Tyler M. Radtke

Tyler M. Radtke inquired about the 15% cloud backlog growth, specifically the impact of Cognigy and any duration changes, and its implications for future cloud revenue growth. Radtke also asked about additional investments pressuring margins beyond Q4, such as international expansion or AI.

Answer

CFO Beth Gaspich clarified that excluding Cognigy, cloud backlog growth was 13% year-over-year, building confidence for 2026 acceleration. Gaspich stated that international expansion and sovereign cloud infrastructure investments would continue to exert slight short-term pressure on margins, with more details to be shared at Capital Markets Day.

Tyler M. Radtke asked about the 15% cloud backlog growth, its relation to Cognigy's impact, duration, and implications for future cloud revenue growth. He also inquired about potential future margin pressure from international expansion and AI investments beyond Q4.

Answer

CFO Beth Gaspich clarified that cloud backlog growth, excluding Cognigy, was 13% year-over-year, building confidence for accelerating growth in 2026. She explained that international expansion requires upfront sovereign cloud infrastructure investments, which will cause slight short-term margin pressure, but expects long-term leverage.