“We continue to expect the expenses to ramp through the back half of the year as we invest in the product pipeline and hard technical problems in debottlenecking the journey from prototype to production that Shyam just outlined.”

In context

“r-year and 5% sequentially. As a reminder, RPO is primarily comprised of our commercial business as it does not take into account contracts with an initial term of less than 12 months and contractual obligations that fall beyond termination for convenience clauses, both of which are common in most of our government business. Turning to margin and expense. Adjusted gross margin, which excludes stock-based compensation expense was 83% for the quarter. Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes, was $254 million, representing adjusted operating margin of 37% and marking the seventh consecutive quarter of expanding adjusted operating margins. Q2 adjusted expense was $425 million, up 4% sequentially and 7% year-over-year. We continue to expect the expenses to ramp through the back half of the year as we invest in the product pipeline and hard technical problems in debottlenecking the journey from prototype to production that Shyam just outlined. We remain focused, however, on calibrating expense growth below revenue growth for the full year in order to continue delivering on our goals of sustained GAAP profitability and operating income. In the second quarter, we generated GAAP operating income of $105 million, representing a 16% margin, our sixth consecutive quarter of GAAP operating income, and fifth consecutive quarter of expanding GAAP operating margins. We generated second-quarter GAAP net income of $134 million, representing a 20% margin, our seventh consecutive quarter of GAAP profitability. Second-quarter adjusted earnings per share was $0.09 and GAAP earnings per share was $0.06. Additionally, our combined revenue growth and adjusted operating margin accelerated to 64% in the first quarter, a 7-point increase to our Rule”