Nick Jones

Nick Jones inquired about Zillow's rental trends, specifically product-market fit and future opportunities in the multifamily segment, and asked for insights into Zillow's vertical AI strategy and its potential impact.

Answer

CFO Jeremy Hofmann and CEO Jeremy Wacksman explained that rental growth is driven by Zillow's unique strategy of organizing all supply types, which attracts a large audience seeking digital transaction tools. They highlighted high ROI for multifamily advertisers and confidence in reaching the billion-dollar revenue target. Regarding AI, they described it as an ingredient for Zillow's vertical integration, leveraging deep industry expertise, proprietary assets, and data to enhance the transaction experience for professionals and consumers.

Nick Jones asked about Zillow's rental trends, specifically the product-market fit and future opportunities within the multifamily segment, and the company's strategic positioning for a vertically integrated AI future, including its partnership with OpenAI.

Answer

CFO Jeremy Hofmann explained that Zillow's rental growth is driven by its strategy to organize all types of supply, attracting a large audience, and offering digital transaction tools. He highlighted the high ROI for multifamily advertisers. Regarding AI, Hofmann stated that residential real estate's unique, regulated, and local nature makes AI an ingredient to enhance Zillow's vertical integration, leveraging its industry expertise and proprietary data.

Nick Jones, on behalf of Patrick Walravens, asked about the key characteristics that will enable a software company to successfully navigate the AI transition, drawing a parallel to the on-premise to SaaS transition where many companies did not survive.

Answer

President and CEO Steve McMillan framed the transition as Teradata 1.0 (on-premise) to 2.0 (cloud, achieving over $700 million ARR in cloud) and now to Teradata 3.0, focusing on an autonomous AI and knowledge platform. He emphasized that Teradata is not a SaaS company but rather the data layer for AI, serving as a system of intelligence or enterprise memory. He believes their capabilities, built on delivering value on top of the data platform, make them highly relevant in the agentic AI space, driving significant market opportunity and accelerating growth. CFO John Ederer stated that the main drivers for operating margin expansion in 2026 include continued work on gross margins, strategic investment in product R&D, and ongoing efficiency gains across G&A and sales and marketing.

Nick Jones asked about the key characteristics of a software company that will succeed in the AI transition, drawing parallels to the historical transition from on-premise to SaaS.

Answer

Steve McMillan, President and CEO of Teradata, framed the transition as Teradata 2.0 (cloud) to Teradata 3.0 (autonomous AI and knowledge platform). He stated that Teradata is the 'data layer for AI,' or 'system intelligence/enterprise memory,' and its capabilities built on top of its data platform make it highly relevant in the Agentic AI space, driving significant market opportunity. John Ederer, CFO of Teradata, cited continued work on gross margins, finding efficiencies across G&A and sales & marketing lines, and investing in product R&D as the main drivers for operating margin expansion in 2026.

Represented by Luke, Nick Jones asked for the high-level strategic priorities at Care.com aimed at accelerating growth.

Answer

Christopher Halpin, an IAC executive, reiterated the strategic priorities for Care.com. On the consumer side, the focus is on improving the product, optimizing pricing and packaging, and then ramping up marketing. For the enterprise business, priorities are driving utilization of the benefit among employees, enhancing the product, and acquiring new corporate clients. He noted the business benefits from strong secular demand for care services.

Nick Jones asked about the role of AI, particularly agent-like AI, in improving the questioning and matching processes at both Angi and Care.com going forward.

Answer

Joseph Levin, CEO of IAC, responded that a conversational UI powered by AI would be ideal for Angi to gather better job information and improve matching. An executive added that AI will enhance matching across marketplaces like Angi and Care.com where they have proprietary data, and will also improve functions like customer onboarding and service requests across the portfolio.

Asked about the extent of further potential cost-cutting and whether market supply growth is fundamentally worsening churn by depressing owner revenue.

Answer

The company will not provide a guide but reiterated that they will prioritize adjusted EBITDA profitability. Regarding churn, they redirected the cause back to their own execution, stating they are focused on improving owner communication and experience, which they believe is the key driver, despite not yet seeing it impact the overall churn number.

The analyst inquired about the future of the property portfolio size, the pace of live unit growth, and the health of the balance sheet.

Answer

Executives stated the focus is on achieving cash flow positivity by converting the existing contracted pipeline, which represents nearly 50% embedded growth, rather than signing many new properties. They are happy with the current 31% YoY live unit growth. Regarding the balance sheet, they feel comfortable with their healthy cash cushion and the strong positive trajectory for free cash flow.