Topic: AI vs. non-AI native consumption trends, billings metric lag
Key points:
Strong consumption observed not only from AI native customers but also across traditional search, observability, and security businesses.
Q2 was a "remarkable quarter" for large commitments; five deals each exceeded $10,000,000 in total contract value.
Sales-led subscription revenue (key metric) came in at 18% for the year.
CRPO grew 17% (vs. 16% prior year); RPO grew 19% due to strong multi-year commitments.
Billings year-over-year variability attributed to: (1) seasonality—last year had an anomalous weaker Q1 commitment distribution, and (2) a government shutdown affecting the quarter's third month.
ACV growth year-to-date is "stronger" than prior-year year-to-date.
Mgmt stance: Bullish – consumption and commitments broadly strong; management feels "really good" about the rest of the year.