AI Workloads Push Cloudflare’s Growth and Workforce Reinvention
Cloudflare delivered one of the standout AI workloads SaaS earnings stories of the quarter, with revenue climbing 34% year on year to USD 639.8 million (approx. RM2,950 million). Management tied this acceleration directly to demand for AI and agentic workloads, routed through its global edge network and Workers developer platform. Large-customer momentum was particularly strong: 4,416 customers now pay more than USD 100,000 (approx. RM460,000) annually, and revenue from that cohort grew 38%, underscoring how AI-heavy use cases are concentrating spend. Yet the same AI demand is reshaping Cloudflare’s own operations. The company is cutting about 20% of its workforce—over 1,100 roles—as it pivots to an “agentic AI-first operating model.” Internally, AI agents and coding tools built on Workers are now core to how work gets done, driving both productivity and a new cost structure while preserving SaaS profitability amid intense infrastructure investment.
Freshworks Balances AI-Driven Growth with a 500-Person Layoff
Freshworks’ results highlight how AI-fuelled growth and workforce pressure can coexist. Revenue rose 16% year on year to USD 228.6 million (approx. RM1,055 million), powered by demand for its Employee Experience (EX) platform and AI Copilot. The company secured its first contract exceeding USD 1 million (approx. RM4.6 million) in annual recurring revenue, while the number of customers contributing more than USD 100,000 (approx. RM460,000) in ARR jumped 29% to 1,646. Despite this agentic systems revenue growth, Freshworks is cutting around 500 employees—11% of its workforce—to embed AI more deeply into product and engineering and to automate routine work. The restructuring will incur about USD 8 million (approx. RM37 million) in one-time charges but is designed to enhance long-term efficiency. With non-GAAP operating income at USD 41 million (approx. RM189 million) and strong operating cash flow, Freshworks is using AI to push both top-line momentum and a leaner operating model.
Veritone Bets on AI Training Data Services Despite Revenue Dip
Veritone’s quarter shows that not all AI-exposed companies see immediate top-line gains, but many still lean into the trend. First-quarter revenue slipped to USD 20.3 million (approx. RM94 million), down USD 2.2 million (approx. RM10 million) year on year, mainly due to weaker managed services and a tough hiring environment for its Broadbean business. Yet the company reaffirmed its full-year outlook, pointing to robust demand for AI training data services and public sector software. Through its aiWARE platform and Veritone Data Refinery, Veritone is positioning itself at the intersection of AI and data economies, serving enterprises, governments, content owners and hyperscalers. New agreements with Google and NVIDIA helped expand a near-term data-services pipeline to nearly USD 70 million (approx. RM323 million). While customer count fell as Veritone pruned smaller accounts, annual recurring revenue grew 9%, with consumption-based ARR up 50%, underscoring how data-centric cloud infrastructure Q1 2026 trends are reshaping its path toward profitability.
Allot’s Cybersecurity-First Strategy Feeds Recurring SaaS Growth
Network intelligence provider Allot illustrates how security-centric SaaS profitability can benefit from AI and automation trends, even without branding itself as an AI company. Revenue grew 14% year on year to USD 26.4 million (approx. RM122 million), the firm’s third straight quarter of double-digit expansion. The engine is its Security as a Service (SECaaS) business, which saw revenue surge 71% to USD 8.7 million (approx. RM40 million) and now contributes 33% of total sales. SECaaS annual recurring revenue reached USD 33.7 million (approx. RM155 million), while recurring revenue overall represented 67% of the quarter’s total. As telecom operators roll out more cybersecurity services to end users, Allot gains higher-visibility, subscription-based cash flows and record operating cash generation. Management signalled a mid-teens growth trajectory, supported by existing carrier deployments ramping through the year. In the broader context of AI workloads SaaS earnings, Allot’s model shows how security and network analytics can ride the same wave of cloud-native, recurring revenue adoption.
Amadeus Extends AI and Biometrics While Preserving Profitability
Travel-tech leader Amadeus underscores how AI expansion can coexist with disciplined earnings and cash flow. The company posted group revenue of €1.68 billion in the quarter, up 3.1% year on year, or 7.9% at constant currency, even as geopolitical tensions weighed on March bookings and cancellations. Operating income rose 2.8% to €474.9 million, while adjusted EBIT and earnings per share grew faster at constant currency, reflecting operating leverage. Amadeus is investing in AI capabilities and biometrics-driven traveller experiences across the travel ecosystem, broadening the range of solutions customers adopt. Free cash flow increased 4.5% to €273.6 million, supporting continued investment while maintaining a solid profitability profile. By embedding AI into core workflows—from airline retailing to airport journeys—Amadeus is building resilient, high-margin software revenue streams. Its performance illustrates how AI demand and cloud infrastructure Q1 2026 tailwinds can offset macro uncertainty, supporting both SaaS profitability and long-term platform expansion.