Clarke Jeffries • Piper Sandler & Co.

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CEO Idogal reported a 100% success rate on renewals, attributing it to delivering unmatched value for merchants. Regarding the large upsell, he explained the merchant first saw success with Riskified automating a small segment of its manual review queue. The full upsell was driven by higher approval rates, cost savings, and the deployment of Policy Protect to block fraudulent brokers, which was a key consideration for the merchant.

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Eido Gal, CEO, clarified that Adaptive Checkout is a new functionality within the core Chargeback Guarantee product, available to all clients. Both Eido Gal and CFO Aglika Dotcheva explained that while Q4 will see accelerated growth, a revenue recognition nuance will make reported revenue growth appear lower than billings growth, and that adjusting for this shows a double-digit exit growth rate for 2025.

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Chief Revenue Officer Robert Dahdah and President and CEO Neil Barua responded. Mr. Dahdah explained it's a balance between optimizing productivity and adding headcount, but noted there is an opportunity for growth next year and he has support to add reps responsibly. Mr. Barua added that the go-to-market transformation was designed to fund more customer-facing technical and sales specialists to drive growth.

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SVP & CFO John Wall confirmed the $140 million is a one-time cash tax benefit for fiscal 2025 due to the restoration of immediate R&D expensing. He stated unequivocally that this does not change the company's R&D investment strategy or appetite. The benefit is already factored into the annual cash flow guidance, and the non-GAAP tax rate remains 16.5%.

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CFO John Wall confirmed the IP business has strong momentum that should continue into Q4, noting that some milestones from a large multi-year contract were recognized in Q3 with more to come. CEO Anirudh Devgan added that the IP business is in its strongest position ever. Wall attributed the strong margin performance to the business's natural scalability, where revenue growth flows efficiently to profit.

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CEO Mike Cannon-Brookes described the phase as 'extremely early days,' with enterprises experimenting but remaining cautious about their data and focused on ROI. He noted a gap between AI awareness and usage. He believes Atlassian's approach with Rovo—embedding it in subscriptions and designing agents to collaborate like human colleagues—resonates well and helps bridge this gap by reducing friction and building familiarity.

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Peter Benevides, CFO, explained that Olo Pay's margin improves with scale in Card-Not-Present transactions and will be further boosted by the introduction of higher-margin Card-Present transactions. Regarding location growth, Benevides clarified that the 5,000 net new location forecast is a prudent guidance philosophy, similar to the initial 2024 target which was ultimately exceeded, rather than a reflection of a slowing pipeline.

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CEO H. Moore acknowledged the strong performance but stated he is not ready to raise the 2030 targets, preferring to focus on execution. CFO Brian Miller attributed the outperformance to a combination of factors, including better-than-expected operating margins, effective working capital management, and some cash flow being pulled forward. He said this progress increases their confidence in achieving the long-term goals.

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CFO Brian Miller suggested the timing was 'more circumstantial' than seasonal. He explained that the sequential growth pattern is likely driven by the variable timing of go-lives for larger, more complex customer projects rather than a specific Q3 characteristic. He contrasted this with the schools market, which does exhibit clear seasonality tied to the academic calendar.

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CEO Avishai Abrahami responded that the primary way to monetize AI during the build phase is by improving conversion—making it easier for users to create a site they are happy with, which leads to more paid subscriptions. CFO Lior Shemesh explained that future margin expansion will come from leveraging the existing cost structure, as top-line growth is expected to outpace expense growth. He noted this leverage would be particularly high in the Partners segment.

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CEO Eric Remer stated the new structure provides benefits 'all of the above,' including dedicated marketing and R&D resources within the EverPro vertical, allowing for better resource allocation and focus. President Matt Feierstein explained that NRR was previously in the 99-100% range (ex-Marketing Tech) and the drop to 96% is due to anniversarying a large, non-recurring pricing action. He noted the metric is starting to rise again as the LTM impact wanes.

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Executive Chair Greg Bentley stated that while Cesium's ARR contribution was not financially material in magnitude, it is strategically meaningful. CFO Werner Andre added that the underlying performance was strong, with organic ARR growth of 11.5% (12% ex-China), which was at least in line with the prior year's performance, indicating strength in the core contract base.

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Executive Phil Sawarynski stated that with the mobility divestiture, the remaining Transportation businesses are performing well, and he expects continued growth and margin expansion going forward. Executive Robert Painter explained that while all AECO components are balanced and sizable, the architecture and design business (SketchUp) has been the fastest-growing part of the portfolio, a trend he expects to continue.

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Executive Phil Sawarynski stated that following the mobility divestiture, the remaining T&L businesses are expected to continue delivering growth and margin expansion. Executive Robert Painter detailed that while all AECO components are balanced and above $200M in ARR, the architecture and design business has been the fastest-growing part of the portfolio.

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CEO Aman Bhutani confirmed that internally developed products like Websites + Marketing are the primary high-margin drivers. Regarding WordPress, he affirmed GoDaddy's commitment and position as a top contributor to the community, stating their focus is on building value-add layers like their upcoming 'conversational WordPress' feature to make the platform's power more accessible to all users.

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CFO Joel Wilhite explained the $4 million increase in float revenue guidance (to $49 million) was driven by two main factors. First, the company reduced its assumption for interest rate cuts in the back half of the year. Second, they have observed marginally higher customer fund balances throughout the year and have projected that trend to continue, noting it's not due to underlying operational changes.

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