Annual Revenue

FY 2025

$1.130 billion "

$1.14 billion "

raised

Non-GAAP EPS

FY 2025

$2.52 per diluted share "

$2.60 per diluted share "

raised

Revenue

Q1 2025

no prior guidance

$272 million "

no prior guidance

Non-GAAP EPS

Q1 2025

in the 40s per diluted share "

$0.48 per diluted share "

no change

Enterprise AI Adoption and Revenue Growth

Q1–Q3 calls consistently highlighted strong AI adoption with metrics such as 15x ARR expansion (Q1 " " ), 111% YoY growth in key products (Q2 " " ), and 40% YoY growth with AI attached to key deals (Q3 " ).

In Q4 2024, AI revenue accelerated to 46% YoY growth, with AI now accounting for a larger share of enterprise subscription revenue and securing 100% attach rates on $1M+ ARR deals. " " "

Accelerating adoption and revenue contribution from AI solutions with increasing emphasis on intelligent, engine-agnostic positioning.

Macro-Economic Uncertainties and Geopolitical Headwinds

Q1 acknowledged a cautious approach given general macro challenges. " " Q2 discussed customer sentiment, retailer cautiousness, and choppiness. " Q3 referenced consumer retail trends from external data sources but with less emphasis on geopolitical factors. " "

Q4 featured detailed mentions of macro uncertainties—tariffs, deportations, wars, and a cautious guidance philosophy—with more extensive commentary on the impact on sales cycles and seasonality. " " "

Increased focus and concern in Q4 with a more explicit discussion of external geopolitical and economic headwinds compared to earlier quarters.

Large Enterprise Deals and Bookings Pipeline

Q1 showcased record mega deals (e.g. a Fortune 50 bank) and a strong pipeline. " " Q2 noted missed mega deals and delays impacting short-term forecasts. " " Q3 reported record new logo turnups and healthy pipeline growth, driven in part by AI. " " "

Q4 reported the highest number of $1M+ ARR new logo wins and sequential bookings growth with a robust pipeline—including a 4x increase in one segment—reflecting renewed momentum in the large enterprise segment. " "

Reinvigorated momentum in large enterprise deals and bookings pipeline, recovering from earlier lulls and showing strong recent performance.

Sales Execution and Elongated Sales Cycle Challenges

Q2 explicitly flagged sales execution issues and lengthy sales cycles due to budget scrutiny and the complexity of deals. " " Q3 mentioned that while some medium-to-large deals were delayed, improvements were noted by refocusing on faster “dolphin” deals. "

Q4 continued to acknowledge the challenge of elongated sales cycles but noted that the “AI fog” is lifting, and teams are now focusing on demonstrating ROI of AI to help shorten cycles. "

Persistent challenges with sales execution remain, though there is modest improvement driven by an AI ROI focus.

Revenue Guidance and Dependence on Second-Half Acceleration

Q1 assumed a significant reacceleration in 2H (from 11.4% to 20.1% growth) " " ; Q2 revised guidance downward due to weaker new logo bookings and seasonal factors " " ; Q3 maintained guidance that leaned on a typical second-half skew. "

Q4 guidance for 2025 set a midpoint of $1.14B with a 2% sequential dip in Q1 and a strong emphasis on second-half acceleration to overcome a tough mega customer ramp. " "

Consistent reliance on a strong second-half performance, though with cautious adjustments reflecting evolving economic and seasonal dynamics.

Subscription Revenue Performance and Target Alignment

Q1 delivered robust 20% YoY subscription revenue growth and a focus on upmarket, international, and AI-infused solutions. " " Q2 and Q3 further underscored the importance of shifting to higher-margin subscription revenue (17%–20% growth, mix shifts, and AI contributions). " " "

Q4 delivered strong performance with 19% YoY growth, and enterprise AI now contributes a larger share (9% of enterprise subscription revenue), reinforcing the company’s target alignment with its long-term strategy. " "

Stable, strong performance in subscription revenue with steady strategic alignment and an incremental boost from AI offerings.

Gross Margin and EBITDA Trends

Q1 reported modest improvement in adjusted gross margins and EBITDA, despite investments for expansion. " Q2 experienced margin pressures due to significant investments in FedRAMP and India, while Q3 showed sequential improvements (gross margin ~61.8% and EBITDA nearing 20%). " "

Q4 achieved record adjusted EBITDA margins of 23.1% and improved gross margins (+220 basis points YoY), reflecting strong revenue scaling against fixed costs and disciplined expense management. "

Significant margin expansion and improved profitability as investments mature and cost controls tighten over time.

Customer Retention Challenges (DBRR/NRR)

Q1 noted a slight decline in DBRR to 109% but optimism for a second-half rebound. " Q2 saw DBRR dip slightly to 108% and noted macroeconomic and seasonal pressures. " " Q3 maintained a stable DBRR at 108% with limited details on NRR. "

Q4 maintained a DBRR of 108% with commentary on minor fluctuations and positive contributions from high-value, million-dollar-plus customers, despite a cautious short-term outlook. "

Stable retention metrics overall, with challenges from seasonal and economic factors remaining balanced by strong expansion in high-value accounts.

Strategic Partnerships and International Expansion

Q1 emphasized key partnerships with Salesforce, BT, Google, and certifying SIs to drive international growth, with noted success in EMEA. " " " Q3 discussed the India data center launch and ongoing strategic alliances with ISVs. " "

Q4 continued to stress a strong partnership ecosystem—including Salesforce, ServiceNow, Microsoft, and Google Cloud—but provided less detail on international expansion compared to earlier calls. " "

Consistent emphasis on strategic partnerships while international expansion details are less prominent in Q4, suggesting a slight reduction in focus on global rollout messaging.

Infrastructure Investments and Pricing Strategy Impacts

Q1–Q3 included discussions on substantial infrastructure investments (e.g., FedRAMP, India expansion) and described steady core pricing with evolving transactional models for AI. " " Q2 and Q3 discussed these investments as drivers for long‐term opportunities despite short-term margin pressure. " "

Q4 did not mention either infrastructure investments or pricing strategy impacts, indicating that these topics have been dropped from the current period’s discussion [no citations].

Topic no longer mentioned in Q4, suggesting a shift in focus away from infrastructure and pricing details toward other strategic areas.

Decline in Emphasis on Consumer Vertical

Q1 characterized the consumer vertical as somewhat weaker with lower spending and soft trends. " " Q2 continued to note weakness in the consumer sector, attributing declines to economic uncertainty and cautious retail spending. " Q3 reiterated headwinds using external consumer spending data. "

Q4 reversed the earlier narrative with reports of stronger seasonal upticks in the consumer vertical, including increased telephony usage (rising from 13% to 14% of total usage). " "

Shift from early declines to a modest recovery in the consumer vertical in Q4, as seasonal dynamics improve despite previous headwinds.