The company's focus on customer engagement has shown a tangible impact, with significant strides made in connecting with both existing customers and prospects. This renewed emphasis on interaction has not only doubled engagement rates but also set a promising foundation for converting these relationships into future deals and pipeline. With a clear correlation between customer meetings and pipeline size, there is optimism about seeing these efforts reflect in the next year's achievements. Additionally, new technology adoptions, particularly in SASE solutions—a sector experiencing healthy market growth—are driving positive sentiment. The company, in its initial forays, is hopeful of replicating the success seen in the email security market over the past two years.
Subscription services are witnessing impressive growth, marked by a 15% increase. This stands in contrast to a 4% dip in non-subscription revenues, highlighting a strategic shift towards recurring revenue models. Even amid market headwinds, including downturns in firewall gateway demand, the company's strategic transitions and innovations, such as Infinity architecture and email security, are compensating for slower product sales. Renewals underscore customer trust in the company's offerings, alluding to a solid foundation for future growth once market conditions improve.
The acquisition of Perimeter 81, coupled with the rollout of Quantum SASE, is expected to bolster the company's subscription line, with aspirations to exceed the current 15% growth rate. This integration aligns with the company's aggressive strategy to scale up technologies that have already demonstrated success on their own, ensuring they continue to thrive without disrupting their upward trajectory.