The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Taz Koujalgi - Roth Capital Partners LLC - Analyst
: Got it. Very helpful. And then maybe for David. David, can you comment on the duration -- the contract duration this quarter. If I look at the
mix of RPO versus CRP, it looks like the duration probably went down year-over-year slightly. Maybe just clarify if that was the case.
And when you think about the duration contract duration trends going forward?
Question: Taz Koujalgi - Roth Capital Partners LLC - Analyst
: Got it. Just a few more for me. So strong numbers for me guys overall this quarter looks very good. But if you look at the professional services
line, the PS line, I think it was a little bit lighter versus last quarter. Any comment on if deployments were pushed out?
Or anything that -- to help us understand why that services line seems a little bit lighter than what it was last quarter?
Question: Taz Koujalgi - Roth Capital Partners LLC - Analyst
: No, no. David, you mentioned that you gave us a guide of 13% of full year revenues with the services, right? So that's where, I guess, we
got cut off.
Question: Taz Koujalgi - Roth Capital Partners LLC - Analyst
: Got it. Very helpful. One last one for me, David. I know you gave us a guide of -- for the full revenue for the year. But if you can give us some
more details or some more color on how to think about the mix between software, software services and PS because I know last -- if I look
at the -- if I look at Q4 of last year, I think we had a big jump in software revenue.
I think Q3 to Q4, there's a big jump seasonally in software revenue. So I just want to make sure that we don't end up mismodeling the
different line items for revenue. So maybe if you can, some more color or some more priority on how to think about the mix of the revenue
between software services and NPS?
Question: Taz Koujalgi - Roth Capital Partners LLC - Analyst
: Got it, very helpful. Thank you.
Question: Charlie Zhou - Evercore ISI - Analyst
: This is Charlie for Peter at Evercore. Just a quick one from me. This quarter, we obviously saw a very impressive margin outperformance
both on gross margin and operating margin. And I know you guys have provided a gross margin target of 73% by FY28, which you guys
have already achieved this quarter. Could you please just help us to maybe just break down the primary drivers of the margin outperformance?
And also, how should we think about the gross margin expansion trajectory from here? And also any updated color on the adjusted EBITDA
margin as well? Thank you.
Question: Charlie Zhou - Evercore ISI - Analyst
: Thank you very much. Maybe just to follow up on the adjusted EBITDA margin. Based on your guidance, you're basically projected to achieve
around 12% adjusted EBITDA margin by fiscal '26 and you guys have provided a 20% -- greater than 20% target for fiscal '28. Should we
think about the 800 basis points expansion from here is more linear, like 400 basis points in '27 and maybe 400 basis points in '28? Is that
the correct way to think about it?
Question: Charlie Zhou - Evercore ISI - Analyst
: Awesome. Sounds good. Thank you very much.
| 
