James Foster: I think there is, Yi. I mean, one of the things that we see and the new SEC notification requirements are helping to highlight what I call visibility at the board level, making sure the boards understand their security programs, framework they’ve adopted, make sure they understand the notification requirements, kind of the liability now at the Board level for getting this right. The challenge so far, though is, it’s very, very difficult to adhere to that SEC requirement and have full details that fast. For example, if you’ve been compromised or if there’s been an incident, and you’ve got just a few days to provide some level of notification, almost 100% of the time the customers that we work with, you don’t have your arms around the full potential problem set within a few days.
So what happens is you notify that something’s happened and that you’re working on it. And then ultimately, the way this is going to play out in the market, I guess, in my opinion here is everyone’s going to say it’s worse than expected because they are going to set expectations on, hey, we’re looking into this, we’re trying to get our arms around this. And I think very few will come out and say the sky has fallen before they get their real arms around it. So they’ll just say something has happened, we’re looking into it. And when they come back, it will be while it’s large, and this is what it looks like, and this is how it moved around internally.
Yi Fu Lee: If I just move on to for the finance question, right? Can you expand on the SEC disclosure requirement? Because requirements within four days, right? How does ZeroFox help, like, let’s say, decline with the compliance requirement, right, to get the disclosure, right, what they need, the info, the intel, right, to communicate to public in such speed?
James Foster: Yeah. I mean I’ll just point out one example because it’s public. I mean, in general, we can’t comment a tremendous amount on our response deals, but if a client makes it public on their behalf then we have a little bit more leniency. Caesars as an organization, putting their 8-K in Q3 that they had hired ZeroFox to help with their response services. And so that’s a great example of them, an organization with a strong security program has good capabilities to identify and help kick off the response and then pull in trusted third-parties to help and then the 8-K that. And I think that’s an example of where I think regulation could actually help here in the market where they’re being asked to move quickly. And in general, you’re going to have to work with partners to help with that and then disclose what that looks like.
And they disclosed that, again, ZeroFox had been brought in to help the response, notification and protection side of the house. We’re proud of that one.
Yi Fu Lee: Got it. Thanks for that. And then to end on financing my arbitrary financing update question for Tim. So on the balance sheet on cash, right, last update was that you guys could get to free cash flow positive, right next fiscal ’25, right? I was wondering, Tim, if you could help us on any financing raises that you’re anticipating within the next 12 months? And help us with — can you please kind of help us with the free cash flow seasonality? How — is a more modeling question, Tim? And that’s it for us. Thank you very much.
Timothy Bender: Yeah. Thank you. I’ll start maybe in reverse order as far as some seasonality and timing of cash flow. Again, we said it, we believe we’ve got certainly the ability to be free cash flow positive next year. Q1 is always our most challenging quarter. This Q1 was indeed more challenging than most. But in general, Q1 tends to be our toughest quarter from a cash flow generation standpoint, and then we tend to turn around in Q2, Q3, Q4. So I’d expect to see that same trend next year. As it relates to financing, nothing necessarily is planned at this point. I think that’s a larger conversation we started touching on last — at the last call. And kind of we’ll leave it at there for that, and Foster, if you have any other comments on financing?
James Foster: Yeah. I mean, look, we have a convert that matures in roughly 18 months from now, beyond 18 months from now. We’ve just put up the best quarter in company history for the third consecutive quarter. And I think this improved profitability will actually help our optionality, and we’ll show the sustainability of the company that we’ve built. And I think we needed to do some blocking and tackling here the last six months, last couple of quarters around making sure we saw synergies realized here in our financial statements, not just in vision decks. And I think we’ve done those things, which will help us on the financing front. In general, we’re always looking for new investors, and we’re open for business and nine to four every day, Monday through Friday so…
Yi Fu Lee: Thanks for that, Foster and congrats Tim. Thanks for the color.
Operator: Thank you. I’m showing no further questions. I’d like to turn the call back over to Foster for any closing remarks.
James Foster: Thank you, operator. Q3 was another strong quarter for ZeroFox, where, as you heard, we made significant progress on many fronts. We remain excited about the opportunities in front of us and look forward to closing out our fiscal year ’24 on a very strong note. Again, I want to thank everybody for joining us this morning. Have a great day. Cheers, cheers.
Operator: Thank you for your participation. This does conclude the program, and you may now disconnect. Everyone, have a great day.
