Faith Brunner

Faith Brunner asked about the expected AI adoption curve for 2026 and beyond, specifically how CCC plans to leverage early adopters as proof points to expand deployment more broadly across its network.

Answer

Githesh Ramamurthy, CCC's Chairman and CEO, noted that the company now has more referenceable customers for its AI solutions, which helps accelerate adoption. He observed an increased propensity among customers to deploy AI more aggressively, emphasizing the importance of clear controls and transparency in the process, indicating an inflection point for broader rollout.

Faith Brunner inquired about the anticipated AI adoption curve for 2026 and beyond, particularly how the growing base of early adopters will influence broader network deployment.

Answer

CEO Githesh Ramamurthy highlighted increased referenceable customers for new AI solutions and a greater propensity among the customer base to deploy AI more aggressively, noting the importance of controls and transparency.

Faith Brunner, on behalf of Dylan Becker, asked about DAT's long-term growth potential with its end-to-end platform and its durability amidst freight headwinds, and later inquired about Deltek's performance during past government shutdowns and any potential insulation.

Answer

President and CEO Neil Hunn stated that DAT's core business is a low double-digit growth business, and the new automated platform expands the total addressable market by multiples, but he wants to see actual momentum before quantifying the acceleration. For Deltek, Mr. Hunn explained that the 60% GovCon segment experiences paused commercial activity during shutdowns, but demand and pipelines remain, with the late-year timing making recovery of lost activity challenging.

Faith Brunner asked about DAT's long-term growth potential with its end-to-end platform, how it can drive durability despite freight headwinds, and inquired about Deltek's performance during past government shutdowns and any potential insulation.

Answer

Neil Hunn, President and CEO, stated that the core DAT business is a low double-digit growth enterprise, and the new automated business significantly expands the total addressable market, though he prefers to see actual momentum before quantifying acceleration. Regarding Deltek, Mr. Hunn explained that government shutdowns pause commercial activity in the 60% GovCon portion, but demand and pipelines remain strong due to the OB3 spending, with the year-end timing making the current shutdown particularly impactful.

Faith Brunner asked about ServiceTitan's strategy to move earlier into the construction phase within the commercial market and the product innovation roadmap to unlock more strategic value on that side.

Answer

Co-Founder and President Vahe Kuzoyan explained that initial efforts focused on fundamental B2B features. Current progress in construction is driven by project management and operational aspects. The roadmap for the rest of the year includes crews, daily logs, RFIs, submittals, change orders, financials, document management, and a better mobile experience, with future focus shifting to upfront bid management.

Faith Brunner of William Blair asked about the broader industry challenges customers raised at the Commercial Summit and whether the nature of these conversations has shifted recently.

Answer

EVP, Strategy, Paul Shawah identified fragmented data as a key ongoing challenge, noting that connecting data and software for faster insights remains an unsolved problem that Veeva is addressing. He also mentioned that customers are looking for help solving industry-specific problems with deep, integrated AI, as many of their own AI projects have not yielded the full expected return, creating an opportunity for Veeva.

Faith Brunner of William Blair asked for details on the spending behavior of Unity's performance-based advertisers, particularly during economic downturns. She also questioned how Unity Vector, with its improved ROI, might add durability to that advertiser spend.

Answer

CEO Matthew Bromberg reiterated that Unity's business performance is driven principally by its own execution, not macroeconomic trends. He stated that when Unity delivers markedly better performance, as it is with Vector, it sees increased advertiser spend regardless of broader economic uncertainty. He emphasized that this dynamic is already being observed, providing confidence that superior ROI is the key to durable revenue.

Faith Brunner asked about the factors driving the durability of demand beyond one-time events and inquired about the contribution of the 'Insights' product, previously called a 'sleeping giant'.

Answer

CEO Sandeep Sahai attributed the durability of growth to having 'many irons in the fire,' including high retention, dedicated teams for asset growth, new products, a strong commercial model, and geographic expansion, as noted by CFO James Cox. Regarding 'Insights,' Sandeep Sahai reiterated that it is a significant long-term initiative but is not expected to be a major revenue contributor in 2025, with more meaningful impact anticipated in 2026 and beyond as part of a 3-5 year strategy.

Faith Brunner of William Blair inquired about Descartes' exposure to transactional revenue amid macroeconomic shifts and asked for an update on the M&A landscape for the second half of the year.

Answer

CEO Ed Ryan clarified that transactional revenue constitutes about 31% of total revenue and remains relatively stable due to underlying minimums in contracts. Regarding M&A, he noted a favorable environment as seller valuation expectations have become more reasonable, and he anticipates the company's acquisition pace will continue.

Faith Brunner, on behalf of Dylan Haber, inquired about Descartes' transactional revenue exposure and its sensitivity to volume changes, as well as the M&A outlook for the second half of the year.

Answer

CEO Edward Ryan explained that transactional revenue constitutes about 31% of total revenue and maintains relative stability due to underlying minimums in contracts. He also characterized the M&A environment as favorable, noting that seller valuation expectations have become more reasonable, and he anticipates the current pace of acquisitions will continue.

Inquired about the company's services ecosystem, specifically the role of partnerships and system integrators in their up-market strategy, and asked about the investments being made to scale teams in the fast-growing EMEA region.

Answer

The company is in advanced discussions with third-party consultants and integrators, who are key for both implementation and selection in the institutional space. For EMEA, they are actively hiring, particularly specialized product managers for OEMS and compliance, to support the diverse needs of different European geographies.