Alinda Li

Alinda Lee of William Blair inquired about RADCOM's capital allocation strategy for 2026, particularly regarding potential M&A activities, given the company's strong balance sheet with $109.9 million in cash and no debt. She also asked about the assumptions underpinning the 2026 revenue guidance.

Answer

CEO Benny Eppstein stated that M&A remains the company's top priority for capital allocation, with efforts to accelerate and prioritize related initiatives. Regarding the 2026 guidance of 8%-12% revenue growth, Mr. Eppstein explained it reflects being in the second half of the sales cycle for strategic opportunities, with an assumption that deals will close in the first half of the year.

Alinda Lee of William Blair inquired about RADCOM's capital allocation strategy for 2026, specifically regarding potential M&A activities, given the company's strong balance sheet with $109.9 million in cash and no debt. She also asked about the assumptions and philosophy behind the 2026 revenue guidance.

Answer

CEO Benny Eppstein stated that M&A remains the company's top priority for capital allocation, which they are actively trying to accelerate. Regarding the 2026 guidance of 8%-12% revenue growth, Mr. Eppstein explained that it reflects being in the second half of the sales cycle, with an assumption that strategic opportunities will close in the first half of the year.

Alinda Li of William Blair inquired about the progress of RADCOM's strategic partnerships with service management vendors like ServiceNow and AWS, and also asked about the company's capital allocation strategy given its cash balance of over $100 million.

Answer

CEO Benny Epstein stated that the partnerships are progressing well, with co-development and platform interconnection underway to build agent-to-agent use cases. Regarding capital allocation, Epstein identified potential M&A as the top priority and confirmed the company is currently evaluating several candidates.

Alinda Li inquired about the strategic importance of the new multiyear contract with Norlys, particularly what it signifies for RADCOM's geographic expansion efforts in Europe and its focus on the mid-tier market. She also asked about the company's go-to-market strategy, current sales capacity, and any plans for expansion.

Answer

CEO Benny Eppstein described the Norlys deal as a significant milestone, establishing a foothold in the European mid-tier market with a comprehensive RAN-to-core solution featuring Gen AI. He confirmed that RADCOM is actively looking to expand its sales capacity and go-to-market reach through strategic partnerships, like the one with ServiceNow, and by creating scalable product offerings for mid-tier operators.

Alinda Li asked about the types of customers adopting Custom AI Companion and the incremental value they are seeing compared to those using the free AI Companion.

Answer

Eric Yuan, Founder and CEO, stated that while Zoom aims for all customer segments to adopt Custom AI Companion, the current focus is on larger enterprise customers due to demand and the value proposition of integrating with third-party applications and generic frameworks for complex enterprise use cases. He also mentioned plans to introduce SKUs for SMBs.

Alinda Li, on behalf of Arjun Bhatia, asked about the types of customers adopting Custom AI Companion and the incremental value they perceive compared to users of the free AI Companion.

Answer

CEO Eric Yuan stated that Zoom initially focuses on relatively large enterprise customers for Custom AI Companion due to demand and its advanced functionalities, such as integration with third-party applications and generic frameworks for data search. He also expressed intent to introduce SKUs for online and SMB customers in the future.

Alinda Li asked about the drivers behind the Net Retention Rate (NRR) increasing to 100% and the factors contributing to the raised non-GAAP net income guidance beyond the noted tax benefit.

Answer

CFO Shig Hamamatsu attributed the NRR uptick to improved overall churn compared to the prior quarter and expects NRR to stay in the 99-100% range. He explained the higher net income guidance is driven by a combination of a tax law benefit, significant R&D efficiencies leading to operating leverage, and disciplined sales and marketing spending.

Alinda Li of William Blair inquired about the drivers behind the quarterly increase in Net Dollar Retention (NRR) and its sustainability, as well as the current demand environment.

Answer

CFO Shig Hamamatsu attributed the NRR improvement to strong retention in core UCaaS and residential services, which offset the anticipated churn from its largest customer, Regis. He expects NRR to remain around 99%. CEO Eric Stang described the general demand environment as 'steady,' but noted that demand for the Ooma AirDial product is clearly accelerating.

Alinda Li from William Blair inquired about the drivers for the 1% sequential increase in Net Dollar Retention Rate (NRR) to 99% and whether this level is sustainable now that the Regis/IWG seat reduction is complete. She also asked about the current demand environment.

Answer

CFO Shig Hamamatsu explained the NRR improvement was driven by better retention in traditional UCaaS and residential solutions, which offset the anticipated Regis churn. He stated that NRR should remain around 99% going forward. CEO Eric Stang described the UCaaS demand environment as "steady," while noting that demand for Ooma AirDial is clearly accelerating.

Alinda Li asked for a timeline on the rollout of new CTV product innovations and questioned how customer perception of DoubleVerify has changed since the launch of its unified Media Advantage Platform.

Answer

CEO Mark Zagorski outlined that initial CTV product iterations will launch before year-end, with a more robust implementation planned for early 2026. He described the unified platform as a game-changer, shifting client conversations from competitive bake-offs to strategic discussions about achieving verification, optimization, and outcome measurement, which differentiates DV from all competitors.