Financial Data and Key Metrics Changes - In Q1 2026, total revenue was $80.1 million, and billings were $63.9 million, exceeding guidance [25] - Subscription Remaining Performance Obligations (RPO) grew 24% year over year, with long-term subscription RPO up 61% year over year [6][27] - Gross retention improved to 86% from 85% in Q4 and 83% a year ago, while net retention was 94%, up more than four percentage points year over year [26] Business Line Data and Key Metrics Changes - Subscription Total Contract Value (TCV) increased by 69% year over year, indicating strong demand for long-term contracts [6] - Sales force productivity increased over 60% year over year, reflecting improved efficiency in sales operations [7][8] Market Data and Key Metrics Changes - Consumption customers now represent over 70% of Annual Recurring Revenue (ARR), with expectations to reach 90% by year-end [9] - The pipeline generated through ecosystem partners has increased significantly, with partner-sourced leads and deals up more than 200% from the previous quarter [18] Company Strategy and Development Direction - The company is focusing on driving adoption of AI across its platform, enhancing customer relationships, and developing its ecosystem of partners [12][14] - The transition to a consumption-based pricing model is expected to deliver higher usage, customer satisfaction, and retention [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macro environment is challenging, customer interest in leveraging AI is driving positive activity [34] - The company expects to exit FY 2026 with 5% billings growth and a 5% operating margin, with plans to double these figures by FY 2027 [10][24] Other Important Information - The company achieved positive adjusted free cash flow of $1.3 million in Q1, a significant improvement from the previous year [27] - The non-GAAP subscription gross margin increased to 81.6%, with expectations to maintain this level in the near term [28] Q&A Session Summary Question: How is the macro environment affecting the business? - Management indicated that while the macro environment is not ideal, customer interest in AI solutions is driving positive activity [34] Question: Can you elaborate on the increase in sales productivity? - The increase in sales productivity is attributed to the consumption model and improved relationships with cloud data warehouse partners [39] Question: What is driving the strong growth in RPO? - The growth in RPO is driven by strong technology, the consumption model, and improved customer relationships leading to longer-term contracts [52] Question: How do you see gross margin trajectory over the medium term? - The company expects subscription gross margin to remain around 81.6% in the near term, with long-term goals for improvement [58] Question: How are enterprise and commercial spaces performing? - The enterprise segment remains a significant part of the business, with many leads coming from partnerships, indicating growth opportunities [61]

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. KLA (KLAC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.KLA is a member of the Computer and Technology sector. This group includes 607 in ...

Core Viewpoint - Autodesk (ADSK) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended April 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for release on May 22, 2025, and could lead to a stock price increase if the results exceed expectations, while a miss could result in a decline [2]. - The consensus estimate for Autodesk's quarterly earnings is $2.14 per share, reflecting a year-over-year increase of +14.4%, with revenues projected at $1.61 billion, up 13.4% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.08% over the last 30 days, indicating a reassessment by analysts [4]. - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is higher than the consensus, resulting in a positive Earnings ESP of +0.05%, indicating a likelihood of beating the consensus EPS estimate [10][11]. Earnings Surprise History - Autodesk has a history of exceeding consensus EPS estimates, having beaten expectations in the last four quarters, including a +7.51% surprise in the most recent quarter [12][13]. Industry Comparison - Domo (DOMO), another player in the Zacks Internet - Software industry, is expected to report earnings of $0.20 per share for the same quarter, representing a year-over-year change of +39.4%, but with a projected revenue decline of 2.8% [17]. - Domo's consensus EPS estimate has been revised down by 2.4% in the last 30 days, resulting in a negative Earnings ESP of -2.50%, making it challenging to predict a beat against the consensus [18].

Core Insights - Getty Images Holdings, Inc. reported a quarterly loss of $0.14 per share, significantly missing the Zacks Consensus Estimate of $0.03, marking an earnings surprise of -566.67% [1] - The company generated revenues of $224.08 million for the quarter ended March 2025, which was 4.71% below the Zacks Consensus Estimate, but slightly above the year-ago revenues of $222.28 million [2] - The stock has underperformed the market, losing about 13% since the beginning of the year compared to the S&P 500's decline of -3.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $236.26 million, and for the current fiscal year, it is $0.10 on revenues of $948.07 million [7] - The estimate revisions trend for Getty Images is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Getty Images belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a relatively strong industry performance [8] - Another company in the same industry, Domo, is expected to report a quarterly loss of $0.20 per share, with revenues projected to decline by 2.8% year-over-year [9]

Company Performance - Ziff Davis reported quarterly earnings of $1.14 per share, exceeding the Zacks Consensus Estimate of $1.10 per share, but down from $1.27 per share a year ago, representing an earnings surprise of 3.64% [1] - The company posted revenues of $328.64 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.58% and up from $314.49 million year-over-year [2] - Over the last four quarters, Ziff Davis has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Ziff Davis shares have declined approximately 41.8% since the beginning of the year, in contrast to the S&P 500's decline of 4.3% [3] - The current Zacks Rank for Ziff Davis is 4 (Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $333.38 million, and for the current fiscal year, it is $6.72 on revenues of $1.45 billion [7] - The outlook for the Internet - Software industry is relatively strong, ranking in the top 37% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Company Performance - ON24 reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.03, and compared to earnings of $0.02 per share a year ago, representing an earnings surprise of 66.67% [1] - The company posted revenues of $34.73 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.44%, but down from $37.73 million year-over-year [2] - Over the last four quarters, ON24 has exceeded consensus EPS estimates four times and topped consensus revenue estimates four times as well [2] Stock Performance - ON24 shares have declined approximately 27.6% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $35.23 million, and for the current fiscal year, it is $0.01 on revenues of $139.37 million [7] Industry Outlook - The Internet - Software industry, to which ON24 belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ON24's stock performance [5]

Group 1 - Domo is a member of the Computer and Technology sector, which includes 609 individual stocks and holds a Zacks Sector Rank of 9 [2] - Domo currently has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for Domo's full-year earnings has increased by 5.4% in the past quarter, reflecting improved analyst sentiment [3] Group 2 - Domo has returned 6.4% year-to-date, outperforming the average loss of 8.9% in the Computer and Technology sector [4] - Automatic Data Processing (ADP) is another stock in the sector that has outperformed, with a year-to-date return of 2% [4] - Domo belongs to the Internet - Software industry, which includes 168 companies and currently ranks 143 in the Zacks Industry Rank, with an average loss of 3.1% this year [6] Group 3 - Investors should continue to monitor Domo and Automatic Data Processing for potential sustained solid performance in the Computer and Technology sector [7]

Financial Data and Key Metrics Changes - In Q4, the company exceeded guidance for billings, revenue, non-GAAP EPS, and adjusted free cash flow [2][3] - Total revenue for Q4 was $78.8 million, with subscription revenue making up 91% of that amount [3] - Q4 billings reached $102.6 million, and subscription RPO growth accelerated to 14% year over year, while long-term subscription RPO growth accelerated to 38% year over year [2][3] Business Line Data and Key Metrics Changes - The year-over-year percentage improvement in sales rep productivity was the best seen in four years [3] Market Data and Key Metrics Changes - The company is seeing a significant increase in activity from its partner ecosystem, particularly with CDWs [22][26] Company Strategy and Development Direction - The company has focused on re-architecting its operations to enhance its ecosystem, which includes product and customer experience improvements [15] - There is a strong emphasis on partnerships with CDWs, ISVs, and hyperscalers, which are expected to contribute significantly to revenue and billings [21][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted free cash flow for Q1 and fiscal year 2026, indicating a turnaround in cash generation [2] - The management noted that conversion rates for partner deals are significantly higher than for non-partner deals, which is a positive indicator for future growth [28] Other Important Information - The company reported a free cash flow result of $6 million in Q4, the highest in its history, with cash balances increasing from approximately $40 million to over $45 million during the quarter [11] Q&A Session Summary Question: Can you comment on the partnerships with Snowflake and Databricks? - Management highlighted that they have made significant progress in focusing on the ecosystem and have seen substantial activity with CDWs [15][22] Question: How is the transition to the consumption model progressing? - Management noted that they are seeing a meaningful percentage of new logos and billings derived from their channel ecosystem [17][21] Question: What are the plans for go-to-market strategies in the upcoming year? - Management indicated that they will continue to shift more resources towards the ecosystem and focus on hiring individuals with relevant experience [19] Question: Can you provide an update on the partner ecosystem? - Management confirmed that leads from partners are coming in steadily, and conversion rates for partner deals are significantly higher than for non-partner deals [28]

Financial Data and Key Metrics Changes - In Q4, the company exceeded guidance for billings, revenue, non-GAAP EPS, and adjusted free cash flow, with total revenue reaching $78.8 million, of which subscription revenue accounted for 91% [29] - Q4 billings were $102.6 million, and subscription RPO grew to $403.6 million, up 14% year over year, marking the best subscription RPO growth in over two years [30] - Adjusted free cash flow was $6 million in Q4, the highest in the company's history, with cash balance increasing from $40.9 million in Q3 to $45.3 million in Q4 [32][42] Business Line Data and Key Metrics Changes - Subscription RPO beyond twelve months grew 38% year over year, indicating a significant improvement in long-term contracts [30] - Gross retention was 85% in Q4, maintaining this level for three consecutive quarters, with expectations for at least a two percentage point improvement in FY '26 [31] Market Data and Key Metrics Changes - The consumption model has seen significant adoption, with consumption customers achieving gross retention of over 90% and net retention of over 100% [31] - The company has transitioned from 5% of ARR on the consumption model two years ago to over 65% by the end of FY '25, with expectations to approach 90% by the end of FY '26 [10] Company Strategy and Development Direction - The primary growth initiatives for FY '25 included building out the partner network, adding AI innovations, and shifting customers to consumption pricing [11] - The company is focusing on enhancing partnerships with cloud-based data warehouses (CDWs) and system integrators (SIs) to drive growth and improve customer satisfaction [12][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment has led to more organized and well-thought-out purchasing decisions from customers, with no significant recent changes observed [37][38] - The company is optimistic about future growth, expecting to generate positive cash flow in both Q1 and FY '26, while also aiming for improved growth and profitability [35][36] Other Important Information - Domo's AI capabilities have been recognized with several industry awards, highlighting the platform's strength in data analytics and visualization [20][25] - The company is hosting its annual user conference, Domopalooza, on March 21, which will feature new product announcements and customer success stories [26] Q&A Session Summary Question: Can you comment on the macro environment and its effect on customer willingness to purchase? - Management indicated that purchasing decisions are well-organized and backed by metrics, with no recent significant changes in customer behavior [37][38] Question: Can you explain the dynamic between renewals and consumption, and the impact on cash and debt? - The CFO explained that the shift in renewal timing due to consumption conversions resulted in a $5 million shift out of Q1 into other quarters, and expressed satisfaction with the cash flow results and balance sheet [40][42] Question: How are partnerships with Snowflake and Databricks tracking? - Management reported significant progress in partnerships, with ecosystem leads converting at a much higher rate compared to independently generated leads, indicating a positive trend for future growth [49][50] Question: Are there plans for additional tweaks to the go-to-market strategy? - The company plans to continue focusing on the ecosystem and hiring individuals with experience in CDWs, emphasizing customer satisfaction and ROI [58][60] Question: Has recent M&A activity in the data cloud space increased discussions about potential acquisitions? - Management acknowledged openness to M&A opportunities, emphasizing the importance of relationships with multiple CDWs and the value Domo provides as an independent provider [78][81]