Financial Data and Key Metrics Changes - In Q2, subscription revenue grew by 12% year over year to $73.3 million, while total revenue increased by 8% year over year to $88.7 million, both exceeding guidance ranges [19] - Adjusted EBITDA improved by 42% year over year to $7.4 million, also exceeding guidance [20] - Free cash flow for Q2 was $3.2 million, bringing the total for 2025 to $4.3 million, an improvement of over $3 million compared to the first half of last year [21] - Non-GAAP earnings per share for Q2 was $0.13, exceeding guidance [22] Business Line Data and Key Metrics Changes - Recurring revenue accounted for 86% of total revenue in Q2, up from 84% in Q2 of the previous year [19] - Non-GAAP subscription gross margin was 80% in Q2, improving by over 50 basis points year over year [20] - Non-GAAP service gross margins increased to 11% in Q2 from 10% reported last year [20] Market Data and Key Metrics Changes - The airline business saw continued momentum with new customer wins such as Air Greenland and ValueJet, and expanded partnerships with major carriers [10] - New customers in various sectors, including a global life sciences leader and a top U.S. auto parts distributor, selected Smart CPQ solutions [8] Company Strategy and Development Direction - The company is focused on leading with innovation and building a comprehensive AI-powered commercial platform to help businesses succeed [11] - Plans to enhance platform extensibility and deepen AI agent capabilities are in place, with a focus on driving goal-oriented execution across various use cases [12] - The company aims to strengthen its go-to-market function and improve lead quality and conversion rates through targeted campaigns [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in the company's ability to help customers navigate these uncertainties [6] - The company is well-positioned to capture long-term value and lead in the next era of enterprise transformation, particularly through AI innovations [15] - Management expects subscription revenue and ARR guidance to be raised due to strong business momentum [19] Other Important Information - The company announced a partnership with Commerce to combine enterprise-grade pricing and CPQ capabilities with e-commerce solutions, aiming to enhance distribution and demand flow [14][56] - The company is actively working on simplifying product deployment to drive subscription revenue growth [66] Q&A Session Summary Question: What initiatives are in place to build tighter alignment between marketing and sales? - Management discussed tailoring marketing campaigns to specific industries and aligning sales activities accordingly, with expected benefits in a few quarters [27][29] Question: How does the company view the opportunity in the travel segment? - Management expressed optimism about the airline industry's demand for offer management solutions, noting significant interest from airlines in redefining their tech stacks [30][32] Question: What needs to happen for subscription growth to accelerate into 2026? - Management indicated that optimizing the top of the funnel and leveraging partnerships will be key to accelerating growth [39][41] Question: Can you elaborate on the macro environment and its impact on sales cycles? - Management confirmed that while the sales environment remains challenging, there are opportunities for growth, particularly in complex environments where their products add value [70][72] Question: How is the company maintaining its competitive advantage around AI? - The focus is currently on driving usage and adoption of AI agents, with plans to evaluate monetization models based on customer feedback [83][85]