Gary Merrill: So Rudy, that’s all true growth. There’s one last piece of your question I wanted to finish on is that what we’re seeing in Metallic is not candlelizing over from converting or install base. You asked that question specifically and we’re not. That’s not part of the current play or which driving the business. This is all about net new business.
Rudy Kessinger: Great. That’s all very helpful color. I guess just one quick last one on SaaS. Again, you mentioned the record net new SaaS ARR and Q3. If I look back last year at seasonality, your net new Metallic ARR and Q4 was a good step up from Q3. Should we expect to see that play out again this year? I know you’re not guiding specifically the SaaS ARR, but just giving your months into the quarter, how should we expect new SaaS ARR to come in for the March quarter versus December?
Gary Merrill: I’ll take that Rudy. It’s Gary again. I think the seasonality you saw last year from fiscal Q3 to Q4 is fair for something like we would expect for this year. I think we saw roughly 15 or so million sequential growth. I think sometimes like that or slightly more it’s what our objective would be is to keep that momentum going. We have a strong pipeline going into the quarter and we’re seeing our close rates continue to improve as well. So we’re optimistic about where we’re going to lay into the fiscal year. We’re not calling, but we’re trying to get.
Rudy Kessinger: Great. That’s it for me. Thanks for taking the questions again and congrats again.
Gary Merrill: Thank you.
Operator: Your next question comes from the line of Eric Martinuzzi with Lake Street. Your line is open.
Eric Martinuzzi: Yes, I noticed a nice pick up on the America’s reach in that 16% year-on-year. Was that kind of broad based across verticals or was there any particular verticals that stood out for you?
Gary Merrill: Yes. Hey Eric, it’s Gary. I’d like to hear from you again this morning as well. Our America’s had really strong quarter from a total perspective. Our America’s business was up 16% year-over-year really driven by that subscription revenue as well. Just the total subscription revenue in the America’s was up 43% year-over-year. And what we’re seeing is really strong traction on some of the larger deals. The larger deals on renewals is well as kind of larger land and expand deals. Our new, I’m sorry, our big deal, so what we say kind of those term software deals over $100,000 were up almost 50% year-over-year. So it’s all tied to driving the cyber resilience message and making sure that we are helping our customers solve those difficult problems. Not vertical specific. Last quarter we talked a lot about Fed. This quarter it was more broad based across the vertical stream tied to executing against the renewal stream and the larger deals.
Eric Martinuzzi: Got it. And then the buyback program, I know you haven’t given us a view for FY 2025, but you’ve been relatively consistent of at least the past couple of years about this greater than 75% of the annual free cash flow. Is that the intent going forward here or are you going to revisit that when you’ve lost it the current plan?
Gary Merrill: Yes. So our current guidance will continue to hold. We believe right now that our buybacks are a key part of our responsible growth strategy. And our publicly facing data guidance of at least 75% of free cash flow is a good modeling trend. As you can kind of tell through the nine months, we’re well ahead of that. We’re north of 100% of free cash flow because we’re opportunistic also in the market and we see the value that we have as a company and our ability to continue to drive shareholder value.
Eric Martinuzzi: Thanks for taking my questions.
Operator: Your next question comes from the line of Jason Ader with William Blair. Your line is open.
Jason Ader: Thank you. Good morning guys. I just wanted to ask about the revenue growth outlook. I know you’ve talked about I think what 6% to 7% growth CAGR from the 2021 Analyst Day. I’m not sure maybe you’ve updated that but just wanted to get a sense of whether you are reiterating that. Do you think it could be higher and then more specifically as we think about 2025 FY2025 without pinning you down on guidance right now do you think the growth could be higher in revenue growth could be higher in 2025 than 2024?
Gary Merrill: Okay. Hey Jason, it’s Gary. Good morning. I’ll hit a couple of these points. So first revenue growth for us is ultimately an output of what we’re seeing from an ARR perspective. So let me start let me start there and we’re seeing really strong growth. If you look at our ARR growth of 17% this quarter is really strong and we’re seeing that across all of our corporate businesses. Our Q4 guidance implies that we’ll end up this fiscal year on the top line right roughly in that 6% revenue growth. We have an amazing opportunity to accelerate as we move forward. Obviously we have not given guidance for FY 2025 yet. Clearly our expectation that FY 2025 growth will be higher than FY 2024. Right and as we start to get work towards our next call next quarter we will give a little more clarity on four-year FY20 actual results but we but most importantly is we see the opportunity in the market.
That’s key. So as we see the opportunity in the market we can continue to build on the momentum from the quarter we just had and clearly where expectation is that our growth next year will be higher than this year on the top line.
Jason Ader: Got you. Okay great. And then another one for you Gary. Can you give us a sense of how much revenue in a given quarter is actually effectively let’s call it in the bag at the on kind of day one of the quarter and in terms of and that would include renewals. Let’s just assume you’re going to get the renewal there. I know you don’t always get 100% but let’s just assume you’re going to get the renewal and then committed contracts which I guess would be support and SaaS. So those two things combined how much of your revenue in a given quarter is actually coming from those sources today?
Gary Merrill: We don’t quantify specifically right I’ll say what’s the contractual revenue we have in the bag on Q1 or day one of the quarter. Though as you look at a couple key pieces we just close our SaaS ARR so you can take our SaaS ARR and divide it by roughly four and you could that’s almost guaranteed you get that piece and the other piece is customer support right that’s very predictable. So when you look at just those two pieces SaaS and in customer support you have a very strong starting point to the quarter. It’s how we see it. The renewal piece then we strive leverage and the incremental that goes over our land business. I think we’re all closed is that on a relative basis each quarter becomes more and more predictable than the previous with some of these foundational pieces and that’s what we kind of focuses on in increasing product of predictability sequentially as each quarter goes.
Jason Ader: Okay. Let me just ask this in a slightly different way I don’t know if you’re going to answer it but I’m going to try. Of your $100,000 plus deals today how much are actual renewals versus basically new business or upsell business?
Gary Merrill: Both are healthy contributions. Both are. We can’t get into the specifics. We’re not getting into those specifics but they’re both they’re both very healthy contributions.
Jason Ader: And it’s obviously a lot higher today than it was a couple years ago.
Gary Merrill: Yes that’s right.
Jason Ader: All right thank you guys.
Operator: Your next question comes from the line of Tom Blakey with KeyBanc Capital Markets. Your line is open.
Thomas Blakey: Hey good morning guys and great execution here and solid results. Congratulations. Just want to maybe piggyback on Jason there on the potential renewal opportunity. You’re pretty clear about saying that fiscal 3Q we just passed was a very large opportunity for the company. I think one of the largest, I think Gary said, in that fiscal 4Q would be lower. Maybe Jason literally just asked this, but will the renewal opportunity that it seems like you have a solid grasp around this, will the renewal opportunity in fiscal 2025 be bigger or the same as fiscal 2024?
