Christopher Quintero

Chris Quintero asked for more context on the CFO transition, specifically whether Amy Butte's departure was planned post-IPO. He also questioned if issues faced by a competitor, Corporate Travel Management, were acting as a tailwind for Navan's enterprise momentum.

Answer

Ariel Cohen (CEO) stated that Amy Butte's critical role in preparing Navan for its IPO was complete, and with strong momentum, she decided to pursue her next opportunity, a decision supported by the board. Amy Butte (CFO) affirmed her pride in the company's accomplishments and the timing of her departure. Amy Butte (CFO) also noted that any competitive uncertainty or consolidation, especially among legacy players, signals an opportunity for Navan to gain market share due to its integrated AI platform.

Chris Quintero sought clarification on the CFO transition, asking if Amy Butte's departure was planned post-IPO, and if competitor issues were acting as a tailwind for Navan's enterprise momentum.

Answer

CEO Ariel Cohen stated Amy Butte's critical role in preparing Navan for IPO was complete, and she decided to pursue her next opportunity. CFO Amy Butte confirmed her pride in accomplishments. Amy Butte added that competitor consolidation or uncertainty signals an opportunity for Navan to gain market share due to its modern, integrated AI platform.

Chris Quintero inquired about the organic growth rate, specifically the nature of transaction volume strength (improvement vs. stabilization), and how Descartes plans to monetize its artificial intelligence (AI) capabilities, such as through higher prices or separate SKUs.

Answer

CEO Ed Ryan explained that Descartes achieved growth by gaining market share in flat transportation markets (Ocean, Truck) and benefiting from new regulations like BIS 50 and Type 86 filings. He noted AI's immediate impact on MacroPoint tracking rates, increasing them from 87% to 90%. For AI monetization, he described offering new automated services, like proactive rebooking of delayed shipments, which customers would pay for due to significant time and cost savings.

Chris Quintero inquired about the qualitative momentum of Manhattan Associates' services business heading into 2026, considering factors like fixed-fee models, faster implementations, and the migration of the on-premise customer base. He also asked about lessons learned from a food and beverage customer's conversion that included the entire Active portfolio and its broader applicability.

Answer

President and CEO Eric Clark stated that the services pipeline and backlog continue to strengthen, leading to optimism for Q4 and 2026, with the business performing well. Regarding the food and beverage customer, Mr. Clark highlighted that the unification story is strongly resonating with customers, who are increasingly recognizing the tangible benefits of the platform, driving both cross-sell and conversion opportunities.

Chris Quintero asked for a qualitative description of the momentum in Manhattan Associates' services business heading into 2026, considering factors like fixed-fee models, faster implementations, and on-premise base migration. He also inquired about lessons learned from a food and beverage customer's conversion that adopted the entire Active portfolio and its broader applicability.

Answer

President and CEO Eric Clark noted that the services pipeline and backlog have continued to strengthen throughout the year, leading to optimism for Q4 and 2026. He highlighted the services team's strong execution and ability to accelerate projects. Regarding the food and beverage customer, Mr. Clark emphasized that the unification story is strongly resonating with customers, who now see the platform's benefits as 'real,' driving both conversions and cross-sell opportunities.

Chris Quintero from Morgan Stanley asked how far along the company is with its go-to-market changes and the profile of new sales hires. He also followed up on the unchanged full-year services revenue guide despite the quarterly outperformance.

Answer

President & CEO Eric Clark stated they are 'just getting started' with the go-to-market changes, with many new hires coming from competitors like Blue Yonder and Oracle. Regarding services revenue, Clark confirmed the unchanged guidance reflects a conservative stance, as customers have flexibility to slow down or accelerate project timelines under time-and-materials contracts.

Chris Quintero asked about the large customer momentum, the specific investments made to support larger deals, and how Samsara plans to streamline bigger deals going forward. He also inquired about the European success, specific unlocks or learnings, and their applicability to broader international rollout.

Answer

Sanjit Biswas (CEO) detailed investments in dedicated strategic accounts sales teams, implementation/change management, robust security, integrations/APIs, and technologies like FirstNet. Dominic Phillips (CFO) attributed European success to sustained investment in go-to-market resources, lighthouse customers, and R&D for platform, security, scalability, and product-specific features like Bridge Strike.

On behalf of Keith Weiss, Christopher Quintero asked about the drivers of accelerated growth in Mexico and the U.K. and how recent workplace awards have helped attract new talent.

Answer

Chief Financial Officer Dominic Phillips attributed international success to sustained investments in go-to-market and product, leading to key customer wins and referenceability. Chief Executive Officer Sanjit Biswas stated that hiring is strong across the board, particularly in go-to-market to add capacity and in engineering to develop the product platform, while emphasizing a focus on scaling the company culture alongside headcount.

Christopher Quintero, on for Keith Weiss, asked why a large portion of the market still doesn't use telematics or video safety solutions and what areas of the business Samsara is looking to improve upon.

Answer

CFO Dominic Phillips explained that for telematics, many non-adopters are being convinced as they subscribe to Samsara's other products. For safety, adoption is newer and growing rapidly with technology shifts. CEO Sanjit Biswas added that telematics is expanding beyond traditional trucking into new industries. On improvements, both executives highlighted focusing on execution, hiring, R&D allocation, and spending more time with customers to drive long-term growth.

Chris Quintero of Morgan Stanley asked about the company's successful mid-market segment, inquiring how the go-to-market motion might evolve and whether partnerships with system integrators or other ISVs are being considered to accelerate growth.

Answer

President & COO John Rettig confirmed the strong performance and strategic importance of the mid-market segment, noting these customers have twice the TPV and user count of average SMBs. He explained that Bill will continue to leverage its existing multi-channel approach (direct, accountants, embed) while increasing resource allocation to this segment. He also highlighted ongoing investment in product capabilities, such as international features for the spend and expense solution, to better serve these larger, more complex businesses.

Chris Quintero of Morgan Stanley asked for a high-level overview of BILL's pricing and packaging strategy, especially with the addition of new capabilities like procurement.

Answer

CEO René Lacerte acknowledged a significant opportunity to adjust pricing as the platform's value increases with features like multi-entity and procurement. He pointed to the recent price increase on checks and ACH as a first step, and suggested that future time savings enabled by AI will be a major catalyst for further evolution in the company's pricing strategy.

Christopher Quintero asked for a breakdown of the factors impacting monetization, seeking to distinguish between headwinds like foreign exchange and seasonality versus improvements from new virtual card and product initiatives.

Answer

CFO John Rettig explained that Q2 monetization was slightly below expectations due to seasonal TPV trends favoring lower-monetizing check and ACH payments, as well as negative impacts from foreign exchange volatility. Rettig noted that while ad valorem volume grew, it was at a slower pace than flat-rate payment types, but he affirmed that the company's strategic initiatives are still expected to drive monetization expansion going forward.

Chris Quintero, on for Josh Baer, asked for Box's perspective on a report citing high failure rates for GenAI pilots and what lessons Box has learned in driving adoption. He also inquired about momentum and pipeline development in the federal sector following the FedRAMP High authorization.

Answer

CEO Aaron Levie suggested that AI project failures often stem from homegrown efforts, whereas Box's integrated platform de-risks adoption by handling storage, vector embeddings, model integration, and UI. He stressed Box's focus on high-ROI use cases. On the federal front, he noted that agencies are now focused on IT modernization and AI, and Box is well-positioned with its FedRAMP High approved Box AI service to capture this demand.

Chris Quintero inquired about the broader macroeconomic environment, asking if OneStream is observing the deal delays and slowdowns in ERP migrations that some peers have noted.

Answer

CFO Bill Koefoed stated that OneStream had a strong Q2 with high conversion rates and solid execution. While acknowledging general macro uncertainty, he expressed confidence in the company's ability to navigate it, citing a very strong pipeline for the second half of the year that the leadership team has reviewed extensively.

Christopher Quintero of Morgan Stanley asked for insights into the early customer feedback for the recently rolled-out ESG reporting and planning solution.

Answer

CEO Tom Shea positioned the ESG solution as a prime example of the platform's 'infinite extensibility.' He noted it addresses new statutory and compliance requirements, is fully integrated with the core platform, and can serve as an entry point for new customers. The product was recently made generally available, and the company continues to invest in it.

Christopher Quintero of Morgan Stanley requested more details on the recent changes to solution-based packaging, including the rationale and any potential impact on financial results.

Answer

Co-Founder and CEO Tom Shea clarified that the new packaging is an evolution, not a complete reset, designed to support a multi-product strategy that includes offerings like Sensible Machine Learning (SML) and Sales Performance Management (SPM). He explained the goal is to provide an efficient and understandable mechanism for customers to purchase new innovations, noting it was officially launched at the company's sales kickoff.

Christopher Quintero of CJS Securities inquired about OneStream's competitive positioning for the upcoming ERP consolidation 'super cycle,' asking how the company's value proposition resonates in both single and multi-ERP environments.

Answer

CEO Tom Shea explained that OneStream's platform acts as a flexible management layer above ERP systems, which record the physical view of a business. He stated this flexibility is critical for customers with either single or multiple ERPs, as it helps them model how they run their business and amplifies the value of their core ERP investments.

Chris Quintero of Morgan Stanley questioned the rationale for lowering the full-year revenue guidance while maintaining the cloud revenue forecast, and asked about early learnings from the e-invoicing land-and-expand motion.

Answer

CFO John Schwab explained the guidance reduction was primarily driven by lower-than-expected revenue from customer entitlements and true-ups, a trend observed late in Q2. President and CEO David DeStefano added that the e-invoicing strategy is proving successful, with customers valuing the end-to-end platform and expanding country coverage, confirming a classic land-and-expand model.

Christopher Quintero inquired why Vertex is not seeing an impact from macro volatility and asked about the applicability of the newly-invested Kintsugi AI technology to Vertex's business.

Answer

CEO David DeStefano stated that the business remains resilient due to its alignment with SAP's cloud migration activity, the rising strategic priority of tax compliance, and a diverse set of customer wins. Regarding Kintsugi, he explained its technology is applicable both commercially, for addressing low-end customer churn and serving smaller marketplace sellers, and through an IP sharing agreement to enhance Vertex's own AI roadmap.

Christopher Quintero inquired about the drivers behind the 2024 gross margin expansion, the outlook for 2025 margins, and the expected growth trajectory for services revenue.

Answer

CFO John Schwab attributed the gross margin improvement to business leverage but cautioned that recent results were boosted by high-margin revenue true-ups and should not be extrapolated. CEO David DeStefano added that services revenue is expected to be 'pretty flat' in 2025, aligning with the strategy to prioritize durable ARR growth by enabling alliance partners.

Christopher Quintero inquired about the timing of Vertex's involvement in large ERP transformation projects and asked about the initial use cases and ROI for the new AI-powered copilot and smart categorization offerings.

Answer

CEO David DeStefano explained that Vertex is typically brought into ERP projects a few quarters after they begin but well before go-live. He highlighted 'smart categorization' as a key AI use case, offering a compelling ROI by helping clients map products to tax categories and minimize audit risk. He also noted the importance of using customers as design partners to build trust in the AI solutions.

Chris Quintero of Morgan Stanley inquired about the drivers behind the strong large deal momentum, asking for a breakdown between slipped deals and new ones, and also questioned the impact of the new unlimited user pricing model on license proliferation and net retention.

Answer

Co-CEO Owen Ryan attributed the large deal success to a pipeline that began building nine to twelve months prior, driven by higher-level platform conversations and a strong partner network. CFO Patrick Villanova noted that while it's still early for the new pricing model, they are monitoring its effect on license proliferation beyond traditional finance departments, which is expected to drive future consumption.

Christopher Quintero followed up on the new pricing model, asking if the unlimited user structure is helping improve competitive win rates, particularly in rip-and-replace scenarios.

Answer

Co-CEO Owen Ryan stated that while the new model can help in closing deals, the primary value proposition remains the platform's quality, breadth, and reliability. CFO Patrick Villanova added that the pricing model is a competitive advantage, but it is a derivative of the superior value BlackLine delivers compared to competitors.

Christopher Quintero of Morgan Stanley inquired about BlackLine's execution versus expectations amid lower deal velocity and asked for guidance on gross margin linearity for fiscal year 2025.

Answer

Co-CEO Owen Ryan stated he was generally pleased with Q4 execution, attributing deal slowdowns to customer timing decisions rather than BlackLine's performance, noting some deals closed in January. CFO Mark Partin added that gross margins should see slight expansion but remain fairly consistent, with some drag from FedRAMP investments offset by the future decommissioning of older service centers.

Christopher Quintero asked about the pipeline for the SAP business heading into 2025 and how BlackLine's competitive positioning has evolved over the past year.

Answer

Co-CEO Owen Ryan described the SAP partnership as having "untapped potential" and noted that alignment with SAP's leadership has never been stronger, particularly around the cloud, the Office of the CFO, and AI. Competitively, Ryan expressed high confidence, citing "remarkable" takeaways from a larger traditional competitor. He also outlined a strategy to win customers from smaller competitors once those customers mature and require BlackLine's scale and capabilities.

Christopher Quintero inquired about the expected linearity of fiscal year 2026 subscription revenue, the drivers behind the improved outlook for Professional Services (PS), and specifics on the planned investments in the commercial and product development organizations.

Answer

CFO Marje Armstrong explained that subscription revenue growth should improve throughout FY26, similar to the pattern in FY25, though the guidance remains conservative. She noted the PS business has stabilized with strong bookings, offering upside potential. CEO Andrew Appel detailed investment areas, including a client-specific data platform for AI, next-generation real-time planning, faster implementation speeds, enhanced logistics management, and AI-driven tools for global trade automation.

Christopher Quintero asked about the drivers behind the year-over-year increases in subscription billings and deferred revenue, and requested a ranking of the company's key growth initiatives.

Answer

CFO Marje Armstrong attributed the growth in billings and deferred revenue primarily to the timing of large deal renewals, noting it would likely normalize in Q4. CCO Greg Randolph and CEO Andrew Appel added that the cross-sell motion and new logo acquisition are showing significant near-term momentum, while progress with system integrator (SI) partnerships is building a strong foundation for future growth.

Christopher Quintero asked for more detail on large deal delays, questioning if the situation worsened from Q1 or if an expected improvement failed to materialize. He also inquired about the impact of the SAP upgrade cycle on E2open's customer base and sales pipeline.

Answer

Chief Commercial Officer Greg Randolph explained that large, strategic deals are facing longer review cycles at the highest client levels. Chief Financial Officer Marje Armstrong added that while Q2 bookings and churn improved sequentially and year-over-year, the pace of improvement was slower than anticipated. Regarding SAP, Greg Randolph confirmed they are seeing increased demand and opportunities as clients re-evaluate their software portfolios during upgrades, noting two Q2 logistics wins originated from this trend. CEO Andrew Appel added that while SAP upgrades can create opportunities, they also consume client resources, which can delay other projects.

Asked for more detail on the AI feature adoption assumptions baked into the fiscal year 2024 guidance and inquired about the impact of the partner strategy on sales cycles and the timing of its contributions.

Answer

The FY24 guidance assumes the new AI features, which are included in current subscriptions, will drive adoption among existing customers, spur uptake of add-on services, and accelerate new customer acquisition. The partner strategy is viewed as accretive and runs parallel to direct sales efforts, not lengthening sales cycles, with a growing pipeline expected to yield results in 2024.