Executive Summary

Q1 FY26 delivered a clean beat on revenue and non-GAAP EPS, with double‑digit top-line growth and record first‑quarter margins; revenue was $194.8M (+11% YoY) vs S&P Global consensus ~$191.1M*, and non‑GAAP EPS was $0.44 vs ~$0.42*, driven by strong subscription usage and disciplined cost control .
Management raised FY26 revenue guidance to $798–$818M (from $787–$817M prior) and reiterated non‑GAAP operating income of $178–$182M; Q2 guide calls for $197M revenue and ~$39M non‑GAAP operating income .
KPIs were constructive: CRPO +14% YoY to $451M, subscription net retention 104%, and a growing base of $1M+ customers (127, +12 YoY), despite a temporary downtick tied to Oracle’s ad tech exit .
Stock-reaction catalysts: a credible growth narrative around Cross Media Intelligence, CTV, and commerce media networks; margin expansion accompanied by a 21% YoY decline expected in stock‑based comp; and an improved FCF outlook aided by tax legislation .

What Went Well and What Went Wrong

What Went Well
- Broad-based strength with six consecutive quarters of double‑digit revenue growth; non‑GAAP operating income +34% YoY and record Q1 operating margins (non‑GAAP 18%) .
- Product momentum: Cross Media Intelligence launched with marquee adopters (largest social media platform, leading CPG, a top consumer/enterprise software company, major financial software provider), while CTV integrations (e.g., Netflix) scaled to dozens of brands in four months .
- Management tone on growth initiatives and pricing: “Our new pricing model…standardizing pricing with fungible tokens across all products…lower upfront costs…scaling pricing directly with customer usage” .
What Went Wrong
- Data Marketplace growth ran a few points below expectations due to a one‑off integration feature issue (now resolved); Q1 subscription usage growth (~+40% YoY) benefited from easy comps and some one‑time items, with management guiding usage flat YoY for the remaining quarters .
- A slight sequential downtick in $1M+ customers was driven by atypical churn (notably Oracle’s ad tech exit), though management expects a rebound on recent multimillion-dollar deals .
- GAAP gross margin compressed 100 bps YoY (70.1%) due to temporarily higher cloud hosting expenses during platform modernization, with normalization expected in 2H .

Financial Results

Metric	Q3 FY25	Q4 FY25	Q1 FY26
Revenue ($M)	$195.4	$188.7	$194.8
GAAP Diluted EPS	$0.17	$(0.10)	$0.12
Non-GAAP Diluted EPS	$0.55	$0.30	$0.44
GAAP Gross Margin %	71.9%	69.3%	70.1%
Non-GAAP Operating Margin %	23.0%	12.2%	18.4%
Non-GAAP Operating Income ($M)	$45.3	$23.0	$35.8
Adjusted EBITDA ($M)	$46.0	$23.7	$36.4
Operating Cash Flow ($M)	$45.1	$62.6	$(15.8)
Free Cash Flow ($M)	$45.0	$62.3	$(16.2)

Actual vs S&P Global consensus (Q1 FY26):

Metric	Consensus	Actual
Revenue ($M)	$191.1*	$194.8
Non-GAAP EPS	$0.42*	$0.44

Values with asterisks (*) retrieved from S&P Global.

Segment revenue mix (oldest → newest):

Segment ($M)	Q3 FY25	Q4 FY25	Q1 FY26
Subscription	$146	$145	$148
Marketplace & Other	$50	$44	$46

KPIs and Customer Metrics:

KPI	Q3 FY25	Q4 FY25	Q1 FY26
ARR ($M)	$491	$504	$502
CRPO (next 12 months, $M)	$434	$471	$451
Subscription Net Retention	108%	104%	104%
Platform Net Retention	111%	106%	105%
Customers ≥$1M ARR	125	128	127
Direct Subscription Customers	865	840	835

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY26	$787–$817M	$798–$818M	Raised (low end)
Non-GAAP Operating Income	FY26	$178–$182M (reiterated)	$178–$182M	Maintained
GAAP Operating Income	FY26	N/A / prior release referenced GAAP op loss (see note)	$81–$85M	Reframed upward
Revenue	Q2 FY26	N/A	$197M	New
GAAP Operating Income	Q2 FY26	N/A	~$15M	New
Non-GAAP Operating Income	Q2 FY26	N/A	~$39M	New

Note: The May 21 FY26 outlook in the Q4 release showed a GAAP operating loss range; management now guides to positive GAAP operating income of $81–$85M, with CFO reiterating non‑GAAP operating income of $178–$182M .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q1 FY26)	Trend
Cross Media Intelligence (CMI)	Announced 2/25; positioned for next‑gen cross‑media measurement .	Launched in Q1; early traction with large social platform, leading CPG, top software, and financial software customers .	Accelerating adoption
Commerce Media Networks	Q3/Q4 momentum; expanding verticals (retail/casino) .	New WAG clean room; upsell with U.S. department store; expanding to airlines, automotive, real estate, payments .	Broadening use cases
CTV	Added premium publisher intelligence in Q3 .	Netflix integration scaled to dozens of brands in 4 months; back‑half spend expected to benefit .	Strengthening
Pricing Model	N/A in Q3; FY26 focus on platform ease and CMI .	Pilot with up to 40 customers; tokenized, usage‑aligned pricing; lower entry cost; expected to aid velocity and upsell .	Positive early feedback
Macro/Tariffs	Uncertainty acknowledged; ROI focus .	Similar tone; “uncertain environment…more tariffs/less tariffs…ROI story matters” .	Steady caution, ROI‑led
Stock‑based Compensation	FY25 non‑GAAP framework; SBC notably high historically .	SBC expected to decline 21% YoY to ~$85M; aiding GAAP margin improvement .	Improving leverage
Data Marketplace	Q3/Q4 growth .	Q1 growth a few points light due to a one‑off integration issue (resolved; Q2 rebound) .	Temporary headwind
AI Positioning	Identity/clean room core; measurement advances .	“We’re an AI enabler,” integrating proprietary data into AI agents; new partnerships (e.g., Perplexity, Chalice) .	Clear strategic role

Management Commentary

Strategic focus and momentum: “We delivered strong financial results in Q1, beating on the top and bottom line…We also increased our revenue and free cash flow outlook for the year” .
Product traction: “Cross media intelligence…has already attracted several high profile customers…This strong start signals continued momentum” .
Pricing model: “Standardizing pricing with fungible tokens…lower upfront costs…scale pricing directly with customer usage” .
AI stance: “We are not an AI company…we’re an AI enabler…our clean rooms can be configured to go right into AI” .
Margin/discipline: “Operating margin…record first quarter highs…driven in part by our more disciplined approach to stock based compensation” .

Q&A Highlights

Near‑term growth cadence: Subscription usage up ~40% YoY in Q1 on timing/one‑time items; guided flat YoY for remaining quarters; raised FY26 revenue outlook on stronger usage and sales momentum .
Commerce media and CTV flywheel: Expanding across verticals (retail, payments, travel); Netflix integration scaling; expect back‑half uplift as budgets shift to accountable CTV .
Customer metrics: $1M+ customer downtick tied to Oracle ad tech exit; expected to rebound on new multimillion‑dollar signings .
Pricing pilot: Positive seller/customer reception; lowers friction for new logos and expands usage via tokens; no upside assumed in FY26 guide yet .
Cost leverage: Offshoring and automation driving low‑double‑digit millions in savings; supports margin expansion and reinvestment .

Estimates Context

Q1 FY26 vs Street: Revenue $194.8M beat ~$191.1M*; non‑GAAP EPS $0.44 beat ~$0.42* .
Q2 FY26 guide vs Street: Company guides ~$197M revenue and ~$39M non‑GAAP operating income; Street for revenue ~$197.3M* (near in‑line) .
FY26 guide vs Street: Company $798–$818M revenue vs Street ~$812.3M*; non‑GAAP op income reiterated at $178–$182M .
Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

Quality beat with record Q1 margins, underpinned by usage strength and cost discipline; margin expansion durable as SBC falls and offshoring scales .
Growth vectors (CMI, CTV, commerce media) are early but scaling with blue‑chip adopters; recent integrations (e.g., Netflix) and retail media wins are credible demand signals .
FY26 revenue guide raised; non‑GAAP operating income reiterated at a robust +33% YoY growth at the midpoint, despite normalization of usage later in the year .
Temporary headwinds (Data Marketplace integration hiccup; Oracle churn) appear idiosyncratic and resolving; CRPO +14% and net retention 104–105% support forward visibility .
Tactical setup: In‑line Q2 revenue guide with a cleaner 2H setup (gross margin normalization post‑migration and budget seasonality), plus enhanced FCF outlook from tax legislation and buybacks ($30M in Q1; $226M remaining authorization) .
Medium‑term thesis: Tokenized pricing and AI‑enabled clean‑room workflows can compress sales cycles and expand use cases, reinforcing network effects and operating leverage .

Appendix: Source Documents
- Q1 FY26 8‑K/Press Release (8‑K Item 2.02): **[733269_0000733269-25-000040_a2026q1pressrelease.htm:0]** **[733269_0000733269-25-000040_a2026q1pressrelease.htm:1]** **[733269_0000733269-25-000040_a2026q1pressrelease.htm:5]** **[733269_0000733269-25-000040_a2026q1pressrelease.htm:6]** **[733269_0000733269-25-000040_a2026q1pressrelease.htm:7]** **[733269_0000733269-25-000040_a2026q1pressrelease.htm:9]** **[733269_0000733269-25-000040_a2026q1pressrelease.htm:10]** **[733269_0000733269-25-000040_a2026q1pressrelease.htm:15]**
- Q1 FY26 Earnings Call Transcript: **[733269_2060304_1]** **[733269_2060304_2]** **[733269_2060304_5]** **[733269_2060304_6]** **[733269_2060304_9]** **[733269_2060304_10]** **[733269_2060304_11]** **[733269_2060304_13]** **[733269_2060304_14]**
- Q4 FY25 Press Release (prior quarter): **[733269_2d933dc2684048b48f4befa0936bf7ff_0]** **[733269_2d933dc2684048b48f4befa0936bf7ff_3]** **[733269_2d933dc2684048b48f4befa0936bf7ff_4]** **[733269_2d933dc2684048b48f4befa0936bf7ff_9]** **[733269_2d933dc2684048b48f4befa0936bf7ff_11]** **[733269_2d933dc2684048b48f4befa0936bf7ff_12]** **[733269_2d933dc2684048b48f4befa0936bf7ff_13]** **[733269_2d933dc2684048b48f4befa0936bf7ff_16]**
- Q3 FY25 Press Release (two quarters back): **[733269_82b39365f98a41fc9c8d858902cc9cf3_0]** **[733269_82b39365f98a41fc9c8d858902cc9cf3_2]** **[733269_82b39365f98a41fc9c8d858902cc9cf3_8]** **[733269_82b39365f98a41fc9c8d858902cc9cf3_10]** **[733269_82b39365f98a41fc9c8d858902cc9cf3_11]**

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