EarningsManagement narrowed the FY guidance for EBIT margin, which now implies FQ4 EBIT margin exit of -4% vs prior expectations for positive EBIT margin exiting the year.
Financial PerformanceManagement’s narrative centers around revenue growth reacceleration, but the guidance calls for continued deceleration, from 40% in 1Q, followed by 33%, 28% and 26% in 2Q, 3Q and 4Q, respectively.
SalesReseller survey results through end of June were incrementally negative, largely driven by disruptions from changes in the sales leadership and declining win rates.