Shares fell 5.3% as investors reacted negatively to the lowered full-year guidance amid signs of decelerating growth in key segments and margin pressures. The disappointing outlook and ongoing challenges in seat-based software sales amid AI-induced market confusion weighed on sentiment.

• Q1 revenue grew just 1.5% year-over-year to $310 million, indicating clear deceleration.
• Adjusted operating income margin improved by over 2 points YoY to 35%, but margin expansion faces pressure from near-term headwinds.
• Non-seat-based Data-as-a-Service offerings grew over 20% YoY and now represent nearly 20% of the business, highlighting a strong but insufficient growth driver.
• Management lowered full-year guidance due to macro worsening and AI-related market confusion causing purchasing pauses, especially in core software seats.
• Significant cost reductions and restructuring efforts are underway to improve operating margins and shift focus toward data-led, consumption-based revenue models.