Financial Data and Key Metrics Changes - For Q2 2025, revenue was $184.6 million, up 14.6% year over year, with subscription revenue growing 15.7% and cloud revenue increasing by 29.9% [5][26] - Adjusted EBITDA rose to $38.4 million, representing an EBITDA margin of 20.8% [5][30] - Annual recurring revenue (ARR) grew 16.1% to $636.6 million, with average annual revenue per customer increasing 12.7% to $142.6 thousand [5][27] - Gross revenue retention (GRR) remained at 95%, while net revenue retention (NRR) decreased to 108%, down from 109% in Q1 2025 [6][28] Business Line Data and Key Metrics Changes - Subscription revenue increased to $157.8 million, while services revenue grew 8.3% to $26.7 million [27] - Cloud revenue was $86.2 million, up 29.9% year over year, with Ecosio contributing $3.4 million to revenue [27] - Ecosio's ARR reached $10.8 million, a 33% increase from the prior quarter [13][27] Market Data and Key Metrics Changes - The company noted a slowdown in ERP migrations, elongating deal cycles and impacting pipeline build [6][7] - In Europe, there was strong momentum driven by the upcoming e-invoicing mandates, particularly in Belgium, France, and Germany [13][20] Company Strategy and Development Direction - The company is focused on leveraging cloud ERP upgrade cycles and addressing regulatory changes globally to drive growth [8][11] - Investments in AI and e-invoicing solutions are prioritized to enhance customer experience and operational efficiency [15][16] - The company aims to maintain a strong position in the enterprise market, with a focus on expanding its global compliance platform [14][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic factors impacting customer activity and necessitating a reduction in full-year guidance [4][6] - Despite short-term challenges, management remains confident in long-term growth drivers, including e-invoicing and cloud migrations [8][48] - The company is taking steps to control expenses and improve adjusted EBITDA margins while focusing on long-term strategic goals [7][25] Other Important Information - The company ended Q2 2025 with over $284.4 million in unrestricted cash and cash equivalents, along with $300 million of unused availability under its line of credit [31] - Guidance for Q3 2025 expects revenues of $190 million to $193 million and adjusted EBITDA of $38 million to $40 million [32] Q&A Session Summary Question: Impact of macro factors on guidance - Management indicated that the macro impact primarily affects entitlements and deal activity, leading to a cautious revenue outlook [36][37] Question: E-invoicing adoption rates - Management noted that the end-to-end offering is differentiating and that early customers are expanding their coverage, indicating strong adoption [40][41] Question: Long-term growth outlook - Management remains confident in long-term growth despite short-term deceleration, citing strong regulatory tailwinds and customer durability [46][48] Question: Changes in hiring plans - Management is adjusting hiring plans to focus on strategic areas while leveraging internal efficiencies [49][50] Question: Progression of the quarter - Management observed a strong start in Q1, but noted softness in May and June, impacting deal cycles [55][56] Question: SAP deal activity - Management indicated that uncertainty in the macro environment is causing delays in cloud transformation decisions among customers [57][58] Question: E-invoicing opportunities in Europe - Management highlighted the competitive landscape and the importance of being a single provider across multiple jurisdictions [99][100]