Tyler Radke

Tyler Radke asked about the magnitude of deferred ARR's surprise in the quarter, how it impacts the full year, and if the Q2 net new ARR outlook reflects risk adjustment. He also inquired if the stacking of ramped ARR deals implies durable re-acceleration of overall ARR growth in Q4 and beyond.

Answer

CEO Neil Barua clarified that the significant deferred ARR in Q4 and Q1 was not a surprise but a planned outcome of PTC's go-to-market transformation and product innovation aimed at building a durable, accelerating growth company. He explained that current net new ARR figures and Q2 guidance reflect timing, as the focus is on capturing quality deals that build deferred ARR. He reiterated that the inflection point for more apparent ARR acceleration is anticipated in Q4 and substantially into fiscal 2027 and 2028.

Tyler Radke inquired about the magnitude of the deferred ARR surprise in the quarter, how it changes the outlook for the year, and if the re-acceleration of ARR growth in Q4 due to ramped deals is expected to be durable.

Answer

Neil Barua (CEO, PTC) explained that the strong demand capture in Q4 and Q1, which is building deferred ARR, is a result of the go-to-market transformation. He stated that the inflection point for durable, accelerating growth, driven by this deferred ARR, is expected to become more apparent in Q4 of this year and substantially into fiscal 2027 and 2028.

Tyler Radke asked about the long-term growth trajectory of the business, specifically what levers are needed to achieve double-digit growth, given the recent divestiture and share buyback strategy.

Answer

Neil Barua, CEO of PTC, stated that the company is building momentum and foundational layers for repeatable, sustainable net new ARR growth. He emphasized the intelligent product lifecycle vision, aligning the entire company, and the sharpened focus post-IoT divestiture. He believes the ingredients for durable growth have significantly advanced over the past year, and results will follow.

Tyler Radke asked Neil Barua about the long-term growth potential of PTC's core CAD and PLM businesses, especially after the IoT divestiture and increased capital allocation to share buybacks, and what key levers are needed to achieve double-digit growth.

Answer

CEO Neil Barua emphasized building momentum and foundational layers for repeatable, sustainable net new ARR growth. He highlighted the intelligent product lifecycle vision, aligning the entire company, and the sharpened focus post-IoT divestiture as critical ingredients. He believes these efforts will lead to durable growth, with the current focus on strengthening the underlying business fundamentals.

Tyler Radke inquired about the progress of PTC's go-to-market initiatives, specifically focusing on the evolution of verticalization and product packaging as the company heads into year-end planning.

Answer

President and CEO Neil Barua and Chief Revenue Officer Robert Dahdah expressed growing confidence in the go-to-market transformation. Mr. Barua highlighted progress in building a durable sales engine, noting improvements in win rates and rep productivity. Mr. Dahdah added that the company is building on foundational work with new vertical-specific, outcomes-based messaging that is being tested and will be a key part of planning for the next fiscal year.

Pierre, on behalf of Tyler Radke, asked if the heightened macro uncertainty was creating risk for a specific product line or vertical.

Answer

CEO Neil Barua clarified that the issue is not product-specific, as all of PTC's products are mission-critical for customers. The challenge stems from customers' uncertainty about their own business operations—including supply chains, input costs, and manufacturing locations—in light of the volatile macro and trade environment that emerged in early April. This uncertainty impacts their timing on broad investment decisions.

An analyst on behalf of Tyler Radke asked about the remaining opportunity for PLM seat expansion within existing customers, beyond core engineering teams.

Answer

CEO Neil Barua confirmed that expanding PLM usage across the enterprise is a significant growth opportunity and a "clear priority" for the company. He noted that many customers are still in the early stages of this expansion, and the new vertical go-to-market strategy is designed to accelerate this adoption by highlighting industry-specific use cases.

Tyler Radke asked about Oracle's strategy to cross-sell additional platform services like database and middleware to its AI infrastructure customers, and how the emerging AI platform-as-a-service market compares to traditional cloud PaaS.

Answer

Larry Ellison, Chairman and CTO, detailed Oracle's multi-cloud database strategy, making it available across AWS, Azure, and Google Cloud. He highlighted the Oracle AI Database's ability to vectorize data for AI models and the new AI Data Platform (AI lakehouse) that unifies all enterprise data, including non-Oracle sources, for multi-step reasoning by LLMs, creating a unique value proposition.

Tyler Radke asked if Braze is starting to access dedicated AI budgets, as opposed to being solely reliant on MarTech budgets, and how the go-to-market strategy will evolve to gain further exposure to AI budgets.

Answer

Bill Magnuson (CEO, Braze) clarified that Braze is selling 'performance' with Decisioning Studio, demonstrating uplift with rigorous reporting in critical customer journey use cases. He emphasized that combining composable data/intelligence with cross-channel support at scale, security, and strong TCO, along with leading innovation, unlocks incremental budgets rather than just accessing experimental AI budgets.

Tyler Radke asked if Braze is starting to access dedicated AI budgets or if it remains primarily tied to MarTech budgets, and how the go-to-market strategy will evolve to gain further exposure to AI budgets.

Answer

Bill Magnuson (CEO, Braze) clarified that Braze is selling 'performance' by demonstrating uplift with rigorous reporting in critical customer journey use cases, rather than accessing experimental AI budgets. He stated that combining composable data and intelligence with comprehensive cross-channel support, at scale and securely, with a strong total cost of ownership story and a track record of innovation, is the right path to unlocking incremental budgets.

Tyler Radke inquired about the underlying demand drivers behind the better revenue reserve dynamics and improving retention rates, specifically asking if improvements in messaging or monthly active users (MAU) were contributing factors, and any commonalities across better payments and retention.

Answer

CFO Isabelle Winkles explained that better payment dynamics reflect overall customer health and Braze's status as a tier-one vendor, indicating customers' ability and prioritization to pay. She noted that all components of the demand environment are performing well, with some growth in MAU (though historically underpacing revenue growth) and strong performance in messaging and broad adoption of multiple SKUs.

Tyler Radke asked for a go-to-market update, including plans with the new CRO and traction in vertical markets like financial services. He also sought clarification on OfferFit's revenue impact and the level of conservatism in the new guidance.

Answer

CEO Bill Magnuson stated that go-to-market priorities remain consistent, focusing on the legacy replacement cycle and verticalization efforts, which are gaining traction. CFO Isabelle Winkels confirmed the OfferFit revenue contribution is guided at $11-12 million. She added that the updated full-year guidance incorporates the Q1 beat and has slightly more risk adjustment, making it a bit more conservative than the prior guide.

Tyler Radke of Citigroup asked for more detail on the comment that Braze 'did a little bit better on logo churn' in the quarter and requested an update on the general health of the SMB segment of the market.

Answer

CFO Isabelle Winkles explained that after several quarters of elevated churn, the company is starting to work through that headwind as many at-risk, smaller accounts have already been flushed out. She indicated that while some contract rightsizing may still occur for customers who remain, the most significant wave of churn from smaller, less healthy businesses is moderating.

Tyler Radke questioned how conversations around 'Agentic AI' are evolving and impacting Braze's competitive standing, and asked about the drivers behind the reacceleration in bookings and billings versus the Q4 guide.

Answer

CEO Bill Magnuson asserted that competitors' focus on agentic AI has led them to neglect their marketing cloud products, creating replacement opportunities for Braze. CFO Isabelle Winkles clarified that the Q3 billings reacceleration was influenced by a favorable year-over-year comparison in the timing of annual upfront contract signings, rather than a fundamental shift in business momentum.

Tyler Radke asked for an explanation of the Q4 subscription revenue guide's deceleration compared to Q3, seeking insight into the underlying growth of the business and any potential prudence in the guidance.

Answer

Blake Grayson (CFO, DocuSign) attributed the Q4 revenue deceleration to a boost from extra early renewal components in Q3 and a challenging year-over-year comparison against Q4 fiscal 2025, which saw strong revenue acceleration due to new PLG initiatives.

Tyler Radke inquired about the momentum in Docusign's CLM business, specifically whether the strong Q2 performance, including large deals like T-Mobile, indicates a sustainable trend or was primarily a timing benefit.

Answer

CEO Allan Thygesen acknowledged a very strong quarter with exciting large deals but stated it is too early to declare a broader category trend, though the results are encouraging.

Tyler Radke from Citigroup asked about the confidence level in the second-half billings ramp, specifically what was assumed for early renewals and enterprise contributions. He also questioned if customers were contracting closer to their actual consumption due to the macro environment.

Answer

CEO Allan Thygesen stated that the second-half acceleration is driven by the scaling of the commercial business globally, not a dramatic assumption of enterprise acceleration. He also noted that customers contracting closer to consumption was a post-COVID trend that has already played out and was not a material factor in Q1. CFO Blake Grayson added that the forecast includes more room for timing variability on renewals.

Tyler Radke inquired about the biggest go-to-market opportunities under the new sales leadership for fiscal 2026, specifically regarding the ELA motion and IAM attach rate. He also asked about levers for margin improvement given incremental investments in IAM, AI, and compensation.

Answer

CEO Allan Thygesen highlighted that the near-term IAM opportunity is in the commercial segment, with a longer-term focus on building enterprise capabilities for departmental and eventually company-wide deployments. CFO Blake Grayson noted that while the company seeks efficiency, the biggest lever for long-term operating leverage is accelerating growth. He mentioned temporary margin pressures in FY26 from cloud transition costs and compensation structure changes but reiterated a focus on maintaining efficiency gains.

Tyler Radke asked about the starting points and 'low-hanging fruit' in the construction opportunity, and how often ServiceTitan replaces third-party solutions versus addressing Greenfield needs. He also sought an early look at margin expansion for FY27 and the framework for incremental margins.

Answer

CEO Ara Mahdessian stated that ServiceTitan rarely sees Greenfield opportunities, primarily replacing existing solutions. Success is found with contractors focused on service expanding into construction, with current capabilities handling projects up to $10-15 million. CFO Dave Sherry reiterated the FY27 target of 25% incremental margins, expecting less upside than this year due to catching up on hiring.

Tyler Radke from Citigroup asked about any observed impact on average ticket sizes from macro cycles and sought clarification on whether the Q2 guidance range was wider than usual.

Answer

CFO Dave Sherry stated that both job volume and average ticket size growth rates were stable in Q1, and the company is not embedding any acceleration in ticket size in its forecast. He confirmed that the Q2 guidance does factor in more variance, primarily due to the high dependency on weather patterns.

Tyler Radke from Citigroup asked about the macro impact on average ticket sizes and whether Q2 guidance includes a wider range due to macro or weather factors.

Answer

CFO Dave Sherry stated that key GTV inputs like job numbers and average ticket size were stable in Q1. He confirmed that the Q2 guidance range prudently factors in more variance, which is heavily dependent on weather, especially when compared to a hot prior-year period.

Tyler Radke requested more detail on the early success of new Pro products like Sales Pro and Contact Center Pro, and also asked about customer sentiment regarding the political environment.

Answer

CEO Ara Mahdessian stated that while it's still early, the company is pleased with the customer enthusiasm and initial progress for its newest Pro products, which are pacing well compared to previous launches. On the political climate, he noted he is not hearing concerns from customers, emphasizing the non-discretionary and essential nature of the trades industry, and does not consider administrative changes a risk factor for the business.

Asked for more specific details on the traction of new Pro products like Sales Pro and Contact Center Pro, and inquired about customer sentiment regarding potential impacts from the upcoming presidential administration.

Answer

The new Pro products are seeing strong early customer enthusiasm and are pacing well compared to previous launches, though it is still early. Regarding political changes, the company is not hearing concerns from customers and does not consider it a risk factor, as the trades industry is durable, non-discretionary, and relies on highly skilled labor.

Tyler Radke asked about the four nine-figure RPO bookings in the quarter, specifically their structure, expected growth, and whether they represented large expansions. He also asked Brian Robbins for any insights into potential headwinds or tailwinds for fiscal year 2027, even without formal guidance.

Answer

Sridhar Ramaswamy, CEO, clarified that there were four nine-figure deals, indicating significant customer spending and positive outlook for additional value. He reiterated that bookings reflect future spending, while product revenue is the best indicator for the next quarter. Brian Robbins, CFO, stated that FY27 guidance would be provided on the next call, emphasizing that consumption patterns after the holiday season (January/February) are the most crucial input for next year's outlook.

Tyler Radke asked about the structure and expected growth of the four nine-figure RPO bookings deals signed in Q3, specifically if they represent large expansions. He also asked CFO Brian Robbins about any potential headwinds or tailwinds for fiscal year 2027, without requesting specific guidance.

Answer

CEO Sridhar Ramaswamy clarified that bookings indicate future spending, while product revenue is the best indicator for the next quarter. He confirmed that the four nine-figure deals were with significant customers who are positive about additional value. CFO Brian Robbins stated that FY27 guidance would be provided on the next call, emphasizing that consumption behavior after the holiday season is the most important input for that forecast.

Tyler Radke from Citigroup asked about the competitive environment, including Databricks, Microsoft Fabric, and Palantir, and how large customers are differentiating between these platforms, and if this is leading to higher deal velocity for Snowflake.

Answer

CEO Sridhar Ramaswamy positioned Snowflake as the 'best AI data platform,' emphasizing its core strengths of simplicity, connectedness, and trusted governance. He expressed confidence in Snowflake's value proposition across both core analytics and emerging areas like AI and Postgres. He suggested that the market's recognition of these strengths is a key reason for the company's accelerating growth across all metrics.

Tyler Radke from Citigroup asked for more detail on the strength seen in technology sector customers and their consumption patterns. He also inquired about Snowflake's strategy for Unistore and its positioning against serverless Postgres databases.

Answer

CFO Michael Scarpelli confirmed that consumption from technology customers, including AI companies, was good but reiterated that no single AI company accounts for more than 1% of revenue. Regarding Unistore, CEO Sridhar Ramaswamy stated that the company has believed in transactional systems for a long time, the product is doing very well, and they will continue to invest in the area as a natural addition to the platform.

Tyler Radke asked for factors that might explain the smaller magnitude of the revenue beat in Q2 compared to Q1. He also inquired about cash flow dynamics, given lighter collections, and whether billings terms were changing.

Answer

CFO Mike Scarpelli characterized the beat as being within a normal range and emphasized the importance of the full-year guidance raise. He confirmed that billings terms are consistent (~80% annual in advance) and that Q2 collections were as planned. He maintained the 26% full-year free cash flow margin guidance, citing the typical seasonality of cash flow.

Tyler Radke asked about the significant growth in direct revenue (up 85%) and the strength of the Autodesk Store, inquiring if this performance exceeded expectations and how taking more business direct acts as a tailwind to reported revenue. He also sought clarification on the current underlying growth rate of the business, comparing it to the beginning of the fiscal year.

Answer

CFO Janesh Moorjani confirmed that direct revenue growth was as expected, reflecting the scaling of the new transaction model and its impact on as-reported numbers. He noted that Autodesk Store strength is broader than just channel shift, also driven by growth in countries not yet under the new transaction model. Regarding underlying growth, he stated that the business has shown consistent growth across the three quarters of this year, with similar consistency implied for Q4, reflecting strong execution and a resilient business model.

Tyler Radke asked about the significant growth in direct revenue (85% this quarter) and the strength of the Autodesk Store, inquiring if this performance exceeded expectations and how taking more business direct acts as a tailwind to reported revenue. He also sought clarification on the underlying growth of the business, comparing the initial high single-digit guidance to the current low teens implied in the Q4 guide.

Answer

CFO Janesh Moorjani confirmed that the increase in direct revenue was expected as the new transaction model scales, affecting as-reported numbers but also reflecting broader strength in the Autodesk Store and emerging countries. Regarding underlying growth, he reiterated that initial guidance was prudent, and the business has shown consistent growth across the past three quarters, with similar consistency implied for Q4, reflecting strong execution and momentum.

Tyler Radke of Citigroup asked about the drivers of strength in the online store, including any new PLG motions, and questioned the timing of releasing the FY29 margin outlook ahead of the Analyst Day.

Answer

President and CEO Andrew Anagnost confirmed investment in the online store and PLG motions for products like Fusion to capture business from transactional partners. EVP & CFO Janesh Moorjani explained they released the margin target now because it's of high interest to investors and the company has now completed its internal long-term planning cycle. He also noted FCF and operating income should correlate highly in the long term.

Tyler Radke inquired about the performance and timing of Enterprise Business Agreements (EBAs) in the quarter and asked about the pricing philosophy for the maintenance-to-subscription cohort as their price-lock program ends.

Answer

CFO Janesh Moorjani noted that upfront revenue from EBAs was a positive contributor in Q1 but not outsized, and renewal rates and uplifts remain stable. CEO Andrew Anagnost stated that the maintenance-to-subscription price-lock program will sunset in the foreseeable future, after which price increases for that cohort will be consistent with value delivered, though it's too early for specifics.

Tyler Radke asked for specifics on efficiency opportunities from the new transaction model and inquired about the durability of the reacceleration in the Make segment, particularly in Construction Cloud.

Answer

CEO Andrew Anagnost identified self-service, automated upsell/cross-sell, and removing channel redundancies as key long-term efficiency drivers. Regarding the Make segment, he noted that while PIX contributed, the core Construction business shows consistent organic growth and inorganic acceleration from acquisitions like Payapps, driven by strong new customer additions.

Tyler Radke asked about the confidence level in the fiscal '26 free cash flow target and what cost optimizations are assumed. He also questioned if any one-time factors contributed to the strong 'make' revenue.

Answer

Interim CFO Betsy Rafael expressed confidence in the $2.05 billion fiscal '26 free cash flow target, citing major tailwinds from the largest multiyear contract cohort renewing, a large EBA cohort, and the mechanical benefit from the annual billing transition. CEO Andrew Anagnost addressed the 'make' revenue, stating that while the core momentum in Construction and Fusion is solid and consistent, the results also included a contribution from the recent acquisition of Payapps, which he declined to quantify.

Tyler Radke asked about Zoom's Q4 FY26 growth outlook as a jumping-off point for FY27, inquiring about the impact of online business price increases and the stepping stones needed to achieve 10% long-term growth.

Answer

Michelle Chang, CFO, stated that FY27 guidance would be provided in February, and any pricing changes would be clarified then. She emphasized that long-term growth would be driven by churn stabilization, product diversification, and moving upmarket, with enterprise remaining the predominant growth driver.

Tyler Radke asked about Zoom's Q4 FY2026 outlook as a foundation for next year, potential pricing adjustments for the online business, and the strategic milestones required to achieve 10% long-term growth.

Answer

CFO Michelle Chang stated that FY2027 guidance would be provided in February, emphasizing that enterprise will remain the primary growth driver. She highlighted stabilization, churn reduction, product diversification, and moving upmarket as key elements for future growth.

Tyler Radke sought details on the Q2 billings outlook, asking when the macro impacts on the enterprise business began to materialize during Q1 and how sensitive the online new customer acquisition motion is to the macroeconomic environment.

Answer

CFO Michelle Chang responded that while deal pausing and elongation in the enterprise segment were observed throughout Q1, they were most pronounced toward the end of the quarter. In contrast, she stated that the online business had a strong quarter for both new customers and churn, showing no signs of macro impact.

Tyler Radke of Citi asked about the path to long-term operating margins, given current levels are above the target, and inquired about the new CFO's philosophy on expense evaluation.

Answer

CFO Michelle Chang stated that the company will continue to invest in AI, emerging businesses, and the platform to drive top-line growth, clarifying the long-term margin guide is not an FY'26 target. Her philosophy is to ensure disciplined spending is aligned with strategic growth. CEO Eric Yuan added his confidence in the DevOps team's ability to optimize infrastructure costs over the long run.

Tyler Radke from Citi asked about the performance of the new business side of the Online segment, given the strong renewal rates and recent initiatives to drive improvements.

Answer

CFO Kelly Steckelberg acknowledged that while the team continues to add features to expand growth, the SMB and small business area has seen some headwinds consistent with peers, due to economic uncertainty. She clarified that this performance was roughly in line with the company's internal forecast for the year, which allowed them to maintain and raise overall guidance.

Tyler Radke asked about the impact of product optimizations, such as LogsDB, on cloud revenue trajectory, and whether most customers have completed these optimizations, potentially leading to an acceleration in cloud growth from new use cases. He also inquired if ACV growth (net new and overall) is tracking above reported subscription or sales-led subscription growth.

Answer

CEO Ash Kulkarni explained that rapid data growth necessitates efficiency features like LogsDB, which allow customers to manage data and make Elastic more attractive for consolidating workloads. He emphasized that consumption growth is driven by commitments, and strong commitments this quarter provide confidence for future revenue and raised guidance. CFO Navam Welihinda confirmed that the two largest deals (>$20M TCV) were cloud deals. Welihinda also confirmed that ACV growth is tracking above sales-led subscription revenue because cloud revenue trails subscriptions, with commitments eventually turning into revenue, and ACV growth has been accelerating year-over-year.

Tyler Radke asked about the impact of product optimizations, such as LogsDB, on Elastic's cloud revenue trajectory, specifically whether most customers have completed these optimizations, potentially leading to an acceleration in cloud growth from new use cases. He also followed up on ACV growth.

Answer

CEO Ash Kulkarni explained that while efficiency features like LogsDB help customers manage rapidly expanding data volumes and make the platform more attractive, overall consumption growth is primarily driven by new commitments. He emphasized that strong commitments, including the two largest deals ($20M+ TCV) being cloud deals, will translate into future revenue. CFO Navam Welihinda confirmed that ACV growth is indeed stronger than reported subscription/sales subscription growth because cloud revenue recognition trails commitments, and ACV growth has been accelerating year-over-year.

Tyler Radke of Citigroup inquired about the specific use cases driving the increase in million-dollar AI customer additions and sought details on the recent price increase, particularly if the ~5% monthly cloud increase was consistent across other offerings.

Answer

CEO Ashutosh Kulkarni explained that customers are making more meaningful commitments as they embed Elastic's context engine into their core AI applications, driving consumption. He confirmed a price increase occurred across both cloud and self-managed offerings as part of the normal business practice of adding value and functionality, similar to a price change made in the prior year.

Tyler Radke sought clarification on the metric that 25% of million-dollar customers are using AI, asked about emerging agentic use cases, and requested more detail on the public sector headwinds seen in the quarter.

Answer

CEO Ashutosh Kulkarni clarified the metric means 25% of the total cohort of million-dollar customers are using Elastic for an AI workload, indicating adoption. He noted use cases are expanding beyond support to sales and legal automation. CFO Navam Welihinda stated the public sector pressure was a factor, but the business is well-diversified across verticals and geographies, which allowed for a strong Q4 overall. The pressure was primarily on the U.S. federal civilian side.

Tyler Radke from Citigroup Inc. asked for details on how GenAI use cases are unfolding, the go-to-market strategy for them, and clarification on whether strong large-customer consumption was a one-time event.

Answer

CEO Ashutosh Kulkarni explained that Elastic is pursuing a platform strategy for retrieval-augmented generation (RAG), with a sales motion focused on semantic search and vector database capabilities. CFO & COO Janesh Moorjani clarified that the strong consumption was broad-based and not a one-time event, reflecting momentum in GenAI and platform consolidation, but the company's guidance remains prudent as consumption rates can fluctuate.

Tyler Radke asked for more specifics on the deal shortfall, questioning if it was concentrated in large enterprise renewals and why cloud revenue guidance was cut if consumption was healthy. He also asked about the strategic significance of adding the AGPL open source license.

Answer

CFO and COO Janesh Moorjani clarified the impact was broad-based across enterprise and commercial segments, primarily affecting new workloads and logos rather than renewals, which remained strong. He explained that the lower volume of new commitments limits the future pool of consumption, necessitating the cloud revenue guidance cut. CEO Ashutosh Kulkarni described the AGPL license addition as a strategic move to be officially 'open source again,' aiming to boost developer adoption for vector search in GenAI applications and drive long-term growth.

Tyler Radke asked for more detail on the 'unique customer-specific situations' leading to some top 20 CRM customers opting for other solutions, including potential discounts or negotiations, and the timeframe for winning them back. He also asked about the focus of recent hiring and implications for margin expansion.

Answer

Peter Gassner (CEO) clarified that 'customer-specific situations' refer to individual dynamics and a desire to 'try something new,' not specific patterns, and that win-backs typically occur with executive turnover or project failures, with custom-built systems having varied lifespans. Gunnar Hansen (Head of Investor Relations) stated that hiring is focused on product and services teams, with some impact on services margin this quarter, but expects new hires to ramp up and improve performance over time.

Tyler Radke asked for elaboration on the 'customer-specific situations' for Vault CRM top 20 customers, the timeframe for potential win-backs, and the current hiring trends and implications for margin expansion.

Answer

Peter Gassner (CEO) clarified that 'customer-specific situations' refer to individual human dynamics and preferences, not specific patterns, and win-backs could occur due to executive turnover or project failures, potentially taking years. Gunnar Hansen (Head of Investor Relations) and Brian Van Wagener (CFO) stated that hiring is focused on product and services, impacting services margin short-term, but subscription gross margins remain stable.

Tyler Radke from Citigroup asked if the IQVIA partnership provides an immediate revenue unlock that contributes to the current year's forecast. He also requested details on the unique architectural differentiators of the Vault platform for AI compared to competitors.

Answer

CEO Peter Gassner clarified that any revenue from the IQVIA partnership would not be material for the current fiscal year. He explained that Vault's key AI advantage is its deep application integration, which provides agents with inherent knowledge of security, business rules, and transactional control—a structural advantage over toolkit-based or single-use-case AI solutions.

Tyler Radke of Citigroup asked for Veeva's perspective on the potential reshoring of pharmaceutical manufacturing as a possible tailwind. He also questioned if the updated full-year guidance incorporated any deterioration in assumptions like discount or close rates due to the macro environment.

Answer

CEO Peter Gassner opined that potential manufacturing reshoring is not a significant headwind or tailwind for Veeva, though it could theoretically delay other projects if it becomes an emergency priority for customers. CFO Brian Van Wagener clarified that the business velocity and close rates have not been impacted by the macro environment, and the guidance update reflects Q1 outperformance from Crossix and services timing.

Tyler Radke asked for a framework for thinking about FY26 growth and whether there have been any changes in the early stages of large deal cycles due to the macro environment.

Answer

CFO Brian Van Wagener deferred specific FY26 guidance until the next earnings call but highlighted that the current year's updated guidance reflects approximately 15% subscription growth, which aligns well with long-term targets. CEO Peter Gassner had previously noted that visibility into next year is marginally better than in prior years.

Tyler Radke questioned whether the quarter's strong performance indicated an improving macro environment and asked for details on the drivers behind the raised commercial guidance and the weakness in services.

Answer

CEO Peter Gassner attributed the strong results to 'strong execution' and some luck, stating the macro environment is unchanged. Interim CFO Tim Cabral specified that the commercial guidance raise was driven by outperformance in commercial content and Crossix, while services weakness was due to project delays and a few customers contracting directly with third-party SIs.

Tyler Radke of Citi questioned why Similarweb reiterated its revenue guidance instead of beating and raising, a historical trend, asking if it was due to deal timing, linearity, or conservatism related to the CFO transition. He also inquired about the specific drivers behind the incremental margin raise, seeking details on cost reductions across departments or AI-driven efficiencies.

Answer

Or Offer, Co-Founder and CEO, explained that while various factors contribute, the primary focus was on optimizing EBITDA margin through efficient and disciplined execution, resulting in a significant beat and raise on profit guidance. He further elaborated that margin improvement stems from a combination of disciplined execution, AI tailwinds boosting R&D productivity without increasing resources, and optimizing the go-to-market strategy by retaining top-performing sales personnel.

Tyler Radke questioned the lack of a revenue beat and raise, which has been a common trend for Similarweb, asking if it was due to deal timing, linearity, or conservatism given the CFO transition. He also inquired about the drivers behind the incremental margin raise, specifically asking about cost-cutting areas or AI efficiencies.

Answer

Or Offer, Co-Founder and CEO, stated that the company's focus has been on optimizing EBITDA margin through disciplined execution, which is reflected in the significant beat and raise on profit guidance. He attributed cost savings to AI tailwinds increasing productivity in engineering and optimizing the go-to-market strategy by retaining the best-performing sales reps after an initial over-hiring phase.

Tyler Radke from Citigroup asked for more detail on the one-time licensing dynamics, their frequency, and a quantification of their revenue impact, questioning the risk of it being a non-recurring stream.

Answer

Co-Founder & CEO Or Offer clarified these are not one-time deals but rather one-time fees for an evaluation phase that precedes long-term ARR contracts. CFO Jason Schwartz quantified the impact as 'a little over $1,000,000' in Q2 and reinforced confidence in durability by citing a prior customer who renewed with a multi-million dollar upsell and a multi-year term.

Tyler Radke inquired about the slowdown in current RPO bookings growth and whether to expect a reacceleration in the second half of the year. He also asked about the average deal size and profile of new customer additions given the new sales motion.

Answer

CFO Jason Schwartz attributed the current RPO trend to seasonality and lapping large deals signed in Q2 and Q3 of the prior year, expecting a rebound as those deals come up for renewal. He confirmed the new customer acquisition strategy focuses on a "land and expand" motion, with initial deal sizes being lower but noting that over 80% of their largest customers started with smaller contracts.

Tyler Radke asked for details on how AI-related deals are structured and how their average deal sizes compare to traditional Similarweb contracts.

Answer

CEO Or Offer outlined two types of AI deals. The first, for training LLMs with up-to-date digital data, involves selling different data streams and typically starts at six figures. The second, for brands monitoring their perception within chatbots, is priced by usage and region, starting at five figures. CFO Jason Schwartz added that the need for data freshness drives the recurring nature of these contracts.

Tyler Radke asked about the implications of the Q3 delays on 2026, specifically regarding revenue and growth rate. He inquired if the delay would be fully resolved in Q1 2026 and if a step-up in growth rate is expected next year.

Answer

CEO Mike Intrator stated that the overwhelming majority of the delay should be resolved within Q1 of next year. CFO Nitin Agrawal confirmed that the CapEx push-out from Q4 2025 will largely be recognized in Q1 2026, and the total revenue for the affected customer remains unchanged. He also noted that 2026 CapEx is expected to be well more than double that of 2025.

Tyler Radke asked for clarification on the implications of the called-out delays for 2026, specifically regarding revenue, CapEx, and growth rate, and whether the delay is expected to be fully resolved in Q1 2026.

Answer

CEO Mike Intrator stated that the delay is short-term, primarily impacting Q4 2025, with the overwhelming majority expected to be resolved in Q1 2026. CFO Nitin Agrawal added that the CapEx push-out from Q4 will largely be recognized in Q1, and the total revenue from the affected customer contract remains unchanged. He also noted that 2026 CapEx is expected to be well over double that of 2025 due to strong demand.

Tyler Radke asked about the timing of the significant CapEx ramp expected in Q4 and sought specifics on the increased costs that led to unchanged full-year operating income guidance despite a revenue raise.

Answer

CEO Michael Intrator explained the back-half ramp is a systematic process where power capacity comes online first, followed by CapEx deployment, and then revenue generation. CFO Nitin Agrawal specified that the increased costs are primarily from data center leases and related expenses that are incurred before the infrastructure begins generating revenue, creating a short-term margin impact due to the unprecedented scale of deployment.

Tyler Radke of Citigroup inquired about the timing of the significant CapEx and revenue ramp expected in Q4 and asked for specifics on the increased costs affecting the full-year operating income guidance.

Answer

CEO Michael Intrator outlined the deployment sequence: power availability, followed by CapEx spend, and then revenue generation. CFO Nitin Agrawal elaborated that costs such as data center leases are incurred before revenue begins, creating a temporary timing mismatch that impacts margins during periods of massive, unprecedented capacity expansion.

Tyler Radke requested a more detailed explanation for the higher-than-expected interest expense in Q1 and the Q2 guidance, questioning why improved vendor payment terms didn't also translate to lower CapEx.

Answer

CFO Nitin Agrawal clarified that improved vendor terms shortened the period between payment and asset deployment, which reduced the amount of interest that could be capitalized and thus increased the recognized interest expense on the income statement. He noted this effect is expected to continue, but the company's overall cost of capital is decreasing.

Tyler Radke inquired about the drivers behind the astounding 55x consumption increase, whether it's concentrated in specific verticals or use cases, and how Now Assist ACV is tracking towards the $500 million year-end and $1 billion next year targets.

Answer

President, CPO, and COO Amit Zavery explained that agentic workflows drive significantly higher assist volumes (5x-12x) compared to basic summarization, leading to rapid consumption growth as customers go live faster. CEO Bill McDermott provided examples like Lenovo (35% faster case resolution) and Bell (automating 90% of dispatch tasks). CFO and President Gina Mastantuono confirmed Now Assist is on pace to exceed $500 million ACV by year-end, ahead of plan, and is well on its way to the $1 billion target.

Tyler Radke inquired about the drivers behind the astounding 55x consumption increase, whether it's concentrated in specific verticals or use cases, and how Now Assist ACV is tracking towards the $500 million year-end and $1 billion next year targets.

Answer

President, CPO, and COO Amit Zavery explained that agentic workflows drive significantly higher assist volumes (5x-12x) compared to basic summarization, leading to rapid consumption growth as customers go live faster. CEO Bill McDermott provided examples like Lenovo (35% faster case resolution) and Bell (automating 90% of dispatch tasks). CFO and President Gina Mastantuono confirmed Now Assist is on pace to exceed $500 million ACV by year-end, ahead of plan, and is well on its way to the $1 billion target.

Tyler Radke asked for insights into the reception of the Performance X pricing by the install base and how Adobe views the PxQ (price times quantity) dynamic heading into the next year.

Answer

Shantanu Narayen, Chair and CEO, clarified that the creative business saw strength across the board. He highlighted the healthy migration to the Creative Cloud Pro offering, strong adoption of Firefly subscriptions by new users, and the growth of Firefly Services in the enterprise, indicating that the migration and pricing were well-received and contributed to overall strength.

Tyler Radke asked about the pricing side of Adobe's business, specifically seeking commentary on the reception of the Creative Cloud Pro offering and how to think about the price-times-quantity (P x Q) dynamics heading into the next fiscal year.

Answer

Shantanu Narayen, Chair and CEO, clarified that the creative business showed strength across the board. He noted that the migration to the Creative Cloud Pro offering, driven by core creative professionals' adoption of AI, performed exceptionally well. He also highlighted strong performance from Firefly subscriptions and increased new user acquisition for Adobe's creative platform. He emphasized that while the migration was healthy, it was not the sole reason for the overall strength observed.

Tyler Radke from Wells Fargo Securities asked about the impact of recent pricing optimizations on gross margins and the overall PxQ dynamic, and why Adobe is not experiencing margin degradation despite increased AI adoption.

Answer

Shantanu Narayen, Chairman & CEO, clarified that while Creative Cloud Pro migration was healthy, overall strength was broad-based, with strong adoption of Firefly subscriptions and services. Dan Durn, CFO & EVP, Finance, Technology, Security and Operations, attributed strong margin delivery to clear prioritization, efficient GPU fleet management for training and inferencing, and internal productivity gains from AI adoption.

Tyler Radke of Citigroup asked about the relationship between GenAI usage and monetization, noting that Firefly generations have been consistent, and questioned how far Adobe is in monetizing this high level of engagement.

Answer

Chairman & CEO Shantanu Narayen responded that AI-influenced revenue is already in the billions and serves as a tailwind for adoption across all products. He emphasized that direct AI monetization is still in its early stages, with a significant opportunity ahead. He pointed to the entire portfolio of new offerings—Acrobat AI Assistant, Firefly, Creative Cloud Pro, and GenStudio—as the key drivers for future monetization.

Tyler Radke asked about the Digital Experience segment, noting the strong RPO additions but a Q4 revenue guide that was lighter than consensus, and inquired about the underlying business dynamics heading into the fourth quarter.

Answer

President of Digital Experience Anil Chakravarthy answered the question. He highlighted the significant opportunity in 'personalization at scale' and Adobe's unique ability to integrate content, data, and journeys. He noted that in a scrutinized spending environment, customers see value in Adobe's platform for both growth and efficiency. Chakravarthy clarified that the company's focus is on the strongly performing subscription business, which is the core of the segment's growth.

Tyler Radke sought to quantify how much AI-related use cases, such as vector search or the Voyage acquisition, are contributing to the current strength in Atlas growth. He also asked for an update on the application modernization opportunity, specifically regarding improvements in migration velocity or workload size.

Answer

President & CEO Dev Ittycheria stated that while many AI-native customers are being added, their contribution to the quarter's growth was not material, with the core business driving the results. On application modernization, he noted significant investment in new leadership and AI-powered tooling to automate the process, positioning it as a long-term growth driver that will be detailed further at the upcoming Investor Day.

Tyler Radke asked about the quality of new workload acquisition this year versus last and sought to understand the drivers behind the strength in the non-Atlas (EA) business, questioning if it was a one-off event.

Answer

CEO Dev Ittycheria noted that early results from changes to improve workload quality are positive. CFO Michael Gordon added that fiscal '24 cohorts continue to show slower growth. Regarding EA strength, Gordon attributed it to a few large multiyear deals contributing over $15 million in revenue versus the prior year's Q3. Ittycheria affirmed continued investment in EA to support their 'run anywhere' strategy.

Tyler Radke asked about a recent Postgres displacement, seeking details on the competitive environment and use cases. He also questioned what drove the better-than-planned Atlas consumption if it wasn't macro-related.

Answer

CEO Dev Ittycheria positioned MongoDB's advantages over Postgres as schema flexibility, horizontal scaling, and superior developer productivity. CFO Michael Gordon described the Atlas consumption beat as being within a typical range of outcomes, not a signal of macro change, and noted that while newer workload cohorts performed slightly better, they remain below original expectations.

Tyler Radke followed up on the LiveVox headwinds, asking about their impact on Q3 and Q4 and whether the 12% quarterly cloud growth target is still achievable. He also inquired about the large deal pipeline.

Answer

CFO Beth Gaspich reiterated full confidence in achieving 12% cloud growth for the full year, confirming it is expected for Q3. She clarified that the LiveVox headwind is already factored into results and is a primary reason the company may not significantly outperform the 12% target. CEO Scott Russell confirmed the large deal pipeline remains strong, noting that customer decisions are increasingly influenced by a platform's integrated AI capabilities, which is a key strength for NICE.

Tyler Radke questioned the impact of LiveVox headwinds on Q3 and Q4 cloud growth and asked about the large deal pipeline, sales cycles, and the revenue ramp from major contracts.

Answer

CFO Beth Gaspich reiterated confidence in achieving 12% cloud growth for the full year, noting this target is expected to be met in Q3, but acknowledged LiveVox's performance pressures the ability to outperform the 12% goal. CEO Scott Russell confirmed a strong pipeline of large deals, stating that customers are increasingly focused on integrated AI capabilities during their evaluation, which benefits NICE.

Tyler Radke asked about the impact of LiveVox headwinds on Q3 and Q4 cloud growth and whether the 12% annual target is still achievable quarterly. He also inquired about the large deal pipeline and revenue ramp from recent wins.

Answer

CFO Beth Gaspich reiterated full confidence in achieving 12% cloud growth for the full year, clarifying that the LiveVox impact is already factored into results and primarily pressures their ability to outperform the 12% target. CEO Scott Russell confirmed a strong pipeline of large deals for H2 2025 and into 2026, noting that enterprise buyers are increasingly focused on integrated platforms with robust AI capabilities.

Tyler Radke of Citigroup sought details on the impact of LiveVox headwinds on Q3 and Q4 guidance and whether the 12% quarterly cloud growth target is still viable. He also asked about the large deal pipeline and the expected revenue ramp from major contracts.

Answer

CFO Beth Gaspich reiterated full confidence in achieving 12% cloud growth for the full year, noting the LiveVox headwind was already factored in and is a reason the company isn't outperforming the 12% target. CEO Scott Russell confirmed a strong pipeline of large deals for H2 2025 and into 2026, stating that buying decisions now heavily involve evaluating a platform's integrated AI capabilities, which plays to NICE's strengths.

Tyler Radke asked for more details on the record expansion deal's size and scope, inquired about usage trends among AI-native customers, and questioned the recent gross margin compression, asking where it might bottom out and when the related investments would monetize.

Answer

Founder, CEO & Director Spenser Skates described the record deal as a multi-million dollar expansion with a technology company making a big bet on Amplitude for a core part of its platform. He noted that AI-native customers are still a very small percentage of the overall base. CFO Andrew Casey addressed gross margins, explaining the compression is due to investments in professional services to build the partner ecosystem and higher data ingestion costs, which he views as a prelude to future revenue.

Ashley Kim, on for Tyler Radke, noted the softness in total customer ads despite strong growth in >$100k ARR customers and asked about any changes in top-of-funnel trends or dynamics among different customer segments.

Answer

CFO Andrew Casey clarified that the company is not focused on the total customer count metric, calling it 'a little deceptive' because it includes lower-value 'Plus' customers. He emphasized that the business is being built around the enterprise segment, which is why they highlight the growth in customers with over $100,000 in ARR as the key indicator of their strategic progress.

Speaking for Tyler Radke, an analyst asked about the momentum of Amplitude's newer products and the extent to which this is factored into the 2025 guidance. She also requested more color on the key accounts being watched for potential churn.

Answer

CFO Andrew Casey explained that the guidance reflects the total platform value and broader enterprise strategy, not any single new product, though new products are the "fuel" for growth. CEO Spenser Skates clarified the risk with key accounts is primarily "contraction" (reducing spend at renewal) rather than "churn" (leaving entirely). He stated this risk has significantly decreased as most large customers are now "right-sized."

Tyler Radke from Citigroup asked for the key drivers behind the improved outlook for net new customer additions and average subscription revenue per customer (ASRPC) for the second half of the year.

Answer

CFO Kate Bueker advised against overreacting to quarterly changes but noted that Q2 net additions were strong, driven by an uplift in free-to-starter conversions and a pricing promotion. She also cited consistent momentum in the Professional and Enterprise tiers. For the back half of the year, she guided for net additions to be at the high end of the 9,000-10,000 range and for ASRPC to be up about a point in constant currency, reflecting this steady performance.

Tyler Radke from Citigroup asked for the key drivers behind the improved outlook for new customer additions and ASRPC, questioning if it was due to a better macro view or organic improvements in lead generation.

Answer

CFO Kate Bueker advised against overreacting to quarterly changes but noted that Q2 net additions were strong due to an uplift in free-to-starter conversions and a pricing promotion. She stated the professional and enterprise tiers showed consistent momentum. The improved outlook reflects this solid performance, with expectations for net adds to be at the high end of the 9,000-10,000 range and ASRPC to be up about a point.

Tyler Radke noted that the full-year revenue guidance was raised by more than the Q3 beat, unlike in prior quarters, and asked if FX was a factor or what else was driving the increased confidence.

Answer

CFO Kathryn Bueker clarified that the guidance assumes the macro environment will remain consistent. She explained the math: the Q3 beat of $24 million was flowed through, and an additional $3 million was added to the full-year guidance to reflect incremental FX benefits expected in Q4. On a constant currency basis, the Q4 outlook remains unchanged from prior guidance.

Tyler Radke of Citigroup asked for more detail on the planned Q3 ramp in performance marketing spend, its drivers, and the ROI observed since the strategy shifted a year ago.

Answer

CFO Jeff Hoffmeister explained that the marketing investment is working, as evidenced by strong GMV and revenue growth. He noted that internal data models have improved, and the year-over-year spending increase is partly due to a lower base in Q3 of last year when they were testing. He clarified it's a broad-based investment supporting growth across geographies and products, not a catch-up in a specific segment.

Tyler Radke asked for details on the Q2 ARR outperformance, questioning if the deal pull-ins from Q3 were driven by customer demand or better sales execution and whether the deals were stronger than expected. He also questioned why profitability guidance wasn't raised more significantly despite cost optimizations.

Answer

President and CEO Steve McMillan attributed the strong Q2 deal execution to improved linearity and sales team performance, noting strong customer interest in Teradata's hybrid platform for both on-prem and cloud. CFO John Ederer explained that while there were cost optimizations, the company is reinvesting some savings into R&D to support its profitable growth strategy. He noted that maintaining operating margin guidance despite revenue headwinds is a significant achievement.

Speaking on behalf of Tyler Radke, an analyst asked for details on the pipeline mix (new logos vs. expansion) that underpins the 2025 growth forecast and questioned the expected impact from open table formats.

Answer

CFO Claire Bramley stated the pipeline is an approximate 50/50 mix of migrations and expansions, with new logos expected to be a small contributor in 2025. CEO Stephen McMillan added that innovations like the enterprise vector store represent significant upside potential that is not heavily factored into the 2025 outlook.

Tyler Radke asked for the underlying reasons behind the 'staged migrations,' questioning if it's a macro-driven decision and whether it's a broader trend. He also asked if the company still expects to reach $1 billion in cloud ARR by 2026.

Answer

CEO Stephen McMillan stated the shift is concentrated in a handful of very large deals where customers are taking a 'less risk' approach to their transformations, not a broader market trend. CFO Claire Bramley confirmed that Teradata still sees a path to its $1 billion cloud ARR target in 2026, noting that while some revenue is delayed, the customer commitment to migrate remains.

Tyler Radke from Citigroup inquired if upcoming Copilot renewals could serve as a catalyst to re-accelerate NRR and asked if the 20%+ growth in the Operations Hub represented an acceleration from the prior quarter.

Answer

CFO Graham O'Brien noted that early Copilot renewal cohorts are showing 'meaningfully better' outcomes, which could provide a tailwind to retention. He confirmed that the 20%+ growth for the Operations solutions was consistent with the prior quarter, with no signs of deceleration.

Tyler Radke from Citigroup questioned if upcoming Copilot renewals could serve as a catalyst to reaccelerate NRR and asked if the 20%+ growth in the Operations Hub accelerated from Q1.

Answer

CFO Graham O'Brien confirmed that early Copilot renewal cohorts showed 'meaningfully better' outcomes, which could provide an incremental tailwind to retention. He also noted that the 20%+ year-over-year growth for the Operations business was consistent with the prior quarter and had not shown signs of deceleration.

Asked for color on the drivers behind the sequential increase in customers spending over $100,000, including the mix of new versus expansion, and whether this pace is sustainable.

Answer

The growth in the $100k+ customer cohort was attributed to improvements across three areas: more success in acquiring new upmarket customers at that price point, renewed success in upselling existing customers past the $100k threshold, and reduced downsell pressure from customers in that cohort.

Tyler Radke from Citigroup requested more specifics on the emerging solution deals moving into production, asking about contract length and structure. He also inquired about the competitive threat from horizontal SaaS players like ServiceNow entering the insurance market.

Answer

CEO Githesh Ramamurthy confirmed these are multi-year, multi-million dollar contracts and that customers are already expanding volume beyond their initial commitments. Regarding competition, Ramamurthy expressed confidence in CCC's position, contrasting the 'extraordinary depth' of its vertical solutions and integrated network against the broad capabilities of horizontal providers. He emphasized that CCC's specialized AI and ecosystem are significant differentiators.

Tyler Radke of Citigroup Inc. asked about the practical application of Generative AI in modernizing legacy codebases like COBOL and Guidewire's role in enabling this.

Answer

CEO Mike Rosenbaum explained that while direct legacy code conversion is a future possibility, current GenAI applications are focused on more discrete, high-impact tasks like building integrations and generating test cases. He emphasized that true modernization requires rethinking business processes, not just a 'magic button' code conversion.

Tyler Radke of Citigroup asked how customers are using Generative AI for modernizing legacy code and what Guidewire is doing to enable these capabilities.

Answer

CEO Mike Rosenbaum noted that while direct legacy code conversion is a future potential, the current practical applications of GenAI are in creating integration scaffolding, front-end code, and test cases. He emphasized that true modernization involves reinventing business processes, not just replicating old systems with a "magic button."

Tyler Radke asked about the impact of open table formats like Iceberg on Informatica's utilization and whether the updated guidance implies that stronger cloud growth from migrations is offsetting a faster decline in the self-managed business.

Answer

CEO Amit Walia stated it's early for open table formats but noted that customers require data preparation and quality to populate them, driving IPU consumption. CFO Mike McLaughlin clarified that full-year guidance was not changed, only Q4 guidance was established. He reiterated the full-year outlook for each segment (cloud growth >35%, self-managed decline ~13%, maintenance decline ~7%) and stated there were no major changes in the mix-shift assumptions.

Asked for color on the performance in Germany/Europe and for clarification on how the delayed China business and long-term targets reconcile.

Answer

The weak revenue growth in Germany was due to a tough ASC 606 accounting compare from an exceptionally strong Q3 2022; underlying ACV growth in the EMEA region was strong. The 2024 guidance and long-term targets have already factored in an ongoing net headwind from the China situation, and the company is confident in its ability to achieve them despite this.