Total Revenue

+7% (to $1.8 billion)

The overall revenue grew by 7% due to a combination of strong segments (such as cloud services and Asia Pacific) offsetting weaker performance in EMEA. Previous improvements in high-growth segments helped lift total revenue despite regional imbalances, though detailed drivers are not provided [N/A].

Cloud Services

+12% (to $850 million)

The cloud services segment recorded a robust 12% growth, reflecting strong demand for subscription and AI-enhanced offerings. This growth likely built on past successes in subscription revenue models and enhancements in technology, setting a higher base for current period performance [N/A].

Americas Region

+7% (to $1.2 billion)

Stable 7% growth in the Americas was achieved by consolidating traditional strengths and maintaining consistent market share. This builds on previous period stability in a mature market while continuing to benefit from steady subscription investments [N/A].

EMEA Region

–8% (to $500 million)

A decline of 8% in EMEA indicates regional headwinds, such as competitive pressures or adverse market conditions. This drop contrasts with previous periods of strong international expansion, suggesting that external market challenges may now be impacting revenue [N/A].

Asia Pacific Region

+9% (to $250 million)

The 9% revenue increase in Asia Pacific shows significant regional momentum, likely driven by expanding market opportunities and improved channel strategies. This improvement suggests that previous underperformance in this region may be turning around due to targeted growth efforts [N/A].

Revenue

FY 2025

$1.14 billion " " "

$1,146,500,000 "

no change

Non-GAAP EPS

FY 2025

$2.76 "

$2.88 "

raised

Adjusted EBITDA Margin

FY 2025

Targeting a 2 percentage point improvement from 18.8% (≈20.8%) "

At least 22% "

raised

Revenue

Q3 2025

no prior guidance

$284,500,000 "

no prior guidance

Non-GAAP EPS

Q3 2025

no prior guidance

$0.73 "

no prior guidance

Adjusted EBITDA Margin

Q3 2025

no prior guidance

N/A "

no prior guidance

Enterprise AI Adoption and Revenue Growth

Previously discussed across Q1 2025 " " and Q4 2024 " " as well as in Q3 2024 " " " , with emphasis on strong year‐over‐year revenue growth, robust AI bookings and high attachment rates on $1M+ deals.

In Q2 2025, enterprise AI revenue growth accelerated to 42% YoY with AI now accounting for 10% of enterprise subscription revenue and triple‐digit growth in both new logo and installed base bookings. " " " " " "

Accelerated pace and increased importance. AI growth is not only maintained but has further accelerated in Q2 2025, implying a deeper strategic commitment and enhanced impact on overall revenue.

Recurring/Subscription Revenue Strength and Stability

Consistently highlighted in Q1 2025 " " , Q4 2024 " " and Q3 2024 " with subscription revenue comprising around 79%-80% of total revenue and strong YoY growth driven by high-margin subscriptions and AI contributions.

Q2 2025 reports subscription revenue growth of 16% YoY, now making up 81% of total revenue, with improved retention (LTM dollar-based retention rate of 108%) and a continued focus on high-margin, AI-driven subscription revenue. " " "

Steady and stable with incremental improvements. The strength and stability remain evident, with slight improvements in growth and retention underscoring continued profitability.

Strategic Partnerships and Ecosystem Expansion

Prior periods (Q1 2025 " " " , Q4 2024 " " " and Q3 2024 " " ) emphasized partnerships with ServiceNow, Google Cloud, Salesforce, Microsoft, Verint and others to extend market reach and drive integration.

Q2 2025 continues this theme by highlighting robust collaborations with Salesforce, Google Cloud Marketplace, ServiceNow and Epic – with initiatives leading to record pipelines and multi-million dollar deals. "

Expanding and deepening. The emphasis on partnerships is growing, with an expanding ecosystem aimed at leveraging joint value propositions and unlocking new channels for revenue.

Operational Efficiency Initiatives and Leadership Realignment

Q1 2025 " " " " , Q4 2024 " " " and Q3 2024 " " documents detailed efforts in cost optimization, workforce reduction, process improvements, and leadership shuffles (e.g. CFO and sales leadership transitions).

In Q2 2025, the focus remains on operational efficiency with initiatives like the “pull through” project to reduce reliance on internal professional services and leadership realignments including the appointment of a new CFO and promotions in legal and revenue roles. " " " "

Ongoing refinement and cost discipline. The company is continuously realigning leadership and optimizing operations to support a more profitable, high-margin business model.

Leadership Transition Risk due to CEO Retirement

Earlier periods (Q1 2025, Q4 2024, Q3 2024) did not mention risks related to CEO retirement, though other leadership transitions (e.g. CFO, sales) were addressed. " " "

Q2 2025 uniquely reveals CEO Mike Burkland’s decision to retire from his CEO role, with a planned transition to a new CEO while he remains as Executive Chairman to ensure stability. "

New and significant. The CEO retirement risk is a new theme in Q2 2025, representing a major leadership change that could impact strategy and future growth, despite planned mitigations.

Sales Cycle Challenges and Delayed Deal Execution

Q1 2025 noted longer sales cycles and some deal slippage due to macroeconomic pressure " " " while Q4 2024 discussed elongated cycles caused by complex AI integration, and Q3 2024 mentioned delays that were eventually resolved. " " "

Q2 2025 contains no direct mention of sales cycle challenges or delayed deal execution.

Omitted in current period. The absence in Q2 2025 may suggest resolution or deprioritization of these issues relative to other topics.

Macroeconomic Uncertainty and International/Geopolitical Headwinds

Q1 2025 " " " " " and Q4 2024 " " discussed macroeconomic uncertainty and some international/geopolitical resistance, while Q3 2024 provided a relatively muted discussion, focusing instead on underlying economic conditions. "

Q2 2025 features detailed commentary on ongoing macroeconomic uncertainty with minimal seasonality expectations, while noting improvements in international deal elongation and strong growth via international partnerships. " " "

Evolving with cautious optimism. While macro uncertainty remains a concern, international challenges are easing, indicating the company’s ability to adapt to the changing global environment.

Customer Data Readiness and AI Adoption Hurdles

Earlier periods such as Q1 2025 and Q3 2024 touched on AI adoption enablers (e.g. integration of contextual and historical data) but did not focus as explicitly on data readiness challenges, and Q4 2024 discussed data in the context of AI personalization. " " " " "

In Q2 2025, there is explicit commentary on customer data readiness as a critical factor for successful AI adoption, noting that many customers are still working on organizing their data, which can delay the realization of AI ROI. "

Gaining prominence. The spotlight on data readiness in Q2 2025 highlights a growing recognition that overcoming internal data challenges is key to accelerating AI adoption.

Potential Revenue Growth Challenges in Non-AI/Commercial Segments

In Q1 2025 " , Q4 2024 " " and Q3 2024 " , management discussed slower growth in commercial/non-AI segments with low single-digit growth and a strategic shift towards enterprise and AI-driven revenues.

Q2 2025 notes that the commercial segment remains a smaller part of the revenue mix and that non-AI subscription revenue continues to grow at a slower pace, reinforcing the strategic focus on high-margin, enterprise AI products. " "

Persistent and strategic. The slow growth in non-AI segments continues, underscoring the firm’s deliberate shift towards enterprise and AI-driven revenue as a higher-growth opportunity.

Short-term Gross Margin Pressure from Data Center Investments

Q3 2024 discussed short-term gross margin pressure arising from the newly opened India data center, which impacted margins due to high initial costs and low revenue contribution at the time. "

Q2 2025 does not mention any short-term gross margin pressure from data center investments.

No longer mentioned. The omission in Q2 2025 may suggest that the earlier gross margin pressures from data center investments have been resolved or are no longer a focal point.