Hello, everyone. Welcome to today's Enable Second Quarter 2025 Earnings Call. My name is Seb, and I'll be the operator for your call today. If you would like to ask a question during the Q&A session, please press star 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. I will now hand the floor to Griffin Gere to begin.

Thank you, operator. And welcome, everyone, to Enable Second Quarter 2025 Earnings Call. With me today are John Pagliuca, Enable's President and CEO, and Tim O'Brien, EVP and CFO. Following our prepared remarks, we will open the line for a question and answer session. This call is being simultaneously webcast on our investor relations website at investors.enable.com. There, you can also find our earnings press release, which is intended to supplement our prepared remarks during today's call. Certain statements made during this call are forward looking statements including those concerning our financial outlook for market opportunities and the impact of the global economic environment on our business. These statements are based on currently available information and assumptions and we undertake no duty to update this information except as required by law. These statements are also subject to a number of risks and uncertainties including those highlighted in today's earnings release and our filings with the SEC. Additional information concerning these statements and the risks and uncertainties associated with them is highlighted in today's earnings release and in our filings with the SEC. Copies are available from the SEC or on our Investor Relations website. Furthermore, we will discuss various non-GAAP financial measures on today's call.

Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures. a reconciliation of certain gap to non-gap financial measures discussed on today's call is available in our earnings press release on our investor relations website and now i will turn the call over to john thank you griffin and welcome everyone to our call this morning as we turn the page in the first half of 2025 enables mission of protecting businesses from evolving cyber threats matters more than ever the relentless pace of digitalization turbocharged by AI and a worsening threat environment are putting growing pressure on businesses to stay safe in an increasingly complex world. Enable is built for this moment. Our cyber resilience platform empowers organizations to manage, secure, and recover. Delivering the comprehensive protection needed in today's landscape, the results demonstrate our success. In the quarter, we surpassed $500 million of ARR, growing 14% year-over-year and delivered 32% adjusted EBITDA margin. Enable is delivering profitable growth at scale. Let's take a closer look at why we are a cybersecurity vendor of choice for small to mid-market enterprises. It starts with the breadth of our unified end-to-end platform, which spans three pillars. Unified endpoint management, security operations, and data protection. Each delivers critical outcomes. Our UEM solutions act as the command tower, providing visibility and control across the entire IT estate. Our security operations solutions monitor the environment, actively detecting and stopping threats. And our data protection solutions serve as the final line of defense for data to restore data in the event of a breach or data loss. Just as important, our open ecosystem seamlessly integrates with third-party tools, empowering customers to tailor their environments to their unique needs, an essential advantage in today's fragmented IT landscape. Together, these capabilities provide true end-to-end cyber resilience. This platform approach allows us to deliver more insights, reduce vendor sprawl, and close coverage gaps, Differentiating enable from narrow point solution providers, our end-to-end value proposition is resonating. We saw healthy year-over-year growth in our ARR per device as we broaden our presence across our customers' environments. Key to the value of the platform is the strength of the individual pillars. Our triple-pronged approach carries weight. Each pillar is award-winning, at meaningful scale, and with a proven right to win. This strength shows up in the numbers. Our top 10 new customer deals this quarter included a mix of lands from all three categories. More broadly, our total company's average sales price continues to increase as we gain wallet share. From an individual category perspective, net new ARR growth this quarter was led by data protection, followed by security operation, and then UEM. Let's look at the progress in each area. We will start with Cove, our data protection solution, where we see sustained momentum and traction. Cove now protects over 3 million Microsoft 365 users, and in Q2, recorded both its highest bookings quarter and highest net new ARR quarter ever, excluding the impact from annual pricing and packaging changes. Impressive results. We are pushing forward to sustain momentum. On the product front, the Cove team launched a new smart notification service that monitors all protected devices and proactively flags backup issues in real time. This cuts through the noise, improves visibility, and helps make businesses safer. We also advanced our Linux restore capabilities, which are now in public preview. Expanding our workload coverage to include all major operating systems enables our customers to protect more and set the stage for future Cove growth. Meanwhile, prior innovations are driving results, highlighted by 25% year-over-year ARR growth and our AI-powered enhanced restore capabilities launched in 2024. We also believe that the rising strategic importance of backup and data protection reinforces COBE's relevance and long-term growth potential. According to Gartner's latest Magic Quadrant for backup and data protection platforms, By 2029, 75% of enterprises will use a common solution for backup and recovery of data residing on-premises and in cloud infrastructure, compared with 25% in 2025. With a single control plane and extensive cloud and on-premises workload coverage, Cove is perfectly positioned to capitalize on businesses' desire for a single solution. We saw this in action during a second quarter win. A customer executing an M&A-driven growth strategy was evaluating data protection options to deploy on their newly acquired MSP. We won against two well-known, large-scale competitors by offering the critical features our customer needed with simpler management, a superior price point, and an overall better return on their TCO. The customer trusted Cove with their entire data protection estate, spanning on-premises, cloud, and SaaS workloads, further validating Cove's strength as an all-in-one solution. Notably, an industry peer group recommended Cove to the customer, a great testament to our growing market reputation. The result? A nearly $200,000 ARR deal. Turning to security operations, we continue to gain traction in this important segment. At Lumen, our differentiated XDR and MDR offering is leading the way with healthy ARR growth, reinforcing our confidence in the sizable opportunity ahead. Industry analysts agree. Canalus recently reported that MDR is one of the fastest-growing security service areas, projected to grow 16% in 2025. Yet over half of the surveyed MSPs don't yet offer MDR. We see this as significant greenfield potential. We made meaningful strides this quarter as we moved quickly to capture demand. We expanded our Lumen's integrations with leading ITSM vendors to better support business workflows and enhance our threat detection capabilities to improve response speed and precision. These updates help customers operate more efficiently, while empowering their security teams to counter threats with greater speed and confidence. We believe that our modern approach sets us apart. At the core is our cloud-native, AI-powered SOC, purpose-built to scale. With advanced machine learning delivering strong automation rates, we enable faster, more accurate detection and response. Technology does our heavy lifting, freeing up people for the most strategic work. As a result, threat-hunting activity has increased over 100-fold, demonstrating the strength of our approach. It's a stark contrast to solutions that rely on manual effort and can't match the speed, automation, or accuracy we deliver. Our endpoint protection response solution also delivered steady performance and is a natural complement to our XDR, MDR capabilities. This combination is especially important for customers seeking to unify EDR, XDR, and MDR under a single vendor, a common customer preference. We also made progress in unified endpoint management, highlighted by further development of the new vulnerability management capability we launched in April. Identifying and remediating vulnerabilities is a vexing problem plaguing IT and security teams. The 2025 Verizon Data Breach Report showcases the scale of the issue. Vulnerability exploitation is now the second most common breach vector, responsible for 20% of breaches, a 34% increase from last year. Verizon further found that only 54% of edge devices were fully remediated with a median time to remediate of 32 days, showcasing the practical difficulty fixing vulnerabilities presents even once discovered. The bottom line is vulnerabilities create risk and consume time, and security teams are struggling to find an answer. This is where Enable comes in. By placing vulnerability management into our unified endpoint management solution, We enable a single workflow from detection to remediation, seamlessly bridging the gap between vulnerability insight and patch execution. An elegant solution to a painful problem. Our solution is already deployed across millions of devices and resonating with force in the market. While vulnerability management is a meaningful addition, it's just one part of our broader, feature-rich UAM offerings. Businesses are under pressure to do more with less, And our UEM solution is built for this AI-driven era, automating routine tasks and improving efficiency. A standout customer win demonstrates this well. Our prospect launching and endpoint management business line shows enable for our deep UEM capabilities and robust integration ecosystem. Leveraging our integration with ServiceNow, they built an AI-powered chatbot that deflects a significant amount of level one technician tickets. This drives real operational savings. This deal reflects the strength of our UEM solution and the value of our open ecosystem. Let's now switch gears and discuss our go-to-market motion. Expanding into the broader channel is a key growth initiative for Enable and critical to delivering cyber resilience at scale. We aim to ensure Enable is a top-of-mind vendor, not just for MSPs, but also for resellers, system integrators, distributors, and the full ecosystem of channel providers small and mid-market companies rely on to guide their cybersecurity journeys. With MSPs controlling only a quarter of the $2.1 trillion small to mid-market companies spend on IT, we believe our channel strategy unlocks new markets for Enable and holds a lot of promise. In the second quarter, we built momentum behind this initiative, adding more resellers, strengthening relationships, and enhancing system capabilities. As part of our new channel initiative, earlier this year, we engaged one of the largest and most respected resellers in the UK, a publicly traded firm that works with a broad portfolio of leading technology vendors. Following a sizable deal to Kickstarter relationship, they expressed appreciation for our partner-first approach and how our cyber resilience platform uniquely addresses mid-market customer technology needs. Their feedback reflects the differentiated value we bring to the channel and reinforces our conviction that the mid-market can become a meaningful customer segment for Enable. we're excited to deepen this relationship and replicate the success with resellers globally we expect the foundational work we did this quarter to set the stage for long-term growth and with our reseller pipeline having nearly doubled quarter over quarter we are confident in our ability to deliver on this company growth pillar we paired this foundational work with high impact presence at rsa and infosec europe bringing our cyber resilience message to over 56 000 attendees. We also published the 2025 State of the SOC report, highlighting our unique insights from the front lines of cyber defense. These events and thought leadership pieces reinforce our commitment to protecting businesses everywhere and showcase the strength of our platform to a global audience. That commitment is also reflected in our leadership. We recently appointed Vikram Ramesh as our Chief Marketing Officer. With more than 25 years of cyber security experience, including leadership roles at Mandiant, Google, and Edlumen, Vikram brings a proven track record of building high-impact cybersecurity brands and scaling channel market motions. He is exceptionally well-positioned to advance our mission, execute our strategy, and amplify our message globally. So bringing it all together, we made considerable progress this quarter as we worked to accelerate growth and advance toward a 2028 ARR target of $750 million. Our growth strategy rests on three key pillars. first, driving security success, second, scaling our go-to-market, and third, boosting customer expansion. We are making solid headway across all three. Our cyber resilience platform is resonating, our channel motion is gaining traction, and our footprint within customer environments continues to grow. And with that, I will turn it over to our CFO, Tim O'Brien, and then I will circle back for closing remarks. Tim?

Thank you, John, and thank you all for joining us today. Q2 was another strong quarter for Enable, as we surpassed $500 million of ARR and delivered top and bottom line results above guidance. We executed well against our operational priorities, integrating AdLumen into our cyber resilience platform, establishing our new development center in India, and continuing to build momentum behind our expanded channel motion to unlock the mid-market. As part of our capital allocation strategy, we began executing on our share repurchase program, reflecting our confidence in the business and the opportunity ahead. As we advance our mission to deliver cyber resiliency at scale, we remain focused on growth-oriented investments and disciplined execution. Let's now discuss our results for the second quarter and our outlook for the third quarter and full year. For our second quarter results, total ARR was $513.7 million, growing at 14% year-over-year on a reported basis and 12% on a constant currency basis. Total revenue was $131.2 million, $4.7 million above the high end of our guidance, representing approximately 10% year-over-year growth on a reported basis and 8% on a constant currency basis. Subscription revenue was $129.9 million, representing approximately 11% year-over-year growth on a reported basis and 9% on a constant currency basis. We ended the quarter with 2,540 customers that contributed $50,000 or more of ARR, which is up approximately 16 percent year over year. Customers with over $50,000 of ARR now represent approximately 60 percent of our total ARR, up from approximately 56 percent a year ago. Dollar-based net revenue retention, which is calculated on a trailing 12-month basis, was approximately 102 percent on a reported basis and 101 percent on a constant currency basis. Turning to profit and margin, note that unless otherwise stated, all references to profit measures and expenses are calculated on a non-GAAP basis and exclude the items outlined in the GAAP-to-non-GAAP reconciliations provided in today's press release. Second quarter gross margin was 81.8% compared to 84.7% in the same period in 2024. Second quarter adjusted EBITDA was $41.6 million, $6.6 million above the high end of our guidance, representing approximately 31.7% adjusted EBITDA margin. Unleavened free cash flow was $33.3 million in the second quarter. CapEx, inclusive of $3 million of capitalized software development costs, was $6.8 million or 5.2% of revenue. Non-GAAP earnings per share was 11 cents in the quarter based on 189.3 million weighted average diluted shares. We ended the quarter with approximately $94 million of cash and an outstanding loan principal balance of approximately $337 million representing net leverage of approximately 1.6 times. Approximately 45% of our revenue was outside of north america in the quarter to briefly dissect the quarter roughly half of our revenue outperformance versus guidance was attributable to the positive impact of higher than forecasted foreign exchange rates the remaining revenue outperformance was largely attributable to strong operations with cove delivering record bookings and our newly acquired adlumen security operation solution seeing meaningful adoption across our msp customer base Our beat against adjusted EBITDA guidance primarily reflects the flow through of the revenue beat. Turning to our financial outlook, our guidance accounts for the following elements. We are assuming FX rates of 1.10 for the euro and 1.31 for the pound for the remainder of 2025, along with updates to other currencies. Second, we continue to see a disciplined but healthy spending environment and traction with our top company growth pillars. With that in mind, for the third quarter of 2025, we expect total revenue in the range of $127 to $128 million, representing approximately 9% to 10% year-over-year growth on a reported and constant currency basis. We expect third quarter adjusted EBITDA in the range of $36 to $37 million, representing an adjusted EBITDA margin of approximately 28% to 29%. For the full year 2025, we are raising our total revenue outlook to $500 to $503 million, representing approximately 7% to 8% year-over-year growth on a reported and constant currency basis. We are raising our full-year ARR outlook to $525 to $530 million, representing 9% to 10% year-over-year growth, or 7% to 9% on a constant currency basis. As a reminder, our full-year ARR outlook is on a like-for-like basis as AdLumen was included in our year-end 2024 ARR. We are raising our adjusted EBITDA outlook and expect full-year adjusted EBITDA of $141 to $144 million, representing 28 to 29% adjusted EBITDA margin. We reiterate that we expect CapEx, which includes capitalized software development costs, will be approximately 6% of total revenue for 2025. We also expect our adjusted EBITDA to unlevered free cash flow conversion percentage to be approximately 68% for the full year. We expect total weighted average diluted shares outstanding of approximately $188 to $189 million for the third quarter and the full year. Finally, we expect our non-GAAP tax rate to be approximately 19% to 20% for the third quarter and 20% to 21% for the full year. Now I'll turn it over to John for closing remarks.

Thank you, Tim. Amidst the threat landscape growing more complex by the day, we are delivering the security outcomes that small and mid-market businesses depend on. Our cyber resilience platform is built to win, and our model is proving it. balancing durable growth with strong profitability. We remain confident in our ability to execute and create long-term value. And with that, operator, we will open it up for questions.

Thank you. As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad. And to withdraw your question, please press star 2. The first question is from Mike Seacos from Needham. Please go ahead.

Hey, good morning, guys. This is Matt Kalitrian from Mike Seacos over at Needham. Thanks for taking our questions. Can you provide some more color on the go-to-market traction you're seeing with resellers? And what has been top of mind for Vikram in his first couple weeks in the CMO seat?

Yeah, great questions. And good morning to everyone. So, look, our go-to-market teams are finding a nice rhythm. You know, with the XDR platform now, one of the bigger business model transformations is now we have three pillars to go to market with. And so I think that's accelerating the strike zone. And it's accelerating the strike zone or widening the strike zone, both in our markets that we're direct, but also in the resellers. And so now we have an opportunity when we're talking to a mid-market company or CIO at a mid-market company, or an owner of an MSP business, there's three pillars that we can talk to them about. And that's actually showing a nice bit, both on the NCA motion, our new customer acquisition motion, but also on the cross sell. So we're seeing nice bookings. We saw it last quarter. We continue to see it so far in Q3. And then so we gave you an anecdote on one of the resellers and I'll share with you another. We're now having conversations and we're now in having joint sessions in markets like Germany, where we're having dozens of CIOs in Germany attend and listen to our co data protection story, our XDR story. And we're leaving those meetings with real opportunities from the personas that are going to make the decisions. And so it's a brand new lever or a brand new avenue for revenue for us. So we're pretty excited about it. I think we referenced the quarter over quarter, you know, doubling of the pipeline. You know, reminder, we're on average, you know, $20,000 ASP business. So it's good. We're building it, you know, with six figures, we're building it into it. But and a little bit over time, as we extend both from a market point of view, i.e. more countries, more markets, and then just from a reseller point of view, adding more active resellers, we believe it'll have a nice virality kind of coefficient here and really start to drive a significant part of the business. It'll take a couple quarters, but we're seeing it already, and we're pretty excited about that, especially now where we have the three areas that we can talk to resellers and MSPs about. On the Vikram front, Vikram's at Black Hat today, which is a good indicator as to where his focus is. He's a cybersecurity expert, and he's really excited because he's able to tell a complete cyber resilience story. And so educating the mid-market about who Enable is, we're well known in the MSP market. We're considered a leader in the MSP market, lesser known in the mid-market, and he's out at Black Hat right now really promoting that story. We see others in the data protection space partnering with cybersecurity companies. Here at Enable, it's all of our tech, right? So XDR and data protection, we have the complete cyber resilience platform story for the mid-market, and it's all under one house. That gives us an advantage that makes them more efficient, that makes them more secure. And he's out there really promoting that story and making sure that the mid-market understands where we play, why we have three best-in-class pillars to go into the mid-market. So he's really focusing on building that cyber resilience brand, and he's out there right now at Black Hat doing so.

That's all great to hear. Thank you. And can you remind us where we're at with the optimization and the ASC 606 headwinds associated with moving to annual contracts? Are Are we getting close to seeing a baseline growth emerge here? And as customers are coming up for renewals, are they happy to sign another upfront commitment?

Yeah, I would say if you look at our kind of full year ARR outlook, I would say that that quells any of the 606 or optimization noise that we went through in 2024. So I think that's probably the best marker to look at kind of, I'll call it the best velocity metric for the business would be kind of exit 2025 ARR that quells any 606 optimization or any inorganic impact noise from the Ablumen acquisition as well. And then, sorry, remind me the second part of the question?

Renewals. Oh, renewals.

So, yeah. Yeah. Customers are renewing at a very healthy clip, I would say, coming through kind of the first log of renewals in the first half of the year here in 2025 with the commitment that we put in place last year in 2024. So very willing to recommit and renewing at a clip around 90% or so.

Awesome. Thanks so much.

The next question is from Matthew Hedberg at rbc capital markets please go ahead hey guys this is mike richards on for matt thanks for taking the question here uh you know strong results uh across the board and you know arr accelerated on a constant currency basis um yeah maybe i was just looking for more detail on on the arr guidance um you know is there anything pulled in this quarter that that made results look strong um are we just kind of looking in a conservative back half like is there anything you guys are seeing in the back half that would kind of leave the constant currency guide untouched and then i have a follow-up thanks yeah i can help unpack it i would say there's there's

definitely some fx dynamics at play with with q2 and and the full year if you neutralize any of the fx impact for um between the full year outlook and q2 um the second half is uh from a growth standpoint on ARR is slightly above where it was in the first half of the year. So I know it looks a little bit wonky just due to some of the FX dynamics, but if you neutralize some of that FX impact, second half implies more growth in the first half of the year in our constant currency outlook.

Gotcha. And then, yeah, at Investor Day, we talked about new pricing and packaging bundles coming in the second half. I was just wondering if you guys could give an update there and, you know, how you guys are looking at that, you know, driving more cross-sell across the three pillars. Thanks.

Sure. Yeah. You know, the market, our customer base continues to tell us that, you know, as they look through, they have tech stack fatigue, right? And especially some of the smaller shops navigating, you know, a vendor sprawl where they might have 16 or 17 different vendors is suboptimal. And so where we can bundle that up with a, well, one, a best in kind of a class type of solution, and then help them with their vendor sprawl. And inevitably, when you parse it apart, it's better economics for them as well. So the bundling continues to resonate. I'd categorize it still an experimental phase, right? Where we're experimenting, and we're getting good traction and we continue to lean in a little bit more as we go through the back half of this year and continue to 2026. So all positive from that front.

So the next question is from Joe Vandrick at Scotiabank. Please go ahead.

Thanks for taking my question. John, I think you mentioned half of MSPs aren't offering MDR. Is that true for your customer base? And And how are you educating your MSP customers on the opportunity?

Directionally, we're finding it true for our customer base as well, yeah. So, you know, but you bring up a good point. Part of our, you know, part of our heritage here is that we do a good job evangelizing and educating both the mid-market and the managed service providers as to what they need for their customers to make sure that they're protecting their businesses every But the key part of that is doing it efficiently. And so what we're preaching is to augment, right? A lot of it, some of the MSPs, maybe some of the bigger shops, they've tried to potentially build a SOC themselves, and most have found it to be an upside-down business proposition. And so by leveraging our XDR technology, we're doing a lot of the, our technology is doing a lot of the heavy lifting for these MSPs. We're providing that line of monitoring and defense, and then they can focus on some more of the strategic initiatives. So the guidance to MSPs out there is, hey, augment, leverage a technology provider that can handle the threats and the detection for you and go back to what you're good at and advising your customers. And so then there's a whole spectrum, right? In the XDR, MDR space, there's a bunch of players that have been around for quite a bit that are not necessarily built in the modern cloud architecture, leveraging AI. we're very proud of the level of automation and artificial intelligence that we have in our SOC and that the way that we're detecting, but also responding and giving customers the guidance that they need. What used to take hours to get back to a customer is now taking minutes. And as we know, when we're dealing with threat actors, time is essential, right? And so we're finding the MSPs are really resonating with the offering, one, because of the AI that's infused, but also because we give them the ability to have eyes on glass. And our solution, which is different than other folks, other folks, they look at MDR and XDR as like a black box service. They can't see what's going on inside. Ours is software and software first. So the MSPs can look at the same things that our security experts are looking at, giving them the comfort and confidence that they need.

And so the story is resonating, the tech is differentiated, and we continue to evangelize. and we're seeing more and more opportunities it's by far one of our uh you know one of our faster growing skews from a pipeline and bookings perspective that's really helpful and maybe one for for tim really impressive strength in the the 50k customer ads number what do you attribute that strength to is it at lumen or maybe you called out cove at the beginning of the call Are you landing larger there? I'm just curious, what do you attribute that strength to?

I would probably attribute it to a few different things. You know, we've made a focus in the MSP market to focus on larger MSPs from bringing new customers in. And I would say we're starting to see some of the return on those investments that we made over the last 12 to 18 months or so. Also, the ability for us to cross-sell the portfolio into the base as we execute on that, whether it be through bringing AdLumen into our MSP customer base, continuing to cross-sell Cove into our customer base, landing new co-customers again in that upmarket focus in the MSP segment are all key drivers to that. And then same thing on the AdLumen mid-market front. I would say they land deals above and below that kind of 50K threshold. And I would say it's just been normal course from an AdLumen perspective. So I would attribute it more to probably success in the MSP market for the Q2 results. But I expect mid-market to have impact in this category as well as we build out the channel and continue to bring the full portfolio into the mid-market as we progress through the second half of 2025 and into 2026 our next question is from jason ada from william blair please go ahead yeah thank you good morning guys i just wanted to ask just about the overall health of the um smb it market um what trends are you seeing to kind of give you a sense of um you know

just that that macro element um do you feel like things are stable are they getting any better or worse? That would be my first question.

Sure. Hey, Jason. It's John. So look, I think the trends that we've been referring to the last couple of quarters continue to be those same solid trends in that data protection and security are top of mind. It's a big part of the MSP's growth algorithm, and it's very much top of mind for CIOs and CISOs of mid-market businesses. And so, and then you couple that with a boost in productivity that mid-market companies and MSPs are getting and leveraging, you know, another wave of technology and AI. And IT spend appears to be, I'd say, pretty healthy in our base and what we're seeing based on, you know, our pipeline, talking to CIOs and talking to MSPs. MSPs are continuing to grow. They're continuing to add more services, the need for not just, you know, IT operations, automation, but also security and security operations continues to be strong. So, you know, from our lens, it seems the demand seems to be, you know, as healthy as before. And frankly, as I mentioned before, go-to-market teams are building, you know, a healthier pipeline than they have been in the past couple of quarters. So we're optimistic about the demand there.

Any commentary on the device side, the R&M side?

Yeah, I'd say it's been consistent. So the physical devices, so by the way, we manage and secure and recover a bunch of things, right? So on the device side, I'd say it's consistent. It's relatively what it's been the last couple of quarters, I'd say more flattish, but we are seeing a nice uptick in a lot of the other digital assets m365 users users in general uh virtual machines right these are all these are all uh assets that we manage that there's data on that we're making sure that people are protected and recovering so in in the vm world and in m365 and sas world uh more growth there and in the physical devices that's more of a a flattish type of um trend okay great and then tim for you uh could you give us any comments on the ad lumen contribution um or if you don't want to give us a specific number can you just talk about organic

uh year-over-year growth like kind of what whether that um trended up or you know it's stable yeah i would say the the color is consistent with what we've given historically you know we we expect AdLumen to have about a point of impact on exit 2025 ARR growth. And then kind of mid-period here, you know, we disclose the size of the AdLumen business upon acquisition in the low 20 millions of ARR. So that equates, you know, about 4% or so of impact on overall growth. So I think, you know, that should help you kind of guide you on inorganic impact from AdLumen and, you know quarter two here and quarter three and then year-end quarter four from an AR perspective just due to the velocity of the abdomen business upon acquisition it's adding about a point of growth to the overall equation for the year okay thank you very much you got it the final reminder for any further questions please press star one on your telephone keypad we have no further questions on the call at this time so I'll hand back to management for any

closing remarks.

Thank you all for joining us today and your continued interest in Enable. Enjoy the balance of your summer.

This concludes today's conference call. Thank you all very much for joining and you may now disconnect.