Dylan Baker

Dylan Baker from William Blair asked about the impact of cloud migrations on non-recurring revenue and AI's opportunity to accelerate modernization, including the trade-offs and long-term economics. He also inquired about the mix between capital deployments for bolt-on and platform M&A.

Answer

Jason Conley, Executive Vice President and Chief Financial Officer, explained that non-recurring revenue has been flat due to cloud migrations, which increase customer lifetime value. He noted that Deltek's AI functionality in its cloud product presents a significant opportunity. Neil Hunn, President and Chief Executive Officer, stated that bolt-ons and tuck-ins are a first-order focus for M&A, advancing organic growth and strategic direction, while platform opportunities are also interesting, with valuation being a key factor.