James Foster: Yes, I appreciate the contextual questions. Thanks for the follow-up a longer detail. Maybe I’ll answer slightly differently, I mean one of the things in our earnings call day is kind of maybe renewed focus or a first time disclosed focused on our models right. And we said that in general new customers that signed up with ZeroFox in Q2 averaged about three modules. And then we spend a little bit of time talking about a couple of customer purchases that had eight or nine modules. So, I think there’s a really interesting opportunity for us, continue to make sure that our customers adopt the full breadth, and capability set of our platform. And we’ll spend time there in the second half of this year, really making sure that customers adopt the platform, because ultimately, we fundamentally believe, and we’ve got the metrics to back it up that when you adopt more of our platform, you are better protected, and the results are improved.
Yi Lee: Okay. And then the last one is for Tim. On the financial side, obviously, you guys reached free cash flow positive about a year ahead of our schedule. In terms of like the puts and takes to make this sustainable. What are they like? Like can you give us – is it better cash collection? What’s driving this upside we’re seeing about a year earlier than expected. And for fiscal ’25, did you mean that like fiscal second half, you are free cash flow positive, but first half is more on the negative side? And that’s it for us? Thank you from the current team.
Tim Bender: Yes. Listen, I think the basic answer is not so – maybe exactly. It’s just really the model is working as we scale. Certainly, acquisition of LookingGlass has helped as we picked up some solid revenue with that. But I think it’s really a scale factor as you start to see our ARR is right about $100 million, and we’ll cross that in Q3. So it’s model scale in that regard. And then I think as far as ’25, you’re spot on. We do think, and you see in our script, and that there is maybe a little bit of volatility in our working capital throughout the rest of this year. But once we get into the second half of the year, I think some of the timing of working capital between our ARR collections mitigates, and we’re into a steady free cash flow position.
Yi Lee: Makes sense. Thanks very much. Tim and Foster. We’ll catchup soon. Thanks.
Tim Bender: Thank you.
Operator: Thank you. Our next question comes from Jonathan Ruykhaver with Cantor Fitzgerald. Your line is open.
Jonathan Ruykhaver: Yes, thank you. Good morning. So Foster, those deals that you cited with eight to nine modules out of the gate, were those deals that had been in the pipe for six to nine months or so? Or were they more reactive responses to a breach of an external nature? And maybe broadly, you can just talk about how you think these external issues could impact sales cycles looking out through the fiscal year?
James Foster: Yes, I heard a couple of things, Jonathan. A couple of examples I gave, what I call broad adoption of the platform, multiple pillars, multiple modules propeller and what I call long-term relationship, right? Not a near-term reactive response only for those eight or nine modules. Like in general, we’ve got about a few modules per pillar of our platform. So when I look at customers that are adopting six, seven, eight, nine modules that tells me right off the bat that they’ve adopted the platform, right? They’ve adopted multiple pillars. They understand the consolidated vision and approach that we have and they’ve gone all in on ZeroFox. When I see a customer in general that’s bought one or two modules, that means one or two things quickly.
It means that they’ve got a particular use case that’s causing them some pain and they want to alleviate that pain as fast as possible. That could be because they’ve had an incident. That’s because they maybe had an issue inside. Maybe they wanted to replace a niche provider, but there’s opportunity for us to then sell the platform vision and maybe earn our seat at the table when someone starts off with just a couple of modules before they move into a full platform. So that’s – maybe that answers part of the question. I heard kind of how we’re thinking about the growth in the second half of the year. I think it’s what yield [ph] I mean we’re seeing an adoption acceleration for large six-figure ARR customers. And I think that just proves that our – the problems that we’re working on continues to grow.
I’m a firm believer in cyber. If your ASP is going up and your adoption and your large customers is going up, you’re working on a problem that matters. And I’ll tell you, external cyber matters. Every CECL continues to be worried about getting attacked halfway around the world by nation state actors by cyber-criminal groups, they’re less worried about an insider threat issue. I remember, 15 years ago, that was kind of top worry, that’s not the number 1 we’re earn more. And external attack is what’s keeping these guys up at night, and we think we’re in the right place at the right time.
Jonathan Ruykhaver: Yes, it’s not like what you’re saying is the demand trends are pretty strong across the entire platform. And so I guess, along those lines, how do you – how do you see the sales organization equipped to sell across protection intelligence disruption? Are they fully up to speed on handling each one of those pillars? Or is there work that you need to do there to kind of drive that execution of a more platform sale?
James Foster: I don’t think we’ve ever done, Jonathan. I mean I’m a believer in consistent training and consistent enablement. I mean, the analogy here we used some of the best athletes or the best performers of all time, still trained daily. And so even if you reach the peak and what you do, you’re the best quarter back to ever play, you’re the best ever play your sport antennas, you still practice daily to get better. And I think our team on our go-to-market side of the house, we think is best-in-class for our space, but that’s because we’re – unless we focused on continuing to improve them. I would say, though, our efforts in the channel always lag our internal sales team. So there is certainly more we can do there. We’re still the baby on the block, right?
We’re still the smallest cyber company out there. We’re still the last one to go public. And so, we don’t have the footprint of some of the other peers that we have out there that’s envious to us right now. And so, we’ve got to continue to build brand awareness, and our channel continue to enable the channel, and make sure they understand our differentiated platform and approach.
Jonathan Ruykhaver: Makes a ton of sense. Thank you.
James Foster: Thank you.
Operator: Thank you. There are no further questions at this time. I’d like to turn the call back over to Foster for any closing remarks.
James Foster: Thank you, operator. And as you can tell, we had a record Q2. We remain excited about the opportunities in front of us for the second half of the year. So again, thank you for joining us on the call this morning, and have a wonderful Wednesday. Cheers.
Operator: Thank you for your participation. This does conclude the program, and you may now disconnect. Everyone, have a great day.
