AI monetization introduces timing and margin friction

As customers ramp consumption over time, this shifts a portion of revenue recognition into future periods. The shift of new AI Teammate sales from ratable to consumption-based recognition, along with the AWM packaging changes, creates a $1.2 million revenue timing impact in the second half. This is roughly split between Q3 and Q4. Note, this is just a timing impact. It does not change anything in customer economics, has no impact on ARR, bookings, billings, deferred revenue, RPO, or cash flow. In addition, this transition also creates approximately 150 basis points of gross margin pressure across Q3 and Q4, reflecting both costs incurred ahead of associated consumption-based revenue recognition and the growing mix of AI products, which currently carry lower contribution margins than our seat-based business.