Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Box Inc First Quarter Fiscal 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press Star, followed by the number one on your telephone keypad. If you would like to withdraw that question, again, press Star one. I would now like to turn the conference over to Cynthia Hiponia, Vice President, Investor Relations. Please go ahead. Good afternoon, and welcome to Box's First Quarter Fiscal 2026 Earnings Conference Call. I am Cynthia Hiponia, Vice President, Investor Relations. On the call today, we have Aaron Levie, Box co-founder and CEO, and Dylan Smith, Box co-founder and CFO. Following our prepared remarks, we will take your questions. Today's call is being webcast and will be available for replay on our Investor Relations website at boxinvestorrelations.com. Our webcast will be audio only. However, supplemental slides are now available for download from our website. On this call, we will be making forward-looking statements, including our second quarter and full year 2026 financial guidance, and our expectations regarding our financial performance for fiscal 2026 and future periods, including gross margins, operating margins, operating leverage, future profitability, net retention rates, remaining performance obligations, revenue and billings, and the impact of foreign currency exchange rates and deferred tax expenses, and our expectations regarding the size of our market opportunity, our planned investments, future product offerings, and growth strategies, our ability to achieve our revenue, operating margins, and other operating model targets, the timing and market adoption of and benefits from our new products, pricing models, and partnerships, our ability to address enterprise challenges and deliver cost savings for our customers, the impact of the macro environment on our business and operating results, and our capital allocation strategies, including potential repurchase of our common stock. These statements reflect our best judgment based on factors currently known to us, and actual events or results may differ materially. Please refer to our earnings press release filed today and the risk factors and documents we file with the SEC, including our most recent annual report on Form 10-K for information on risks and uncertainties that may cause actual results to differ materially from statements made on this earnings call. These forward-looking statements are being made as of today, May 27th, 2025, and we disclaim any obligation to update or revise them should they change or cease to be up to date. In addition, during today's call, we will discuss our non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or in isolation from our GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results, in our earnings press release and in the related supplemental slides, which can be found on the IR page of our website. Unless otherwise indicated, all references to financial measures are on a non-GAAP basis. Thank you. With that, let me turn the call over to Aaron. Thank you, Cynthia, and thank you all for joining the call today. We had a strong start to FY26, with results reflecting continued growth in customer demand for Box AI. In Q1, our revenue grew 4% year- over- year, or 5% in constant currency. RPO grew 21% year- over- year, and we saw strong outperformance on billings. We delivered operating margins of 25.3% and EPS of $0.30, $0.04 above our guidance. Following the launch of Enterprise Advanced late in Q4, in Q1, we saw strong momentum in customer adoption as enterprises look to Box to help them transform their AI-driven workflows around content. Examples include a leading university hospital upgraded to Enterprise Advanced and significantly expanded their Box seats. Currently, content is siloed across the organization, and they aim to make Box their single source of truth while unlocking value through Box apps and AI-driven metadata extraction. An investment advisory firm who has already been leveraging the Box AI API for metadata extraction upgraded to Enterprise Advanced to expand their use of diverse AI models through the Box AI Studio. They also plan to use Box apps and dashboards to manage and organize critical business information more strategically and leverage Doc Gen to further streamline operations. A financial services firm and a new Box customer purchased Enterprise Advanced to modernize and secure their critical business data by moving from an outdated on-prem system to Box. Looking to improve their control over sensitive content for personally identifiable information, enhance their user experience, and optimize their retention strategy, they needed a scalable, compliant platform supporting loan origination, HR, and legal functions. In the first quarter, I had the opportunity to meet with well over 100 customers, and it's incredibly clear that there is a fundamental shift in what business will look like in an AI-first world. In fact, tomorrow, we are releasing our first State of AI in the Enterprise Survey, where we recently surveyed over 1,300 IT leaders across a range of industries and geographies. More than half of the respondents expect to see transformation from AI in the next two years, and nearly 90% are already using AI agents in some capacity. Many of the top desired use cases for AI are around working with documents and unstructured data. What's clear is that as companies increasingly go AI-first, they are beginning to rethink how they can take advantage of their enterprise content, from their contracts and invoices to their research data and marketing assets. For years, the value of this content has been limited to only what humans can do with this information, which means most companies have never been able to truly tap into the full value of this information. In a world of AI and AI agents, this finally becomes possible. Inside all of this information are the answers to a company's next product breakthrough, their customer upsell opportunities, how they can hire amazing new talent, or optimize their supply chains. AI agents make this all possible. At Box, we're building out the leading intelligent content management platform to help enterprises fully connect the power of AI to their content. Now, to deliver on this strategy, at our Content+AI Summit in mid-May, we announced our biggest set of AI agent updates ever, designed to transform how organizations work with their content. We unveiled all new capabilities to support AI agents that can do deep research, search, and enhance data extraction on content securely in Box, and all with a focus on openness and interoperability. Imagine being able to have AI agents that can comb through any amount of your unstructured data, contracts, research documents, marketing assets, film scripts, financial documents, invoices, and more to produce insights or automate work. Box AI agents will enable enterprises to streamline a due diligence process on hundreds or thousands of documents in an M&A transaction, correlate customer trends amongst customer surveys and product research data, or analyze life sciences and medical research documents to generate reports on new drug discovery and development. None of this would have been possible even a year ago. With the cost of AI inference dropping, context windows expanding to support larger data sets, reasoning models handling much more complex tasks, and better understanding of designing agentic workflows, this all of a sudden becomes possible. Next, we believe in a world where AI agents work together to complete tasks across platforms. This means that an AI agent from Box could work across an enterprise's entire AI stack. In addition to our newly announced Box AI Agent for Microsoft 365 Copilot and IBM Watsonx Orchestrate, Box AI agents are available or in development with Google Agent Space, Salesforce Agentforce, Slack AI, ServiceNow AI Agent Fabric, and the Zoom AI Companion. Developers can also build custom agents that leverage Box content using the Box MCP server, the Google Agent SDK, and OpenAI's Agents SDK, as well as through their preferred developer and data platforms. Building on these recent announcements, just last week, ChatGPT officially integrated Box as a secure connected data source for their deep research AI agent. Now, instead of moving your data around between each platform that you want to work in, you can just work where you want and have the AI agents coordinate together in the background to get the data that you need from Box. This is the future of software in an era of AI. Finally, we will continue to partner with the broader AI model ecosystem to ensure customers have the choice of any model provider they want to work with. Just in Q1 alone, we saw incredible examples of us sitting at the center of this industry, such as the recent NVIDIA GTC keynote from Jensen mentioning Box, Box joining OpenAI as a launch partner for their Agent SDK, Meta showcasing Box and IBM support for Llama at their latest AI developer event, Box serving as a Day One Grok 3 API launch partner with xAI, and many more. Being neutral to the AI models means that our customers get instant access to the best that AI has to offer on their content instead of having to keep their data stuck with just one particular AI provider. This partner momentum will only increase in Q2 and beyond. Over the coming months, we will be gearing up for BoxWorks in September, which will include our biggest and most exciting announcements we have ever had on this platform. This is the year of AI agents and the ability to drive automation around any kind of workflow with AI. Box will be building out the leading capabilities to help our customers do this with their enterprise content at scale. We look forward to sharing more in early September at BoxWorks. Now, turning to go-to-market, we're continuing to drive Enterprise Advanced momentum across segments and geographies. Even after the large number of early adopters we saw in Q4 bring on Enterprise Advanced, we were pleased to see the continued growth in deals in Q1, our seasonally lowest quarter, with a strong pipeline continuing to build as customers look to drive intelligent workflows in Box. Additionally, we're continuing to drive pricing improvements in our target 20%-40% increase range for these Enterprise Advanced deals. As we've discussed, one of our key initiatives to drive growth is to expand and grow our partner ecosystem, particularly with global and regional system integrators. In Q1, we're already seeing solid momentum in customer wins enabled by our partners. After announcing our partnership with DataBank in March, we had a great win with a local government upgrading to Enterprise Advanced to replace a legacy enterprise content management system. We also partnered with regional SIs in financial services and life sciences with partner-enabled deals to replace legacy systems and automate processes to deliver secure, compliant solutions that are well-suited for regulated environments. Also, in the first quarter, we were excited to announce that we received FedRAMP High authorization, allowing U.S. government agencies and authorized government contractors the ability to leverage Box's intelligent content management platform for highly sensitive data. Finally, before I turn the call over to Dylan, let me discuss how we at Box are building an AI-first company. As Customer Zero, we are driving an AI-first culture as we use Box AI to help us move faster, make better decisions, and automate work. Not only will this drive productivity and innovation, going AI-first as a company is also important for our strategy of building the leading AI platform for enterprise content. Paul Graham famously gave the startup advice of, "Live in the future and then build what's missing." The idea behind this is that the teams that deeply figure out where the world is going will often see the new opportunities that arise far sooner than others. This is what we're doing at Box. Across Box, we are seeing Box AI be leveraged to help transform how we work every day. Internally, we use AI-powered hubs to help answer customer support questions, onboard new sales reps faster, get HR questions answered instantly, and much more. Boxers can access every leading AI model alongside their content to streamline understanding data, reviewing code, or generating new content for marketing assets or product documentation. Boxers are creating custom AI agents to generate call scripts, create more personalized sales materials, or answer RFPs. We use AI agents to extract metadata on policy documents to help streamline internal compliance and document management workflows. Finally, beyond Box AI, we use AI-first coding tools and customer service tools to augment our workforce and drive productivity. Importantly, our principal focus of going AI-first is to move faster and be able to deliver better outcomes for our customers. We want to ensure that every Boxer is fully equipped to be as productive as possible with AI, which is why we're making it easy to experiment with AI across the company, and we're highlighting the best practices as they emerge and driving as much upskilling of our workforce as possible. For new employees coming in, we will increasingly look for AI-first skills as a part of our hiring criteria. This is the biggest shift in work that we've ever seen in our lifetimes, and we're excited to make sure that Box sits right at the center of it. With that, let me turn the call over to Dylan. Thanks, Aaron. Good afternoon, everyone, and thank you for joining us today. Q1 was a strong start to the year as we exceeded all guidance while also delivering double-digit billings and short-term RPO growth. These strong results enable us to deliver on our key FY26 priorities, investing in our intelligent content management platform and key go-to-market initiatives, generating consistent operating leverage, and executing on our disciplined capital allocation strategy. Q1 revenue of $276 million was up 4% year-over-year and up 5% in constant currency. We now have approximately 1,940 total customers paying us at least $100,000 annually, up 8% year-over-year. Suites customers now represent 61% of our revenue, up from 56% a year ago. Our continued suites momentum was driven by early traction with Enterprise Advanced and strong demand for our various AI capabilities. We ended Q1 with remaining performance obligations, or RPO, of $1.5 billion, a 21% year-over-year increase, and up 17% in constant currency. Our strong long-term RPO growth was driven by continued lengthening in customer contract durations. We expect to recognize roughly 55% of our RPO over the next 12 months. Q1 billings of $242 million were up 27% year-over-year and up 17% in constant currency. This result exceeded our expectations of low-to-mid teens growth due to strong bookings, including a tailwind from early renewals of approximately 400 basis points. FX also provided a tailwind of 700 basis points versus our prior expectations. We ended Q1 with a net retention rate of 102%, up from 101% a year ago and in line with our expectations. Our annualized full churn rate remained at 3%, demonstrating the continued stickiness of our platform. We continue to expect our net retention rate to improve to 103% exiting FY2026. We delivered Q1 gross margin of 80.5%, up 30 basis points year-over-year. As a reminder, in Q1 of last year, our gross margin benefited by approximately 100 basis points due to data center equipment sales in the quarter. Q1 gross profit of $222 million was up 5% year-over-year, slightly exceeding our revenue growth rate. We delivered Q1 operating income of $70 million and operating margin of 25.3% versus 26.6% in the year-ago period. Adjusting for the impact of data center equipment sales, the leap year, and FX, operating margin would have been up 90 basis points year-over-year. As a result, we delivered EPS of $0.30 in Q1, $0.04 above the high end of our guidance. This includes a negative impact of $0.01 from FX and $0.12 from non-cash deferred tax expenses. I'll now turn to our cash flow and balance sheet. In Q1, we generated free cash flow of $118 million and cash flow from operations of $127 million. We ended Q1 with $792 million in cash, cash equivalents, restricted cash, and short-term investments. In Q1, we repurchased 1.6 million shares for approximately $50 million. As of April 30th 2025, we had approximately $152 million of remaining buyback capacity under our current share repurchase plan. We remain committed to opportunistically returning capital to our shareholders through our ongoing stock repurchase program. With that, let me now turn to our Q2 and FY26 guidance. As a reminder, approximately one-third of our revenue is generated outside of the U.S., with roughly 65% of our international revenue coming from Japan. Before providing guidance, I wanted to remind you of the tax impacts we mentioned on our last call. We continue to expect that the non-cash deferred tax expenses will be an incremental non-GAAP EPS headwind of $0.52 in FY26. For the second quarter of fiscal 2026, we expect Q2 revenue to be in the range of $290-$291 million, representing approximately 8% year-over-year growth at the high end of the range and 6% growth in constant currency. We anticipate our Q2 billings to be roughly flat year-over-year. This includes an expected tailwind from FX of approximately 70 basis points, as well as roughly 230 basis point negative impact from Q1 early renewals. We expect Q2 gross margin to be approximately 81%. We anticipate our Q2 non-GAAP operating margin to be approximately 28% versus 28.4% a year ago. Note that this includes the impact of a 70 basis point headwind from data center equipment sales in the year-ago period, offset by an expected FX tailwind of approximately 80 basis points. We expect our Q2 non-GAAP EPS to be in the range of $0.30-$0.31, which includes an expected tailwind of approximately $0.02 from FX. Weighted average diluted shares are expected to be approximately 150 million for the full fiscal year ending January 31st 2026. While our strong Q1 results and Enterprise Advanced momentum give us confidence in our ability to execute, we are mindful of the macroeconomic uncertainty and potential impact to IT spending. While this environment has not had a material impact on our business so far, we want to remain prudent in our outlook for the remainder of fiscal 2026. We now expect revenue to be in the range of $1.165 billion-$1.17 billion, representing a $10 million increase versus our previous guidance and roughly consistent on a constant currency basis. This represents approximately 7% year-over-year growth, or approximately 6% in constant currency. We now expect a tailwind of approximately 120 basis points from FX. We expect our FY26 billings growth to be approximately 9%, including a tailwind of approximately 340 basis points from FX. We expect FY26 gross margin to be approximately 81%. When adjusting for the impact from data center equipment sales last year, which also flows through to operating margin, this represents a year-over-year improvement of 40 basis points. We expect our FY2026 non-GAAP operating margin to be approximately 28%, including a tailwind of approximately 40 basis points from FX. As we look at the linearity of operating margin in the second half of the year, please note that our annual customer conference BoxWorks has moved from Q4 to Q3, shifting approximately $3 million in expenses into Q3. We now expect FY2026 non-GAAP EPS to be in the range of $1.22-$1.26, including an expected tailwind of approximately $0.07 from FX. This represents an increase of $0.09 or $0.02 on a constant currency basis. Weighted average diluted shares are expected to be approximately 151 million. FY26 is off to a strong start, driven by continued growth in customer demand for Box AI. As we outlined at Financial Analyst Day, we are in the early innings of a once-in-a-generation opportunity that will revolutionize how AI can transform content in the enterprise. We will continue to invest in our intelligent content management platform and key go-to-market initiatives to execute against this opportunity, and we remain firmly committed to driving meaningful long-term improvements in our financial profile from top to bottom. With that, Aaron and I will be happy to take your questions. Operator? Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you'd like to withdraw that question, again, press star one. Your first question comes from George Kurosawa with Citi. Please go ahead. Actually, Operator, pardon me, George. Yeah? One quick correction, Dylan. Go ahead. Oh, just wanted to note for our Q1 results for EPS, that had included a benefit of $0.01 from FX, whereas I had mentioned that as a $0.01 negative impact. So it was actually a one-penny tailwind due to FX in the quarter. Great. Thank you. George, you can go ahead with your question. Okay. Great. Thanks for taking the question, for Steve. Maybe just to touch on the demand picture, kind of the topic of the quarter, it sounds like you're not seeing much in the business, but maybe there's a little bit incrementally baked into the guide. If you could just talk about how customer conversations have been and then help us frame what kind of incremental prudence you've baked into the guidance. Yeah. Overall, very healthy, robust customer conversations. As you saw in the Q1 results, we're very happy with the Q1 performance, seeing strong momentum coming into Q2. The AI kind of first strategy that we've laid out for customers, I think, is resonating. All of our customer conversations are either starting with or at some point in the conversation turning into really AI-oriented conversations around how companies can get the most out of their unstructured data, automate workflows, bring intelligence to their content. A lot of momentum on that front. Overall, we wanted to just be prudent with the overall environment. Obviously, it's a dynamic macro, and just trying to balance all those factors right now. Okay. Great. That's helpful. Maybe just to follow up, a question we're getting is billings and RPO growth, really strong, 17% quarter on quarter. You guys are guiding to 6% for constant currency revenue growth. If you could just kind of help us bridge the gap there. It sounds like maybe there was a little timing in Q1. Just anything else we should keep in mind there? Yeah. So really, primarily comes down to the timing. We had even called out heading into the quarter that we did expect to see somewhat of a unique dynamic in the billings growth rate between Q1 and Q2, with the first half and second half being relatively consistent. We saw that even a little bit more pronounced because of that early renewal dynamic. We called that out. In terms of the impact, we saw about $7 million in early renewals included in that benefit to Q1 billings. That is what represents the roughly 400 basis point impact that I mentioned. That's what that $7 million is. And about $6 million of that comes straight out of Q2. Basically making that Q1 to Q2 impact a little bit more pronounced. In terms of the halves overall, can now see that we expect a little bit more strength in the first half because of those dynamics as well as that incremental conservatism that we mentioned related to the macroeconomic environment. No big change relative to our original expectations other than the early renewal dynamics between the first and the second quarter. Super helpful. Thanks for taking the questions. Your next question comes from the line of Jason Ader with William Blair. Please go ahead. Yeah. Thank you. Good afternoon, guys. I just wanted to ask about seats. I think you called out a customer where there was good seat growth. Can you just comment overall on what you're seeing out of seat growth and even if there's any downsell or how that has trended for some of your customers? Thank you. Yeah. So overall, the trends that we're seeing and the dynamic between seat growth and then pricing improvements have been pretty consistent with what we've seen over the last several quarters where seats are growing on a net basis, but pretty minor contribution to growth. Most of that customer expansion is being driven by pricing increases. We've seen that continue and expected to be the same, especially with the impact of Enterprise Advanced and the healthy pricing uplift that we see as customers upsell into that suite. That's really the dynamic that we've been seeing pretty consistent over the past few quarters. There is a lot that we are doing, especially with a lot of these new Enterprise Advanced and AI-driven use cases that we do think open up some new opportunities to expand across departments. Okay. Just to be clear, it sounds like price is going to be a bigger driver of growth, let's call it, over the next several quarters than seats. If so, what do you think you guys need to do or you need to see, I guess, on the seat side for you to be able to say, "Okay, we are starting to see an inflection on seat growth"? Yeah. That is exactly right in terms of what we are baking into our expectations for this year with pricing and driving the lion's share of that expansion. On the seat side, a lot we're doing again around kind of the use cases that we're pushing that Enterprise Advanced enables, as well as with new logos and some of the go-to-market investments that we've called out as a way to reach kind of new customers and grow the overall seat base from there. Certainly, as that dynamic evolves, we'll be sure to provide updates in terms of what we're seeing in the business. I'd also note, and as we've called out in the past, that seat growth and that net seat growth tends to be more closely correlated with the economic environment. Whereas in good and bad, we've continued to see steady and strong pricing improvements, that seat dynamic is a little bit more sensitive to the overall macroeconomic environment. Very helpful. Thank you. I would just note that overall, to Dylan's point, obviously, Enterprise Advanced is the primary focus, which is both driving the price per seat increase as well as expanded use cases. We feel pretty comfortable at the momentum and overall spot that we're in. Your next question comes from the line of Michael Funk with Bank of America. Please go ahead. If you want one follow-up on the early renewals, you called out earlier 400 basis points of health in the quarter, can you remind us what you're expecting during the quarter? Also, what are you doing to catalyze early renewals? Yeah. For early renewals, the biggest driver that we saw in Q1 was really around the adoption of customers looking to adopt our AI capabilities, both with Enterprise Plus and now more and more with Enterprise Advanced, even though we're early days. That was the majority of those Enterprise Advanced sales that we saw in the first quarter were customers early renewing, looking to move and bring on those capabilities sooner than their scheduled renewal date. On AI, you mentioned earlier in the call, cost of AI inferencing dropping, and that's helpful. Maybe two questions there. First, how should we think about cost of AI and compute impacting margin? You made some margin expectation comments earlier. As you land with customers with AI, is it still primarily smaller seat counts or customers still doing smaller use case testing? Is there wider deployment? We're looking to find out where are we in the spectrum of adoption with AI as they adopt your product. Yeah. The two parts of that. On the AI inference side, we've just been very happy about the rate of like-for-like AI model improvements that we're seeing from a cost standpoint. That can show up in two ways. The first is that you can take an existing use case, and it might just, on a one-to-one basis, be cheaper on a kind of pretty regular basis every 6-12 months at a minimum. The alternative is that you get a new capability unlock because you either get the base model just is getting much better, or you can use an existing model and do multiple passes through the model for better accuracy or more complex use cases. Depending on the use case, we have some things that quite literally just immediately get cheaper for us, and then other use cases where we start to unlock more powerful capabilities. Both of those are driven by inference prices going down, which I think we've all kind of collectively seen. That trend is alive and well right now, which is fantastic to see. On the rollouts, it's a broad mix. We have a couple of benefits in our platform. We've made Box AI for sort of base use cases, querying documents, asking questions of data, generating summaries of content. That's now an included capability in all of our business plans and above. Customers really have an easy way to start to try AI, deploy it for really kind of core end-user productivity use cases. We've got multiple upsell vectors, either for your entire enterprise instance to be upgraded with Enterprise Advanced. We've sort of talked about the early strong momentum we're seeing there, or AI unit volume consumption for more either complex use cases or much more kind of high-volume use cases. You can already start to try it quite easily by just using some of the included functionality. We've got, again, multiple upsell paths that we're driving customers through. I think we've landed on a very strategic pricing model for our customers that they've been quite happy about. We've generally had very strong positive interactions with customers on that upsell motion because it's very logical. Enterprise Advanced unlocks a whole new set of features as well as kind of core AI use cases. Just to clarify the first question, the price performance, are they largely offsetting? You'd say margin neutral from rolling out AI, or is one greater factor than the other? We've called out that we're aiming to have AI be relatively margin neutral over at least the medium term, and then I think it only gets better from there. Because we're not directly charging customers on a kind of a per use case basis, because some of our core AI functionality is included, it's sort of hard to exactly parse something as margin neutral without a dedicated kind of pricing line for it. I would just say overall, as a company, we are intending to remain more or less margin neutral even as we bake in more AI functionality. The reason that we can do that is because the cost of inference is dropping even as we add more capabilities to our customers. Okay. Thank you so much for the time. Thank you. Your next question comes from the line of Lucky Schreiner with DA Davidson. Thanks for taking my questions and congrats on the great quarter. Maybe just with all the recent platform innovation and the rapid advancements across the ecosystem, how is that impacting your ability to win customers migrating away from the legacy ECM providers that typically aren't able to keep pace? Are you noticing an uptick in win rates in those deals early on? Maybe as a follow-up, how have you noticed the improvement maybe in the market overall from customers, just overall customer awareness? Thanks. Yeah. I think great performance on both of those topics. We're seeing more customers elect to move and migrate to modern platforms for driving AI-driven workflows on content. We announced this partnership with DataBank as folks remember in our Financial Analyst Day. That's a great example of a partner who works with a lot of the traditional document management environments out there and really is in a position to help customers accelerate their move to the cloud. We're seeing great momentum with them as an example. Similarly, we've had strong momentum with folks like Slalom and other system integrators on similar use cases of customers that want to migrate or modernize their IT infrastructure and get content to the cloud to be able to use AI on that content. That's the first part. On the second part, if you just look at Q1 alone, and I mentioned this in the call, but just to be redundant, if you looked at the announcements of Claude 3.7 in Q1, Grok 3.0, OpenAI's Agent SDK, NVIDIA Corporation at GTC, and a number of other announcements in Q1 from the AI ecosystem, Box was included in every single one of those. Right at the start of the quarter, at the tail end of Q1, LlamaCon announcing the work that IBM and Box are doing together to bring Llama 4.0 to customers. We are sitting very naturally at the center of so much of the innovation happening in AI right now. I think it helps that we're not competing with any of the AI model providers. We are bringing together an ecosystem of all the leading AI to our customers. We act as a very natural kind of convening point for these AI models when customers want to be able to use data with any of these leading platforms. I think the momentum is building around Box AI as a platform. That is certainly starting to show up in our brand. We're seeing strong Enterprise Advanced pipeline begin to build. That is effectively all AI-driven pipeline in terms of the use cases customers are unlocking. Overall, we're really happy with the momentum. Awesome. Last question from me. You had a nice diversity of wins and expansions across industries. Anything to call out? I think the early renewals were especially, I guess, impressive to hear given the April volatility that we all experienced. Maybe anything to call out in the pipeline from an industry perspective given the macro backdrop and your recent partner go-to-market improvements? Thanks. I think from an industry standpoint, no major shifts. We're continuing to see strength in a lot of the core industries that we've talked about, especially spaces where the customer is in a regulated environment. Data is mission-critical for them. One thing that can't be underscored enough is, as you want to do AI on your data, all of the things that we've gotten very good at over nearly two decades of working in the enterprise become mission-critical. How do I secure my content? How do I make sure it's compliant? How do I ensure that only the right people have access to the data, especially via agent interactions? Our CTO has a great quote of, "AI agents can't keep a secret." You never want to put your security in the agent part of the infrastructure. You want to ensure that data access controls are actually maintaining the security of your information. You do not want to be in a position where you are trying to pack too much of that intelligence into the model layer. You want to pack that into the data plane and the architecture around that, which is what Box provides customers. That then means that companies in life sciences or banking and public sector, healthcare, all of these types of industries that really have sensitive, mission-critical use cases are able to thoughtfully and safely deploy AI to their end users. Appreciate the answering the questions. Thank you. Your next question comes from the line of Josh Baer with Morgan Stanley. Please go ahead. Thanks for the question. Congrats on a great quarter. Aaron, I was hoping you could talk a little bit more about platform revenue. Sure, it's still early days for AI unit consumption, but was hoping you could comment a little more on early traction as well as anything else driving that platform revenue. Yeah, just thinking about the targets to grow that approximately 30% looking ahead and how we're tracking to that goal. Yeah. Overall, still very early in the AI unit adoption. Obviously, this just became available to customers in the past quarter. We're in the very early days of what that volume looks like. The deals are kind of a pretty wide spectrum of deal sizes. It's still in the kind of lumpy territory. We're not at a kind of a normalized point. In terms of the kinds of customers and the use cases, just as we kind of think about industries and scanned use cases, we have everything from legal industry. We have public sector. We have universities. We have financial services players, advisors. Really across the continuum. The most common use case right now, just based on where the functionality is most robust, is I have a set of data, and I want to be able to run an AI agent or many AI agents across all that data to do some form of data extraction, data parsing on my content. That can be looking through contracts to pull out critical details from contracts, taking bank statements to read and validate the information in the bank statement. Some customers are doing the very early phases of image extraction where you give the AI model, could be handwritten content or images from a construction site, and be able to label all that data. We are seeing kind of healthy early adoption. This is going to be a continued focus of ours, and we expect it to be a healthy contributor to our overall top line over the coming quarters and years. Great. Very clear. Dylan, I was hoping you could just comment on early renewals. Appreciate all the color in Q1. I'm really just wondering when you guide and thinking about Q2, do you embed what's the assumption? Is it just for on-time renewals? Just thinking about early renewals contributed in Q4 as well in a positive way. Just wondering if it's a trend, if it's something that can continue to benefit, and what assumptions you have in guidance. Sure. So we do assume that there is some volume of early renewals. And because we don't have a perfect line of sight into those, we tend to be fairly conservative. To your point, that has been an area of outperformance a few times over the past year or two. We do assume that we're going to have some early renewals, but not at the same rate as we saw over the past couple of quarters, especially because some of those were just customers who were looking to get into Enterprise Advanced as quickly as possible. Some of our most loyal customers who've been more familiar with that, but certainly optimistic that we'll continue to see higher than historical volumes of those early renewals. To the extent that becomes more consistent trends, we would update those assumptions around early renewal volume as it relates to our guidance as well. Great. Thanks. Your next question comes from the line of Pinjalim Bora with JP Morgan. Please go ahead. Great. One question for Aaron. I have a follow-up for Dylan. Aaron, as Box kind of integrates with different AI partners, OpenAI for deep research and others, how do you make sure that the engagement with some of these external AI vendors versus you keeping the engagement within the Box platform? Because Box was also thinking of coming out with deep research. Right now, you can actually do deep research with OpenAI. So how do you think of that bifurcation? How are you monetizing the people who are doing deep research on Box through OpenAI, for instance, and as that kind of proliferates beyond OpenAI and some other AI partners? Yeah. Great question. Something we think quite a bit about and spend a lot of time on. Just to get full talk for five seconds, there's going to be this question for years and years, I think, in AI around kind of which layer of the stack do you occupy and what's everybody's role in this. We sort of are going to occupy two parts of the stack. If there's two or three or four layers going down to the infrastructure, we're in two to three, we're in about two of them, which is we're in the software plane for the end user interaction at the SaaS level. We're in the data kind of platform plane as well as an API, either agentic APIs or regular APIs. We want to basically have both of those execute as fast as possible and as much in tandem as possible because we are not going to be, no single company is going to decide where all of a user does its work. It's just not possible. Bill Joy had this famous quote 35 years ago or whatever that said, "There's more developers outside of Sun than inside of Sun." More smart developers, with the implication being you just have to let a thousand flowers bloom. You do not want to be in a position where you're trying to kind of king make any particular experience or platform or use case. There's just simply too much innovation happening. Kind of similarly, your data is going to eventually need to flow to wherever the work is getting done. No one platform will be able to control where that work is getting done because the internet's too large. Companies have too many different use cases they want to go and solve. Because of that, our focus is ensuring that we can agentically bring information to wherever the user is doing their work. There's no game theory where you could ever kind of contemplate closing off access to a particular platform simply because the users want to be able to do the work where they want. Given that, we kind of flip it and we say, "Okay, so then we should be everywhere and ensure that the customer never has to make a sort of kind of a core decision about where their content can be managed by virtue of where they want users doing work." We want to make sure that you can manage your content one place and ensure that it works everywhere. From a monetization standpoint, there are a few different ways that gets monetized. Certainly, the end user seat gets monetized. To the extent that you have a user on ChatGPT asking a deep research question, by definition, they have a seat that is sort of processing that. That is where I get into this idea of AI agents cannot manage security. The end user still has to have access controls that allow them to access the content that is relevant for that deep research query. There is no way to sort of game the system and sort of have all the data in one end user account and have that show up to multiple users in ChatGPT. By definition, you need those two things to be aligned to ensure the proper security. That is how you monetize via seats. In this case, deep research is using our direct APIs. As more and more use cases emerge where you have a third-party system that wants to use an AI agent within Box, where we have announced partnerships with Salesforce Agentforce and Google Agent SDK and IBM Watsonx Orchestrate, as you have those use cases, that will be monetized via our AI unit volume. As you have more queries going into Box that are agentic in nature, then we'll just charge on a per-volume basis for those. Let's say you're inside of Agentforce, inside of Salesforce, and you want an AI agent to go extract metadata from documents. We'll monetize that exactly the same way that we would monetize that if that workflow was driven directly in the Box product from an end user standpoint. We think we've got our bases covered. Obviously, over time, you might be able to argue, "Okay, well, there might be a slightly different margin depending on the modality of the usage." Overall, we're just massive believers that an open internet is a better one. Interoperability is long-term always going to be better for us because the more places people want to be able to do work from and the more places they can successfully do that work from, the more need they have for an open and interoperable data platform connected to all those systems. If you just kind of compare the alternative world where everything gets closed down and you only have one or two providers, that's actually a worse world. It is the one that we do not think is going to happen because of how much kind of agent interoperability is starting to emerge. That is a little bit of the philosophy that we are running with. Makes a lot of sense. Thank you for the detail on that. One for Dylan. Dylan, when I look at the Billings Guide for the year, I did this math pretty quickly, but it sounds like when you first gave the guidance, it was about 7% USD with 30 basis points of Tailwind from FX. Now it seems like 9% USD with 340 basis points of FX Tailwind. It sounds like on a constant currency basis, you're guiding Billings down. What am I reading wrong? Because you had a very strong Q1, and I understand the early renewals, but why would that impact the full year? Is that largely driven by some of the prudence that you're talking about? Maybe talk about the Billings Guidance for the year. Yeah, that's exactly right. On that constant currency basis, down about a point. Some of that is just we round as we give guidance on an as-reported basis and then round numbers. A portion of that is, as we discussed, just that incremental conservatism around the back half. That is the exact dynamic. I think you're doing the math right. Overall, very kind of optimistic about what we're seeing in the business and the trends and how kind of customer conversations are materializing. I did want to be kind of prudent with what we're assuming in the back half of the year. Got it. Thank you. Your next question comes from the line of Brian Peterson with Raymond James. Please go ahead. Congrats on a strong start to the year, guys. I'll keep it to one. I know you answered the questions on industries before, but I know there's been a lot of debate on what's going on in a federal vertical. Anything that you guys would call out in terms of customer trends or pipeline? Any color there? Thanks, guys. Yeah. Still a bit of a dynamic where I think we expect a degree of kind of caution on the federal side. We've put a lot of emphasis in our kind of state and local part of the business. In the meantime, FedRAMP High, which obviously we just got certified for, is clearly going to be a sort of a net helper to the overall dynamic in the federal side because a lot of the use cases that will continue to get funded are those out of DOD and much more kind of highly sensitive use cases. We're now in a better position to go capture those. I would still say dynamic environment, but we're happy with FedRAMP High as a way to bolster that position. We're very happy about the kind of overall AI momentum that we're driving. Thanks, sir. That concludes our question and answer session. I will now turn the call back over to Cynthia Hiponia for closing comments. Great. Thank you, everyone, for joining us today. We look forward to updating you again on our next earnings call. This concludes today's conference call. Thank you for your participation. You may now disconnect.