Shares declined 1.6% following the earnings release, reflecting modest investor caution despite revenue growth at the top end of guidance and stabilization in retention metrics. The market appears wary of an outlook that while confident, offered limited upside surprises or clear inflection points.

• Revenue grew 10% year-over-year to $73.9 million, hitting the top end of guidance.
• Non-GAAP operating profit also came in at the top end of guidance, underscoring disciplined cost management.
• Normalized free cash flow was $6.6 million, marking 10 consecutive quarters of positive cash generation.
• Net revenue retention stabilized at 98% overall, with stronger performance (103%) in accounts over $100,000, though without notable acceleration.
• AI-related revenues expanded, supported by new contract wins and product launches including AI Studio, but market response suggests continued skepticism on near-term scaling impact.