◇ INVESTOR COMMUNICATIONS · LOCKED WITH FILING

Earnings release · FY2027 · Q3 close

Press release narrative and analyst Q&A pre-draft, auto-generated from the filed disclosure pack. Every line shows the source disclosure section and Merkle anchor — management cannot make statements on the earnings call that contradict what was filed. Reg FD risk eliminated by construction.

Locked with 10-Q filing · disclosure pack v3 — filed Apr 28, 2026 · 14:32 ET · Merkle root sha256:9f1a4c…7e3d anchored to Sigstore Rekor entry 28499183. All statements below are constrained to language consistent with the filing.

Verify

Release sections

4 carry safe-harbor flag

Analyst Qs prepped

1 require CFO discretion

Filing alignment

100%

No divergent language detected

Release window

Apr 30

4:01 pm ET · PR Newswire

Earnings release narrative

6 sections · auto-drafted

§1

Headline

FACTUAL

Revenue grew 28.5% to $49.7M, ahead of consensus of $48.1M, driven by 32% subscription growth and continued enterprise traction. Remaining performance obligations expanded to $187.4M, providing 13-month forward visibility.

Pulled from Disaggregation §1 + RPO §3·Open in disclosure pack ·Open in MD&A

§2

Key performance indicators

NON-GAAP

Revenue: $49.7M (+28.5% YoY) · RPO: $187.4M (+24% YoY) · Contract liability balance: $84.2M (down $2.1M from Q2 close as deferred revenue converted faster than billings) · Net retention rate: 118% (driven by seat expansion in 47 enterprise accounts).

Pulled from Totals §1 + Contract balances §2·Open in disclosure pack ·Open in MD&A

§3

Revenue by stream

FACTUAL

Subscription revenue (recognized over time, 77% of total) grew 32% to $38.4M. Onboarding services (point-in-time) accelerated 33% to $2.2M reflecting larger enterprise contracts in the period. Support revenue grew 23% to $5.8M. Usage-based revenue (recognized as a series under ASC 606-10-25-15) grew 51% to $3.3M as enterprise customers expanded API consumption.

Pulled from Disaggregation table §1·Open in disclosure pack ·Open in MD&A

§4

Significant judgments narrative

JUDGMENT

We capitalized $1.2M of contract-acquisition costs under ASC 340-40 in the period, amortized over a 60-month expected customer life. One material modification was treated as a separate contract under ASC 606-10-25-12; the modification of contract #2027-0481 (cumulative catch-up) increased period revenue by $240k. Distinctness judgment on bundled implementation services remains the most-flagged area; current quarter saw 4 low-confidence judgments routed to controller review.

Pulled from Significant judgments §4 + Contract costs §5·Open in disclosure pack ·Open in MD&A

§5

Forward outlook

FORWARD-LOOKING

Of the $187.4M remaining performance obligation balance, we expect to recognize $84.2M in the next 12 months, $87.4M in months 13–24, and the remaining $15.8M thereafter. FY2027 revenue guidance of $195–200M is unchanged. We expect FY2028 revenue growth in the range of 22–26%.

Pulled from RPO conversion timing §3·Open in disclosure pack ·Open in MD&A

§6

Non-GAAP reconciliation

NON-GAAP

GAAP gross margin of 76.3%; non-GAAP gross margin of 79.1% adjusts for stock-based compensation. ARR (annualized recurring subscription + support revenue at period end) is $191.4M, +29% YoY. Free cash flow conversion of 92% on a trailing-twelve-month basis. Full reconciliation tables in Appendix B of the press release.

Pulled from Non-GAAP measures §9·Open in disclosure pack ·Open in MD&A

Analyst Q&A · pre-drafted answers

10 anticipated questions · sourced from disclosures

The platform predicts the questions sell-side analysts will ask this quarter based on disclosure deltas vs prior period (new judgments, modifications, divergence, non-GAAP measures). Answers are pre-drafted from the filing — CFO can read verbatim or paraphrase within the constrained source language.

RPO grew 24% YoY but billings grew 31% — why the divergence, and what should we expect in the next 2 quarters?

RPO·Pulled from RPO conversion timing §3 + Billings supplement §8

◐MED · narrative judgment

Pre-drafted answer · constrained to filed language

The 7-point gap reflects timing of multi-year contract closures: bookings concentrated in Q3 carry forward into RPO over the renewal cycle. Of the $187M RPO, $84M will be recognized in the next 4 quarters; the conversion curve is disclosed in §3 of the disclosure pack. Q4 RPO growth should normalize closer to billings growth as the Q3 cohort begins amortizing.

Open source disclosure

ARR is $191M but trailing-twelve-month revenue is only $172M. How should I reconcile?

ARR·Pulled from Non-GAAP measures §9

✓LOW · formula-derived

Pre-drafted answer · constrained to filed language

ARR annualizes period-end recurring subscription + support revenue ($15.95M monthly run-rate × 12). TTM revenue includes onboarding (point-in-time) and usage-based components which are not annualized. The $19M gap represents the run-rate uplift from net new bookings closed in the period that have not yet flowed through TTM. Reconciliation in Appendix B.

Open source disclosure

You disclosed a $240k cumulative catch-up modification — what was the underlying change and is it recurring?

Modifications·Pulled from Significant judgments §4 (modifications)

◐MED · narrative judgment

Pre-drafted answer · constrained to filed language

The modification on contract #2027-0481 added 50 seats and extended the term by 12 months. It was treated as a separate contract under ASC 606-10-25-12 (distinct goods at standalone selling price). The $240k catch-up reflects revaluation of prior-period recognition under the new total. Modifications of this size are infrequent — we recognized 4 in FY2027 vs 6 in FY2026 — and are not expected to recur at this magnitude.

Open source disclosure

Pending judgments increased from 12 to 17 quarter-over-quarter — what changed?

Judgments·Pulled from Significant judgments §4

✓LOW · formula-derived

Pre-drafted answer · constrained to filed language

The increase reflects 5 new contracts in the SaaS / cloud vertical with bundled implementation services where distinctness routing requires controller review. Of the 17, 4 are low-confidence (hard-blocked until reviewer ratifies) and 13 are medium-confidence pending automatic acceptance after controller pass. Resolution timing is within current period; no impact on filed revenue.

Open source disclosure

How does the IFRS 15 / ASC 606 divergence on sales-based royalties affect peer comparability?

Standards·Pulled from Standards divergence §6

◐MED · narrative judgment

Pre-drafted answer · constrained to filed language

Our usage-based component would defer recognition under IFRS 15 until subsequent sale or usage occurs (IFRS 15.B63), whereas under ASC 606 we recognize it as a series of distinct services (606-10-25-15). The divergence is immaterial in this period (<1% of revenue) but is disclosed in §6 of the disclosure pack. Peers reporting under IFRS 15 may show different timing on similar arrangements.

Open source disclosure

You introduced an "ARR" measure this quarter — why now, and what is the policy?

Non-GAAP·Pulled from Non-GAAP measures §9

◐MED · narrative judgment

Pre-drafted answer · constrained to filed language

ARR is a supplemental measure aligned with how we manage the business and how investors model SaaS coverage. Definition: subscription + support revenue × 12, measured at period end. We will report ARR consistently each quarter going forward. The measure is fully reconciled to GAAP revenue in Appendix B; no period-over-period definition changes are expected.

Open source disclosure

Contract liability balance declined $2.1M sequentially — should we read this as deferred-revenue weakness?

Cash·Pulled from Contract balances §2 + Cash flow §7

✓LOW · formula-derived

Pre-drafted answer · constrained to filed language

No. The decline reflects revenue recognized faster than billings collected in the period — typical for Q3 close where renewal billings concentrate in Q4. The 12-month roll-forward shows the balance has grown 18% YoY despite quarter-over-quarter compression. Cash collection is independent of recognition under ASC 606 — see §7 of the disclosure pack.

Open source disclosure

Net retention rate of 118% — composition by expansion vs upsell vs churn?

Retention·Pulled from Cohort analytics appendix

◐MED · narrative judgment

Pre-drafted answer · constrained to filed language

Of the 18 percentage points above 100%: ~14 points from seat expansion (existing customers adding capacity), ~5 points from upsell (premium-tier moves), offset by ~1 point of churn. Methodology: cohort analysis of revenue from accounts present at period start, measured at period end. Reported on a trailing-twelve-month basis to smooth seasonality.

Open source disclosure

Onboarding services were $2.2M this quarter — point-in-time recognition. What if a customer disputes go-live?

Judgments·Pulled from Significant judgments §4

◐MED · narrative judgment

Pre-drafted answer · constrained to filed language

Point-in-time recognition occurs when control transfers — defined in our policy as customer go-live confirmation. If a dispute arises post-go-live, the matter is treated as a contract modification or, if material, a re-assessment of original control transfer. We have not had a material reversal of onboarding revenue in 8 quarters. Policy disclosed in §4.

Open source disclosure

Q10

FY2027 guidance unchanged at $195–200M — what gets us to the high end vs low end?

Guidance·Pulled from RPO conversion §3 + management commentary

⚠HIGH · CFO discretion

Pre-drafted answer · constrained to filed language

The range reflects (a) Q4 net new bookings — $11M to $15M is the planning band — and (b) usage-based revenue from existing enterprise accounts, which has shown +51% growth this quarter. The high end requires sustained usage acceleration; the low end assumes Q4 bookings normalize to Q3 levels. RPO conversion in next 12 months is locked at $84M.

CFO discretion required. Answer touches forward-looking commentary and management judgment that go beyond the filed disclosure. Pre-call review by Legal recommended.

Open source disclosure

Anti-divergence enforcement. Before the earnings release publishes, the platform hash-verifies every quoted number and material claim against the filing manifest. Statements that contradict the filed disclosure are hard-blocked from publish until reconciled. This eliminates the most common Reg FD risk — IR teams unintentionally going beyond what was disclosed in the 10-Q. View the filing-to-IR linkage in the audit trail.