I mean these are just increased capabilities that you can now get from a single vendor. I mean, all of these, again, provide for just superior cost consolidation. So we feel we are well positioned to not only continue to grow within the endpoint market, but really do it in a fashion that is a bit more macro resilient. It’s actually something that talks to the existing budget, to the existing spend that they have with their incumbent vendors but only now they can get a modernized platform and obviously reduce the huge amount of risk versus using a legacy vendor. So all these trends they play favorably towards a platform like ours. And I think from there, the routes to expand through the years, the lifetime value we get from these customers kind of with our leading gross retention rate obviously, for us, it’s again creating a dynamic where we can continue and grow.
Operator: Thank you. The next question comes from Jonathan Ho with William Blair. You may proceed.
Jonathan Ho: Hi, can you hear me, okay? Hello.
Tomer Weingarten: Yes.
Jonathan Ho: Okay. So just wanted to, I guess, ask about net retention rates as we start to contemplate the ARR guidance for next year. How should we think about where those will head over time? Thank you.
Tomer Weingarten: Largely, we expect them to stay right around the level that they are at. We do factor into our own internal plans even lower rates of net retention rate. But generally speaking, we’ve seen them be incredibly resilient, very consistent for quite a few quarters now. It’s very clear that customers are opting for more of our modules and capabilities. It’s very clear that node expansion is still out there even though customers are rightsizing to what they need, when they grow, when they need more coverage, when they discover more endpoints, that’s obviously something that results in growth. So we’re quite confident that we can stay at these levels. And as you can imagine, that can contribute or will contribute about 50% of the overall net new ARR that we need for next year.
So, when you factor all of that in, we feel this is a relatively conservative guidance for next year. It’s really built on what we have done this year. We are just looking for a confident way to guide forward in highly uncertain times. And we have chosen to go with that guide. As Dave mentioned, we are pushing as much as we can. We believe we can overachieve that. But right now, we want to provide I think something that we can just go forward with confidence.
Jonathan Ho: Great. Thank you.
Operator: Thank you. The next question comes from Gray Powell with BTIG. You may proceed.
Gray Powell: Great. Thanks for taking the question. So, yes, congratulations on the solid results. And I was just wondering, given macro headwinds, can you talk about the linearity you saw throughout the quarter? And is there anything you can say just on trends that you have seen so far in February and through early March?
Tomer Weingarten: Linearity has been much better than Q3. That’s the one thing I can say. I think part of it is also our elevated execution and our ability to really adapt quickly to how sales cycles are managed. So all-in-all, we have seen pretty normal linearity, much in line with what we see in typical seasonality. And same goes for Q1 thus far. I think we are looking at really just seasonal linearity right now. Again, a lot of what we can control, we are now doing a better job in controlling and that results in just in line performance to what we expect. Predictability is higher, and we feel pretty good about linearity quarterly and also through the year.
Gray Powell: Okay. Thank you very much.
Operator: Thank you. The following question comes from Hamza Fodderwala with Morgan Stanley. You may proceed.
