Simran Biswal

Simran Biswal, on behalf of Matt Hedberg, inquired about the impact of increased memory pricing on the business and whether it is expected to boost 2026 ARR.

Answer

President and CEO Steve McMillan explained that the supply chain team has effectively protected the company from the P&L impact of increased memory prices, as many contracts involve committed capacity from previous years. He noted that while the incremental memory cost is being absorbed with customers, it allows for different expansion conversations, pivoting discussions towards investing in innovation on the Teradata platform, which is a focus for driving total ARR growth.

Simran Biswal inquired about the impact of increased memory pricing on Teradata's business and whether it is providing a boost to 2026 ARR.

Answer

Steve McMillan, President and CEO of Teradata, stated that the supply chain team has protected the company from the P&L impact of increased memory prices due to committed capacity contracts. He noted that this situation allows for different expansion conversations with customers, pivoting from spending more on expected services to investing in innovation on the Teradata platform, which sales teams are leveraging for total ARR growth.

Simran Biswal asked about the improving demand signals for NETSCOUT's offerings, seeking quantification of deal pull-ins in Q3 and whether the Q4 guidance anticipates further pull-ins.

Answer

Anil Singhal, President and CEO, stated that demand signals are similar or improving, but cautioned about potential delays due to supply chain challenges impacting server procurement for their software. Tony Piazza, EVP and CFO, clarified that demand remains strong with a robust pipeline, and the pull-ins were approximately $15 million, a mix of product and service revenue. He added that the Q4 guidance, centered around the midpoint, does not factor in significant additional pull-ins.

Simran Biswal from RBC Capital Markets inquired about the underlying demand trends for NETSCOUT's solutions, specifically asking if demand signals were improving following a strong Q3 performance that benefited from deal pull-ins. She also asked for quantification of the Q3 pull-ins and whether the Q4 guidance anticipates further deal accelerations.

Answer

Anil Singhal, President and CEO of NETSCOUT, indicated that demand signals are stable or improving, but highlighted potential timing delays for software orders due to external server supply chain issues. He noted strong interest in AI-based solutions. Tony Piazza, EVP and CFO, clarified that the strong demand is reflected in a robust pipeline, with pull-ins primarily affecting timing. Piazza quantified the Q3 pull-ins at approximately $15 million, comprising both product and service revenue, and stated that the Q4 outlook, centered around the midpoint, does not assume additional significant pull-ins.

Simran Biswal asked for an overview of the current macroeconomic environment and its impact on ad spend for the remainder of the year, as well as the resiliency of key growth drivers like CTV and emerging products.

Answer

CEO Rajeev Goel stated that PubMatic is not currently seeing a pullback in ad spend and expects market shifts to benefit the company, including moves from linear TV to programmatic streaming, brand to performance advertising, and increased spend consolidation (SPO). CFO Steven Pantelick reinforced this, expressing confidence in achieving 15%+ underlying business growth in the second half, supported by a diversified customer base and strong momentum in secular growth areas like CTV and mobile.

Simran Biswal, on for Matt Hedberg, asked about business trends so far in Q4, expected linearity, and the risk of deals being pushed. She also inquired about the typical customer journey for large deals.

Answer

CFO Howard Wilson stated that as the company has shifted to Enterprise, linearity has become more back-end loaded, though they aim to close half the business in the first two months. He doesn't expect unusual linearity in Q4 but noted holidays can affect timing. CEO Jennifer Tejada explained the large deal journey varies; it's rarely a large land but rather an expansion. The new solution-selling approach starts the conversation with the full platform, and the pace is set by the customer.

Asked about the strategy for growing existing CTV partnerships and inquired about pressure on non-political ad spend and trends heading into Q4.

Answer

The strategy for CTV growth is to guide partners through the maturation of programmatic, moving from lower-take-rate publisher-sold deals to higher-take-rate biddable models as new advertisers enter the space. On spending, political ads did displace some brand spend, but this is expected to return for the holiday season. The company's full-year political revenue met its ~$20 million expectation.

Simran Biswal, on for Matt Swanson, asked about the strategy for growing existing CTV partnerships and inquired about pressure on non-political ad spend.

Answer

CEO Michael Barrett explained the growth strategy is to guide partners through the maturation of programmatic, moving from low-take-rate publisher-sold deals to higher-yield biddable formats where Magnite sources demand. He also acknowledged that political spending can temporarily displace brand advertising, but expects that spend to return for the holiday season. CFO David Day confirmed political ad spend met expectations for the year.

Simran Biswal, on for Matt Swanson, asked about the growth strategy for existing CTV partnerships and inquired about pressure on non-political ad spend and trends heading into Q4.

Answer

CEO Michael Barrett said the strategy is to grow with partners as they mature from lower-take-rate, publisher-sold deals to higher-take-rate, biddable programmatic models, which improves economics. He acknowledged political advertising displaced some brand spend, which is expected to return for the holiday season. CFO David Day noted political ad revenue for the year met their ~$20 million expectation.