GTM 1Q26 Earnings - Ripping the Band-Aid

研报英文原文证据摘录

GTM 1Q26 Earnings - Ripping the Band-Aid

t noted that once it became clear DM wasn't seeing the growth rates they wanted, the path to 5%

revenue growth became low probability, so they used the window to accelerate the consumption shift simultaneously.

Upmarket. UM ACV grew +5% Y/Y (vs +6% in Q4), with UM mix improving to 75% of total ACV. UM NRR was in the 90s

but a step down from prior quarters; gross retention held up consistently. Mgmt attributed the deceleration to upsell/

expansion conversations taking longer than expected. On the $100K+ logo cohort declining 21 sequentially, mgmt

clarified this was driven by lack of upsell-in, not downsell-out or churn (both held flat-to-improving). Mgmt expressed

confidence that 5% UM growth has durability given the larger customer base ($100K-$1M+) has more diverse, stickier

pricing models, though the guidance contemplates a few point decelleration.

Downmarket. DM declined -11% Y/Y (vs -10% prior) and mgmt. noted with accelerated downsizing, it can decline

further to -20%. Mgmt is willing to approach some business only through a PLG motion in DM, where competition

(Apollo, Clay) is charging near-zero. Mgmt noted win rates against competitors like Clay have held up well, particularly

in competitive deals with sophisticated customers. Long-term, mgmt sees DM stabilizing at ~15% of total ACV (vs 25%

today), with the path back to growth coming primarily from UM acceleration mix shift, and lapping cleaner DM comps

once a year into rightsizing.

Consumption Monetization. Consumption currently sits at ~1/3 of ACV (seats ~2/3), with mgmt targeting ~50/50 in

12-18 months. In terms of the sequencing of new consumption pricing: mgmt is already running a version of this through