Eric Wald

Eric Wald of Texas Capital Securities inquired about the purchasing patterns of Gloo's 20+ million-dollar annual contract value (ACV) customers, specifically whether they are multi-product/service or large-scale single offerings. He also asked about the factors influencing the speed of deal-to-revenue conversion and the expected pace of synergy realization from recent acquisitions, and their impact on Adjusted EBITDA.

Answer

CEO Scott Beck and Head of Technology Pat Gelsinger explained that $1M+ ACV customers are primarily buying Gloo 360, Masterworks for donor development, and Midwestern for next-generation technology, often as multi-product engagements. Pat Gelsinger noted an acceleration in deal closure due to established proof points in various categories (e.g., Bible translation, campus ministries). Both executives confirmed that synergy realization, encompassing both cost and revenue benefits from acquisitions like Westfall Gold, Midwestern, and Masterworks, is a significant factor for achieving profitability in the upcoming year, with efforts already underway and accelerating. Scott Beck also emphasized discipline and strategy in M&A, focusing on accretive opportunities that support the Q4 EBITDA profitability goal. He clarified that the $20 million revenue expected from Westfall in 2026 does not include significant synergy assumptions, but overall past acquisitions have shown good growth.