Hello, my name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Rapid7 Q3 2022 earnings conference call. 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 would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, press star one again. We ask that you limit your questions to one. I would now like to turn the call over to Mr. Sunil Shah, Vice President, Investor Relations. Please go ahead. Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Rapid7's Q3 2022 financial and operating results in addition to our financial outlook for the Q4 and full fiscal year 2022. With me on the call today are Corey Thomas, our CEO, and Tim Adams, our CFO. We have distributed our earnings press release over the wire and is now posted on our website at investors.rapid7.com, along with the updated company presentation and financial metrics file. This call is being broadcast live via webcast, and following the call an audio replay will be available at investors.rapid7.com. During this call, we may make statements related to our business that are considered forward-looking under federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include statements related to the company's positioning, strategy, business plans, and financial guidance for the Q4 and full year 2022, and the assumptions underlying such goals and guidance. These forward-looking statements are based on the current expectations and beliefs and on information currently available to us. Actual outcomes and results may differ materially from the future results expressed or implied in these statements due to a number of risks and uncertainties, including those contained in our most recent quarterly report on Form 10-Q filed on August 4, 2022, and in the subsequent reports we file with the SEC. The information provided on this conference call should be considered in light of such risks. Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance. Rapid7 does not assume any obligation to update the information presented on this conference call, except to the extent required by applicable law. Our commentary today will primarily be non-GAAP terms and reconciliations between our historical GAAP and non-GAAP results and guidance can be found in today's earnings press release and on our website at investors dot Rapid7 dot com. At times, in our prepared remarks and response to your questions, we may offer incremental metrics to provide greater insight into the dynamics of our business or our quarterly results. Please be advised that this additional detail may be one time in nature, and we may or may not provide an update in the future on these metrics. With that, I'd like to turn the call over to our CEO, Corey Thomas. Corey? Thank you, Sunil, and hello to everyone on the call today. Thank you for joining us on our Q3 2022 earnings call. Rapid7 ended the Q3 with $684 million in ARR, representing 24% year-over-year growth. While revenue was within our guided range and operating income exceeded our expectations, our ARR results came in below our expectations for the quarter. Growth was moderated by two key dynamics. First, the impact of ongoing global macroeconomic uncertainty on customers' budgets, and secondly, slower than anticipated sales productivity ramp as we evolve our model towards a consolidated platform sales approach. I will speak to this in detail on today's call, but first, let's discuss the environment. We spoke on our last earnings call about how the macroeconomic environment is affecting the pace of demand, driving higher levels of deal inspection as customers and prospects manage record inflation and increased economic uncertainty. These persistent trends continue to affect us broadly, with the dominant pressure coming from our international regions. Customers continue to scrutinize budgets and timing of new projects, and in some cases are taking a more measured approach to scaling their security investments. While we have limited visibility into the macroeconomic trajectory, we continue to factor in this headwind as we look ahead to the Q4 and next year. Now let me turn to the internal dynamics affecting our performance. As we successfully expanded from selling a single product to a best-in-class SaaS platform a number of years ago, you may recall that we relied on product-specific sales teams to scale the business. During the back half of last year, we began to mature our sales motion towards a generalist sales force, enabling all of our salespeople to sell the full suite of our Insight products. This was a key step in the evolution of our sales force towards a platform-selling motion. While we expected ramp times for multiple products to take slightly longer as we scaled our teams this year, we did anticipate an increase in sales productivity during the second half of this year as they gained mastery of our full product suite. Exiting the Q3, it became clear that our sales force is taking longer than we expected to effectively sell a wider set of solutions on our Insight platform. Let me highlight two predominant reasons for this. First, our audience is changing. Given the breadth of our platform, our sellers are increasingly engaging in C-suite level discussions. This requires more robust seller enablement, especially for our newer reps, to shift from selling point products and features to selling platform solutions and outcomes. Second, this platform selling motion requires more focused packaging models compared to the land anywhere approach, particularly in an environment where customers have budgetary pressures. As you might expect, Rapid7's sales engine across multiple products while entering a recessionary spending environment further exacerbated these challenges during the quarter. In hindsight, our measured transition from a VM-centric sales force to a security transformation-centric sales force has moved slower than expected as we underestimated the ramp time, enablement support, and focus necessary for our teams to drive efficient platform adoption. We have responded quickly to address this situation, and here's what we're doing today that gives us confidence in our path forward to improve execution. We maintain strong confidence in our mid to long-term thesis to become the platform of choice for consolidated SecOps management to resource-constrained organizations. Amidst a complex and highly fragmented security tool ecosystem, security teams of all sizes are struggling more than ever to deliver the right level of security efficacy for their spend. The bar is higher today as these teams are under increased budgetary pressure. In a recent survey of CISOs, part of it highlighted that 75% of organizations they surveyed are looking to consolidate security vendors, up from just 29% of organizations only a few years ago. We believe the platform investments we've made in recent years position us exceedingly well to help customers achieve more consolidated risk and direct visibility, response, and automation across their expanding digital footprint and growing cloud environments. A great example of how we're delivering on this consolidation value proposition at scale is a seven-figure ARR deal signed in the Q3 with an enterprise healthcare provider. This customer was struggling to effectively and efficiently manage their expansive security environment with a leading SIEM offering managed by a large global consulting firm, creating pain points at many levels throughout the organization. Rapid7's detection response solution with embedded automation stood out among the competition for its rich detection capabilities. However, a huge differentiator for this customer was our ability to consolidate their SecOps stack on a single platform. By leveraging our MDR Threat Complete package, this customer was able to solve their most urgent threat response challenge while also displacing their existing VM provider, all at a better overall economic value. This ability to consolidate parts of their security ecosystem on our Insight Platform not only solidified Rapid7 as their SecOps platform of choice, it expanded the value of the relationship for Rapid7. In an increasingly talent-constrained security landscape, our offerings continue to resonate with customers of all sizes, including our growing enterprise customer base. Customers are turning to Rapid7's detection and response offering in this dynamic threat landscape for its expert-driven intelligence and extensive detection library that delivers market-leading price to value. Rapid7's risk visibility platform is resonating for customers expanding rapidly into the cloud as we deliver more consolidated risk visibility across cloud and on-prem environments. This underpins the sustained growth we've seen in our security transformation solutions, where we saw another quarter of 40% year-over-year ARR growth. Let me share how we're optimizing our go-forward sales approach by operationalizing our strength around these two specific customer opportunities. As we look to the Q4 in early 2023, we're activating more focused customer-centric sales motions that are organized around customer needs. This will simplify and consolidate the selling motions that our teams leverage to land customers. We began this effort in Q3 as we started to attach VM alongside security transformation projects. However, we're accelerating this path in the Q4 as we plan to increasingly anchor our customer engagement around their most critical needs tied to detection response and cloud risk visibility. This is an obvious next step for two distinct reasons. One, as we engage with customers today, we continue to see the strongest and most urgent customer challenges centered around detection response and cloud security. As customers prioritize enterprise risk visibility in the cloud, we see on-prem VM as a critical component of that visibility. Number two, this step directly aligns with the natural progression we have seen in our business, as security transformation has scaled to represent over 70% of our year-to-date land motion, with over 50% of our land ARR coming from detection and response specifically. Given this momentum, we expect to focus sales efforts around two core platform packages that are optimized to address customers' most pressing security needs on our platform. D&R Threat Complete enables customers to consolidate our best-in-class, expert-driven threat detection response offering, along with unlimited coverage of our market-leading VM on a single platform. Cloud Risk Complete is our cloud-centered risk visibility offering, which consolidates unlimited visibility across customers' on-prem, cloud, and external environments at all stages of transition to the cloud. It enables the use of cloud and application security with unlimited VM coverage together in one platform subscription. For more complete coverage of their cloud and traditional infrastructure environments. In addition to the simplified pricing and packaging, over the next quarter, we intend to sharpen our enablement and drive a focused marketing effort around Threat Complete value proposition as we lean into our opportunity to help customers manage and respond to threats in their modern and cloud environments. We expect these actions to gain traction over the next few quarters, with improvements in growth starting in the second half of 2023. We'll be paying close attention to sales productivity as the success of our packaging efforts with both new and existing customers. Over the past few years, we've assembled investment class suite of products across our platform. We firmly believe that the fundamentals of our business are healthy, and our opportunity for growth remains strong. Honing and operationalizing our pricing, packaging, and overall go-to-market strategy will drive the next leg of our growth. We've had success with thoughtful and deliberate changes to our sales force in the past, and this gives us confidence in our forward trajectory towards a more effective and efficient platform-centric sales motion. While these changes are moderately disruptive in the short term, we believe they will set us up better for growth in the back half of 2023 and beyond. Rapid7 continues to benefit from strong secular tailwinds and underlying drivers of digital transformation and prioritization of security spending are very much intact. Our plans to improve sales execution while navigating macroeconomic uncertainty are aligned with our overall strategy to provide a strong value proposition for customers. As we work to enable organizations to close the gaps in their security environments, we remain hyper-focused on solving critical customer challenges. Looking forward, our updated outlook assumes near-term macro and productivity-related headwinds, the latter of which we expect to begin to normalize over the next few quarters as we see gradual benefits from the changes that we are putting in place. This should translate to a modest sales execution tailwind in the later part of 2023 and into 2024. In early 2021, we shared our expectations to become a rule of forty company with over $1 billion in ARR by 2025. We remain confident in reaching those targets. However, our expected path to get there has shifted. Let me share some brief context on how we think about that today. First, despite Q3 execution challenges, which we're actively addressing, we continue to see a durable multi-year path for a 20% ARR growth CAGR in our business through 2025. Though we expect that 2023 may be up modestly below 20% as we navigate short-term impact tied to our sales optimization efforts. Ultimately, this means we now expect the relative mix of growth and profitability to achieve our rule of forty status will be more balanced towards profitability than we had previously anticipated. Our strong Q3 profitability ramp and raise to full-year non-GAAP operating income demonstrates our deliberate focus on margin expansion and underpins our confidence in delivering our midterm targets, which Tim will provide more color on. We remain committed to our long-term strategic goals, to enable customers to securely transition to the cloud, to expand the capabilities and value proposition of our best-in-class Insight Platform, and to balance our dual mandate of scaling profitably while strategically investing to drive durable growth. With that, thank you again for joining us on the call today. I will now turn the call over to our CFO, Tim Adams, to share additional detail on our financial results and outlook. Tim? Thank you, Corey. Good afternoon, everyone, and thank you for joining us on the call today. Before I turn to the results, a quick reminder that except for revenue, all financial results we will discuss today are non-GAAP financial measures, unless otherwise stated. Additionally, reconciliations between our GAAP and non-GAAP results can be found in our earnings press release. Rapid7 ended Q3 with ARR of $684 million, growing 24% year-over-year. ARR growth continues to be led by security transformation solutions, which sustained 40% ARR growth during the Q3, even as we lapped last year's threat intelligence acquisition. Despite the macroeconomic and sales productivity challenges Corey highlighted earlier. New ARR was driven by our detection and response, cloud security, and threat intelligence solutions as customers continue to prioritize around these critical categories. The value proposition of our platform is resonating with security teams looking to consolidate their spending, as larger new customer deals and expansion with existing customers drove ARR per customer to $63,000, growth of 14% year-over-year. Total customer count benefited from healthy growth in platform customers. However, we did see a modest impact from the macroeconomic and sales productivity dynamics that Corey spoke about earlier. We ended the quarter with approximately 10,800 global customers, growth of 9% over the prior year as we lapped the IntSights acquisition, and at the upper end of our previously stated long-term range of 5%-10% growth. Q3 revenue of $176 million grew 26% over the prior year and was at the midpoint of our guidance range. Product revenue grew 27% to $166 million on momentum in our security transformation offerings. International revenue grew 36% year-over-year, representing 21% of total revenue, while North American revenue grew 23% over the prior year. Moving to operating and profitability measures. For the Q3, our product gross margin of 76% and total gross margin of 73% were each within our expected ranges and improved modestly from last quarter. Sales and marketing expenses represented 38% of revenue compared to 40% in the prior year period, while R&D and G&A expenses were 20% and 8% of revenue respectively, compared to 21% and 8% in the Q3 of last year. Broad-based and disciplined expense management drove operating income of $13 million in the Q3, representing over 7% operating margin as we proactively focus on achieving our profitability targets in an uncertain macroeconomic environment. Our Q3 adjusted EBITDA was $18 million and non-GAAP earnings per share were $0.14. Turning to the balance sheet and cash flow statement. We ended Q3 with cash equivalents, and investments of $268 million. Our strong operating income and working capital management drove Q3 operating cash flow of $20 million and free cash flow of $10 million. This brings us to our guidance for the remainder of the year. As Corey said, we expect the optimizations we are making to our platform go-to-market strategy will gain traction over the next few quarters, and we expect them to provide meaningful support to growth starting in the second half of 2023. With that said, we believe it is prudent to account for a moderate level of near-term performance disruption exacerbated by ongoing macroeconomic pressures. Given these dynamics, we now expect full-year 2022 ARR to be in the range of $711 to 717 million, growth of 19% to 20% over the prior year. For revenue, we are narrowing and lowering our full-year 2022 outlook to $680 to 682 million, or 27% year-over-year growth, driven by our lowered ARR expectations for the year. We remain committed to scaling profitability in our business as we look ahead and have multiple levers to achieve that. As a result, we are raising our full-year operating income outlook to $25 to 27 million, reflecting the strength in our Q3 profitability that we expect to continue. non-GAAP earnings per share is expected to be $0.17 to 0.20 for the year based on an anticipated 59.9 million diluted weighted average shares outstanding. Turning to free cash flow. We are adjusting our full-year outlook modestly lower to a range of $36 to 40 million, just below the low end of our prior range. The new range reflects our continued strong focus on cash generation and profit expansion, offset by lower billing expectations associated with our reduced ARR estimates for the full year. As implied by our full year guidance for the Q4 of 2022, we expect revenue in the range of $179 to 181 million and operating income between $14 to 16 million. Non-GAAP earnings per share is expected to be $0.17 to 0.20 based on an anticipated 66 million diluted weighted average shares outstanding. We are confident in our ability to navigate through the macroeconomic backdrop and to successfully transition our sales force to a more focused and streamlined platform selling motion. As Corey mentioned, we continue to see a path for 20% ARR growth CAGR as we march towards our target of being a rule of forty company by 2025. As we focus on scaling our profitability to achieve the rule of 40, we expect a steady improvement in free cash flow margins, which we anticipate should ramp by at least 400 basis points per year over the next few years. This is aligned with the vision from our previous Investor Day, and we have the right strategy in place today to meet these targets. Thank you for joining us on the call today, and we will open the line for questions. Operator? At this time, I would like to remind everyone, if you would like to ask a question, please press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Matt Hedberg with RBC Capital Markets. Great. Thanks for taking my question, guys. Corey, for you, I guess on the sales execution or the sales productivity, it sounds like you guys are looking at a variety of ways to improve that. It obviously makes sense longer term as a platform sale. I'm curious, as you look at the composition of the sales force today, is it the right people in place, or is it more of a process improvement that needs to happen? Thanks, Matt. It's a good question. We think we have the right people. I think there's really two core things that we're actually focused on. One, we actually have to make it more direct and easier for people to sell the platform itself. If you look at what we've been doing is we had a platform that our sales team was enabled and selling packages that involve individual products instead of platform packages and products. So that's the first thing that we are correcting and adjusting, and that's already on the way, and that has good momentum behind it. The second thing is actually more of a process, and I would say training and enablement thing. Nicely, we've actually seen more momentum actually selling higher in organizations, which is not something Rapid7 has traditionally done. We're trained at enabling our sales team to really be able to sell at the CIO and COO direct level, which is a core benefit, and be able to sell platform capabilities at that level across the organization. Those are our two main focus areas when we think about sales force enablement. Both of those things we anticipate actually occurring over the course of the end of this year and the first part of next year. We think that will normalize. Thanks a lot, Corey. Thank you, Matt. Once again, if you would like to ask a question, please press star then the number one on your telephone keypad. We ask that you please limit your questions to one. Your next question comes from the line of Jonathan Ho with William Blair. Hi, good afternoon. I wanted to maybe understand a little bit better in terms of, number one, the guidance can you talk a little bit about the additional conservatism that you baked in if there is any, and how we should sort of think about that as we contemplate 2023 how much I guess, what are your assumptions around the macro? What are your assumptions around sort of, your ability to improve that sales productivity that are sort of embedded in the guidance? Thank you. Yeah, John. There's two factors to consider. The first is that our changes are really based on customer demand, and we think this is the best time ever to actually do consolidation. With customers having constrained budget environments and us having the platform capability, we're accelerating our entire effort to make sure that we're well positioned to respond to where customers currently are. That's the first thing, we are seeing customer demand around this area, but we realized that we were not fully optimized around it. Now, because of that, there's two factors that we actually have in mind. One, it was time to accelerate the optimization around the consolidation sales cycle on our platform. The second is that we really wanted to de-risk the macro in this environment. Part of the way you think about sort of like those two and how they intersect together is that we have, in my view, de-risked sort of like the Q4, specifically as it relates to the mid-market. 'Cause we do think there's going to be more pressure in the mid-market as you actually enter a potentially recessionary environment and also international. Those are the two areas that we wanted to make sure we actually just de-risk from a forward guidance perspective. I would say our macro assumptions going into next year is that there is some likelihood that we'll see ourselves in a recessionary environment. We would expect the overall, macro to actually have a potential headwind going into next year, and that's in our baseline planning and assumptions. Now, the second thing that we actually are really focused on is accelerating what I talked about earlier, is our optimization around the platform selling motion. That's something that we're really looking at this quarter and the first half of next year. We expect to come out of that very specific delta optimization and go-to-market optimization effort in the second half of next year. Hey, Jonathan, it's Tim. I would just add to Corey's comments, and you were talking maybe a little bit longer term as well. Corey and I both reiterated in the prepared comments our commitment to being a Rule of 40 company by the year 2025, and we still feel confident in a 20% growth CAGR for ARR over that time period. I believe Corey did mention that it may dip moderately below 20% next year. I would say call that a point or so, and we see it recovering in the second half of next year based on all the improvements Corey's talked about. Got it. Thank you. I'll hop back in queue. Thanks, John. Next question comes from the line of Rob Owens with Piper Sandler. Hey, guys. This is Justin Roach on for Rob. I just wanted to ask on the cloud security side, just given this is a pretty big priority for you guys moving forward, would you guys characterize this as primarily a greenfield opportunity where you guys are seeing success, or are you guys displacing other platform or point vendors at this point? And what are the primary differentiators between your platform and, say, your largest competitors? Yeah. We see this as mostly greenfield because cloud, while it's an increasingly urgent priority, is that there's a lot of opportunity untapped and the opportunity is growing every day, and it'll accelerate over the last couple of years. If you just zoom out we've always been a visibility and risk analytics platform and focus company. In the on-prem world, that was vulnerability management. The platform that we've been building and our approach has been to make sure that we're actually building the platform for where customers are deploying and managing their technology. If you look at what's happened, there's been a critical shift from on-prem being the primary driver of where people have their critical assets to increasingly that's more and more in the cloud. Our sense as the year progressed and over the last two years, we've had higher urgency because you're now seeing the most critical assets in any enterprise now being centered more on the cloud. Our view and our goal is to be the default and the leading platform for visibility and risk analytics. That means you have to be able to do it on-prem, in the cloud, and across external attack surface. Now, the thing that we're really focused around and optimizing is that right now, and leading up to this point, we've had a relatively fragmented sales motion where we actually sold those separately. As we introduced Cloud Risk Complete this quarter, one of the value propositions that we actually saw resonating quite strongly is that many customers are not static. They're actually migrating their sort of like infrastructure from on-prem to the cloud. The ability to have unconstrained and unlimited visibility across on-prem and the cloud is more valuable than ever. Our core value proposition is that we'll give you your visibility and your risk analytics no matter where it sits, and you can actually move that around without having to be constrained about these dollars are locked up in the VM on-prem world, or these dollars are locked up in the cloud world. Now, to get to the other part of your question around competition, that does put us in new competition, but other than folks like Palo Alto, it's mostly point competition, and it's mostly greenfield. What I would say is that in this environment, more than ever, customers are looking at how do they solve their problems at the best economic value and leverage. Our Cloud Risk Complete platform and a cloud-first, unlimited visibility platform is one that we're already seeing evidence is resonating well with customers, and we just have to operationalize both our packaging and our sales enablement around that strategy. Got it. Thanks, Corey. Thank you very much. Question comes from the line of Mark Cash with Raymond James. Yes, thanks for the question. One for Tim Adams, right. I was wondering if you could talk about for the ARR outlook that was lowered by about $31 million. It kind of bucketed that and think about it like how much is that productivity versus customer maybe requiring extra signature versus FX headwinds. Yeah, I mean, Tim and I will tag team it. This is an estimate because there's a number of moving parts. I would say it's roughly half and half. Look, we think that half of our half of the gains that we can actually make in productivity is just ensuring that our sales force has a simpler, more efficient selling motion. Now, one of the things we see is that we're actually doing a very good job of generating demand from the traditional VM sales force in the new security transformation areas, but they're not as efficient at selling that as they were VM. That was intentional. It's taking a little while longer, but we can improve that, and we can actually simplify that, and we can make that better. Now, what I would also say is that when you look at the macro, which would be the other half of this story, is that if you look up to this point in the year, you saw a little bit of pressure. We are assuming right now that we are seeing more likelihood that it was a recessionary environment. We thought it was prudent right now to actually derisk, especially mid-market going forward and especially Europe going forward. I would estimate roughly half and half in my mind, but Tim can talk about it more. Yeah. No, Corey, I agree. I think it is roughly 50/50. We've acknowledged, hey, we can perform better, and we're very focused on that. There are things outside of our control with macroeconomic, and we're seeing that certainly in EMEA. We're seeing it in the mid-market segment. Included in that macroeconomic, we do have FX, and it's approximately $7 million for the year as a whole that's putting a headwind pressure against ARR for this year. Thanks for the question. Yeah, thank you. Your next question comes from the line of Michael Turits with KeyBanc Capital Markets. Hi, this is Ashley Owens on for Michael. Just a quick one for me. Last quarter, you guys mentioned VM ARR slowing to the mid-teens. Just curious if you saw it hold steady there or if there was any further slowing this quarter. Thanks. It's a good question. Look, clearly we missed our expectations, so there was some pressure on VM. I would say that as we look at our outlook going forward, we think about VM as being a key feature of our broader visibility and risk enablement platform. It gets harder and harder to break out because we are selling it as part of our platform packages and sales. We think it's critical. Like, listen, customers will have on-prem for a long time, and customers will be transitioning for a long time. One of our differentiators is the fact that we can allow customers to actually transition without locking up their spend in either bucket. In the past, I would say that yes, we were a little bit. It was less than we expected. On the go forward our belief is we're going to be gaining unit share in the vulnerability management market, because we're delivering a more complete solution that customers are looking for. Great. Thanks. Thanks for the question. Your next question comes from the line of Hamza Fodderwala with Morgan Stanley. Hey, guys. It's Matt Saltzman on for Hamza tonight. Thanks for taking the question. Just wanted to get a clarification on guidance. It looked like a nice beat on Q3 operating income. You guys raised the full year operating income guide, but it looks like it's slightly less than the Q3 beat. I'm just wondering, is that related to more fixed costs hitting in the Q4? Is that directly related to some of the investments you're making in sales force productivity? Just trying to understand the juxtaposition between that and kind of the growth versus profitability outlook. Yeah. Matt, hey, it's Tim. It's a good question. Look, we remain very focused on how we find leverage in the business and investing appropriately across the business. We're certainly willing to rebalance investments from one area to another as we see fit. We stay committed to the growth and profitability framework, and the guide overall falls within that. We did bring down the full year revenue guide, and that does put a little bit of pressure on the operating income. I'm sure you're you're thinking the full $6 million should roll through. We rolled most of it through on operating income, but there is a headwind from revenue coming down a little bit as well. Thanks for the question. Got it. That makes sense. Thank you. Your next question comes from the line of Fatima Boolani. Hi, this is Joel on for Fatima this evening. Just a quick one on the discounting levels. Could you speak to anything you've seen on discounting and customer pushback from last quarter, especially on the core VM side? Then maybe going forward and looking at the macro, just your propensity for concessions and how much flexibility you're looking at having on the pricing side. Thank you. Yeah. It's a good question. Look, customers' budgets are clearly constrained at some level. We see lots of customers that are just doing recessionary planning. Like, they're just trying to figure out. There are deals that were actually moving last quarter. They slowed down a bit. They closed at the start of this one. We expect more than that. I would say this in two things, fundamentally approaches to it. one when we think about our outlook and our guide and other things, we actually did increase our coverage ratios and our expectation of how much coverage you actually need to close. That's relatively straightforward. The second part of that, instead of actually tackling that one-off, what we really focused on is how do we actually address customers' underlying need to make sure they have a well-managed security operations environment, without actually just having to resort to discounting. For us, the core of that is our Threat Complete practice, which is sort of like how do you actually get the most efficacy from your solution. If you think about what we're talking about with the Cloud Risk Complete, Cloud Risk Complete offering, that is really one that actually says, "Listen, instead of actually bifurcating and locking up your spend across two or three areas, across threat intelligence for the external attack surface, the on-prem world and the cloud world, we will actually give you world-class capabilities at the best possible economics." We're just building that in. That does, let me just be clear, that does treat things that were standalone as components and features of an underlying platform. What we expect that to do is raise our ASP and ARR per customer overall, but that does actually not treat things as standalone markets. We are targeting how do you deliver the most value to customers, which means that we're not optimized on how do you actually maximize value in vulnerability management or in external attack surface or in the cloud. We're looking at how do you actually maximize value to customers while you're raising our customer economics and ARR per customer. That will put true pressure on the traditional, I would say, isolated and fragmented approaches to doing security operations and visibility. Okay, thank you. Thank you. The next question comes from the line of Robert Galvin with Stifel. Hi, this is Robert Galvin on for Brad Reback. Thanks for taking the question. I was wondering if you could review how VM would be priced in these new package bundles. I thought I heard comments here during the prepared remarks that would be unlimited VM, but I'm not sure if that was a correct understanding on my part. Thank you. There's two. I'll just talk about the customer dynamic, because that's the most important. One, customers are actively moving their environments around in their environment. One is that there's low appetite for locking up dollars in one environment versus another. The second one is customers don't want to be nickeled and dimed. We've seen this in other areas where we've actually done this with our detection and response and our Threat Complete scenario with unlimited. It's actually what that's really about is that having a model where customers don't have to be nickeled and dimed along the way. Customers need visibility into their complete environment. Our packaging and price setting approach with our Cloud Risk Complete allows customers to actually have unlimited visibility and then true up as they actually hit certain milestones, in terms of their company size, or gross usage. It's not sort of like being nickeled and dimed along the way, which has frustrated lots of customers, and they've given the feedback that it locks up their budget. That's the approach that we're actually taking, is how do you actually make it simpler? By the way, that buying proposition is simpler to sell for our sales team, but it also makes it much easier for customers to actually plan out their expenses over time. Thanks for the question. The next question comes from the line of T. Michael Walkley with Canaccord Genuity. Hey, guys. Good afternoon. This is Daniel on for Mike Walkley. Thanks for taking my question. Just quickly double-clicking on the sales execution challenge, was this pretty broad-based across your business, or was it more pronounced internationally? Well, I think we commented before that there is a more. Historically, it's been more pronounced internationally this year, especially in Europe. I would say that there is a focus there. Then prescriptively in the guide, we are actually expecting the mid-market to see more pressure. We just thought it was prudent to actually de-risk that, as we're seeing more customers doing recessionary planning. I would say so mid-market is probably more broader base. That said, that's not what we've seen over the first half of the year. It's just something that we saw tea leaves of that we're actually planning for and we're de-risking for in the back half of the year. Thank you for the question. At this time, there are no further questions. This concludes today's conference. You may now disconnect.