Financial Data and Key Metrics Changes - The company reported record high adjusted EBITDA of $23 million, nearly 15% higher than last year's first quarter record of $20 million, with adjusted EBITDA reaching 36% of revenue [7][15][19] - First quarter revenue was $63.4 million, a 2% decline compared to the same period last year [16][20] - First quarter gross margin increased to 74% from 73% in the prior year [16][17] - GAAP operating income was $17.2 million compared to $14.1 million in the first quarter of last year [18] Business Line Data and Key Metrics Changes - Subscription revenue grew 9%, driven by software authentication, app shielding, and e-signature solutions [8][12] - Security subscription revenue increased 7%, while digital agreements subscription revenue grew 13% [12][21] - Security solutions revenue declined 5% to $47.7 million, while digital agreements revenue grew 9% to $15.7 million [16][20] Market Data and Key Metrics Changes - Revenue mix by region remained consistent, with EMEA accounting for 49%, Americas 33%, and Asia Pacific 18% [23] - The company expects potential tariff-related costs of up to $1 million for the full year 2025 due to hardware revenue exposure [25] Company Strategy and Development Direction - The company aims to continue optimizing its cost structure and driving efficient revenue growth while maintaining profitability commitments [7][14][28] - There is a focus on operational excellence and a balanced capital allocation strategy, including potential increases in capital return to shareholders and targeted M&A [14][27][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit subscription revenue growth for the full year 2025 despite macroeconomic uncertainties [24][46] - The company is monitoring the impact of tariffs and foreign currency fluctuations on its business [25][61] Other Important Information - The company generated $29 million in cash from operations and ended the quarter with $105 million in cash on hand [13][23] - The board approved a quarterly dividend of $0.12 per share, totaling approximately $4.6 million [13][14] Q&A Session Summary Question: Impact of tariffs on hardware revenue - Management indicated that Europe is the largest market for hardware, with minimal tariff impact observed to date [32][34] Question: Quantifying the impact of large deals slipping into Q2 - Management clarified that the two large contracts did not impact Q1 ARR as their start date was in April [41] Question: Confidence in maintaining guidance amid macro uncertainty - Management noted a strong start to the year in terms of bookings, contributing to their confidence in maintaining guidance [46][47] Question: Adjusted EBITDA margin expectations for the full year - Management explained that Q1 typically has a favorable revenue mix, and they expect a shift in mix for the remainder of the year [51][52] Question: Capital allocation strategy - Management discussed potential returns to shareholders through dividends, buybacks, and targeted M&A, focusing on expanding security capabilities [68][70]