Quarterly Operations Report — Q1 2026

This report consolidates operational performance across the engineering, product, finance, and customer-success organisations for the first quarter of 2026. Numbers are unaudited; the finance team's reconciled figures will follow within ten business days.

Executive summary. Q1 came in modestly ahead of plan on revenue, in line on gross margin, and meaningfully ahead on operating efficiency. Headcount grew 6% year-on-year — well below the 12% planned at the start of the year — driven by a deliberate slow-down in non-engineering hires. Customer churn ticked up by 40 bp to 2.1% but remains below the industry benchmark of ~3%. Three of the four major product launches planned for Q1 shipped on time; the fourth (Workflow Studio v3) slipped two weeks and is now scheduled for week 4 of Q2.

1. Financial Highlights

1.1 Revenue mix

• Subscription revenue grew 22% year-on-year to USD 128.0M, now 90% of total revenue (vs. 88% a year ago). New-logo ARR was USD 14.2M, up 38% YoY; net new ARR was USD 11.7M after USD 2.5M of gross churn.
• Services revenue grew 4% to USD 14.3M. The deliberate decision to package more of the implementation playbook into self-serve content has slowed services growth — exactly as intended.
• Top-three customer concentration fell from 18.4% to 14.1%, a healthier balance reflecting the broadening of the enterprise base.

1.2 Cost discipline

Sales and marketing efficiency improved materially: customer acquisition cost (CAC) on new logos was USD 11.4k, down from USD 14.1k a year ago, driven by a 24% lift in inbound conversion rates after the website re-launch in February.

2. Engineering

2.1 Delivery cadence

The engineering organisation shipped 47 production releases in Q1, up from 38 in Q1 2025. Mean time to production for an approved PR fell from 2.6 days to 1.8 days, helped by the new merge-queue automation that removes the manual rebase step for the long-tail of small PRs.

2.2 Reliability

Service-level objective attainment for the quarter:

The single SLO miss — auth uptime — was driven by a 4-minute outage on 2026-02-19 caused by a cascading restart of the rate-limit cluster after an inadvertent config push. The post-incident review identified two process changes already in place: dual-control for prod config pushes, and a pre-flight canary on the rate-limit nodes before a fleet-wide roll.

2.3 Tech-debt reduction

The infrastructure team retired the v1 ingestion pipeline this quarter, consolidating onto the v2 columnar path. v1 had been receiving diminishing share of new traffic for three quarters; deprecation reduced our cloud spend by ~USD 240k per quarter and removed a known single-point-of-failure in the cross-region replication path.

Other notable retirements:

• MongoDB to Postgres migration for the audit-log service: complete. Storage cost down ~40%, query latency down ~3x at p95.
• Legacy permissions cache: replaced with the new RLS-aware authorization layer. Net reduction of ~14k lines of code.
• Dual-write to the analytics warehouse: removed; CDC pipeline is now the sole writer.

2.4 Hiring

Engineering added a net 11 people in Q1 (16 hires, 5 departures). Open reqs at quarter-end: 8 (down from 14 at the start of the quarter). Voluntary attrition annualised: 7.8%, well below the industry benchmark of ~12-14%.

Headcount by team (end of Q1):
  Platform .................... 22
  Application ................. 31
  Data and ML ................. 14
  Infrastructure ............... 9
  Security ..................... 6
  Engineering management ....... 7
  ----------------------------------
  Total ....................... 89

3. Product

3.1 Launches

Three of four planned major launches shipped in Q1:

1. Universal Inbox — beta opened to 800 customers; GA shipped 2026-03-12. Adoption is tracking ~2x the comparable launch a year ago, helped by in-app onboarding.
2. Workflow Studio v3 — slipped; now scheduled for 2026-04-22. Slip was caused by a rewrite of the canvas renderer to support the new branching primitives. Quality bar held; we made the right call.
3. Reporting v2 — GA shipped 2026-02-04; ~63% of eligible customers have migrated within the first eight weeks.
4. Mobile push for SOC 2 alerts — shipped 2026-03-28; uptake has been concentrated in the security-engineering buyer persona, as expected.

3.2 Adoption metrics

3.3 Customer-requested top-10

The product council reviewed the top-10 customer-requested features at the end of the quarter. Ranked by weighted ARR exposure:

1. Cross-workspace search — committed to Q2.
2. SAML group-attribute mapping — committed to Q2.
3. Custom retention policies per data type — Q3 candidate.
4. Native Slack threading — shipped (2026-03-19).
5. Bulk archival via API — Q3 candidate.
6. CMK / BYOK for at-rest encryption — Q3 commit.
7. Read-only audit-log API — committed to Q2.
8. Webhook signing keys (per-endpoint rotation) — Q3 candidate.
9. Per-region data residency for EU — H2 commit.
10. Real-time presence in shared docs — Q4 candidate.

4. Customer Success and Support

4.1 Net retention

Net dollar retention (NDR) for the quarter was 117%, in line with plan. Gross dollar retention was 94%, a 50 bp improvement over Q1 2025. Cohort analysis shows the improvement is concentrated in the mid-market segment, where the new account-health scoring is producing higher renewal-touch coverage.

4.2 Support

Support handled 18,420 tickets in Q1, a 14% increase vs. Q1 2025 — in line with the customer-base growth. Median first response was 23 minutes (target: under 30); median resolution was 7.4 hours (target: under 8).

CSAT (overall): 4.46 out of 5, up from 4.41 in Q4 2025.

5. Risk Register

5.1 Top risks

1. Concentration risk on a single payment processor. ~62% of payment volume flows through one PSP; a 12-week incident in 2025 demonstrated the impact. Mitigation: integration with a second processor is engineering-complete and in finance-side UAT; targeted go-live mid-Q2.
2. Regulatory exposure on cross-border data transfers. A pending ruling in the EU could narrow the lawful basis for some transfers. Mitigation: per-region data residency commit (see 3.3 #9).
3. Senior-engineer attrition concentrated in two teams. Two staff engineers gave notice in Q1; both are in the same team. Mitigation: on-the-fly knowledge-share sessions and an active backfill on each role; succession plans documented for both.

5.2 Closed risks

• Auth-cluster single-region exposure — closed Q1 with the multi-region rollout.
• No on-call escalation for Reporting — closed Q1 with the reorg of the data team.

6. People

6.1 Headcount

Voluntary attrition annualised: 6.4% company-wide.

6.2 Engagement

Pulse-survey engagement score: 8.1 / 10 (Q4 2025: 8.0). The largest positive shift was in clarity of strategy (7.8 to 8.4), reflecting the narrative work the leadership team did in late Q4. The largest negative shift was in cross-team collaboration (7.6 to 7.2), which the COO is addressing with a formal program-management function being stood up in Q2.

7. Outlook

7.1 Q2 commitments

• Workflow Studio v3 ships by end of week 4.
• Cross-workspace search ships by end of Q2.
• Second payment-processor integration GA by end of Q2.
• Read-only audit-log API GA by end of Q2.
• SAML group-attribute mapping ships in Q2.

7.2 Q2 financial guidance

7.3 H2 themes

• CMK / BYOK at-rest encryption as a strategic enterprise unblocker.
• Real-time collaboration primitives in shared docs and dashboards.
• EU data residency as a regulatory hedge and an enterprise sales lever.
• Platform observability — bringing internal SLI / SLO tooling to parity with the public-facing reliability surface.

8. Appendix

8.1 Definitions

• ARR (annualised recurring revenue): end-of-period MRR multiplied by 12, excluding one-time fees and services revenue.
• Net dollar retention (NDR): ARR from a cohort at the end of the period divided by the ARR of that same cohort at the start of the period; includes expansion, contraction, and churn.
• Gross dollar retention (GDR): same numerator excluding expansion; measures pure retention on the contracted base.
• Mean time to production (TTP): median time from "PR approved" to "merged commit live in production".

8.2 Reading list

• Internal: Reliability Review for Q1 — published 2026-04-09.
• Internal: Capacity Plan H2 2026 — draft circulating with leadership.
• External: State of DevOps 2025 - DORA report.
• External: Why net retention beats new logos in this market.

8.3 Methodology notes

Numbers in this report are derived from the standard reporting warehouse as of the close of business on 2026-04-04. Any subsequent restatements will be reflected in the Q2 report. Historical comparisons use the restated 2025 figures published in the Q4 2025 reconciliation memo.

9. Operational Detail Index

Each operational metric below is captured for archive and for the quarter-by-quarter trend file maintained by the program office. Numbers are pulled from the standard warehouse and validated by the relevant function lead before publication.

9.1 Engineering throughput trends

9.2 Customer-success motion

9.3 Capital-efficiency metrics

Capital efficiency continues to improve. The "Bessemer Efficiency Score" (net new ARR divided by net cash burn) crossed above 1.0 in Q1 for the first time, indicating the business is now generating more new ARR than it consumes in cash to do so. This is the gating metric for the board's IPO-readiness criteria.

9.4 Marketing funnel

The integrated marketing funnel for the quarter:

*Opportunity-to-close conversion exceeds 100% in some weeks because the opportunity vintage skews older than the close vintage; reported on a trailing-twelve-week basis.

9.5 Compliance posture

• SOC 2 Type II — surveillance audit completed 2026-02-21; clean.
• ISO 27001:2022 — certification renewed 2026-03-04; no findings.
• GDPR DPIA — refreshed for the EU residency commit.
• HIPAA — readiness assessment complete; targeting attestation H2.

Prepared by the Office of the CFO, in collaboration with the Engineering, Product, and People organisations.

10. Per-Region Operational Detail

The four operational regions are tracked individually below. Each region is owned by a regional GM with P&L responsibility; the consolidated numbers in section 1 roll up the per-region detail in this section.

10.1 Region: AMER

AMER closed Q1 with 67% of new-logo ARR and 71% of total revenue. Mid-market grew the fastest at +29% YoY; SMB grew +12% YoY but remains the most price-sensitive segment.

Top accounts (AMER)

1. Account Alpha — 6.8M ARR; expansion +1.2M in Q1.
2. Account Bravo — 5.4M ARR; renewed flat.
3. Account Charlie — 4.9M ARR; expansion +0.4M in Q1.
4. Account Delta — 4.1M ARR; renewed flat.
5. Account Echo — 3.8M ARR; expansion +0.6M in Q1.

Pipeline (AMER, end of Q1)

10.2 Region: EMEA

EMEA grew +24% YoY, ahead of plan. The Northern Europe sub-region drove most of the upside, with the new Stockholm and Amsterdam account-executive hires already producing closed-won revenue.

Top accounts (EMEA)

1. Account Foxtrot — 3.2M ARR; expansion +0.4M in Q1.
2. Account Golf — 2.8M ARR; renewed +0.1M.
3. Account Hotel — 2.4M ARR; expansion +0.3M in Q1.
4. Account India — 2.1M ARR; renewed flat.
5. Account Juliet — 1.9M ARR; expansion +0.2M in Q1.

Pipeline (EMEA, end of Q1)

10.3 Region: APAC

APAC remains the smallest region but grew the fastest (+38% YoY). Japan is the strongest single country; Australia and Singapore continue to over-index in mid-market.

Top accounts (APAC)

1. Account Kilo — 2.0M ARR; expansion +0.3M in Q1.
2. Account Lima — 1.5M ARR; renewed +0.1M.
3. Account Mike — 1.2M ARR; expansion +0.2M in Q1.
4. Account November — 1.1M ARR; renewed flat.
5. Account Oscar — 0.9M ARR; expansion +0.1M in Q1.

Pipeline (APAC, end of Q1)

10.4 Region: LATAM

LATAM remains a long-term investment region. The Mexico City team is producing strong land-and-expand motion; Brazil opened later than planned but is now staffed.

Top accounts (LATAM)

1. Account Papa — 0.9M ARR; expansion +0.1M in Q1.
2. Account Quebec — 0.7M ARR; renewed flat.
3. Account Romeo — 0.5M ARR; expansion +0.05M in Q1.

Pipeline (LATAM, end of Q1)

11. Engineering Team Detail

Each engineering team submits a quarterly write-up covering velocity, on-call posture, and notable shipped work. Excerpts below.

11.1 Team: Platform

The Platform team focused on the v2 ingestion pipeline cutover and the new authorisation layer. Both projects shipped on time, and the ingestion cutover unlocked the v1 deprecation called out in section 2.3. The team also picked up two additional rotations on the auth on-call calendar to absorb load from the Application team.

Key shipped work:

• v2 ingestion pipeline cutover — 100% of new traffic now on v2.
• RLS-aware authorisation layer — replacing the legacy permissions cache.
• Multi-region rate-limit cluster — closes the auth single-region exposure called out in the Q4 2025 risk register.

// Representative API surface, simplified for the report.
pub async fn ingest(
    payload: Payload,
    tenant: &Tenant,
) -> Result<Receipt, IngestError> {
    let normalised = normalise(payload, tenant)?;
    let receipt = pipeline::v2::accept(normalised, tenant).await?;
    Ok(receipt)
}

11.2 Team: Application

Application shipped Universal Inbox GA, Reporting v2 GA, and made meaningful progress on Workflow Studio v3. The slip on the latter was driven by a deliberate scope addition (canvas-renderer rewrite) rather than execution risk.

Key shipped work:

• Universal Inbox GA — beta to GA in 8 weeks; in-app onboarding shipped alongside.
• Reporting v2 GA — 63% of eligible customers migrated within 8 weeks.
• Mobile push for SOC 2 alerts — partner team for the security buyer persona.

11.3 Team: Data and ML

Data and ML completed the MongoDB to Postgres migration on the audit-log service and picked up the customer-churn-prediction model work that the Customer Success org had been waiting on. The model now powers the account-health scoring referenced in section 4.1.

Key shipped work:

• Audit-log MongoDB to Postgres migration — complete.
• Account-health model v2 — informing CSM renewal-touch coverage.
• Reporting v2 backend — feature-complete; analytics warehouse optimisation continues.

11.4 Team: Infrastructure

Infrastructure absorbed the v1 ingestion deprecation work in partnership with Platform, retired the dual-write to the analytics warehouse, and stood up the second cloud region for the data-residency commit.

Key shipped work:

• EU region (FRA) — stood up; pilot tenants migrated.
• Dual-write removal — CDC pipeline is now the sole writer.
• Cost-optimisation initiative — net cloud spend down 14% QoQ excluding new-region build-out.

11.5 Team: Security

Security closed the SOC 2 surveillance audit clean, refreshed the ISO 27001:2022 certification, and stood up the HIPAA readiness work for H2 attestation. The team also led the dual-control-on-prod-config incident response described in section 2.2.

Key shipped work:

• Dual-control on prod config pushes — incident-response output.
• HIPAA readiness assessment — complete; H2 attestation on plan.
• SOC 2 surveillance audit — clean.

12. Customer Voice

A sample of qualitative customer feedback collected via the quarterly business-review motion. Quotes are anonymised but attributable on request.

"The new Universal Inbox has cut our team's daily mail-triage time from 40 minutes to under 10. Our security analysts get to the alerts that actually matter, faster. We're seeing tickets-to-incident ratios drop noticeably." — Director of Security Engineering, Enterprise customer

"Reporting v2 is genuinely a step change. The custom-metric API means we no longer have to ship our finance data into a separate dashboard tool. One less integration, one less vendor." — Head of Finance Operations, Mid-market customer

"Workflow Studio v3's branching primitives are the thing we've been waiting for since 2024. We understand the slip; the quality bar held. We'd rather have it right than fast." — VP Engineering, Enterprise customer

"Support has gotten faster every quarter. Our last critical was resolved in under an hour, and the post-incident communication was clear and direct. We notice." — CTO, Mid-market customer

13. Action Items for Q2

The leadership team owns the following actions for Q2. Owners and deadlines are tracked in the Q2 ops review document.

• Workflow Studio v3 ships by end of week 4.
• Cross-workspace search ships by end of Q2.
• Second payment-processor integration GA by end of Q2.
• Read-only audit-log API GA by end of Q2.
• SAML group-attribute mapping ships in Q2.
• Q1 audit-log MongoDB to Postgres migration — complete.
• v1 ingestion pipeline deprecated — complete.
• Multi-region rate-limit cluster — complete.

End of report.

14. Quarterly Cross-Functional Project Index

The cross-functional project index below summarises every project that spanned more than one organisation in the quarter. Project status is captured at end-of-quarter; the live tracker carries the running view.

14.1 Project: Universal Inbox GA

Status: Shipped on time, 2026-03-12. Adoption running ~2x the comparable reference launch from 2025. Seven of the top-ten customer deployments completed onboarding within the first three weeks.

14.2 Project: Reporting v2 GA

Status: Shipped on time, 2026-02-04. Migration uptake ahead of plan. Long-tail of legacy reports still served from v1 backend; v1 read-path deprecation now scheduled for Q3.

14.3 Project: Workflow Studio v3

Status: Slipped to Q2 week 4. Slip driven by deliberate scope addition (canvas renderer rewrite). Decision and rationale ratified by the product council on 2026-02-18.

14.4 Project: EU data residency

Status: Region stood up, pilot tenants migrated. Production traffic cutover gated on the legal sign-off for the new sub-processor agreements; targeted for end of Q2.

14.5 Project: HIPAA readiness

Status: Readiness assessment complete; gap remediation under way. Targeting H2 attestation. The work overlaps with the SOC 2 evidence base; ~70% of controls are already in scope and in place.

14.6 Project: Second payment-processor integration

Status: Engineering complete; finance-side UAT under way. Targeted GA mid-Q2. The dual-PSP architecture follows the pattern documented in the 2025 incident-response review, and addresses the top item in the risk register.

15. Operational Risk Detail

The risk register in section 5 is the leadership-level summary. The operational-risk detail below is the program office's working list, including items that have been triaged below the leadership threshold but remain on the radar.

15.1 Operational risks (working list)

15.2 Risk-treatment notes

• R01 (PSP concentration). Engineering complete on the second-PSP integration. UAT in finance-side reconciliation reporting. GA mid-Q2.
• R02 (EU transfers). Watching the pending court decision. The EU residency build-out (project 14.4) is the long-term hedge.
• R03 (Engineering attrition). Backfill recruiting in flight. Knowledge-share rotation set up. Succession plans documented.
• R04 (Warehouse capacity). Tier-up to next compute tier scheduled for Q2. Cost impact captured in the Q2 plan.
• R05 (Observability vendor). Reviewing two alternatives in case the current vendor's SLA terms do not improve at renewal.
• R06 (EU sub-processors). New agreements in legal review. Targeted signature end of Q2 to support project 14.4 GA.
• R07 (Comp consistency). Q2 comp-plan refresh will normalise.
• R08 (CRM vendor). Lower priority. Migration cost would be high.
• R09 (ID provider). Architectural review scheduled for H2.
• R10 (Evidence capacity). Tooling automation reduced manual evidence collection by ~40% in Q1. Continuing.
• R11 (Non-EU regulated tenants). Off-roadmap; will revisit when customer demand crosses threshold.
• R12 (Tax and employment). Engaged outside counsel; on track.

16. People Operations Detail

16.1 Hiring throughput

*Eight engineering reqs were closed without a hire because the work was de-scoped during the Q1 portfolio review; the remaining open reqs roll forward into Q2.

16.2 Compensation review

The Q1 comp review applied the standard methodology: market-data refresh from the comp-survey vendor, internal-equity check, manager calibration, and finance approval. Notable outputs:

• 92% of in-band employees received a market-aligned increase.
• 8% of employees were identified as below-band and received a band-correction increase outside the standard window.
• No off-cycle equity grants outside the planned refresh program.

16.3 Performance

The Q1 performance check-in cycle ran on the new lighter-touch model (quarterly conversation, no formal calibration). Manager NPS on the new model: +42. Employee NPS on the new model: +38. Both materially above the prior-cycle scores.

16.4 Diversity, equity, and inclusion

17. Appendix: Methodology and Definitions

17.1 Reporting cadence

• Daily: a single-page operational dashboard distributed to the leadership team.
• Weekly: a 4-page weekly business review distributed to all managers.
• Monthly: a closed-financials packet distributed to the board observer list.
• Quarterly: this report (consolidated operational view) plus the audited financial statements (reconciled in the 10-business-day window after quarter-end).

17.2 Source-of-truth systems

• CRM is the source of truth for opportunity stage, ARR, and closed-won bookings.
• ERP is the source of truth for revenue, cost, and cash flow.
• HRIS is the source of truth for headcount, attrition, and comp.
• Reporting warehouse is the source of truth for the operational metrics in sections 2-4 and 9-12.

17.3 Restatement policy

We restate prior-period numbers when:

1. A material reclassification changes the comparability of a metric.
2. An audited adjustment is finalised after the original publication.
3. A definitional change is approved by the program office.

All restatements are flagged in the next-quarter report's appendix and reflected in the rolling trend file.

17.4 Glossary additions for Q1

• Bessemer Efficiency Score: net new ARR divided by net cash burn, per the Bessemer Venture Partners definition.
• Magic Number: net new ARR for the quarter divided by sales and marketing spend in the prior quarter, annualised.
• Burn Multiple: net cash burn divided by net new ARR for the same period.

17.5 Approvals

This report was reviewed by the leadership team on 2026-04-09, ratified by the CFO on 2026-04-10, and circulated to the broader management team on 2026-04-11.

Final.

18. Per-Week Operational Detail

The per-week detail below archives the weekly business-review numbers for the quarter. Future quarters can compare against these directly without re-querying the warehouse.

18.1 Week 1 (2025-12-30 to 2026-01-05)

Holiday-shortened week. Pipeline-build motion paused; on-call coverage held the line. No production incidents.

18.2 Week 2 (2026-01-06 to 2026-01-12)

First full operating week. Sales QBRs ran through the week. One P1 incident (transient ingestion lag, 18 minutes), resolved within SLO.

18.3 Week 3 (2026-01-13 to 2026-01-19)

Net-new ARR slightly soft on a quieter renewals week. No incidents.

18.4 Week 4 (2026-01-20 to 2026-01-26)

Recovered from the prior week's softness. Reporting v2 dogfooding sprint produced eight customer-issue tickets (all addressed).

18.5 Week 5 (2026-01-27 to 2026-02-02)

Strongest week of the quarter for new ARR. Reporting v2 GA-readiness review held mid-week; green-lit for the following Monday.

18.6 Week 6 (2026-02-03 to 2026-02-09)

Reporting v2 GA shipped Tuesday. Migration uptake started ahead of plan. One P1 incident (rate-limit cluster cascading restart), resolved within 4 minutes; post-incident review filed.

18.7 Week 7 (2026-02-10 to 2026-02-16)

Mid-quarter forecast call: forecast on track. Universal Inbox beta opened to the second cohort (200 customers).

18.8 Week 8 (2026-02-17 to 2026-02-23)

Workflow Studio v3 scope-decision week. Product council ratified the canvas-renderer rewrite addition; slip to Q2 acknowledged.

18.9 Week 9 (2026-02-24 to 2026-03-02)

Strong renewals week. NDR cohort attainment tracking ahead of plan.

18.10 Week 10 (2026-03-03 to 2026-03-09)

Universal Inbox GA-readiness review held Friday; green-lit for the following week.

18.11 Week 11 (2026-03-10 to 2026-03-16)

Universal Inbox GA shipped Thursday. Onboarding-flow telemetry indicated higher-than-expected completion rates from minute one.

18.12 Week 12 (2026-03-17 to 2026-03-23)

First full week of Universal Inbox GA-traffic. Native Slack threading shipped to the first launch cohort.

18.13 Week 13 (2026-03-24 to 2026-03-30)

Quarter-close week. Mobile push for SOC 2 alerts shipped Friday.

End of per-week detail.

19. Closing Remarks

This is the last quarterly report on the v1 reporting template. Starting in Q2, we'll publish the operational view in the new format ratified by the program office in March. The headline-level metrics will stay consistent so trend-over-trend comparisons remain straightforward; the detail sections will reorganise around the four operating regions rather than around the four functional organisations.

The leadership team thanks the broader management group for the hands-on contribution to this report's data and qualitative content. The next quarterly view will land 10 business days after Q2 close, with the customary executive read-out on the second Friday after publication.

19.1 Acknowledgements

• Engineering leadership team — for the section 11 write-ups.
• CSM leadership — for the customer-voice section 12 contributions.
• Program office — for the cross-functional project index and the operational-risk detail.
• Finance — for the rapid-turnaround financial highlights and the capital-efficiency analysis.
• People operations — for the headcount, attrition, and engagement detail.
• Security — for the compliance-posture section.

19.2 Distribution

This report is distributed to:

• Board of directors and observers (full).
• Leadership team (full).
• Broader management team (full, redacted version on request).
• All-hands snapshot (financial highlights and outlook only).
• Investor update (financial highlights and outlook only).

19.3 Feedback

Feedback on this report is welcome and is collated by the program office into the next-quarter template-refresh exercise. Please send comments or corrections by end of the second week of Q2.

Final. Q1 2026 Operations Report.