Matthew Swanson

Matt Swanson sought a holistic view on where enterprise Gen AI workloads should reside, connecting the strength of the refresh cycle, demand for data and automation segments, and consulting conversations to understand the current state of enterprise transformation for Gen AI today and heading into 2026.

Answer

CEO Arvind Krishna described an "and world" for enterprise GenAI, anticipating a 50/50 split between private/on-premise and public cloud usage over 3-5 years, driven by concerns around sovereignty, privacy, and efficiency. He suggested that while public models might handle 50% of usage, private/on-premise could account for 80-90% of inferencing due to smaller models, with pricing evening out the dollar split. He emphasized IBM's strong positioning with hybrid cloud and mainframe for this trend, including sovereign core offerings.

Matthew Swanson sought a holistic perspective on where enterprise GenAI workloads will reside, connecting IBM's hybrid cloud and AI pillars. He asked what the current demand strength in data, automation, and consulting segments indicates about the state of enterprise transformation for GenAI today and heading into 2026.

Answer

CEO Arvind Krishna explained that while consumer GenAI largely runs on public clouds, he believes 50% of enterprise AI usage in 3-5 years will be in private clouds or on-premise data centers due to concerns around data sovereignty, privacy, and model learning. He noted that smaller models used on-premise could account for 80-90% of inferencing, even if public models capture a similar dollar value. This 'and world' view, with mainframe as an important element, underpins IBM's strong positioning.

Matthew Swanson asked for details on the $1.5 billion software portion of GenAI bookings, which WatsonX products are seeing the most demand, and how IBM is positioned to win in the competitive AI orchestration space.

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Chairman, President & CEO Arvind Krishna highlighted strong adoption of unique products like WatsonX Code Assistant for Z. For the broader market, he stated that IBM's 'right to win' in orchestration comes from its focus on heterogeneity. He explained that WatsonX Orchestrate is designed to manage not only IBM's agents but also third-party and client-built bespoke agents, differentiating it from platforms focused only on their own ecosystems.

Matthew Swanson asked if the current challenging macro environment is increasing customer interest in IBM's ROI-focused approach to generative AI and hybrid cloud, and whether this makes IBM's product portfolio more defensive.

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CEO Arvind Krishna affirmed this trend, explaining that client conversations have shifted from the underlying technology (GPUs, models) to the application layer that delivers tangible business value. He provided an example of a client focused on achieving 30% savings in back-office finance processes. He believes this focus on ROI for enterprise operations and customer experience is where the market is heading, positioning IBM's offerings favorably in the current climate.

Matthew Swanson asked about the customer feedback that supports IBM's pragmatic, ROI-focused approach to Gen AI, particularly with its smaller, cost-efficient Granite models.

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CEO Arvind Krishna explained that customers were concerned about the massive potential cost of deploying large AI models at enterprise scale. In response, IBM developed smaller, specialized Granite models that are highly efficient for specific enterprise tasks. He stated that offering models that are up to 97% more cost-efficient, with favorable licensing and indemnity, is a 'winning hand' for enterprises looking to deploy AI broadly and affordably.

Matt Swanson asked about the return on investment (ROI) focus for Adobe's new productivity enhancements, seeking clarification on how the increased content creation capabilities translate into measurable business results for enterprises.

Answer

CEO Shantanu Narayen and President of Digital Experience Anil Chakravarthy emphasized Adobe's unique ability to close the loop from campaign creation and execution to commerce, providing analytics on traffic and conversion. They explained that GenStudio helps enterprises reduce content creation costs, increase agility, and improve marketing effectiveness and ROI by enabling more personalized content delivery across diverse digital channels.

Matt Swanson asked about the DSP headwind, the steps Nexxen is taking in Q4 to address it, and if DSP diversity, particularly in the mid-market, is part of their strategy. He also inquired about the progress towards completing the full stack AI vision.

Answer

CEO Ofer Druker outlined Nexxen's strategy, including launching new programmatic TV ad solutions on the VIDAA OS, enhancing the self-service DSP, leveraging the Discovery tool with added mobile and exclusive ACR data, and investing in mobile in-app media. He also detailed the ongoing AI investment, its impact on the Discovery tool and DSP for efficiency, and upcoming SSP AI capabilities.

Matt Swanson followed up on the progress of Nexxen's AI platform, asking about the completion of its full-stack vision and the interoperability of its components.

Answer

Ofer Druker, CEO of Nexxen International, confirmed continued AI investment, highlighting its use in the Discovery tool (doubling seller revenue) and on the DSP for efficient buying. He mentioned upcoming SSP AI capabilities in early next year and a full platform management layer by mid-next year to connect all three elements.

Matthew Swanson of RBC Capital Markets inquired about the long-term vision for the Next.AI product suite and the source of the company's consistent adjusted EBITDA outperformance relative to revenue.

Answer

CEO Ofer Druker detailed the phased rollout of Next.AI, starting with the DSP and data platform, followed by the SSP, with a final integrated agent planned for late 2025 or early 2026. CFO Sagi Niri attributed strong adjusted EBITDA to operational leverage and early efficiencies from internal AI tools, noting that while they are on track to exceed guidance, they may increase investments in H2 to fuel 2026 growth.

Matthew Swanson inquired about Nexxen's go-to-market improvements and plans to build on its momentum in 2025, and also asked for an update on the macroeconomic environment in Q1.

Answer

CEO Ofer Druker attributed recent success to a refined brand message and the strength of Nexxen's end-to-end platform, which is rich in data and CTV capabilities. CFO Sagi Niri added that the business environment has normalized post-election and they do not foresee any unexpected macroeconomic shifts that would alter their 2025 guidance, stating it's 'business as usual'.

Matthew Swanson of RBC Capital Markets asked about the go-to-market improvements driving strong customer and publisher growth, and inquired about the macroeconomic outlook for Q1 and the full year 2025.

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CEO Ofer Druker attributed the success to a simplified brand message post-Amobee integration, the strength of their end-to-end platform, and a data-first approach that resonates with clients. CFO Sagi Niri added that the business environment in early 2025 appears normalized and consistent with their expectations, seeing no significant changes that would affect their full-year guidance.

Matt Swanson asked how Athena and AI will facilitate cross-selling and demonstrate the full value of Zeta's platform, and about the confidence and visibility behind the early 2026 guidance.

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David Steinberg (Co-Founder, Chairman, and CEO, Zeta Global) explained that Athena will be a significant driver for the OneZeta strategy, enabling easy use case expansion through voice commands. Chris Greiner (CFO, Zeta Global) highlighted that the 'two or more use case' count grew over 100% year-over-year. Chris Greiner attributed confidence in 2026 guidance to the installed base's consistent spend expansion, a strong pipeline, and increased revenue under contract.

Matt Swanson questioned how Athena, Zeta's AI-powered UI, will enhance cross-selling opportunities and help customers realize the full value of the OneZeta platform. He also asked about the factors contributing to the confidence and visibility behind the early 2026 organic guidance.

Answer

CEO David Steinberg explained that Athena's voice-activated, conversational interface will remove friction, enabling clients to easily expand into secondary use cases, thus accelerating OneZeta adoption. CFO Chris Greiner added that the two or more use case count grew over 100% year-over-year, showing strong go-to-market momentum. Chris Greiner further attributed 2026 guidance confidence to the installed base's consistent spend expansion (15% annually), a strong pipeline, and increased revenue under the curve from recent signings.

Matthew Swanson asked for more detail on Zeta's success with independent agencies and how the company's improved brand recognition has impacted its go-to-market strategy and pipeline.

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CEO David Steinberg explained that independent agencies partner with Zeta to gain access to cutting-edge AI they cannot build themselves, with Zeta treating them like large enterprise clients. He confirmed Zeta has moved from 'Zeta Who' to 'Why Zeta,' stating that improved brand recognition, evidenced at events like Cannes Lions, is directly contributing to a record pipeline and higher sales conversion rates.

Matthew Swanson of RBC Capital Markets asked if Zeta saw a different mix between landing new customers versus expanding with existing ones during the 2020 and 2022 downturns. He also inquired if the Zeta Economic Index (ZEI) is still a relevant barometer for the business.

Answer

CFO Chris Greiner noted that the mix of growth from new versus existing customers has been consistently about 50/50 since the IPO. CEO David Steinberg added that while the use case mix didn't change, customers often expand into retention and monetization use cases faster in a downturn. Regarding the ZEI, Steinberg said it's a good indicator of the broader economy but not a direct predictor of Zeta's performance, as the company's strong ROI can lead to outperformance during periods of uncertainty.

Matthew Swanson of RBC Capital Markets asked about the macroeconomic assumptions baked into the Q1 and full-year 2025 guidance, customer feedback on the recently integrated LiveIntent acquisition, and the drivers of long-term ARPU expansion outlined in the Zeta 2028 plan.

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CFO Chris Greiner explained that the guidance follows historical practice by incorporating conservatism for the macro environment. CEO David Steinberg added that they are not currently seeing any challenges from clients. Regarding LiveIntent, Steinberg highlighted the successful launch of the synergistic '[Zeta Direct]' product, which is already increasing ROI for marketers and revenue for publishers. He also noted that the company can achieve its long-term ARPU growth targets by continuing its current trajectory without needing to accelerate it.

Matthew Swanson of RBC Capital Markets asked if Zeta experienced a 'political crowding out' effect on non-political ad spend. He also requested more detail on the compounding value of adding LiveIntent's differentiated data sets to the Zeta Data Cloud.

Answer

CEO David Steinberg stated that Zeta did not see any negative impact from political ad crowding. He explained that LiveIntent's data, covering 240 million deterministic individuals and 2,000 premium publishers, adds a highly valuable and validating 'belt and suspenders' layer of signals to the Zeta Data Cloud.

Matthew Swanson of RBC Capital Markets asked if Zeta was seeing any 'crowding out' effect on non-political ad spend due to the election cycle and inquired about the compounding value of adding LiveIntent's differentiated data sets to the Zeta Data Cloud.

Answer

CEO David Steinberg stated that the company was not seeing any political crowding out effect. He explained that LiveIntent's data, including over 240 million deterministic hashed emails, adds a 'belt and suspenders' layer of validation and signal to the Zeta Data Cloud, increasing its scale and accuracy.

Matthew Swanson asked for more details on the nature of the recent DSP platform change, the process for optimizing activity, and how the Q3 guidance balances the DSP headwind versus macroeconomic factors.

Answer

Co-Founder and CEO Rajeev Goel explained that a top DSP shifted clients to a new platform that evaluates inventory differently, requiring PubMatic to re-optimize traffic shaping. He also noted that some SPO partners need to reimplement their strategies on the new platform. CFO Steve Pantelick added that the vast majority of the Q3 outlook is influenced by this DSP change, with the low end of guidance assuming current trends continue and the high end assuming mitigation efforts take hold.

Matthew Swanson asked about the CTV ecosystem's evolution and whether it's still expected to resemble the open internet. He also questioned how the company beat adjusted EBITDA estimates despite a revenue shortfall.

Answer

CEO Rajeev Goel affirmed the CTV market is transitioning from insertion orders to programmatic deals, with a growing opportunity in auction packages and complex yield management, reinforcing the need for sell-side technology. CFO Steven Pantelick attributed the strong adjusted EBITDA performance to a long-term focus on efficiency and the structural benefit of owning and operating their own infrastructure, which provides significant operating leverage.

Matthew Swanson from RBC Capital Markets asked for details on the go-to-market strategy for new products and about the progress of algorithm optimization following a previously disclosed DSP change.

Answer

CEO Rajeev Goel detailed the go-to-market strategy, which focuses on deepening buy-side relationships through a combination of relationship managers and product specialists, citing the Dentsu partnership as an example. CFO Steve Pantelick added that spend from the affected DSP has stabilized and that the core business remains robust, with the financial impact expected to be lapped by mid-2025.

Matthew Swanson of RBC Capital Markets asked if the enhanced usability and AI features of Kokai make the SMB market a more attractive target for The Trade Desk over time, especially with the growth of SMBs in CTV.

Answer

CEO Jeff Green reiterated the company's strategy of focusing first on the largest enterprise advertisers. He explained that mastering the complex needs of these 'fat head' clients provides the foundation to eventually serve mid-size and small businesses by simplifying the platform's tools. While serving SMBs is a long-term ambition, Green stated it is not the current focus, as significant growth opportunities remain with their existing large clients, particularly in the expanding CTV market.

Matthew Swanson asked for thoughts on the competitive landscape, specifically regarding Amazon's DSP and Prime Video ads, and whether Amazon's push increases the need for other publishers to partner with The Trade Desk.

Answer

CEO Jeff Green positioned Amazon's DSP as a biased tool primarily built to sell its own Prime Video inventory, not a true competitor for the open internet. He argued that Amazon's inherent conflicts—competing with advertisers across retail, cloud, and other sectors—make it an untrustworthy partner for objective media buying. Green strongly agreed with the premise that Amazon's strategy reinforces the need for other major content owners (like Disney or Paramount) to partner with an objective, independent platform like The Trade Desk.

Matthew Swanson asked how The Trade Desk helps CMOs, who are under increasing pressure, to understand and trust the new performance metrics generated by the Kokai platform.

Answer

CEO Jeff Green explained that while walled gardens often provide overly simplistic and untrustworthy metrics, TTD's challenge is managing complexity. He stated that TTD works closely with clients to understand what their CFOs require and then tailors measurement to prove incremental growth, rather than imposing a single, self-serving metric. He emphasized that TTD's objectivity is a key strategic advantage, and as CMOs and CFOs align more closely, this data-driven, transparent approach becomes increasingly valuable.

Matthew Swanson from RBC Capital Markets questioned the sustainability of recent margin outperformance from tech stack efficiencies and asked about the primary factors limiting faster demand growth in CTV.

Answer

CFO David Day noted that while some of the margin beat was due to timing on personnel costs, the underlying progress on tech stack cost reduction is sustainable. CEO Michael Barrett identified the continued existence of linear TV and industry-wide challenges in measurement and attribution as the main factors slowing a faster shift of ad dollars to streaming.

Matthew Swanson asked if the drop in demand seen in DV+ during Q4 also affected the CTV business and inquired about the monetization timeline for 2025 growth drivers like AI, ClearLine, and agency marketplaces.

Answer

CFO David Day confirmed they did not see a similar negative impact in CTV, as any effect was masked by strong underlying growth and market share gains. CEO Michael Barrett explained that new initiatives like agency marketplaces take multiple years to fully ramp, citing the GroupM partnership as an example. He advised not to expect a "hockey stick" from these drivers in any single quarter, but rather a steady contribution to overall growth.

Matthew Swanson asked for details on the significant acceleration in social revenue growth from 1% in Q1 to 14% in Q2, and inquired about the potential impact of Meta's increasing use of GenAI on DoubleVerify's business.

Answer

CEO Mark Zagorski attributed the social growth to a balanced mix of existing client expansion and new logo wins, alongside growth from platforms like TikTok and Reddit. He noted that the new Meta pre-bid solution is also driving measurement adoption. Regarding GenAI on Meta, Zagorski stated that DV's value as an independent verifier increases as AI-driven ad tools often lack transparency, creating a need for DV to 'open up that black box' for advertisers.

Matthew Swanson asked about the decision to maintain full-year guidance despite a strong Q1 start, inquiring about the business's resilience during past macroeconomic downturns and whether a tighter ad spend environment could benefit DoubleVerify.

Answer

CEO Mark Zagorski explained that during uncertain times, advertisers focus more on performance and brand protection, which drives demand for DV's solutions. He noted that while no macro impact has been observed yet, the company's activation-based revenue and volume-based model provide resilience. He added that a tighter environment can be a tailwind as clients lean into ROI-driving tools like Scibids and lower market CPMs increase ad volumes.

Matthew Swanson inquired about the strategic rationale for the Rockerbox acquisition and its impact on the customer value proposition. He also asked about the expected ramp-up of other growth drivers like Scibids (Sybase), former Moat client wins, CTV, and new social solutions throughout 2025, and whether this sets up for accelerated growth in 2026.

Answer

CEO Mark Zagorski explained that Rockerbox completes DV's evolution into a platform that verifies, optimizes, and measures performance, serving as a key competitive differentiator. CFO Nicola Allais confirmed that 2025 headwinds are client-specific while opportunities in social activation, Moat client upsells, and Rockerbox integration are long-term tailwinds expected to contribute more significantly beyond 2025.

Matthew Swanson asked about the long-term pricing implications of a low-cost competitor like Oracle exiting the market and questioned the durability of the high adjusted EBITDA margins if revenue growth reaccelerates.

Answer

CEO Mark Zagorski reiterated the 'land and expand' strategy for former Oracle clients, noting they were aggressive on pricing to win the deals and will focus on upselling to higher-value solutions over time. CFO Nicola Allais addressed margins, highlighting the business's inherent scalability with flat G&A costs. She stated that while R&D investment will continue, the company's scale naturally benefits the bottom line, suggesting the strong margin profile is sustainable.

Matthew Swanson asked about potential logical adjacencies and future platform expansions, such as a "TeamSpace phase two," as enterprise customers increase their engagement. He also questioned if supply chain resiliency is the primary theme driving Xometry's outperformance amid tariff and PMI uncertainty.

Answer

CEO Randy Altschuler stated the strategy is to increase wallet share by expanding the scope of what can be auto-quoted, covering more technologies, materials, and fulfillment options to make Xometry a one-stop shop. He clarified that the company's durable growth is driven by a long-term secular shift to digital marketplaces, not a short-term pull-forward, although market noise does raise awareness of their resilient model.

On behalf of Matt Swanson, an analyst asked for more detail on customer conversations around domestic sourcing and the platform's trajectory to become a permanent part of onshoring strategies.

Answer

CEO Randy Altschuler stated that customers, including very large companies, are focused on finding new domestic capacity and building a broader, more resilient supply base. He explained that conversations center on using Xometry's distributed marketplace to find the best suppliers irrespective of geography and to mitigate risk through multi-sourcing.

Matthew Swanson inquired whether enterprise customers are being proactive or reactive to the tariff situation and if the acceleration in Teamspace adoption is linked to the complexity of the current environment.

Answer

CEO Randolph Altschuler stated that enterprise customers are being proactive in their focus on risk mitigation, which makes Xometry's flexible, asset-light model highly appealing. He attributed the acceleration of Teamspace adoption primarily to growing awareness and its utility in managing larger, more complex assembly orders, rather than directly to the tariff landscape.

Matthew Swanson inquired about the early adoption and usage trends of the Teamspace product and asked if the company is seeing any impact from generative AI in terms of new design creation from buyers.

Answer

CEO Randy Altschuler described Teamspace as a tool for larger customers to manage complex, multi-part projects, noting its great adoption is reflected in the record growth of accounts spending over $50,000. Executive Shawn Milne added that over 4,000 teams have been created. Regarding generative AI for design, Altschuler stated that while the company is deeply invested in AI from all angles, there was nothing specific to announce at this time.

Matthew Swanson of RBC Capital Markets asked what the company learned during its period of high efficiency and how that will shape investment priorities in 2026. He also inquired whether the increase in multi-product adoption is being driven more by new product fit or by go-to-market investments.

Answer

Chairman & CEO Joe Walsh explained that while product investment was always protected, the company pulled back on sales channel development and marketing. He expects to reinvest in these areas in 2026 to move to an offensive footing. Walsh attributed the multi-product adoption success to modernizing the go-to-market strategy with data science and targeted sales plays, a process he described as being in the 'first inning' with significant room to grow.

Matthew Swanson asked how Thryv ensures customers realize the compounding value of the platform as cross-selling increases. He also inquired if the current 'Goldilocks' macro environment alters the go-to-market motion, such as emphasizing ROI.

Answer

CEO Joe Walsh described customer experience as a top investment area, utilizing a mix of high-touch and tech-touch outreach to ensure success post-implementation. He confirmed the go-to-market motion adapts to the environment, using a 'French fries vs. broccoli' analogy. Currently, with economic trepidation, customers are more interested in growth products ('French fries') than operational tools ('broccoli'), making them highly receptive to marketing-focused conversations.

On behalf of Matt Swanson, Mike Richards of RBC Capital Markets asked about the stability of the business environment, the potential for a December budget flush, and the growth drivers for the cybersecurity segment relative to internal goals.

Answer

Anil Singhal, President and CEO, confirmed that the company's guidance range accounts for a potential Q3 budget flush from large customers. He also explained that a pivot in cybersecurity positioning around analytics and new use cases for the OCI solution in the DDoS space is expected to gain traction over the next 6 to 12 months.