Financial Data and Key Metrics Changes - Net sales grew 24.6% to $615 million, with product sales increasing 32.2% year-over-year, driven by strong performance in data center, cloud, networking, and security [5][12] - Net earnings from continuing operations increased 129.3% to $33.4 million, with adjusted EBITDA rising 97% to $53.4 million, reflecting a margin of 8.7%, which is 320 basis points higher than the previous year [9][17] - Year-to-date consolidated net sales increased 22.2% to $1.86 billion, with net earnings from continuing operations totaling $98.7 million, a 68.5% increase from the prior year [18] Business Line Data and Key Metrics Changes - Product revenue grew 32.2% year-over-year to $501.9 million, while service revenue totaled $112.8 million, slightly down from $113.6 million in the prior year [12] - Managed services revenue grew 10.5%, while professional services revenue declined 7.8% due to project delays in the retail sector [12][29] - Security gross billings for products and services grew 16.4% year-over-year, with a 27.6% increase over the trailing 12 months, as customers prioritize cybersecurity investments [8] Market Data and Key Metrics Changes - The company saw growth across all customer size segments, with particularly strong performance in the mid-market and enterprise space [4] - Telecom, media, and entertainment accounted for 27% of net sales, while technology, SLED, and healthcare each accounted for 13%, and financial services at 9% [13] Company Strategy and Development Direction - The company is focused on expanding its solutions portfolio, growing professional and managed services capabilities, and extending geographic reach [10] - The strategy emphasizes AI, cloud, security, and networking, which are seen as key growth areas [4][10] - The company is evaluating acquisitions and investments to enhance its position in higher growth areas and support long-term vision [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, supported by industry demand trends and financial flexibility [11] - The company raised its full-year guidance for net sales to 20%-22% year-over-year growth, up from mid-teens, and adjusted EBITDA growth to 41%-43% [22][23] - Potential near-term risks include an industry-wide memory shortage, which could impact customer deployments [23] Other Important Information - The company repurchased over 200,000 shares during the quarter and announced a quarterly dividend of $0.25 per common share [5][20] - Cash and cash equivalents at quarter end totaled $326.3 million, down from $389.4 million, primarily due to working capital needs [19] Q&A Session Summary Question: Nature of outsized projects from enterprise customers - Management noted that mid-market customers had the biggest growth, with some large enterprise customers contributing significantly to Q3 performance, but they do not expect to replicate this in Q4 [26][27] Question: Professional services project delays - Management expects project delays from retail customers to materialize in fiscal 2027, attributing the decline in professional services to a few customers and tough comparisons from the previous year [28][29] Question: Inventory build and project timing - Inventory increased due to demand, and management expects levels to remain inflated in the next several quarters [34] Question: Impact of AI on business - AI is now seen as a tailwind, driving growth in data center, cloud, and networking areas, with customers defining use cases and modernizing legacy systems [36][38] Question: Importance of integrated solutions - Integrated solutions across AI, cloud, and networking are becoming a differentiator for the company, as customers prefer to work with fewer strategic vendors [39]

Financial Data and Key Metrics Changes - Net sales grew 24.6% to $615 million, with product sales increasing 32.2% year-over-year, driven by strong performance in data center, cloud, networking, and security [5][12] - Net earnings from continuing operations increased 129.3% to $33.4 million, with adjusted EBITDA rising 97% to $53.4 million, reflecting a margin of 8.7%, which is 320 basis points higher than the same period last year [9][17] - Year-to-date consolidated net sales increased 22.2% to $1.86 billion, with gross profit rising 23.7% to $469 million [18] Business Line Data and Key Metrics Changes - Product revenue grew 32.2% year-over-year to $501.9 million, while service revenue totaled $112.8 million, slightly down from $113.6 million in the prior year [12][16] - Managed services revenue grew 10.5%, while professional services revenue declined 7.8% due to project delays in the retail sector [12][28] - Security gross billings for products and services grew 16.4% year-over-year, with a 27.6% increase for the trailing twelve months [7] Market Data and Key Metrics Changes - Growth was observed across all customer size segments, particularly in the mid-market and enterprise space [4][5] - Telecom, media, and entertainment accounted for 27% of net sales, while technology, SLED, and healthcare each accounted for 13% [13] Company Strategy and Development Direction - The company is focused on expanding its solutions portfolio, enhancing professional and managed services capabilities, and extending geographic reach [10] - There is an emphasis on AI, cloud, security, and networking as key growth areas, with plans to enhance AI envisioning sessions and acceleration offerings [10][21] - The company is evaluating acquisitions and investments to enhance its position in higher growth areas [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, supported by industry demand trends and financial flexibility [11][21] - The company raised its full-year guidance for net sales to 20%-22% year-over-year growth, up from mid-teens [21] - Potential near-term risks include an industry-wide memory shortage impacting customer deployments [22][23] Other Important Information - The company approved a quarterly dividend of $0.25 per common share and repurchased over 200,000 shares during the quarter [5][20] - Cash and cash equivalents at quarter end totaled $326.3 million, down from $389.4 million at the end of the last fiscal year [19] Q&A Session Summary Question: Nature of outsized projects from enterprise customers - Management noted that mid-market customers had the biggest growth, with some large enterprise customers contributing significantly in Q3, but they do not expect to replicate that in Q4 [26][27] Question: Professional services project delays - Management expects project delays from retail customers to materialize in fiscal 2027, attributing the decline in professional services to a few customers and tough comparisons from the previous year [28] Question: Inventory build and project timing - Management indicated that inventory increased due to demand, and they expect inventory levels to remain inflated in the next several quarters [33] Question: Impact of AI on business - AI is now seen as a tailwind, driving growth in data center, cloud, and networking areas, with customers defining use cases to modernize legacy systems [35][36] Question: Importance of integrated solutions - Management highlighted that offering integrated solutions across AI, cloud, and networking is a key differentiator, as customers prefer to work with fewer strategic vendors [37][38]

Group 1 - Cloudflare, Inc. is transitioning from a usage-based platform to a fundamental enterprise infrastructure platform focusing on security, networking, and AI computation [1] - The company is leveraging its software-defined edge to facilitate this transition [1] Group 2 - The investment style focuses on identifying high-potential winners before they break out, emphasizing asymmetric opportunities with an upside potential of 3-5 times outweighing downside risk [1] - Risk management is prioritized, aiming for a strong margin of safety to protect against capital impairment while maximizing long-term compounding [1] - The investment horizon is set at 2-3 years to ride out volatility, ensuring that patience, discipline, and intelligent capital allocation drive outsized returns over time [1]

Core Insights - Nvidia dominates the data center GPU market and is expanding into networking, particularly with its rack-scale AI solutions [1] - In Q3 fiscal 2026, Nvidia's networking revenue reached $8.2 billion, a 162% increase year over year, driven by demand from major companies building AI data centers [2] - The networking attach rate for Nvidia's AI systems is nearly 90%, indicating strong integration of networking products with AI solutions [4] Networking Growth - The networking requirements for AI data centers differ significantly from standard cloud data centers, necessitating high data throughput for GPU efficiency [5] - Nvidia has captured an 11.6% share of the data center Ethernet switch market, ranking third behind Arista Networks and Cisco Systems [6] - The introduction of the Rubin platform, which integrates GPUs, CPUs, and networking technologies, is expected to enhance networking revenue significantly in 2026 and beyond [7][8] Customer Demand - Nearly 90% of customers purchasing Nvidia AI systems also acquire networking products, highlighting the growing demand for ultra-fast networking gear in large-scale AI data centers [9]

Industry Trend - Peak season for "interlopers" crashing company parties [1] - Individuals attend company parties for learning, networking, and free food/drinks [1] Networking Opportunities - Company parties offer opportunities to learn, network, and grow professionally [1] Cost Saving - Attendees benefit from sponsored free food and drinks at company events [1]

Career & Business Advice - Networking is crucial for career advancement and business success, often outweighing academic achievements [1][3][7] - 70% of job opportunities are not advertised online, highlighting the importance of networking to access hidden opportunities [4] - Networking provides access to knowledge and experience that textbooks cannot offer, especially from seasoned professionals [8][9] - In business, networking builds credibility and trust, essential for successful partnerships and ventures [11][12] Networking Strategies - Effective networking involves bringing value to the other person, requiring preparation and understanding of their needs [18][19] - Introverts can network effectively by being objective and focusing on specific goals [20] - Curiosity, vulnerability, and providing value are key elements of successful networking [20] Psychological Aspects of Networking - Recruiters are often influenced by social proof and familiarity, making referrals and known candidates more likely to be hired [13][14] - The reciprocity principle encourages people to return favors, strengthening network connections [15][16] - Weak connections can be surprisingly helpful in networking, offering diverse perspectives and opportunities [10] Impact of Networking - Individuals with strong networks experience a 20% income growth in 5 years, compared to those without [10] - Networking leads to a 32% growth in CXO (CEO, etc) level promotions within 5 years [10] - Referrals account for only 7% of total applicants but result in 40% of total hires, demonstrating the power of networking [10]

Personal Branding & Marketing - The core message revolves around breaking personal "bubbles" of fear, failure, and self-doubt to achieve one's potential [1][15][40] - Building a personal brand is presented as a key strategy to unlock opportunities and overcome limitations [19][20] - The importance of online presence in the digital era is emphasized, highlighting the shift from traditional offices to remote work and the increasing reliance on social media [22] - Personal branding is defined as presenting oneself with intent and embodying value, not just self-promotion or fake followers [23][24] - Creating valuable content on social media is crucial for attracting attention and building a positive reputation [26][27] Networking & Relationship Building - Networking is essential for leveraging a personal brand and creating opportunities [29][31] - Opportunities often arise through connections and relationships with others [30] - Social media platforms can be used to connect with top personalities and build a global network [35][36] - Providing value to others is key to building strong relationships and fostering reciprocity [37][39] Entrepreneurial Journey & Resilience - The narrative shares a personal journey of overcoming failures in startups and music to find success in personal branding and PR [4][5][6][8][13][14] - Resilience and patience are highlighted as crucial qualities for achieving long-term goals [16]

Industry Trend - Peak season for "interlopers" crashing company parties [1] - Individuals prefer company parties for networking, learning, and free food/drinks over bars [1]

Industry Trend - Peak season for "interlopers" crashing company parties [1] - Individuals attend company parties for learning, networking, and free food/drinks [1] Networking Opportunities - Company parties offer opportunities to learn, network, and grow professionally [1] Cost Saving - Attendees benefit from sponsored free food and drinks at company events [1]

Good morning. Before I start, I have to confess something. For many years, I have been a believer in the myth of the lone wolf. We all know that character, right? The entrepreneur or the business person who is chasing the win at all costs with sheer willpower. mostly living on ambition and caffeine, right? We're chasing wins. We're chasing metrics. We're celebrating chasing that little last client like it's the last slice of pizza. But being the lone wolf is not sustainable. It doesn't work. You get burnt o ...