Cole

Cole, on behalf of Derrick Wood, asked about the drivers behind the strong large customer additions, specifically distinguishing between cross-sell and net new lands for these larger accounts.

Answer

Co-CEO Chano Fernandez clarified that most large customer additions are net new lands, driven by improved pipeline qualification, tighter execution across sales, product, and engineering teams, and strategic partnerships like Accenture. He noted this growth is multi-vertical and international, building Klaviyo's enterprise brand.

Cole, on behalf of Derrick Wood from TD Cowen, asked about the strength in large customer adds, specifically differentiating between cross-sell and new customer lands.

Answer

Co-CEO Chano Fernandez clarified that most large customer adds are net new lands, which then expand over time. He attributed this strength to improved practices in pipeline qualification, tighter cadences with sales, product, and engineering teams, and the complexity of sales cycles for larger customers. He also highlighted the growing number of marquee international and multi-vertical brands trusting Klaviyo, expecting a flywheel effect as Klaviyo builds its enterprise brand with investments in compliance, governance, and data centers.

Cole asked about the components embedded in the guidance for the next year, specifically regarding customer growth, seat growth, cross-sell versus upsell, and how the potential for agentic offerings to increase productivity aligns with seat growth assumptions.

Answer

Eliran Glazer, CFO, stated that the guidance incorporates upmarket and enterprise customer expansion, continued multi-product adoption, disciplined investment, and improved efficiency in the go-to-market model. He reiterated that NDR is expected to remain flat at 110% and that the company is not anticipating a significant increase in customer numbers, instead focusing on extracting more revenue from existing customers, leading to growing ACV and larger customers replacing smaller ones. He also mentioned the negative FX impact on margins.

Cole from Jefferies inquired about ArcelorMittal's medium-term CapEx profile for 2025-2027, seeking broad guidance on buckets. He also asked about the working capital outlook for 2026, hoping for outflows with a stronger pricing and demand environment, and how order books were developing for the start of 2026.

Answer

Genuino Christino (CFO) advised using a CapEx range of $4.5 billion to $5 billion (including strategic, sustaining, and maintenance) as a current reference. Regarding working capital, he expressed hope for deployment in 2026, indicating a strong business, and suggested it would move in line with EBITDA. Mr. Christino noted that order books remain relatively stable across the group, with demand moving sideways, and no special actions are being taken to anticipate a stronger 2026 beyond ensuring the business has necessary working capital.

Cole (on behalf of Surinder Thind) from Jefferies asked about the impact of transactional revenues and inorganic disposals on Clarivate's results and guidance, specifically seeking an update on the timeline expectations for the remaining headwind from disposals in the upcoming year.

Answer

Jonathan Collins, EVP and CFO, explained that the improved top-line outlook (up $50 million) was primarily due to disposals attriting slower than expected, including large Q3 transactions. He clarified that of the $200 million in disposals, approximately $90 million would occur this year, with a little over $100 million expected next year. He also noted that a weaker U.S. dollar and higher recurring organic growth contributed to the raised full-year guidance.