Alex Zukin

Aidan said carrier fees added about 5 points to DBNE, which still rose about 1 point ex-fees, and gross profit should keep growing at a similar rate to organic revenue.

Khozema said AI tailwinds are still early in Messaging and concentrated in Voice; Thomas cited two AI-native customers now at $6 million and $9 million scale.

Aidan said Messaging grew about 25% with 7 points from fees, broad-based across the U.S. and international; Thomas cited self-service Voice up 45% and Voice add-ons in the mid-30s.

Aidan called the 10% to 11% Q1 guide the highest in over 3 years, cited usage-based prudence for the year, and tied gross profit to mix and carrier savings.

Thomas cited broad voice adoption across self-service, ISVs and enterprise but did not split voice AI from traditional voice or give a 2026 voice outlook.

Khozema credited self-serve accounts graduating into large ISV relationships but declined to give financial details on the record renewal.

Aidan said the adds were largely e-mail after the free tier ended and that high-margin non-messaging growth should help margins, but gave no timing.

CFO said gross margin excluding fees and FX would have been roughly flat versus Q1, with fees about 30 basis points of headwind and FX most of the rest.

CEO said voice is performing well on voice AI and other customers plus new products, but messaging's size and growth will keep weighing on margin mix.

CFO declined to forecast gross margin, saying it depends on messaging and termination mix and will vary quarter to quarter.

CFO cited non-repeat of year-ago hosting credits and a higher international messaging mix, adding messaging mix will drive gross margin near term.

CEO said Twilio is the market leader in key categories and growing faster than peers, and plans to reinvest that strength in R&D.

CFO said usage-based revenue limits visibility so planning stays prudent, while the Q1 guide sits a point above the prior quarter's guide.

CFO detailed a $17 million charge to fully reserve Brazilian telecom customer OI after its payments slowed, a 140 basis point margin hit.

Shantanu declined to split the freemium vs deferred-pricing headwinds, defending the choice to prioritize new-user growth over short-term pricing relief.

Shantanu gave second-half phasing color and said the payback plays out over 2027 rather than a specific payback period.

Shantanu reframed the timing around early freemium success and surging adobe.com traffic giving conviction to lean in now.

Shantanu explained traffic routing to freemium rather than immediate ARR creates a phase shift. Reaffirming FY2026 targets implies double-digit ending book growth for remaining three quarters. David added acceleration expected in back half as freemium users hit paywalls and convert.

Anil explained brand visibility is top of mind for marketers especially with LLM channels. Adobe and SEMrush together would offer a comprehensive solution across owned media, earned media like LLMs, and search engines. Shantanu added it enables unified spend optimization across search and generative engine channels.

Anil described the full LLM-to-purchase funnel consolidating. AEP and Apps positioned for direct consumer relationships, GenStudio for content velocity.

David said growth was top-to-bottom: CC Pro migration, 20%+ of Firefly growth from new-to-Adobe users, strong AI Assistant contribution, and GenStudio enterprise automation.

Shantanu said every ad platform wants Adobe partnership for GenStudio. Anil noted ad platforms' primary goal is growing ad revenue, which requires optimized creative from Adobe's marketing stack.

David highlighted data-driven operating model applied to web journeys and enterprise adoption. Express onboarded 8,000 new businesses in Q2 with logos like Cisco, NFL, Premier League.

David gave tenure-based color (AI Assistant ~4 quarters, Firefly Services ~4 quarters, GenStudio launched late Q4). Shantanu added creative represents the majority so far.

Shantanu said Adobe will have own commercially safe Firefly models plus support third-party models in Firefly app and Photoshop, similar to plug-in ecosystem.

David explained the p×q+v growth algorithm and noted FY2025 will tilt toward new users and new products over pricing. Dan said the company changed to ARR book of business growth methodology, viewing quarterly profiles as less important.

Miller attributed the gap to the structural bookings-to-revenue lag, denied unusual slippage, and reaffirmed the full-year outlook.

Miller was candid that AI is still a very small share of ACV and repeated the 12 to 18 month materiality horizon.

Brian said nothing pulled forward or unusual. No multi-million SaaS deals - just solid volume breadth. Separately, statewide digital titling deal worth $20M+ transaction ARR at ramp not in SaaS bookings. Good rebound from easier Q1 2025 comp but strong regardless.

Brian said FCF margin range a point higher than prior year, earnings growth is primary driver, cash taxes slightly higher than previously expected. Lynn said balance sheet and FCF strongest ever at Tyler, enabling both M&A and buybacks.

Lynn said sales cycles back to normal after earlier 2025 delays. Not seeing meaningful AI impact on current sales acceleration or deceleration. Brian noted FTR acquisition not in current guidance, will update after close.

Brian built up 2026 SaaS growth from backlog (prior year bookings still phasing in), growing flips (both number and size), add-on sales to existing customers (majority of new SaaS bookings), and annual renewal price increases.

Lynn said M&A contribution for 2026 likely around 1%. Signal is about balance sheet and management bandwidth now supporting more proactive approach versus reactive broker-driven deals, returning to pre-NIC M&A posture.

Lynn said no conservatism embedded in H2 outlook despite improving macro backdrop. Alex followed up on FCF raise mechanics vs Section 174 benefit.

Brian explained the 100bps delta beyond the 200bps tax benefit comes from higher earnings, especially strong transaction revenue cash flow characteristics.

Brian said current-year sales have less impact on current-year revenue due to implementation lag. Flips are biggest variability driver for SaaS revenue range.

Brian explained ~$100M of development in COGS will shift to R&D over 3-4 years as products complete SaaS transition, plus incremental AI investment.

Lynn described a flywheel effect from healthy budgets, strong execution, and client references. Brian noted AI is not yet a big driver of flips or new business.

Gerrit said monetization is measured against customer labor spend, not software spend, but the focus is adoption; Zane cited ~$600M AI ARR growing into FY2028.

Aneel acknowledged some Q4 deal slippage closed in Q1 but emphasized AI products as the primary growth driver, with organic agents gaining traction. Zane confirmed some DIA revenue recognized in Q1, expected to be spread through the year unlike last year's back-end loading.

Aneel framed Workday as an evolving layer on top of hyperscalers with consumption monetization for all API access. Gerrit detailed tiered pricing: basic API calls, richer data cloud context, and premium agent APIs that complete meaningful work. Third parties pay via Flex Credits regardless of approach.

Zane estimated acquired revenue contributes roughly one point of FY27 growth, but noted significant broader portfolio synergy beyond just acquired revenue. High bar on M&A unchanged, evaluating technology, culture, people and integration fit.

Carl cited momentum from acquired companies (Paradox, Sana), organic product innovation, new market entries (Middle East, India), and strong international performance as growth vectors into FY27.

Garrett Katzmeyer (new President of Product & Technology) highlighted recruiting agent (54% increase in recruiter capacity), contract intelligence, and twelve agents covering hire-to-retire and procure-to-pay. Carl said adoption is broad across all market segments.

Carl described multiple monetization vectors: platform AI, standalone SKUs (Recruiting Agent, Extend Pro, Evisort), and Agent System of Record for third-party agents. Both seat-based and consumption-based models.

Carl confirmed it is a timing element that does not change ACV. Some deals have accounting structures where revenue recognition comes later and cRPO cannot fully capture the deal value.

Carl confirmed no election impact on Q3 execution, results were in-line with internal expectations with a good bookings quarter.

Sasan separated the structural advantage in assisted (88% of TAM, 38% customer growth) from the DIY fix needed for price-sensitive <$50k filers. Emphasized the workforce reduction was done from a position of strength and is unrelated to DIY tax issues.

Sasan described two strategic pivots: treating accountants as customers (not just channel) on a unified platform, and expanding the sales aperture beyond existing base. Productivity improving, reflected in 37% QoQ IES contract growth.

Sasan cited three durable vectors: assisted tax disruption, mid-market acceleration (contracts up 50% QoQ, accountants contributing), and AI+HI pricing power. On Mailchimp, Sandeep said all options on the table including portfolio evaluation.

Sandeep cited AI-driven improvements across technology, sales, customer success, finance, legal, and HR. Not just AI efficiencies but broader spend discipline and scaling what works from marketing tests.

Sasan described both push and pull dynamics. Customers overspend on disparate apps with trapped data. 300% ROI from consolidation. Customers pay Intuit more but save money overall. Lineup evolution to motivate consolidation.

Sasan detailed interconnected AI agents (customer, payment, project management, accounting). Pricing includes value-based increases plus consumption-based modules for mid-market.

Sasan characterized SMB demand as stable with expected improvement from rates, jobs, and regulatory relief, not baked into guidance. AI monetization not yet in current year numbers.

Sandeep confirmed spend timing. Revenue outperformance gave flexibility to lean into Q1 investment earlier, particularly Credit Karma campaigns showing strong ROI.

Sanjit framed AI Multicam as additive operational intelligence, not a refresh cycle replacing older products. Direct.

Sanjit said emerging products like waste intelligence are priced as additional SKUs alongside existing products, with agents likely moving to a consumption-based model over time.

Partial answer: pricing model still being determined; management will share more with the summer Beyond launch.

Sanjit attributed the emerging-product inflection to products launched at the customer conference gaining traction after a few months of trials, broadly across products.

Sanjit cited broad traction across routing, commercial nav, maintenance and asset tags but did not stack-rank; pointed to 8% of net new ACV from new products.

Dominic said deal construction did not change and deals closed in May, but declined to quantify the Q1-into-Q2 pull-forward given macro uncertainty.

Stand-in on for Alex Zukin. Dominic said the FY26 guidance philosophy is unchanged versus FY25's initial guide and factors in macro; Sanjit noted customers focus on domestic critical infrastructure.

Dominic called demand consistent; noted a few election-related deal delays that largely closed in Q4 with no material impact.