Financial Data and Key Metrics Changes - The company exceeded Q2 guidance for billings, revenue, and non-GAAP EPS, achieving total revenue of $79.7 million and billings of $70.3 million [23][24] - Non-GAAP net income was $0.9 million, with non-GAAP diluted earnings per share at $0.02 based on 43.6 million diluted weighted average shares outstanding [28] - Subscription gross margin rose to 81.9%, marking the second consecutive quarter of sequential improvement, while operating margin reached 7.7%, the highest in company history [27][28] - Adjusted free cash flow in Q2 was $1.4 million, an improvement of $7 million year over year, with a steady cash balance of $47 million [28] Business Line Data and Key Metrics Changes - New ACV growth accelerated to nearly 20%, the highest in 3.5 years, with sales force productivity growth increasing from 19% to 67% year over year [7][24] - Subscription RPO growth accelerated from 3% to 19% year over year, with current subscription RPO growing 4% to $220.2 million and total subscription RPO growing 19% to $409.8 million, the highest ever [25][26] Market Data and Key Metrics Changes - International momentum was strong, particularly in Japan, where new ACV nearly doubled year over year, and TCV hit all-time highs with an NRR of close to 130% [16][60] - The company has strengthened its ecosystem with deeper integrations into major cloud data warehouse partners, including Snowflake, Databricks, Oracle, and Google [17][18] Company Strategy and Development Direction - The company is focused on sustainable profitable growth, emphasizing a partner-centric go-to-market strategy and a shift to a consumption-based model [5][24] - The strategy includes deepening partnerships, innovating with AI, and building new lanes to help customers accelerate with the company's platform [22] - The company aims to exit fiscal year 2026 with billings growth and non-GAAP operating margin of 6% [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and momentum, highlighting the strong demand for advanced AI solutions and the benefits of the consumption model [9][10] - The management anticipates that improvements in retention rates and new ACV growth will continue to drive future performance [40][85] Other Important Information - The company was recognized as a leader in several industry reports and awards, reflecting its commitment to innovation and talent advancement [21][22] - The company has over 75% of its ARR under consumption, with expectations to reach over 85% by the end of the year [26] Q&A Session Summary Question: Insights on Snowflake Conference and Pipeline - The Snowflake event generated thousands of leads, with a significant impact expected in Q3 as deals from CDWs begin to materialize [31][35] Question: Understanding NRR and Consumption Model - The reported 108% NRR is for customers who originally purchased on a consumption basis, with expectations for improved retention rates as more customers transition to this model [40][41] Question: International Market Success - Japan has shown outsized success, with strong retention and a diverse range of industries performing well, including industrials, oil and gas, and retail [60][62] Question: Differences in Customer Buying Behavior - Larger enterprise customers are increasingly seeking partnerships and long-term solutions, which enhances the company's ability to close deals [89][91]

Financial Data and Key Metrics Changes - In Q2, the company exceeded guidance on billings, revenue, and delivered its first positive non-GAAP EPS while generating positive free cash flow [23][24] - Total revenue was $79.7 million, and billings were $70.3 million, marking a significant performance improvement [23][24] - Non-GAAP net income was $0.9 million, with non-GAAP diluted earnings per share at $0.02 based on 43.6 million diluted weighted average shares outstanding [29][30] - Subscription gross margin rose to 81.9%, and operating margin reached 7.7%, the highest in company history [26][28] Business Line Data and Key Metrics Changes - New ACV growth accelerated to nearly 20%, the highest in 3.5 years, with sales force productivity growth increasing from 19% to 67% year-over-year [6][26] - Subscription RPO growth accelerated from 3% to 19% year-over-year, with current subscription RPO growing 4% to $220.2 million and total subscription RPO growing 19% to $409.8 million [26][27] Market Data and Key Metrics Changes - International momentum was strong, particularly in Japan, where new ACV nearly doubled year-over-year, and TCV hit all-time highs [15][16] - Japan's NRR reached close to 130%, indicating robust customer retention and growth in that market [15] Company Strategy and Development Direction - The company is focused on sustainable profitable growth, emphasizing a partner-centric go-to-market strategy and a shift to a consumption-based model [4][5] - The strategy includes deepening partnerships with cloud data warehouse (CDW) partners and enhancing AI capabilities [10][11] - The company aims to maintain a disciplined financial execution while investing in AI innovation and partner enablement [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and momentum, highlighting the strong demand for advanced AI solutions [9][10] - The company expects to see continued improvement in gross retention rates and new ACV growth, particularly from consumption contracts [41][90] - Management anticipates that the impact of recent strategic initiatives will accelerate in the coming quarters [9][40] Other Important Information - The company was recognized as a leader in several industry reports and awards, reflecting its commitment to innovation and talent advancement [21][22] - The company plans to continue investing in partnerships and AI innovations to drive future growth [22][29] Q&A Session Summary Question: How has the Snowflake Conference impacted the business? - The Snowflake event generated thousands of leads and significantly increased new ACV, with expectations for continued growth in Q3 [34][36] Question: Can you elaborate on the 108% NRR and customer migration to the consumption model? - The 108% NRR is for customers who originally purchased on a consumption basis, and management expects retention rates to improve as more customers transition to this model [41][44] Question: What insights can you provide on international markets and verticals? - Japan has shown exceptional performance, with strong retention and growth across various industries, while other regions in Asia Pacific and EMEA are also performing well [63][64] Question: How does the consumption model affect customer engagement and use cases? - The consumption model allows for broader user access and encourages experimentation with different use cases, leading to increased adoption and retention [70][72] Question: What is the outlook for future growth and profitability? - Future growth is expected to be driven by improved retention rates, new ACV growth, and strong demand for AI-driven solutions [90][91]