Joshua Riley

Joshua Riley asked about the pipeline for voice AI relative to other voice opportunities, its current revenue mix, and whether 2026 marks an inflection point for voice AI use cases. He also sought details on the composition of new million-plus Global 2000 deals, new functionality requests, and reasons for winning against legacy telcos.

Answer

David Morken, CEO, stated that AI is integral to all enterprise conversations, with Maestro attaching to every enterprise deal, and believes 2026 is a vital year for AI adoption to scale and impact top and bottom lines. Regarding large deals, Mr. Morken noted closing more million-plus deals in 2025 than in 2023 and 2024 combined due to an expanded product portfolio. John Bell, Chief Product Officer, added that Maestro's value proposition for integration and cloud migration, reinforced by AI, is key to these wins.

Joshua Riley asked for clarification on the Annual Contract Value (ACV) from new SaaS deals, noting potential comparison issues for Q4, and sought expectations for growth off the $53 million figure from 2025 into 2026.

Answer

CFO Brian Miller explained that Tyler Technologies expects SaaS bookings to grow in 2026, supported by strong market conditions. He highlighted that Q4 2024 had an unusually high number of large, multi-million dollar SaaS deals with longer durations (3.7 years) compared to Q4 2025 (2.3 years), which impacted year-over-year comparisons. President and CEO Lynn Moore emphasized that momentum from successful flips continues to build future success.

Joshua Riley asked for clarification on the comparable issues for Q4 regarding ACV from new SaaS deals, and whether growth off the $53 million figure from 2025 should be expected in 2026.

Answer

Brian Miller, CFO, explained that while specific bookings numbers aren't guided, SaaS bookings are expected to grow in 2026, supported by market conditions. He noted that Q4 of the previous year had an unusually high number of large, multi-million dollar SaaS deals with longer durations. Lynn Moore, President and CEO, added that momentum from successful flips and peer adoption helps, despite ongoing client-specific budget or technology issues.

Joshua Riley with Needham & Company inquired about AudioCodes' updated financial targets for conversational AI growth through 2028, specifically asking if the 40%-50% annual growth is a CAGR and whether customer growth or increased spend per customer will be the primary driver. He also asked about the impact of shifting market expectations around AI on pipeline visibility and size, and the expected impact of tariffs on 2026 financials and gross margin.

Answer

Shabtai Adlersberg, President and CEO, explained that growth is expected from both a dramatic increase in new customers and higher spend per existing customer due to expanded capabilities and features, supported by significant R&D investment in Voice AI. He confirmed improved pipeline visibility for Voice AI products due to easier SaaS testing and increased sales efforts. Regarding tariffs, Mr. Adlersberg stated that gross margins are expected to remain in the 65%-68% range, with tariffs projected to decrease from $2.7 million in 2025 to $2.3 million in 2026.

Joshua Riley asked about the progress of cross-selling Cartrack Tag and video solutions in South Africa, noting the 7% year-over-year increase in ARPU, and inquired about the balance between market demand and sales execution given record net new subscribers.

Answer

Zak Calisto, Founder and Group CEO, indicated that the company is in the early stages of the cross-selling cycle in South Africa, anticipating stronger momentum next financial year. He also highlighted substantial increases in sales and marketing, strong unit economics, and overall performance aligning with plans, with some regional variations.

Joshua Riley asked about the moving parts influencing the small sequential decline in gross dollar retention, considering the recent price increase as a potential tailwind.

Answer

Caryn Seidman-Becker, CEO of Clear Secure, clarified that the 2023 price increases impact gross dollar retention over a 24-month period, with Q4 and Q5 having the greatest positive contribution. The 86.9% GDR was anticipated and in line with moderating impacts from 2023 pricing. She added that there's no material impact on retention from the July 1st price increases, and recent retention patterns are encouraging due to customer experience improvements.

Joshua Riley of Wolfe Research, via Ian Black, asked how gross retention is trending, considering the improvements in customer satisfaction (NPS) and the company lapping any churn related to the Beti transition.

Answer

CEO Chad Richison stated that Paycom reports retention annually but noted that rising Net Promoter Scores and increased product utilization are positive early indicators. He explained that these improvements are intended to have a positive impact on retention, which is reflected in the company's current results and future guidance.