Matt Bullock

Matt Bullock asked about the evolution of customer conversations regarding tariff impacts since April, and if customers have adapted to the evolving tariff environment. He also inquired about sales productivity trends within the enterprise sales organization versus resource additions, and what drove the larger net new ARR beat.

Answer

Sanjit Biswas (CEO) stated customers have adapted to tariffs by focusing on asset efficiency, stretching lifespans through maintenance, and optimizing utilization. Dominic Phillips (CFO) explained that Q2's growth was balanced, with continued sales capacity additions and strong productivity driven by R&D and new products, contributing to the net new ARR beat.

Matt Bullock of Bank of America Merrill Lynch asked for more details on the recently launched customer upgrade program and whether it has catalyzed competitive displacements. He also inquired about how conversations are trending with very large strategic accounts with over 100,000 vehicles.

Answer

Co-Founder and CEO Sanjit Biswas explained that the upgrade program formalizes an existing practice of buying out contracts to help customers switch from legacy providers, making the process easier and more templatized. Regarding large strategic accounts, he noted that while these customers are very interested, they represent complex, multi-year sales cycles due to the significant change management involved.

Matt Bullock inquired about the evolution of use cases for Enterprise Advanced customers beyond initial metadata extraction. He also asked for the company's broader, medium-term vision for its recently GA'd MCP server.

Answer

CEO Aaron Levie explained that after metadata extraction, customers are moving toward full workflow automation, using AI agents to manage processes like client onboarding and loan origination. Regarding the MCP server, he outlined a vision where it serves as a crucial abstraction layer, allowing the dozens of different AI systems within an enterprise (e.g., ChatGPT, Claude) to securely access data and agents within Box, thereby centralizing content and avoiding data fragmentation and security risks.

Matt Bullock asked about the trend in AI actions, noting a sequential slowdown, and the monetization timeline. He also requested more data on the Google SEO impact and why it was specifically highlighted this quarter.

Answer

Co-CEO Eran Zinman stated the company is pleased with AI adoption, noting the introduction of paid tiers at the start of the year had a natural effect on usage growth but that revenue from AI is beginning to accumulate. Regarding Google, he reiterated that the effects are minor and are being optimized daily, but did not provide specific traffic or conversion metrics.

Matt Bullock, on for Mike Funk, asked about the strong performance of monday CRM, inquiring about the competitive landscape, win rates, and the specific product functionality that is resonating most with customers.

Answer

Co-CEO Eran Zinman reported no changes in the competitive landscape for monday CRM, identifying Pipedrive, SugarCRM, and HubSpot as the most frequently encountered competitors, primarily in the SMB and mid-market segments. He credited the platform's flexibility as a key differentiator and a major reason why customers choose monday.com.

Matt Bullock of Bank of America Merrill Lynch inquired about the strategy for converting Dropbox's large free user base and asked what key metrics investors should expect for Dash post its self-serve launch.

Answer

Co-Founder & CEO Drew Houston explained the free-to-paid conversion strategy involves adding new value with products like Dash, optimizing pricing with plans like the 'Simple Plan' for mobile users, and balancing free value with premium features. Regarding Dash metrics, he stated that as the product matures, the company will share more on funnel metrics like onboarding success, retention, and monetization, but noted it's a phased approach and early data can be noisy.

Matt Bullock of Bank of America Merrill Lynch inquired about the sustainability of the 25% growth rate in Alarm.com's commercial, international, and energy hub businesses, asking what is driving their success and whether the growth is evenly distributed.

Answer

CEO Steve Trundle explained that the growth is driven by distinct secular trends in each area: increased energy demand for EnergyHub, a focus on security and cloud migration in commercial, and early-stage market development internationally. He noted the individual growth rates are all within a similar range, plus or minus 500 basis points of the 25% aggregate rate, and that the company continuously evaluates accelerating investments in these high-growth areas.

Matt Bullock of Bank of America Merrill Lynch asked for details on the asset analytics business, including its growth profile, key areas of focus, and the seasonality nuances creating tougher ARR comps in Q2 and Q3.

Answer

Executive Chair Greg Bentley explained the business is not yet large enough to be broken out but is a source of volatility due to large, lumpy deals, with Q2 and Q3 of 2024 being particularly strong. CEO Nicholas Cumins added that the strategy to reduce volatility includes targeting asset owners for recurring monitoring and partnering with engineering firms, citing a new deal for their Blyncsy road monitoring solution.

Matt Bullock of Bank of America Merrill Lynch inquired about the composition of Asana's initial $1 million in AI Studio ARR, asking about customer types and use cases, and the potential upside drivers for the remainder of fiscal 2026. He also followed up on the $100 million+ contract renewal, seeking details on the ACV change and any AI Studio component.

Answer

Co-Founder and CEO Dustin Moskovitz explained that the AI Studio ARR is diverse across regions, industries, and segments, currently comprising Pro platform fees. He highlighted future upside from consumption-based pricing, the new Smart Workflow Gallery, the upcoming 'Plus' SKU for SMBs, and the H2 launch of 'AI teammates'. CFO Sonalee Parekh confirmed the large renewal was in the tech vertical, a three-year, $100M+ TCV deal that slipped into Q2. She noted it involved a modest ACV downgrade, which will pressure NRR, but provides significant long-term visibility. COO Anne Raimondi added that the customer chose Asana after a rigorous process, validating its enterprise scale and security.

Matt Bullock from Bank of America Merrill Lynch noted the acceleration in quarterly billings versus a slight deceleration in trailing twelve-month (TTM) billings and asked which metric is a better indicator of the underlying business strength.

Answer

CFO Howard Wilson stated that trailing twelve-month (TTM) billings is the better indicator for the business's underlying health. He explained that TTM billings align more closely with annual recurring revenue (ARR) and are less susceptible to the quarterly fluctuations caused by customer co-terming.