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CEO Shlomi Ben Haim explained that AI coding tools increase the volume of binaries and introduce new security threats, making JFrog's platform more relevant. He confirmed it is already benefiting the business. CFO Ed Grabscheid reiterated that the company plans to provide detailed metrics on security attach rates at the end of 2025.

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CFO Ed Grabscheid and CEO Shlomi Haim reiterated the full-year cloud growth guidance of 'around 40%' and stated self-managed growth would be similar to recent quarters. Regarding net retention, CFO Ed Grabscheid confirmed it is expected to stabilize in the mid-teens in Q4. CEO Shlomi Haim identified security add-ons and cloud migrations as the primary future drivers for increasing the rate.

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CEO Tianyi Jiang clarified that the SMB segment, which includes the fast-growing MSP business, is 19% of recurring revenue. He specified the $100 million ARR milestone was for the mid-market segment. Jiang attributed the NRR momentum to the platform play, with the Control Suite being the fastest-growing offering, driven by customer needs for governance, security, and data protection, especially agentic AI governance.

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CEO Tianyi Jiang expressed continued bullishness on the MSP segment, which uses AvePoint's platform to scale their own managed services. He highlighted the recent launch of the Elements platform, which is tailored for partners with multi-tenant management and monthly contracts. He stated that MSP ARR was 14% of total ARR at the end of 2024, with a 60% average CAGR from 2020-2024, and noted the recent Ydentic acquisition adds important IP. He also mentioned the Elements platform is finding use cases in large enterprises.

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CEO Tianyi Jiang clarified that the direct exposure to impacted federal agencies is minimal, at approximately 2% of total ARR, and noted that the fundamental need for digital transformation persists. CFO James Caci explained the ARR-to-revenue growth gap is primarily due to foreign exchange headwinds and the continued decline in services revenue as a percentage of the total mix.

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CFO Jim Caci noted that while suite-specific growth rates are an annual disclosure, performance is expected to be similar to last year with an increased customer focus on the Control suite. CEO Tianyi Jiang attributed the record net new ARR to strong performance in the enterprise segment and accelerated growth in the SMB segment, driven by the managed service provider channel. Dr. Jiang emphasized that the platform's strength in combining governance (Control suite) and security (Resilience suite) is a key market differentiator.

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CEO John Pagliuca described the SMB IT spending environment as healthy, with strong demand for security and data protection. He noted that while physical device counts are flattish, there is growth in managing other digital assets like M365 users and VMs. He reiterated that AdLumen is expected to add about one point to the exit 2025 ARR growth rate and that its acquisition ARR was in the low $20 million range.

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EVP and CFO Tim O'Brien clarified the Q1 revenue beat included some FX upside and a positive, non-recurring impact from ASC 606. President and CEO John Pagliuca explained that customer expansion is driven by platform bundling, which significantly increases average contract value (ACV), especially with Adlumin. He advised watching for ARR acceleration and an NRR uptick as proof points.

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EVP and CFO Tim O'Brien stated that on-premise revenue is about 15% of the business and that the estate optimization headwind is a separate issue that negatively impacts net retention. CEO John Pagliuca explained that all revenue is subscription-based, but long-term on-premise contracts trigger accelerated revenue recognition under ASC 606. He positioned the customer shift to SaaS as a positive indicator that the company's platform modernization is resonating in the market.

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CFO Marc Suidan attributed the recent NRR decline to the lapping of a price increase, stating the underlying metric is stable and should improve as customer success initiatives mature. CEO Gleb Budman argued that not having compute is an advantage, as Backblaze can act as a neutral storage layer for all five stages of the AI data pipeline, allowing customers to use any GPU provider without being locked into a hyperscaler's ecosystem.

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CEO Gleb Budman confirmed observing some slower decisions but expressed confidence in the 30%+ B2 exit growth rate, citing strong self-serve momentum and a doubling of sales bookings. CFO Marc Suidan added that April demand was consistent with Q1. Budman described the competitive landscape as largely unchanged, with significant opportunity to win deals from hyperscalers and onboard new-to-cloud customers, driven by an improving go-to-market motion.

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CEO Gleb Budman confirmed that IT backup and cyber-resilience is one of their four core sales plays and a significant growth area for the B2 business. Regarding competition, Budman noted that while hyperscalers remain, the key evolution is the broader realization that storing data outside their walled gardens is beneficial, creating opportunity for a best-of-breed provider like Backblaze.

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CFO Matt Steinfort confirmed that AI revenue is in the 5-10% ballpark and is becoming an increasingly material part of the business, though core cloud remains the majority. He affirmed that the core cloud business continues to see momentum and is improving, growing in the low double digits. He clarified that the quarter's upside was primarily driven by strong new customer acquisition and AI growth, which offset the slightly lower NDR.

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CEO Padmanabhan Srinivasan stated the GenAI platform is expected to be generally available by the end of Q2 or early Q3 2025, noting strong beta adoption with over 5,000 customers. He detailed a three-layer differentiation strategy: an infrastructure layer optimized for full-stack AI inferencing, a platform layer focused on democratizing GenAI access for developers, and an application layer featuring tools like the cloud-based co-pilot.

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CEO Jay Kreps acknowledged the frustration but argued that positive forces like Flink growth, AI use cases, and increased RPO commitments are gaining traction and will eventually predominate over the optimization headwinds from large customers. CFO Rohan Sivaram addressed the NRR outlook, stating that given the cloud consumption trends, they expect near-term pressure on the metric. However, he noted that go-to-market initiatives and other 'green shoots' should serve as tailwinds for NRR in the longer term.

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CEO Jay Kreps attributed the strong customer adds to two factors: improvements in the product-led growth motion for top-of-funnel adds, and the natural progression of existing customers into the $1M+ ARR cohort. Regarding AI, he acknowledged that while no project delays have been observed yet, customer uncertainty about the macro environment is a reason for Confluent's conservative guidance.

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CFO Rohan Sivaram attributed the Q4 guidance to the potential lumpiness of the Confluent Platform business and a tougher sequential comparison due to a one-time cloud revenue benefit in Q3. CEO Jay Kreps described the federal business as 'reasonable' but noted its impact is currently limited as it's primarily a Confluent Platform market pending FedRAMP certification for Cloud.

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CEO Yaki Faitelson responded that Varonis rarely sees backup vendors in competitive situations and that DSPM companies acquired by larger firms are not frequently encountered. He noted competition exists in about 10% of cloud infrastructure deals, primarily from funded startups, but reiterated that Varonis's key differentiator is its use of large-scale production POCs.

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CFO and COO Guy Melamed explained that the P&L, including gross margin, will be 'messy' and not reflective of underlying performance in 2025 due to the accounting differences in the SaaS transition. He reiterated a medium-term gross margin target in the 80% range. The wide operating income range is a prudent measure to account for the significant volatility and variables involved in completing the full business model transition this year.

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CFO and COO Guy Melamed confirmed the revenue miss was due to a faster SaaS mix (53% of ARR vs. 49% guided), which created a 7% headwind to the revenue guide due to ratable recognition. Regarding the ARR headwind, he explained that while the 25-30% uplift on conversions is strong, only about one-third of the base has converted over two years. The time and effort spent on these conversions currently detract from the faster growth seen in new business, which is why accelerating the transition is beneficial.

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CFO & COO Guy Melamed advised against focusing on traditional metrics like revenue and operating margin during the transition, calling them 'very misleading' due to the shift from upfront to ratable revenue recognition. He urged investors to focus on the three 'North Stars': ARR, free cash flow, and ARR contribution margin, which have all been progressing nicely. He stated that more specific 2025 color would be provided after Q4 results are finalized.

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CEO Sanjay Mirchandani explained that Commvault offers logical bundles that customers naturally adopt, such as Clean Room with Active Directory. He indicated that as the cyber resilience platform evolves, more integrated bundles will be introduced. Mirchandani suggested that more details on the platform and its packaging would be revealed at the Commvault Shift event in November.

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CFO Jennifer DiRico explained that fiscal 2025 is an investment year to accelerate growth. She cited several factors impacting margins: the mix shift to SaaS, dilution from the Clumio acquisition, higher sales commissions from overperformance, and ongoing growth investments. She noted the company achieved a Rule of 42 in the quarter. She specified that Clumio contributed approximately $6 million in quarterly revenue, while the Appranix acquisition's impact was not yet material.

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CFO Jen DiRico stated that while they are committed to long-term margin expansion, the current 20-21% margin reflects planned investments to accelerate growth and capture market share. CEO Sanjay Mirchandani confirmed that platform consolidation is a major industry trend, positioning Commvault's 'no workload left behind' single-platform approach as the key to winning business from customers looking to simplify their environments.

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CEO Bill Staples positioned these AI assistants as complementary rather than disruptive. He explained that they generate code, which then needs GitLab's platform for the rest of the DevSecOps lifecycle (testing, security, deployment). He emphasized that these tools already work well with GitLab and that GitLab believes in an open, interoperable platform, while also developing its own strong, full-lifecycle AI capabilities.

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CEO Sid Sijbrandij acknowledged that both GitLab and GitHub are benefiting from customers migrating to platforms, noting GitHub's head start in AI code creation but emphasizing GitLab's competitive strengths in model-agnosticism and superior context from its broad platform. CFO Brian Robins expressed no concern over the DBNRR trend, stating that all historical cohorts continue to expand and that the rate is influenced by factors like a large deal from the prior year, not a change in developer hiring trends.

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CEO Dev Ittycheria responded that the market is large enough for multiple winners and positioned Postgres's rise as a consolidation of the legacy SQL market. He emphasized MongoDB's architectural advantages for modern apps and its value as an integrated data platform, which includes search and vector capabilities, making it a more comprehensive solution than Postgres alone.

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CEO Dev Ittycheria agreed that enterprises are now more judicious about workload placement due to factors like existing investments and regulations, validating MongoDB's 'run anywhere' strategy. He clarified that strategic sales investments include a mix of resources beyond quota-carriers, such as technical, services, and developer education teams, to drive deeper adoption in key accounts.

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CFO Michael Gordon attributed the soft implied Q4 sequential growth to tough year-over-year compares, the compounding effect of a slow Q1, and an assumed weaker seasonal rebound in Q3. He did not break out Atlas gross margin but stated the prepayments and IPv4 purchases will benefit margins more significantly in fiscal 2026 than in the current year.

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CFO Wissam Jabre stated that while the company is not ready to set a new target range, he anticipates gradual quarterly improvement in cloud gross margins from the current level, which is already at the high end of the 75-80% long-term target. CEO George Kurian noted the VMware situation has led to caution around hyper-converged infrastructure, customer replatforming exercises that benefit NetApp's block storage, and good growth for NetApp's own VMware services in the public cloud.

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CFO Michael Berry stated that the divested Spot business generated approximately $94 million in revenue over the trailing 12 months and the transaction is expected to be neutral to EPS. Executive Kris Newton added that the U.S. public sector, which includes federal, state, and local government, typically accounts for 10% to 13% of total company revenue.

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CEO George Kurian noted that while no material impact has been seen yet, NetApp is well-positioned to assist customers exploring alternatives, including optimizing their VMware estate, moving to new hypervisors, or migrating to the public cloud. CFO Mike Berry confirmed that Keystone revenue is reported within the professional services line and is a primary driver of its growth.

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CFO Kevan Krysler stated that there will be a 'de minimis' revenue contribution from the deal in the second half, which has already been factored into the company's annual guidance. He clarified that the revenue would be recognized based on a licensing fee model, not the full gross value of the hardware.

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CEO Charles Giancarlo stated they could provide more specific revenue guidance 3-6 months prior to the actual rollout, once plans are firmer. CFO Kevan Krysler reiterated that the financial profile is consistent with last quarter's discussion, with hardware-like gross margins and expected operating margin expansion over time.

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CEO Charles Giancarlo stated that Pure's lead in QLC technology remains strong, as shown by the success of its E family products, and that overall competitive intensity is high because Pure is seen as the 'alpha competitor.' CFO Kevan Krysler noted that NAND pricing volatility highlights the advantages of Pure's software and DirectFlash technology.

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CFO Rukmini Sivaraman explained that revenue growth outpaced ARR growth due to factors like contract duration and the timing of revenue recognition from large deals, making quarterly revenue lumpy. President and CEO Rajiv Ramaswami stated that the CSP and MSP market is a significant opportunity that Nutanix is now focusing on with specific programs and resources, though the business is still in its early stages.

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CEO Rajiv Ramaswami stated that shortening sales cycles are anecdotal and confirmed that Nutanix's partner-centric model and incentives are helping win channel engagement. CFO Rukmini Sivaraman declined to provide FY26 guidance but reiterated the company's commitment to a sustainable 'Rule of 40 plus' framework, balancing growth and profitability, while noting H2 margins will be lower than H1 due to planned investments.

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CFO Rukmini Sivaraman confirmed that operating expenses are expected to grow through the year, similar to the prior fiscal year, leading to lower operating margins in the second half. She specified that R&D investments are focused on areas like AHV stand-alone support, cloud-native offerings, and generative AI. Sales and marketing investments include hiring product specialists and expanding channel programs.

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CFO Rukmini Sivaraman clarified that while cash for the 8-figure deal was collected, significant license revenue recognition begins in fiscal 2025. President and CEO Rajiv Ramaswami refuted any go-to-market misalignment, stating that while the mid-market is a core strength, the largest dollar opportunity is upmarket, and pursuing it is essential for growth. He noted recent large wins were indeed influenced by the Broadcom situation.

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CFO Dylan Smith confirmed that pricing increases, particularly from Enterprise Advanced upgrades, are the main driver of customer expansion, with net seat growth being a minor contributor. He noted that seat growth is more sensitive to the economic environment. CEO Aaron Levie added that the focus on Enterprise Advanced drives both price-per-seat increases and expanded use cases, which could eventually lead to broader seat adoption.

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CFO Dylan Smith outlined that the path to double-digit growth relies on improving the net retention rate through a balance of seat growth and pricing, alongside international expansion. While confident in continued bottom-line expansion, he noted the mix between growth and profitability could shift as investments pay off. He clarified that the recent acquisitions have no revenue impact and their costs are already incorporated into the provided guidance.

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CEO Matthew Cain asserted that accelerating growth hinges on execution, emphasizing the company's differentiated AI-native platform and refined go-to-market strategy. CFO Gregory Henry added that after achieving 23% and 25% ARR growth in prior years, he is confident in returning to 20%+ growth as the renewal base improves. Regarding industry consolidation, Cain viewed the IBM-DataStax deal as validation of Couchbase's strategy, reinforcing the market's need for unified operational and analytical data platforms.

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CFO Gregory Henry reiterated the commitment to be free cash flow positive in fiscal 2026 but stated the target for non-GAAP operating income breakeven remains fiscal 2027. CEO Matthew Cain defended the ARR guidance, citing confidence from their predictable enterprise model, the strong Capella growth, and a material amount of already-contracted ARR scheduled to begin in Q4, which provides significant visibility.

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