Matt Bullock

Matt Bullock asked for clarification on the paying user growth assumptions embedded in the full-year guidance, including the evolution across individual and teams plans, and the impact of FormSwift's sunsetting, followed by a question on the potential M&A strategy.

Answer

Ross Tennenbaum, CFO, confirmed positive net new paying users in Q4, anticipating seasonality in Q1 2026 leading to a decline, but flat growth for the full year, driven by core FSS initiatives. Drew Houston, CEO and Co-Founder, discussed M&A as a tool for talent and product expansion, citing Nira and Mobius Labs, and highlighted future opportunities around the Context Engine and AI security.

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 asked for further clarification on monday.com's free cash flow margin guidance, specifically detailing the baked-in incremental cash taxes, lower interest income, and the relationship between the share buyback program and free cash flow.

Answer

Eliran Glazer, monday.com CFO, reiterated that the free cash flow guidance is significantly impacted by the strong appreciation of the Israeli shekel (affecting 55% of headcount), a reduction of approximately 1% in interest rates impacting returns on cash, the company's opportunistic share buyback program (where cash used for buybacks doesn't earn interest), and the potential for paying cash taxes as the company becomes more profitable.

Matt Bullock requested further clarification on the free cash flow margin guidance, specifically asking what is baked in regarding incremental cash taxes, lower interest income, and the impact of the share buyback program relative to free cash flow.

Answer

Eliran Glazer, CFO, reiterated that the biggest impact on free cash flow is the appreciation of the Israeli shekel, affecting 55% of headcount costs. Other factors include a projected 1% reduction in interest rates impacting returns on cash, the company's opportunistic share buyback program (which reduces cash available for interest income), and the potential for paying cash taxes as the company becomes more profitable. He noted that $135 million in share repurchases were executed in 2025, with the program continuing in 2026 based on share price levels.

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 sought clarification on the sequential net new ARR growth, asking if Q3 represented the first sequential growth quarter in three years when adjusting for Q1 deal slippage. He also asked for insights into the typical rollout of large deals like First Student, specifically the deployment percentage within the first six months to a year.

Answer

Dominic Phillips, CFO, Samsara, acknowledged the Q1 deal slippage impact on Q2 but did not confirm specific sequential growth figures, instead highlighting Q3's overall strong net new ARR growth rate. He explained that deployment timelines for large deals are customer-specific and often phased over several quarters due to internal change management requirements.

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 progress of Box's growth levers outlined at the March Analyst Day, specifically asking if they are ahead of schedule, in line, or behind, and also asked about drivers of sales and marketing efficiency, sales force productivity, and hiring intentions.

Answer

Aaron Levie, Box Co-founder and CEO, stated that all growth levers are tracking well, with Enterprise Advanced and AI capabilities exceeding expectations, impacting pricing and net seat growth. Dylan Smith, Box Co-founder and CFO, added that incremental investments in sales capacity, vertical efforts, and partner ecosystems are yielding positive results, including long-term partnerships and pipeline growth, and they remain bullish on go-to-market and platform investments.

Matt Bullock inquired about the progress of Box's growth levers, including Enterprise Advanced adoption, net seat growth, new customer acquisition, and platform expansion, relative to the 10%-15% long-term growth target outlined at the March Analyst Day. He also asked about the drivers of sales and marketing efficiency improvements, sales force productivity, and future hiring intentions.

Answer

CEO Aaron Levie stated that all growth levers are tracking well, with Enterprise Advanced and AI capabilities exceeding expectations, positively impacting pricing and net seat growth. He noted strong new customer acquisition, particularly in EMEA, bolstered by partner and SI investments, and good progress in platform expansion via AI units. CFO Dylan Smith added that incremental investments in sales capacity, vertical efforts, and the partner ecosystem are yielding positive results in near-term productivity and long-term partnerships, with plans to continue these investments.

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 early learnings and ARR contribution from the AI Studio self-serve launch, and how AI Studio is influencing renewals, particularly as Asana navigates its first multi-product renewal cycle.

Answer

Anne Raimondi, Chief Operating Officer and Head of Business, highlighted wide adoption and value realization from the AI Studio self-serve launch, noting its role in democratizing access and providing sales signals. She also emphasized AI Studio's strategic benefit in renewal conversations, helping advise customers on AI strategy and driving adoption and consumption. Dan Rogers, CEO, added that AI Studio and AI Teammates open new budgets and use cases, mitigating seat downgrades and introducing consumption-based revenue.

Matt Bullock asked about early learnings and ARR contribution from the AI Studio self-serve launch, and its influence on renewal cycles, particularly as Asana becomes a multi-product company.

Answer

COO Anne Raimondi noted wide adoption and democratized access for AI Studio self-serve, which also provides signals for sales teams. She added that AI Studio has been strategically helpful in renewal conversations. CEO Dan Rogers emphasized that AI Studio and AI Teammates open new budgets and use cases, introducing a consumption-based revenue stream that helps mitigate seat downgrades.

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 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 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.