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]