Financial Data and Key Metrics Changes - In Q4 FY 2026, total revenue grew 5.3% year-over-year to $1.25 billion, exceeding guidance by $12 million [18] - Full year FY 2026 revenue increased by 4.4%, with enterprise revenue growing 6.5% [24] - Non-GAAP gross margin in Q4 was 79.8%, up 1 point year-over-year, while non-GAAP operating margin was 39.3% [21] - Free cash flow for FY 2026 grew 6.4% to $1.9 billion [24] Business Line Data and Key Metrics Changes - The enterprise business revenue grew 7.1% year-over-year, representing 61% of total revenue [18] - Average monthly churn in the online business was 2.9%, slightly up from 2.8% in Q4 FY 2025 [18] - The number of enterprise customers contributing over $100,000 in trailing 12-month revenue grew by 9% year-over-year [19] Market Data and Key Metrics Changes - Revenue growth in the Americas was 6%, EMEA grew 5%, and APAC grew 3% [19] - Deferred revenue at the end of Q4 grew 5% year-over-year to $1.42 billion [22] Company Strategy and Development Direction - The company aims to leverage AI to enhance customer experience and drive growth in new AI products [6][8] - Focus on integrating AI into customer experience platforms to eliminate silos and improve service outcomes [9] - Plans to continue share buybacks to offset dilution and enhance shareholder value [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about AI technology monetization in FY 2027, highlighting strong customer interest in Custom AI Companion [31] - The company anticipates revenue growth to cross the $5 billion milestone in FY 2027, with a focus on profitability and cash flow generation [26][28] Other Important Information - The company reduced stock-based compensation expense by 18% in FY 2026 [25] - The balance sheet showed $7.8 billion in cash equivalents and marketable securities at the end of Q4 [23] Q&A Session Summary Question: AI monetization progress in FY 2027 - Management is optimistic about AI technology monetization, particularly through Custom AI Companion, which is expected to drive revenue growth [31] Question: Impact of competitive takeouts on deferred revenue growth - Management clarified that recent competitive wins involve providing grace periods to customers, which is beneficial for long-term business [38] Question: Structural barriers preventing disintermediation by AI model providers - Management emphasized the importance of reliability, security, and ease of use in their offerings, which are difficult to replicate [42] Question: Net retention rate and future growth - Management indicated that net dollar expansion will rebound in the long term, driven by improvements in churn and AI monetization [48] Question: Trends in international markets - Management noted that investments in products like Contact Center and Phone are expected to help penetrate international markets [55] Question: Pricing strategy for FY 2027 - Management indicated that pricing increases are assumed in the guidance, aimed at reflecting the added value in their offerings [105]