Alex Zukin

Alex Zukin asked Sasan Goodarzi about the durability of AI-driven growth trends, particularly in GBSG, and the monetization strategy and gross margin impact of the Anthropic partnership. He also asked Sandeep Aujla for more color on Mailchimp's revised timeline for double-digit growth (beyond fiscal 2026) and the potential implications.

Answer

Sasan Goodarzi, Chairman and CEO of Intuit, affirmed the durability of AI and HI-fueled growth across three vectors: disrupting assisted tax, mid-market acceleration, and business platform innovation driving pricing power and consumption. He clarified that Intuit retains all economics from OpenAI and Anthropic partnerships, with no margin expansion or sharing of revenue, as the focus is on customer experience and potential new customer growth. Sandeep Aujla, CFO of Intuit, detailed three monetization levers for AI: pricing for value (e.g., time savings), serving up ecosystem capabilities at the point of need (e.g., capital loans), and seamless connection to HI (driving higher revenue upsell and ecosystem attach). Regarding Mailchimp, he stated that Intuit is evaluating paths to scale and how Mailchimp fits into its offerings, with all options on the table, emphasizing a focus on customer problems over specific solutions.

Alex Zukin inquired about the durability of Intuit's growth trends, particularly in Global Business Solutions Group (GBSG) and AI partnerships. He asked for specifics on the Anthropic partnership's monetization plans and potential gross margin impact. Additionally, he sought more color on Mailchimp's updated outlook for returning to double-digit growth beyond fiscal year 2026, including key unlocks and contingencies.

Answer

Chairman and CEO Sasan Goodarzi affirmed the durability of Intuit's growth, driven by AI and HI across three vectors: disrupting assisted tax, accelerating mid-market growth, and enhancing the business platform with AI/HI innovations that provide significant savings and pricing power. He clarified that Intuit does not share economics with OpenAI or Anthropic, retaining all revenue, and expects continued company-level margin expansion. CFO Sandeep Aujla detailed AI monetization levers, including pricing for value, serving ecosystem capabilities, and seamless connection to human intelligence (HI). For Mailchimp, he stated that Intuit is evaluating paths to scale and fit within its offerings, with all options on the table, and expects double-digit growth beyond fiscal year 2026.

Alex Zukin inquired about the sources of margin leverage and efficiencies Intuit is experiencing from increased AI deployment and other durable operational improvements, given consistent outperformance in margins over recent quarters.

Answer

Intuit CFO Sandeep Aujla expressed confidence in scaling margins through efficiency, economies of scale, and disciplined capital allocation. He highlighted AI's role in improving productivity across the technology organization, salesforce, time to market for code rollout, and customer success, as well as in finance, legal, and HR. Aujla emphasized that margin expansion is driven not just by AI efficiencies but also by a culture of learning, scaling successful initiatives, and discontinuing ineffective ones, demonstrating consistent discipline in spend management.

Alex Zukin asked about the margin leverage and efficiencies derived from deploying AI, as well as other durable efficiencies contributing to Intuit's sustained margin outperformance.

Answer

CFO Sandeep Aujla affirmed confidence in scaling margins through efficiency, economies of scale, and disciplined capital allocation. He detailed how AI improves productivity across technology, salesforce, time to market, customer success, finance, legal, and HR. He emphasized a culture of continuous learning and disciplined spend management, scaling effective initiatives and discontinuing ineffective ones.

Alex Zukin of Wolfe Research LLC asked about the strategy to mix-shift customers to higher service tiers using new AI functionality, whether it's a 'push' or 'pull' dynamic, and if it can be achieved with margin expansion.

Answer

CEO Sasan Goodarzi described the opportunity as helping customers consolidate their disparate apps and data onto Intuit's all-in-one platform, which a Forrester study showed can yield a 300% ROI. He characterized the strategy as both a 'push' and a 'pull.' The AI agents create a 'pull' by demonstrating value and encouraging organic adoption. Concurrently, Intuit will 'push' customers by evolving its product lineup to inspire consolidation and overcome inertia, effectively creating an ERP-like system for SMBs.

Patrick, on behalf of Alex Zukin, asked for the drivers behind Credit Karma's significant outperformance and why annual guidance was not updated despite strong first-half results.

Answer

CEO Sasan Goodarzi attributed Credit Karma's growth to both macro improvement (40%) and strong execution (60%) within the "one consumer platform" strategy, which integrates TurboTax and improves the shopping experience for financial products. CFO Sandeep Aujla added that the company faces more challenging year-over-year comps for Credit Karma in the second half of the year. Both executives confirmed they will re-evaluate full-year guidance after Q3, which is their standard practice.

Alex Zukin asked about the consumption trends observed in January and February that informed Snowflake's fiscal year 2027 guidance, seeking insight into what specifically gave management confidence for a stronger guide compared to the previous year. He also requested an update on Snowflake AI ARR and details on the puts and takes for the free cash flow margin guide, particularly after digesting the Observe acquisition.

Answer

CEO Sridhar Ramaswamy explained that the guidance incorporates all available data up to the moment of the call, adhering to a strict process focused on historical information and reliable future prediction. He noted that the difference from the previous year includes the launch and adoption of Snowflake Intelligence and the emergence of agentic AI. CFO Brian Robins confirmed that the free cash flow seasonality will mirror prior years, with the majority collected in Q4. He stated that the 23% FCF margin guidance includes a 150 basis point headwind from the Observe acquisition, with its revenue, operating margins, and free cash flow impact fully integrated into the numbers.

Alex Zukin asked about the consumption trends observed in January and February post-holiday, and what specific data points contributed to the confidence in Snowflake's stronger fiscal year 2027 guidance compared to the previous year. He also requested an update on Snowflake AI ARR and the puts and takes for the 23% free cash flow margin guide, including the impact and trajectory of the Observe acquisition.

Answer

Sridhar Ramaswamy, CEO, stated that the guidance incorporates all available data and adheres to a strict process based on historical information and reliable future prediction. He noted that the launch and adoption of Snowflake Intelligence and Cortex Code represent new factors compared to the previous year. Brian Robins, CFO, clarified that free cash flow seasonality would mirror prior years, with the majority collected in Q4. The 23% FCF margin guide includes a 150 basis point headwind from the Observe acquisition, with all its financial impacts (revenue, operating margins, FCF) fully integrated into the outlook.

Alex Zukin asked about the confidence and direction of travel for Snowflake's expansion rate, particularly as customers leverage the AI and multi-product portfolio. He also asked Brian Robbins about the timing of large deals, comparing Q2's 'one-time bump' from large deals to Q3's four large deals, and if their timing affected the beat magnitude.

Answer

Sridhar Ramaswamy, CEO, described a 'virtuous cycle' where customers expand use cases, gain value, and build confidence, noting that AI adoption is made easy on Snowflake without requiring pre-commits. He clarified that large deals don't immediately impact revenue, often leading to initial discounts. Brian Robbins, CFO, reiterated that product revenue is the leading indicator, and quarterly beats are less significant than the raised full-year guidance, which reflects improved business trends.

Alex Zukin asked about the confidence and direction of Snowflake's expansion rate, particularly how AI portfolio leverage and multi-product adoption influence consumption patterns. He also asked CFO Brian Robbins about the timing of large deals and their impact on the magnitude of quarterly revenue beats.

Answer

CEO Sridhar Ramaswamy described a virtuous cycle where initial deals lead to expanded use cases, driven by the ease of AI adoption on Snowflake's platform, which offers existing governance and a risk-free consumption model. He clarified that large deals typically don't have an immediate positive revenue impact and are not directly tied to quarterly consumption. CFO Brian Robbins reiterated that product revenue is the leading indicator, and the full-year guidance best reflects long-term business trends, noting an improved business view over the last 90 days.

Alex Zukin from Wolfe Research, LLC sought to understand the drivers behind the consumption acceleration, asking whether it was a normalization of the demand environment or more attributable to Snowflake being included in new AI budgets and new products unlocking spend.

Answer

CEO Sridhar Ramaswamy clarified that while the core analytics business remains the strong foundation, there is a clear trend of AI influencing customer decisions. He noted that large customers are allocating specific budgets for AI projects on Snowflake, and that AI was involved in nearly 25% of all deployed use cases in Q2. He expects this trend to continue and accelerate, becoming an increasingly significant growth driver.

Alex Zukin asked about Zoom's ownership structure in foundation model companies, specifically the Anthropic stake, and the sustainability of mid-teens growth in Zoom Phone and high growth in Zoom Contact Center, considering deferred revenue dynamics.

Answer

Michelle Chang (CFO, Zoom) clarified Zoom's minority stake in Anthropic as a critical strategic partner, noting a $532 million pre-tax gain in Q4 from its valuation change. She affirmed the durability of mid-teens growth for Zoom Phone, citing 19% penetration of the meetings base (as of Zoomtopia 2024) and significant competitive wins. For Zoom Contact Center, she highlighted four consecutive quarters of high double-digit growth, accelerating in Q4, with all top 10 deals including paid AI and 4 of 10 including Zoom Voice Agent. Eric Yuan (Founder and CEO, Zoom) added that AI makes Zoom more essential for SMBs.

Alex Zukin asked about Zoom's ownership structure in foundation model companies, specifically the Anthropic stake, and the sustainability of mid-teens growth in Zoom Phone and high growth rates in Zoom Contact Center, considering deferred revenue dynamics.

Answer

Michelle Chang, CFO, Zoom, confirmed a $532 million pre-tax gain in Q4 from strategic investments, mainly Anthropic, highlighting it as a critical partner in Zoom's federated AI approach. She reiterated durable mid-teens growth for Phone and high double-digit growth for Contact Center, driven by share gains and AI value, noting that 6 of the top 10 Contact Center deals also pulled through Phone.

Alex Zukin asked about Zoom's AI monetization strategy for current and upcoming quarters, and sought clarification on deferred revenue being slightly below the high end of guidance but with a strong outlook for the next quarter.

Answer

CEO Eric Yuan highlighted AI monetization across the entire product portfolio, including Custom AI Companion, new SKUs for AI Companion online, and vertical services like Zoom Contact Center's Virtual Agent and AI Assistant. CFO Michelle Chang stated that deferred revenue ended at the upper end of the range with consistent Q4 guidance, noting no specific call-outs or shifts.

Alex Zukin asked Eric Yuan about Zoom's AI monetization strategy for the current and coming quarters, and Michelle Chang about whether deferred revenue being slightly below guidance's high end was due to any shifts between quarters.

Answer

Eric Yuan, Founder and CEO, detailed AI monetization across elevating Zoom Workplace with AI (AI Companion usage, Custom AI Companion sales, new online SKUs) and vertical services (Contact Center, Virtual Agent, Revenue Accelerator). Michelle Chang, CFO, clarified that deferred revenue ended within the expected range with no specific shifts to call out.

Alex Zukin from Wolfe Research asked how AI adoption is influencing the monetization timeline and competitive positioning, and also questioned if any headwinds in CRPO or billings metrics might contradict the strong revenue performance.

Answer

Founder & CEO Eric Yuan stated that AI Companion acts as a platform to empower other products, helping win deals in areas like Contact Center. CFO Michelle Chang noted a partial abatement of deal scrutiny seen in Q1. Regarding RPO, she explained that while the 5% growth is strong, it is lapping a very high comparable from the prior year, which affects the year-over-year metric.

Speaking for Alex Zukin, an analyst asked for more detail on the deal sizes driving Zoom Contact Center's growth to a triple-digit million ARR business and inquired about the competitive landscape, specifically regarding greenfield versus replacement deals.

Answer

CEO Eric Yuan reported that Contact Center customer count grew 65% year-over-year and noted that none of the top 10 deals in Q1 were replacements of existing cloud-based vendors, implying a focus on on-premise migrations and greenfield opportunities. He also highlighted that channel partners drove 6-7 of the top 10 deals. CFO Michelle Chang added there was a 10% year-over-year mix shift towards the AI-centric Elite SKU.

Alex Zukin asked how Workday plans to monetize third-party agents leveraging Workday Data Cloud and ensure value capture from its intelligence layer. He also questioned if the 35% operating margin target for FY28 remains on the table.

Answer

Aneel Bhusri (CEO) stated that Workday will monetize third-party agents through a consumption model tied to its API/agentic layer, which is built on Workday's unique metadata, security, data model, and business process framework. Gerrit Kazmaier (President, Product and Technology) elaborated on a tiered pricing structure via Flex Credits, monetizing raw API calls, Data Cloud access, and premium agent APIs. Zane Rowe (CFO) clarified that the incremental investment aims to drive growth higher within the 12-15% range, and the FY28 operating margin target will be updated at the next financial analyst update, with a current focus on growth.

Alex Zukin (Wolfe Research) asked how Workday plans to monetize third-party agents leveraging Workday Data Cloud, ensuring value capture for the data context provided. He also inquired if the 35% operating margin target for FY28 remains on the table.

Answer

CEO Aneel Bhusri stated that Workday aims to be an evolving layer on top of hyperscalers, charging for consumption of compute and application cycles, and ending 'free rides' on its system of record. President, Product and Technology Gerrit Kazmaier detailed a tiered pricing structure for AI/programmatic access via Flex Credits, monetizing API calls, Data Cloud access, and premium agent APIs. CFO Zane Rowe clarified that the incremental investment aims to move growth higher within the 12-15% range, and the FY28 margin target will be updated later, prioritizing growth over exclusively hitting that margin.

Alex Zukin asked about Workday's confidence in next year's 13% growth rate post-Analyst Day, specifically regarding customer budgets, demand environment, and propensity to allocate AI budget to Workday. He also inquired about the inorganic contribution to next year's 13% guide and the future pace of M&A.

Answer

CEO Carl Eschenbach reiterated confidence in the approximate 13% subscription revenue guide for next year, citing momentum from acquired companies, organic innovation, and expansion into new markets (Middle East, India, Public Sector globally). CFO Zane Rowe estimated acquired revenue contributes roughly one point to next year's growth, emphasizing a high bar for M&A based on technology, culture, and integration.

Alex Zukin asked about Workday's confidence in the 13% growth rate for next year, specifically if anything since Analyst Day (budgets, demand, AI allocation) provides more confidence. He also asked about the inorganic contribution to next year's guide and the future M&A pace.

Answer

Carl Eschenbach (CEO, Workday) reiterated confidence in the 13% subscription revenue guide for next year, citing momentum from acquired companies, organic innovation, and expansion into new markets (Middle East, India, public sector globally). Zane Rowe (CFO, Workday) estimated acquired revenue contributes approximately one point to next year's growth, emphasizing significant synergy. He stated no change in the high bar for M&A, focusing on technology, culture, and integration.

Alex Zukin asked Dylan Field about products or usage patterns that have surprisingly exceeded expectations, specifically mentioning DevMode and Make, and how Figma holistically views the tailwinds to growth from these products in fiscal 2026. He also asked Praveer Melwani about Figma Make's contribution to growth in fiscal 2025 compared to pricing, and if any pricing tailwinds are still factored into the fiscal 2026 guidance.

Answer

Praveer Melwani, CFO, Figma, highlighted the momentum in Make, with weekly active users up 70% quarter-over-quarter and adoption among $100K+ customers growing from 30% to 50%. He noted strong excitement for Dev Mode and Dev Mode MCP, which is resonating with customers for round-trip workflows. Praveer explained that pricing and packaging renewals will anniversary in March 2026. He stated that Make and AI features are baked into the guidance based on current utilization and adoption trends, expecting a slow build rather than an immediate surge, with the onus on Figma to deliver long-term value.

Alex Zukin asked Dylan Field about which products or usage patterns, specifically DevMode and Make, have surprised him to the upside, and how these contribute to tailwinds for growth in fiscal 2026. He also asked Praveer Melwani about Figma Make's expected contribution to growth in 2026 relative to pricing in 2025, and any remaining pricing tailwinds in the 2026 guidance.

Answer

Praveer Melwani, CFO, Figma, responded, highlighting Make's momentum with 70% QoQ weekly active user growth and 50% adoption among $100,000+ customers. He emphasized Dev Mode's importance, especially with Dev Mode MCP and the new Claude Code integration enabling round-tripping, positioning Figma as a full product platform. Melwani explained that pricing renewals anniversary in March 2026, coinciding with Make add-ons/credits launch. Make and AI features are baked into guidance based on current utilization, expecting a 'slow build' for add-ons as more surfaces draw credits.

Alex Zukin asked about the potential impacts of the OpenAI integration on top-of-funnel, cross-sell, or revenue uplift over the next 12-18 months, and for insights into the trajectory of net dollar retention for the upcoming quarters.

Answer

Dylan Field, Co-founder and CEO of Figma, stated it's early days for the ChatGPT integration, which focuses on FigJam diagramming, allowing users to iterate in ChatGPT and then refine in Figma. He noted user excitement and time savings but no monetization details yet, with active discussions with OpenAI. Praveer Melwani, CFO of Figma, attributed the net dollar retention increase to 131% for the $10,000+ cohort (up 2 points quarter-over-quarter) to the platform approach, pricing/packaging benefits, and new product functionality, while acknowledging tougher comparisons from the 2024 Dev Mode rollout.

Alex Zukin asked about the drivers of voice strength in Q4, differentiating between voice AI-driven and traditional voice use cases, and the outlook for 2026. He also inquired about the Q1 organic growth guidance, its visibility, the level of conservatism in the full-year guidance, and the 2026 gross profit dollar growth commentary.

Answer

Thomas Wyatt, Chief Revenue Officer, explained that voice adoption was broad across self-service, ISV community, and direct enterprise, with voice AI agents contributing. Aidan Viggiano, Chief Financial Officer, expressed confidence in the Q1 guidance due to broad-based strength and consistent trends. She detailed that 2026 gross profit growth is expected to be similar to organic revenue growth, driven by higher-margin products, supply chain optimizations, and the absence of 2025 email migration costs.

Alex Zukin inquired about the drivers of voice strength in Q4 2025, seeking a breakdown between voice AI-driven use cases and traditional voice, and the outlook for 2026. He also asked about the Q1 2026 organic growth guidance compared to the previous year, the level of conservatism in the full-year guidance, and clarification on the 2026 gross profit dollar growth commentary.

Answer

Thomas Wyatt, Chief Revenue Officer, explained that voice strength was broad-based across self-service, ISV, and direct enterprise channels, driven by voice AI agents and internal AI assistants. Aidan Viggiano, Chief Financial Officer, expressed confidence in the Q1 2026 guidance, noting it's the highest in three years due to broad-based strength across products and sales channels. She attributed the full-year prudence to usage-based revenue and detailed that 2026 gross profit growth is expected to be similar to organic revenue growth, driven by higher-margin products, supply chain optimizations, and the absence of 2025 email migration costs.

Alex Zukin asked a two-part question about voice performance relative to expectations and its future growth contribution, and for the sequential gross margin change when adjusted for FX and A2P fees.

Answer

CEO Khozema Shipchandler stated that voice is performing very well, driven by AI demand, and is gross margin accretive, though its impact is moderated by the large messaging business. CFO Aidan Viggiano clarified that after adjusting for fees and FX, non-GAAP gross margin was roughly flat quarter-over-quarter.

Alex Zukin asked about bookings growth expectations for fiscal 2026, whether accelerating sales cycles are observed due to AI adoption or SaaS conversion, and the linearity/seasonality of the SaaS business. He also inquired about the free cash flow margin guide and the balance between buybacks and M&A.

Answer

Brian Miller, CFO, stated that SaaS bookings are expected to grow in 2026, with growth fairly consistent across the year. Lynn Moore, President and CEO, added that sales cycles are back to normal, with no significant acceleration or deceleration, and AI is not yet meaningfully impacting sales growth. Regarding free cash flow, Brian Miller expects absolute dollars and margins to grow, driven primarily by earnings growth. Lynn Moore emphasized the company's strong balance sheet and free cash flow, enabling both M&A opportunities and the significant share repurchase authorization.

Alex Zukin asked about bookings growth expectations for fiscal year 2026, whether sales cycles are accelerating due to AI or other factors, and the expected linearity and seasonality of the SaaS business. He also inquired about the free cash flow margin guidance, potential conservatism, and how the new $1 billion share repurchase program balances against M&A enthusiasm.

Answer

CFO Brian Miller stated that SaaS bookings are expected to grow in 2026 with fairly consistent growth across the year, and guidance will be modified as conditions evolve, noting the For The Record acquisition is not yet included. President and CEO Lynn Moore indicated that sales cycles are back to normal, with no significant acceleration or slowing. Brian Miller added that AI is not yet meaningfully impacting sales. Regarding capital allocation, Lynn Moore emphasized the company's strongest-ever balance sheet and free cash flow, enabling both M&A opportunities and the significant share repurchase, which he views as warranted given the outlook and stock valuation.

Alex Zukin of Wolfe Research LLC asked about the level of conservatism in the outlook regarding macro impacts and questioned why the free cash flow margin was raised by 100 bps when the tax bill provided a 200 bps benefit.

Answer

President & CEO Lynn Moore stated there is not significant conservatism in the 2025 outlook related to macro factors. EVP & CFO Brian Miller explained the free cash flow guidance also reflects the positive impact of higher earnings, particularly from strong-performing transaction revenues. He advised against assuming a simple doubling of the tax benefit for next year's modeling.

Alex Zukin questioned HubSpot's monetization strategy for third-party agents and agent networks that frequently access and action information within HubSpot, and the potential consumption tailwinds from credits on ARR growth for 2026 and beyond.

Answer

CEO Yamini Rangan stated that HubSpot operates as an open platform, encouraging data ingestion and partner building, but will monitor, meter, and monetize platform access at scale, especially for high-frequency extraction or bulk data export. She emphasized that access to HubSpot's intelligent customer context is valuable and will be priced fairly. Regarding credits, Rangan noted real usage beyond included credits, driven by measurable value from agents like Customer Agent (60% of consumption) and Prospecting Agent. She highlighted customers scaling credit purchases beyond initial experiments, viewing credits as a durable emerging growth lever for 2026 and beyond.

Alex Zukin inquired about HubSpot's monetization framework for third-party agents accessing its platform and the potential consumption tailwinds from credits on ARR growth for 2026 and beyond.

Answer

CEO Yamini Rangan stated that HubSpot operates as an open platform for data ingestion and partner building, but will monitor, meter, and monetize high-frequency extraction or bulk export of data at scale. She confirmed that real usage of credits beyond included amounts is emerging, driven by measurable value, with Customer Agent accounting for nearly 60% of consumed credits. Prospecting Agent also shows strong adoption, and customers are beginning to scale credit usage.

Alex Zukin from Wolfe Research asked if the disruption in marketing is causing customers to pause or if it's a call to action, and also how HubSpot's monetization strategy adapts if LLMs become the primary user interface.

Answer

CEO Yamini Rangan asserted that marketers are not pausing but are actively looking to HubSpot for a new playbook to grow beyond search, making it a significant opportunity. CTO Dharmesh Shah added that HubSpot is creating value by using agents as lead magnets themselves, with leads flowing directly into a customer's HubSpot account, creating a powerful new flywheel for inbound marketing.

Alex Zukin from Wolfe Research LLC asked if marketing disruption is causing customer hesitation or acting as a call to action, and how monetization evolves if LLMs become the primary user interface.

Answer

CEO Yamini Rangan stated that marketers are not pausing; they are actively looking to HubSpot for new playbooks to navigate the world beyond search, making it a call to action and a major opportunity. CTO Dharmesh Shah added that HubSpot is seeing an unexpected use case where customers create agents on Agent.ai as lead magnets, a new form of inbound content. These leads flow directly into their HubSpot portal, creating a powerful flywheel effect.

Alex Zukin asked about the expected Freddy AI tailwinds to growth in calendar 2026, how Freshworks monetizes alternative agentic solutions plugged into its platform, and the level of conservatism in the 2026 guidance compared to a year ago, including billings seasonality.

Answer

Dennis Woodside, CEO and President, highlighted Freddy AI's momentum with over 8,000 paying customers and $25 million in ARR, driven by the AI Agent Studio, increased pricing, and Copilot growth. Tyler Sloat, COO and CFO, expressed confidence in the 2026 guidance due to strong EX performance and pipeline, noting that the first guide of the year is always the toughest but reflects their execution confidence.

Alex Zukin asked about the expected Freddy AI tailwinds to growth in 2026 compared to 2025, and how Freshworks monetizes situations where customers integrate alternative agentic solutions into their platform. He also asked about the level of conservatism in the 2026 guidance and billings seasonality.

Answer

CEO Dennis Woodside stated that Freddy AI crossed 8,000 customers and $25 million in ARR, nearly doubling year-over-year, with significant upside expected from the recently launched AI Agent Studio and increased pricing. He noted that Copilot continues to grow with over 50% attach rates in large deals and that Freshworks doesn't frequently see customers experimenting with over-the-top solutions. COO and CFO Tyler Sloat affirmed confidence in the 14% growth guidance for 2026, driven by the EX opportunity and strong pipeline, acknowledging that the first guide of the year is the toughest.

Alex Zukin followed up on AI, asking when it might become a significant growth catalyst to inflect the business trajectory. He also asked about Q2 billings performance, specifically regarding any pull-ins, and the confidence in the second-half guide.

Answer

CEO Dennis Woodside positioned AI as one of several key growth levers, alongside ESM, Device 42, and market share gains. COO & CFO Tyler Sloat addressed billings, noting a minor, non-significant pull-in and stated that the strong H2 guide reflects confidence from a solid Q2 performance and healthy pipeline.

Alex Zukin questioned how ZoomInfo monetizes the connectivity and broader engagement with customer AI solutions, the expected tailwind from this, and compared the current guidance conservatism to the previous year's initial guide.

Answer

Henry Schuck, Founder and CEO, explained that expanding surface areas for data consumption, like MCP server integration, are monetized through a consumption-based model. Graham O’Brien, CFO, stated that the cRPO coverage provides comfort, and the initial full-year guide is expected to be the most conservative for the year.

Alex Zukin asked about ZoomInfo's monetization strategy for customers connecting their AI solutions to the platform and the expected tailwind from this engagement. He also questioned the conservatism of the 2026 guidance compared to the previous year, given cRPO coverage.

Answer

Henry Schuck, Founder and CEO of ZoomInfo, explained that monetization occurs through a 'consumption-based model,' similar to their DaaS and operations business, with charges based on data consumption. He noted that the 2026 guidance does not include any tailwind from these new products or expanding surface areas. Graham O’Brien, Chief Financial Officer, stated that while cRPO coverage provides comfort, the initial 2026 guide is expected to be the most conservative full-year perspective, similar to their approach in 2025.

Alex Zukin from Wolfe Research asked about the company's confidence in sustaining the recent improvement in Net Revenue Retention (NRR) and requested more detail on the trajectory of operating margin leverage.

Answer

CFO Graham O'Brien expressed confidence in returning NRR to the 90s, driven by improving upmarket retention, a favorable business mix shift, and expansion opportunities with Copilot and Go-to-Market Studio. He reiterated that margin improvement is a matter of timing and will occur in step functions rather than being linear.

Alex Zukin requested an update on the performance of monday CRM and monday Service in Q4, their contribution to net new ARR, and their outlook for the next year as the company moves upmarket.

Answer

Eran Zinman, Co-CEO, expressed satisfaction with the progress of both CRM and Service in Q4. He noted that Q4 saw a seasonal benefit for Work Management, which is monday.com's more mature enterprise product, leading to its overperformance. He clarified that CRM and Service did not underperform and are expected to continue growing and becoming a larger part of the company's revenue in 2026 due to strong momentum.

Alex Zukin requested an update on the performance of monday CRM and monday Service in Q4 against expectations, their contribution to net new ARR, and their outlook for the next year, especially in the context of the company's upmarket shift.

Answer

Eran Zinman, monday.com Co-CEO, expressed satisfaction with the progress of both CRM and Service. He noted that Q4 was more oriented towards enterprise deals, which seasonally benefited Work Management (a more mature enterprise product), rather than indicating underperformance from CRM or Service. He expects both products to continue growing and become larger contributors to revenue in 2026.

Alex Zukin inquired about the current demand environment, linearity within the quarter for large deals, the deceleration in billings, and the expected progression of Net Dollar Retention (NDR) for the remainder of the year.

Answer

Co-CEO Roy Mann and CFO Eliran Glazer addressed the questions. They noted strong overall demand, particularly upmarket, but acknowledged some softness in the downmarket segment due to Google algorithm changes. Glazer stated that calculated billings are an imperfect metric and the company focuses on ARR. He confirmed the NDR of 111% was expected due to lapping a price increase and is projected to remain stable through fiscal 2025.

Alex Zukin asked when Atlassian expects to see increased monetization and acceleration/stability in Cloud numbers, given the benefits from Teamwork Collection's AI drivers, Rovo, and agentic interactions.

Answer

CEO and Co-Founder Mike Cannon-Brookes reiterated confidence in the long-term guide, stating that monetization and acceleration are already evident. He pointed to RPO growth (up for the third consecutive quarter) and Cloud revenue acceleration as proof. He emphasized that AI is a primary reason for Cloud migrations and Teamwork Collection upgrades, with over 5 million AI users and millions of agentic workflows contributing to long-term customer commitments and continuous improvement.

Alex Zukin asked when Atlassian expects to see increased monetization and acceleration or stability in cloud numbers specifically, given the current benefits from AI consumptive drivers within Teamwork Collection, Rovo adoption, and agentic interactions.

Answer

Mike Cannon-Brookes (CEO, Atlassian) stated that monetization and acceleration are already being seen, pointing to the RPO and NRR numbers, which have ticked up and accelerated. He emphasized that AI is a primary driver for cloud upgrades and Teamwork Collection adoption, leading to long-term customer commitments and continued improvement rather than a singular step change.

Alex Zukin asked about the current demand environment, including tailwinds and headwinds from a budgetary perspective, and how ServiceNow plans to monetize AI and its product set, specifically the consumption component, throughout the year, given the company's progress towards its $1 billion ACV target.

Answer

Chairman and CEO Bill McDermott highlighted the shift towards platforms that span functions and cross-business processes, emphasizing radical simplification and cost reduction through AI. He noted strong pipelines and customer investment driven by fast ROI. President, Chief Product Officer, and COO Amit Zavery added that the hybrid pricing model, including Assist packs, is driving rapid consumption and contributing to subscription revenue as customers expand agentic use cases.

Alex Zukin inquired about the demand environment, including budgetary tailwinds and headwinds, and how ServiceNow plans to monetize AI and its product set, specifically regarding the consumption component and the path to $1 billion ACV for Now Assist.

Answer

Chairman and CEO Bill McDermott discussed the shift from legacy systems to cross-functional platforms, emphasizing ServiceNow's role as a consolidator for AI-driven business reinvention, leading to strong pipelines and growth across industries. President, Chief Product Officer, and COO Amit Zavery added details on the hybrid pricing model for AI, noting rapid adoption of assist packs and increasing consumption as customers expand agentic use cases.

Alex Zukin asked about demand trends and linearity of bookings throughout the quarter, the consumption and utilization of AI credits, and the potential impact of the Q4 renewal cohort on cRPO growth and Pro Plus expansion.

Answer

CEO Bill McDermott described demand as 'amazing' and 'better than I've ever seen it,' citing oversubscribed world forums and a clear C-suite understanding of the AI platform. He noted historically consistent linearity and a 55x growth in assists since May. CFO and President Gina Mastantuono explained that proactive renewal pull-ins from Q4 boosted Q3 cRPO and provided strong momentum for Q4, with improving Pro Plus attach rates.

Alex Zukin asked about demand trends and linearity of bookings throughout the quarter, the consumption and utilization of AI credits, and the potential impact of the Q4 renewal cohort on cRPO growth and Pro Plus expansion.

Answer

CEO Bill McDermott described demand as 'amazing' and 'better than I've ever seen it,' citing oversubscribed world forums and a clear C-suite understanding of the AI platform. He noted historically consistent linearity and a 55x growth in assists since May. CFO and President Gina Mastantuono explained that proactive renewal pull-ins from Q4 boosted Q3 cRPO and provided strong momentum for Q4, with improving Pro Plus attach rates.

Alex Zukin of Wolfe Research LLC inquired about the drivers behind ServiceNow's strong execution amid a tough macro environment and sought clarity on the conservatism baked into the guidance for the U.S. federal sector.

Answer

Chairman & CEO Bill McDermott credited the outperformance to the company's culture and the transformative impact of its Agentic AI platform, which is driving customer consolidation. President & CFO Gina Mastantuono added that the federal sector performed as expected and that the forward guidance prudently accounts for ongoing budget tightening in that vertical.

Alex Zukin asked for more details on the significant jump in contribution from new products to net new ACV, seeking to understand what drove this inflection. He also questioned the drivers of sequential growth in net new ARR in Q3, specifically regarding the impact of the First Student deal.

Answer

Sanjit Biswas, CEO and Co-founder, Samsara, explained that the increase in new product contribution was balanced across several products launched earlier in the year, following initial customer trials. Dominic Phillips, CFO, Samsara, clarified that Q3's strength was broad-based, driven by record large customer additions and emerging product uptake, with the First Student deal contributing more ARR in Q2 than Q3.

Alex Zukin inquired about the traction of new product launches, specifically which ones are moving fastest from interest to deployment, and how net new ACV growth from these products is trending for the full year. He also asked about the drivers behind the strong Q2 net new ARR performance, including macro factors, new product impact, and linearity of slipped deals, and the outlook for the second half.

Answer

Sanjit Biswas (CEO) highlighted positive momentum for routing, commercial navigation, maintenance, and asset tags, noting trials and pilots across industries. Dominic Phillips (CFO) confirmed 8% of new ACV came from these applications. Dominic also explained that Q2's strong net new ARR was partly due to Q1 deals closing, strong large customer momentum with $1 billion ARR from $100k+ customers, and a record 17 new $1M+ ARR customers.

Alex Zukin of Wolfe Research LLC inquired about the nature of elongated sales cycles, asking if deals that closed in May retained their original size and scope, and about the current state of pipeline construction. He also asked about the expanded opportunities and competitive positioning resulting from new OEM partnerships.

Answer

Chief Financial Officer Dominic Phillips confirmed that the deals that closed in May did not change in construction, describing the Q1 slip as a multi-million dollar impact. He also noted record pipeline generation in Q1, signaling strong customer demand despite macro uncertainty. Co-Founder and CEO Sanjit Biswas added that the OEM partnership strategy is focused on reducing customer friction by making it easier to connect new assets to Samsara's cloud platform.

Alex Zukin followed up with a nuanced question on billings, asking about the delta in the Q4 billings guide, how much of the raise is operational outperformance versus FX or one-time factors, and the underlying run-rate billings growth.

Answer

Blake Grayson (CFO, DocuSign) explained that the full-year billings guide was raised by $44 million, reflecting operational performance flowing into Q4. He reiterated that billings, including early renewals, will always be part of the metric, but the focus is on the health of the business and expansion within those renewals, pointing to Q3's underlying growth as an indicator.

Alex Zukin asked if IAM is driving early renewal strength and expansions among existing customers, shifting from its previous skew towards new users. He also inquired about the impact of changes in search and SEO on Docusign's top-of-funnel dynamics.

Answer

CFO Blake Grayson confirmed that IAM is contributing to early renewal strength and expansions, noting higher gross retention rates for IAM customers, though it's still early days. CEO Allan Thygesen stated no current impact from SEO/search changes, highlighting Docusign's strong brand and organic traffic, and emphasized that the biggest opportunity is upselling existing e-signature customers to IAM.

Alex Zukin of Wolfe Research asked CJ Desai about his specific skill set and network's ability to make the biggest impact in the next 12-24 months, focusing on incremental growth and inflection. He also asked about the landing strategy for AI-native companies, specifically whether they are landing with Voyage AI or Atlas.

Answer

CJ Desai, President and CEO, identified two key impact areas: penetrating Fortune 500 and Global 2000 companies at a higher rate, leveraging his personal relationships with technology leaders, and planting seeds with AI-native companies in Silicon Valley, utilizing his venture and tech network. He provided examples of AI-native companies moving to MongoDB due to scaling issues with alternatives like Postgres, and others starting with Voyage AI embeddings before considering replacing their vector DB and operational database with MongoDB.

Alex Zukin asked CJ Desai where his specific skill set and network could make the most significant impact on MongoDB's growth and inflection points over the next 12 to 24 months. He also sought clarification on the landing strategy for AI-native companies, specifically whether MongoDB is leading with Voyage AI, Atlas, or a combination of both.

Answer

CJ Desai, President and CEO, identified two primary areas for his personal impact: deepening penetration within Fortune 500 and Global 2000 enterprises through his relationships with technology leaders, and cultivating relationships with AI-native companies in Silicon Valley. He provided examples of AI-native companies adopting Atlas due to scaling issues with alternatives, and others starting with Voyage AI embeddings before considering broader MongoDB platform adoption for vector and operational databases.

Alex Zukin asked for more nuance on the AI use cases and platform differentiators driving market share gains, and when this might materially impact growth. He also questioned how the company successfully balances significant margin outperformance with simultaneous investments for growth.

Answer

President & CEO Dev Ittycheria reiterated that AI's contribution is not yet material but highlighted MongoDB's architectural advantages with JSON, integrated vector search, and embedded Voyage models. He noted enterprise AI adoption is still early. CFO Mike Berry explained the balance of growth and profitability is achieved because revenue growth is the primary driver of margin expansion. He credited a company-wide effort to reallocate spending to high-ROI opportunities while investing in growth.

Alex Zukin asked about the expected duration of the acceleration trend in the non-AI cohort, given strong forward-looking metrics like billings, RPO, and CRPO. He also inquired about the progression of gross margins and gross profit dollar growth, especially considering the largest customer's improved unit economics and the acceleration of the AI cohort.

Answer

Olivier Pomel, Co-Founder and CEO, Datadog, stated that while consumption ebbs and flows are hard to predict, the midterm and long-term motion of digital transformation and cloud migration remains steady. David Obstler, CFO, Datadog, highlighted engineering efforts for cloud platform efficiency and a broad customer base balancing volume discounts, reaffirming the company's commitment to maintaining a gross margin of approximately 80%.

Alex Zukin asked about the expected duration of the non-AI cohort acceleration trend, given strong forward-looking metrics like billings, RPO, and CRPO. He also inquired about the progression of gross margins and gross profit dollar growth, especially with the AI cohort acceleration, despite the largest customer receiving better unit economics.

Answer

CEO Olivier Pomel expressed confidence in the midterm to long-term trends of digital transformation and cloud migration, acknowledging that short-term consumption ebbs and flows are harder to predict. CFO David Obstler attributed gross profit dollar acceleration to cloud platform efficiency efforts and the balance between volume discounts for large customers and the influx of many smaller new customers, reiterating the long-standing gross margin target of plus or minus 80%.

Alex Zukin from Wolfe Research asked about the potential evolution of Paylocity's retention rates (currently 92%+) as the company sells more AI functionality, monetizes Airbase, and cross-sells products, inquiring if retention is expected to increase towards long-term targets. He also sought Paylocity's updated view on organic versus inorganic innovation, particularly given the successful integration and market expansion from the Airbase acquisition.

Answer

Steve Beauchamp, Executive Chairman, expressed satisfaction with the Airbase acquisition as a proof point but clarified no strategic shift in M&A, maintaining a focus on organic innovation while remaining open to strategic acquisitions. He stated that broadening product offerings and providing world-class service is a recipe for positive retention results over time, noting current retention remains above 92%. Ryan Glenn, Chief Financial Officer, added that Airbase's success, as their largest acquisition, boosts confidence in future similar endeavors.

Alex Zukin asked about the impact of AI functionality, Airbase monetization, and cross-selling on client retention rates (currently 92%+), and how retention might evolve towards long-term targets. He also sought comments on the company's view of organic versus inorganic innovation one year post-Airbase acquisition.

Answer

Executive Chairman Steve Beauchamp and President and CEO Toby Williams stated that broadening product offerings and world-class service drive positive retention, which they expect to continue. They noted Airbase's success as a proof point for acquisitions but affirmed no strategic shift in capital allocation, maintaining a balance of organic innovation and strategic M&A, with Airbase being the largest acquisition to date.

Alex Zukin of Wolfe Research LLC asked which Airbase features are driving the most cross-sell interest, about potential gross margin impacts, and for the expected revenue contribution from Airbase in fiscal 2026.

Answer

Executive Chairman Steve Beauchamp identified expense management as the module with the highest adoption, often serving as the entry point. CFO Ryan Glenn stated that Airbase's margin profile is not materially different from the core business and that its revenue contribution, while growing, remains a small portion of the total.

An analyst on for Alex Zukin asked about the pricing strategy for new CFO products and the latest trends in sales hiring and productivity.

Answer

Executive Chairman Steven Beauchamp explained that pricing for products like Airbase will align with models common to the CFO suite, separate from the HCM PEPY model, and that this has been received well. President and CEO Toby Williams reiterated the focus on driving productivity from the existing sales force with modest headcount growth, a strategy that has proven effective and will likely inform the FY26 plan.

Alex Zukin asked about common usage patterns among the 21 AI-native customers with over $100,000 ARR, specifically if their AI products are built around Kafka or Apache Flink. He also sought insights into potential cloud revenue step-down for the next fiscal year, considering Q4 headwinds that might reverse, RPO acceleration, and optimization stabilization.

Answer

CEO Jay Kreps explained that AI-native companies use Confluent for general tech needs and AI-specific use cases like data flow for suggestions, recommendations, and actions, emphasizing the need for ongoing evaluation and real-time analytics. CFO Rohan Sivaram stated that fiscal year 2026 guidance is not yet available but advised considering late-stage pipeline momentum, normalized optimization, Flink's growth, and the low single-digit Q4 impact from a large customer when modeling.

Alex Zukin from Wolfe Research LLC inquired about the drivers behind Adobe's strong Q3 performance, specifically bifurcating the impact of AI-first products versus core pricing and quantity, and the company's confidence in sustaining double-digit Digital Media ARR growth. He also asked about Adobe's strategy to help CMOs adapt to the evolving LLM-based discovery landscape and the best-positioned portfolio segments.

Answer

Shantanu Narayen, Chairman & CEO, expressed confidence in the creative opportunity and differentiated solutions, noting broad-based monetization across AI-first and existing products. David Wadhwani, President of Digital Media Business, detailed contributions from Creative Cloud Pro migration, new user acquisition via Firefly, and strong performance in Business Pro and Consumer with AI Assistant and Acrobat Studio. Anil Chakravarthy, President of Digital Experience Business, highlighted the Adobe Experience Platform and apps, Gen Studio, and LLM Optimizer as key to helping CMOs strengthen direct consumer relationships and adapt to new discovery funnels. Shantanu Narayen further emphasized the importance of owned sites, personalized experiences, and content velocity driven by Gen Studio.

Alex Zukin asked if Q3 marked a turning point for Adobe, given flat or growing Net New Digital Media ARR, a raised guide, and exceeding AI-first ARR targets early. He sought clarification on whether this was driven more by AI-first product adoption or core PxQ, and confidence in sustained double-digit DM ARR growth. He also followed up on Adobe's role in helping CMOs adapt to the web's shift from search to LLM-based discovery, identifying which portfolio parts are best positioned and when this impact will be visible in the Digital Experience book of business.

Answer

Shantanu Narayen, Chair and CEO, expressed confidence in the creative opportunity and differentiated solutions, affirming strong aspirations for the digital creative business and increased confidence in execution and monetization. David Wadhwani, President of Digital Media, detailed broad strength across creative professionals (driving Creative Cloud Pro migration), creators (attracting new users via third-party models and integrated workflows), business professionals/consumers (AI Assistant, Acrobat Studio), and enterprise creative automation (Gen Studio). Shantanu added that 25% YoY MAU growth for Creative + Acrobat shows demand, and Express offers a unique conversational AI approach. Regarding the LLM shift, Shantanu explained that Adobe Experience Platform and apps will see a tailwind as brands strengthen direct consumer relationships. He highlighted Adobe Experience Manager for conversational owned sites, AEP for personalization at scale, and Gen Studio for increased content creation velocity, noting that DX subscription revenue is growing significantly faster than competitors at scale.

Alex Zukin noted the strong Q3 performance, including flat to growing Net New DM ARR and exceeding AI-first ARR targets, asking for a bifurcation of growth drivers between AI-first products and core PxQ, and confidence in sustained double-digit DM ARR growth. He also asked about Adobe's role in helping CMOs adapt to LLM-based information discovery, which portfolio parts are best positioned, and when this will impact the DX book of business.

Answer

Shantanu Narayen, Chair and CEO, expressed confidence in the creative opportunity and differentiated solutions, affirming strong aspirations for the digital creative business. David Wadhwani, President of Digital Media, detailed broad momentum from Creative Cloud Pro migrations driven by AI usage, new user acquisition via Firefly, strong contributions from Acrobat AI Assistant and Acrobat Studio, and creative automation through Gen Studio in enterprises. Shantanu Narayen further explained that Adobe Experience Platform and apps, Gen Studio, and Adobe Experience Manager are well-positioned to help CMOs adapt to LLM-driven discovery by enabling direct consumer relationships, personalized content, and conversational owned sites, noting strong subscription revenue growth in DX.

Alex Zukin from Wolfe Research LLC posed a two-part question about competition: first, regarding the down-market environment with Adobe Express's growth, and second, on the 'coopetition' with vendors like Meta and how GenStudio partners with their ad tools.

Answer

David Wadhwani, President of Digital Media, addressed the first part by highlighting Express's integration into the broader enterprise content supply chain, which drives adoption. On the second part, CEO Shantanu Narayen and Anil Chakravarthy, President of Digital Experience, explained that ad platforms like Meta seek partnerships with Adobe. They stated GenStudio helps advertisers optimize creative and ROI, making Adobe a key partner for creating and deploying content across all major ad channels.

Alex Zukin inquired about the potential of the new Oracle AI Database to open up the general enterprise inferencing market, the expected pace of adoption by sophisticated customers, and how current supply constraints might impact this demand.

Answer

Chairman and CTO Larry Ellison affirmed that the demand for using AI on private data is 'insatiable,' with CEOs and heads of government now engaging. He explained that Oracle's AI database allows for secure vectorization of all data and is bundled with leading LLMs (Gemini, Grok, ChatGPT, Llama) in the Oracle Cloud, enabling customers to ask any question about their combined private and public data without compromising security. CEO Safra Catz added that this innovation will drive the migration of Oracle databases to the cloud, both public and dedicated regions, allowing enterprises to leverage AI for their own data with their preferred LLMs.

Alex Zukin asked if the new Oracle AI Database truly unlocks the general enterprise inferencing market, inquiring about the expected adoption pace over the next few years, how quickly enterprise customers will begin interrogating their data in this new fashion, and whether current supply constraints are hindering this demand.

Answer

Larry Ellison (Chairman and CTO) confirmed that the Oracle AI Database is indeed a game-changer for the enterprise inferencing market, predicting 'insatiable' demand. He highlighted that the database addresses critical customer concerns by securely enabling AI on private data through vectorization and bundling with leading LLMs (ChatGPT, Gemini, Grok, Llama) available in the Oracle Cloud. This allows customers to combine public and private data for complex queries without compromising security. Safra Catz (CEO) added that this innovation will accelerate the migration of Oracle databases, which dominate the enterprise market, to the cloud (public, dedicated regions, or Cloud@Customer), allowing enterprises to leverage AI for their proprietary data. Both executives indicated Oracle is well-positioned to meet this demand over the coming years.

Alex Zukin inquired about the pacing and adoption of the Oracle AI Database in opening up the general enterprise inferencing market, including customer readiness and the impact of current supply constraints.

Answer

Chairman & CTO Larry Ellison and CEO Safra Catz emphasized the "insatiable" demand from enterprises to use AI on their private, secure data. They highlighted the Oracle AI Database's ability to vectorize data, its robust security models, and its bundling with leading LLMs, facilitating the migration of traditional Oracle databases to the cloud.

Alex Zukin from Wolfe Research asked how iWant fits into the overall product strategy with Beti, what defines success for iWant, and for an update on retention trends related to Beti and the potential combined impact with iWant.

Answer

CEO Chad Richison explained that both products drive significant retention. He differentiated them by noting iWant is a broad, system-wide interface that touches every module and piece of data, while Beti is more focused on the payroll process. He described iWant as a new, simpler way to access all information, which in turn makes features like Beti 'sweeter' and easier to use, representing a fundamental shift in user interaction.

Alex Zukin from Wolfe Research LLC questioned the dynamic between very strong bookings and a sequential slowdown in recurring revenue growth. He also asked about the wide Q3 guidance and implied Q4 acceleration, probing if go-live predictability is changing.

Answer

Executive VP & CFO Jeremy Johnson attributed the current revenue growth rate to a prior 'air pocket' from periods without 40% sales growth. He explained that the benefits of the recent bookings strength are now beginning to flow through, leading to the guided acceleration from ~14% constant currency growth in Q2 to a 16-19% range in Q4. He assured that the company has good visibility and confidence in this back-half ramp.

Alex Zukin from Wolfe Research asked about the company's confidence in sustaining the recent improvement in Net Revenue Retention (NRR) and requested more detail on the trajectory of operating margin leverage.

Answer

CFO Graham O'Brien expressed confidence in returning NRR to the 90s, driven by strong upmarket retention, favorable mix shift, and expansion opportunities with Copilot and Go-to-Market Studio. He reiterated that margin improvement is expected to materialize over time as a 'step function' rather than being linear, viewing it as a timing progression, not a conflict with growth.

Alex Zukin sought to understand the primary drivers of the strong license revenue outperformance in the quarter. He also asked if the Net Retention Rate is expected to trend down further before troughing and about any potential for further go-to-market efficiencies.

Answer

CFO & COO Ashim Gupta attributed the license revenue performance to a favorable mix of deals in terms of duration and deployment method, stating there was nothing unusual to report. On NRR, he reiterated that the trend is embedded in the guidance and the company is bullish on agentic activity but expects no material impact this year. He confirmed the go-to-market restructuring is complete but the company will continue to seek efficiencies.

An analyst on behalf of Alex Zukin from Wolfe Research asked for more calibration on the current buying environment and the degree of conservatism embedded in the 2025 guidance.

Answer

Co-Founder and CEO Tom Shea described the Q4 environment not as one of abrupt deal halts, but of a 'lack of urgency' from large multinational and government customers, noting that CFOs are sensitive buyers who react early to uncertainty. He characterized the guidance as prudent in light of factors outside their control, while reaffirming confidence in the company's product strategy and ability to execute.

On behalf of Alex Zukin, Patrick inquired about trends in customer budgets for data initiatives throughout the year and the outlook for spending in Q4 and into the next year.

Answer

CEO Amit Walia explained that customer spending has shifted from purely defensive, cost-saving projects to include offensive, transformational initiatives. He emphasized that GenAI is embedded in every conversation, driving pilots and new use cases. Walia identified data, AI, and cybersecurity as the primary areas where customers are consistently allocating their budgets.

Patrick from Wolfe Research asked for clarification on the dynamics of self-managed subscription renewals, where rates are high but duration is decreasing, and inquired about plans to further accelerate the on-premise to cloud migration story.

Answer

CFO Mike McLaughlin explained that shorter renewal terms are specific to self-managed on-prem subscriptions, not maintenance. This impacts upfront GAAP revenue recognition under ASC 606 but does not affect ARR or cash flow. He views this trend as a positive signal that customers are preparing to migrate, and expects migration growth to outpace overall cloud subscription ARR growth.

Speaking on behalf of Alex Zukin, Rich Magnus asked about the evolution of the competitive landscape over the past year and requested color on billings trends for the next two quarters.

Answer

CEO Dustin Moskovitz stated that the competitive landscape has not seen significant changes, noting that customers are often hesitating on large consolidation deals. COO Anne Raimondi expressed confidence in future billings, citing improved revenue operations, better sales rep enablement, and strong performance in international regions like EMEA and Japan, which act as leading indicators.

Asked about booking linearity, the source of SMB headwinds (churn vs. expansion), and modeling net new ARR. Also inquired about the target for converting free users to paid and the expected impact on NRR.

Answer

Bookings started slow but finished strong. SMB trends were consistent with the past, while enterprise was strong. Net new ARR growth is expected to improve through the year. The new model simplifies licensing (internal contributors are paid), which is expected to significantly increase the paid user base and potentially drive premium capability sales.

Asked about changes in the demand environment, the impact of generative AI on spending priorities, and the financial impact of the recent BSL license change.

Answer

The demand environment is consistent and has not materially changed. Generative AI is seen as a tailwind as it drives multi-cloud adoption, which benefits HashiCorp's portfolio. No revenue impact is expected from the BSL license change, as its purpose is to enable long-term investment in open innovation.