Andrew Nowinski: Okay. Thanks. So I have a question on the FY 2024 guidance. So you talked about gaining market share, seeing more Microsoft displacements, your pipeline is at an all-time high, your preliminary outlook for ARR suggests that net new ARR is only going to grow by 8%. Can you just talk about the factors that you think are going to get worse next year than they were this year to where that net new only grows 8%?
Tomer Weingarten: Yeah. I mean, a, we are really, really looking to put some form of a conservative prediction at a time where we don’t believe we can predict anything really. We don’t have a crystal ball. We don’t have a way to know how the economy would look like. Our assumption is that things are not going to get better anytime soon, and just on the account of that, we want to make sure that we don’t put two aspirational target out there for our growth. And as Dave mentioned, to us, we have always been incredibly nimble, incredibly agile in how we spend and how we expect growth, and we will continue keeping an eye as to when we can maybe press more on the gas pedal and maybe accelerate growth versus taking a more prudent and conservative approach to our growth.
So, all in all, this just to us means that we want to make sure that we are being responsible custodians and are giving the conservative view of the most that we can see, and right now, to be perfectly honest, there’s not much that we can predict to next year, so we are taking that view.
Andrew Nowinski: Okay. Fair enough. And then on the fed side, you said you secured three new agencies. I am just wondering, are those agencies exclusively using SentinelOne for endpoint protection or might they be using other vendors as well? I am just trying to understand the magnitude of those three deals in the fed you mentioned? Thanks.
Tomer Weingarten: Of course. Each one of them is slightly different. Some of them do use another vendor out there. Some of them use us exclusively. For all of those, I mean, this is an initial land. I mean, obviously, these agencies are sometimes just incredibly sizable, and for us, I mean, even the initial land is a massive deal, but all of them are just initial lands that will grow over time. For some, there’s another vendor out there, but to us, it’s just a massive, massive win and we continue to see traction in the federal, which is the most important part.
Andrew Nowinski: That’s great. Thanks, Tomer.
Operator: Our last question comes from Rudy Kessinger with D.A. Davidson. Your line is now open.
Rudy Kessinger: Yeah. Thanks for squeezing me in. Really just one for me. You talked about customers kind of right-sizing deal size and taking the number of endpoints they really need today as opposed to kind of buying more endpoint coverage based on some prediction of what they will need in the future. But I guess I am curious, are you also seeing customers may be taking Singularity core or control as opposed to complete and then as you look at the emerging products, it certainly it sounds like cloud security remains very high, but if you just had to look at cloud, identity, Ranger IoT, data protection, just kind of rank order which products are still seeing the most demand versus which have seen maybe a bigger impact to the macro and are getting pushed to the side?
Tomer Weingarten: Singularity Control is still the number one package we have and we haven’t seen people shift away to Singularity Core or, I am sorry, Singularity Complete is the number one package that we have. We haven’t really seen anybody move into Singularity Core or Control. To us, it really is about the adjacent modules on top of Singularity Complete that sometimes folks would choose to not spend on right now. These could be adjacent capabilities like remote script execution, endpoint firewall controls that are not always the bare necessities. But when you look at the core needs, obviously, EPP and EDR remain front and center. And the second part there is that, obviously, anybody that has transitioned or started transitioning to the cloud and is now using the cloud as a production environment must deploy workload protection, run and protection into those.
So those become a must-have. So across these two functions as well as more demand for MDR services and managed services. Those are kind of the, call it, the bread and butter of what we sell on today. Data retention is one that I highlight as well. Again, that’s actually a cost saver to many folks out there where they can retain data with the Singularity platform versus maybe putting it in another costly data lake. So those to us have seen the most success and continue to grow. I think for some of the other offerings that we have had, especially if you kind of look into endpoint management, that’s where sometimes people choose to pause and really focus on the ones that matters most.
Rudy Kessinger: Got it. Great. Thanks for taking the question.
Operator: And our final question is from Tal Liani with Bank of America. Your line is now open.
Tal Liani: Hi, guys. I have two questions. Thanks very much, by the way, for squeezing me in. The first one is, if I look at prior down cycles, there was always an issue for smaller companies to maintain the pace, because some customers are looking at balance sheet strength and are looking at cash flow, cash burn, losses and are shifting business to companies who are more financially stable. Your case is a little bit different because you are a leader in your space and I am wondering if you had this kind of discussion with your customers or if you had this kind of consent, how you address them if it’s a consideration at all? That’s my first question. My second question is about large customers. We are seeing across the Board that companies are talking about slowdown from smaller customers or push outs and push out is always the first step before slowdown.
And the question is, are you concerned that what you are seeing today is only the short-term, meaning smaller companies just react really quickly to what’s happening in the market and slowing spending and we could see larger customers doing the same thing at the beginning of the year. So that means we haven’t hit the bottom yet in terms of spending. So the question is as much as you can say, it’s not qualitative — it’s not quantitative question, it’s more qualitative, as much as you could see. How do you — what’s your view of larger companies, those who are working on annual budgets. What kind of discussions you have with them when it comes to how will next year look like? Thanks.
