Yossi Carmil: Absolutely. First of all, in — maybe in one sentence, an amazing huge opportunity. We are a very strong positioned on the federal space already. We have all the right customers, and we have all the entries. With bringing FedRAMP and with, I would say, even an upgraded structure that we will build within that team later on, it will bring us basically possibilities to expand the already existing business everything — basically in each one of our product portfolio parts, both in collect and review, especially in investigative analytics. And when it comes to the cloud solution, so Guardian, investigative analytics and all the SaaS offering, which is related to collect and review, so a huge opportunity.
Operator: Our next question will come from Jeff Van Rhee with Craig-Hallum.
Jeff Van Rhee: And congrats to the team and we’re really impressed with execution in light of the Hamas attack to get us really just outstanding quarter, particularly on the ARR sequentially here. So congrats to you and the team. You’ll see, on the cloud enablement of the product suite, maybe just a little longer-term thinking. How do you think about the product evolution and the point at which we might be all cloud or very close to all cloud? How do you think about that from a product evolution standpoint?
Yossi Carmil: Look, first of all, we are — I think we stated several times, so I will repeat. We are in a continuous effort on the on-prem, on the one hand, which is something which within our customers is there to stay, especially due to sensitivities, which are related to investigative evidence on the cloud. Nevertheless, we spoke several times about the stronger trend of our customers moving to the cloud and more acceptance over there. We are fully committed side-by-side with on-prem to bring value to the customers by delivering the cloud offering in full scale, improving their ability to, I would say, collaborate their ability to create more efficiencies. There is tremendous opportunities, but we see the cloud not only as a business opportunity, it’s really a way to improve the efficiencies and the productivity and the way investigations can be modernized.
So as a result, we are aiming to, I would say, start on the collect and review level in our cloud efforts. But as we look further along the road, it’s relevant for our entire offering as a cloud, I would say, infrastructure that will be offered to the customers.
Jeff Van Rhee: And then on the Global CRO, Marcus Jewell. I’m sure you’ve looked through lot of candidates. What in particular did you go looking for and find in Marcus?
Yossi Carmil: I think I said it, but I’ll repeat it again. First of all, acceleration, the ability to accelerate a good mix of a person that basically been there, done that in the move from on-prem plus cloud environment. Ability to scale, and allow me to say so, a killer application in terms of sales DNA, okay? On top of that, we are — and I think I said that in several calls, our efforts in the business — we are very strong in the United States, and we are going to scale and grow here along the road. But the reason element of double down our efforts in Europe and our ability to scale in Asia Pacific and what Marcus brings to the table is a very strong mix between American experience and the international part of what we need and will upgrade. So that sums up the most important thing that we searched and we’ve seen in Marcus as a selected candidate.
Jeff Van Rhee: You’ve talked over time about strategic M&A. Just curious what you’re seeing in the market and the probabilities of seeing something land here in the next several quarters? And then one last question. Pricing with respect — specifically to Magnet and GrayShift, what you’ve observed over the last year?
Yossi Carmil: So first of all, regarding M&A, it’s — look, we said several times, and M&A is part or the inorganic element is part of our strategy. By the way, if you look at our balance sheet and if you look at our cash, you can see that we have enough firepower in order to make, I would say, smart moves in that area. And we continue to search — actively search, we do that all the time, regarding possibilities, which are around, I would say, time expansion, achieving more customer base and accelerate time to market in elements which are part of our organic growth, but we might do them quicker when it comes to via acquisition. So, so far to M&A. And regarding competitors and especially regarding pricing, I’m glad to say that our market and our customers appreciate value, and they are ready to pay for that. In that context, we have seen price increases in our market this year, and we will continue to see them both from our competitors and also from our side.
Operator: Our next question comes from Tal Liani with Bank of America.
Tal Liani: I know you don’t provide ’24 guidance, but I have a question about margins — EBITDA margins. The average for the year is 16.5%, and that’s because 3Q was so strong. The fourth quarter guidance is 15.5%. So that means there is about 100 basis points of headwind if you look at the ongoing rate. And the question is for next year. What can you tell us about the puts and takes — I’m not looking for specific guidance, but what can you tell us about the puts and takes for EBITDA margin for next year? If you start from 16.5% because of a strong 3Q, does it give you kind of a tough comp for the year or can — do you think you can still work it up throughout the year?
