Hello, and welcome to Mandiant's quarter 3 2021 financial results conference call. My name is Sam, and I'll be your operator for today's call. I'll now turn the call over to Barry Stern, Senior Vice President of Finance at Mandiant. Barry, you may begin. Thank you, Sam. Good afternoon, and thanks to everyone on the call for joining us today to discuss Mandiant's financial results for the third quarter of 2021. This call is being broadcast live over the Internet and can be accessed on the investor relations section of Mandiant's website at investors.mandiant.com. With me on today's call are Kevin Mandia, Mandiant's Chief Executive Officer, and Frank Verdecanna, Executive Vice President, Chief Financial Officer, and Chief Accounting Officer of Mandiant. After the market closed today, Mandiant issued a press release announcing the results for the third quarter of 2021. Before we begin, let me remind you that Mandiant's management will make forward-looking statements during the course of this call, including statements relating to the company's guidance and expectations for certain financial results and metrics, the company's priorities, initiatives, plans, and investments, drivers and expectations for growth and business transformation, expectations, benefits, capabilities, and availability of new enhanced offerings, market opportunities, and go-to-market strategies. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future, and we undertake no obligation to update these statements after the call. For a detailed description of the risks and uncertainties, please refer to our SEC filings as well as our earnings release posted an hour ago. Copies of these documents may be obtained from the SEC or by visiting the investor relations section of our website. Additionally, certain non-GAAP financial measures will be discussed on this call. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the investor relations section of the website as well as the earnings release. With that, I'll turn the call over to Kevin. Barry, thank you very much. Thank you to all the investors, employees, customers, and partners joining us on our first-ever earnings call as Mandiant. We have never been more excited about our focus, our execution, and the opportunity, and we appreciate your interest and support. In June of this year, we announced our intended divestiture of the FireEye Products business. We believed then, and we believe even more so now, that the separation of the FireEye products from Mandiant Solutions would unlock high growth and improve our operating leverage. Our goal was to remove complexity and create a singular focus on our most differentiated solutions. To that end, I'm very pleased that we completed the divestiture of the FireEye Products business on October eighth and rebranded to Mandiant and changed our ticker symbol to MNDT that same week. With these accomplishments behind us, I believe Mandiant is the company best suited to close the cybersecurity gap that exists, providing solutions needed to augment security teams in a manner that promotes confidence in their security effectiveness. Our launch of the Mandiant Advantage SaaS platform has enabled us to deliver our industry-leading threat intelligence, our industry-leading security expertise, and scale them through software, which is rapidly becoming both our growth driver and the majority of our billings. Today, I will provide you with a few brief financial and operational highlights to demonstrate our early success in the relaunch of Mandiant, and I will share significant changes we made in the third quarter to accelerate our growth. Please note that my remarks about Mandiant and third quarter performance will refer solely to our continuing operations for the Mandiant Solutions business. Mandiant delivered positive results against all our guidance ranges, including revenue, gross margin, operating margin, and earnings per share. While not formally guiding billings, ARR, and cash flow, Mandiant delivered above our expectations in all of those areas as well. Mandiant billings grew 40% year over year to $139.3 million, led by platform cloud subscription and managed services billings growing 58% year over year to $73.6 million. Mandiant services billings grew 24% year over year to $65.7 million. This resulted in a business mix of 53% subscription billings and 47% services billings. Our focus on delivering solutions and services through the Mandiant Advantage platform will further accelerate our transition to subscription-based services and solutions. Our Q3 subscription billings growth was bolstered by our best-ever quarter for Mandiant Security Validation and our largest validation deal ever. Revenue for Mandiant grew 22% year-over-year to $122 million, and annual recurring revenue for Mandiant grew 26% year-over-year to $264 million. Mandiant deals greater than $1 million grew 79% year-over-year from 14 deals a year ago to 25 deals this past quarter. The total value of these deals greater than $1 million almost doubled, growing from $24 million-$47 million year-over-year. As an example of these larger deals, we added a new Fortune 50 customer who, in addition to our incident response expertise, asked us to help transform their security program through a Powered by Mandiant approach that leverages our full suite of intelligence, validation, and the Mandiant Advantage platform. We are pleased with these financial results, but we are even more excited by the operational highlights and go-to-market changes we are making to accelerate our growth. I would now like to discuss some of Mandiant's innovations. We continue to make great progress on our Mandiant Advantage platform. Mandiant Advantage is a multi-vendor XDR platform delivered as a SaaS offering, and it contains modules such as threat intelligence, security validation, automated defense, and now, added in the third quarter, attack surface management. We are innovating on the platform at great speed. I'm going to highlight four examples for you. First, we now offer multi-vendor managed defense. Customers have asked for Mandiant expertise and threat intelligence to back their security teams for years. With the divestiture of the FireEye Products business, Mandiant will be supporting more technologies as a multi-vendor XDR capability. Previously, to leverage our Managed Defense, customers also had to rely on and purchase FireEye technology. Now our customers can rely on Mandiant expertise and intelligence to leverage the controls and vendors that they choose. Second, we plan to launch Active Breach and Intel Monitoring in the first quarter of 2022. This capability enables visibility into Mandiant Threat Intelligence in real time. It is the functional equivalent of collaborating with our incident responders in the field, proactively checking our customer's environment with the most up-to-date intelligence available as we respond to the new and novel cyberattacks. Third, we plan to roll out what I consider to be the most comprehensive and reliable Ransomware Defense Validation solution available in the market. Ransomware preparedness is a boardroom topic, and executives and directors wanna know if they can withstand ransomware attacks that occur every day. Mandiant's Ransomware Defense Validation tests a customer's ability to defend against the ransomware attacks we are seeing in the field and provides unvarnished truth about an organization's readiness to various ransomware actors. We have been performing ransomware assessments for years. This service is built to be more technology-enabled, so we can deliver a high-velocity, channel-ready, and competitively priced offering to reach new markets for Mandiant. Fourth, we also innovated inorganically in the third quarter by acquiring Intrigue. Intrigue allows Mandiant to deliver Attack Surface Management, or ASM, as another module in the Mandiant Advantage platform. ASM identifies how organizations could be compromised by identifying applications that are visible, vulnerable, and exploitable, and we point that out in minutes. We have already derived significant value in our services business from this capability, and we plan to integrate Attack Surface Management into the Mandiant Advantage platform in the first quarter of 2022. In addition to these four innovations, we also added new functionality to our Automated Defense module in Mandiant Advantage that codifies our human expertise into machine learning and analytics. Specifically, in addition to numerous improvements to our machine learning decision models to automate and scale our expertise to more confidently identify security events that matter, we added new functionality to our EDR-focused models. These new models allow us to more robustly assess metadata of various attacks and improve our ability to find the proverbial needle in the haystack at machine speed. With each data science improvement we make to Mandiant Automated Defense, I believe we are measurably improving our automated detection and response capabilities and improving our journey to automating our expertise. Now I'd like to provide some services highlights. Mandiant professional services continue to be in high demand. We had a record third quarter for Mandiant consulting revenue at $61.7 million, representing 20% year-over-year growth while growing deferred revenue to $313.1 million. We now have over 600 professional consultants worldwide, and we continue to have great success recruiting talent, as we believe our mission of being trusted advisors to some of the most important organizations in the world attracts great talent. While we continue to respond to very prominent and well-publicized security breaches globally, we also continue to maintain a healthy balance across our services portfolio, scheduling proactive and strategic services well into 2022. Our security transformation practice grew revenues approximately 40% year-over-year. We also launched Mandiant Academy, expanding our education offerings with a full range of options designed to close the mounting cybersecurity skills gap. Now I'd like to discuss some steps we have taken to accelerate Mandiant's growth. Because Mandiant is now vendor-agnostic after the divestiture of the FireEye Products business, we are in a far better position to eliminate friction with our channel partners, expand technology partnerships, and improve channel relationships. Our goal is to not only deliver dynamic cyber defense to our customers, but also to other security companies that want our intel and expertise to augment their capabilities. Because of such an immediate broadening of possibilities from Mandiant to partner, we established a strategic operations group under industry veteran Rob Potter to bring significant leverage to our business model, and we implemented five main components of this strategy in the third quarter. First, we created a technical alliances group to connect our intelligence, expertise, and Advantage platform to other security product companies. As an example of our efforts, we recently announced a strategic partnership with Splunk that enables Splunk customers to, first, operationalize Mandiant Threat Intelligence for adversary detection. Second, interact directly with Mandiant experts for incident response. Third, validate their security posture against emerging and novel attacks. The second endeavor we have to leverage our newly gained vendor-agnostic position is we created a new group focused on strategic alliances for system integrators and MSSPs. We plan to enable integrators and MSSP to use the Mandiant Advantage platform to deliver security transformation and modernization programs for their customers. Third, we created an industry-aligned expert team to help us navigate and deliver tailored strategic services to various industry sectors such as finance, healthcare, defense, utilities, among others, addressing their specific requirements based on mission, regulations, and their risk profile. Fourth, we hired a new leader to create our strategic alliance program targeting partnerships with global governments. We are leveraging her knowledge, expertise, and network connections to focus and expand Mandiant's relationship with important government agencies. Fifth, we hired a new channel lead to create and manage a channel program that addresses the middle market in an efficient way. This was purposely timed with the new solutions announced at our Cyber Defense Summit in October. We are combining our technology and talent to deliver relevant solutions through our Advantage platform, and these offerings were created specifically to fuel our middle market growth, provide channel leverage, and enable a high-velocity sales model. Also in the third quarter, we hired Vikram Ramesh as our new Chief Marketing Officer. Vikram has helped us relaunch Mandiant, and he has a bold plan to amplify our capabilities and brand. As you can see, we have made important changes to take advantage of the Mandiant opportunity. We believe our strategy will elevate and accelerate Mandiant's growth. We are in the midst of Mandiant's first quarter as a standalone business. We believe we are uniquely positioned to address an enormous market need. We intend to continue automating Mandiant's expertise to create a scalable, more effective platform for the next generation of security operations. I believe we are at the onset of the convergence of security automation, managed services, XDR, and security consulting. This convergence is necessary to help deliver the outcome organizations want. They want a comprehensive, effective, and efficient security program that instills confidence that the organization is secure from the latest cyber threats. Finally, it is with some sadness that I share with you that our CFO, Frank Verdecanna, has announced his intent to retire next year once we select and appoint his successor. I have spent many years working with Frank to transform FireEye. He has been a formidable, positive force and an unwavering partner for me. Until he retires, Frank will continue to help the team grow Mandiant while also helping us find the right successor for the next leg of the journey. Frank, we are all deeply appreciative of your commitment and contributions, and we all wish you well with your eventual retirement. You will be missed. With that, over to you, Frank. Thanks, Kevin, and I appreciate the kind words. It has been a privilege to work with you and the entire Mandiant team. I'm very proud of our mission and what we've achieved over my nine years here. For today's discussion, I will focus on our continuing operations and take you through the walk from our Q3 results for continuing operations and how the divestiture, which was completed on October eighth, is expected to impact our Q4 results. Our guidance for the third quarter focused on continuing operations, and I am pleased to say that we met our guidance ranges for all metrics and our revenue was at the top end of our guidance range. In addition, we had very solid performance in our last full quarter of discontinued operations. As always, I will be referring to non-GAAP metrics except when discussing revenue and cash flow. Our non-GAAP measures exclude stock-based compensation, amortization of intangibles, non-cash interest expense on our convertible debt and convertible preferred equity, restructuring charges, accretion of Series A convertible preferred stock, and other non-recurring items. Now let's look at the reported results for continuing operations for the Mandiant Solutions business. Mandiant billings increased 40% from Q3 of 2020, with strong performance in platform cloud subscription and managed services and professional services. We ended the quarter with record deferred revenue of $315 million. The platform cloud subscription and managed services category grew billings by 58% year-over-year in the third quarter. We achieved this with a slight one-month decline in average contract length, which was approximately 22 months for the quarter. Growth in the platform cloud subscription and managed services billings was driven by solid demand for Mandiant Intel, Managed Defense, and Validation subscriptions. Mandiant Security Validation had its best quarter ever. While we encourage you to look at revenue as the best metric to evaluate our professional services performance, it is still worth noting that professional services billings were up 24% year-over-year in the quarter. Last quarter, I indicated that we expected to see annual recurring revenue accelerate during the second half of 2021 to the mid-20% levels. I'm pleased to report that ARR for Mandiant Solutions increased 26% from the end of Q3 of 2020 to $264 million. ARR will be an essential metric for Mandiant Solutions as we continue to transition to more of a SaaS business model. For continuing operations, we added 212 new logo customers, up 14% from Q3 of 2020, and closed 25 transactions greater than $1 million, compared to 14 in Q3 of 2020. Turning to the translation of our strong billings and ARR performance into revenue, Mandiant revenue increased 22% from Q3 of 2020, with a strong performance in platform cloud subscription and managed services and professional services. Our revenue of $122 million was at the top end of our guidance range we provided in last quarter's earnings release. The platform cloud subscription and managed services category grew 24% year-over-year in the third quarter. Professional services revenue increased 20% year-over-year in the third quarter. Given Q3 has significant seasonality due to summer vacations, we saw professional services essentially flat compared to Q2 as we had anticipated. Now let's look at our gross margin and operating margin. Our 60% gross margin for the third quarter slightly exceeded our guidance range, and operating margin of -27% for the third quarter was at the top end of our guidance range. The platform cloud subscription and managed services gross margin was 70% in the third quarter, up from 66% last quarter and 62% from Q3 of 2020, driven by increased scale in our subscription business. Professional services gross margin was 51% in the third quarter, down slightly from the summer months. As a reminder from last quarter, accounting for discontinued operations related to the sale of FireEye Products business requires aggregating all revenue and directly attributable costs into net income from discontinued operations, which is what you see on the face of our financial statements. Expenses for shared resources and shared programs, including nearly all general and administrative and IT employees, as well as shared events and marketing campaigns, are included in the expenses of continuing operations, even if they support or benefit discontinued operations. Included in Q3 operating expenses of continuing operations are approximately $15 million in expenses incurred to support the FireEye Products business and a further $3 million in expenses for shared programs and other overhead that would have been allocated to FireEye Products business under segregated reporting for the combined company. The $18 million swing had the effect of reducing the operating margin for the Mandiant Solutions business by approximately 15%. As a result, our operating margin for continuing operations was negative 27%. The allocation of these cash expenses to continuing operations also reduced the reported cash flow for continuing operations. Now that the transaction is closed, most of the cost of shared resources incurred to support the FireEye Products business will be reimbursed to Mandiant under the Transition Services Agreement. Now let's turn to our current outlook for Q4. For Q4, we expect revenue to be in the range of $129 million-$130 million. On a year-over-year basis, the midpoint of our guidance range implies revenue growth of approximately 19%. We are expecting the mix between SaaS and services to be approximately 50/50, and year-over-year growth rates for both SaaS and services to be in the range of 18%-20%. Similar to Q2 and Q3, we expect an increasing percentage of new validation deals to be cloud versus on-premise in Q4 relative to last year. This is expected to reduce the Q4 year-over-year SaaS growth rate by approximately five percentage points. As a reminder today, any cloud validation deals are 100% ratable recognition, and any on-premise deals are recognized with a significant portion of the revenue recognized upfront. This is expected to change in January of 2022, when even our on-premise validation deals will be 100% ratable. This is a result of changes to on-premise validation deployments, which will enable customers to receive real-time intel updates as part of the Mandiant Advantage platform. This change will provide customers the benefits of more real-time access to the latest breach intel, which we believe will further increase the efficacy of our validation platform. The change will also simplify our financial model going forward because 100% of our platform cloud subscription and managed services category will be ratable. This change will create a headwind in 2022 for recognized revenue, but will dissipate in 2023 as the buildup of deferred revenue amortizes into 2023. Our best estimate at this point is that the headwind will be approximately $30 million of recognized revenue in 2022. We expect gross margins of between 61% and 62% in Q4, which is up both sequentially and year-over-year as the SaaS portion of our business scales up. We expect an operating margin of between -20% and -22%, implying approximately $2 million of sequential increases in operating expenses, primarily due to the Mandiant branding relaunch costs in Q4 and increased non-commission expense related to typical seasonal increases in bookings for Q4. This will be partially offset by the reimbursement for G&A and IT costs attributable to continuing operations that support the FireEye Products business during the portion of the quarter following the closing of the divestiture. We expect earnings per share between -$0.12 and -$0.13. While we are not providing 2022 guidance until our Q4 earnings call, I'd like to discuss a few items which will help you understand our expectations of the Mandiant business exiting 2021. We expect we will exit 2021 with year-over-year ARR growth rate at the mid-20% level and expect our year-over-year growth rates to progress throughout 2022 and exit the year near 30% year-over-year growth rates. From an operating margin perspective, we expect to see some leverage in 2022, but not a significant amount, given 2022 will include approximately a $30 million headwind from moving to ratable recognition for validation, additional branding costs for the Mandiant relaunch, and some stranded costs relating to IT facilities and the expected wind down of the TSA operations. For 2023, we currently expect to be non-GAAP operating margin positive. I look forward to explaining our 2022 expectations in more detail as part of our Q4 earnings call and laying out the bridge to our long-term model as part of the Analyst Day we plan to hold in the first quarter of 2022. In closing, I'd like to reiterate that the sale of the FireEye Products business, which was completed on October 8, will enable us to concentrate our efforts on growing the Mandiant business. We remain more confident than ever that this full focus will result in financial and go-to-market changes that we believe will make Mandiant stronger and drive value for our customers and then investors. I will now turn the call over to the operator for questions. Operator? Thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your line is unmuted locally. Our first question comes from Brian Essex of Goldman Sachs. Brian, your line is now open. Please go ahead. Great. Good afternoon, and thank you for taking a question. You know, I guess upfront, Frank, congratulations on the retirement. Right. You financed the first note I ever wrote, so, you're making me feel old. If we could just kinda start on transition expected ahead. As you're shifting from on-prem to cloud from a revenue recognition perspective and also from an operational perspective, how is this handled with customers? Is this a forced migration? What is the structure of the contracts of those on-premise customers and how is it gonna be viewed from their perspective? Yeah, I think, you know, the vast majority of customers upon renewal and, you know, upon release of the new software will be getting real-time updates from the Mandiant Advantage platform. You know, those real-time updates really increase the ongoing efficacy of the deployment and get us to a position where we could recognize that ratably rather than upfront. Okay, this will be a rolling migration as they come up for renewal throughout the course of the year? Well, for any customers that have already were on-premises in the first place, we've already recognized the majority of that revenue at the time of the sale. When they come up for renewal- Yeah. Rather than recognize another year or two upfront, it will just go ratable from that point forward. Got it. That's helpful. I guess, can they make the decision not to do it and stay on the current platform, or are there certain customers that prefer to have revenue recognition or at least pay all upfront? Yeah, the payment actually won't drive whether, you know, it's recognized ratably or upfront. It will really be- Okay. whether, you know, they're moving to the Mandiant Advantage platform and getting real-time access to the intelligence. Got it. You know, it should be a huge win for the customer. Our expectation is that, you know, upon renewal, you know, the vast majority of customers will move over, and that's how we've modeled it, assuming that they've all kind of moved over to Mandiant Advantage. There may be one or two, you know, government customers that for whatever reason, you know, cannot. Yeah. you know, have a ongoing access to real-time intel. But the vast majority and from a modeling perspective, you know, I think we feel very comfortable that, you know, the headwind won't be more than the $30 million that we have projected. Yeah. Okay. That's helpful. Then I guess with regard to the support costs for the product side of the business, I guess, you know, we'll skip that. With regard to the relaunch costs, how persistent are they? You know, at what point might we kind of hit a regular stride where we'll have a very, I guess, predictable migration with better scale of the platform where we can envision a pathway to better profitability? Yeah, it's really in 2023, and that's why we felt very confident saying that we're gonna be operating margin positive from a non-GAAP perspective in 2023. Mm-hmm. Because, you know, there is significant Mandiant relaunch costs that happen in Q4 and carry through 2023. Mm-hmm. We also have, you know, a lot of the TSA operations that we have to keep up and running for a period of time as well, including, you know, running our old ERP and new ERP system. We also do have stranded costs for some facilities that we're exiting as well. You know, there's a little bit more noise in 2022, but 2023, we feel very good that you'll start seeing pretty significant re-leverage each and every quarter going forward. Got it. That's helpful. I have more, but I'll step back in the queue. Thanks, Brian. Our next question comes from Jonathan Ho of William Blair. Jonathan, your line is now open. Please go ahead. Hi, good afternoon, and congratulations, Frank, on the retirement. We'll definitely miss working with you. I just wanted to maybe start out with, you know, a little bit more color on, you know, what's giving you the confidence that we can see this acceleration back to 30% by the end of 2022? You know, can you just maybe help us, you know, kind of bridge the gap. Sure. between the beginning and end of the year? Well, you know, Frank and I just alternate questions, so I'll take this one, Frank. Couple things. One, tremendous advantage having a sales team going from selling nine things down to really one, the Mandiant Advantage platform. With that focus, we'll automatically come better efficiency with the sales force. Less to train them on, and way more alignment as to how to deliver the message and get that done. Second thing you're gonna get is we are building towards technology-enabled services as well, where you get more leverage from the consultants. What that means is as our consultants use the platform more and more to deliver things like ransomware assessments or as we learn to scale Managed Defense with other products through our own platform, you get to see the margins increase, gross margin will get better. At the same timeframe, you know, you just see more leverage there and more scalability. We can deliver things quicker and faster, which leads to growth. That's why I talked about 5 go-to-market changes, Jonathan, during the earnings call. We were known as FireEye. We were, you know, we were email security, network security. We had a SIEM. We had an endpoint. We had services, managed services, intel. We were in every single business. It made it very hard to have frictionless partners. We have a very aligned strategic operations group to get leverage from partnerships that historically we haven't had any. That's a big advantage for Mandiant when it's vendor-agnostic. I can't emphasize how important Mandiant being vendor-agnostic is. It literally allows us. We are getting inbound calls to partner for the first time since about 2015. Now we've got leverage from partners, that's possible. We get leverage from technology-enabled services, which is possible, and we are only talking about going from 26% to 30%. Our whole go-to-market was aligned about appliances three months ago, six months ago. I'm very confident in that top line. Fantastic. Just to build on your point around the partnerships, you know, now that you are vendor-agnostic, when can we expect to maybe see some of these new partnerships or opportunities emerge? Yeah. You know, how much can it sort of accelerate? Yep. Great question. We had Microsoft kind of was our first supported endpoint in Managed Defense. We added a Splunk partnership in Q3, but I expect you'll see one or more virtually every quarter that we announce. You're gonna see them and go, "Hey, that makes total sense." You know? The timeframe for all this to contribute will be multiple quarters out, but we are laying the foundations now to get the upside later. Realize we could not do this 90 days ago, so this is pretty exciting. You're gonna see most of the uplift in leverage beginning. You know, we're already getting deals with the Microsoft endpoint partnership. The Splunk, you know, partnership that we just announced in Q3, we'll see how that pans out. without a doubt, by the second half of 2022, we're gonna start seeing the contribution to the things that we're announcing. We've got a couple strategic partnerships in line right now, that you'll see announced between now and the end of the year that I'm confident are gonna move the leverage for us. Thank you. Thanks, Jonathan. Thank you. Our next question comes from Hamza Fodawala of Morgan Stanley. Hamza, your line is now open. Please go ahead. Hey, guys. Good evening. Thank you for taking my question, and congrats, Frank, on the retirement. Thank you, Hamza. I had a question about the Salesforce sort of execution and the hiring trend. Obviously, you've you know been Mandiant now for 90 days. Yeah. Can you talk about some of the improvements you've seen in the go-to-market front, now that you don't have your salespeople distracted by selling many multiple products? I understand some of them likely went to- Yeah. what's now the FireEye product business. Yep. Just curious if there's been any sort of efficiency improvements there? Yeah. Couple thoughts. First and foremost, efficiency of sales starts with maniacal focus, and that's what we have now. For the first time ever, instead of going to a sales force with, "Here's the 9 products you got, and here's..." By the way, selling endpoint versus selling network, it's pretty darn different. In fact, you're talking to a different buyer. You're talking to network ops on one side or the desktop folks on the other or maybe the security professionals. There's something that'll take a couple quarters to see the efficiencies grow. I'm starting with looking at our PMs, looking at our training, looking at our enablement, and recognizing the company is 100% aligned. This is what we're building. This is who we are. This is how we're resourced. For the first time in our history, we can actually invest in everything we're doing. Because when we had nine products, we were funding three at the expense of the other six sometimes in trade-offs with resourcing. It's too soon to tell and measure the efficiency. Again, until the end of the year, the sales folks that went with FireEye products are still incented to sell Mandiant, and vice versa. Mandiant sales folks are still incented, and we're holding the comp plan together till the end of the year. That will also skew a little bit of the performance. We have an aggressive plan for our January kickoff, sales kickoff with training, and we'll measure that efficiency, and it can't go backwards when you're this focused, period. You'll now have a dedicated sales force with one message, one platform. That is absolutely advantageous and better than nine. Got it. Maybe just a quick follow-up for Frank. Can you tell us how much of the bookings were influenced by incident response services this quarter? It's been pretty consistent this year on the services of the pure services revenue. It's been in that 35%-40% range for the last, really for the last three quarters. All right. Thank you. Thank you. As a reminder, if you would like to ask a question, please press star followed by one now. We have a follow-up question from Brian Essex of Goldman Sachs. Brian, your line is now open. Please go ahead. All right. Great. Yeah, thanks for circling back. Frank, I had a question because I had a number of questions on this over the past couple of quarters. I guess now that the products business is spun, do you have a good sense of what the total dilution could be if you were profitable, given that you probably had some options paid out, some transferred, employees went to go to the products company. Just trying to get a sense for what, you know, what might that, you know, end case dilution rate might be, within the share count. Yeah. Well, I guess it's always point in time and, depending obviously on stock price for, you know, for the treasury method. Right. I mean, we could go through a bunch of different sensitivity analysis that we can walk through, but we can probably take that offline, and I can kind of walk you through a couple different scenarios and different dilutions. Okay. You know, it's probably easier. Yeah, maybe when we catch up later, we can walk through that then. Okay. Thank you. I appreciate it. Thank you. There are no fur- The new update. Until then, thank you very much.