“We remain committed to sustaining GAAP profitability, while at the same time increasing investment in both the U.S. to capture the momentum we are seeing, and in the development of advanced software capabilities, particularly our AI-driven offerings.”

In context

“ncial condition of these businesses. Turning to margin and expense. Adjusted gross margin, which excludes stock-based compensation expense, was 81% for the quarter. First quarter adjusted income from operations, which excludes stock-based compensation expense, was $125 million, representing an adjusted operating margin of 24%, 600 basis points ahead of our prior guidance and marking the third consecutive quarter of expanding adjusted operating margins. These results demonstrate our ability to drive strong revenue growth while managing cost effectively, with first quarter adjusted expenses up only 1% sequentially to $400 million. We continued to manage expense growth by optimizing operations in G&A, capturing cloud efficiencies and focusing our headcount investments in key strategic areas. We remain committed to sustaining GAAP profitability, while at the same time increasing investment in both the U.S. to capture the momentum we are seeing, and in the development of advanced software capabilities, particularly our AI-driven offerings. We believe that artificial intelligence, including large language models, will prove transformational for our business and for enterprises in the government and commercial context. To that end, we are rebalancing our efforts and investment to capitalize on these developments. In the first quarter, we generated income for operations of $4 million, our first-ever quarter of GAAP operating income. This reflects our laser focus on profitable growth and continued management of our stock-based compensation. While we expect to see stock-based compensation expense trend up through the remainder of the year, we remain focused on GAAP net income and operating profitability. Turning to net income. First quarter GAAP net income was $17 million, our second consecutive quarter of GAAP profitability. Th”