Jesse Wilson

Jesse Wilson asked which of the five strategic initiatives for 2025 has a head start and which requires more focus. He also followed up on whether account rationalization and enhanced hyperscaler collaboration would create SG&A leverage.

Answer

CEO Leonard Livschitz and COO Yury Gryzlov identified AI and hyperscaler partnerships as the top priorities requiring new investment and focus, while noting that the technology offerings and 'follow-the-sun' strategy are already mature strengths. CFO Anil Doradla stated that while there will be co-investment with partners, overall revenue growth is expected to outpace OpEx growth, creating leverage over time.

Jesse Wilson, on for Maggie Nolan, asked about the effectiveness of recent sales force changes and their impact on C-suite engagement. He also inquired about the remaining share repurchase authorization and the reason for a slight increase in the guided share count.

Answer

Executive David Mackey affirmed that the senior sales hires are meeting expectations, evidenced by the record large deal pipeline, and that timing, not performance, is the key variable. CFO Arijit Sengupta explained the minor share count increase was due to option exercises. He stated that while 1.3 million shares remain on the buyback authorization, the current priority for capital is strategic growth and M&A, with repurchases being a consideration later.