This quarter's results came in below expectations, primarily due to macroeconomic pressures leading to spending cuts by small and medium-sized enterprise clients, and the conversion rate of the newly launched AI website building tool falling short of expectations.

Key data: Revenue increased 12% year-over-year to $420 million, below market consensus; free cash flow decreased 8% year-over-year; net subscriber additions were only 23,000, the lowest in nearly three years.

Business progress: The upgraded version of the Studio platform was launched, but enterprise client migration has been slow; the payment business market share increased to 18%, but unit prices declined; management has focused investment on AI automated customer service, which has yet to contribute revenue.

Guidance and outlook: Next quarter's revenue guidance has been revised downward to $425-$428 million, and full-year guidance has been lowered to $1.73-$1.76 billion, reflecting deteriorating client retention rates.

Risk signals: Management's tone was notably strained, repeatedly emphasizing "caution" and "uncertainty"; a bright spot was international business (Europe) growing 12%, slightly better than North America, but insufficient to offset overall weakness.