The numbers
Dropbox grew 0.8% last quarter. Strip out a product they are winding down and it was 2%. Total ARR grew 0.3%. Management guidance calls for revenue to decline between 0.4% and 0.9% for the full year. A $2.5B revenue business with 80% gross margins, and the forward number has a minus sign.
PagerDuty is worse. Revenue grew 1.0%. ARR is dead flat at $496M. Net dollar retention fell to 97%. Below 100% means existing customers are spending less, and new logos are just filling the hole.
Zoom sits at 5.5% growth. Enterprise net dollar expansion is 99%. DocuSign is at 8.7%, down from a 15% five-year average.
What this means for sales teams
Seat-based expansion is done. The model assumed headcount grows or holds. You land, you expand, you add seats as the customer adds people. Net revenue retention above 110% was the engine.
AI agents attack that directly. If an agent does the work of ten support reps, the customer does not need ten seats. They need one human and an agent. Expansion stops being a tailwind and becomes a headwind.
Anthropic crossed $19B in annualized run rate this year, up from $9B at the end of 2025. That money has a source. It used to buy CRM seats, ITSM modules, storage tiers. Every dollar going to agents is a dollar not expanding a seat contract.
The bifurcation
Infrastructure for AI is re-accelerating. Cloudflare guided to 28-29%. Snowflake printed 30% product growth. Twilio put up 20% on AI voice workloads. These companies get paid more when AI usage goes up.
Applications built on seats are drifting toward terminal state. HubSpot customer count growth: 21%, 19%, 18%, 17%, 16% over five straight quarters. Still a great company. But the direction is one way.
What it means for your patch
If you are selling seat-based software, your expansion motion is under pressure. Customers are not adding headcount the way they used to. Your net retention number matters more than your new logo number, because if NDR is below 100%, you are running to stand still.
If you are selling infrastructure, AI workloads, or tools that get consumed more when agents run, you are in the growth lane.
Quota math is changing. If your comp plan assumes 120% net retention and you are seeing 98%, your attainment drops 18 points before you even start prospecting. Ask your leadership what the actual retention number is, not what it was two years ago.