Financial Data and Key Metrics Changes - Total revenue grew to $183 million, up 8% year-over-year [28] - Subscription revenue increased by 8%, while services revenue grew by 17% due to accelerated customer go-lives and implementations [28] - Annual recurring revenue (ARR) reached $702 million, up nearly 10%, with a 1.5-point benefit from foreign exchange [28] - Remaining performance obligations (RPO) grew 23% to $1.1 billion, with current RPO accelerating to 13% [29] - Non-GAAP operating margin was nearly 25%, and non-GAAP net income margin was 25% [31] Business Line Data and Key Metrics Changes - Strategic products accounted for 33% of sales, with notable demand for intercompany and invoice-to-cash solutions [30] - The attach rate for strategic products remained healthy, reflecting the effectiveness of the go-to-market strategy [30] - The number of customers paying over $1 million in ARR increased by 20% to 85, while those paying over $250,000 rose by 14% [11] Market Data and Key Metrics Changes - SAP customers represented 26% of revenue at the end of the quarter [31] - The company serves approximately 70% of the Fortune 100, up from 50% in 2022, indicating a strong market position [7] Company Strategy and Development Direction - The company is transitioning to a unified, intelligent platform for CFOs, moving away from transactional subscriptions based on seats [6] - A partner-first approach has been adopted, focusing on larger mid-market and mega enterprise customers [6] - The company aims to drive revenue growth back into double digits while expanding operating margins [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's structural strength and the ability to execute the strategy effectively [7] - The company anticipates that lower mid-market headwinds will subside, leading to improved retention profiles in 2026 [10] - Management highlighted the importance of trust, partnership, and innovation in driving customer engagement and deal sizes [10] Other Important Information - The company completed its Google Cloud migration, which is expected to unlock further margin potential [12] - A new category of implementation agents has been released to standardize the engagement process, accelerating time to value for customers [27] Q&A Session Summary Question: Drivers behind RPO and customer adds above $250K - Management attributed the increase in RPO to the multiyear renewal strategy and longer contracts from new customers [37][38] Question: AI strategy and automation potential - Management noted that AI can significantly reduce mundane tasks for accountants, with a focus on demonstrating value and accuracy [39][40][41] Question: Customer adoption of AI - Management indicated that there is strong interest in AI adoption, with customers being cautious about policies and controls [41] Question: Dynamics of platform pricing and spending uplift - Management discussed the positive impact of the platform pricing model on average selling prices and longer-term contracts [38][39]

Financial Data and Key Metrics Changes - Total revenue grew to $183 million, up 8% year-over-year [28] - Subscription revenue increased by 8%, while services revenue grew by 17% due to accelerated customer go-lives and implementations [28] - Annual recurring revenue (ARR) reached $702 million, up nearly 10%, with a 1.5-point benefit from foreign exchange [28] - Remaining performance obligations (RPO) grew 23% to $1.1 billion, with current RPO accelerating to 13% [29] - Non-GAAP operating margin was nearly 25%, with non-GAAP net income margin at 25% [11][31] Business Line Data and Key Metrics Changes - Nearly three-quarters of new bookings leveraged the platform, with strategic products representing 33% of sales [14] - Customers paying over $1 million in ARR increased by 20% to 85, while those paying over $250,000 rose by 14% [11] - The strategic products attach rate remained healthy, contributing to sales growth [30] Market Data and Key Metrics Changes - SAP customers accounted for 26% of revenue at the end of the quarter [30] - The enterprise customer cohort maintained a revenue renewal rate of 95% and a net revenue retention rate of 107% [9] Company Strategy and Development Direction - The company is transitioning to a unified, intelligent platform for CFOs, focusing on larger mid-market and mega enterprise customers [6][7] - A shift to a platform model is changing customer relationships from transactional subscriptions to long-term strategic partnerships [10] - The company aims to drive revenue growth back into double digits while expanding operating margins [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's structural strength and the ability to execute its strategy [7] - The company anticipates that lower mid-market headwinds will subside, improving retention profiles in 2026 [10] - Management highlighted the importance of trust, partnership, and innovation in driving customer investment [10] Other Important Information - The company completed its Google Cloud migration, unlocking further margin potential [12] - A new category of implementation agents has been released to standardize the engagement process, accelerating time to value for customers [26] Q&A Session Summary Question: Drivers behind RPO and customer adds above $250K - Management attributed the increase in RPO to the success of the multiyear renewal strategy and longer contracts from new customers [37][38] Question: AI strategy and automation potential - Management acknowledged the opportunity to automate mundane tasks for accountants and emphasized the importance of demonstrating ROI and reliability in AI solutions [39][40][41] Question: Customer adoption of AI and deal dynamics - Management noted that customers are cautiously adopting AI, focusing on solutions that provide demonstrable value while considering regulatory requirements [44][46] Question: Margin dynamics and expense timing for 2026 - Management explained that Q1 typically has the lowest operating margin due to payroll taxes and sales kickoff costs, with expectations for margin expansion throughout the year [50][51] Question: Shareholder value and governance mechanisms - Management emphasized the board's commitment to fiduciary responsibilities and the importance of delivering performance to benefit shareholders [63][64] Question: Customer feedback and product development - Management highlighted the importance of customer feedback and competitive intelligence in shaping product development and ensuring alignment with market needs [71][73]

Financial Data and Key Metrics Changes - Total revenue grew to $183 million, up 8% year-over-year [26] - Subscription revenue increased by 8%, while services revenue grew by 17% due to accelerated customer go-lives and implementations [26] - Annual recurring revenue (ARR) reached $702 million, up nearly 10%, with a 1.5-point benefit from foreign exchange [26] - Remaining performance obligations (RPO) grew 23% to $1.1 billion, with current RPO accelerating to 13% [28] - Non-GAAP operating margin was nearly 25%, and non-GAAP net income margin was 25% [30] Business Line Data and Key Metrics Changes - Nearly three-quarters of new bookings leveraged the platform, with strategic products representing 33% of sales [12][30] - The number of customers paying over $1 million in ARR increased by 20% to 85, while customers paying over $250,000 rose by 14% [10] - The strategic products attach rate remained healthy, reflecting the success of the go-to-market teams [29] Market Data and Key Metrics Changes - SAP customers accounted for 26% of revenue at the end of the quarter [30] - The enterprise customer cohort maintained a revenue renewal rate of 95% and a net revenue retention rate of 107% [8][29] - Demand was notably strong for intercompany and invoice-to-cash solutions, both achieving record years [29] Company Strategy and Development Direction - The company is transitioning to a unified, intelligent platform for CFOs, moving away from transactional subscriptions based on seats to long-term strategic partnerships [4][9] - The focus is on larger mid-market enterprise and mega enterprise customers, with a partner-first approach [4][5] - The company aims to drive revenue growth back into double digits while expanding operating margins in line with multi-year financial targets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's structural strength and the ability to execute the strategy effectively [5] - The company anticipates that lower mid-market headwinds will subside, leading to an improving retention profile in 2026 [9] - Management expects total GAAP revenue for Q1 2026 to be in the range of $180 million-$182 million, representing approximately 8%-9% growth [32] Other Important Information - The company completed its Google Cloud migration, unlocking further margin potential [11] - The acquisition of WiseLayer is seen as a technology buy that will accelerate the company's AI capabilities [76][80] - The company returned approximately $34 million to shareholders through share repurchases in the quarter [31] Q&A Session Summary Question: Drivers behind RPO and customer adds above $250K - Management attributed the increase in RPO to the multiyear renewal strategy and longer contracts from new customers [36][37] Question: AI strategy and automation potential - Management noted that AI can help automate mundane tasks for accountants, with a focus on demonstrating value and ROI [38][39][40] Question: Customer adoption of AI and deal dynamics - The company is seeing increased interest in AI solutions, with customers adopting features like Journal Risk Analyzer and Verity [44][45][46] Question: Margin dynamics and expense timing for 2026 - Management explained that Q1 typically has the lowest operating margin due to payroll taxes and sales kickoff costs, with expectations for margin expansion throughout the year [48][49][50] Question: Shareholder value and governance mechanisms - Management emphasized the board's commitment to fiduciary responsibilities and the importance of delivering performance to benefit shareholders [62][63] Question: Customer feedback and product development - The company gathers feedback from customers and partners to inform product development and ensure alignment with market needs [72][74]