Jessica

Jessica asked about the main drivers for the consumer segment's expected growth of over 10% in 2026, considering the degrees product category headwind, focusing on factors like subscription mix, learner acquisition, conversion, and pricing. She also inquired about the priorities for the enterprise segment following its NRR inflection to 93%, and how product development and other aspects are being considered to improve segment performance, especially in light of the potential Udemy merger.

Answer

President and CEO Greg Hart explained that subscriptions and courses remain the fastest-growing part of the consumer business, with increased marketing and platform investment due to Coursera Plus offering the best value. CFO Mike Foley added confidence from Q4 momentum in annual subscriptions and improved retention. For enterprise, Mike Foley acknowledged NRR of 93% is not satisfactory, noting a new GM and operational changes expected to bear fruit in H2 2026/2027, with Q4's NRR uptick largely driven by one large government expansion. Greg Hart highlighted the complementary nature of the Udemy merger, combining Coursera's consumer strength with Udemy's larger enterprise business and product advancements, creating opportunities for skill development within the flow of work.

Jessica from Raymond James asked whether Paylocity's increasingly differentiated platform value is leading customers to initially adopt more products than previous cohorts, or if it primarily offers more entry points for customers to land and then expand later.

Answer

Toby Williams, President and CEO, confirmed that Paylocity is observing both trends. He stated that platform differentiation aids overall client acquisition and unit growth, while also noting a consistent year-over-year increase in the number of products clients adopt, leading to higher average revenue per user (ARPU) at acquisition and through subsequent cross-selling.

Jessica asked if Paylocity's increasingly differentiated platform is leading customers to land with more products initially, or if it primarily offers more entry points for later expansion.

Answer

President and CEO Toby Williams observed both trends: differentiation gains aiding client acquisition and unit growth, and a long-term increase in average revenue per client (ARPU) as clients adopt more products over time, both at acquisition and through cross-sells.

Jessica inquired about any structural differences in the international opportunity and competitive environment compared to domestic growth, and whether competitors are becoming more aggressive on pricing.

Answer

Sanjit Biswas (CEO) noted consistent competitors (point solutions, regional players) and differentiated Samsara through its platform approach and value unlock. He acknowledged competitors often discount heavily but stated Samsara focuses on demonstrating greater value beyond just price.