Financial Data and Key Metrics Changes - The company reported total ARR of $1.704 billion, growing 4.1% year over year, exceeding guidance by $18.6 million [29] - Cloud subscription ARR reached $848 million, representing a 30% year-over-year growth, also above guidance [29][13] - Total revenue was $400 million, an increase of 3.9% year over year, exceeding guidance by approximately $14 million [34] - Non-GAAP operating income grew 11% year over year to $122 million, exceeding guidance [38] Business Line Data and Key Metrics Changes - Cloud subscription ARR now constitutes approximately 50% of total ARR, up from 40% a year ago [8] - Self-managed subscription ARR declined to $422 million, down 16% year over year [31] - Maintenance ARR for on-premise licenses was $433 million, down 9.5% year over year [31] Market Data and Key Metrics Changes - U.S. revenue grew 6% year over year to approximately $256 million, representing 63% of total revenues [37] - International revenue grew 1% year over year to $148 million, representing 37% of total revenue [37] Company Strategy and Development Direction - The company is in the final phase of transforming to a cloud-only business model, with a focus on cloud modernization deals and new customer acquisitions [6][12] - The company aims to reach a billion-dollar business in cloud subscription ARR [11] - The partnership with Databricks is expected to enhance enterprise modernization efforts and leverage AI capabilities [72] Management's Comments on Operating Environment and Future Outlook - Management noted a healthy cloud pipeline and no noticeable change in customer buying behavior through April [9] - The company remains cautious about the macro environment but is optimistic about its operational changes and cloud growth trajectory [10][12] - Management reaffirmed full-year guidance, indicating confidence in achieving targets despite external uncertainties [43] Other Important Information - The company has implemented operational changes to improve cloud renewals, which have shown positive results [10][60] - The company is recognized as a leader in the 2025 Gartner Magic Quadrant for Augmented Data Quality Solutions [19] Q&A Session Summary Question: Clarification on full-year guidance and FX impact - Management clarified that the guidance was not revised due to FX changes but remains consistent with previous expectations [52][53] Question: Concerns about maintenance and self-managed ARR decline - Management indicated that the decline is expected and aligns with prior guidance, driven by natural churn and modernization efforts [55][56] Question: Cloud renewal rates and operational changes - Management confirmed that cloud renewal rates were consistent with expectations and showed sequential improvement [60][61] Question: Competitive environment and operational changes - Management noted that operational changes are yielding positive results and that competitive dynamics remain stable [68][72] Question: Migration and modernization impact on ARR - Management explained that the current churn is part of the expected transition as customers modernize their workloads [93]

Financial Data and Key Metrics Changes - The company reported total ARR of $1.704 billion, growing 4.1% year over year, exceeding guidance by $18.6 million [27] - Cloud subscription ARR reached $848 million, representing a 30% year-over-year growth, also above guidance [27][12] - Total revenue was $400 million, an increase of 3.9% year over year, exceeding guidance by approximately $14 million [31] - Non-GAAP operating income grew 11% year over year to $122 million, exceeding guidance [36] Business Line Data and Key Metrics Changes - Cloud subscription ARR now constitutes nearly 50% of total ARR, up from 40% a year ago [28] - Self-managed subscription ARR declined to $422 million, down 16% year over year [29] - Maintenance ARR was $433 million, down 9.5% year over year [29] Market Data and Key Metrics Changes - U.S. revenue grew 6% year over year to approximately $256 million, representing 63% of total revenues [35] - International revenue grew 1% year over year to $148 million, representing 37% of total revenue [35] Company Strategy and Development Direction - The company is in the final phase of its transformation to a cloud-only business model, with a focus on cloud modernization and new customer acquisition [5][10] - The company aims to reach a billion-dollar business in cloud subscription ARR [10] - The partnership with Databricks is expected to enhance enterprise modernization efforts and leverage AI capabilities [16][70] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about customer buying behavior and the health of the cloud pipeline despite a fluid macro environment [7] - The company has not seen a noticeable change in customer buying behavior through April [7] - Management reaffirmed full-year guidance, indicating confidence in achieving targets despite external challenges [40] Other Important Information - The company has implemented operational changes to improve cloud renewals, which have shown positive results [9][68] - The company is recognized as a leader in the 2025 Gartner Magic Quadrant for Augmented Data Quality Solutions [19] Q&A Session Summary Question: Clarification on full-year guidance and FX impact - Management clarified that the revised guidance is not a reflection of deteriorating business trends but a decision not to adjust for FX tailwinds [50][51] Question: Concerns about maintenance and self-managed ARR decline - Management indicated that the decline is expected and consistent with prior guidance, driven by natural churn and modernization efforts [52][54] Question: Cloud renewals performance - Management stated that cloud renewal rates were consistent with expectations and showed sequential improvement [57][58] Question: Net new ARR dynamics - Management explained that Q1 is typically smaller and the results were in line with expectations, with a larger Q2 anticipated [61] Question: Competitive landscape and partnerships - Management noted that the competitive dynamics remain stable, and partnerships, particularly with Databricks, are yielding positive results [70] Question: Impact of new data governance vendor acquisitions - Management downplayed the competitive threat from smaller vendors, emphasizing the fragmented nature of the market [82][84]