Good early morning. Thanks for showing up at such an early time of the day on the second day of our conference. As you may have heard by now, the conference is off to a great start. We are off to record registrations. This is officially the largest Goldman Sachs investor conference that we've hosted in quite a while. It's a real delight to host Gary Steele, CEO of Splunk. A story that many investors are really familiar with. Gary, you took over Splunk not too long ago, a couple 1/4s back or so. I've had one full 1/4. One full 1/4. One full 1/4. Oh my God. Yeah. That's not fair. I mean, you got in, the macro started to turn, rates, inflation, et cetera. It's all good. Maybe you could start off with, I'm not gonna ask you what attracted you to Splunk. That's an old question. That's an old question, yeah. That's a very old question. Yeah. What is your current assessment of Splunk as you speak with customers? I think you said- Yeah. You met with 100 customers. We did. At your annual user conference. Yeah. I heard it was, I was there. Yeah. It was a love fest. I mean, people just love your product. Right. Despite all of what's perceived. There may be some truth to some of the perceptions, but, what is your overall assessment after talking to customers, getting the pulse of your users at the user conference? What's your overall assessment? Yeah, it's sort of interesting. When I joined, I committed to doing 100 customer meetings in my first 100 days. I'm not sure I would do that again, honestly. It was a great experience, frankly, because I saw a number of critical things. I think one was there's just incredible passion and commitment for Splunk. Meaning within large organizations, we literally have hundreds of people that know how to use Splunk and to derive great business value from the data being delivered through Splunk. That was one. Two, associated with that and closely correlated is we're absolutely Mission-Critical to the largest organizations in the world, and the footprint within those organizations continues to grow. I think 3 for me is we have tremendous opportunity to get closer to our buyers. For myself, coming from a cybersecurity background, one of the things that became very apparent very early is the value that we were delivering to security teams around the globe was incredibly important because security has rapidly become a data problem. There's nothing more important than Splunk to leverage that, to be able to determine if you've had an issue and then 2, how do you quickly remediate it. Through that, I realized that we could be closer to those buyers, and we could be more aligned to the security teams, and ultimately, I think, continue to deliver great value to them, enhance the value and deliver more value to them. I feel like, based on all those 100 customer experiences, we play such a critical role, and we can continue to do a lot more. It's really reflected in our numbers. Our Dollar-Based net retention numbers are really good at 129%. Those numbers just reflect the value that we're delivering and the commitment the customers have for Splunk. That's at a large scale. That's at a large scale. That's at a large scale. That's right. It's not like a billion-dollar business that's at 121% net retention rate. Yeah. It's 1:29 in your case. Gary, you're really well regarded. You have an immense track record in the security industry. When you look at Splunk, where would you like the company to be, let's say we hope that you come back to the Goldman Sachs 2027 conference. What's your best estimation of what Splunk looks like 5 years from now, and what's your action plan to achieve the goals, the audacious goals you might have for Splunk? Yeah, I think. I'm assuming that you do. I hope you do. Yeah, absolutely. So a couple things. I think one observation coming in, and I think it's reflective also of the economic time. I'm a very big proponent and fan, and always have been for people that have known me, in this balanced approach, balancing growth and cash flow. I think Splunk has the power to be a Long-Term durable grower, as well as a company that delivers great cash flow. Even right out of the gate, in my less than first 90 days, you know, we, you know, we showed that we could create leverage, deliver cash flow, and we're on this more balanced path now. It's not a negative about prior management, it's just my point of view in the world. I think over that long haul, you know, can Splunk be a Long-Term durable grower that shows at scale that we can sustain large growth rates? Yeah. Continue to improve cash flow and operating margins. The company has that power. Frankly, it was one of the reasons that I was super compelled to be at Splunk because it has the ingredients necessary to be one of those, and there aren't very many of those on the planet today. Got it. Yeah. We'll talk a little bit later about. Okay. How you plan to convert that growth at scale into cash flows as well? Yeah. 'Cause that's been the one thing that has been missing through the cloud transition. I do want to pick your brain on the cloud transition, et cetera. As you look at Splunk, what other core strengths of the company do you think are being under-leveraged? Well, I think there's a number of things. When you look at the way customers deploy us today, you know, when I joined, everybody was like, "Oh my God, you have so much competition." I went and talked to these customers, and the reality is there's really nobody on the planet that can do what we do for our customers today. Why is that? It's because the scale at which we operate, and that scale is incredibly complicated, but it is a requirement for these large organizations. What does scale mean in this context? I was on the phone with a customer yesterday. They wanna ingest a petabyte and a 1/2 a day. Mm-hmm. Today. I mean, it's insane volumes, and no one can meet those requirements. Why do they want to do that? Well, it's because of their application environment, and it's the resilience that they need, and that's what's required for them to have the visibility that they need to run their applications and deliver the level of resilience their business owners expect. Mm-hmm. I think that core uniqueness ultimately allows us to continue to drive great value. As the world goes more digital, as more applications get deployed, these problems get harder, not easier. The scale issue becomes a scale issue for lots and lots of companies. It's not this small set of companies that are looking for that today. It's everybody that's gonna be looking for that. 1.5 petabytes, we can all have our guesses. You don't need to tell us who that customer is. You wouldn't be able to guess. It's not the fruit company. No. It's a random company you would never be able to guess. Wow. 'Cause it's what's happening is these application environments within companies that you can't guess- Yeah are at these kinds of volumes. What's happening? Let's talk about this 1.5 petabyte- Yeah Random company. Yeah. That's surprising. That's massive scale. It's massive scale. What is happening in their environment that's causing? It's- this massive growth in data log? It's full digitization, so all the stuff that was living in other environments or basically being brought forward as applications that are Customer-Facing. Mm-hmm. This whole environment then needs to run 24/7 to serve the needs of the customer, and through that they have to deliver business resilience. It's absolutely critical. With that, you're generating a ton of machine data. Mm-hmm. That's what we're good at. What do they use you guys for? What are the application modules if you view it through the lens of SIEM and IT operations? Yeah. The- It's a broad combination. Oftentimes with our customers, we anchor in, and the first use cases we serve are the needs of the security buyers, which are it's the SIEM environment, but it's in that broad security analytics environment that customers need that's relatively sophisticated. I think in today's security world, why are data volumes so high? Well, you want to keep all this data to figure out if something happened. Mm-hmm. People are keeping their access logs for a long time. Yeah. You know, firewall logs are huge and chatty, and there's just a massive amount of data in every endpoint. They want to know what's happening on every single endpoint. Yeah. Across that broader environment, they want to understand, did something happen, and be able to correlate all that. Mm-hmm. That's an anchor. Then on top of that, in the application environment, they are trying to understand what's going on in those applications. If there's some form of application failure, they want to be able to remediate as fast as they can. You really want high volume data that ultimately gives you the visibility that you need to be able to bring that application back very, very quickly. Got it. That's APM? It's basically our core logging suite as well as metrics, APM, the whole suite. Got it. What are customers telling you? You spent some time with the user conference. Yeah. You spoke. The voice of the customer, what is that telling you? You know, I think. Et cetera, to the incoming CEO. Well, I think one of the messages I got from customers is they want to see the pace of innovation continue. Mm-hmm. Because Splunk has been so well regarded and important in their environment, they want to see that pace of innovation. I think there's so many great things going on at Splunk that I think we can deliver on that. I think, 2, we still have customers that are trying to understand our new pricing model. Mm-hmm. You know, for those of you new to the story, we went from an ingestion-based pricing model 2 and a 1/2 years ago, meaning you basically paid a toll for the data that you brought into Splunk. Mm-hmm To a workload-based pricing model, which is, if you're getting value from that data, you will pay a fee to us. Mm-hmm. There's some hangover from the old world, and we need to continue to help customers understand that we're on this new pricing model. On top of that, the capabilities that we're offering today, many of which we introduced at our user conference, help people think differently about the data that they manage. Mm-hmm. One of the tricky things in the old world is, it's all about bringing it all into Splunk. Yeah. In this new world of multi-cloud, oftentimes hybrid, you may want to leave your data wherever it should live. You can then lower total cost of ownership because people can think about where should that data live in the most cost-effective place, but get the benefit of Splunk by being able to look at data across that broad environment. Mm-hmm. That distributed search, that federated search across these various environments is super technically complicated. Yeah something that only Splunk's delivering today. I think there's some, you know, very cool things that customers are still getting their minds wrapped around, but today's business requirements are forcing people to think about it. Another example, I was on a call with a large CISO. They're struggling with data privacy rules around the globe. They have applications now that they'll deploy full application stacks in country, not move the data, but they want to be able to use Splunk centrally and be able to look at it from a security point of view without centralizing the data, 'cause they kind of can't centralize it anymore. Hmm because of data privacy. DFS, I remember watching a demo of it, I think October 2019. That was the last prior to this conference. Yeah .conf. Yeah. I was blown away. I think it was released around that timeframe. Is there anything there, I mean, that fundamentally changes the economics of search and the whole value equation, how much storage, how much compute need for. Could that be? It's a really important component. I think the idea of how do you process data on the edge is really important. Very simply, you can process that data before you ingest it into Splunk. You can actually leave it in place, and you can slim that data down. Why would you do that? Well, you might have PII in the data. You want to mask the data, so you don't want to bring it in. Just going back to my firewall logs example, firewall logs are super chatty. You can make them much smaller. There's no reason to keep all that data around because it's not actually useful. There's a lot of utility in what you can do on the edge that ultimately then gives you a cheaper environment and something that's actually easier to manage and manipulate when you're trying to do searches. I wanna get the macro question out of the way, and then. Sure We can jump into product strategy, cloud transition. Sure Finance and whatnot. What, what's your take? I know you spoke with a lot of customers. Rates, everybody's worried about rates. We just had an inflation report, which was not that great. Yeah. What are your customers telling you with respect to how they view the relative importance of Splunk vis-à-vis other things? Yeah that they may have going on, what could be a budget-constrained environment? Yeah. I think we've seen a couple things. One is our security buyers view us as so fundamental. I see those environments continuing to grow and flourish. I think in the application environments because there's so much digitization, and that's driving very positive economics probably for customers. Mm-hmm. That will continue to grow as well. Where we saw some hesitation and reluctance, and we talked about this in our prepared remarks. Mm-hmm It is customers that had been on-premise Splunk customers. They pulled back a little bit from the move to cloud. Now, they all believe they're gonna go, but that's a project that has incremental funding associated with it. It has to be prioritized relative to other things. We saw some slowness in those projects. Mm-hmm. Because they had that ability. That's very different than, "I'm not going to use Splunk. Mm-hmm. It's really these incremental projects. Mm-hmm. Now why is that important to us? A customer who's paying us $1 on-premise will typically pay us $1.50 in the cloud. That's why when we saw those projects slow down, that's what impacted us from the ARR guidance that we gave for the remainder of the year. Got it. That was before you got on board, so really, I mean, you spent the last 3-4 months scrubbing everything as Yeah CEO, getting into the pipeline, et cetera. How do you feel about the new forecast? I mean, to what level of conservatism would you attribute the new forecast to, especially having seen what happened in the last 3-4 months? Yeah, no, I think it's a really good question. I think my view, and you can just go back and look at my history, my view has always been to set reasonable expectations and, outperform those expectations. We, you know, I think we were very thoughtful about our forecast. Yeah. That's how I would describe it. Mm-hmm. Mm-hmm. Okay. That's great. I don't know, Ken, if it's okay to talk about the new investment. Sure. Yeah. Sure. Do they send you a comfortable talk about it? Totally comfortable. Yeah. Maybe give us a little color 'cause that was the question du jour Friday afternoon. Yeah. After the market closed. Yeah. Just the quote if you're not familiar with what we're talking about. Hellman & Friedman made an investment in Splunk. They first came into the stock in Q1 of this year, and they took a reasonable sized position. They traditionally don't do those kinds of investments, but that's what they did in this case. Then on Friday, we announced that we had signed an NDA, a standstill agreement, and a voting agreement with them. The reason for that is really simple. They're great investors, and I wanted them inside the tent so that they could be helpful advisors and help us drive this transformation in the company. I'm super excited about the opportunity to work with them. I think they just fundamentally see the Long-Term opportunity in the stock. Very similar to the agreement that you had with Silver Lake, right? Different structure, but Oh. 'Cause you think about Silver Lake, we did a convertible with. Yeah. This was Hellman & Friedman bought in the open market. They bought stock in the open market. Yeah. Um, and so- They have more information or less than Silver Lake? Probably more, I think. It's similar. Yeah. Yeah. I would think of it. You guys can think of it as similar. Okay. You know, I think having Silver Lake involved in the company has been great too. They were new to me. Had the opportunity to get to know them, but we leveraged their operating partners. Like, we get benefit from them. Yeah. I put them to work. Yeah. Like, if we're gonna have them in the stock and have this relationship, I'm gonna put them to work. Yeah. It's really good. It's really helpful. What does Hellman & Friedman bring? I know that it predominantly a private equity investor. Sure focusing on restructuring. Sure Turnaround, cash flow, et cetera. What are you looking for from Hellman & Friedman to help you with? Yeah. I think both Silver Lake and H&F are really thoughtful about how to drive Long-Term transformation models, and we're in transformation. I welcome their feedback and that. I think I will probably always have a Long-Term growth orientation while we achieve this balance, and I think they can be instrumental in helping us achieve that balance. Got it. Gary, wanna get your thoughts on the cloud transition. You've talked about. Yeah How there was some hesitation. If you just take a step back, Splunk has always had the potential to achieve this transition, and come out of it very successful. Yeah. There appeared to be roadblocks along the way, even before the macro situation. How are you gonna do it differently? What is your playbook gonna be that is more reflective of how practical it is to get a transformation going? 'Cause it's not. Yeah. As you said, it's not easy. You need funding, et cetera. How do you make the barrier so low that it becomes a No-Brainer for your customers to. Yeah Let's just go. Yeah. Like an Autodesk or an Adobe. I know it's different, those are applications in your infrastructure. Right. How do you make it easy? Yeah. I think there's a couple things that you should be thinking about in our business and our business model over time. One is, in all the customer meetings that I did, basically everybody's telling me they're gonna be hybrid in some way. On-prem's not going away. Mm-hmm. In this class of customer. Mm-hmm. In that context, they can be very thoughtful about when they move, but there will always be some element of on-prem. Now, the beauty of Splunk is they can, they can bring those environments together with a single instance of Splunk looking across those broad environments. Unlike Autodesk or Adobe or any of those, where I think customers make that move to the cloud and they're done. Mm-hmm. They're done with on-prem. Yeah. These customers aren't gonna be done with on-prem for a long time. Mm-hmm. One of the critical things for us is how do we continue to extend value, get more use cases, drive more incremental net retention in this broad hybrid environment. Mm-hmm. That move to cloud clearly critically important. I think there are incentives that we can provide, ways to reduce, friction. Mm-hmm. Some of that's opportunities and use cases that you can do in the cloud that are harder to do on-prem, the way we can service a customer. 'Cause the reality is, and these customers that are trying to do a petabyte in 1/2- Mm-hmm That's a lot to manage. Mm-hmm. The opportunity for Splunk to manage that on your behalf, that's really compelling. Yeah. At the end of the day, in a world where labor continues to be tight. Mm-hmm I think we can play a really critical role and be a very good partner for our customers. I fundamentally believe all these customers will have a cloud element, they're just going to be thoughtful about that timing. Yes, the barriers will come down, but we will always be hybrid. Got it. What is the likely mix of your business? I know end of next year was 50/50 mix ARR cloud versus- Yeah ... on-prem. Do you think it stays there given the hybrid nature and the propensity of your customers? I think that. Do you think it goes higher in favor of cloud? No, I think it does go higher. I think, you know, I think the prior direction had been that we'll be at 70% or something by the end of the year. We were basically at 60% last 1/4. Yeah. You know, I think we're gonna progressively move up. Of net new ARR. Yeah. Yeah. Yeah. Yeah. I think, over time, we're probably a three-quarters/one-quarter company. Got it. Okay. Yeah. Over time. Sizable business. As you come out of this macro uncertainty, just looking at a more normalized economic environment, what do you think is the top-line potential growth of the company? Is it a 10% top line, 30% free cash flow, or a 20% top line, 20%? There's rule of 40, rule of 50. What's your board telling you as to what you should gun for? What are you telling them what you want to achieve for the company? Yeah, I think the Rule of 40 is the right place to think about for now. Balancing a growth rate that is north of 20% and cash flow that's north of 20% over time. One of the things that was not unnoticed, but maybe under-recognized in the 1/4 was, in this slower than expected shift to the cloud, you beat your revenue, you beat your operating income. Right I mean, everything. Our operating cash flow. Yeah. You grew- Right 32%- Right on the top line. Right. I think, Which is remarkable. I mean, 32%- It's a really good thing. At full scale. I mean, you are, like, 2 times larger than some other companies, 3 times larger. Right 3.5 times larger, but you're growing almost the same. That's right. I think that where we can continue to show improvement, which we will, is continuing to improve operating margins and cash flow. We can be more efficient as a company without inhibiting growth. I wanna drill in on the cloud business. How different is the cloud platform, Splunk Cloud Platform, versus the core enterprise platform? What I'm trying to get at is the product roadmap going to favor the cloud platform in such a way that it becomes a No-Brainer? You know, why would I upgrade to- Yeah Enterprise 7.0 or Splunk 8.0? Let me just go to the cloud. Are we at all at that point, remotely close to that point, where it becomes a No-Brainer to start off with the cloud? I think, when I look at new customers, new customers are starting out in the cloud. Yeah. That is a No-Brainer for people. I think all of the work that we have done to bring together our broad observability suite. Mm-hmm with the core of Splunk Mm-hmm that integration is something that you only get in the cloud. Mm-hmm. I think those capabilities that we're delivering today that extend not only doing rich log management, but also then extending that more broadly into our observability suite, you only get that in the cloud. Yeah. There's really great incentive. I think frankly, you know, the pace with which we have been moving on the observability side, I don't think people have fully kept up with. Mm-hmm. And- Tell us what's happening there, because that you got 2 companies that have been talking up, Datadog and Yeah ... and Dynatrace. Splunk's been awfully a little quiet, especially since the acquisition of SignalFx in 2019. Yeah. It's been awfully quiet. Tell us more what you plan to do there? Yeah, I think. You know, if you just go back and look at our history of the acquisitions that were done to enable us to have a rich set of capabilities and observability, starting with SignalFx and Omnition and Plumbr and all of these acquisitions that we've done, what the engineering team has been working hard behind the scenes on is, how do you bring those basically 5 acquisitions together into a single user environment and integrate it fully into the core? That's what they've been working on. Mm-hmm. You know, I think if you go back a year is the first time we really had single product. You fast-forward to today, a lot of the sharp edges that frankly got in the way of us winning deals, we took a lot of the sharp edges off. The number one thing that we've continued to hear that we've done a tremendous amount of work on and really sort of broken through on is, how do you then leverage the core? Mm-hmm. 'Cause people want all that together. Mm-hmm. That's where we are today. Now, is there more work to do? We brought together 5 companies. Yes, there's more work to do, but we've made a tremendous amount of progress, and customers are seeing those kinds of advantages. Mm-hmm. I think one of the places we may have been slow to deliver on is integration with the core, which I think we've got that right now. Got it. Can you tell us a little bit about your largest cloud customer, and what kind of critical capacity are they using Splunk? We understand there's a perception that, you know, Splunk, the best customers go with the On-Premise platform, whereas there's the perception that the shift is happening in a way that favors the likes of Dynatrace and Datadog, et cetera. Maybe if you could shed light on some of your largest cloud customers and how, you know, critical. Yeah. to their environments. We have a customer in the healthcare business. Okay. We're the underpinnings of their all cloud. They moved to cloud a year ago. Mm-hmm. A year and a 1/2 ago. We're the underpinnings of all their security operations. Basically, we're the core capabilities that help them identify issues, remediate quickly, and we are the underpinnings of the way they think about their whole application environment. Mm-hmm. They had to respond to all the challenges around COVID, and we were basically their underpinning and observability for everything that they were doing around COVID. That was, you know, turn on the dime, get applications up and running, and we're doing it at massive scale. I don't know that I can do the numbers. I think they're at 1/2 a petabyte a day. Mm-hmm. It's insane. Mm-hmm. Yeah. Wow. That's none of the cloud. It's big volume. Yeah. All in the cloud. Yeah. What is AWS doing to help you guys, scale your cloud business? You know, we continue to partner really closely with them. We announced a collaboration, for example, on data format, which it's gotten a lot of visibility because I think it's really an important step in the industry. We've been partnering there, and we're partnering on a number of other technical projects. From a go-to-market perspective, we're obviously very important to AWS as a vendor in their environment because we bring a lot of large customers with us when we move our customers, they're oftentimes going to AWS. It's elevated 1/2 a petabyte a day multiplied by. Right. -me. Right. Exactly. You know, I think that there's been very good cooperation. There's probably more we can do, but I think we're making very good progress there. Got it. Let me do a quick pulse check. Anybody in the audience has a question? Please go ahead. Let me do the pricing model first. I think the pricing model is one obvious one is just the volume of data the customers wanna manage is just through the roof. If you think about it from a security perspective, you don't want people thinking about, "I can't afford to bring that data in because it's gonna cost me too much money." It's a really bad. You'd be making bad decisions. This idea that we charge you when you derive value from the data makes total sense, and it's very logical for a customer. Friction points in winning deals really depends on the context of the deal. I think some of our competitors on the observability side, they may be more developer-friendly. Because we brought together these acquisitions, we probably still have some sharp edges. I would say that would be the number one friction. On core logging or in SIEM, we win those deals. We don't see a lot of friction in those deals. Because we're made for this big High-End environment, we're not great at the lower end of the market where somebody wants something simple. There's lots of friction there. Yeah, that's a really good question. I think we're definitely oriented to serving the needs of these customers and ensuring that we can continue to extend the value that we're delivering. I think 100% we're structured the right way. Could we be more efficient? Yes. We could be more efficient. Any other questions? Gary, I wanted to ask you about Go-To-Market. You're a relatively big company and, direct versus indirect, what are the things you've been doing on the indirect side, SI partnerships, et cetera, to help leverage your- Yeah. distribution? Also on the direct side, I know that you've spent the past 4-5 months to really do a deep dive of your distribution. Yeah. capabilities, given the departure of Teresa Carlson. Where are you as you grow? You probably will not be able to run and take responsibility for distribution. Do you see at some point you need to bring in somebody from the outside to help scale the company to the heights that you want to take it to? Yeah. No, great question. On the partners, one of the things that is great is we have very good relationships, for example, with the large Global Systems Integrators. We've highlighted at our user conference people like Accenture, where they have a dedicated practice around Splunk, and we're incredibly pervasive across their engagements and customer base. I think there's still more that we can do there, but we've got a very good foundation. You look across the other GSIs, we're very engaged both from a security perspective across and also across many use cases. Interestingly, I think there's just tremendous opportunity in this whole level of on the security reseller side, because we play such a fundamental role. There frankly isn't a lot of competition there. We can be a very good partner because so many of the security resellers are trying to deliver more services around that. We're not a services company, and there's tremendous opportunity. I think we're Well-Positioned. I think there's more that can be done, and I think there's more inflection that we'll see from that. We see opportunities where we can do more partner-led motions for certain kinds of use cases. I think I'm pretty excited about that. Then going to your organizational question. Just for context for people, under prior leadership, there were 2 presidents, a president running products and technology, and there was a president running Go-To-Market. Both of those individuals were working for the then CEO. When I came in, I made the decision to flatten the organization, to basically have a more traditional organization where you have a head of sales who reports to the CEO, you have a head of marketing who reports to the CEO. That doesn't seem weird to me. That seems very normal to me. I like the more Hands-On structure, and I don't think that it's I don't think having someone in that role necessarily is a function of scale. I think it's really about an executive team that's all in lockstep, driving the business in a way that's achieving the outcome. I don't feel like we're inhibited at all from a growth perspective or opportunity perspective or scale perspective by having that layer in the company. It's worked tremendously well, having this flattened structure. With respect to GTM and going back to pricing, you. It's been a long time since the pricing model was actually announced. I think it was. 2.5 years. When you had President Obama at, in, down on Geary Street somewhere, right? The swim lanes, I thought it was a pretty cool idea. Then years later, wait, you're, as incoming CEO, saying the customers do not still understand you have this amazing- Yeah. pricing model, right? Maybe it's on GTM to fix it. What are you telling your distribution folks in order that customers can universally hear that you do have this new pricing model. You don't need to license it based on the ingestion. Yeah. I think I'm not sure really what the history is and why. Even President Obama announced it. I mean, what more do you need, right? I think sometimes there's just hangover too. People, you know, if you think about, renewal cycles for us, our average contract duration is 24 months. Yeah. People only really think about it. Find out about it. Yeah, about every 24 months. I think it's really the frequency with which renewals have happened has been the issue. I think we're working our way through that. I think there was a time, and you guys probably saw this, at that, right before the pricing model did change, there was a lot of customer agitation around that, and people were frustrated. That frustration doesn't go away immediately either. That takes some time to work through the system. Yeah. Yeah, you can solve that. Yeah. I think it's very solvable. Yeah. For sure. Great. The other thing I wanted to ask you is, people are in love with logging. We had Data that talked about how they love the logging business and how they have aspirations to grow that into a Yeah. You know, a $100-$200 million business. Datadog's been in love with logging. You have been in logging for- Log it. the longest of times. Right. Why is everybody fond of logging? It's just the most common way to get insight and visibility of what's going on, both in the security environment as well as what's going on in your application environment. It's a traditional way in which developers think about giving a view of what's going on within an application. I think, in particular, the reason people are in love with logging right now on the security side is security has become a data problem. Mm-hmm. Only if you have that rich data environment can you do the kinds of analytics you need to understand what the heck happened in your environment. Only if you gather that information, do you have a clue. If you don't do that, you are Flat-Footed. Mm-hmm. I think it's become more important, not less important, oddly. Yeah. In theory, it could have gone the other direction, but it's not. Yeah. It's definitely more important today than it's ever been. Wow. The fact that competition is getting in, but then your growth rates, I know you don't disclose your logging revenues, but they don't look like they have gone down. I mean, they No, our growth rates really reflect what's happening in the market. Yeah. Which there's just tremendous demand, and people have to have these kinds of environments in place. So is the, is the- The market is huge. Yeah. That's exactly what I wanted to ask you. The market is huge. The fact that security is now a data problem combined with other demands, such as, you know, every application leaves logs. Right. that these need to be. Maybe the TAM is larger than we thought, and that's why you're not feeling the effect of competitive. I think the TAM is. -incumbents. The TAM's large, and there's all these crazy stats, and I don't know if you've written any of these crazy stats, about the number of applications are gonna be deployed over the next 3 years. Those numbers are crazy. $500 million. $600 million. Yeah, whatever it is, whatever the number is, they're crazy. It keeps going high, yeah. Did you write any of those stats? No. It's from a CEO who will be presenting tomorrow. No, there's other people that are writing these. I've seen these stats all over the place, not from CEOs, actually from analysts. The numbers I see between 500 and 700 million apps by 2026. Yeah. The numbers are crazy. Yeah. With that comes all of this application visibility data. Yeah. What is that really? It starts with logs. Yeah. In addition to that, like every single application. What do you need from a security perspective? Well, you need all the access logs. Who the heck logged on to this, and what time did they log on? Yeah. Everything around that application. If there's a back-end database, you're logging that because you wanna know who had access, what did they see, what did they do. All that information gets sucked into Splunk, and that is the interesting opportunity. Yeah. In the couple of minutes that we have left behind, I wonder if anybody else has any last-minute question. Please. Go ahead. It's general for you. The scale and the com- Of the company or of the problem? Of the cause of the problem and the work needed there. Okay. Provide us with some value. With the customers, the problem you're solving for ROI. All of the above. How did you? Yeah. from size. Okay. How do they- Let me try. If you think about Splunk, where are we focused from a market segment perspective, we're focused at the high end, so think Global 2000. Start with that. 2, where are we installed in those customers? We're basically the underpinnings of those security environments. Almost all of those security environments. You hear about Dynatrace, you hear about Datadog. Nobody's using those products to underpin the security environment of a Global 2000 company. That's not happening. That's typically Splunk. That's 2. With that comes lots of data. We're Mission-Critical in those security environments. If someone says, we think we had some incident, the first place they're going is they're looking to Splunk to figure out what the heck happened. If something did happen, they're trying to figure out a way to remediate it. From that, what we see is the application environments then that people are building are generating tons of data. At scale, we're uniquely positioned to win all of those use cases that ultimately continue to drive incremental opportunity for us. That's why our Dollar-Based net retention is so high. The numbers that you guys should look at when you're thinking about the growth and opportunity in the SOC is look at the net retention rates because the customers continue to grow. Going back to your fundamental question is those large customers continue to grow. Why does a Global 2000 company, you know, they're part of this crazy application number. They're putting more things in the cloud, they're being more digital, and they have a super complex Multi-Cloud hybrid environment that they need to operate in. I'm not sure I totally answered your question, but I think I'm relatively close. That was good. No, you'll pass me a question. Yeah. Any final question? Please, you get the last question. Make it good. No question. We question. We noticed you. No, I think that's something that's core to what we do. We'll obviously have that. We have just had the hurdle that we brought this together inorganically. We're bringing those capabilities together. We will have that. I think we also have the added benefit that we have these really deep, really long, really important relationships with the Global 2000, and we think that's strategically important. Should we call it a day? Let's call it a day. Thank you so much. Thank you. Thank you for your participation, collaboration, cooperation. Great. Thank you for making it to the conference, and have a lovely day. Happy to be here. Thank you so much. Thank you.