Connor Passarella

Connor Passarella asked about the impact of the Microsoft partnership on deal cycles in a risk-off environment and the potential tailwind from M&A activity in financial services for tech enablement.

Answer

Chairman and CEO John Hall confirmed that the Microsoft partnership, particularly Azure Marketplace agreements, shortens sales cycles for enterprise firms and drives growth. He also noted that increased M&A and private equity investments in the accounting industry are fueling demand for modernized, AI-forward technology infrastructure.

Connor Passarella asked how Intapp's strategic partnership with Microsoft, including Azure Marketplace execution, helps de-risk deal cycles or shorten time to close, especially in a risk-off environment. He also inquired if potential M&A activity in financial services creates a tailwind for tech enablement.

Answer

CEO John Hall confirmed that the Microsoft partnership, particularly through Azure Marketplace agreements, shortens sales cycles for larger enterprise deals, aids new logo acquisition, and facilitates cloud migrations. He also affirmed that increased M&A activity and private equity investments in the accounting industry are driving demand for modernizing technology infrastructure with an AI-forward approach.

Connor Passarella asked about Banking Advisor, specifically regarding the focus on customer adoption in the early days, and what internal KPIs or metrics nCino is using to evaluate the product's success so far within the customer base.

Answer

Sean Desmond, nCino's Chief Executive Officer, stated that the primary focus is on the efficiencies banks gain, such as a 90% reduction in time for portfolio risk assessment or 20-30% average productivity gains. He emphasized that these outcomes drive Intelligence Unit consumption. Forward-deployed engineers will use Operations Analytics to establish baselines and track improvements over time, expecting this to lead to increased Intelligence Unit adoption.

Connor Passarella from Truist Securities asked about nCino's internal KPIs and metrics for evaluating the success of the Banking Advisor product, given the company's early focus on customer adoption. He specifically inquired about the types of efficiencies banks are gaining from the product.

Answer

CEO Sean Desmond stated that the primary focus is on the efficiencies banks gain, such as a 90% reduction in time for portfolio risk assessment questions or 20-30% average productivity gains and cost reductions in real-time monitoring. He explained that these outcomes drive Intelligence Unit consumption. nCino's forward-deployed engineers will use Operations Analytics to baseline customer performance and track improvements over time, expecting a spike in Intelligence Unit adoption next year and beyond.

Connor Passarella inquired about Riskified's growth outlook exiting 2025, specifically the balance between expanding with existing merchants through upsell/cross-sell and driving new business strength. He also asked about emerging verticals for 2026 beyond money transfer and payments, and how Riskified prioritizes resources for vertical expansion.

Answer

Eido Gal, Co-founder and CEO, stated that Riskified expects continuous strong performance from both new client acquisition and upsells to existing merchants, consistent with prior years. He explained that vertical expansion involves targeting large markets where Riskified's evolving product suite (Policy Protect, Secure, CBMS) is a good fit, considering geographic penetration and distribution strategies like partnerships and potential mid-market focus.

Connor Passarella inquired about Riskified's growth outlook exiting 2025, specifically the balance between expanding with existing merchants through upsell/cross-sell and driving new business strength. He also asked about emerging verticals for 2026 beyond money transfer and payments, and how Riskified prioritizes resources for vertical expansion.

Answer

CEO Eido Gal stated that Riskified anticipates continuous strong performance from both expanding with existing clients and acquiring new ones, consistent with prior years. He explained that market expansion involves concentrated efforts on large, product-fitting verticals, a geographic view, and considerations for distribution, including potential mid-market penetration and partnerships.

Connor Passarella inquired about management's confidence in accelerating growth into 2026, given the strong pipeline, product roadmap, and multiyear contracts. He also asked about the timeline for gross margins on new, large logos to normalize.

Answer

CEO Eido Gal expressed strong confidence, attributing the growing pipeline to Riskified's expanding platform value, successful global go-to-market strategy, and merchants' need to combat sophisticated fraud. Regarding margins, Gal reiterated the full-year guidance of 52% to 53.5% and advised analyzing them annually, acknowledging that recent large wins in new categories temporarily impacted Q1 margins but represent a strong long-term opportunity.

Connor Passarella, on for Terry Tillman, inquired about early indications for the holiday shopping season's strength and its potential impact on growth. He also asked for details on where the company is focusing its investments to achieve the highest ROI, given its operating expense discipline.

Answer

CFO Aglika Dotcheva stated that based on internal data and industry reports, Riskified expects a "healthy" but not "extraordinarily strong" holiday season. CEO Eido Gal explained that high-ROI investments are focused on expanding the product platform based on demand and on lead generation for sales and marketing, particularly in newer, non-discretionary verticals. He also highlighted a broader focus on increasing internal productivity and throughput using AI and automation.

Connor Passarella from Truist Securities asked about the key execution milestones for fiscal year 2026 that Paylocity views as the highest confidence drivers towards achieving its updated $3 billion long-term revenue target, including cross-penetration of Paylocity for Finance, attach rates of new modules, or partner productivity. He also inquired about the pricing strategy for Paylocity for Finance, specifically whether it's bundled or standalone, and early insights into client willingness to pay.

Answer

Steve Beauchamp, Executive Chairman, emphasized the large HCM total addressable market with low penetration, augmented by expansion into finance and IT. Ryan Glenn, Chief Financial Officer, added that drivers include consistent unit growth and increased average revenue per user (ARPU). Toby Williams, President and CEO, stated that Paylocity for Finance is primarily priced on a bundled basis, consistent with their overall strategy, though Steve Beauchamp noted flexibility for a per-user model. Mr. Williams confirmed a strong willingness to pay from early adopters due to perceived value.

Connor Passarella inquired about the key execution milestones for fiscal 2026, such as cross-penetration of Paylocity for Finance, attach rates, or partner productivity, that are expected to drive the updated $3 billion long-term revenue target. He also asked about the pricing strategy for Paylocity for Finance and client willingness to pay.

Answer

Executive Chairman Steve Beauchamp and President and CEO Toby Williams emphasized the large total addressable market (TAM), low HCM penetration, and expansion into CFO/IT offices as key drivers. They highlighted continued unit growth and increasing average revenue per client (ARPU). Mr. Williams and Mr. Beauchamp noted a bundled pricing approach, with flexibility for per-user models, and strong client willingness to pay based on the value delivered.

Connor Passarella inquired about the significance of the Chipotle pilot for the Catering+ module and top-tier brands, asking which other modules were included. He also requested more detail on the one-time gross margin benefit related to Olo Pay.

Answer

Founder and CEO Noah Glass explained that the Chipotle deal validates the Catering+ strategy for landing large brands and is a multi-module pilot that can include add-ons like Olo Pay, Dispatch, and Rails. CFO Peter Benevides clarified the ~$1 million one-time gross profit benefit was due to a new processor agreement and favorable card mix, noting the mix benefit is not factored into future guidance.

Connor Passarella inquired about the implementation timeline for the new FreedomPay partnership, its expected impact on the 2025 Card-Present guidance, and Olo's strategies for increasing multi-product adoption among its enterprise customers.

Answer

Noah Glass, Founder and CEO, stated that the FreedomPay integration for Olo Pay Card-Present will be generally available by mid-year 2025. He emphasized this partnership significantly expands the addressable market to over $160 billion in GPV. Regarding product adoption, Glass explained that it is growing organically across all customer segments, highlighting the 'flywheel' effect where Order and Pay data feed the Engage suite to drive profitable traffic, which in turn encourages adoption of more modules.

Connor Passarella inquired about the future growth trajectory for Olo Pay, particularly with the introduction of card-present capabilities, and asked about the go-to-market strategy following the departure of the Chief Revenue Officer.

Answer

Founder and CEO Noah Glass detailed Olo Pay's rapid growth, projecting $2.5 billion in gross processing volume for the year and highlighting the massive addressable market expansion with card-present functionality. He announced five card-present pilots launching in Q4. Regarding the leadership change, Glass explained he will temporarily oversee the sales organization, focusing the search for a new sales leader on driving bookings. He also noted that COO Jo Lambert will absorb other commercial functions to better align product innovation with commercialization.

Connor Passarella, on behalf of Terry Tillman at Truist Securities, asked about the adoption stage for restaurants leveraging guest data via platforms like Olo's GDP and inquired about the outlook for cash flow in the second half of the year.

Answer

CEO Noah Glass stated the industry is in the "super early innings" of using data to drive profitable traffic, a critical need for restaurants. He emphasized that case studies like Five Guys are proving the value. CFO Peter Benavides explained that Q2's strong free cash flow included timing benefits and that for the full year, free cash flow tends to align closely with non-GAAP operating income.

Connor Passarella, on for Terry Tillman, asked about any observed changes in the competitive landscape, win rates, and deal cycles, particularly in relation to customer consolidations.

Answer

CEO Greg Brown stated that there have been no material changes in the competitive landscape. He noted that Udemy's win rates have improved, attributing the success to better execution of their focused go-to-market strategy in key enterprise verticals rather than a shift in the competitive environment.

Asked about the international go-to-market strategy for 2024 and the timeline for broader adoption of strategies for nontraditional learners among higher education institutions.

Answer

The international strategy involves strengthening both direct sales in established markets and focusing on deeper channel partnerships in emerging markets, which may impact short-term services revenue. Regarding nontraditional learners, the market is moving from early adopters to the 'early majority,' with conversations becoming widespread, suggesting it will be a significant growth driver in the coming years.