is obviously a matter that we continue to monitor closely. For the 1/3 1/4 of 2022, we expect total revenue in the range of $85 million-$86 million. For the full year of 2022, we now expect revenue in the range of $333 million-$334 million, up from our prior guidance of $331 million-$333 million. This revenue guidance is based on our current product mix expectations for 2022. As a reminder, our KMSAT product has a small portion of revenue that is recognized upfront, and as a result, variability in product mix can have an impact on our reported revenue. We believe our guidance reflects the current economic dynamics and an appropriate level of conservatism. We also now expect free cash flow margin to be greater than or equal to 24% for the full year. As I mentioned, there is seasonality in our free cash flow, which can result in variations from 1/4 to 1/4. We believe this guidance is indicative of the strength of our operating model and ability to maintain a high level of growth with a balance of profitability. For modeling purposes, you can assume a diluted weighted average share count of between 182 and 184 million shares for both Q3 and full year 2022. As we look forward to the remainder of 2022, we continue to be very energized by the growth and momentum we've seen in the business. We're laser-focused on maintaining our market leadership, dedicated to the human defense layer and driving innovation around the new category of HDR, which we are excited to introduce to the cybersecurity ecosystem later this year. With that, we'd like to open it up to any questions. Operator? Thank you. At this time, I would like to remind everyone in order to ask a question, press star one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Brian Essex from Goldman Sachs. Please go ahead. Great. Thank you. Good morning, and thank you for taking the question and good to see the, you know, continued strong results. I guess maybe, Stu, one question for you with regard to, you know, your focus on SMB growth and adding SMB quota sales reps. Can you help us maybe understand what the unit economics look like there? How scalable is that? And what does this motion look like to, I guess, maintain efficiency as you drive those efforts? Yeah, good question. You have to understand that this is still like at least 90% greenfield, so the amount of scale we can achieve is only really limited by our own ability to execute. We are planning for the foreseeable future to continue to expand that team. Really only talking about U.S. domestic. If you look at international, that is even a larger greenfield and a TAM that is 6-7 times larger than U.S. domestic. Now international, we work with channel partners, and I'm sure that Lars, a little later down, can expand on that. As was earlier mentioned, this is still an early stage in a brand-new category. Does that answer your question, Brian? Yeah, I think that's helpful. And maybe just to follow up, any insight you can give us around attach rates? It looks like ARR per customer continues to grow really nicely. Is this primarily still KMSAT and PhishER, or are you starting to get more kind of compliance attached? How might that differ domestically versus internationally? When it gets to numbers, I generally defer to Bob. Generally speaking, yes, we have very healthy attach rates for PhishER and Compliance Plus starts to kick in nicely. Bob can maybe give some additional color. Hey, Brian, good morning. You know- Good morning. Honestly, it has been very consistent around sort of the distribution of the attach rate. Compliance Plus had a very, very strong 1/4, but to be honest with you, PhishER had a really, really strong 1/4 sequentially in the second 1/4 as well. There really hasn't been any sort of change in the dynamics or the distribution of the attach rate. Both of those products are still attaching very strongly. Both of those products are obviously contributing to the increase in average ARR. You know, with respect to distribution domestically versus internationally, it's probably a little bit more biased towards domestically. Just the international deals are generally larger deals, and those larger deals are usually starting with KMSAT. Overall, the trends have been really consistent over the last several 1/4, and we really haven't seen anything unusual or changing in terms of the attach rates. Got it. Really helpful. Thank you very much. Thank you. Next question comes from Shaul Eyal from Cowen. Please go ahead. Thank you. Good morning, guys. Congrats on the consistent performance in a challenging environment. Maybe for Bob, gross margins remain absolutely healthy, coming better than expected. Customers are purchasing additional modules. As we think about the second 1/2, should we be expecting some gross margin moderation, or pretty much we should be within the same level that we are at right now? I have a Follow-Up. Yeah. Good morning, Shaul. It's interesting. It's the exact same question we had in the first 1/4, and again, I had this little code word in my prepared remarks around an efficient performance on the direct cost structure. Honestly, we did see, you know, a better performance in the direct cost structure than was originally anticipated. Some of that is really around the fact that we are achieving more and more scale, and that is providing a little bit more efficiency in some of those people elements that reside in the direct cost structure. Things like our customer relationship manager population- Got it. Got it. our direct tech support. So we are seeing a little bit better efficiencies than we were originally expecting there. I do think, though, that there has been some delays in some of the hiring that we've been trying to do. You know, we've normally biased, and I think we are biasing in terms of our own internal forecast that those margins could compress a little bit, but it really won't be very significant as we continue to add resources into the customer support side and the CRM side. Understood. Maybe, you know, Stu mentioned that, you know, Lars is gonna contribute his fair share. My next question is on that international opportunity. Is it more greenfield or is it more displacement driven? Yeah, international is absolutely more greenfield. If you look at the international markets, you have each of these primary markets are in a different level of maturity than we are here in the U.S., and, you know, we're kinda going after those in a different way. When you talk about SMB, it's really 100% a greenfield opportunity for international. A little less so for enterprise because with the bigger global size companies, they're well on the way to having something with regard to security awareness training. Understood. Thank you. Your next question comes from Fatima Boolani from Citi. Please go ahead. Hey, good morning, guys. This is Mark on for Fatima. Thanks for taking our questions. So maybe just to start off, thanks for the high level views on your sales pipeline and Go-To-Market. In the current environment, we're really starting to, you know, frequently hear companies speak to, you know, sales cycle elongation. To that matter, can you give a sense of, you know, what you're seeing in your deal negotiations, especially on the enterprise, and, you know, what type of impact is it having on, you know, pricing, discounting, elasticity, and how you're maybe adjusting Go-To-Market, if there are any adjustments? Thanks. You know, we definitely monitor every single part of our sales cycle and we're really not seeing any material changes in anything, be it the number of opportunities coming in, our ARR, our lead generation, our time for a sales cycle. I mean, everything up to this point seems to be cranking along as normal. We don't really see any changes as far as deal elongation. Not really seeing the sales cycles extending either. Even with the, you know, like the war in Ukraine, we're actually seeing some of the sales cycles shorten, but I know that's more of just a temporary reaction to a horrible event there globally. Okay. Got it. Thank you. That's very helpful. Maybe just to follow on, you know, can you maybe delve a little deeper on the SecurityCoach side? Maybe give a sense of, you know, how you expect the, you know, revenue monetization efforts to ramp there. In terms of timing, magnitude that we can expect, going forward. Thanks. Sure. We are currently in closed beta with very good results. We're going into open beta later in Q3. We still scheduled to release this product in Q4. The expectations haven't changed. We are still very excited about this new category. The TAM that we mentioned earlier is holding up. We haven't yet finished our pricing surveys and setting the final price. We have shown the product at a few trade shows with uniformly very positive feedback. You will see us release this product this year. I do not expect meaningful revenues in Q4. This is really a 2023 product. Great. Thank you guys very much. Your next question comes from Rob Owens from Piper Sandler. Please go ahead. Great. Good morning, and thanks for taking my question. Sales related question, so I'm guessing, you'll shift it over to Lars. Wondering on customer acquisition and the 2,600 that you added relatively flat Year-Over-Year and still a strong result, but how should we think about that, as we look at the back 1/2 of the year? Should that be relatively flat with what was a record customer acquisition year last year, or do you think we could see some growth on that front? You know, Rob, we're just steady moving along at the same pace. I would expect it to remain the way it is, just kinda flat, but I wouldn't expect to see any big accelerations in that. We are making some investments in international and you know, we should next year, those investments in international should start picking up. I don't see any real material acceleration in that. No, let me add something there, Rob. Most cybersecurity companies would give away their right arm for adding 2,500 logos per 1/4. It may be flat, on the other hand, it is fantastic execution. Absolutely. Thanks for the color. I guess since it's a 2-Question morning, you mentioned the large deal with the State Department of Education. Can you remind us your SLED and Fed opportunity, especially as we enter the 1/3 1/4 here, kinda where you guys are at, overall? Thanks. SLED Fed has always been a huge part of our Go-To-Market. We are seeing, I would say in, especially in, the SLED market, and then also federal. What we're seeing now is previously we would be involved in pieces of these very large organizations, and we've been kinda chipping away one piece at a time. What we're seeing now is from that success that these huge mega organizations are now coming in and then saying, "Hey, you know, we're hearing good things about you. You're in 7 of 15 of our departments. We wanna come in and just buy for the entire organization at once." We expect to see a lot more of that in the future, and that could accelerate as well in the federal space. Great. Thanks. Your next question comes from DJ Hynes from Canaccord. Please go ahead. Hey, good morning, guys. Stu, I remember a couple of quarters back, you said you felt like this was the year where it made sense to take some margin and to try and grow a little bit faster. Just based on guidance, it seems like the thinking has changed a bit there. It doesn't sound demand driven, right? Curious if the initial plan was just too aggressive or what's happening there? It's a good question because a couple of quarters ago, we were thinking, well, we are gonna invest as much as we can in international. I said, "Listen, our, it's gonna be a little lower." The reality is that we are moving internationally as fast as we possibly can, but it is going a little slower like Bob indicated earlier. We're just not spending the money that I was thinking I was going to spend. That really explains this higher margin percentage. Keeping it simple for the moment. Yeah. Yeah. Maybe Bob wants to hop in, but. No, hey, DJ. Honestly, Stu is absolutely correct. I mean, this is a sequence in our international expansion and things, you know, happen in a sequential manner. It doesn't make any sense for us to get one step ahead of a different step and spend money internationally that's not ultimately gonna bear fruit and provide us with a return. We're just working through that sequence, and it's just taking a little longer than the original profiling suggested. Yeah. That makes sense, and no one's gonna push back on higher margins in this environment. Lars, maybe one for you. Just I'm curious, do you find customers are more ROI-focused in this environment, or is this something that, you know, buyers just know that they need to have it? The reason I ask, I mean, it seems to me like spending up front to potentially save money in the future isn't the easiest pitch in a tight spend environment. Curious how you manage those conversations. Gosh, I don't really see a lot of change. You know, I'm hearing a lot here and there on TV and what have you about economics. You know, our sales cycles aren't changing. On the purchase side, offering terms or not offering terms or asking for that, we're not seeing that changing, where they're trying to do, like, multiple year payments. It's just pretty much for us, what I'm seeing now is business as usual. Good. That's great to hear. Yeah. One small addition there. This is a critical layer in an organization's cybersecurity stack. The price is still a No-Brainer, and the ROI question isn't necessarily front of mind. This is more, we have to have this. We can't expose ourselves to employees clicking on phishing links. We honestly do not see that come up much. Got it. DJ, I'll add to that. We're, you know, kind of a No-Bainer price. This is not relative to other technology spends. This is not an expensive item, and it's a huge bang for the buck. Yep, super helpful color, guys. Thank you. Congrats. Your next question comes from Tal Liani from Bank of America. Please go ahead. Hey, Stu, it's Madeline Brooks on for Tal Liani. Thanks for taking our question. Just one question from us. The hiring plans, can you talk a little bit how you're thinking about hiring as we're going into the slowdown? I know you said earlier, too, you've had some delayed hiring. Just how should we think about that in the second 1/2 of the year? Thank you. Yeah, Madeline, I generally see the business cycle as a great opportunity to expand. I've lived through 2 of these. We do not plan to slow down at all, especially our international hiring is ramping up because that is where a huge opportunity still lives that we wanna capitalize on. We're really behind our hiring targets, frankly, and that's also the reason why the margin percentages were up. I hope this is a short answer, but I hope it illustrates where we're at. Got it. Thanks so much. Your next question comes from Joel Fishbein from Truist Securities. Please go ahead. Hi, it's Joel Fishbein, actually from Truist. I wanted to follow up, Stu, on your remarks with regard to your recent pipeline, product pipeline. I know you have the products coming out in Q4. Can you talk about the remaining products? You know, I know the pipeline's robust, and I'd love to hear some of the new add-ons that you're bringing to market soon. Joel, our focus mostly is on SecurityCoach. That is a main thrust in the sense of, you know, company-wide, there are many different sectors, call them divisions, that are ramping up for this. That's R&D, but it's also the sales team, the marketing team, there's internal training, et cetera, et cetera. There are a few other products that sit in the pipeline that we are working on, but we decided to focus this year on the SecurityCoach release because that is a major product that we find our customers are also looking forward to. Great. Thank you. Thank you, Joel. Your next question comes from Alex Henderson from Needham. Please go ahead. Great. I actually have 2 questions I'd like to ask. The first one is, with Mimecast and Proofpoint having now gone to the private markets, you know, has that changed the competitive environment? Has it changed pricing with larger accounts? Any implications for the business, and how are they behaving in the private market? I think Lars is the best positioned to give some color there. Yeah, Alex, I think I would think the main thing that we're seeing with Mimecast and Proofpoint is, you know, the customers are coming to us and I don't think they're getting the same level of service and quality that they had prior. We're getting a lot more interest coming in the door on our product, as with most acquisitions, that's typically the case, at least immediately. I don't see any pressure on pricing. You know, we've been competing with these guys for many years. We really know exactly where we need to be on pricing, and I don't see them really pulling those in. The one area that I would see pricing changing on their side is when we're actively poaching their business. That's when you're gonna see these guys do aggressive bundling or even in some cases to give away the product for free in a bundle. Again, you know, we're best of breed product. We sell our product really based on that, on how the quality of the product, so it hasn't been, you know, a big threat to us. The second question I wanted to ask. Before I do it, I just wanna compliment you guys. You guys really did a great job of laying out the fundamentals. You know, it was almost like it was written by a sell-side analyst. It was exactly what people would wanna hear. Compliments there. I wanted to go to the international side of it. I mean, obviously it's a primary driver of growth, and I have 2 questions related to it. The first is, you know, what portion of the international is just simply multinational domestic companies here that are buying it into the international market? More importantly, as we look at the international customers, you know, the economy in Europe in particular is under enormous duress. We've seen the US exporting inflation to them with the 20% swing in the value of the exchange rate versus the euro and the pound. Pricing of a lot of products have gone up on top of that. They're looking at 20%-30% cost increases for a lot of products in the tech field. The question I have for you is, A, how much of your business is US dollar denominated internationally? Second, more to the point, how are you handling that enormous increase in cost that they're absorbing given their budgets are probably flat? Are you giving them better discounts, is there price pressure there? I assume that there isn't because your pricing is so low. But can you address that conceptual issue of how you're handling that? I think that Bob is probably best positioned to give you some insights there. But I did wanna quickly answer the first part of your question. The way we count our revenues, where the headquarters is where the sale lands. If we talk international, those sales are actually logos that are in other countries. Bob will take it from here. Yeah. Hey, Alex, good morning. You know, with respect to FX, the vast majority of all of our international revenue transactions are actually denominated in USD. You know, we do most of our international business through channel partners and our you know our channel partners ultimately end up sort of navigating the FX with the end users, with the you know with the end customers. We are you know we are generally billing almost all of our international revenue in USD. There are some exceptions, but most of Europe is USD, all of U.K., Ireland is USD. Germany is actually denominated in euros, but it's you know it's not very significant. Overall, roughly 3% of our total revenues is denominated in currencies other than USD. It's a really, really small number. That said, you know, we do know and you know, Lars can confirm this. We do know that the sales reps in their negotiations with the channel partners, you know, obviously are taking into consideration the exchange rate impacts in from a discounting standpoint. I think there is sort of a natural FX impact even though these transactions are being denominated in USD. How are you handling it? Well, yeah, I mean, I think it ultimately ends up resulting in slightly higher discounts that are a proxy for the FX impact, even though it's being denominated in USD, which is sort of what you're predicting, right? Right. Thank you very much. That's helpful. Your next question comes from Hamza Fodderwala from Morgan Stanley. Please go ahead. Hey, guys. Good morning. Thanks for squeezing me in. Just one quick one from me and appreciate all the really great color earlier in the call. Bob, this is for you. I think you said, you know, pretty healthy pipeline. It seems like demand overall remains strong. Just as you look into the back 1/2, you've got this healthy pipeline. Are you assuming a lower close rate on that pipeline just given some of the macro uncertainty? Any color you can give us around just the conservatism embedded in the back 1/2? No, Hamza Fodderwala. I actually think when it comes to the guides that you know, honestly, we've used the exact same sort of philosophy with respect to the guides of Q3 and full year. You know, we guided roughly you know, somewhere between 33%-35% Year-Over-Year growth in Q1 and Q2. We're doing the same thing in Q3. You know, full year now reflects an estimated you know, a little bit north of 35% Year-Over-Year growth. So I don't think that there's any sort of change in assumptions in growth rates or anything that's that granular in terms of our calculus here. You know, I think Q3, the level of precision is obviously pretty high and you know, we're guiding very consistent with the way we guided Q2. I do think that, you know, there is just sort of a natural bias to be a little bit more conservative in terms of the full year, just given, you know, given the fact that there are uncertainties and, you know, even though we're not seeing anything, any sort of early indicators here as we sit here on August fourth, you know, we still have 5 months of the year to go. Thank you. There are no further questions at this time. I will turn the call back over to the presenters for closing remarks. Thank you very much for attending, and that really is all. Hope to see you in 3 months. This concludes today's conference call. You may now disconnect. Please-