DJ Hynes

DJ Hynes from Canaccord asked about potential competition from foundational model companies and LLMs in the legal tech space, specifically if they are appearing in DISCO's customer base, and also sought the new CFO's initial impressions on the visibility provided by DISCO's usage-based model and its impact on guidance philosophy.

Answer

CEO Eric Friedrichsen stated no customers are using general AI for e-discovery, emphasizing DISCO's AI-native, integrated platform for litigation and defensibility of sensitive data, positioning DISCO as 'AI for litigators.' CFO Aaron Barfoot noted that predictability in usage models increases with scale, but services and Auto Review still introduce some variability, justifying the use of revenue guidance ranges.

DJ Hynes asked about the competitive landscape, specifically the impact of foundational model companies (LLMs) on DISCO's customers and the legal tech market, identifying which areas of the tech stack are most vulnerable or resilient to disruption. He also questioned CFO Aaron Barfoot on his initial impressions of the usage-based model's visibility and how it influences DISCO's guidance philosophy.

Answer

CEO Eric Friedrichsen stated that customers are not using general AI for e-discovery, emphasizing DISCO's AI-native, purpose-built platform for complex litigation, which requires integrated workflows, security, and defensibility. CFO Aaron Barfoot noted that while usage models gain predictability with scale, elements like services and Auto Review still introduce variability, leading to guidance provided as a range.

DJ Hynes asked about the OpenAI partnership, specifically how the relationship might evolve over multiple years and what aspects of the opportunity are most exciting to management.

Answer

David Steinberg, Co-founder, Chairman, and CEO, described OpenAI as an unbelievable organization and foundational to Athena, emphasizing that the partnership is different from other LLM providers. He also addressed Disqus, stating that the emergence of AI answer engines has not impacted its ability to collect data, as publishers are more eager for traffic, which Zeta helps drive.

DJ Hynes asked about the OpenAI partnership, specifically how the relationship might evolve over multiple years and what aspects excite Zeta Global most. He also questioned whether the emergence of AI answer engines impacts Disqus's ability to collect data or intent signals, or if there's been a change in comment volume or authenticated site visits.

Answer

David Steinberg, Co-founder, Chairman, and CEO, described OpenAI as a foundational partner for Athena, similar to AWS or Snowflake, and highlighted the organizational partnership's potential for mutual business benefits. He emphasized that LLMs are components, not disintermediators, driving efficiency and accelerated revenue. Regarding Disqus, David stated no negative impact has been observed; instead, Zeta is helping publishers drive incremental traffic and monetization, especially as Google answers more queries directly. Disqus is one of 20 platforms generating real-time signals, and no fall-off has been seen.

Luke on for DJ Hynes inquired about the key operational 'dials' management is adjusting to drive performance and asked for Zeta's perspective on Amazon's advertising business as a partner or competitor.

Answer

CFO Chris Greiner highlighted improved sales productivity and a higher direct revenue mix (75%) as key dials driving strong margin performance and efficiency. CEO David Steinberg added that they partner with Amazon in numerous ways, particularly in Connected TV, and view them as an expanding channel and partner, not a competitor.

DJ Hynes from Canaccord asked CFO Bryan Lee if the AI revenue growth acceleration is due to the lag between strong AI bookings and P&L recognition, implying continued acceleration. He then asked Chairman Mike Burkland and President Andy Dignan about the Google partnership, its implications, and how Five9 and Gemini integrate.

Answer

CFO Bryan Lee confirmed that AI revenue acceleration is indeed a function of strong bookings converting from backlog, and while there will be ebbs and flows, continued booking momentum should drive further acceleration. Chairman Mike Burkland described the Google partnership as significant, born from mutual market success. President Andy Dignan added that it's a joint solution with engineers from both companies building it, leveraging Google's Gemini models for Five9's AI products and driving pipeline.

DJ Hynes asked if the acceleration in AI revenue growth is primarily due to the lag between bookings and P&L recognition, suggesting continued acceleration given strong AI bookings. He also requested more details on the Google partnership, including Google's utilization of Five9, Gemini's role, and the overall integration.

Answer

CFO Bryan Lee confirmed that AI revenue acceleration is indeed a function of the bookings lag and anticipates continued acceleration if bookings momentum persists, contributing to second-half 2026 growth alongside core CCaaS. Chairman Mike Burkland described the Google partnership as significant and market-driven. President Andy Dignan added that it's a joint solution with engineers from both companies collaborating, leveraging Google's Gemini foundational models for Five9's AI products, and actively filling the pipeline.

DJ Hynes asked Travis Hess to compare Shopify's agentic plan with Feedonomics, particularly regarding its use for non-Shopify customers, and to explain BigCommerce and Feedonomics' competitive advantages.

Answer

CEO Travis Hess acknowledged some overlap but highlighted that Feedonomics primarily serves enterprise clients, including those on Shopify, due to its superior data enrichment and orchestration capabilities, which are agnostic to the underlying platform. He emphasized Feedonomics' focus on bespoke data enrichment for various surfaces and inventory availability, ensuring seamless integration with back-office systems, crucial for large brands.

DJ Hynes asked about core Enterprise ARR growth excluding the customer upgrade program, sought clarification on future metric disclosures, and questioned how Feedonomics competes with Shopify's Agentic plan.

Answer

Daniel Lentz, CFO and COO, clarified that core Enterprise ARR was slightly up, and the company is pivoting to focus on overall dollarized expansion. He confirmed that total ARR, subscription ARR, GMV, and total NRR will be disclosed quarterly, while enterprise-specific metrics will be retired for better transparency. Travis Hess, CEO, explained that Feedonomics primarily serves enterprise clients with data enrichment and orchestration agnostic to the platform, differentiating it from Shopify's native platform approach, though Commerce's self-service Feedonomics (Surface) will overlap for smaller merchants.

DJ Hynes inquired about the Accenture partnership, specifically what Accenture sees in Klaviyo and how Klaviyo plans to leverage Accenture's reach, given that GSI relationships might seem at odds with Klaviyo's core model.

Answer

Co-CEO Andrew Bialecki stated that Accenture sees new service opportunities in AI-driven customer experiences, marketing, and service reinvention, viewing Klaviyo's AI solutions as a strong partner. Co-CEO Chano Fernandez added that Accenture helps solve fragmentation in legacy CRM systems, making the partnership instrumental for Klaviyo's enterprise expansion.

DJ Hynes with Canaccord Genuity inquired about the Accenture partnership, specifically what Accenture sees in Klaviyo, and how Klaviyo plans to leverage Accenture's reach, given that GSI relationships often involve services work which might seem at odds with Klaviyo's core model.

Answer

Co-CEO Andrew Bialecki explained that the AI era requires new skills and services, and Accenture sees Klaviyo as a partner for marketing and service reinvention, particularly in designing sub-agents and tuning experiences. Co-CEO Chano Fernandez added that Accenture views Klaviyo as a strong AI solution to address fragmentation in CRM legacy systems, especially as Klaviyo moves further into the enterprise market, and expects more to share on this partnership in the coming months.

DJ Hynes asked about the average ratio of technicians to back-office staff across ServiceTitan's customer base, its potential evolution, and the efficiency unlock for ServiceTitan. He also questioned the Q4 guidance being sequentially down compared to last year's flat/up guidance, asking if it indicates increased caution.

Answer

CEO Ara Mahdessian noted that the technician-to-back-office ratio varies by trade and size, with automation driving increased profitability and revenue. CFO Dave Sherry clarified that the strong Q3 allowed for a raised full-year forecast, and typical GTV and usage moderation from Q3 to Q4, along with one fewer business day, explains the sequential Q4 guidance, with no unusual caution.

DJ Hynes asked about the implications of the ticking down CAC Payback period and outperforming incremental margin targets on ServiceTitan's sales and marketing investment strategy.

Answer

CFO Dave Sherry confirmed strong performance, particularly in usage revenue, and stated that ServiceTitan continues to deploy capital towards a 25% incremental margin target, primarily investing in R&D. He noted they are behind in hiring but expect to catch up, with Q3 seeing a step-up in sales and marketing due to user conferences.

DJ Hynes asked about the owner segment as a signal for end market demand and the implications of net new ARR growth notably faster than revenue growth for future acceleration.

Answer

Tooey Courtemanche, Founder, CEO, and President, Procore Technologies, stated that the macro environment remains consistent with prior quarters, still facing headwinds, but owners are a good indicator for project initiation. He noted that while a tailwind is expected, it takes time to impact revenue. Matt Puljiz, Senior Vice President of Finance, Procore Technologies, reiterated confidence in Procore's strong performance and base case growth, indicating high optimism.

DJ Hynes (Canaccord) inquired about the potential turning point in end market demand, particularly focusing on the owner segment, and later asked about the implications of net new ARR growth outpacing revenue growth.

Answer

Tooey Courtemanche, Founder, CEO, and President, noted that the macro environment remains consistent with previous quarters, with no significant change in headwinds, but expects the owner segment to eventually signal a tailwind. Matt Puljiz, SVP of Finance, confirmed strong net new ARR growth, reinforcing confidence in the company's base case growth trajectory.