“While we expect adjusted operating margin to continue to expand for the second half of the year, as in prior years, we expect a significant ramp in expenses in the third quarter due to the seasonality of new hire starts.”

In context

“over-year and 27% sequentially. As a reminder, RPU 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 $464 million, representing an adjusted operating margin of 46%. Q2 adjusted expense was $539 million, up 9% sequentially and 27% year- over-year, primarily driven by our continued investment in AIP and technical hiring. While we expect adjusted operating margin to continue to expand for the second half of the year, as in prior years, we expect a significant ramp in expenses in the third quarter due to the seasonality of new hire starts. We remain committed to investing in the most elite technical talent as well as a product pipeline and AI production use cases, all while delivering on our goals of sustained GAAP profitability. Second quarter GAAP operating income was $269 million, representing a 27% margin. Second quarter GAAP net income was $327 million, representing a 33% margin. Second quarter stock-based compensation expense was $160 million and equity related employer payroll tax expense was $35 million. Second quarter GAAP earnings per share was $0.13. Second quarter adjusted earnings per share was $0.16. Additionally, our combined revenue growth and adjusted operating margin accelerated to 94% in the second quarter, an 11-point increase to a Rule of 40 score from the prior quarter, and our eighth consecutive quart”