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CFO Janesh Moorjani stated it's too early to detail the next phase of sales and marketing optimization, as the current focus is on building foundational capabilities. He clarified that the impact from the new transaction model on billings is actually greater than previously expected, indicating strong customer migration, which is a positive sign.

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CEO Andrew Anagnost clarified that removing the target is an acknowledgment of the business's current state, not a lack of faith in long-term growth, which hinges on channel productivity and the 'Make' portfolio. Regarding the transition, he said it is mostly going as planned, though they encountered slightly more partner productivity challenges than expected near the end of the rollout, which they are now addressing.

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CEO Andrew Anagnost deferred specific long-term margin guidance until the new transaction model rollout is complete and a new CFO is hired, but reiterated his confidence in achieving further productivity improvements in sales and marketing. Interim CFO Betsy Rafael anchored expectations to the existing fiscal '26 free cash flow target of approximately $2.05 billion. Regarding customers, Anagnost described the transition as a "nonevent" for most, though some are positively using it as an opportunity to consolidate and streamline their contracts with Autodesk.

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CFO Lior Shemesh explained that the free cash flow margin progression would likely mirror the prior year, with a modest increase expected through 2025 driven by operating leverage from revenue acceleration in the second half. Shemesh confirmed the guidance maintains a degree of conservatism to account for uncontrollable macro factors like FX volatility, despite the company's strong current performance.

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CFO Lior Shemesh attributed the confidence to a combination of factors: accelerating Studio subscription bookings, strong partner retention, the positive impact of AI on self-creator conversion, and improved top-of-funnel demand. CEO Avishai Abrahami stated that upcoming monetized AI products will provide value to both agencies and self-creators, particularly by helping them manage their business and customer communications.

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CFO Kathryn Bueker explained that the moderation toward 9,000 net adds is not due to macro concerns but is primarily because the company is lapping large cohorts of 'Starter' tier customer additions from prior pricing and packaging changes. She affirmed that net additions in the professional and enterprise tiers remain healthy. As a result of this mix shift, she guided for Average Subscription Revenue Per Customer (ASRPC) growth to be approximately flat in the coming quarters.

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CFO Kathryn Bueker expressed satisfaction with the 10,000 net adds in Q3, which was in line with expectations. She noted a balanced mix across Professional and Starter tiers, enabled by the new pricing model. Despite lapping large Starter cohorts from last year, strong gross additions continued. She concluded that the 9,000 to 10,000 range remains the right way to think about net adds in the near term.

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CEO Aman Bhutani highlighted GoDaddy's historical growth through economic cycles, attributing it to the high value-to-cost of its products and its focus on high-intent customers. CFO Mark McCaffrey added that GoDaddy's tools become more mission-critical in tough times. Regarding GPV, he stated there was nothing new to report for April, with customer transactions remaining healthy.

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CFO Mark McCaffrey stated that bookings growth will continue to outpace revenue growth and that a small FX headwind is factored into the 2025 model. He and CEO Aman Bhutani clarified that the financial impact from Airo-driven customer acquisition will be modest in 2025 as monetization builds in bookings before being recognized as revenue.

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CFO Mark McCaffrey confirmed that the 2025 customer growth outlook is primarily due to lapping divestitures and end-of-life migrations. CEO Aman Bhutani added that increased marketing spend on the strong Airo-led product portfolio is also expected to attract more customers. Regarding A&C ARR, McCaffrey noted that while momentum is strong, year-over-year percentage growth comparisons will become more challenging.

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CFO Kristian Talvitie clarified that churn is expected to remain low, as it has in past downturns, so the risk is primarily in new business volume. CEO Neil Barua added that the low-end Q4 guidance of $55M in net new ARR (vs. $84M last year) reflects a potential 20-30% reduction in deal conversion rates, a figure derived from analyzing performance during previous major crises. This analysis provides a downside buffer if macro conditions worsen significantly.

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CFO Kristian Talvitie confirmed that fiscal 2025 is expected to be back-half loaded, potentially more so than usual, which is consistent with the time needed for go-to-market changes to take effect. He did not provide specific quarterly guidance beyond Q2.

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President and CEO Lynn Moore characterized the impact from consultant-led processes as anecdotal, not a primary driver. She expressed confidence that the Q1 softness was an anomaly due to deal timing and lumpiness, expecting a rebound in Q2 based on pipeline analysis.

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CFO Brian Miller clarified that Q4 2024 free cash flow was boosted by approximately $55 million from two unusual items: a large client prepayment and disbursement timing. He explained that after normalizing for these items, the 2024 free cash flow margin was 24.3%, meaning the 2025 guidance still implies about 100 basis points of margin expansion. He expressed confidence in the company's upward trajectory toward its 2030 targets.

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CFO Brian Miller explained that while quarterly results for SaaS flips can be lumpy, the strong performance reflects a growing trend of larger, more complex clients migrating to the cloud, aided by version consolidation. CEO Lynn Moore concurred, advising against modeling the quarter's high TCV as a new run rate but affirmed that strong momentum in flips is expected to continue.

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CEO Mike Rosenbaum stated that the dynamic of repricing risk in California is generally helpful for Guidewire's value proposition of bringing modern technology to the industry, without specifying it as a direct headwind or tailwind. CFO Jeff Cooper explained that subscription and support gross margins are managed on an annual basis and can see quarterly fluctuations, but the company is pleased with the expected annual expansion and its progress toward long-term targets.

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CEO Mike Rosenbaum described the Zurich agreement as a mechanism to streamline and accelerate the adoption of Guidewire Cloud across Zurich's global entities. CFO Jeff Cooper attributed the strong 70% margin to higher revenue and platform efficiencies but noted it was not sustainable for the full year due to a late-quarter shift of some engineering expenses from R&D to COGS.

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CEO Mike Rosenbaum clarified that the strong fully ramped ARR was driven by a 'phenomenal quarter' of broadly successful, reasonably sized deals, not unusual ramp structures. President & CRO John Mullen added that the team is solving broader business problems, leading to larger deal scopes. CFO Jeff Cooper noted that while this gives confidence in durable growth, he would not model an acceleration above the guided 16% range for fiscal 2025.

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CEO Peter Gassner asserted that Veeva's integrated suite provides a structural advantage in EDC and the focus is on delivering value, not on competitors. CFO Brian Van Wagener explained the cash flow guidance reflects a difficult year-over-year comparison due to a $50 million collections benefit in the prior year, not a change in the underlying business dynamics.

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Interim CFO Tim Cabral attributed the guidance increase to better visibility into the second-half pipeline and productive conversations on larger deals. EVP of Strategy Paul Shawah explained that the next Vault CRM release, which adds more functionality, should not delay migrations and may even encourage faster adoption as customers see ongoing innovation.

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EVP and CFO Jason Conley confirmed the 2025 organic growth forecast is clean of one-time items, noting some Q1 slowness in the NS segment due to a tough comp, with an expected pickup in Q2-Q4. President and CEO Neil Hunn stated that with over $5 billion in M&A capacity, the company will pursue all sensible bolt-ons while also seeking one or two platform acquisitions, maintaining a balanced approach.

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President and CFO John Rettig confirmed that the RPO associated with the large FI partner remained "roughly the same" and did not significantly increase with the renewal. He affirmed the analyst's understanding that the pre-existing balance is now being recognized over the new four-year contract term.

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