Brett Huff

Brett Huff requested further details on CoStar Group's commercial EBITDA guidance, specifically identifying the top investment priorities, and sought clarification on the reported reductions in Matterport-related costs.

Answer

CoStar Group CEO Andy Florance confirmed approximately $120 million in eliminated duplicative public company costs from the Matterport acquisition, including executive compensation and HR/finance areas. CFO Chris Lown outlined key commercial segment investments for 2026, including building CoStar Australia, European expansion, CoStar Debt Solutions origination workflow, integrating Real Estate Manager and Visual Lease into CoStar, a new Lease Benchmarking Product, a new homes information product, STR profitability modules, AI across businesses, new Matterport camera development, and additional salespeople.

Brett Huff asked for clarification on the top investment priorities driving the commercial EBITDA guidance and details regarding the previously mentioned cost reductions at Matterport.

Answer

CoStar Group CEO Andy Florance clarified that Matterport's cost reductions amounted to approximately $120 million in duplicative public company costs, including executive compensation, HR, and finance. CFO Chris Lown outlined key commercial segment investments for 2026, including CoStar Australia's de novo build, European expansion, CoStar Debt Solutions' origination workflow, integration of Real Estate Manager and Visual Lease into CoStar, Lease Benchmarking, new homes information, STR profitability modules, AI deployment across businesses, new Matterport camera development, and additional salespeople.

Brett Huff from Stephens requested detailed insights into Homes.com's bookings, including rep productivity (especially for newer hires), the number of reps still needing to ramp up, and any pricing adjustments made.

Answer

CEO Andy Florance acknowledged the "remarkable headcount growth" at Homes.com, which could impact per-person productivity, but noted consistent bookings growth and positive ROI from new salespeople. He mentioned slowing salesforce growth for training. CFO Chris Lown added there was a "slight increase in pricing" this quarter, with a focus on market penetration.

Brett Huff requested more details on Homes.com's bookings, specifically regarding rep productivity, the ramp-up of newer sales personnel, pricing adjustments, and other factors contributing to the bookings growth.

Answer

CEO Andy Florance acknowledged the challenges of managing remarkable headcount growth at Homes.com, which can impact per-person productivity, but noted consistent bookings growth and a positive ROI for incremental salespeople. He mentioned slowing salesperson growth to improve training and onboarding. CFO Chris Lown added that there was a slight increase in pricing this quarter, with a focus on penetration.

Brett Huff asked about the mix of AI monetization, including premium editions and consumption-based pricing, given that 30% of customers are using AI and usage is increasing. He also inquired whether the trend of closing more bigger and multi-product deals has begun to show positive impacts on Workiva's gross retention rate (GRR).

Answer

CEO Julie Iskow explained that Workiva has been using a usage-based pricing model for 6-7 years, not seat-based, and also employs a 'good, better, best' model for premium offerings. CFO Barbara Larson stated that Workiva continues to maintain a strong GRR and is building that into its forward-looking model.

Brett Huff inquired about Workiva's AI monetization strategy, specifically the mix of monetization methods, including premium editions and consumption-based pricing, and any implications for gross margins. He also asked if the company is seeing positive impacts on its gross retention rate (GRR) from the increasing number of bigger and multi-product deals.

Answer

CEO Julie Iskow explained that Workiva's pricing is usage-based, not seat-based, for 6-7 years, charging based on volume and usage metrics. She noted monetization through the 'good, better, best' model by placing advanced features in premium offerings. CFO Barbara Larson stated that Workiva continues to maintain a strong GRR, which is built into its forward model.

Brett Huff asked how the current macroeconomic environment factors into Workiva's long-term guidance and inquired if key partners, like the Big 4, are altering their approach to the ESG market.

Answer

CFO Jill Klindt affirmed that the company continues to operate with its 2027 and 2030 targets in mind, balancing investment in growth with margin improvement levers. CEO Julie Iskow stated that Workiva and its partners remain aligned on the ESG market, viewing it as being driven by regulation, performance, and risk mitigation, with no change in their joint go-to-market strategy.

Brett Huff asked if Vertex has observed any AI tech budget crowding out that might have contributed to the entitlement slowdown or ARR slowdown. He also sought an update on the e-invoicing opportunity, specifically the progress in expanding country coverage with acquired technology and readiness for upcoming mandates.

Answer

President and CEO Chris Young stated that Vertex has not explicitly seen AI tech budget crowding out in their business, noting that some AI-focused customers are still doing business with them. He confirmed that Vertex is now in 39 countries for e-invoicing, a significant push in 2025, and is ready to serve mandates in Belgium, France, and Germany with its combined compliance and e-invoicing offering.

Brett Huff asked if Vertex has observed any AI tech budget crowding out that might have contributed to the entitlement or ARR slowdown, and requested an update on the e-invoicing opportunity, including progress on expanding country coverage and readiness for upcoming mandates.

Answer

Chris Young, President and CEO of Vertex, stated that they have not explicitly seen AI tech budget crowding out impacting their business. He confirmed Vertex is now in 39 countries for e-invoicing, a significant push in late 2025 and into 2026, with a combined compliance and e-invoicing offering ready for mandates in Belgium (launched in January), France, and Germany, ensuring coverage for major countries.

Brett Huff asked if the hesitancy among progressive marketing organizations to buy aggressively has changed, and if customers are now buying side-by-side with legacy platforms in anticipation of switching.

Answer

Bill Magnuson (CEO, Braze) noted that switching costs and budget constraints still exist, requiring careful qualification and timing. He pointed to increased investment in premium channels (SMS, WhatsApp) and a resumption of 'credits upsells' (customers buying more as they consume faster than projected) as signs of normalization and willingness to invest for ROI.

Brett Huff asked if the hesitancy among progressive marketing organizations to buy aggressively has changed, and if customers are now buying Braze alongside legacy platforms in anticipation of switching.

Answer

Bill Magnuson (CEO, Braze) noted that switching costs and budget constraints still exist, requiring careful qualification and timing. He pointed to over 90% growth in SMS and WhatsApp usage as a sign of willingness to invest in premium, mid-funnel channels for ROI. He also observed a 'normalization' with customers running out of credits early and making upsells, indicating a return to more typical buying patterns.

Brett Huff requested an anecdote to explain why marketing dollars continue to be spent amid macro uncertainty and asked about the impact of foreign exchange assumptions on the full-year revenue guidance.

Answer

CEO Bill Magnuson explained that while spending on new growth initiatives is cautious, budgets are being directed toward consolidation and optimization, where Braze wins against legacy vendors who have 'taken their eye off the ball.' CFO Isabelle Winkels clarified that FX has a de minimis impact on guidance, as the Japanese Yen is the only non-USD contract currency and represents a low single-digit percentage of revenue.

Brett Huff inquired about the time to value with Domo's composable approach and the balance between improving profitability/free cash flow and the desire for more capital freedom to drive growth. He also asked about Domo's offensive and defensive strategies regarding AI.

Answer

Josh James (Founder and CEO, Domo) explained that composability allows Domo to quickly fill partner gaps, leading to fast time to value without impacting average deal size. He noted that while the company has become very efficient, they now see opportunities where more investment could accelerate growth, but they remain committed to their financial architecture. Tod Crane (CFO, Domo) emphasized that growth is the prize and current efficiencies haven't risked growth, but exciting opportunities exist. Regarding AI, Josh James stated Domo is playing offense, focusing on improving customer delivery by simplifying tasks and building agentic platforms. Daren Thayne (CTO and EVP of Product, Domo) highlighted Domo's focus on data governance for AI, allowing users to leverage AI with comfort.

Brett Huff from Stephens asked about Domo's time-to-value with its composable platform approach, its impact on deal size, and the balance between improving profitability/free cash flow and the need for increased spending to drive growth. He also questioned Domo's offensive and defensive strategies regarding AI.

Answer

Josh James, Founder and CEO of Domo, explained that composability allows for faster value delivery by filling specific partner gaps without significantly reducing average deal size. He acknowledged a desire for more capital to accelerate growth, given identified high-return initiatives. Tod Crane, CFO, reiterated that growth is the priority and current efficiencies haven't risked growth. Josh James and Daren Thayne, CTO and EVP of Product, detailed Domo's AI offense, focusing on simplifying customer tasks, building agentic platforms, and ensuring data governance.

Brett Huff from Stephens Inc. asked about the specific use cases driving higher net retention under the consumption model and sought clarity on the assumptions behind the upgraded full-year guidance.

Answer

CEO Josh James explained that growth comes from broader adoption across multiple use cases, aided by joint engagement with CDW partners in existing accounts. CFO Tod Crane attributed the improved guidance to finding more leverage in the model and focusing resources on strategic priorities with the highest ROI.

Brett Huff from Stephens Inc. requested a high-level stack rank of HubSpot's primary growth drivers, given the dynamic environment with AI, upmarket momentum, and new products.

Answer

CEO Yamini Rangan outlined several key drivers. The current playbook of platform consolidation and upmarket motion continues to work well. In addition, she identified three durable future levers: 1) intentional rep additions in specific segments, 2) the ongoing positive impact of the 2024 pricing changes rolling through the install base, and 3) AI as a multi-year tailwind, which will be monetized patiently via platform embedding and agents.

Brett Huff from Stephens Inc. asked for an updated ranking of HubSpot's primary growth drivers, considering recent changes like AI, the upmarket push, and new products.

Answer

CEO Yamini Rangan outlined that the current playbook of platform consolidation and moving upmarket is working and will continue. She then identified three additional durable growth drivers for the future: 1) intentional rep additions in specific segments, 2) the ongoing rollout of last year's pricing changes across the install base, which will provide a tailwind into next year, and 3) AI as a multi-year tailwind, which will be monetized patiently through both platform embedding and agents.

Brett Huff of Stephens Inc. asked management to rank Klaviyo's primary growth opportunities among international expansion, AI and conversational products, and moving upmarket.

Answer

Co-Founder and CEO Andrew Bialecki identified the AI-driven, autonomous CRM as the number one opportunity, stating his belief that every company will adopt an AI-native stack. He explained this is the core driver behind their service and marketing automation innovations. He ranked the enterprise and international expansion opportunities as significant growth areas with substantial runway, but secondary to the overarching AI strategy.

Brett Huff from Stephens Inc. inquired about how international performance compared to internal expectations and how much of the raised full-year guidance is being driven by this international strength.

Answer

CFO Amanda Whalen confirmed that international trends are 'incredibly strong' and a key accelerator, citing over 100% year-over-year new business growth in France, Germany, and Spain. She stated that the guidance assumes continued strong results from past investments and incorporates future benefits from new investments in go-to-market and website localization.