Yi Fu Lee

Yi Fu Lee from Cantor Fitzgerald inquired about the strategic collaborations with AWS and Google BigQuery, the potential size of the opportunity, and the company's path to accelerating top-line growth.

Answer

CEO Josh James and CRO RJ Tracy described the hyperscaler partnerships as a 'big unlock,' enabling a customer-first approach and retiring spend on multiple marketplaces. CFO Tod Crane outlined that future growth will be driven by improving gross retention and new ACV, with tailwinds from multi-year deals, partner channels, and AI infrastructure demand.

Yi Fu Lee of Cantor Fitzgerald inquired about the macro environment's impact, the strategy for replicating partner success across the ecosystem, the drivers behind the significant increase in sales productivity, and how product innovations like Agentic AI are leading to longer-term contracts and higher RPO.

Answer

CEO Josh James stated that while the macro environment is challenging, strong interest in Domo's AI capabilities is driving activity. He explained that success with one key CDW partner is being replicated with others like Databricks and Oracle as product integrations mature. He attributed the over 60% increase in sales productivity to the new consumption model, AI interest, and strong CDW partnerships, which are now yielding tangible results. CFO Tod Crane added that the powerful combination of Domo's technology and consumption model strengthens customer relationships, directly contributing to longer contract durations and the 24% growth in total RPO.

Yi Fu Lee asked for more detail on the partner ecosystem's acceleration, particularly with SIs and Databricks, and inquired about potential M&A conversations in the data space. He also questioned what factors would give management the confidence to raise financial guidance later in the year.

Answer

CEO Joshua James and executive RJ Tracy confirmed strong momentum with CDW and SI partners, noting Databricks is 'coming on quite quickly'. James stated that by proving its value as an independent platform to multiple CDWs, Domo is in a prime position for any future industry consolidation. CFO Tod Crane added that while partner lead conversion rates are high, the company needs to see more predictability in the volume of those leads before it would have the confidence to raise guidance for the second half of the year.

Yi Fu Lee of Cantor Fitzgerald asked for updates on the partner ecosystem, including CDWs, ISVs, and SIs, and specifically about the Databricks partnership. He also inquired about the potential for M&A in the space and what factors would give management confidence to raise guidance later in the year.

Answer

CEO Joshua James and executive RJ Tracy detailed strong momentum with CDW and SI partners, noting positive feedback and a symbiotic relationship that removes sales friction. They highlighted that being an independent platform makes Domo an attractive partner for all CDWs, which is a strong strategic position. Regarding guidance, CFO Tod Crane stated that gaining more predictability on the volume of high-converting partner leads would provide the confidence needed to potentially raise guidance for the second half of the year.

Yi Fu Lee of Cantor Fitzgerald requested metrics on sales cycle acceleration with CDW partners, an update on large software partnerships, and a timeline for when AI would materially impact financial results.

Answer

CRO RJ Tracy confirmed partner deals close about 20 days faster on average. CEO Joshua James reported strong progress with large software partners, highlighting a recent 7-figure deal. CFO Tod Crane indicated a financial inflection would come 'sooner than later,' citing upcoming tailwinds to the net retention rate as prior churn is lapped, alongside momentum from the partner and AI initiatives.

Yi Fu Lee from Cantor Fitzgerald asked for metrics on how much faster deals close with a CDW partner, requested an update on potential partnerships with large ISVs mentioned last quarter, and inquired about the timeline for AI opportunities to impact financials.

Answer

Chief Revenue Officer RJ Tracy stated that partner-involved deals close approximately 20 days faster on average. Founder and CEO Joshua James confirmed progress with large ISV partners, citing a recent 7-figure, 5-year deal closed through a new partner marketing initiative. Regarding the AI timeline, Chief Financial Officer Tod Crane noted that upcoming improvements in net retention from lapping prior churn events, combined with AI and partner tailwinds, will show up in results, with more specifics to be provided on the next call.

Yi Fu Lee of Cantor Fitzgerald inquired about the macro environment's impact, the strategy for scaling success across all cloud data warehouse partners, and the specific drivers behind the 60% increase in sales productivity. He also asked about pipeline generation from the Domopalooza event, customer adoption trends for Agentic AI, and the factors contributing to the significant growth in Remaining Performance Obligations (RPO).

Answer

CEO Joshua James stated that while the macro environment is challenging, strong interest in Domo's AI capabilities is driving activity. He explained that partner growth has been sequential, with success at one partner (Snowflake) providing a model for others like Databricks and Oracle. James attributed sales productivity gains to the new consumption model, AI interest, and strong CDW partnerships. CFO Tod Crane added that the strong RPO growth is a direct result of customers deriving rapid value from the platform's technology and consumption model, leading to longer-term contracts and increased confidence in future margin expansion.

Yi Fu Lee from Cantor Fitzgerald asked about the go-to-market and sales strategy for monetizing the Harmony AI platform. He also inquired about the outlook for other verticals like auto and industrial, and how the 'Big Five' tech win validates Docebo's capabilities post-AWS.

Answer

CEO Alessio Artuffo stated that the current strategy for Harmony is to drive adoption and value first by providing it to all customers, using it as a key differentiator rather than an immediate monetization tool. CFO Brandon Farber noted that while some enterprise verticals still face elongated sales cycles, the 'Big Five' win serves as a powerful reference that proves Docebo's execution and customer success capabilities, which helps in winning other logos.

Yi Fu Lee asked for feedback from the recent Inspire conference and its impact on the sales pipeline. He also inquired about the timeline for monetizing the new Agentic AI capabilities. Finally, he asked about the level of conservatism baked into the revised 2025 guidance.

Answer

CEO Alessio Artuffo highlighted enthusiastic feedback from Inspire on Docebo Creator and a planned UX overhaul, noting the event is a strong lead generator. He explained that for Agentic AI, the priority is shipping a valuable product first, with monetization to follow once customer ROI is clear. CFO Brandon Farber added that the revised guidance is a measured approach that does not factor in potential upside from material FedRAMP revenue or large 'whale' deals in 2025.

Yi Fu Lee from Cantor Fitzgerald asked for customer feedback and traction on the new AI Authoring, Advanced Analytics, and Communities products, and which of them has the most near-term versus long-term potential.

Answer

CEO Alessio Artuffo stated that early impact from all new products has been positive and that all have high potential as they address different customer needs. He elaborated on the AI Authoring strategy, clarifying the goal is not to compete with traditional tools but to make content creation a pervasive, highly efficient, and embedded capability that enables hyper-personalization at scale and delivers rapid ROI.

Yi Fu Lee of Cantor Fitzgerald inquired about Nerdy's ability to capitalize on broader AI education initiatives, the potential for its tools to become an educational standard, and the rollout timeline for its high-dosage tutoring program.

Answer

CEO Chuck Cohn explained that external initiatives like the White House pledge are accelerating AI adoption in schools, where Nerdy is launching over 30 new tools. He affirmed the vision of AI-augmented live instruction becoming a differentiated standard. CFO Jason Pello added that the high-dosage tutoring offering is contributing to what is expected to be a record bookings quarter in Q3, indicating strong market traction.

Yi Lee of Cantor Fitzgerald asked about Nerdy's resilience to macroeconomic pressures, the monetization timeline for its new AI products, and the potential for further AI-driven operational efficiencies.

Answer

CEO Chuck Cohn asserted that Nerdy's performance is not correlated with macro trends and that demand remains healthy. He clarified 'Live + AI' is the unified product offering, with 'AI Session Summaries' being a key feature already driving value. CFO Jason Pello stated Nerdy is halfway through its AI efficiency journey, enabling future scaling without significant headcount growth and keeping costs below target.

Yi Fu Lee from Cantor Fitzgerald posed a multipart question about balancing human interaction with AI, the back-end technology used, and go-to-market needs. He also asked for the consumer/institutional revenue split in the guidance and when AI might accelerate the path to breakeven.

Answer

CEO Chuck Cohn emphasized the company's 'AI for HI' (Artificial Intelligence for Human Interaction) philosophy, where technology enhances rather than replaces human connection. He noted that Nerdy's 10 million hours of proprietary session data and custom LLMs are key technological advantages. CFO Jason Pello clarified that institutional revenue is expected to be about 15% of the 2025 total. He explained that AI drives profitability by enabling significant productivity gains and reducing the need to backfill roles as attrition occurs, directly benefiting the bottom line and accelerating the path to breakeven.

Yi Fu Lee from Cantor Fitzgerald asked about the potential for a larger, transformational M&A deal to accelerate diversification. He also followed up on potential GenAI-related acquisitions and requested more detail on the terminated Latin American contract.

Answer

CEO Brian Shepherd explained that larger M&A would focus on acquiring domain-specific monetization platforms in new verticals or scale acquisitions in the TMT space, but discipline is key. He stated that CSG is unlikely to pursue major AI acquisitions due to high multiples, preferring to use R&D and partnerships. CFO Hai Tran identified the terminated contract as being with Digicel, attributing the change to their organizational shifts and noting the revenue impact was minimal and already factored into guidance.

Yi Fu Lee from Cantor Fitzgerald asked for more detail on CEO Frank Martell's strategic vision, particularly how it differs from the previous leadership. He also questioned the timeline for hardware headwinds to subside, the customer transition to a SaaS model, the path to sustained profitability beyond 2025, and the specifics of the AI product roadmap.

Answer

CEO Frank Martell outlined a vision for expanding SmartRent's presence into every apartment, driven by increased operating leverage and AI investments. CFO Daryl Stemm clarified that SaaS revenue growth is driven by adding new units and increasing SaaS ARPU, noting new bookings average over $8 versus the installed base's $5.66. Stemm also stated the goal is to exit 2025 at a cash flow neutral run rate but did not provide formal 2026 guidance. Martell added that AI will be used for client decision support, service efficiency, and risk detection.

Yi Fu Lee from Cantor Fitzgerald asked for clarity on CEO Frank Martell's new vision compared to the prior CEO, the transition journey for customers to the SaaS model, the outlook for 2026 profitability, and specifics on the AI product roadmap.

Answer

CEO Frank Martell outlined a vision for expanding SmartRent's footprint, gaining operating leverage, and using AI for customer engagement and operational effectiveness. CFO Daryl Stemm clarified that the primary driver for SaaS revenue growth is adding new units, noting that new bookings have a higher ARPU (over $8) than the installed base ($5.66). Stemm stated the company is positioning to exit 2025 at a cash flow neutral run rate but is not yet providing 2026 guidance. Martell added that AI initiatives will focus on data analytics for clients, servicing efficiency, and risk detection.

Yi Fu Lee from Cantor Fitzgerald asked CEO Frank Martell to elaborate on his strategic vision and how it differs from the prior CEO's. He also inquired about the SaaS revenue model adoption, the timeline for hardware headwinds to subside, the path to sustained profitability beyond 2025, and the specifics of the AI product roadmap.

Answer

CEO Frank Martell outlined his vision to expand SmartRent's technology into every apartment by increasing operating leverage and using AI for efficiency and customer value. CFO Daryl Stemm added that SaaS revenue growth is driven by adding new units and that new bookings have a significantly higher ARPU (over $8) than the installed base. Stemm clarified the goal is to exit 2025 at a cash flow neutral run rate but stopped short of giving formal 2026 guidance. Martell noted AI will be used for data-driven client insights, service efficiency, and risk detection.

Yi Fu Lee from Cantor Fitzgerald asked for clarity on CEO Frank Martell's strategic vision compared to his predecessor. He also inquired about the SaaS revenue model adoption, the timeline for hardware headwinds to subside, the path to achieving profitability in 2026, and specifics on the AI product roadmap.

Answer

CEO Frank Martell stated his vision is to make SmartRent technology ubiquitous in the multifamily space by improving operating leverage and investing in AI for customer engagement and operational efficiency. CFO Daryl Stemm clarified that SaaS revenue growth is driven by adding new units and that new bookings have a higher ARPU (over $8) than the deployed base ($5.66). Stemm confirmed the company is positioning to exit 2025 at a cash flow neutral run rate but is not providing formal 2026 guidance. Martell added that AI initiatives will focus on data utilization for clients, service efficiency, and risk detection.

Yi Fu Lee from Cantor Fitzgerald & Co. asked for the rationale behind the recent CEO change and the desired qualities in a new leader. He also inquired about the company's strategy to mitigate tariff impacts and the expected timeline and key proof points for the success of the go-to-market reorganization.

Answer

Interim CEO John Dorman explained the CEO transition was a board-initiated decision unrelated to strategy or performance and that the new leader will have experience scaling recurring revenue businesses. CFO Daryl Stemm detailed tariff mitigation strategies, noting a potential $2 million impact in the second half of the year. Dorman added that while a specific timeline for the go-to-market inflection is uncertain due to various factors, the primary proof point for success will be a sustainable acceleration in bookings.

Yi Fu Lee from Cantor Fitzgerald requested more detail on the "Udemy 2.0" product differentiation, the role of the new CTO, and the path to revenue reacceleration in 2026 after an expected bottom in Q3 2025.

Answer

CEO Hugo Sarrazin explained that new CTO Ozzy Goldsmith's enterprise software scaling experience is vital for building the "Udemy 2.0" platform, which requires a robust backend for multiple monetization models. CFO Sarah Blanchard stated that reacceleration will be driven by monetizing AI demand and improved retention, highlighting that new large customer ARR per logo is up nearly 30% quarter-over-quarter.

Yi Fu Lee of Cantor Fitzgerald asked about the AI opportunity, specifically how it translates to upsell or cross-sell revenue and how the company plans to package its AI offerings.

Answer

CEO Hugo Sarrazin explained that while AI content is currently part of the main Udemy Business offering, the strategy is evolving. The company plans to create targeted, AI-specific packages for different organizational roles at various price points. He also mentioned exploring an 'AI premium' tier or enhancing the 'Pro' SKU. Features like AI-powered role-playing, though currently bundled, could be monetized separately in the future.

Yi Fu Lee asked for observations on corporate spending under the new administration and the timeline for using GenAI to help instructors create assessments, including any early feedback.

Answer

CEO Greg Brown saw no material impact from the new administration yet but noted its focus on skills development aligns with Udemy's mission. CTO Eren Bali revealed the AI assessment tool is already live and scaling, with plans to triple topic coverage in H1 2025 and achieve full platform coverage by 2026.

Yi Fu Lee of Cantor Fitzgerald asked what levers Udemy can pull to stabilize the net dollar retention rate if the macro environment remains unchanged and inquired about the product roadmap priorities for new CTO Eren Bali beyond the current focus on AI.

Answer

CFO Sarah Blanchard stated that focusing on retention, delivering value, and expanding business and soft skills capabilities will create more upsell opportunities. CEO Greg Brown added that new AI products will drive engagement, positively impacting retention. Regarding new CTO Eren Bali, Brown expressed excitement about his return enabling faster innovation but declined to share specific roadmap details.

Yi Fu Lee from Cantor Fitzgerald asked for the specific data points the new CPO and CDO will use to manage the business, inquired about the product roadmap, and sought guidance on gross margin trends.

Answer

CEO Greg Hart outlined the key metrics as traffic, conversion, engagement, retention, and ARPU, which the new leadership will track to drive improvements. He highlighted perpetual investment in Coursera Coach and AI translations as key roadmap priorities. CFO Ken Hahn projected long-term expansion for consumer gross margin but did not forecast a near-term increase, instead pointing to the significant full-year EBITDA margin guidance raise.

Yi Fu Lee asked about the Mandiant partnership's role in penetrating the Google Cloud ecosystem and inquired about future plans for other cloud providers like AWS.

Answer

CEO Bipul Sinha emphasized Rubrik's multi-cloud partnership strategy across Microsoft, Google, and AWS. He described the Mandiant collaboration as a significant step that combines Rubrik's data security intelligence with Mandiant's threat response capabilities on Google Cloud. He affirmed the company will continue to pursue valuable product integrations that benefit customers across its ecosystem.