So, you’re going to see the true impact of our Taegis revenues as we excel out into FY, the following year FY 2025. So, we’re not providing specifically that individual guidance around gross margins between Taegis and other MSS, but see the benefit as we roll into FY 2025 of having Taegis margins.
Saket Kalia: Very helpful. Thanks, guys.
Operator: We have our next question from Mike Cikos from Needham. Mike, your line is now open. Please go ahead.
Mike Cikos: Great. Thanks, guys. And I had a question really first on housekeeping, but can you give us what the MSS customer count and the total subscription customer count was exiting fiscal 2023?
Paul Parrish: Yes. So total customer count is 4,500. Taegis customer count is 2,000. Other MSS is 700, subscription customer is 2,500.
Mike Cikos: Got it. Thank you. Thank you for that. One of the things that I’m trying to back into here, I guess if I look at the 96 million that Taegis just generated, the net new ARR over the course of fiscal 2023, is there a way for us to think about how much of that net new ARR was from migrating existing customers versus landing and addressing new customers that previously weren’t on the SecureWorks platform?
Paul Parrish: Yeah. So, it’s somewhere in that 40-ish percentile was the new logo cross-sell type activity. The re-solutioning side of that 60-ish percentage points, a little bit less than that was re-solutioning as we exited Q4 and we talked about that earlier quarters that that mix was slightly off of that 50-50 that we were projecting for the year, but slightly higher on re-solutioning Q4, but very similar to Q3. And as we project out into FY 2024, we’re seeing 85% of our growth coming from our new logo cross-sell, organic growth. And so, we still have a small portion, mainly Japan to re-solution and that’s going to be what make it about 15% of that growth.
Mike Cikos: Got it. And I think you’ve probably answered my next question already, but I just want to stress test it here. So, if I think about Taegis ARR guidance in the out year expected to be at least 300 million, and we’re seeing €“ which implies at the low-end, $40 million in net new ARR over the course of fiscal 2024, if I compare that 40 million in fiscal 2024 to the 96 million in fiscal 2023, the reason for that delta is really just because we’ve done a good job re-solutioning a large chunk of the customers and really the focus now is going to be much more on landing new logos with Taegis. Is that a fair characterization or is there anything else that I should be thinking through there?
Paul Parrish: You’re right. We’re focused on new customers and cross-selling. Our existing customer is selling more additional features to existing customers.
Mike Cikos: Got it. Got it. And then one more if I could. But on the revenue, I guess, you guys have delivered this outperformance in Q4. If I go back a quarter you guys had said you were expecting about a $1.5 million headwind from FX, can you just remind us, did that $1.5 million essentially play out? Or was there any movement there to think about when trying to diagnose the upside you delivered?
Paul Parrish: Yes, FX actually swung a little bit our favor. It wasn’t the big headwind we expected going into Q4. But it is continuing to blow the directions on FX. So, we don’t see it as a big tailwind coming into this year, but I’m not guessing what FX is doing.
Mike Cikos: Understood. Thank you. I’ll turn it over to my colleagues. Appreciate the color there, Paul.
Paul Parrish: Thanks.
Operator: Our next question comes from Madeline Brooks from Bank of America. Madeline, your line is now open. Please go ahead.
