Matt Saltzman: Great. Thank you.
Corey Thomas: Thank you.
Operator: Your next question comes from the line of Fatima Boolani from Citi. Your line is open.
Fatima Boolani: Good afternoon. Thank you for taking my questions. Corey, I wanted to revisit some of the pipeline commentary you talked about, very clear that the focus was very, very intentional on keeping our existing customers happy and growing the wallet share there. But it sounds like there are going to be some pivots into building new pipe and incremental demand generation on the new logo front. And I just wanted to make sure I understood or picked up on that information correctly. And so really, what are some of the things that you’re going to be putting in place to be able to maybe reaccelerate some of that new customer and new logo acquisition momentum and those initiatives?
Corey Thomas: Great question. And by the way, welcome back. Look, I think that there’s — on the question of pipe overall is there’s two dynamics that are really key to focus on one. We’re actually doing a great job of building a strategic pipe. And so — and I’ve talked about this before. One of the interesting things is as we actually build as we build more consolidation pipe, those things are bigger deals and they follow the same sales cycles as the bigger deals. That’s a positive thing. We’re converting those things well. And that’s more of a timing thing. So, I think that we have more visibility into the outlook as we actually go forward. The second thing that I think you’re alluding to in hitting on, which is actually also important, is we’re focused not just on how do we actually build pipe, but we’re focusing on, what’s the efficiency and what’s the cost to build in pipe.
So, we’re not treating all things the same. So, I’ll give you a perfect example of that is we have a very intention to focus about how do we actually build pipe through partners in the ecosystem and through MSPs. You saw an example of that on one of the marquee deals that actually named on the call, going through partners and especially MSSP partners, but more broadly, the channel. We have a very, very tight focus on that, and we think we can do that efficiently through a targeted set of partners, that’s 1 example. But again, if you’re in the right demand areas, then you can actually sort of like in ways to actually build pipe, and we are focused, I would say, more now on the cost and the efficiency of the pipe that we build and the overall engine that just actually just driving growth as fast as possible.
We will grow. Again, our tight focus is on long-term growth. but it’s not on trying to get the fastest time to actually that growth is actually making sure it’s both durable, sustainable, but also actually has the right cost structure around it.
Tim Adams: Corey, the only thing I would add is, I think we both commented in our prepared remarks, just on the strength of the packages, the Threat Complete, Cloud Risk Complete, now over 40% of new ARR. And we’ve seen that grow nicely over the quarter. So, that’s another tailwind of momentum, I think, we have with our sellers, both new and existing customers.
Corey Thomas: Absolutely. Thank you again. Great question.
Operator: Your next question comes from the line of Jonathan Ho from William Blair. Your line is open.
John Weidemoyer: Hi, this is John Weidemoyer for Jonathan. Thanks for taking our question. So, your solutions are targeting modern SOC efforts in terms of SOC spending, are you seeing customers start to shift how they approach traditional apps like SIEM and other solutions to save muddy or improve security? And how might that relate to Rapid7’s value proposition.
Corey Thomas: Yes, we’re seeing a big shift. One is if you think about the traditional stock, it was primarily focused on collecting log files in the on-premise environment and monitoring the on-premise environment. what we’re doing when we think about the extended stock is actually focusing on the overall attack surface, which is not just on Tetris environment. It’s the cloud. It’s the applications. And so what we’re helping customers do is, one, collect all the data to monitor the full attack surface. But that also adds a massive volume of data. And so we’re focused on both the productivity but also augmenting either with our sales or with partners the expertise and the talent to actually manage the volume of data from that larger attack surface.
Customers are absolutely shifting their focus from traditional SIEMs and focus in malls on-premise to say, how do I cover my full attack surface, but then also looking at how do I do that efficiently. Because if you look at the trends that are happening right now, customers are not able to add as many security professionals as they would like. And therefore, they’re really, really focused on the efficiency and partners that can deliver efficiency in their agent, and that’s our focus on our extended SOC. Thank you for your question.
Operator: Your next question comes from the line of Brian Essex from JPMorgan. Your line is open.
Unidentified Analyst: Hi, this is [indiscernible] on for Brian Essex. Thank you for taking the questions. It was great to see you reiterate the doubling of free cash flow in 2024. If you can let us know like what level of confidence do you have in it? And what are the primary levers you’re looking to deliver that cash flow and how much control do you have over them?
