Professional Services RevenueRevenue of $400.6MM was below the midpoint of guidance, which management said was due to lower-than-expected professional services revenue and a decline in the average duration of self-managed subscription renewals.
Revenue GuidanceManagement lowered the FY24 revenue guidance by $25MM, consisting of $21MM split between these two factors, plus $4MM incremental FX headwind.
Software Spending RisksThe weakness could be attributed to a couple of factors, including a private equity distribution of shares and potential associated selling, along with risks pertaining to slower software spending generally.