Core Insights - Bread Financial has made significant progress in strengthening its balance sheet, including debt reduction and improving tangible value, marking a successful transformation post-COVID [1][5] - The company reported that January performance showed favorable credit trends, with losses and delinquencies improving, while loan growth remained flat, indicating potential stabilization [2][6] - Bread Financial has diversified its product offerings beyond private-label cards to include co-brand, direct-to-consumer, and buy now, pay later (BNPL) products, enhancing its market position [4][8] Financial Performance - Non-interest expenses for the fourth quarter were reported at $500 million, with expectations for a slight decrease in the first quarter [1] - The company ended the year with approximately $8.5 billion in direct-to-consumer deposits, aiming for deposits to constitute 50% of total funding [5][17] - Management anticipates long-term loss rates around 6% and reserves near 10%, with expectations for low single-digit loan growth over time [6][14] Customer Targeting - Bread Financial targets "Middle America" consumers, with an average income of about $94,000, who have shown resilience in adapting their spending behavior amid economic challenges [7] - The company emphasizes that its customer base does not primarily include superprime or subprime consumers, focusing instead on a more stable middle-income demographic [7] Product and Market Expansion - The company has expanded its product set to include multiple offerings, providing partners with more choices and increasing the pool of eligible consumers [9] - Bread Financial operates across various verticals, including travel and entertainment, home improvement, and electronics, enhancing its market reach [16] Strategic Initiatives - The management is focused on responsible growth, maintaining positive operating leverage, and continuing technology transformation, including cloud migration and AI applications [18] - The partner pipeline is described as robust, with top 10 partners locked through 2028, indicating strong future collaboration opportunities [15][17]

FEBRUARY 12, 2026 Strategy, innovation, Datadog platform and product Q&A Safe Harbor This presentation and the accompanying oral presentation have been prepared by Datadog, Inc. ("Datadog" or the "company") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Datadog or any officer, director, employee, agent or advisor of Datadog. This presentation does not purport ...

Core Insights - MongoDB (MDB) and Datadog (DDOG) are key players in the cloud software sector, with MongoDB focusing on flexible database solutions and Datadog on observability and monitoring tools [1][8] - The global cloud infrastructure services market is expected to grow from $254.59 billion in 2026 to $545.03 billion by 2031, driven by cloud migration and AI workloads [2] MongoDB (MDB) Insights - MongoDB's growth is fueled by its Atlas offering, which accounts for 75% of total revenues, reflecting a shift towards consumption-based models [4][6] - The platform's document-oriented architecture allows for better handling of unstructured data, making it suitable for AI applications [5] - MongoDB serves over 70% of the Fortune 100 and has a customer base exceeding 62,500, indicating strong market penetration [6] - The Zacks Consensus Estimate for MDB's fiscal 2027 EPS is $5.61, suggesting a year-over-year growth of 17.23% [7] Datadog (DDOG) Insights - Datadog provides a unified platform for observability but faces challenges due to market commoditization and limited differentiation in AI workloads [8][10] - The company serves over 32,700 customers and has over 1,000 integrations, but its AI capabilities are more about enhancing existing processes rather than creating new applications [11] - The Zacks Consensus Estimate for DDOG's 2027 EPS is $2.74, indicating a year-over-year growth of 20.93% [12] Price Performance and Valuation - Over the past six months, MongoDB shares have increased by 75.7%, while Datadog shares have decreased by 1.1%, highlighting MongoDB's stronger market performance [13] - MongoDB trades at a forward price-to-sales ratio of 10.27x, compared to Datadog's 10.75x, suggesting a relative discount for the faster-growing MongoDB [16] - The valuation premium for Datadog is difficult to justify given the commoditization of the observability market [16] Conclusion - MongoDB's growth trajectory and its role as an operational database for AI applications position it favorably against Datadog, which is facing challenges in a commoditized market [18] - Investors looking for high-growth cloud software opportunities with AI potential may find MongoDB to be the superior investment choice [18]

Financial Data and Key Metrics Changes - For the fiscal first quarter ended December 31, 2025, the company generated $12 million in revenue, down from $15.7 million in the same period last year [44] - Product revenue decreased to $6.7 million from $11 million, primarily due to a lack of one-time transactions that totaled approximately $4.5 million in the prior year [44] - Service revenue increased by 14.6% to $5.3 million from $4.7 million in the previous year [44] - Gross profit for the quarter was $4.7 million, slightly up from $4.6 million, with gross profit margins increasing to 39.3% from 29.1% [45] - Net income for the first quarter was $91,000 compared to $42,000 in the prior year, with diluted earnings per share at $0.01, down from $0.05 [47] Business Line Data and Key Metrics Changes - The technology solution business continues to lead progress, with strong performance in managed cloud and managed service practices [10][34] - The managed service practice has signed new customers expected to generate nearly six figures in monthly revenue starting this quarter [12][36] - The AZT PROTECT product suite achieved year-over-year revenue growth, serving 46 unique customers, with potential for multi-site installations [38][39] Market Data and Key Metrics Changes - The company benefits from the growing trend of organizational migration to the cloud, with Microsoft Azure being a market leader [11][35] - The customer retention rate remains extremely high, contributing to expanding gross margins in the service segment [13] Company Strategy and Development Direction - The strategic focus is on expanding service revenue and growing the monthly recurring revenue (MRR) base [8] - The company is pursuing opportunities in both the services side of the business and the AZT PROTECT product line [122] - Investments in the managed service practice are expected to yield returns through new customer signings [12][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that fiscal 2026 is shaping up to be a growth year for the company, despite tough year-over-year comparables [7][9] - The company is focused on executing its core growth strategies to build long-term shareholder value [7] - Management acknowledged the challenges in the procurement process but remains committed to overcoming them [41] Other Important Information - The company plans to pay a dividend of $0.03 per share on March 12 to shareholders of record as of February 26 [48] - Increased interest income rose by 23% over the prior year due to financing deals and cash interest [47] Q&A Session Summary Question: Clarification on service revenue categories - Management confirmed that service revenue includes multiple categories, including managed services [51][56] Question: Revenue predictability from Acronis integration - Management stated that it is too early to quantify revenue from the integration with Acronis, as APIs are still being built [77][78] Question: Share repurchase plans - Management indicated plans to repurchase shares now that the blackout period has ended [79][80] Question: Financing role and cash flow - Management confirmed that the company continues to engage in financing roles with customers, which helps maintain relationships [96] Question: Multi-site customer approvals - Management detailed that approvals for multi-site installations are ongoing, with some occurring in the current quarter [99][100]

Financial Data and Key Metrics Changes - For the fiscal first quarter ended December 31, 2025, the company generated $12 million in revenue, down from $15.7 million in the same period last year [34] - Product revenue decreased to $6.7 million from $11 million, primarily due to the absence of one-time transactions totaling approximately $4.5 million from the previous year [34] - Service revenue increased by 14.6% to $5.3 million from $4.7 million year-over-year [34] - Gross profit for the quarter was $4.7 million, slightly up from $4.6 million, with gross profit margins increasing to 39.3% from 29.1% [35] - Net income for the first quarter was $91,000 compared to $42,000 in the prior year, with diluted earnings per share at $0.01, down from $0.05 [36] Business Line Data and Key Metrics Changes - The technology solutions business continues to lead progress, with strong performance in managed cloud and managed service practices [6][28] - The managed service practice signed new customers expected to generate nearly $100,000 in monthly revenue starting this quarter [7][29] - The AZT Protect product suite achieved year-over-year revenue growth, serving 46 unique customers, with potential for multi-site installations [30] Market Data and Key Metrics Changes - The company is benefiting from the trend of organizational migration to the cloud, with increasing demand for operational support services post-migration [7][28] - The market for cybersecurity solutions is expanding, with the company positioned as a resource for enterprises facing operational technology cybersecurity challenges [31] Company Strategy and Development Direction - The strategic focus is on expanding service revenue and growing the monthly recurring revenue (MRR) base [5] - The company aims to leverage partnerships, particularly with Microsoft Azure, to enhance its managed service offerings [7][28] - Investments in the managed service practice are expected to yield returns through new customer acquisitions [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that fiscal 2026 will be a growth year, supported by infrastructure investments and a strong service segment [6][34] - The company anticipates generating substantial operating leverage as revenue grows, with a focus on maintaining high customer retention rates [8][34] Other Important Information - The company plans to pay a dividend of $0.03 per share on March 12, 2026, to shareholders of record as of February 26, 2026 [37] Q&A Session Summary Question: Clarification on service revenue categories - Management confirmed that service revenue includes multiple categories, with managed services being a significant portion [41][46] Question: Revenue predictability from Acronis integration - Management indicated that it is too early to quantify revenue from the integration with Acronis, as the APIs are still being built [67][68] Question: Share repurchase plans - Management confirmed plans to repurchase shares now that the blackout period has ended, indicating confidence in the company's stock [70][71] Question: Financing and customer repayment structure - Management clarified that the company continues to engage in financing roles with customers, which helps maintain strong relationships [87][88] Question: Multi-site customer approvals - Management provided insights into the timing of approvals for multi-site installations, indicating a growing frequency of such occurrences [90][92]

Financial Data and Key Metrics Changes - For the fiscal first quarter ended December 31, 2025, the company generated $12 million in revenue, down from $15.7 million in the same period last year [36] - Product revenue decreased to $6.7 million from $11 million, primarily due to the absence of one-time transactions totaling approximately $4.5 million from the previous year [36] - Service revenue increased by 14.6% to $5.3 million from $4.7 million in the prior year [36] - Gross profit for the quarter was $4.7 million, slightly up from $4.6 million, with gross profit margins increasing to 39.3% from 29.1% [37] - Net income for the first quarter was $91,000 compared to $42,000 in the prior year, with diluted earnings per share at $0.01, down from $0.05 [38] Business Line Data and Key Metrics Changes - The technology solution business continues to lead progress, with strong performance in managed cloud and managed service practices [6][30] - The managed service practice signed new customers expected to generate nearly $100,000 in monthly revenue starting this quarter [8][31] - The AZT Protect product suite achieved year-over-year revenue growth, serving 46 unique customers, with potential for multi-site installations [9][32] Market Data and Key Metrics Changes - The company benefits from the growing trend of organizational migration to the cloud, with increasing demand for operational support services [7][30] - Microsoft Azure is identified as the market leader in cloud services, with the company being a platinum partner [8][30] Company Strategy and Development Direction - The strategic focus is on expanding service revenue and growing the monthly recurring revenue (MRR) base [5] - The company aims to leverage its differentiated cybersecurity solutions to capture market opportunities and enhance customer retention [9][34] - Investments in the managed service practice are expected to yield returns through new customer acquisitions [8][31] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence that fiscal 2026 will be a growth year, supported by infrastructure investments and a strong service business [6][35] - The company anticipates generating substantial operating leverage as revenue grows, with a focus on executing its growth strategies [35] Other Important Information - The company plans to pay a dividend of $0.03 per share on March 12, 2026, to shareholders of record as of February 26, 2026 [39] Q&A Session Summary Question: Clarification on service revenue categories - Management confirmed that service revenue includes multiple categories, not just managed services [42][43] Question: Revenue from managed services - The total service revenue of $5.3 million includes managed services, but specific breakdowns are not provided [46][50] Question: Integration with Acronis Cyber Protect - Management acknowledged that AZT will be integrated into Acronis Cyber Protect, enhancing the backup service capabilities [52][56] Question: Predictability of revenue from Acronis integration - Management stated it is too early to quantify revenue from the integration as it is still in the development phase [68][70] Question: Share repurchase plans - Management indicated plans to repurchase shares following the end of a blackout period [71][72] Question: Financing role and customer collections - Management confirmed ongoing involvement in financing roles and the collection of payments from customers [82][86] Question: Multi-site customer approvals - Management detailed the process of securing approvals for multi-site installations, indicating progress in customer relationships [91][92] Question: Momentum in customer relationships - Management noted that while progress is being made, it is still early to determine if the growth will be exponential [99][100]

Core Viewpoint - Datadog, Inc. (NASDAQ:DDOG) is recognized as one of the 10 trending AI stocks, with analysts noting strong execution and favorable AI trends despite cautious guidance from the company [1]. Financial Performance - Datadog reported a Q4 revenue growth of 29%, surpassing both guidance and consensus expectations, with operating margins at 24.1% [2]. - The revenue growth was primarily driven by increased demand for cloud migration and digital transformation, supported by higher customer usage [2]. Customer Growth - The total customer count increased by 700, reaching 32.7k in Q4, with cloud migration and digital transformation initiatives continuing to drive demand, alongside contributions from AI-native customers [3]. Future Outlook - Large deal activities in the quarter resulted in a significant surge in bookings. Although management's FY26 revenue growth guidance of 18.5% to 19.6% appears conservative, confidence remains in Datadog's growth trajectory and market expansion efforts [4].

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $1.16 billion, a 4.1% increase year-over-year and 3.5% in constant currency, slightly above guidance [4][24] - Non-GAAP diluted earnings per share was $1.81, exceeding guidance due to a lower-than-expected tax rate [4][26] - The 12-month backlog increased to $4.25 billion, up $60 million sequentially and 2.7% from a year ago [5][31] Business Line Data and Key Metrics Changes - Managed services revenue was $746 million, up 2.3% year-over-year, accounting for approximately 65% of total revenue [26] - The acquisition of MATRIXX Software contributed immaterial revenue in Q1 as the deal closed late in the quarter [24] Market Data and Key Metrics Changes - North America revenue increased nearly 4% year-over-year, while Europe saw a 17% increase driven by organic growth and the acquisition of Profinit [24] - The rest of the world experienced a decline year-over-year but showed slight improvement sequentially [24] Company Strategy and Development Direction - The company aims to position itself as a market leader in the GenAI era, focusing on generative AI and data services [4][8] - A new multi-year agreement with T-Mobile was signed, which includes managed services, software development, and AI innovation [5][6] - The acquisition of MATRIXX Software for $197 million is expected to enhance the company's capabilities in billing and monetization solutions [7] Management's Comments on Operating Environment and Future Outlook - Management expects revenue decline with T-Mobile in fiscal 2026 due to lower spending [6][41] - The company is closely monitoring customer demand and spending behavior amid a challenging macroeconomic environment [16] - Guidance for fiscal 2026 remains at a revenue growth of 1% to 5% in constant currency [17][32] Other Important Information - The company announced the retirement of CEO Shuky Sheffer, with Shimie Hortig set to succeed him [17][19] - Free cash flow for Q1 was $237 million, equating to approximately 33% of the full-year target [28][30] Q&A Session Summary Question: Details on T-Mobile agreement - The new agreement with T-Mobile is a five-year contract covering managed services, development services, and AI-related activities, but revenue is expected to decline in 2026 due to lower spending [38][41] Question: MATRIXX acquisition strategy - The acquisition adds a new charging engine and customer base, enhancing the company's market position in billing and monetization [44][45] Question: Unique aspects of the new agentic operating system (AOS) - AOS is a next-generation platform for GenAI that can operate on any BSS/OSS infrastructure, expected to serve as a new growth engine [53][55] Question: Telcos' AI journey and pipeline opportunities - The company is actively working with customers to develop use cases for AI, transitioning from opportunistic to strategic implementations [58][60] Question: Revenue guidance and T-Mobile milestones - The slight revenue beat was not due to a specific customer but reflects overall performance, with multiple ongoing activities for T-Mobile rather than singular milestones [63][65]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $1.16 billion, a 4.1% increase year-over-year and 3.5% in constant currency, slightly above guidance [4][24] - Non-GAAP diluted earnings per share was $1.81, exceeding guidance due to a lower-than-expected tax rate [4][26] - Non-GAAP operating margin improved by 40 basis points year-over-year to 21.6% [24][26] - The 12-month backlog increased to $4.25 billion, up $60 million sequentially and 2.7% from a year ago [5][31] Business Line Data and Key Metrics Changes - Managed services revenue was $746 million, up 2.3% year-over-year, accounting for approximately 65% of total revenue [26] - The acquisition of MATRIXX Software contributed immaterial revenue in Q1 as the deal closed late in the quarter [24][26] Market Data and Key Metrics Changes - North America revenue increased nearly 4% year-over-year, marking the fourth consecutive quarter of sequential growth [24] - Europe saw a 17% year-over-year increase, driven by organic growth and the acquisition of Profinit [24] - The rest of the world experienced a decline year-over-year but showed slight improvement sequentially [24] Company Strategy and Development Direction - The company aims to position itself as a market leader in the GenAI era, focusing on generative AI and data services [4][8] - A new multi-year agreement with T-Mobile includes managed services, software development, and AI innovation [5][6] - The acquisition of MATRIXX Software for $197 million is seen as a strategic move to enhance billing and monetization solutions [7][8] - The company is focused on expanding its global customer footprint and diversifying its market presence [6][16] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth of 1% to 5% in constant currency for fiscal 2026, reiterating guidance despite macroeconomic uncertainties [17][32] - The company is closely monitoring customer demand and spending behavior in the current economic environment [16][32] - Management expressed confidence in the long-term strategy and leadership team, with a planned transition in executive leadership [18][19] Other Important Information - The company repurchased $146 million of its shares during the quarter, with $840 million remaining in repurchase authority [30] - Free cash flow before restructuring payments was $237 million, equating to approximately 33% of the full-year target [28][30] Q&A Session Summary Question: Details on T-Mobile agreement and revenue trajectory - The new agreement with T-Mobile is a five-year contract covering managed services and AI-related activities, but revenue is expected to decline in 2026 due to lower spending [38][41] Question: Strategic value of MATRIXX acquisition - The acquisition adds a tier-two charging engine and a strong customer base, enhancing the company's capabilities in billing and monetization [44][45] Question: Unique aspects of the new agentic operating system (AOS) - AOS is a next-generation platform for GenAI that can operate on any BSS/OSS infrastructure, expected to serve as a new growth engine [53][55] Question: Progress of telcos in AI initiatives - The company is working with customers to develop various use cases, transitioning from opportunistic to strategic AI implementations [58][60] Question: Revenue guidance and T-Mobile milestones - The slight revenue beat was not due to any specific customer, and the T-Mobile agreement involves multiple ongoing activities rather than singular milestones [63][65]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $1.16 billion, a 4.1% increase year-over-year and 3.5% in constant currency, slightly above guidance [4][26] - Non-GAAP diluted earnings per share (EPS) was $1.81, exceeding guidance due to a lower-than-expected tax rate [4][28] - Non-GAAP operating margin improved by 40 basis points year-over-year to 21.6% [28] Business Line Data and Key Metrics Changes - Managed services revenue was $746 million, up 2.3% year-over-year, accounting for approximately 65% of total revenue [28] - The 12-month backlog increased to $4.25 billion, up $60 million sequentially and 2.7% from a year ago [5][31] Market Data and Key Metrics Changes - North America revenue increased nearly 4% year-over-year, while Europe saw a 17% increase driven by organic growth and the acquisition of Profinit [26] - The rest of the world experienced a decline year-over-year but showed slight improvement sequentially [26] Company Strategy and Development Direction - Amdocs aims to position itself as a market leader in the GenAI era, focusing on generative AI and data services [4] - The company announced a multi-year agreement with T-Mobile, which includes software development and AI innovation [5][6] - Amdocs is expanding its global customer footprint and diversifying internationally through organic and inorganic growth [7][8] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth of 1% to 5% in constant currency for fiscal 2026, reiterating guidance despite macroeconomic uncertainties [18][32] - The company is closely monitoring customer demand and spending behavior in the current economic environment [17] Other Important Information - Amdocs completed the acquisition of MATRIXX Software for $197 million, enhancing its capabilities in billing and monetization solutions [8] - The company is developing a next-generation AI platform, AOS, which is expected to be showcased at Mobile World Congress [11][56] Q&A Session Summary Question: Details on the T-Mobile agreement - The agreement is a five-year contract covering managed services, development services, and AI-related activities, but revenue is expected to decline in 2026 due to T-Mobile's lower spending [39][42] Question: Strategic value of the MATRIXX acquisition - The acquisition consolidates a competitor and adds a charging engine for tier-two customers, enhancing Amdocs' market position [45][47] Question: Unique aspects of the new agentic operating system (AOS) - AOS is a next-generation platform that integrates with existing BSS/OSS infrastructures, expected to serve as a growth engine for Amdocs [56][58] Question: Progress of telcos in AI initiatives - Telcos are moving from opportunistic to strategic use of AI, with AOS providing a holistic solution to leverage this technology [60][62]