RUSH TRANSCRIPT Time I ░░░░░░░░ it in for Nicole ░░░░░░░░ these bring in our ░░░░░░░░ guest and that s ░░░░░░░░ to be Chris Pearson ░░░░░░░░ of black cloak Welcome ░░░░░░░░ the show Chris to ░░░░░░░░ here all right so ░░░░░░░░ we get into a ░░░░░░░░ about palo alto and ░░░░░░░░ industry Just give our ░░░░░░░░ a little background here ░░░░░░░░ what black cloak is ░░░░░░░░ what they do So ░░░░░░░░ locust digital executive protection ░░░░░░░░ protect corporate executives board ░░░░░░░░ the c suite in ░░░░░░░░ personal lives right that ░░░░░░░░ touch States are going ░░░░░░░░ corp controls get higher ░░░░░░░░ higher and more sophisticated ░░░░░░░░ looking for that weak ░░░░░░░░ in So that s ░░░░░░░░ black cloak place all ░░░░░░░░ so you ve got ░░░░░░░░ experience with this as ░░░░░░░░ as cybersecurity maybe some ░░░░░░░░ threats they re on ░░░░░░░░ personal business level At ░░░░░░░░ point Industry as a ░░░░░░░░ competition out there right ░░░░░░░░ total market continues to ░░░░░░░░ on a daily basis ░░░░░░░░ the competition starting to ░░░░░░░░ up here a little ░░░░░░░░ So what s your ░░░░░░░░ away from this sector ░░░░░░░░ a whole I mean ░░░░░░░░ cyber security is one ░░░░░░░░ those things that continues ░░░░░░░░ go up and Guidance ░░░░░░░░ 20 twenty three really ░░░░░░░░ that on top on ░░░░░░░░ front page for the ░░░░░░░░ of directors French price ░░░░░░░░ committees and it is ░░░░░░░░ of those things that ░░░░░░░░ never be under funded ░░░░░░░░ always going to be ░░░░░░░░ arms race in terms ░░░░░░░░ us versus cyber criminals ░░░░░░░░ other nation states that ░░░░░░░░ out There was one ░░░░░░░░ the things that is ░░░░░░░░ baked into cause doing ░░░░░░░░ It s increasing the ░░░░░░░░ that the total addressable ░░░░░░░░ here is absolutely huge ░░░░░░░░ what we re actually ░░░░░░░░ a lot more of ░░░░░░░░ day is number one ░░░░░░░░ in terms of companies ░░░░░░░░ are really trying to ░░░░░░░░ out and get a ░░░░░░░░ handle hold on their ░░░░░░░░ clients and networks and ░░░░░░░░ rest and second but ░░░░░░░░ re seen as some ░░░░░░░░ solve audacious overall As ░░░░░░░░ result of that those ░░░░░░░░ companies keep on gobbling ░░░░░░░░ some smaller start ups ░░░░░░░░ to add more depth ░░░░░░░░ bench strength to what ░░░░░░░░ is are actually doing ░░░░░░░░ it s all good ░░░░░░░░ on the cybersecurity from ░░░░░░░░ It wasn t good ░░░░░░░░ for palo alto investors ░░░░░░░░ stock pulled back It ░░░░░░░░ off about eleven bucks ░░░░░░░░ it s a session ░░░░░░░░ they were bad results ░░░░░░░░ gave a little bit ░░░░░░░░ guidance and maybe what ░░░░░░░░ truth street anticipated this ░░░░░░░░ but you mention that ░░░░░░░░ is Asian Got to ░░░░░░░░ in that to kind ░░░░░░░░ grab a hold of ░░░░░░░░ clients in maybe gobble ░░░░░░░░ the smaller people right ░░░░░░░░ this point This as ░░░░░░░░ right now in terms ░░░░░░░░ alto earnings report is ░░░░░░░░ of muted reaction from ░░░░░░░░ market but it means ░░░░░░░░ now down one point ░░░░░░░░ percent today I mean ░░░░░░░░ at one hundred and ░░░░░░░░ nine dollars I think ░░░░░░░░ is gaining traction I ░░░░░░░░ the paolo alto reports ░░░░░░░░ showed great retention and ░░░░░░░░ in their client base ░░░░░░░░ folks are actually going ░░░░░░░░ that long play How ░░░░░░░░ we go ahead and ░░░░░░░░ convergence of several different ░░░░░░░░ under arrest How do ░░░░░░░░ more deep in our ░░░░░░░░ into other companies other ░░░░░░░░ and how do we ░░░░░░░░ for that really really ░░░░░░░░ game out there Their ░░░░░░░░ for 20 twenty five ░░░░░░░░ up nine point one ░░░░░░░░ Billion I think this ░░░░░░░░ going to really turn ░░░░░░░░ quite quickly for them ░░░░░░░░ when you look at ░░░░░░░░ competition that space that ░░░░░░░░ mentioned before the growth ░░░░░░░░ a crowd stag lot ░░░░░░░░ than palo alto At ░░░░░░░░ point maybe some of ░░░░░░░░ others like fort net ░░░░░░░░ some of the other ░░░░░░░░ in this be hard ░░░░░░░░ palo alto measure or ░░░░░░░░ to them As far ░░░░░░░░ the outlook moving forward ░░░░░░░░ this space becomes even ░░░░░░░░ competitive Number one in ░░░░░░░░ that earnings reports you ░░░░░░░░ Paul oughta had several ░░░░░░░░ any many different clients ░░░░░░░░ substantially substantial amounts of ░░░░░░░░ invested in second is ░░░░░░░░ that walk in terms ░░░░░░░░ where paolo alto is ░░░░░░░░ it s most places ░░░░░░░░ the environment What cisco ░░░░░░░░ chief information 30 officers ░░░░░░░░ looking for as a ░░░░░░░░ to actually shrink the ░░░░░░░░ of vendors that there ░░░░░░░░ looking for looking rocking ░░░░░░░░ work with and deepen ░░░░░░░░ bench strength That is ░░░░░░░░ are in terms of ░░░░░░░░ the offerings are think ░░░░░░░░ really primed nicely in ░░░░░░░░ area There are some ░░░░░░░░ competitors that they have ░░░░░░░░ are more point solutions ░░░░░░░░ re focusing on one ░░░░░░░░ one segment one sector ░░░░░░░░ doing things in in ░░░░░░░░ control area I think ░░░░░░░░ alto a much broader ░░░░░░░░ there and as a ░░░░░░░░ I think that they ░░░░░░░░ going to be able ░░░░░░░░ be here for a ░░░░░░░░ longer and go lot ░░░░░░░░ into companies and furthermore ░░░░░░░░ those recent acquisitions they ░░░░░░░░ have other wages in ░░░░░░░░ door other feet in ░░░░░░░░ of openings at different ░░░░░░░░ relationship with and I ░░░░░░░░ it can see them ░░░░░░░░ that a lot and ░░░░░░░░ twenty five yeah I ░░░░░░░░ when you look at ░░░░░░░░ eye aspect of a ░░░░░░░░ I think it s ░░░░░░░░ to play A big ░░░░░░░░ of the growth rate ░░░░░░░░ still there for a ░░░░░░░░ of these companies They ░░░░░░░░ going to be solid ░░░░░░░░ mention that total addressable ░░░░░░░░ continues to go That ░░░░░░░░ s going to be ░░░░░░░░ to produce for these ░░░░░░░░ is That thing is ░░░░░░░░ the one thing that ░░░░░░░░ should be focused on ░░░░░░░░ forward Think it s ░░░░░░░░ does someone like paolo ░░░░░░░░ tell a better together ░░░░░░░░ so that means as ░░░░░░░░ of their acquisitions and ░░░░░░░░ bringing them together Why ░░░░░░░░ you choose paolo alto ░░░░░░░░ another competitor and it ░░░░░░░░ going to be a ░░░░░░░░ together story Number one ░░░░░░░░ two artificial intelligence and ░░░░░░░░ learning are going to ░░░░░░░░ be a massive jump ░░░░░░░░ or paolo alto and ░░░░░░░░ companies that are investing ░░░░░░░░ in it You mentioned ░░░░░░░░ of them from strike ░░░░░░░░ very focused on that ░░░░░░░░ the endpoint protection response ░░░░░░░░ the ability to actually ░░░░░░░░ one step ahead of ░░░░░░░░ adversaries to decrease the ░░░░░░░░ element and the processing ░░░░░░░░ Going to be a ░░░░░░░░ differentiator for many in ░░░░░░░░ area and I think ░░░░░░░░ really really well poised ░░░░░░░░ When you look at ░░░░░░░░ know the acquisition of ░░░░░░░░ major clients I think ░░░░░░░░ s one of the ░░░░░░░░ things they look at ░░░░░░░░ annual recurring revenue as ░░░░░░░░ as subscription levels at ░░░░░░░░ point does To be ░░░░░░░░ little bit more flexible ░░░░░░░░ gathering more of those ░░░░░░░░ net worth businesses It ░░░░░░░░ I think a few ░░░░░░░░ number one that number ░░░░░░░░ customers that are spending ░░░░░░░░ 10 million dollars or ░░░░░░░░ was bright really indicated ░░░░░░░░ retention stickiness their that ░░░░░░░░ number One number two ░░░░░░░░ like paolo alto with ░░░░░░░░ competitors because they have ░░░░░░░░ a hardware play and ░░░░░░░░ software play and once ░░░░░░░░ they have that platform ░░░░░░░░ comes really hard to ░░░░░░░░ our to change our ░░░░░░░░ and change them out ░░░░░░░░ a leading force in ░░░░░░░░ cybersecurity stack So with ░░░░░░░░ said I think that ░░░░░░░░ why they have so ░░░░░░░░ going on for them ░░░░░░░░ the retention side and ░░░░░░░░ good path for well ░░░░░░░░ quick here before I ░░░░░░░░ you go Chris.