“We continue to expect to see a more significant increase in expense in 2025 as we invest in the most elite technical talent, the product pipeline, and AI production use cases, all delivering on our goals of sustained GAAP profitability.”

In context

“ear-over-year and 10% 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 82% for the quarter. Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes, was $391 million, representing adjusted operating margin of 44%. Q1 adjusted expense was $493 million, up 8% sequentially and 21% year-over-year, primarily driven by our continued investment in AIP and technical hiring. We continue to expect to see a more significant increase in expense in 2025 as we invest in the most elite technical talent, the product pipeline, and AI production use cases, all delivering on our goals of sustained GAAP profitability. First quarter GAAP operating income was $176 million, representing a 20% margin. First quarter GAAP net income was $214 million, representing a 24% margin. First quarter stock-based compensation expense was $155 million, and employer-related equity tax expense was $59 million. First quarter GAAP earnings per share was $0.08. First quarter adjusted earnings per share was $0.13. Additionally, our combined revenue growth and adjusted operating margin accelerated to 83% in the first quarter, a 2-point increase to our rule of 40 score from the prior quarter on our seventh consecutive quarter of an expanding rule of 40 score. With the increase in our 2025 revenue and adjusted operating income guidance, we are now guiding to a rule of 40 score of 80% for the full year. Turning to our cash flow.”