Financial Outlook

We are increasing our full year bookings outlook to $1,822 - $1,832 million, or 14-15% y/y growth, compared to previous guidance of $1,802 - $1,822 million, or 13-14% y/y growth.
This high end of this updated outlook reflects the expectation that 2H bookings will accelerate to 17% y/y, compared to previous guidance of 16%, and y/y bookings growth to exit the year at 18%.

We are also updating our full year revenue outlook to $1,757 - $1,764 million, or 13% y/y, compared to $1,747 - $1,761 million previously.

We expect total revenue in Q4'24 of $457 - $464 million, or 13-15% y/y growth.

For the full year 2024, we now expect non-GAAP total gross margin of approximately 69%, slightly up from the 68-69% previously anticipated with non-GAAP Business Solutions gross margin still to exceed 30%. We also now expect non-GAAP operating expenses to be approximately 49% of revenue for the full year, down from approximately 50% previously.

As a result of our increased bookings expectation for the full year coupled with stable operating costs anticipated, we now expect to generate free cash flow, excluding headquarters costs, of $483 - $488 million, or 27-28% of revenue, in 2024, up from $460 - $470 million, or 26-27% of revenue.

The high end of our increased growth and profitability expectations would allow us to exceed the Rule of 40 this year, a full year ahead of our original plan presented to shareholders. Even with the earlier-than-expected achievement of this target, there is still room for further growth acceleration and ample margin expansion in our financial algorithm for 2025 and beyond.