Managing Director and Senior Equity Research Analyst at Barclays Capital
Saket Kalia is a Managing Director and Senior Equity Research Analyst at Barclays Capital, specializing in technology sector research with a focus on software companies such as Autodesk, Okta, and Check Point Software Technologies. With a coverage universe spanning 54 stocks, Kalia has achieved a success rate of over 62% on TipRanks, an average price target met ratio of 79.6%, and has delivered average returns of 13.1% per recommendation, including notable top-performing calls on OKTA. He began his career as Vice President at JPMorgan Securities, joining Barclays as Director in 2014 and advancing to Managing Director in 2022. An alumnus of NYU Stern School of Business, Kalia holds relevant securities licenses and is FINRA-registered, recognized for his quantitative acumen and breadth of coverage in the industry.
Saket Kalia asked about the relative difference in pricing per identity for machines versus humans and how customers are willing to pay.
President Matt Mills stated machine identities are priced about 30%-35% accretive to workforce, and autonomous agents are priced similarly to workforce.
Asked about the expected shape of net new ARR for the year compared to prior years and for a deeper breakdown of the 115% NRR components, particularly the contribution from migrations.
The company sees nothing materially different in its ARR acquisition, noting its consistency. The 115% NRR is driven by an almost even distribution among migrations, quantity upsells, cross-sells of new products, and suite upgrades. Regarding the shape of net new ARR, the company is typically a 'second-half company' and expects a similar pattern this year.
Saket Kalia from Barclays asked for details on SailPoint's U.S. federal business, including its size and the outlook for the upcoming year.
CFO Brian Carolan clarified that the total public sector business is 12-14% of revenue, with the U.S. federal government comprising less than half of that. He highlighted that the business is spread across many agencies with an average customer tenure of over five years. CEO Mark McClain added that they are FedRAMP certified and are not currently seeing any negative indicators.
Saket Kalia from Barclays Capital asked about the expected shape of net new ARR throughout the year and requested a deeper breakdown of the 115% NRR, particularly the contribution from migrations.
CFO Brian Carolan noted consistent new customer acquisition and reiterated the even distribution of NRR drivers: migrations, upsells, cross-sells of new modules (which more than doubled YoY), and suite upgrades. He mentioned that the company is typically a "back-half company" for net new ARR growth.
Saket Kalia of Barclays Capital inquired about Autodesk's appetite for transformative M&A and the key assumptions behind the newly announced fiscal 2029 operating margin target of 41%.
President and CEO Andrew Anagnost reiterated the company's capital allocation strategy, prioritizing organic investment, followed by tech tuck-ins and targeted acquisitions, and then share repurchases, ruling out tens-of-billions-dollar deals. EVP & CFO Janesh Moorjani explained the margin target is designed to be achievable under various growth scenarios, with sales and marketing efficiencies being the largest contributor, and noted that progress toward the goal will not be linear.
Saket Kalia inquired about the stability of underlying business momentum, the evolution of customer conversations amid macroeconomic uncertainty, and the drivers behind the strong Q1 margin performance.
CEO Andrew Anagnost confirmed that while customers are flagging uncertainty for the second half of the year, current business indicators like construction backlogs and user activity remain strong. CFO Janesh Moorjani added that Q1 margin strength was driven by revenue outperformance and ongoing expense discipline, and the company's sales and marketing optimization plan is on track.
Saket Kalia asked about the rationale for moving away from the 10-15% medium-term growth target, questioning what will drive new business growth higher over time. He also inquired about the company's long-term margin potential and how the recent restructuring fits into that strategy.
CEO Andrew Anagnost explained that past new business growth was impacted by internal go-to-market changes and macro uncertainty. He stated that future growth will be driven by enhancing channel partner productivity and investing in high-growth 'Make' businesses like Fusion and Construction. CFO Janesh Moorjani added that the restructuring is a planned phase of their GTM evolution, which will drive meaningful underlying margin expansion in FY26 and help achieve best-in-class GAAP margins long-term.
Saket Kalia asked for management's high-level thoughts on the recent letters from activist investor Starboard Value and for a deeper dive into the Autodesk Construction Cloud's performance and competitive standing.
CEO Andrew Anagnost stated that Autodesk is aligned with Starboard on creating more shareholder value, highlighting the company's strong performance despite macro headwinds. He pointed to the successful transition to annual billing and the new transaction model as key drivers of future efficiency and margin growth, noting they are a year ahead of schedule on non-GAAP margin targets on an apples-to-apples basis. Regarding construction, he emphasized that Autodesk is maintaining momentum in a tough market due to a large project backlog, a strong design-to-construction value proposition, success in the mid-market, and robust international growth.
Saket Kalia of Barclays Capital asked about the retention of customers who received Customer Care Packages (CCP) post-outage and how helpful the Falcon Flex model can be in converting these packages into renewals.
Founder & CEO George Kurtz expressed confidence in renewals, citing a historical module renewal rate of over 95% once customers see the value and integration. He noted that much of the CCP program was delivered via Falcon Flex, which rapidly seeded the market with the new licensing model. This now provides an opportunity to "reflex" those customers as their initial packages are utilized, giving him confidence in the renewal cycle for Q3 and Q4.
Saket Kalia asked for more detail on the Falcon Flex program, inquiring which products are benefiting most from its adoption and how the sales motion is evolving.
CEO George Kurtz described Falcon Flex as a "game changer" for platform adoption, highlighting Next-Gen SIEM, cloud, and identity as primary beneficiaries. He noted that the sales motion is shifting from selling individual modules to focusing on business outcomes and demand planning with customers, which accelerates license consumption and leads to faster "reflex" deals where customers repurchase credits.
Saket Kalia inquired about the value proposition of the Falcon Flex subscription model, asking how it benefits customers and for examples of it driving increased spending.
CEO George Kurtz explained that Falcon Flex originated from customer demand for easier consolidation. He stated it provides access to the entire product catalog, allowing customers to add modules without new procurement cycles. Kurtz provided an example of a transportation company that consolidated three vendors, increasing its ARR by 67%, and noted that customers are generally consuming their Flex credits ahead of schedule.
Saket Kalia inquired about the key factors influencing cybersecurity spending for the upcoming year, considering macroeconomic elements like interest rates and federal policies.
CEO George Kurtz explained that the security threat landscape is intensifying, compelling customers to seek best-in-class platforms. He highlighted two persistent trends: the desire to consolidate vendors to close protection gaps and the need to reduce operational costs. Kurtz stated these factors create a favorable environment for CrowdStrike, as customers will continue to invest in top-tier technologies to address both security and budgetary pressures.
Saket Kalia asked for more details on the Falcon Flex program, noting its pre-outage existence and questioning how it is helping customer conversations and driving better security outcomes post-outage.
CEO George Kurtz explained that Falcon Flex, born from customer demand for easier consumption, is now a key part of the customer commitment package. It allows CrowdStrike to offer modules, extended time, and other benefits, which solves business problems for customers and drives long-term platform adoption for CrowdStrike.
Saket Kalia of Barclays Capital asked how quickly Veeva can re-engage customers with its Nitro product now that the IQVIA data restriction is removed, and what kind of revenue multiplier this could represent for CRM deals.
CEO Peter Gassner expressed his excitement, stating the team must now 'relearn the motion' of selling Nitro without restrictions, so the impact won't be overnight. He emphasized that its primary significance is making the entire commercial suite more complete and attractive, rather than being just a standalone revenue driver. He shared an anecdote of a highly productive joint call with IQVIA and a top-10 pharma client, a first for the company.
Saket Kalia of Barclays Capital asked for a deeper dive into the drivers of strength in the Crossix business, which seems to be bucking macro trends. He also inquired about the factors behind the increased full-year billings guidance, beyond foreign exchange.
CEO Peter Gassner attributed Crossix's strength to a broadening product offering, the clear and fast ROI for customers optimizing digital ad spend, and a more strategic sales approach. CFO Brian Van Wagener explained the higher billings guide was driven by the FX tailwind and the Q1 subscription revenue outperformance flowing through, with minimal impact from timing or duration.
Saket Kalia inquired which other Development Cloud products could see pull-through from the success in eTMF and CTMS, and asked about the contribution of CDMS/EDC to fiscal '26 billings from ramping contracts.
CEO Peter Gassner explained that eTMF and CTMS success paves the way for the broader clinical suite, including Study Training, Site Connect, Payments, EDC, RTSM, and eCOA. CFO Brian Van Wagener stated that ramps from the nine top-20 EDC customers are steadily contributing to billings and are factored into FY '26 guidance, but noted this is a broad trend across R&D products, not a single spike.
Saket Kalia inquired about the key benefits and future roadmap of Vault CRM being communicated to customers to incentivize migration, and also asked about the contribution of Clinical Data Management System (CDMS) ramps to the strong Q4 billings outlook.
CEO Peter Gassner explained that Vault CRM's main benefits are continuous feature innovation and providing a unified platform for sales, medical, and marketing. He noted smaller biotechs can adopt it quickly, while larger firms see it as valuable future optionality. CFO Brian Van Wagener added that while CDMS ramps are proceeding as expected, overall billings growth is driven by a broad base of products rather than any single one.
Saket Kalia inquired about the progress of Vault CDMS ramps with top 20 pharma customers, the pipeline for future market share gains, and the growth profile of the non-CRM portion of the commercial business.
CEO Peter Gassner stated that CDMS ramps and value realization are proceeding well, with a healthy enterprise pipeline, though he noted a desire for more progress with large CROs. Interim CFO Tim Cabral explained that the non-CRM portion of the commercial business, which constitutes about 50% of the total, is growing 'much faster' than the core CRM suite.
Saket Kalia of Barclays Capital asked for details on Network Security ARR, focusing on why Palo Alto Networks is gaining share in software firewalls and the lifetime value comparison to hardware appliances.
CPO Lee Klarich explained that their success stems from dedicated innovation for cloud-native environments, not just porting hardware features. CEO Nikesh Arora added that the rise of multi-cloud adoption necessitates a single-pane-of-glass solution, which Palo Alto provides natively. CFO Dipak Golechha noted that while software firewall revenue is initially similar to hardware, the lifetime value for SASE is about 2.5 times larger than a typical hardware firewall.
Saket Kalia inquired about the opportunity to upgrade the on-premise QRadar customer base to XSIAM and its potential ARR contribution towards the company's $15 billion target.
CEO Nikesh Arora described XSIAM as a game-changer transforming the legacy SIEM market, noting the on-prem to cloud transition is a significant opportunity. He highlighted large XSIAM deals, an average ARR per customer over $1 million, and its role as a foundational data platform that enables new products like advanced email security, creating new addressable markets.
Saket Kalia inquired about the drivers behind Palo Alto Networks' improved profitability and the specific factors contributing to its strong free cash flow, such as deferred payments.
CEO Nikesh Arora attributed the profitability to achieving scale, noting that large platformization deals are more efficient. He highlighted the potential for future margin expansion from AI-driven efficiencies. CFO Dipak Golechha added that the growing balance of deferred payments provides significant visibility into future cash flow, and the company is well along its transition, giving them confidence in their multi-year outlook.
Saket Kalia asked about the long-term margin implications of the platformization strategy, considering these deals are larger and have higher lifetime value.
Chairman and CEO Nikesh Arora detailed three primary drivers for future margin expansion: 1) a lower cost of sales from larger, consolidated deals, 2) favorable Cost of Goods Sold (COGS) due to scaled agreements with major cloud providers, and 3) increased efficiency from customer support automation powered by AI copilots.
Saket Kalia of Barclays PLC asked about the long-term revenue opportunity for the Termsheet acquisition, given its purchase price relative to its initial ARR. He also inquired about the expected shape of net new ARR throughout fiscal 2026.
CEO John Hall positioned Termsheet as a strategic acquisition to build out a 'whole product' for the significant Real Assets market, extending functionality into asset management and adding a strong AI-focused team. CFO David Morton addressed ARR seasonality, noting that the June (Q4) and December (Q2) quarters are typically stronger due to the timing of client year-ends and renewal cycles.
Saket Kalia questioned the drivers behind the significant decline in on-premise ARR, asking about Intapp's strategy for conversions and the economic uplift from such migrations.
CEO John Hall explained that an official program, led by an executive, is now in place to facilitate cloud migrations. He noted that the appeal of new AI capabilities and the ability for clients to use Microsoft Azure Consumption Commitment (MACC) agreements are accelerating the transition. CFO David Morton quantified the financial benefit, stating that Intapp has been realizing a nominal 20% upside on conversions through a combination of contract compliance, upsell, and cross-sell opportunities.
Saket Kalia asked about the progress of migrating on-premise customers to the cloud and whether the year-over-year decline in net new ARR was related to deal timing from a strong Q4.
CEO John Hall stated that Intapp is now more actively encouraging cloud migrations in FY25, driven by customer demand for GenAI features and cloud security, supported by a new dedicated program. CFO David Morton clarified that the net new ARR dynamic was not due to deal pull-forwards but rather the sales team realignment, and noted the pipeline for the rest of the year is the strongest it has ever been.
Saket Kalia of Barclays Capital asked for early observations on the cross-sell motion between MoneyLion's marketplace customers and Gen's core Norton and LifeLock subscription offerings.
CEO Vincent Pilette framed the opportunity as larger than a simple cross-sell. He described it as building a future trustable, consumer-empowered financial platform. By combining MoneyLion's ability to deliver personalized financial products with Gen's established brand trust and security capabilities, the company is creating a uniquely positioned offering to address the full spectrum of a customer's financial wellness journey, which he believes is the future of how banking will be delivered.
Saket Kalia of Barclays Capital asked for early observations on the cross-sell dynamics between MoneyLion's customer base and Gen's traditional Norton and LifeLock subscription offerings.
CEO Vincent Pilette framed the opportunity less as a simple cross-sell and more as building the future of banking on a trusted, consumer-empowered platform. He emphasized that Gen brings the critical elements of brand recognition, trust, and security to MoneyLion's personalized financial product delivery, creating a powerful combination to address the full financial wellness journey of a customer.
Saket Kalia inquired how the MoneyLion acquisition and its large customer network might alter the type of subscribers Gen can target and how this synergy could affect the customer acquisition cost (CAC) equation.
CEO Vincent Pilette detailed a strategy to first cross-sell MoneyLion's features to Gen's 65 million customers and then apply Gen's subscription expertise to the MoneyLion business. CFO Natalie Derse expressed excitement about the opportunity, stating that combining the customer bases creates significant efficiencies, noting "volume is king," which should improve CAC without requiring additional investment.
Saket Kalia from Barclays asked about the impact of foreign exchange on the full-year revenue guidance and inquired about the current adoption rate of Norton 360 memberships across the customer base.
CFO Natalie Derse stated that the FX impact on the full-year guide was 'relatively immaterial.' CEO Vincent Pilette elaborated on product evolution, noting that the introduction of anti-scam tools like Genie encourages membership adoption. He stated that Norton 360 adoption is around 50% on desktop and slightly lower at 45-46% when including mobile, with continued progress towards a majority of customers on a membership structure.
Saket Kalia of Barclays asked about the company's strategy for balancing share buybacks and debt paydown in the near term, and inquired about trends in first-year customer retention rates.
CFO Natalie Derse explained that the capital allocation strategy remains consistent, balancing debt paydown and buybacks based on macroeconomic factors like the cost of debt, noting Q2 is a high cash-use quarter. She also stated that first-year retention rates are 'very consistent to up' and higher than in the past, driven by the innovative product roadmap and competitive value proposition.
Inquired about the competitive landscape for new customers and the pricing of the GLP-1 CareTrack relative to other programs and its potential impact on average revenue per user (ARPU).
The company competes on its GLP-1 program's strong outcomes (especially post-discontinuation weight maintenance) and its core multi-condition platform's strengths (human-led care, clinical evidence, ROI). Most deals are in new territory ("white space"), but incumbent takeovers are increasing. The GLP-1 CareTrack is priced at a premium to prevention but below diabetes/hypertension and is expected to lift blended ARPU over time as it grows.
Saket Kalia of Barclays asked for clarity on the cadence of the firewall upgrade cycle and the mix shift within services revenue between attached subscriptions and newer offerings like SASE and SecOps.
CFO Christiane Ohlgart noted it's difficult to predict the exact endpoint for the refresh cycle in 2025 but expects to progress through it quickly. Regarding services, she confirmed that non-attached subscriptions are growing faster. CEO Ken Xie added that even attached services have a higher value now due to more functions like SD-WAN and SASE being included, alongside new standalone cloud services.
Saket Kalia asked if Fortinet observed any changes in channel partner behavior, such as early purchasing ahead of potential tariffs, and also inquired about which solutions FortiSASE is typically replacing in customer environments.
CAO and incoming CFO Christiane Ohlgart noted that while partners asked about potential price increases, there was no specific acceleration of deals. On the second point, Founder, Chairman, and CEO Ken Xie explained that FortiSASE is replacing both traditional VPNs and competing SASE solutions, driven by its single OS integration, sovereign SASE capabilities, and cost-effective global infrastructure.
Saket Kalia asked two housekeeping questions: the size of Latin America and Canada as a percentage of billings, and the breakdown of the 2025 guidance between organic and inorganic growth.
CAO Christiane Ohlgart responded that Latin America and Canada combined represent about 15% of the total business. She also stated that of the total guided growth for 2025, approximately one percentage point is expected to be inorganic.
Saket Kalia asked for clarification on the SaaS solutions ARR growth number, specifically if it was organic, and which solutions were driving it. He also asked about a onetime benefit to profitability and its sustainability.
An unnamed executive confirmed the ARR growth was organic and driven by solutions like FortiEDR, FortiClient, and FortiNDR. CFO Keith Jensen explained the onetime benefit was a $15 million gain from renegotiating supplier contractual commitments. He stated that excluding this, the operating margin would have been 35.1%, and affirmed that the company feels 'really good about the profitability of the business' and has ample room to invest in growth.
Saket Kalia asked about the dynamics of the health plan and PBM channel, specifically what Hinge Health is hearing from them, and inquired about the new utilization-based pricing model's structure and potential impact.
Co-Founder & CEO Daniel Perez explained that health plan partners select Hinge Health after a rigorous 18-24 month evaluation, valuing the company's proven ROI, outcomes, and member experience. He emphasized that this trust is crucial as Hinge Health develops new products. CFO James Budge and CEO Daniel Perez addressed the pricing model, noting that about 40% of clients have adopted it. They stated it is currently at price parity with the old model but creates future upside by aligning Hinge Health's success with member engagement and outcomes.
Saket Kalia requested deeper insight into the comment that future Rule of 40 improvement would be driven more by margin expansion. He also asked about the potential for alternative pricing models beyond construction volume and their relevance in customer conversations.
CFO Howard Fu explained that the focus on profitability for Rule of 40 improvement in fiscal 2026 stems from a conservative stance on revenue acceleration and the leverage gained from GTM investments made in 2025. CEO Craig Courtemanche noted that Procore already uses flexible pricing models (e.g., per-seat) and remains open to others, though the current volume-based model aligns well with most customers' businesses.
Saket Kalia asked for details on the drivers behind the longer contract durations impacting CRPO and inquired about the early signs of success from the international go-to-market transition.
CFO Howard Fu explained that the increase in contract duration, from approximately 20 to 21.5 months, was driven by customers adopting flexible pooled models, which increased the proportion of ARR from multi-year deals. He expects this dynamic to normalize by Q4. CEO Craig Courtemanche added that the new international GM model is creating a more tailored go-to-market approach, with customers appreciating new technical resources, leading to positive signs in adoption and engagement.
Saket Kalia of Barclays asked about the key differentiators for Procore Pay and the timing of the early renewals that impacted Q4's cRPO.
CEO Tooey Courtemanche stated that Procore Pay's primary differentiator is its native integration within the unified platform, streamlining the entire process from invoice creation to payment. CFO Howard Fu confirmed that most early renewals would have likely occurred in Q1 2025 but framed the Q4 performance as part of a multi-year strategy to optimize top and bottom-line growth.
Saket Kalia of Barclays asked for details on the number of salespeople hired during the go-to-market transition and the strategy to minimize disruption. He also inquired about the market reception for Procore Pay.
Executive Craig Courtemanche stated that a 'couple of hundred net new' go-to-market resources are being added and that managing disruption relies on clear communication and planning. Executive Howard Fu added that balancing Q4 delivery with future planning is key. Regarding Procore Pay, Courtemanche described it as a 'very big bright spot' with continued enthusiasm, though Fu noted its financial impact remains minimal for now.
Saket Kalia of Barclays Capital questioned the slight narrowing of the full-year SaaS revenue growth guidance despite strong Q2 bookings. He also asked for a reminder of the long-term SaaS growth model from the company's Analyst Day.
EVP & CFO Brian Miller explained the guidance range was narrowed simply due to increased visibility halfway through the year on the timing of revenue recognition from bookings and flips, not a fundamental change. He reiterated the long-term model targets a high-teens SaaS CAGR through 2030, with growth in the low-twenties through the 'peak flip' period around 2025 before moderating.
Saket Kalia of Barclays asked for a more detailed breakdown of the SaaS bookings performance, requesting estimates for the value of deals pulled forward into Q4 and the value of deals awarded but not yet contracted in Q1.
CFO Brian Miller estimated that approximately $10 million in bookings were pulled forward into Q4 2024. While not disclosing specific figures for awarded-but-unsigned deals, he noted a number of them, particularly in the Courts & Justice segment, support the outlook for a Q2 rebound. CEO Lynn Moore added that some expected Q1 awards are also still pending.
Saket Kalia asked for more detail on the potential impact of the new Department of Government Efficiency (DOGE), including how much federal funding state and local governments receive and what customers are saying about it.
CFO Brian Miller explained that local and county governments receive very little direct federal funding, with their budgets primarily funded by local taxes. CEO H. Moore reiterated that Tyler views DOGE as an opportunity, not a risk, as it will likely increase demand for technology that improves efficiency. He confirmed that clients are not expressing concern or indicating any pause in spending.
Saket Kalia inquired about how the intensity of professional services is changing as Tyler becomes more of a SaaS company and the corresponding impact this shift has on profit margins over time.
CEO Lynn Moore explained that services margins have improved due to management focus and a more stable labor market. She expects services revenue to be flat or decline as a percentage of total revenue, driven by implementation efficiencies and a strategic shift away from heavy customization. CFO Brian Miller added that this mix shift, combined with better margins on services performed, positively impacts overall company profitability.
Saket Kalia posed a philosophical question about commercial optimization, asking how management thinks about using pricing as a growth lever going forward, given it hasn't been a primary focus in the past.
President and CEO Neil Barua and Chief Revenue Officer Robert Dahdah both addressed this. Mr. Barua stated that the leadership team is now examining commercial levers with unprecedented rigor, but emphasized that any changes must be linked to delivering new value and innovation to customers. Mr. Dahdah added that this represents a new motion for PTC's sales teams, who are being trained to have these value-based conversations, a practice their customers are already familiar with from other vendors.
Saket Kalia asked about the key factors influencing the $1 billion free cash flow target for next year, especially in light of the more prudent ARR outlook for the current year.
CFO Kristian Talvitie deemed it premature to provide specifics, noting they must first complete the current year and the annual planning process, while also assessing variables like interest rates and tax policy. CEO Neil Barua added that the success of the go-to-market transformation and the macro environment are also critical factors. Barua highlighted that delivering strong free cash flow with the revised 7-9% ARR guidance demonstrates the company's strong execution culture.
Saket Kalia asked about the growth contributions from PTC's five strategic pillars, questioning the additive impact of high-growth areas and the drag from non-pillar businesses.
CEO Neil Barua corrected the premise by stating that PLM itself is a primary growth driver with significant expansion potential, especially when combined with ALM. He explained that technologies from non-pillar businesses, such as ThingWorx, are being repurposed to enhance core offerings, thereby augmenting the growth of strategic pillars rather than acting as a simple drag.
Saket Kalia of Barclays asked for insights on the Western European market, specifically what management is hearing from customers about their willingness to spend and the demand outlook for fiscal 2025.
CEO Neil Barua acknowledged that some Q4 deals in Western Europe, particularly in the German auto sector, were delayed or reduced in size due to cost pressures. However, he views this as a long-term catalyst, forcing customers to adopt technologies like Codebeamer and Windchill to remain competitive. He expressed bullishness on the underlying need for PTC's products but remains cautious on the timing of spending.
Saket Kalia of Barclays Capital asked about the competitive landscape in exposure management and how the Tenable One platform differentiates the company from traditional vulnerability management vendors and other point solution providers.
Co-CEO Mark Thurmond identified Tenable One as the company's primary differentiator, highlighting its hybrid capabilities (on-prem and cloud) and its ability to consolidate multiple asset types like VM, cloud, OT, and identity. He noted that this platform approach led to some of the company's highest-ever win rates in the quarter and is being validated by third-party analysts like Forrester and IDC.
Saket Kalia asked for an update on the competitive environment in vulnerability management (VM), particularly against established players and endpoint security vendors.
Co-CEO Stephen Vintz stated that Q1 was an extremely strong quarter competitively, with historically high win rates against pure-play VM vendors like Qualys and Rapid7, citing 7-figure replacement deals. He added that there have been no massive shifts in competitive dynamics against endpoint players like CrowdStrike or Microsoft, and Tenable's win rates remain high.
Saket Kalia asked about Tenable's competitive performance in the Vulnerability Management (VM) market and its potential to extend its leadership in 2025.
Co-CEO and CFO Stephen Vintz stated that VM growth was better than expected, contributing to the CCB beat, but the outlook remains in the mid-single-digit range. Co-CEO and COO Mark Thurmond added that Q4 saw some of the highest win rates against competitors, with significant competitive displacements driven by the differentiation of the Tenable One platform.
Saket Kalia from Barclays inquired about the growth rate of Tenable's exposure management solutions and the strategic direction of its cloud security portfolio.
CFO Steve Vintz clarified that exposure solutions constitute over 50% of new sales and non-VM licensed assets are growing at 30%. CEO Amit Yoran added that Tenable's full CNAPP offering, including new AI and data security capabilities, is winning against market leaders without aggressive discounting.
Saket Kalia of Barclays Capital asked about the key reasons Check Point wins SASE deals and requested any available details on the scale or run rate of the SASE business.
CEO Nadav Zafrir explained that most SASE wins are currently cross-sells to existing Quantum firewall customers. The key 'why we win' is the ability to provide a holistic connectivity fabric where Check Point's advanced inspection and AI engines are embedded into the SASE solution, which competitors cannot match. No specific run-rate was provided.
Saket Kalia asked how Check Point views its competitive position or 'swim lane' in the SASE market against established pure-play vendors and other network firewall providers.
CEO Nadav Zafrir stated that Check Point's focus is on large, complex enterprises with hybrid environments. He believes the company's unique hybrid SASE architecture (combining on-prem and cloud) is a key differentiator that offers superior security and flexibility compared to the cloud-only models of most incumbents.
Saket Kalia asked how Check Point will differentiate its SASE solution in an increasingly mainstream market and requested the current size of the SASE or overall Infinity platform business.
CEO Nadav Zafrir cited the unique 'hybrid mesh' architecture of its SASE solution as a key differentiator, offering greater flexibility, prevention, and cost-effectiveness. CFO Roei Golan sized the Infinity platform at approximately 15% of revenue, noting that SASE is still small but grew nicely in 2024 and is expected to accelerate.
Saket Kalia of Barclays asked about the growth dynamic between the fast-growing Infinity business (15% of revenue) and the other 85% of the business, questioning if both can grow together or if Infinity's growth comes at the expense of the rest.
CFO Roei Golan and CEO Gil Shwed asserted that both segments can grow together, noting that products like Harmony E-mail see strong standalone growth outside of Infinity. Shwed added that Infinity customers, on average, grow 20% faster than non-Infinity customers, demonstrating that the platform drives incremental value and growth rather than just converting existing contracts.
Saket Kalia inquired about Varonis's competitive positioning against privately held DSPM vendors like Cyera, how the company secures wins, and the impact of its SaaS transition on the competitive landscape.
CEO Yaki Faitelson explained that while DSPM vendors generate market awareness, they offer incomplete solutions focused on discovery, often with sampling, and lack remediation or threat detection. He stated that Varonis provides a complete, automated platform and wins by conducting production-scale Proof of Concepts (POCs), which he claims competitors often avoid.
Saket Kalia of Barclays inquired about the timing of the trough in operating margins as the company accelerates its SaaS transition.
CFO and COO Guy Melamed stated that while the P&L gets 'messy' during the transition, he believes the trough in operating margins will occur this year (2025). He emphasized that investors should focus on the 'North Stars' of ARR, free cash flow, and ARR contribution margin as the leading indicators of business health during this period.
Saket Kalia from Barclays asked the team to elaborate on their goal of returning to 20%+ ARR growth, seeking to understand the key components and drivers, such as the mix of conversions versus new logos and the impact of products like MDDR.
CFO and COO Guy Melamed explained that the path to 20%+ growth is based on the strong performance of new business, which saw 50% ACV growth, and an expected improvement in the Net Retention Rate (NRR) from its current 105% level once the transition is complete and the upsell motion resumes. CEO Yaki Faitelson added that the frictionless deployment of the SaaS platform and its ability to solve critical data security problems for AI and various data stores provides a strong foundation for future expansion.
Saket Kalia asked for qualitative commentary on the demand for net new ARR, excluding the impact of existing customer conversions, to better understand the underlying business momentum.
CFO & COO Guy Melamed clarified that a key driver of momentum this quarter was strong new logo activity, particularly driven by the MDDR offering. He explained that the SaaS value proposition, which eliminates hardware and headcount concerns, is shortening sales cycles for new business. While conversions are crucial to reaching their SaaS mix goals, he emphasized that new logos and MDDR are what's truly driving the business forward.
Saket Kalia from Barclays Capital inquired about the thematic merging of creativity and productivity, specifically the growing adoption of Adobe Express within Acrobat, the rationale behind the combination, and its pricing structure.
David Wadhwani, President of Digital Media Business, explained that content consumption is often the start of a creation process. He noted that users of Acrobat's AI Assistant frequently ask it to create summaries or presentation outlines, making the integration with Express a natural next step. This combination streamlines the workflow from consumption to creation. Wadhwani clarified that Acrobat users get access to Express's freemium capabilities, with deeper integrations planned for the future.
Saket Kalia from Barclays asked about the potential attach rate for the new tiered Firefly app subscriptions and whether past products like Adobe Stock could serve as a model for the adoption curve.
David Wadhwani, President of Digital Media, explained that the Firefly app has a dual opportunity: driving attach and upsell with existing creative professionals by integrating premium features into their workflows, and serving as a crucial onboarding tool for the next generation of creators. He highlighted the strategy to merge web and mobile offerings around generative content, including Photoshop and Express, to capture both user bases.
Saket Kalia asked for a deeper dive into the dynamics of the Document Cloud business, specifically regarding pricing trends and its progress toward becoming a more subscription-heavy business.
President of Digital Media David Wadhwani provided a detailed response. He highlighted the strong foundation of PDF as a standard and the value GenAI adds to the trillions of existing documents. He detailed the evolution of AI Assistant and its expansion into content creation. Wadhwani confirmed that making AI Assistant available only to subscribers is expected to further accelerate the transition from perpetual licenses to subscriptions, a model that is already very strong.
Saket Kalia from Barclays Capital inquired about the longevity of the market share shift from legacy to next-gen vendors and whether new initiatives, particularly in identity resilience, are expanding Rubrik's total addressable market (TAM).
Co-Founder, CEO & Chairman Bipul Sinha explained that Rubrik is a platform company transforming legacy backup into a data security platform for cyber resilience. He emphasized that the unique combination of data and identity resilience on a single platform is expanding the TAM, as identity-based attacks are a growing vector. Sinha stated this comprehensive approach is why Rubrik wins the vast majority of head-to-head deals, citing a win at a major cancer medical center as an example.
Saket Kalia inquired about the Total Addressable Market (TAM) for data protection, asking if the transition to cloud and generative AI is causing the market itself to expand.
CEO Bipul Sinha confirmed that Rubrik has fundamentally transformed and expanded the TAM to over $50 billion by creating a new data security platform that combines Data Security Posture Management (DSPM) and cyber recovery. He stated that as customers adopt generative AI and accelerate cloud transformations, the need for cyber resilience and data security increases, further expanding the market. Sinha emphasized that Rubrik is not opportunity-constrained and sits at the intersection of data security and AI.
Saket Kalia asked about the value proposition of Rubrik's cloud backup solutions compared to native cloud provider offerings and questioned the pace of future investments given the strong improvement in contribution margin.
CEO Bipul Sinha explained that customers prefer Rubrik for a single, consolidated policy engine and security control for cyber recovery across their entire hybrid estate, which native tools cannot provide. CFO Kiran Choudary added that margin improvement is driven by both scale and operational efficiencies. He stated the goal is to reach breakeven or better subscription ARR contribution margin in fiscal 2026, but noted that reported operating margin will lag due to the accounting effects of the company's cloud transformation.
Saket Kalia asked about the impact of the recent CrowdStrike IT outage on customer thinking regarding cyber resilience and whether it has influenced demand.
CEO Bipul Sinha explained that the outage served as a "preview" of what a major cyber event could entail, prompting more board-level discussions about business continuity. He noted that Rubrik, a CrowdStrike partner, helped hundreds of joint customers recover, which demonstrated the platform's value. Sinha believes the incident will be one of many factors driving future momentum for the cyber resilience market.
Saket Kalia from Barclays Capital inquired about the underlying demand from bank clients and the data points supporting management's confidence, as well as the drivers behind the recent pressure on Professional Services gross margins and the company's strategy for improvement.
CEO Sean Desmond expressed confidence in demand, citing steady interest across solutions and positive pipeline activity, noting that banks' business imperatives for efficiency remain strong. CFO Greg Orenstein explained that Professional Services margin pressure was concentrated in the U.S. community bank space. He outlined a path to improvement through product redesign for faster implementation and leveraging AI tools, though he noted it would take time to realize these gains.
Saket Kalia asked about customer willingness to invest in 2025 and the discrepancy between the guided growth rates for Annual Contract Value (ACV) and subscription revenue in fiscal 2026.
CEO Sean Desmond stated that customers' balance sheets are healthy and they are focused on efficiency, which benefits nCino. CFO Greg Orenstein explained that ACV is a leading indicator of future growth, while revenue is a lagging indicator. He detailed that the FY26 revenue guide is impacted by FX, conservative mortgage assumptions, onetime revenues from FY25, and a more back-end weighted bookings forecast, reflecting a new, more conservative guidance philosophy.
Saket Kalia inquired about the drivers of international performance, asking if it was due to macro factors or market maturity, and also asked about the strength in RPO growth.
Chief Executive Officer Pierre Naude provided a regional breakdown, highlighting momentum in the Nordics and Japan, a strong U.K. business, and a strategic focus on Spain. Chief Financial Officer Greg Orenstein attributed the strong RPO growth to solid execution across the board, with a healthy mix of net new business and renewals, particularly from the U.S. community, regional, and enterprise segments.
Saket Kalia asked about the differences in the competitive landscape between international markets and the U.S. He also inquired about the mortgage business's transition to platform pricing, specifically the timeline to reach 100% adoption.
CEO Pierre Naude explained that international markets are often more compliance-driven and prefer point solutions, but are showing a similar 'domino effect' of adoption as the U.S. did. CFO Greg Orenstein estimated the mortgage business could transition to 100% platform pricing in 2-3 years, faster than the core business due to shorter contract durations. Pierre Naude added that the bank segment of the mortgage business saw ACV bookings grow 46% year-over-year.
Saket Kalia of Barclays Capital asked for more details on the Red Canary acquisition, specifically whether it should be viewed as an extension of the Zero Trust platform or a strategic expansion that broadens the company's total addressable market.
CEO Jay Chaudhry described the acquisition as a strategic platform expansion into security operations, driven by customer demand. He highlighted Red Canary's engineering talent, production-ready agentic AI technology, and go-to-market team as key accelerators for Zscaler's vision. CFO Remo Canessa added that the deal is valued at $675 million and is expected to be largely neutral to FY26 operating margin.
Saket Kalia inquired about the mix of Zscaler's business, asking how much comes from traditional ZIA and Secure Web Gateway replacements versus the broader, expanding platform products.
CEO Jay Chaudhry explained that while ZIA was the original entry point, Zscaler now frequently lands with a broader platform including ZIA, ZPA, and ZDX. He highlighted that the Zero Trust branch solution is also becoming a significant starting point, noting that 57% of its recent customers were new logos, demonstrating the platform's expanding appeal beyond legacy product replacement.
Saket Kalia inquired about the context for the 20% year-over-year growth in unscheduled billings, asking how it compared to expectations and about the company's confidence in future billings acceleration.
CFO Remo Canessa stated that the 20% growth in unscheduled billings met and exceeded expectations, and he anticipates this 20%-plus growth to continue into the second half of the fiscal year. CEO Jay Chaudhry added that this outlook is supported by strong platform demand, including for new AI security offerings, a robust pipeline, and strengthened sales capacity due to lower attrition.
Saket Kalia inquired about the competitive landscape, particularly concerning newer, pure-play cloud SASE vendors and whether Zscaler has seen any meaningful change.
CEO Jagtar Chaudhry stated that there has been no meaningful change in the competitive landscape and that Zscaler's brand has improved, especially as the market seeks proven, resilient platforms. He emphasized that competitors often lack the necessary proxy-based or multi-tenant architecture, and Zscaler's experience in operating a reliable, large-scale cloud creates a significant and widening competitive gap.
Saket Kalia from Barclays Capital inquired about the new logo pipeline for the workforce business for the remainder of the year and Okta's competitive positioning as it expands its platform.
CEO Todd McKinnon expressed strong optimism, highlighting that new products like Identity Security Posture Management serve as excellent entry points for landing new customers, not just as upsells. He asserted that Okta's combination of independence, neutrality, and a broad, integrated product suite across access, governance, and privilege is unmatched in the industry.
Saket Kalia asked for details on the new Workforce Identity suites announced at launch week, including their structure and how the pricing and packaging is made enticing for customers.
CEO Todd McKinnon explained that the primary goal of the new suites is simplicity. Instead of a la carte purchasing of many individual SKUs, customers can now choose from tiered suites (starter, professional, enterprise) structured as "good, better, best." This simplifies the buying process and clarifies the capabilities needed to achieve specific outcomes, from basic access to a full identity fabric including governance, privileged access, and threat protection.
Saket Kalia asked about the performance of new logo acquisition, noting that it appeared to stabilize, and questioned the drivers and sustainability of this trend.
CFO Brett Tighe stated that while new logos increased, the company aims for higher numbers and believes it can do better. He clarified that the quarter's strong results were primarily driven by cross-selling into the existing base, which represents a massive opportunity. However, he reiterated that accelerating new logo growth remains a key objective.
Saket Kalia of Barclays Capital asked about the SIEM market, noting an apparent increase in competitive displacements and inquiring about SentinelOne's pipeline for such opportunities.
CEO Tomer Weingarten clarified that the opportunity includes augmentation and new data projects, not just displacements. He highlighted SentinelOne's ability to apply its AI to data in existing third-party SIEMs, which differentiates it from legacy providers that struggle with real-time analysis.
Saket Kalia inquired about the new Lenovo partnership, asking how it is expected to contribute to net new ARR, when the impact will begin, and if its contribution will fluctuate with PC shipments.
CFO Barbara Larson described the Lenovo agreement as a multi-year strategic partnership in its early stages. She expects a meaningful revenue contribution to begin in the latter half of the next fiscal year as pre-installed units start shipping and co-sell motions ramp up, but declined to provide specific ARR projections.
Saket Kalia of Barclays asked for more precise guidance on modeling net new ARR for the second half of the year and sought confirmation that the outlook does not heavily depend on benefits from the CrowdStrike outage.
CFO Dave Bernhardt confirmed that the company successfully stabilized net new ARR in Q2, outperforming expectations. He reiterated the expectation for improved net new ARR growth in the second half, driven by go-to-market enhancements, a strong pipeline, and new product traction. Bernhardt explicitly stated that while benefits from competitive events may occur, the company's guidance is not dependent on them.
Saket Kalia inquired about customers' willingness to purchase multiple products as CyberArk becomes more of a platform and asked about the strategy for the declining maintenance business and its conversion opportunity.
CEO Matt Cohen stated that nearly all C-suite conversations are multi-product focused, with the company building three-year roadmaps with customers even if they start with a single solution. CFO Erica Smith added that customer readiness to convert from maintenance to subscription is increasing, with an expected ~$15 million decline in maintenance ARR this year, though it remains a single-digit percentage of overall growth.
Saket Kalia asked about the extent to which customers are shifting from viewing identity security as separate 'swim lanes' to adopting a unified platform approach.
CEO Matt Cohen explained that customers increasingly seek a trusted, integrated platform for a cohesive security posture, especially in modern, dynamic environments like SaaS and cloud. He noted that in these environments, managing the full identity lifecycle—discovery, access, and entitlements—is an integrated story, not a series of separate functions. This customer demand was a key driver behind the acquisition of Zilla to enhance their modern IGA capabilities.
Saket Kalia inquired about the trend of customers consolidating identity solutions onto CyberArk's platform and the sales motions driving this, as well as the expected growth profile and ARR composition for the newly acquired Venafi.
CEO Matt Cohen explained that customers are experiencing an "identity crisis" and are seeking a trusted vendor to secure all identity types, which organically drives them to CyberArk's platform. CFO Joshua Siegel and CEO Matt Cohen added that they view Venafi as a significant growth opportunity, expecting it to grow at or above CyberArk's organic rate as its bookings mix shifts rapidly toward SaaS.
Saket Kalia asked how CyberArk differentiates its workforce identity and secrets management solutions, and inquired when billings might become a more meaningful metric given the strong free cash flow.
CEO Matt Cohen detailed that CyberArk's workforce solutions go beyond standard SSO/MFA by adding layers like secure web sessions and browser security. For secrets management, he highlighted the combination of Conjur Cloud and Secrets Hub, which provides security control without disrupting developer workflows. CFO Josh Siegel explained that while free cash flow is strong, billings remain a noisy metric due to the declining maintenance component from the legacy perpetual model, and that ARR is currently the best indicator of growth.
Saket Kalia asked for details on the consumer lending business's acceleration, focusing on the new business environment and whether the customer profile is shifting. He also requested a breakdown of the 11% growth between volume and new customer ACV release.
President Larry Katz and CFO Elias Olmeta explained that the growth was primarily driven by ACV release from both new logos and cross-sales. Katz noted that the average ARR per customer is increasing, with success among larger AUM clients. Olmeta confirmed ACV release was the majority driver, supplemented by an uptick in auto volumes from existing customers exceeding their minimums.
Saket Kalia asked for a deeper analysis of the growth drivers in the core consumer Loan Origination System (LOS) business and requested an updated breakdown of the different consumer loan types within that segment.
Chief Executive Officer Nicolaas Vlok attributed the 9% consumer lending growth to strong ACV release and sustained customer demand, expressing confidence in the ability to maintain that growth. Chief Financial Officer Elias Olmeta provided a breakdown of the consumer LOS business, stating that auto loans represent roughly half (two-thirds used, one-third new), while credit cards and personal loans account for about a quarter, with the mix remaining stable.
Saket Kalia asked for details on the composition of the non-mortgage consumer lending business, specifically the size of the used car segment, and inquired about the key strengths and opportunities within the go-to-market organization.
CEO Nicolaas Vlok detailed that auto lending constitutes about half of the consumer lending business, with used cars making up approximately 70% of that portion. President and CFO Larry Katz described the key go-to-market opportunity as having the entire customer journey under a single leader for the first time, which is expected to improve scale, efficiency, and customer experience.
Saket Kalia asked for a deeper explanation of why the upgrade cycle for the Exposure Command platform is taking longer than anticipated, beyond general macro pressures.
CEO Corey Thomas explained that while customer interest in solving complex risk is high, the primary obstacle is budget availability, especially within Rapid7's core mid-market installed base. He noted that the upgrade represents an incremental expense, which extends the decision-making process for customers who lack readily available funds, thus slowing the overall upgrade velocity.
Saket Kalia asked for clarification on the ARR breakdown between the growing Detection and Response (D&R) business and the rest of the portfolio, and inquired about the growth outlook for the legacy Vulnerability Management (VM) segment in 2025. He also questioned the long-term margin profile of the managed D&R business.
CEO Corey Thomas confirmed the D&R business is over $400 million in ARR with managed D&R growing in the mid-teens, while the remainder is a mix of VM, cloud, and legacy products. He stated that momentum in the new Exposure Command platform is considered upside to the plan for now. CFO Tim Adams added that overall product gross margins are expected to remain stable in the mid-70s, as efficiencies from AI and a new innovation center in India should offset the lower margin profile of the managed services business.
Saket Kalia from Barclays PLC inquired about the $150,000 average ARR for customers with consolidated offerings and asked what percentage of the customer base has adopted these bundles. He also asked about the expected mix of new customer growth versus ARR per customer expansion in 2025.
CEO Corey Thomas confirmed the roughly $150,000 average ARR for consolidated offerings, noting it's largely driven by the Detection and Response (D&R) business and that just over 10% of the base is on these offerings. CFO Tim Adams added that for 2025, growth can come from both new logos, given the large addressable market, and ARR expansion, driven by consolidated packages and upsell opportunities like MDR.
Saket Kalia asked for an update on the size and growth rate of Alarm.com's emerging growth initiatives in Q1. He also requested a 'state of the union' on the company's competitive standing in key international markets.
CFO Kevin Bradley confirmed the emerging initiatives grew at a similar clip to the previously stated 25%, with EnergyHub's strong quarter making the bucket slightly larger as a percentage of revenue. CEO Stephen Trundle described the international business as being in the 'early innings,' focusing on building out the long-tail dealer base in competitive markets like Latin America and Europe, particularly against low-cost hardware from Asia.
Saket Kalia asked about the drivers behind the Q4 SaaS revenue growth acceleration and how that reconciles with the more modest 6-7% growth guided for 2025. He also inquired about the potential impact of tariffs on the hardware business.
CFO Steve Valenzuela attributed the Q4 outperformance to strong results from EnergyHub and OpenEye, along with growth in the international business, which now represents 6% of total revenue. For 2025, he noted headwinds including the ADT+ transition (~200 bps), flat license revenue (~200 bps), and currency effects (~20-30 bps). CEO Stephen Trundle addressed tariffs, stating the impact is minimal as most manufacturing has been moved from China. However, the company is building up inventory as a defensive measure.
Saket Kalia questioned whether the decline in claims volume is purely cyclical or if structural factors like ADAS are at play. He also asked for a breakdown of the revenue guidance reduction between volume impact and longer sales cycles.
CEO Githesh Ramamurthy acknowledged multiple factors, including ADAS and an aging vehicle fleet, but reiterated that CCCS's business is not primarily dependent on frequency due to its focus on the entire claim lifecycle. CFO Brian Herb clarified that the largest driver of the guidance reduction is the assumption that the 1-point headwind from lower claim volume will persist for the year.
Saket Kalia asked about the impact of recent hurricanes on auto claim volumes and the company's financial results.
CFO Brian Herb and CEO Githesh Ramamurthy clarified that hurricane-related claim volumes have not been material to the company's results. They explained that 80% of revenue is subscription-based, and the impact on transactional revenue is muted by client mix, as many large carriers are on flat-fee contracts. On a national basis, regional weather events do not significantly shift the overall volume posture.
Saket Kalia inquired about the strong 114% net revenue retention rate, asking which products are driving cross-sell success and the underlying reasons for this performance.
CEO Matt Hawkins attributed the strong retention to robust bookings in revenue cycle solutions like claims management and patient access, partly from clients impacted by a competitor's cyberattack, and the clear ROI Waystar's platform delivers. CFO Steve Oreskovich added that while the normalized NRR would be around 110%, the figure was boosted to 114% by the rapid onboarding of new clients in early 2024, which favorably impacts the NRR calculation methodology.
Saket Kalia asked about the pipeline for cross-selling into the clients gained from the competitor disruption and requested directional commentary on Net Revenue Retention for 2025.
CEO Matt Hawkins reiterated that the land-and-expand motion is a core strategy and expects the 30% of new clients already exploring more software to grow. CFO Steve Oreskovich provided directional context for NRR, noting that Q4's 110% rate was driven by higher volumes. With 2025 volume growth guided to a more normalized 1-2%, he implied NRR may moderate from the high end of its historical 108-110% range.