Trevor Rambo

Trevor Rambo from BTIG inquired about the demand environment at the start of fiscal Q1 2026 compared to the previous year, and also sought clarification on Q4 2025 hardware revenue performance, the nature of any revenue pull-forward, and the rationale behind the projected slower decline in hardware revenue for 2026.

Answer

CEO Victor Limongelli noted a strong Q4 2025 finish with some software revenue pulled from Q1 2026, and described the early Q1 2026 pipeline building as reasonable, with benefits from the new CRO expected in the second half. Regarding hardware, he attributed the slowing decline to the potential stabilization of the shift from web to mobile banking. CFO Jorge Martell clarified that Q4 2025 hardware revenue met expectations and the $3 million revenue pull-forward was from the software side, not hardware.

Trevor Rambo from BTIG inquired about the demand environment at the start of Q1 2026 compared to Q1 2025, and also asked for clarification on Q4 2025 hardware outperformance and the reasons behind the projected slower decline in hardware revenue for 2026.

Answer

CEO Victor Limongelli noted a strong Q4 2025 finish with a $3 million software revenue pull-forward from Q1 2026, and described Q1 2026's start as reasonable for pipeline building, with benefits from the new CRO expected in the second half due to sales cycles. Regarding hardware, Limongelli attributed the slowing decline to the potential stabilization of the shift from web to mobile banking. CFO Jorge Martell clarified that Q4 hardware revenue met expectations and the $3 million pull-forward was specifically from software, not hardware.

Trevor Rambo of BTIG questioned the impact of Q2 macroeconomic factors, such as tariffs and federal budget cuts, on customer purchasing behavior. He also requested more detail on the planned evolution of the go-to-market program.

Answer

CEO Victor Limongelli stated that macro impacts were minimal, with tariffs having only a minor effect and federal revenue constituting just 2% of the business. He noted some relative weakness in Europe but strength in the Americas. Regarding the go-to-market strategy, Limongelli highlighted increased investment in successful areas, such as the dedicated North American security sales team, and a refined approach to new logo acquisition for the Digital Agreements business.

Trevor Rambo of BTIG asked about the impact of macro factors like tariffs on customer buying behavior and requested more detail on the planned evolution of the go-to-market program.

Answer

CEO Victor Limongelli stated that macro impacts from tariffs and federal cuts were minimal, as federal revenue is only 2% of their total. He did note geographic weakness in Europe offset by strength in the Americas. Regarding the go-to-market strategy, he explained they are increasing investment in successful areas, such as the dedicated North American security sales team, and are refining their approach to new logo acquisition for the Digital Agreements business.

Trevor Rambo of BTIG, on for Gray Powell, asked about the impact of macro factors like tariffs and federal budget cuts on customer buying behavior. He also requested more detail on the planned evolution of the go-to-market program.

Answer

CEO Victor Limongelli stated that macro impacts from tariffs and federal cuts were minimal, with Europe being a geographically weaker area while the Americas performed well. Regarding the go-to-market strategy, he explained the company is investing more in successful initiatives, such as expanding the dedicated North American security sales team. For the Digital Agreements business, the focus is on refining the approach to improve new logo acquisition.

Trevor Rambo of BTIG asked about the impact of the macro environment, including tariffs and federal budget cuts, on customer buying behavior. He also requested more detail on the company's plans to evolve its go-to-market program by the start of next year.

Answer

CEO Victor Limongelli stated that macro impacts were minimal, with tariffs having a negligible effect and federal revenue constituting only 2% of their business. Regarding the go-to-market strategy, he explained they are increasing investment in the dedicated North American security sales team, which has performed well since being established, and are refining their approach on the Digital Agreements side to accelerate new logo acquisition.

Trevor Rambo of BTIG asked for the ARR impact of two large deals that slipped from Q1 into Q2, inquired about general customer buying behavior, and questioned what gives management confidence to maintain guidance amid macro uncertainty.

Answer

CFO Jorge Martell clarified that the slipped deals did not impact Q1 ARR because their start date was April 1. CEO Victor Limongelli addressed guidance confidence by stating that business has been strong, with good bookings in Q1 and a solid start to Q2. He acknowledged that visibility for the second half of the year is 'fuzzier' but the positive performance to date supports maintaining the full-year outlook.

Trevor Rambo from BTIG asked about the current macro environment, the outlook for the hardware business, customer churn, and how OneSpan plans to sustain high margins while reaccelerating top-line growth.

Answer

CEO Victor Limongelli noted the long-term trend of declining hardware use in consumer banking but highlighted its continued relevance in corporate banking. He emphasized OneSpan's competitive advantage of offering a single back-end for both hardware and software authentication. Regarding future strategy, Limongelli stated the goal is to reach the 'Rule of 40' through a combination of growth and operating leverage, not just profitability, and that while further margin gains are possible, they will be more incremental.

Trevor Rambo inquired about the mix of enterprise versus mid-market deals observed in Q4 compared to Q3, and where Rapid7 anticipates seeing the most traction for deals heading into 2026.

Answer

CEO Corey Thomas stated that while specific numbers weren't immediately available, the pipeline over the year saw a significant shift towards larger ASP deals, which outpaced delivery capacity. He expects a more balanced mix in 2026, with continued focus on larger deals alongside 'singles and doubles' from mid-market AI MDR, Incident Command, and Exposure Command upgrades.

Trevor Rambo inquired about the mix of enterprise versus mid-market deals observed in the quarter compared to Q3, and where Rapid7 is seeing the most traction heading into 2026.

Answer

Corey Thomas, CEO, noted a significant shift towards larger ASP deals in the pipeline over the past year, which was ahead of the company's delivery capacity. He expects a more balanced mix this year, with a focus on both larger deals and 'singles and doubles' (mid-market AI MDR, Incident Command, Exposure Command upgrades) to improve execution. He emphasized that the goal is to convert larger deals while also increasing the volume of smaller, more transactional business.

Trevor Rambo, on behalf of Gray Powell, asked for color on how the rest of the product portfolio performed relative to the strong cloud security segment and if cloud would continue to be the primary growth driver.

Answer

Co-CEO Mark Thurmond reiterated that Q1 was a very strong quarter overall, with OT also performing very well. He noted that cloud security was a significant driver due to sizable deals and expressed continued optimism for the business, especially given market dynamics created by the Google/Wiz acquisition.

Trevor Rambo, on for Gray Powell, inquired about the demand outlook for the service provider (SP) segment for the remainder of the year and into the next. He also asked for more detail on the performance and demand drivers within the enterprise segment, noting its relatively slower year-over-year growth.

Answer

Executive Dhrupad Trivedi explained that while some volatility in the SP segment is expected, the overall trend is improving and stabilizing as customers resume infrastructure investments. Regarding the enterprise segment, Trivedi clarified that A10's focus is on large enterprises, and its year-to-date and trailing 12-month growth in that area compares favorably to the broader industry, indicating successful progress.

Trevor Rambo of BTIG, LLC inquired about sales rep training for the Privileged Access Management (PAM) product, its potential ramp versus OIG, and initial demand for the new Identity Threat Detection and Response (ITDR) solution.

Answer

CEO Todd McKinnon explained that PAM's adoption is similar to MFA's early days, often sold as part of a complete workforce solution rather than a standalone product, which is a key differentiator. For ITDR (Okta's Identity Threat Protection), he noted it's a natural upsell from advanced MFA, providing continuous threat detection. He highlighted that early wins include well-known security companies, validating the product's advanced capabilities.