Ethan Widell

Ethan Widell, on behalf of Zach Cummins at B. Riley Securities, inquired about the key levers for improving retention beyond product-led initiatives and asked how the increasing rate of multi-year commitments would impact the slope of future revenue growth.

Answer

Josh Resnik, President & CEO, detailed that retention improvements stem from multiple factors. Beyond PolicyNote's strong user engagement, he cited new global data packages driving expansion revenue and significant operational changes to correct prior execution issues. Resnik highlighted that more than doubling the rate of new multi-year contracts directly translates to improved gross retention in 2026, providing stability and making new logo wins more additive to growth.

Ethan Widell, on behalf of Zach Cummins from B. Riley Securities, asked for the rationale behind the timing of the CEO leadership transition. He also inquired about the key assumptions underpinning the company's confidence in returning to growth in fiscal year 2025.

Answer

Timothy Hwang, outgoing CEO, explained that after 12 years and with the company well-positioned with record profitability, it was the right time for the transition, noting he will remain highly involved as Executive Chair. President and incoming CEO Joshua Resnik outlined the confidence in future growth, citing strong promise in international markets and the corporate segment, coupled with product experience improvements designed to boost retention and cross-selling.

Ethan Widell, on behalf of Zach Cummins, questioned if the downtick in B2 NRR was solely due to lapping price increases and asked which specific AI use cases are showing the most traction for the new Overdrive solution.

Answer

CFO Marc Suidan confirmed the B2 NRR moderation is primarily due to lapping the 2023 price increase and expects the metric to stabilize before improving as B2 growth accelerates. CEO Gleb Budman identified model building and inferencing as the two core AI use cases driving interest, citing examples like data collection for training models and applications in autonomous vehicles, robotics, and drug discovery.

Ethan Widell of B. Riley Securities inquired about the progress of the Apple partnership and its potential timeline to become a significant revenue source. He also asked for feedback on the 'Max Conversions' tool and the types of advertisers adopting it.

Answer

CEO Adam Singolda expressed satisfaction with the Apple partnership, highlighting its role in attracting premium advertisers via the Taboola Select offering and its validation in the market. He noted that the adoption rate for Max Conversions is around 70%, with significant quarter-over-quarter growth in both advertisers and campaigns using the tool, particularly driving performance for advertisers from China and in verticals like healthcare and auto.