Financial Outlook
The company is providing the following guidance for its fiscal second quarter 2024 (ending July 31, 2023):
- Total ARR is expected to be approximately $3.825 billion.
- Total revenues are expected to be between $880 million and $895 million.
- Non-GAAP operating margin is expected to be between 10% and 12%.
- Free cash flow is expected to be approximately negative $15 million which implies trailing twelve months free cash flow of $785 million.
The company is providing or updating the following guidance for its fiscal year 2024 (ending January 31, 2024):
- Total ARR is expected to be between $4.125 billion and $4.175 billion.
- Total revenues are expected to be at the top-end of our prior range of approximately $3.9 billion (was previously between $3.85 billion and $3.9 billion).
- Non-GAAP operating margin is expected to be between 18% and 18.5% (was previously between 16.5% and 17.5%).
- Free cash flow is expected to be between $805 million and $825 million (was previously between $775 million and $795 million).
A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, stock-based compensation-related charges, including related employer payroll tax-related items, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release.
