Ladies and gentlemen, thank you for joining us, and welcome to the Enable First Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Griffin Gere, Investor Relations. Please go ahead.

Thanks, Operator. and welcome everyone to Enable's first quarter 2026 earnings call. With me today are John Paliuca, 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 our 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 GAAP to non-GAAP 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. Today, we'll review our first quarter results, discuss key trends we're seeing through recent industry engagements, and highlight how AI innovation is tangibly expanding our software opportunity. We will focus particularly on our AI innovation, where we're automating work historically delivered through labor-intensive services, helping organizations operate more efficiently and securely, while also growing our TAM. This progress matters now, as advancements and frontier models of fundamentally rewriting the threat landscape, compressing response times for defenders, and empowering attackers to exploit vulnerabilities at unprecedented speed and scale. We believe our end-to-end cyber resilience platform is purpose-built for this moment, positioning and able to lead as cybersecurity reaches an inflection point. Let's jump right in. Starting with the quarter, our results were strong. First quarter ARR was $548 million, growing 8% year-over-year in constant currency, and adjusted EBITDA margin was 27%. Quarterly gross and net revenue dollar retention both improved quarter-over-quarter and year-over-year, with trailing 12-month net retention now at 106%. Let's walk through the drivers of that performance. First, we continue to see momentum upmarket. The number of customers with over $50,000 of ARR grew by 13% year-over-year, and this cohort now represents 62% of Enable's total ARR. In addition, customers with over $100,000 of ARR represent 41% of our annual recurring This upmarket progress is further exemplified by our selection as Manchester City Football Club's official cybersecurity partner. As the club operates at global scale on the field, Enable protects its critical data and systems, securing its digital environment off the field. The partnership underscores our ability to serve complex, high-profile organizations. More broadly, given the stronger retention in our upmarket cohorts, we believe our success in this segment provides a solid foundation for future growth. Second, our channel expansion strategy is working. Four of our top five new customer lands in the quarter, including the Manchester City deal, were through value-added resellers or VAR channel. With an established MSP motion that counts 25% of CRN's top 150 MSPs as customers and our scaling VAR presence, our broad channel footprint enables us to capture demand across the market. Third, the depth and breadth of our platform is resonating. Strengthening cross-sell and up-sell underpinned improvement in both gross and net retention As customers realized value in expanding and consolidating with Enable From a category perspective, security operations and data protection continue to outpace total company growth As customers prioritize advanced remediation and recovery capabilities in the face of rising cyber risk Reflecting on the quarter, the business executed well and our strategy delivered strong results let's now switch gears and discuss key observations from recent industry engagements during the quarter we engaged across the ecosystem through our annual customer conference in power a major industry event such as rsa and ongoing dialogue with third-party research firms one major takeaway is that we believe cyber security continues to experience strong secular tailwinds we are consistently hearing from customers that the worsening threat environment and rising IT complexity, a driving increased need for stronger cybersecurity solutions. This sentiment is reinforced by our internal data and third-party research. In our 2026 State of the SOC report, which is informed by telemetry and frontline response data from Enable SOC, we observed an alert every 30 seconds. We also saw a dramatic rise in perimeter-based attacks, with 50% of attacks bypassing endpoint controls entirely. manual triage approaches are not able to keep pace with this scope and velocity emphasizing the need for modern machine-driven defense industry research firm futurum reported a similarly challenging attack environment in their 2025 cyber security global enterprise decision-making survey report futurum highlighted that 46 percent of organizations surveyed experienced more than three significant security incidents over the past year we do not see these dynamics abating, particularly as advances in AI continue to lower the barrier to entry for increasingly sophisticated cyber attacks. Together, these factors give us confidence that our mission to protect businesses from evolving cyber threats is underpinned by strong market demand. Another takeaway is that customers are struggling to balance the need for powerful layered defense with practical constraints, such as managing vendor sprawl, staffing challenges, and budget limitations. This pain point validates our platform strategy. Spanning unified endpoint management, security operations, and data protection, our platform enables customers to efficiently manage complex IT environments, detect and stop threats in real time, and safeguard and recover critical data. We deliver coverage across the entire lifecycle, before, during, and after an incident, helping customers stay secure while operating efficiently. We are also hearing strong conviction that AI is a meaningful growth driver for MSPs. Our conversations at our customer conference in Power reflected a broadly bullish sentiment, improve efficiency, and create new revenue streams for MSPs. While adoption is still early, customers are clear that they want a trusted partner to help them navigate this technological wave so they can focus on operating their businesses. In summary, our industry engagements reinforce our view that industry demand is strong and increasingly favors AI-powered, integrated platform-based approach. This brings us to our innovation and how our software is expanding our opportunity by automating work historically delivered through services. Our platform is rapidly evolving from a system of record to a system of action, increasingly completing tasks previously handled by technicians. This evolution unlocks significant economic opportunity. Industry analysts such as Omdia estimate annual security services spend at about $200 billion, roughly twice the size of security software spend. We see a similar labor-heavy cost structure within our MSP customer base. Our fieldwork indicates MSPs operate at approximately 10% EBITDA margins, with a sizable portion of their cost structure composed of labor. As our intelligent software completes workflows historically owned by labor, we help our customers operate more efficiently and improve margins, while expanding our monetization surface from software budgets into a much larger labor-driven services opportunity. A concrete example helps illustrate the opportunity we are driving. Technicians are the revenue engine for MSPs. The more IT assets, including AI, that each MSP technician can manage, the more revenue an MSP can generate. The challenge is that technicians have practical limits. A common industry benchmark is roughly one technician for every 200 devices. This creates a growth sailing in the structurally tight IT labor market and pressures MSPs' profitability, as they must continually hire additional technicians to support more customers. our aim is for our software to improve that ratio empowering a single technician to manage 500 a thousand or even more i.t assets delivering this creates a win-win for our customers and enable our customers can scale their businesses without linear increase in labor costs and we can gain market share as msps consolidate around platforms that can help them grow their businesses more efficiently. Importantly, this is not a future state. We are delivering progress today. In UEM, we recently introduced Enzo, our AI workflow assistant, and our Custom Model Context Protocol, or MCP server. These advancements mark an important step forward in AI-driven IT operations. For certain tasks, Enzo delivers up to 70% faster IT operations by enabling teams to interact with their environments using natural language and agentic workflows. Our MCP server goes a step further, securely connecting external AI tools like Claude, ChatGPT, and Microsoft Copilot directly to live operational data inside enables UEM. This means AI no longer just tells customers what's wrong. It helps fix it real time with the control and governance our partners require. Together, these capabilities are empowering IT teams to move faster, reduce manual effort, and act directly within the environments where they already work. This progress directly improves the technician-to-manage-device ratio we discussed earlier. UEM's value proposition is showing clearly an execution. Six of our top 10 new customer lands flowed through our UEM solution. A standout example is one of the fastest-growing quick-service UK restaurant brands that was looking for a trusted partner to ensure the digital operations worked seamlessly. They deployed our UEM in late 2025 across 100 locations, gaining real-time visibility into the devices, automating routine fixes, and significantly reducing downtime. We recently built on that success, signing their U.S. group and expanding the relationship significantly. We are also automating historically manual intensive work in data protection, where we recently introduced disaster recovery as a service, or DRAS. We are eliminating the need for customers to manage backup infrastructure themselves, reducing cost, time, risk, and operational headache. This shifts backup management from a labor intensive activity to a software-led capability. Beyond efficiency, DRAS meaningfully strengthens customer security posture. In the event of data loss, businesses can near instantly recover critical systems, minimizing their downtime and maintaining their operations. We also expanded our anomaly detection capabilities, which help identify changes to backup environments. With threat actors increasingly using identity-based attacks to steal credentials and target backups from inside the organization, including altering retention policies or deleting servers, This advancement has real impact. Building on that momentum, we are excited about the planned addition of Google Workspace backup coverage later this year. From a broader perspective, we continue to see durable demand drivers for data protection. With time to exploit turning negative and adversaries exploiting vulnerabilities before patches exist, the criticality of our ability to protect and restore data is heightened. And as we look ahead to a world with agents owning more workloads for businesses, the possibility of agents making costly mistakes also rises. We see the need to effectively undo agent mistakes and restore operations to a clean prior state as a potential demand catalyst for a data protection solution. Our execution and value are showing up in the numbers. Data protection has now surpassed 3.5 million Microsoft 365 users and led our net new ARR growth in the quarter. Finally, in security operations, we are extending the same system of action approach into one of the most labor-intensive areas of cybersecurity. Businesses are facing more complex attacks, and Enable is helping them operate, contain, and scale security without standing up their own stock. Our security operation solution is a system of action at its core, as AI handles the bulk of our threats automatically. This is a critical differentiator. With breakout time shortening to minutes, the ability to neutralize threats in real time could be the difference between a contained event and a successful breach. Customer count has nearly doubled since the second quarter of 2025, reflecting our traction here. A recent customer win demonstrates the solution in action. A compliance-focused MSP serving regulated industries was facing challenges managing a fragmented security stack spanning multiple EDR, MDR, and SIM tools. We standardize their security operation, replacing multiple legacy providers with a unified, scalable model, driving ARR of nearly $500,000. Importantly, AI reinforces the role our platform plays in a genetic world. From an operating standpoint, AI is embedded into our platform, and we are deeply embedded in our customer environments and workflows. workflows. This positions us to serve as a control plane, to govern and secure agents as they become more prevalent across their IT and security environments. Customers can access AI where they already operate. We pair that accessibility with a technical experience built on proven infrastructure, extensive data, deterministic workflows, domain context, and rigorous compliance standards. From a demand perspective, we see AI increasing both the volume and severity of threats, while also expanding the amount and criticality of data that must be protected. These forces directly drive the need for our solutions. And our trusted brand and established go-to-market further positions us to translate innovation and demand into real-world adoption. To close, we're executing with discipline as we pursue the large and compelling cybersecurity opportunity. We believe AI is expanding our software opportunity by enabling us to automate more workflows and reinforcing the critical role we play in helping customers navigate a more complex and hostile digital environment. With that, I'll turn it over to Tim and then circle back for closing remarks.

Tim? Thank you, John, and thank you all for joining us today. Our first quarter performance reflected the execution drivers John discussed, including continued upmarket momentum, strong contribution from both our MSP and VAR channels, and expanding platform adoption. Our innovation is also broadening the scope of what our software can deliver, unlocking significant opportunity as we automate work historically delivered through services. From a strategic and capital allocation perspective, our focus remains investing behind durable demand for cybersecurity solutions while delivering a robust financial profile. Before diving into the results and outlook, I also want to share perspective on how we believe our business is positioned for growth in an increasingly agentic era our revenue model is diversified we have meaningful monetization across data growth servers and cloud assets alongside more traditional drivers such as users and devices we believe this diversified exposure powers multiple paths to growth looking ahead we see a significant new monetization opportunity as customers increasingly adopt agents and other non-human identities across their environments. As these new IT assets introduce requirements around security, governance, and resilience, we believe we are well-positioned to help customers secure, govern, and back up these new IT assets. At the same time, we intend to continue innovating by delivering our own agents, building on our existing platform capabilities, and system of action. Taken together, we believe these dynamics reinforce the durability of our model and create additional long-term growth opportunities as the market evolves. I'll now walk through our first quarter results, provide additional detail on the drivers of our performance, and discuss our outlook for 2026. First, let's discuss our results for the first quarter. For our first quarter results, total ARR was $548 million, growing at 11% year-over-year on a reported basis and 8% on a constant currency basis. Total revenue was $134 million, $2 million above the high end of our guidance, representing approximately 13% year-over-year growth on a reported basis and 8% on a constant currency basis. Subscription revenue was $132 million, representing approximately 13% year-over-year growth on a reported basis and 9% on a constant currency basis. We ended the quarter with 2,710 customers that contributed $50,000 or more of ARR, which is up approximately 13% year-over-year. customers with over $50,000 of ARR now represent approximately 62% of our total ARR up from approximately 58% a year ago dollar-based net revenue retention which is calculated on a trailing 12-month basis was approximately 106% on a reported basis and 103% on a constant currency basis approximately 46% of our revenue was outside of North America in the quarter turning to profit and margins note that unless otherwise stated all references to profit measures and expenses are calculated on a non-gap basis and exclude the items outlined in the gap to non-gap reconciliations provided in today's press release first quarter gross margin was 80 compared to 81 in the same period in 2025 first quarter adjusted ebitda was 37 million dollars representing approximately 27 adjusted EBITDA margin unlevered free cash flow was 22 million dollars in the first quarter capex inclusive of three million dollars of capitalized software development costs was four million dollars or three percent of revenue in the first quarter we ended the quarter with approximately 118 million dollars of cash and an outstanding loan principal balance of approximately 399 million dollars representing net leverage of approximately 1.8 times Non-GAAP earnings per share was $0.09 in the first quarter, based on $189 million weighted average diluted shares. Turning to our financial outlook, which assumes FX rates of 1.17 for the euro and 1.34 for the pound. For the second quarter of 2026, we expect total revenue in the range of $137.5 to $138.5 million, dollars representing approximately five to six percent year-over-year growth on a reported basis and four percent on a constant currency basis we expect second quarter adjusted ebitda in the range of 39 and a half to 40 and a half million dollars representing an adjusted ebitda margin of approximately 29 as a reminder revenue growth is impacted by the timing and magnitude of on-premise deals and related revenue recognition dynamics, and we continue to view ARR as the best velocity metric for our business. For the full year 2026, our total revenue outlook is approximately 554 to 559 million dollars, representing approximately 8 to 9 percent year-over-year growth on a reported basis and 7 to 8 percent on a constant currency basis. Our full year ARR outlook is 581 to 586 million dollars representing eight to nine percent year-over-year growth on a reported and constant currency basis we expect full year adjusted ebitda of 167 to 171 million dollars representing an adjusted ebitda margin of 30 to 31 percent we are raising our unlevered free cash flow outlook and expect our unlevered free cash flow to be approximately 116 to 120 million dollars we expect capex which includes capitalized software development costs to be approximately five percent of total revenue for 2026 we expect cash interest payments of approximately 27 million dollars assuming interest rates remain in line with current levels we expect total weighted average diluted shares outstanding of approximately 189 to 192 million for the second quarter and 188 to $192 million for the full year. Finally, we expect our non-GAAP tax rate to be approximately 24% to 27% for both the second quarter and the full year. Now, I will turn it over to John for closing remarks.

Thanks, Tim. We delivered another quarter of consistent execution with solid ARR growth, strong margins, and practical AI innovation. As cyber threats continue to evolve and agent adoption grows, We remain focused on helping our customers prevent incidents, recover quickly, and operate with confidence, while delivering durable value for our shareholders. And with that, Operator, we'll open the line for questions.

We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Please stand by while we compile the Q&A roster. Your first question comes from the line of Mike Sikos with Needham and Company. Your line is open. Please go ahead.

This is Matt Galitrion for Mike Sikos over at Needham. Thanks for taking our questions, and great to see the uptick in growth and retention. I wanted to dig in on the revenue beat was a bit more modest than we've seen over the last couple quarters, and it didn't flow through to EBITDA margin or the full-year guide. Can you give us some color on what you're seeing in the market in terms of sales cycles and linearity as well as how that influence guidance construction?

Sure. Hey, and thanks for the question. This is John. I'll talk a little bit about sales cycles and I'll pass it over to Tim on some of the compare. Look, as we continue to go up market, we are seeing a little bit of a lengthening of the sales cycle and a little bit more of scrutiny around the ROI. I think some of this is a natural expectation. We're now landing deals. We referenced one or two during the call, a $500,000 ACV deal. We're seeing more and more six-figure deals. We're seeing multi-year seven-figure deals. And as you go up market, you'll start to get requiring CEO sign-off. And actually in some cases, we're starting to see board level sign-off. So as you're going up market, we're starting to see a little bit of a lengthening of the sales cycle. and overall, I'd say a little bit more of a scrutiny on the ROI. And frankly, we feel we're in a good position with that. We pride ourselves on delivering really strong TCO across the portfolio, right? And in Cove and our data protection, it's the software, but it's the labor. And so as there's more scrutiny on ROI across the landscape, we believe we're well positioned to win in that category because it is one of our strengths. How do we allow MSPs to do more with their dollar, both from the software point of view and from the labor point of view. So I'd say that's the one trend that we're keeping an eye on. And I think it's somewhat expected as we continue to go up market.

Okay, great. Thank you for the color there. And then you mentioned agent mistakes as a demand driver, which is extremely topical, following reports of the rogue pocket OS agent that leads production database and backups. have you seen a noticeable uptick in demand or initial conversations following like incidents like this sound like it's becoming more more prevalent sort of as you alluded to or is there any other color you can provide on the data protection growth during the quarter it's much more top of mind and i think there's a realization across the landscape that the need to recover and the need for business resilience and continuity in the world of the sygentic era is going to become

more and more top of mind. So if you think about backup in general, the last couple of years, it's been dominated by this cyber security bit, right? Ransomware or attacks from threat actors and the ability to back it up. But right along for a long time, there's also friendly fire. In other words, if an employee unintentionally or intentionally deletes a bunch of data, well, now we have all these agents in some state, in an autonomous state, that if not govern the right way, have the same ability to go delete data. And so I think there's a realization that this will happen. This could happen across small organizations or large organizations. And the ability to get back up and running is top of mind. Frankly, that's why we pitch business resilience, not cyber resilience. That's what we know when we're talking to our MSPs and we're talking to mid-market companies and small medium enterprises, what they're really worried about is avoiding disruption. And if there is disruption, how quick can we get back up and running? That's why we're really excited about Drafts. Drafts provides an immediate failover or near-immediate failover. So if something happens via threat actor or friendly fire, or because an agent goes rogue on you, you have the ability to failover and keep your business going. And so all of these things are creating a bunch more of demand. And there is, I'd say, a realization across the industry that this is more and more of a real thing as agents continue to proliferate across the IT environment.

Awesome. Thanks so much.

Your next question comes from the line of Jason Ader with William Blair. Your line is open. Please go ahead.

Yeah, thank you. Good morning. A couple of things. First, on the macro environment, John, can you talk about any impact? Has it changed given the situation in the Middle East, the supply chain tightness going on out there?

In Q1, did you see any kind of variance from what you've seen throughout 2025 on the macro front? hey jason uh thanks for the question you know as it relates to some of the geopolitical issues no we're not seeing we're not seeing any any uh slow down from any geopolitical issues we are we are very international um a good amount of our businesses in the uk a good amount of our businesses in western europe uh but no we're not we're not really seeing any impact from what's going on uh you know related to what's going on in iran okay all right and then um tim for you just Can you talk about the, I guess you've had a two-point NDR improvement over the last several quarters.

Can you just talk through what is driving that improvement?

Yeah, so on the NRR, Jason? Yes. Yeah, so on the operational front, a lot of it's on the heels of the execution we've had with cross-selling NDR into the customer base. That's continued to be very successful, and demand remains very healthy from that perspective. We also have some benefit from FX on the NRR rate as well. So the combination of those two things are the key drivers of the NRR improvement.

Gotcha. And then I guess last thing for you, John, what's the number one thing you want people to take away from the sprint?

Yeah, look, I think the number one thing is that we're really well positioned in this agentic era, and that's not a future state, that's a now state. We have, we've introduced Enzo, which is an AI assistant in our UEM offering, which is really going to take a lot of the high volume operational work off the load of our technicians. And this is our first, really, or our continuation of turning labor into software. and we're excited about that and we plan to do it and we are doing it across all three fronts. We pride ourselves on being the platform of choice for MSPs for before the attack, during the attack and after the attack and we're layering in an agentic technology to take the labor off of our MSPs, making them more efficient, making them more profitable and in turn, we expect better GRR, better NRR and being more of a critical piece of the MSP in the internal IT departments go forward. And the best way of doing that, frankly, is to make sure that AI is helping them run their business and driving the efficiency. And we believe we're well positioned there.

Thank you.

Thank you for your question so far. We will now go to the next in queue. Your next question comes from the line of Joe Vandrick with Scotiabank. Your line is open. Please go ahead.

Thanks for the question. John, can you talk about if you're seeing frontier AI side developments like mythos and gpt 5.5 cyber changing customer urgency around enables core products i'm thinking especially around the automated patching um and maybe endpoint but but backup and recovery as well um are you seeing that show up um in pipeline or or maybe even just in customer conversations?

Hey, Joe, definitely in customer conversations. I wouldn't say it's necessarily showing up in pipeline. Look, patching and vulnerability management is a fundamental layer in cyber resilience and in overall business resilience. And so we've been preaching that for a while. I think it just makes it more top of mind and folks need to make sure that they have a level of autonomous patching and vulnerability management, regardless of the environment. it. And as it relates to backup, I think I brought this up earlier with the previous call from Mike and his team. It just provides another tailwind as to the use case, why you need to be able to back things up and more importantly, recover and recover in a near time way. So I think it's really just driving a lot more conversation and awareness across the industry. But by and large, my MSPs that are in the upper quartile, they've been practicing this layered security approach. we've been helping them with that layered security approach. Again, this is why we think our best of breed platform approach is the right one for our customers. And because it helps tie in together and drive a lot more efficiency before the attack, during the attack, and after the attack, whether it's agentic or not. So it's definitely making some of these conversations that might have been out of vogue, more in vogue.

But, you know, and that's overall good for the community, good for the industry and good for enable yep great makes sense um and maybe one tactical one for tim um how should we think about net new arr for the remainder of the year um is there any commentary that you can provide that can help us understand the trajectory throughout 2026 yeah we we touched on slightly last quarter um there was gonna be more more back half led than than front half led, more so due to some of the new offerings that we're bringing to market throughout the course of 2026.

And that's specifically more so on the data protection side with DRAS and Google backup that John touched on.

Okay, great. Thanks, guys.

Your next question comes from the line of Eric Suppager with B. Riley Securities. Your line is open.

Please go ahead. yeah thanks for taking the question and apologize if this was asked i'm balancing a couple calls but just curious has the developments with anthropic and mythos highlighting new or highlighting zero day attacks has that changed your customer behavior in terms of the way they're using able to do patch management and trying to move forward on more of an accelerated path to implementing patches in response to kind of a threat landscape that's getting more visible.

Eric, now, we talked about this a little bit before. What it's really done is just, I think, making patching and vulnerability management, which is a fundamental layer in cyber resilience, more top of mind overall for the industry. But look, an internal IT department or an MSP who is established that is growing their business, that practices the right proper layered security, that is driving more of a compliance forward type of business, is executing on these areas already. And so it really just puts our solution more to the center of what it needs. And that's why, again, we believe the way that we're positioned for before the attack, and we talk about before the attack, that is patching, that is vulnerability management, that is monitoring and managing. And during the attack with our threat hunting and our XDR, which is AI infused, and then of course, recovery, if you need to get things back up and going, we believe that's the right formula for internal IT departments and MSPs. And so tying these all together and adding an agentic layer that takes away from some of the high volume operational work from a technician, that's the right formula. Because at the end of the day, what AI will also do for the bad guys is accelerate their speed and their volume for the threats. And so we need to be able to give our customers the ability to fight fire with fire and provide them AI-infused or AI-led technology so they can keep up with the speed. Often, the human is the bottleneck, and it's our job here at Enable to give them the software so it's not a labor burden, but it's on technology to, one, keep their customers safe and also drive their efficiency. We mentioned in the prepared remarks, you know, an average MSP has an EBITDA of 10%. And a lot of that's because of the labor and on the high volume mundane tasks. And as we usher in the AI technology, our hope is to really break that linearity in the model, number one, to help them improve their EBITDA, but also be able to make sure that they're thwarting off any threats as a result of some of the, you know, AI in the wrong hands type of thing. And so all of this, frankly, is pointing, I think, to an area where cybersecurity will see a tailwind and it's making it more top of mind.

Very good. Thank you.

As a reminder, if you would like to ask a question, press star one to raise your hand. Our next question comes from the line of Keith Bachman with BMO. Your line is open. Please go ahead.

Hi, guys. This is Adam on for Keith. Thanks for the question. I wanted to circle back to the new products and ask that, you know, now that disaster recovery and Enzo are formally launched, what are adoption trends and uptake there relative to your prior expectations? And then inclusive of those, as well as the Google Workspace launch expected later this year, are you guys embedding any expectations into the guide for revenue or ARR? Thank you.

Thanks for the question. And it's good. That way I want to clarify. So DRAS is in limited preview right now. It's in customers' hands. We'll do the full launch a little bit later on in the back half of the year. To Tim's point, that's why we have the ARR building more to the back half of the year. It's early days. I'm happy to report that. So far, so good. We're building the pipeline. We have customers in preview. The experience so far, again, it's early days, has been really positive. and so we're excited there. On Enzo, it's also promising. Now, in Enzo, we're not going to directly monetize this in this first phase, but what we're seeing is MSPs coming back saying, hey, that saved me hours. You're improving certain tasks that I'm doing by 70%, and the feedback has been good. That being said, the use cases are limited right now, So our plan is to continue to expand those use cases so we continue to get some of those reviews and savings from the labor. But so DRAST, just to be clear, that one will be directly monetizable. Enzo, in its initial phase, it's really going to be about helping the customer experience, driving our GRR, and helping them improve their profits as well. And then we'll layer in co-workers and other monetization paths as we continue on the agentic lane. As it relates to Google, that's more to the back half of the year. And we actually have customers in the queue and doing some limited preview there. But because of where that sits in the year, we're not necessarily baking that in into our financial plan just yet, just because that sits a little bit closer to the back half of the year. But good question. And look, this is also DRAS and backup for Google are the top two areas that people were requesting for backup and data protection for the last couple of years. And just as a reminder, as it relates to data protection, this will help us improve our win rate now that we have these offerings. It will help us with the expand, of course, because we'll be able to cross sell and it should help us with the GRR as well, because now we have that one complete offering that an MSP is looking for. So we're cautiously optimistic. COVE continues to be a fantastic offering, and our data protection area is our largest ARR area, and so we expect this to just accelerate the data protection story.

Got it. And just to follow up, if I may, I just wanted to ask about packaging and pricing changes. I believe you previously mentioned there's going to be a one- to two-point net benefit for FY26. Is that still the expectation?

Uh, yeah, I would say it's probably closer to the one, but yeah, it's the, we're still expecting to get a slight benefit from, from pricing and packaging, um, overall on the There are no further questions at this time.

I will now turn the call back to CEO John Pagliuca for closing remarks.

Thank you everyone for joining enables quarterly results. We'll see you next time.

This concludes today's call. Thank you for attending. You may now disconnect.