Aaron Kimson

Aaron Kimson, Director at Citizens JMP, inquired about Expensify's strategic position and competitive moats in an evolving AI landscape, particularly concerning the rise of AI-generated applications and "vibe coding." He also asked about the drivers behind the increase in paid members during Q4 2025, seeking clarity on whether it was primarily due to seasonal trends, broader macroeconomic conditions, or the ongoing migration to the New Expensify platform.

Answer

David Barrett, Founder and CEO of Expensify, explained that the company's moats include its collaborative nature, access to regulated financial networks (like virtual card issuance and ACH), and compliance requirements (PCI, AML). He views AI agents as potential new "seats" requiring spend controls, presenting an opportunity for growth rather than solely a threat, highlighting Expensify's five-year investment in an AI-first platform. Ryan Schaffer, CFO of Expensify, attributed the Q4 2025 paid member increase primarily to typical seasonal strength, noting that Q4 generally outperforms Q3, while January usually sees a seasonal dip. He also mentioned that the New Expensify migration is expected to aid customer retention and future user growth as it rolls out to more customers in 2026.

Aaron Kimson of Citizens JMP asked if Expensify's smaller scale and R&D spending are headwinds against larger competitors and questioned if AI could erode the company's moat with SMB customers by lowering costs for rivals to enter the space.

Answer

CEO David Barrett argued that Expensify's deep, chat-centric AI integration is a significant differentiator that is difficult for complex enterprise products to replicate, strengthening its moat. He believes competitors will struggle to simplify their products for the SMB market. CFO Ryan Schaffer added that Expensify's integrated product strategy is more efficient and that competitors' high-cost sales models remain a barrier to effectively serving the down-market segment.

Aaron Kimson of Citizens JMP asked for details on customer vertical exposure to potential tariffs, clarification on April's paid member count, and the specific accounting treatment for the upcoming Formula One movie expenses.

Answer

Executive Ryan Schaffer noted it's difficult to quantify tariff impacts as customers are in a 'wait-and-see' mode. David Barrett added that customers are 'holding their breath.' Schaffer confirmed April's paid members were 'essentially flat,' down less than 0.5% from Q1. Regarding the F1 movie, Schaffer explained that while cash payments were made previously, the full expense will be recognized on the income statement upon the movie's release, causing a significant S&M expense increase without a parallel cash flow impact in that quarter.

Aaron Kimson asked for clarification on what management means by reaching a 'new normal' by summer 2025 and whether that timeline is still reasonable. He also inquired about the company's potential to use price increases as a growth lever, considering the macro environment and increased product functionality.

Answer

CEO David Barrett defined the 'new normal' as the point when the new Expensify product becomes the company's primary brand identity, driven by customer migration and word-of-mouth, timed to capitalize on the summer F1 movie release. Executive Ryan Schaffer and CEO David Barrett both stated that while they are building significant pricing power, they plan to keep prices low in the near term to focus on acquiring new customers in a largely uncontested market, rather than squeezing existing ones.

Aaron Kimson inquired about the current revenue contribution from Expensify Travel and its potential future size. He also asked about the company's capital allocation strategy, specifically regarding future stock buybacks and the balance between private transactions and open market purchases.

Answer

CEO David Barrett explained that while Expensify Travel has significant potential, the company is not ready to share specific revenue figures. Regarding capital allocation, Barrett noted the company remains opportunistic with its cash reserves. Executive Anuradha Muralidharan added that strong fundamentals could lead to more bullish buybacks in the future, but no concrete plans are currently in place.

Aaron Kimson asked about the additional market uncertainty and geopolitical challenges contributing to the wider guidance range, and inquired about the ramp-up time for new Presort business wins and boomerang customers to impact volumes.

Answer

CEO Kurt Wolf explained that market uncertainties include potential government shutdowns affecting SendTech, possible Fed changes, and broader economic direction impacting the economically sensitive marketing mail in Presort. He clarified that while Presort volumes from new wins come in quickly, there's a long sales cycle, and it takes time for these wins to fully reflect in financials due to past major losses. He noted a significant increase in wins in Q1 2026 compared to Q4 2025.

Aaron Kimson asked about the reasons for Pitney Bowes' wider guidance range, specifically inquiring about additional market uncertainty and geopolitical challenges mentioned in the CEO's letter. He also questioned the immediate impact of new Presort business wins and 'boomerang' customers on volumes, asking if there's a ramp-up period.

Answer

CEO Kurt Wolf explained that market uncertainty includes potential government shutdowns affecting SendTech, possible changes at the Fed, and broader economic direction impacting the economically sensitive marketing mail in the Presort business. Regarding Presort wins, he noted that while volumes come in quickly, there's a long sales cycle, and it takes time for new wins to eclipse major losses from the first half of the previous year.

Aaron Kimson asked for a breakdown of the growth algorithm, specifically the contribution of organic components (migrations, expansions, new customers, new products, marketplace) to the 17%-18% ARR CAGR through FY28, and the glide path for migrations as a percentage of growth. He also inquired about the development approach for Underwriting Center for personal versus commercial lines, and investment sequencing.

Answer

CFO Jeff Cooper explained that migrations and expansions are often intertwined and contribute healthily, with a long runway for migrating the install base, alongside new customer wins and the potential of new products, emphasizing a broad-based growth algorithm without providing exact percentages. CEO Mike Rosenbaum stated that Underwriting Center uses the same underlying framework with different use cases, approaching it platform-first to share componentry, with investment sequencing based on stress-testing and customer collaboration for real use cases.

Aaron Kimson from Citizens JMP inquired about the pricing and target market for Guidewire Industry Intelligence and the potential impact of Japanese regulatory changes.

Answer

CEO Mike Rosenbaum explained that Industry Intelligence is valuable for both smaller insurers lacking data and larger carriers entering new markets. President & CRO John Mullen added that it elevates conversations to the C-suite. Regarding Japan, Mullen stated Guidewire is well-positioned to partner with insurers as they invest and expand, regardless of specific regulatory shifts.

Aaron Kimson of Citizens JMP inquired about the pricing model and target market for Guidewire Industry Intelligence and asked about the potential impact of Japanese regulatory changes on Guidewire's business.

Answer

CEO Mike Rosenbaum detailed that Industry Intelligence is valuable for both smaller insurers lacking data and larger carriers entering new markets. President John Mullen added that it facilitates C-suite conversations and that Guidewire is well-positioned to benefit from increased investment by Japanese insurers.

Aaron Kimson asked about Guidewire's relationships with state-backed property insurers and their potential growth as a part of the business. He also inquired about the long-term potential for Guidewire's share of the total Direct Written Premium (DWP) market.

Answer

CEO Mike Rosenbaum stated that state-backed insurers operate similarly to other insurance companies and Guidewire is excited to serve them, but he wouldn't project if their share of the business would grow. Regarding market share, he expressed a long-term goal of capturing over 50% of the DWP market, driven by the scale benefits and network effects of Guidewire's platform, ecosystem, and shared data assets.

Aaron Kimson of JMP Securities asked about the potential pricing model for Generative AI use cases and for an update on business activity and opportunities within the Workers' Compensation insurance segment.

Answer

CEO Mike Rosenbaum stated it is premature to define a GenAI pricing model, as the technology will be embedded within solutions rather than priced separately. Regarding Workers' Comp, he highlighted a growing opportunity for modernization, product enhancements, and network-based solutions, noting the segment is receiving increased focus due to its critical mass of customers.

Aaron Kimson asked about the sustainability of the strong P&C end-market and its impact on Guidewire, and also requested an update on the company's M&A outlook versus its organic investment strategy.

Answer

CEO Mike Rosenbaum emphasized the P&C industry's durability, stating Guidewire's goal is to provide agility regardless of market cycles. On M&A, he reiterated that while the company is in a position to be more opportunistic, it will be 'very careful' and 'picky,' as acquisitions are not necessary to achieve its long-term goals. He expressed high confidence in Guidewire's ability to build products organically.

Aaron Kimson from Citizens Financial Group, Inc. suggested that driving agent adoption might be more of a change management problem than a technology problem for nCino, asking if vertical software vendors need to hold customers closer through the implementation process for AI products. He also followed up on the two top 50 bank expansions (30% and 60%), asking if these were due to timing or indicated a broader, incremental shift in demand that could drive further expansions with large U.S. financial institutions.

Answer

CEO Sean Desmond emphasized nCino's long-standing focus on close customer collaboration, noting that field-deployed engineers help demystify AI deployment. He believes the challenge lies more in managing the 'dual workforce' of humans and digital partners rather than the technology itself, which is built on extensive domain expertise. Regarding the bank expansions, Desmond attributed them primarily to timing and M&A as a tailwind, also noting ongoing opportunities within existing commercial lines of business where customers haven't fully deployed nCino across all product lines.

Aaron Kimson suggested that driving agent adoption might be more of a change management problem than a technology problem for nCino, referencing Project SevZero. He asked if vertical software vendors need to hold customers closer during AI product implementations compared to historical processes. He also inquired if the significant 30% and 60% expansions with two top 50 banks were due to timing or a broader shift in demand for core commercial expansions.

Answer

Sean Desmond, nCino's Chief Executive Officer, emphasized nCino's long-standing focus on close customer relationships, enhanced by field-deployed engineers for AI adoption. He believes the challenge will be managing the 'dual workforce' of humans and digital partners, rather than the technology itself, which is built on 13 years of domain expertise. Greg Orenstein, nCino's Chief Financial Officer, attributed the large bank expansions to timing, specifically M&A as a tailwind. Sean Desmond added that opportunities exist even within existing commercial customers who haven't fully deployed nCino across all product lines.

Aaron Kimson questioned whether new functionality like Banking Advisor is compelling enough to drive early contract renewals and pull forward pricing tailwinds. He also asked about the potential risks from stablecoins to nCino's community bank customer base.

Answer

CEO Sean Desmond confirmed that strong interest in Banking Advisor is pulling renewal conversations forward and encouraging customers to adopt the new pricing model ahead of schedule. Regarding stablecoins, he noted that while nCino is monitoring the space, it is not currently a high-priority issue for its customers.

Aaron Kimson from Citizens JMP asked about the future competitive positioning of vertical AI agents like nCino's versus those from horizontal vendors. He also inquired about any feedback from the recent nCino Mortgage demonstration at a top-four bank.

Answer

CEO Sean Desmond emphasized the competitive advantage of nCino's process-centric data, arguing that understanding workflow is key to delivering valuable AI insights, a differentiator from vendors with only transactional data. Regarding the mortgage demo, he stated that while the feedback was positive, sales cycles at such large banks are typically long.

Aaron Kimson asked about a potential total addressable market (SAM) issue in commercial lending given the company's focus on consumer, and inquired about competitive implications from Rocket Mortgage's recent acquisitions.

Answer

CEO Sean Desmond reaffirmed the platform's value proposition and noted that AI innovations are being deployed first in their core commercial base. CFO Greg Orenstein added there is still plenty of global runway for commercial lending. Regarding Rocket, management stated they are well-entrenched in their target markets and do not see the acquisitions as a direct competitive impediment.

Aaron Kimson asked if the deposit account opening product is primarily sold to smaller institutions or also to enterprise banks, and about the strategic importance of that product.

Answer

Chief Executive Officer Pierre Naude clarified that the deposit account opening solution is sold across the entire market spectrum, typically as an integrated part of a larger platform sale. He stressed its strategic importance, as an efficient, multi-channel deposit-gathering capability is a core competitive advantage for banks, and nCino's solution provides a seamless experience.

Aaron Kimson questioned the primary execution risks associated with the upcoming pricing model transition and whether it would require significant operational changes. He also asked if the potential for over 15% subscription revenue growth in FY26 is driven more by a mortgage recovery or the core business.

Answer

CEO Pierre Naude stated that market studies show customers prefer the new volume-based pricing model, making internal execution discipline the main risk, not customer backlash. Regarding FY26, he deferred specific guidance but CFO Greg Orenstein noted that multiple growth levers, including new products like DocFox and Banking Advisor, consumer lending, and international expansion, provide a broad basis for future growth.

Aaron Kimson asked a high-level question about the strategic positioning of vertical software vendors versus horizontal platforms in an AI-driven world. He also asked for more detail on the home equity component within the consumer banking segment, its contribution to growth, and the potential for future re-segmentation.

Answer

Nima Ghamsari, Co-Founder, Chairman & Head of Blend, argued that vertical software is better positioned for the AI era as it can deliver faster, purpose-built ROI for specific industry challenges without requiring extensive customization. Amir Jafari, CFO and Head of Finance & Operations, explained that consumer banking growth is driven by both home equity seasonality, market share gains from the Rapid Home Equity product, and strength in other core banking products.

Aaron Kimson asked for details on the impressive $50 million expansion deal, including the customer relationship's evolution and RPO recognition timeline, and also inquired about the new business deposit account opening product's development and pricing.

Answer

CEO Nima Ghamsari described the $50 million deal as a multi-year partnership that expanded from mortgage to home equity, Blend Close, and consumer products. He also explained that the business deposit product was customer-driven, offering a consumer-like feel with complex business-specific logic on the backend, all unified on a single platform. Head of Finance and Operations Amir Jafari confirmed RPO disclosures remain consistent.

Aaron Kimson asked about the competitive importance of Blend's composable origination functionality when pursuing large financial institutions and the strategic rationale behind launching a dedicated business unit for Independent Mortgage Banks (IMBs).

Answer

Nima Ghamsari, Co-Founder and Head of Blend, emphasized that the Blend Builder platform provides essential flexibility and scalability for large institutions, allowing for faster and more efficient innovation. He explained that the new IMB unit creates focus to serve that market's unique, loan-officer-driven needs, which differ from those of banks and credit unions.

Aaron Kimson from Citizens JMP asked about the potential for stablecoins to impact payments revenue streams over the medium to long term. He also asked how the discontinuation of the Martech business improves guidance visibility and what is needed to accelerate back to double-digit growth.

Answer

Founder, Chairman & CEO Eric Remer stated that stablecoins are not on the current product roadmap as there has been zero customer demand, but they will remain responsive to the market. CFO Ryan Siurek explained that removing Martech reduces seasonality, improving visibility. He noted that ongoing optimization efforts will fund investments needed for future revenue expansion and acceleration.

Aaron Kimson from Citizens JMP Securities inquired about potential tariff exposure, asking if it was concentrated in the EverPro business and what percentage of revenue might be affected. He also asked EverPro CEO Josh McCarter about his key findings and strategic lessons from his time at Mindbody after six months in his new role.

Answer

CEO Eric Remer clarified that since the EverPro business is primarily 'break-fix' rather than new construction, they do not anticipate a direct impact from tariffs on their customers. EverPro CEO Josh McCarter shared his positive outlook, highlighting payments, cross-selling other products, and expanding the 'Service Nation' rebate program as key opportunities. Drawing on his experience at Mindbody, he noted that transformational work, such as restructuring sales, consolidating systems, and streamlining processes, is highly applicable to driving growth and efficiency at EverPro.

Aaron Kimson asked for a comparison of the payments opportunity and penetration maturity within the EverHealth vertical relative to EverPro. He also requested color on the pro forma customer count as of year-end 2024 to assist with modeling post-divestiture.

Answer

EverHealth CEO Evan Berlin explained that while the payments opportunity is smaller in EverHealth than EverPro, it is a growing area, particularly with the rise of high-deductible health plans. He stated they are in the early stages of building out payment workflows in core platforms and are focused on driving adoption. Executive Bradley Korch provided the pro forma adjustment, stating that the marketing technology divestiture impacts the customer count by approximately 15,000.

Aaron Kimson inquired about the progress ('inning') of the company's business optimization initiatives on both revenue and cost fronts and asked the new CFO to identify the single most important metric for investors.

Answer

CEO Eric Remer explained that transformation and optimization are happening in parallel, with cost savings intended to fuel reinvestment for growth. President Matt Feierstein and COO Evan Berlin added that there is a strong inventory of opportunities on both fronts. CFO Ryan Siurek declined to name a single metric, instead pointing to the importance of pro forma growth, subscription and transaction revenue performance, and the metric of customers enabled for more than one solution, which CEO Eric Remer highlighted as a key leading indicator.

Aaron Kimson asked about the motivation behind the new share repurchase authorization, its mechanics, and how the company plans to utilize it now that it is consistently generating cash.

Answer

CFO Balaji Gandhi described the repurchase plan as 'good housekeeping' that allows the company to be opportunistic during periods of significant share price volatility. He clarified that it does not represent a fundamental shift in capital allocation strategy but provides flexibility to act if a market dislocation occurs.

Aaron Kimson asked about the initial impact and future potential of Phreesia's recently announced integration with the Oracle Health marketplace.

Answer

Executive Balaji Gandhi stated that it is still early days since the announcement was just made and that while the company is happy to have formalized the relationship, there is nothing specific to report on its impact yet.