Daniel Ives

Dan Ives asked how the increasing deployment of AI is changing customer conversations over the past three to nine months and how CrowdStrike's position in the market is evolving in response.

Answer

CEO George Kurtz highlighted that CrowdStrike has moved beyond chatbots with Charlotte AI and AgentWorks, which are deeply embedded into the platform to perform actual work and orchestration. He noted that this differentiates CrowdStrike from competitors still focused on chatbots, with Charlotte AI becoming a key component of SOC success and positioning CrowdStrike as the operating system for the SOC.

Dan Ives asked how the increasing deployment of AI is changing customer conversations and CrowdStrike's strategic positioning in this evolving landscape.

Answer

CEO George Kurtz stated that CrowdStrike has moved beyond chatbots with Charlotte AI and its deeply embedded agents, enabling customers to create their own security agents. He noted that this orchestration differentiates CrowdStrike, delivering results in minutes for tasks that previously took days.

Dan Ives from Wedbush Securities inquired about the accelerated sales cycles Palantir is experiencing, particularly what surprises management about customer behavior from initial contact to deal closure after attending boot camps.

Answer

Chief Revenue Officer Ryan Taylor highlighted the significant increase in U.S. commercial TCV and the shift to C-suite-driven, enterprise-wide deployments. CEO Alex Karp added that customers now seek "private equity-like transformations" in months, with higher expectations for Palantir to integrate product, FDEs, and tribal knowledge. CTO Shyam Sankar noted AIFDE's role in boosting FDE productivity, enabling faster customer adoption.

Dan Ives from Wedbush Securities inquired about the accelerated sales cycles Palantir is experiencing, specifically asking what surprises the company has observed from initial customer contact through to deal launch, and for any anecdotal insights.

Answer

Ryan Taylor, Chief Revenue Officer and Chief Legal Officer, highlighted a 6x year-over-year increase in U.S. commercial TCV bookings on a dollar-weighted duration basis, noting that C-suite-driven customers are now seeking enterprise-wide AIP deployments. CEO Alex Karp added that new clients have significantly higher expectations, aiming for business transformation within months, and expect Palantir to guide them on implementing AI, Foundry, Ontology, and FDE models with their tribal knowledge. He also mentioned similar shifts in the U.S. government and international sectors.

Daniel Ives from Wedbush Securities questioned Palantir's strategy regarding its sales force, noting the company's significant growth achieved without a traditional direct sales team and asking about future plans for sales organization expansion.

Answer

CEO Alex Karp explained that Palantir intentionally rejected the traditional software sales model, instead relying on customer advocacy and word-of-mouth as its primary sales engine. He noted this approach builds immense credibility, allowing for larger initial deployments. Chief Revenue Officer Ryan Taylor added that this strategy results in customers proactively seeking enterprise-wide rollouts from the start.

Daniel Ives asked if Palantir could gain a larger share of government budgets, particularly from the Department of Defense, as agencies move towards a more merit-based procurement system.

Answer

CEO Alexander Karp responded affirmatively, stating that Palantir excels in environments that are under pressure and value meritocracy. He explained that pressure forces institutions to select products that demonstrably work, which benefits Palantir's battle-tested software stack (AIP, Foundry, Ontology). Karp emphasized that Palantir's 'warrior culture' is built to deliver in crucial situations, and this merit-based approach leads to better ethics and execution, which is why the company is seeing strong demand.

Daniel Ives of Wedbush Securities inquired about the rapid pace of AI sales cycles, asking if management was surprised by how quickly customers are moving from initial contact to deployment.

Answer

Chief Revenue Officer Ryan Taylor stated he was not surprised, citing the tangible energy and immediate, quantifiable impact customers experience. CEO Alexander Karp added that the real surprise is the starkly different adoption rates between pragmatic U.S. companies and more process-bound European firms, noting that the power of the results is now breaking down previous institutional barriers.

Daniel Ives of Wedbush Securities asked about the rapid conversion of 'boot camp' participants into major deals, questioning if the speed has surprised management and what it signifies about Palantir's process and market position in the AI revolution.

Answer

Chief Revenue Officer Ryan Taylor confirmed the trend, citing the 54% year-over-year growth in U.S. commercial revenue and examples of customers signing seven-figure deals within two months of a boot camp. CEO Alex Karp added that the expansion is viral, with employees bringing Palantir to new companies, and noted that AI also allows Palantir to scale its own internal operations more effectively.

Daniel Ives questioned the expected delivery ramp-up in Indonesia and the U.S. for 2025, asking if it would be concentrated in the first or second half of the year. He also asked for a comparison of management's visibility on deliveries and growth in Vietnam for 2025 versus 2024.

Answer

An executive stated that while Vietnam will remain a significant contributor in 2025, the company will continue to expand in international markets like Indonesia, the Philippines, India, North America, and the Middle East, while balancing growth and profitability. Regarding Vietnam, management expressed high confidence for 2025, citing strong momentum from becoming the market leader in late 2024 and the full-year availability of its entire model lineup, targeting a potential 50% market share.

Daniel Ives asked about the evolution of partner relationships, particularly with hyperscalers like AWS and Google Cloud, in light of Pega GenAI Blueprint and the company's cloud-focused strategy.

Answer

CEO Alan Trefler noted significant enthusiasm from partners, highlighting that over a dozen have created more than 70 private Blueprints for their own use. CFO Kenneth Stillwell added that engagement with AWS and Google Cloud is accelerating, viewing them as strategic go-to-market partners for targeting both new workloads and the existing $750 million of on-premise ACV. Trefler also mentioned that hyperscalers are very interested in Pega's ability to help clients replace legacy applications, which facilitates cloud adoption.

A representative for Dan Ives asked about the strategic initiatives in place to sustain or accelerate growth through the rest of the year and into fiscal 2026.

Answer

CEO Bipul Sinha stated that while the company is approaching the $1 billion ARR milestone, his focus is already on the path to $3 billion and beyond. The core strategy involves continuing to build a diverse product portfolio and maintaining a clear strategic vision to ensure high-speed growth and scale, avoiding the growth deceleration seen at other software vendors.

Dan Ives of Invest Capital inquired about several non-operational strategic opportunities, including the status of a previously discussed reverse stock split, a potential spin-off of the company's divisions, and the viability of a Dutch tender offer to enhance liquidity and offset share dilution. He also questioned the planned use of projected cash flow for debt reduction versus acquisitions, whether the current fiscal year represented a 'high watermark' for performance, and if M&A opportunities existed on the casino side of the business.

Answer

President and CEO Clark Stewart explained that a reverse stock split is currently shelved and that management believes keeping the two business segments together is prudent in the current economic climate. He expressed interest in the suggestion of a Dutch tender offer. Stewart confirmed that future cash flow would be directed towards debt reduction and significant required capital investments in the casino business, including a hotel. Craig Stewart, President of the Aerospace Group, stated that he does not view the year as a high watermark, seeing more room for organic growth in both the Aerospace and Casino segments. He also confirmed that while no active discussions are underway, acquiring other casinos is an opportunity the company is monitoring.