Core Insights - PowerPlan has launched Provision NXT, a next-generation SaaS solution for income tax provision, aimed at transforming tax department operations by automating complex calculations and reducing manual reconciliations [1][3][8] Group 1: Product Features - Provision NXT automates ASC 740 and ASC 980 calculations, eliminating manual reconciliations that tax professionals face during close cycles [1][3] - The solution integrates with Tax Fixed Assets (TFA), allowing seamless data flow for tax depreciation and deferred taxes without manual exports or imports [4] - Provision NXT offers enhanced data access for analysis, scenario modeling, and variance explanations, supported by a user-friendly interface rated "10 out of 10" for intuitiveness [5] Group 2: Market Needs and Challenges - A recent study by PowerPlan revealed that 61% of tax professionals consider manual reconciliations their biggest challenge, while 60% believe automating repetitive tasks would significantly improve their processes [3] - The launch of Provision NXT addresses these critical market needs by providing tools that allow tax professionals to focus on strategic decision-making rather than manual tasks [3] Group 3: Continuous Improvement - Provision NXT is built on modern SaaS architecture, enabling quarterly releases for functionality enhancements and compliance updates, allowing tax departments to adapt quickly to new legislation without lengthy implementations [6] - The solution was developed with input from tax professionals with an average of over 15 years of experience, ensuring it meets the real challenges faced by tax departments [7] Group 4: Future Developments - PowerPlan plans to launch all products for accounting, tax, and regulatory compliance as SaaS solutions on the NXT platform in early 2026, providing existing on-premises customers with full functional parity when migrating to the cloud [8]

Core Insights - PowerPlan has appointed Vivek Srivastava as Chief Technology Officer, bringing over 30 years of experience in product innovation and AI capabilities [1][3] - Srivastava's role will focus on accelerating PowerPlan's SaaS product roadmap and enhancing AI capabilities to provide business value for accounting and tax teams [2] - The company is preparing to launch the PowerPlan NXT SaaS platform in 2026, which will integrate its complete portfolio onto next-generation technology [4] Company Developments - The PowerPlan NXT platform builds on the successful PowerPlan Tax Fixed Assets solution, currently used by over 30 leading utilities [4] - The Provision NXT solution, set to launch in December 2025, aims to assist tax teams in closing books faster and with greater confidence [4] - CEO Raphael Shure emphasized the company's ambition and the importance of Srivastava's technical depth and customer-value vision in driving innovation [3] Leadership Background - Prior to joining PowerPlan, Srivastava served as SVP of Product Engineering at OneTrust, where he led modernization initiatives and advanced data and AI capabilities [3] - He has also held senior leadership roles at Manhattan Associates, focusing on the transition from on-premises solutions to SaaS [3] Strategic Vision - Srivastava expressed enthusiasm for enhancing customer value through intelligent automation in the NXT platform, indicating a commitment to building on recent innovations [5] - PowerPlan has over 30 years of experience in helping utility and energy companies make informed financial decisions [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $1,940 million, representing a 13% increase year-over-year, with 7% organic growth and 6% from acquisitions [12][34] - EBITDA for the quarter was $775 million, up 12%, resulting in an EBITDA margin of 39.9% [13][34] - Free cash flow reached $433 million, a 10% increase compared to the previous year, driving TTM free cash flow to over $2,300 million [14][34] Business Line Data and Key Metrics Changes - Application Software segment revenue grew by 17% in total, with organic revenue growth of 6% and EBITDA margins at 42.9% [17][34] - Network segment revenue increased by 6%, with organic revenue growth of 5% and EBITDA margins at 54.6% [22][34] - TEP segment revenue grew by 10% with organic revenue growth of 9% and EBITDA margins at 36.7% [28][34] Market Data and Key Metrics Changes - The acquisition of Subsplash, a cloud-native software provider for faith-based organizations, was announced for $800 million, expected to generate $115 million in revenue and $36 million in EBITDA for the twelve months ending Q3 2026 [9][10] - The U.S. total addressable market (TAM) for Subsplash is estimated at $2.5 billion, with significant potential for international expansion [10] Company Strategy and Development Direction - The company is focused on capital deployment, with over $5 billion available for acquisitions in the next twelve months [8][34] - The strategy emphasizes acquiring vertical market leaders and enhancing organic growth through AI and technology integration [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting resilience in certain sectors like education and healthcare [40][55] - The anticipated impact of the "Big Beautiful Bill" is expected to unlock government contracting opportunities, particularly for Deltek [52][55] Other Important Information - The company is seeing strong momentum in AI initiatives, with approximately 25 AI-enabled products either in market or in development [31][34] - The recent tax legislation is expected to reduce cash tax payments by around $150 million for 2025, benefiting the company's cash flow [14] Q&A Session Summary Question: Can you provide insights on customer focus around productivity and AI? - Management noted high teens bookings in Q2, indicating strong demand for productivity gains through AI tools, particularly in less macro-sensitive sectors [39][40] Question: What is the positioning of payments functionality across the suite? - Payments opportunities are seen as earned through software, with a strategic decision to layer more payments functionality across various platforms [44][45] Question: Did tariff headlines impact business trends? - The impact of tariffs is relatively small, and while there is uncertainty in K-12 education, overall bookings activity remains strong [50][51] Question: What contributed to the high teens bookings? - Strong performance in Aderant and solid healthcare bookings were highlighted as key contributors to the positive trend [58][59] Question: How is AI impacting R&D and revenue? - Significant productivity gains in R&D were reported, with expectations for revenue implications to grow as more AI products are developed [61][62] Question: How does the company decide on investments versus bottom-line returns? - The current focus is on driving growth and competitive advantage rather than prioritizing immediate bottom-line returns [67] Question: What are the dynamics driving Adderant's record quarter? - Adderant's growth is attributed to market share gains and a strong move to cloud solutions, supported by AI-based products [92]