Matt Shea

Matt Shea, on behalf of Ryan MacDonald, asked about Veeva's past comments on AI being a game-changer in safety and potentially seeing faster adoption there than in quality. He inquired why Veeva is leaning into agent development in safety, given the market's historical reluctance to change, and if two new agents in April can unlock demand or how the market will ultimately adopt AI.

Answer

Peter Gassner, CEO, highlighted the 'safety surge' with recent top 20 wins and go-lives. He explained that AI's clear ROI in safety lies in replacing human labor for case intake and narrative generation. While switching core safety systems is risky, customers are realizing Veeva offers a future with a great core safety system integrated with AI, which is difficult to build internally. The market's slowness is due to the critical nature of reporting to health authorities.

Matt Shea asked about Veeva's focus on agent development in safety, given the market's historical reluctance to change, and whether new agents can unlock demand or how the market will ultimately adopt AI. He also inquired about the safety surge and recent top 20 wins.

Answer

CEO Peter Gassner highlighted the 'safety surge' with recent top 20 wins and go-lives. He explained that AI in safety offers clear benefits by automating human processing of case intake and narrative generation, which is expensive but not high-risk. While customers are reluctant to change core safety systems due to critical regulatory reporting, Veeva's integrated core safety with AI is seen as the only path forward for many, as building and maintaining these systems internally is challenging.

Matt Shea, on behalf of Ryan MacDonald, inquired about end market performance during the renewal cycle, specifically regarding downsells in the life sciences and pharma segments. He also asked about the inputs to the 2026 growth outlook, reconciling potential revenue per customer declines despite historical ARPU growth.

Answer

CFO Casey Heller explained that gross dollar retention improved by 2 points year-over-year, largely driven by enterprise customers in life sciences, while net dollar retention declined due to fewer upsell/cross-sell opportunities. She noted that the diversified and provider segments returned to growth in Q4. Regarding ARPU, she attributed potential declines to a business mix shift, with growth in diversified and provider segments (which typically have lower dollar values per customer) rather than increased churn.

Matt Shea (for Ryan MacDonald) inquired about renewal performance across end markets, specifically the life sciences and pharma segments where downsells have been an issue, and then asked about the inputs to the 2026 growth outlook, considering customer count declines and revenue per customer.

Answer

CFO Casey Heller stated that gross dollar retention improved by 2 points year-over-year, largely driven by enterprise customers in life sciences, while net dollar retention declined due to fewer upsell opportunities. She noted that diversified and provider segments returned to growth in Q4. Kevin Coop added that claims data remediation and product innovation provide more tools for 2026. Casey Heller clarified that the expected revenue per customer decline in 2026 is more about business mix, with growth in smaller diversified and provider accounts.

Matt Shea inquired about Coursera's international growth strategy, specifically the future expansion of AI dubbing and machine translation beyond the initial 1,000 courses and five languages, and the immediate benefits. He also asked about the evolution and future rollout plans for geo-based pricing in new countries for 2026. Additionally, he sought feedback from university, enterprise partners, and Udemy instructors regarding the proposed combination with Udemy.

Answer

President and CEO Greg Hart confirmed continued investment in AI dubbing and machine translation due to higher learner engagement in native languages, noting Udemy's 85,000+ instructors as a fantastic addition for global content. He expressed satisfaction with geo-pricing results and plans to fine-tune it further in 2026. Regarding the Udemy combination, Greg Hart highlighted the expanded audience for content creators (nearly 300M registered learners combined) and enterprise customers (1,700 Coursera + 17,000 Udemy), acknowledging partner curiosity about integration and the need for careful platform development post-close.

Matt Shea inquired about Coursera's international growth, specifically the success of AI dubbing in unlocking international learners, and plans for further translation in 2026. He also asked about the evolution of geo-based pricing and plans for its expansion.

Answer

Greg Hart, President and CEO of Coursera, confirmed continued investment in AI dubbing and machine translation, noting higher learner engagement in native languages. He expressed satisfaction with geo-pricing results and plans to fine-tune it in 2026. Matt Shea also asked about feedback from University, Enterprise partners, and Udemy instructors regarding the Coursera-Udemy combination. Greg Hart highlighted the benefits for all participants, including a larger audience for content creators and expanded Enterprise reach, while acknowledging the need for post-close feedback on integration.