Q2 FY26 Investor Presentation August 26, 2025 © Okta and/or its affiliates. All rights reserved. © Okta and/or its affiliates. All rights reserved. Confidential Information of Okta – For Recipient's Internal Use Only. Safe Harbor This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, business strategy and plans, market trends a ...

Core Insights - Vonage has been recognized as the 'Best CPaaS Provider' at the 2025 UC Awards, highlighting its leadership in the communications industry [1][3] - The company’s Communications Platform as a Service (CPaaS) leverages AI-enabled APIs to enhance customer experience solutions for developers and enterprises [2][5] - The UC Awards, now in its seventh year, showcases innovation and leadership in unified communications and collaboration technology, with a record number of entries this year [3] Company Overview - Vonage, a subsidiary of Ericsson, focuses on empowering enterprises and developers through AI-powered platforms that facilitate digital transformation [5][6] - The technology portfolio of Vonage includes Network APIs, CPaaS, CCaaS, and UCaaS solutions, aimed at reimagining digital interactions across various industries [6] - The company is committed to providing tools that enable businesses to deliver personalized and secure customer experiences, thereby deepening customer engagement [2][5]

Core Insights - The call center industry has seen significant investment activity from 2014 to 2023, with a total of 20 financing events amounting to over 1.3 billion yuan, with notable peaks in 2021 and 2023 [1][14] - The focus of investments has shifted towards call center outsourcing and AI-driven solutions, indicating a trend towards automation and efficiency in customer service [4][12] Investment Trends - The years 2021 and 2023 recorded the highest investment amounts of 310 million yuan and 410 million yuan respectively, driven by significant investments in value-added services and AI technologies [1][2] - In 2024, only two investment events were recorded, indicating a potential slowdown in investment activity [1] Investment Amounts - Single investment amounts in the call center sector were generally in the millions from 2014 to 2020, with notable increases to 160 million yuan in 2021 and 140 million yuan in 2023, largely due to major investments in companies like StarNet Communication and Voice Technology [2][7] - The average single investment amount is expected to drop back to the million level in 2024, reflecting a cautious market sentiment [2] Geographic Focus - Investment is primarily concentrated in Beijing (45%) and Shanghai (22%), highlighting the urban concentration of call center operations and technology [9] - Other active provinces include Jiangsu, Hubei, Zhejiang, Guangdong, and Henan, benefiting from strong industrial foundations and supportive policies [9] Fund Activity - Several funds are actively investing in the call center industry, including the Double Hundred Fund, Shenzhen Investment Control Park Fund, and SoftBank Vision Fund, each with distinct investment strategies [12][13] - The Double Hundred Fund focuses on digital transformation projects for state-owned enterprises, while the SoftBank Vision Fund targets AI customer service solutions [12] Mergers and Acquisitions - The call center industry has seen limited M&A activity, with notable events including the acquisition of Huijie Technology by JD Technology Group in 2021, aimed at enhancing digital service capabilities [14] - A planned acquisition by Bangyan Technology of StarNet Communication was announced to be terminated in 2025 due to competitive pressures [14]

Core Insights - Adobe (ADBE) and Pegasystems (PEGA) are key players in the enterprise software sector, focusing on digital transformation through cloud-supported solutions [1] - The digital transformation market is projected to reach approximately $4 trillion by 2027, with a CAGR of 16.2% from 2022 to 2027, indicating significant growth potential for both companies [2] Adobe's Position - Adobe has enhanced its AI offerings with Adobe GenStudio and Firefly Services, facilitating collaboration on marketing campaigns [3] - Tools like Acrobat AI Assistant and Adobe Express are gaining traction among business professionals, with over 700 million monthly active users reported by the end of Q2 fiscal 2025 [5] - Adobe's Digital Media Annual Recurring Revenue (ARR) reached $18.09 billion, reflecting a 12% year-over-year increase, and its AI-first products are on track to exceed the $250 million ARR target by the end of fiscal 2025 [6] Pegasystems' Position - Pegasystems is experiencing strong demand for its AI-powered, cloud-based solutions, with the market expected to exceed $150 billion by 2029 [7] - The company's shift to a subscription-based model has driven a 14% year-over-year growth in Annual Contract Value (ACV) in Q2 2025, supported by the adoption of Pega GenAI Blueprint [8] - PEGA's capabilities include using agentic AI to modernize legacy systems, enhancing application development speed [9] Earnings Estimates - The Zacks Consensus Estimate for Adobe's fiscal 2025 earnings is $20.63 per share, indicating a 12% increase from 2024 [11] - The consensus for PEGA's 2025 earnings has risen by 5.3% to $1.98 per share, suggesting a 31.1% growth from fiscal 2024 [12] Stock Performance and Valuation - Year-to-date, Adobe shares have declined by 18.6%, while Pegasystems has seen a larger decline of 21.8% [13] - Both companies are considered overvalued, with Adobe trading at a forward Price/Sales ratio of 6.11X compared to PEGA's 5.13X [16] Investment Outlook - Adobe's focus on monetizing its AI tools positions it favorably for investors, while PEGA's valuation concerns present risks [19] - Currently, Adobe holds a Zacks Rank 2 (Buy), while Pegasystems has a Zacks Rank 3 (Hold), indicating a stronger investment case for Adobe [19]

Core Insights - The Gap, Inc. is anticipated to show growth in both revenue and earnings for the second quarter of fiscal 2025, with revenues expected to reach $3.7 billion, reflecting a 0.5% increase year-over-year [1][9] - The earnings per share estimate stands at 55 cents, indicating a 1.9% rise from the previous year [2][9] Financial Performance - The company has demonstrated consistent earnings performance, with a trailing four-quarter earnings surprise average of 33.2% [3] - In the last reported quarter, Gap's earnings exceeded the Zacks Consensus Estimate by 15.9% [3] Earnings Expectations - The current Earnings ESP for Gap is +1.52%, but it holds a Zacks Rank of 5 (Strong Sell), indicating uncertainty regarding an earnings beat this quarter [4] - Management has guided for flat sales year-over-year, with mixed brand performance, although strength in Old Navy and Gap provides some confidence [7] Strategic Initiatives - Gap's second-quarter results are expected to benefit from strong execution, brand momentum, and financial discipline, with a focus on market share growth and brand revival [5][6] - The company is enhancing its digital commerce presence, ranking as the 1 branded apparel e-commerce business in the U.S., with nearly 1.5 billion visitors to its platforms over the past year [8] Cost Management and Supply Chain - Gap is targeting $150 million in cost savings for fiscal 2025, which will help reinvest in growth initiatives while protecting margins [10] - The company has diversified its sourcing to mitigate tariff impacts, reducing reliance on China to under 3% of total sourcing [11] Margin Outlook - For the fiscal second quarter, gross margin is expected to remain similar to the first quarter, with an implied year-over-year decline due to the absence of last year's credit card agreement benefit [10] - Adjusted gross margin is projected to increase by 20 basis points, while adjusted operating expenses as a percentage of sales are expected to decline by 30 basis points year-over-year [12] Market Position and Valuation - Gap shares have underperformed recently, losing 24.7% in the past three months compared to the industry’s 3.4% growth [13] - The stock is trading at a forward price-to-earnings ratio of 9.7X, significantly below the industry average of 18.22X, presenting a potentially attractive investment opportunity [16]

Core Insights - Walmart outperformed Target in Q2 results, showcasing stronger growth driven by e-commerce and grocery sales [1][3][4] - Target is facing challenges with declining sales and leadership changes, impacting its growth trajectory [2][10] Walmart Performance - Walmart reported Q2 earnings of $0.68 per share, slightly below expectations of $0.73, but up from $0.67 in the same quarter last year [3] - Q2 sales reached $177.4 billion, a nearly 5% increase year-over-year, surpassing estimates of $175.51 billion [3][4] - Global e-commerce sales surged by 25% in Q2, and advertising revenue increased by 46% [4] - Walmart raised its full-year revenue growth guidance to 3.75%-4.75% and adjusted EPS guidance to $2.52-$2.62 for fiscal 2026 [8] Target Performance - Target's Q2 sales were $25.11 billion, down from $25.45 billion a year ago, but above estimates of $24.91 billion [5] - Q2 EPS of $2.05 fell short of expectations of $2.09 and decreased by 20% from $2.57 in the prior period [5][6] - Target experienced a 4% increase in digital sales but a 2% decline in comparable sales, with store traffic down over 1% [6] - Target maintained its full-year outlook, expecting a low-single-digit decline in sales and adjusted EPS between $7.00-9.00 [9] Leadership Changes - Target's CEO Brian Cornell will step down in February after 11 years, transitioning to executive chair, with COO Michael Fiddelke set to replace him [10] Valuation and Dividend - Target's stock is trading at 12X forward earnings, a discount compared to its decade-long median of 15X, while Walmart and Amazon trade at over 30X [11][12] - Target offers a higher annual dividend yield of 4.7% compared to Walmart's 0.96%, with both companies classified as Dividend Kings [13] Investment Considerations - Walmart's operational performance is currently stronger, appealing to growth-focused investors, while Target may attract income and value investors despite its challenges [17]

Core Insights - Caterpillar Inc. (CAT) and Hunt Energy Company, L.P. have formed a long-term strategic collaboration to address the increasing power demands of data centers, focusing on delivering scalable and reliable energy solutions [1][9] - The partnership combines over 190 years of industry experience, leveraging Hunt's expertise in energy infrastructure and Caterpillar's leadership in power systems [1] Company Overview - Caterpillar's power solutions portfolio includes natural gas and diesel generation equipment, gas turbines, switchgear, controls, aftertreatment, and engineering design services, along with advanced monitoring and servicing capabilities [2] - Hunt Energy specializes in infrastructure development, project financing, and operational execution for data center projects, with significant experience in battery energy storage systems (BESS), having deployed over 310 MW of BESS solutions in the last four years [3] Project Details - The first joint project is planned for Texas, aiming to deliver up to 1 gigawatt of power generation capacity for data centers across North America, with a long-term vision to expand to other regions as demand grows [4] Industry Context - The digital transformation has led to increased reliance on data centers, which must ensure continuous operations and build redundancies to prevent costly outages [5] - Companies like Vertiv and Eaton are also positioned in the critical digital infrastructure space, focusing on energy efficiency and high-density power solutions for AI-driven data centers [6][7] Financial Performance - Caterpillar shares have increased by 15.3% this year, slightly outperforming the industry growth of 15.2% and the S&P 500's increase of 8.5% [8][9] - The current forward 12-month price/earnings (P/E) ratio for Caterpillar is 20.84X, compared to the industry average of 19.73X [10] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 16.7% for 2025, followed by a growth of 16.7% in 2026, with recent earnings estimates showing a downward trend for 2025 and an upward trend for 2026 [11][14]

Financial Data and Key Metrics Changes - Net sales for Q2 were approximately $5.3 billion, growing 3.2% year over year [20] - Total comparable club sales, including gas, decreased 0.3% year over year, while merchandise comp sales, excluding gas, increased by 2.3% year over year [21] - Adjusted EBITDA grew approximately 8% year over year to $303.9 million, reflecting strong top-line growth and increased merchandise margins [25] - Adjusted earnings per share for Q2 were $1.14, an increase of 4.6% year over year [26] Business Line Data and Key Metrics Changes - The perishables grocery and sundries division saw a comp growth of 3% year over year, driven by strength in comp units [21] - The general merchandise and services division experienced a comp decrease of 2.2%, with discretionary categories like recreation and lawn and garden facing double-digit declines [7][21] - Digital sales grew 34% year over year and 56% on a two-year stack, with over 90% of digital sales fulfilled by clubs [22] Market Data and Key Metrics Changes - The membership base reached 8 million, representing a 55% growth since the IPO seven years ago [5][10] - Higher tier membership penetration improved by 50 basis points to an all-time high of 41% [11][49] - Comp gallons in the gas business were flat year over year, significantly outperforming the industry, which declined low single digits [24] Company Strategy and Development Direction - The company is focused on enhancing member loyalty, improving the shopping experience, and expanding its footprint [10][15] - Investments in the Fresh 2.0 initiative are driving share gains across consumables, particularly in perishables [12][85] - The company plans to open eight more clubs in the second half of the fiscal year, with a pipeline of 25 to 30 new clubs over the next two years [15][28] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment has turned cautious due to macroeconomic uncertainties, but total spending increased on a per member basis [8][56] - The company remains confident in its ability to navigate the current environment, citing record high membership metrics and ongoing share gains [18][29] - Management acknowledged the potential impact of tariffs and inflation on consumer spending patterns but believes the business model remains relevant [15][68] Other Important Information - Membership fee income grew 9% to approximately $123.3 million, benefiting from strong acquisition and retention [23] - Inventory levels decreased by about 2% year over year, with in-stock levels improving by approximately 50 basis points [26][27] - The company is maintaining a disciplined capital allocation strategy, focusing on investments that support long-term growth [28][29] Q&A Session Summary Question: How did the second quarter play out, and what are the expectations for the back half? - Management noted that the quarter strengthened as weather improved, with May being weak but June and July showing better performance [37][40] Question: What is the profile of new members and expectations for membership fee income? - The company is pleased with membership growth, reaching 8 million members, and high renewal rates contribute to membership fee income growth [46][49] Question: What insights can be shared about changes in consumer behavior during the quarter? - Management observed a resilient consumer but noted increased caution across all income levels, with a higher propensity to seek value [56][58] Question: How is the general merchandise outlook for the back half of the year? - The general merchandise team is managing through headwinds and preparing for the back half, with a focus on maintaining inventory prudence [90][91] Question: Is the company taking a more cautious approach to inventory ordering in the back half? - Management confirmed a cautious approach to discretionary categories due to potential price increases from tariffs, while still being aggressive in gaining market share [96][100]

Core Insights - Kneat.com, inc. has signed a three-year Master Services Agreement with a leading equipment manufacturer to implement the Kneat Gx platform for digitizing equipment testing processes [1][2][3] - The agreement marks Kneat's seventh strategic customer win in 2025, following a record-setting quarter for new customer additions in the life sciences and other industries [3] Company Overview - Kneat Solutions specializes in providing digital validation and compliance solutions for highly regulated industries, enhancing efficiency in validation processes [4] - The Kneat Gx platform is fully ISO 9001 and ISO 27001 certified, validated, and compliant with 21 CFR Part 11/Annex 11 standards [4] - Independent studies indicate that Kneat Gx can reduce labor hours for validation documentation by over 50% and accelerate review and approval cycles by up to 50% [4] Industry Context - The agreement with the equipment manufacturer is part of a broader trend where industries are expanding their digital capabilities to improve quality, compliance, and speed to market [3] - The company employs over 15,000 people and markets products in over 120 countries, indicating a significant global presence [2]

Summary of Huize Holding Limited (HUIZ) Conference Call Company Overview - **Company Name**: Huize Holding Limited - **Ticker**: HUIZ - **Industry**: Insurance Brokerage - **Headquarters**: Shenzhen, China - **Listing**: Nasdaq since 2020 - **Years in Operation**: 19 years - **Revenue Sources**: Over 30% from international markets including Hong Kong, Vietnam, and Singapore [4][5][16] Core Business Model - **Insurtech Leader**: One of the leading insurtech players in China, providing a fully digital and AI-driven insurance brokerage platform [8][36] - **Ecosystem**: Connects consumers with insurance carriers and intermediaries, offering over 120 providers on the platform [10][13] - **Customer Base**: Over 10 million policyholders, with a significant growth in customer engagement and retention [14][22] Financial Performance - **Gross Written Premium (GWP)**: $844 million in the previous year, with revenues around $200 million [15][42] - **Profitability**: Profitable on a quarterly basis, targeting a 10% net margin in the next few years [50][51] - **Cash Position**: Approximately $30 million in cash, exceeding current market cap [37][51] Market Position - **Market Share**: Approximately 5% in China, ranking as a top five player in the market [40][41] - **Distribution Channels**: Revenue split includes 20% from direct-to-consumer (D2C) and 80% from B2B partnerships [44][42] Growth Strategy - **International Expansion**: Focus on Southeast Asia, particularly Vietnam, Indonesia, and the Philippines, leveraging low insurance penetration and young demographics [32][35] - **Product Development**: Co-developing exclusive insurance products with partners, contributing to 53% of total GDP in Q4 2024 [25][26] - **AI Integration**: Utilizing AI for customer acquisition, underwriting, and claims processing, improving operational efficiency [27][28] Industry Dynamics - **Market Growth**: Anticipated double-digit CAGR in the insurance distribution market in China over the next decade [28][30] - **Regulatory Environment**: Clear regulatory framework in China for digital insurance distribution, reducing uncertainty for investors [60][61] Key Products - **Product Categories**: Focus on long-term savings products and health insurance, particularly critical illness products [56][59] - **Market Trends**: Shift from bank deposits to insurance products due to low interest rates in China [57][58] Customer Engagement - **Customer Demographics**: Average customer age of 35, with a high persistency ratio of 95% for policy renewals [22][23] - **Lead Generation**: Utilizing social media and educational content to attract customers, particularly targeting Gen Y and Gen Z [20][48] Conclusion - **Investment Highlights**: Leading insurtech platform with a strong cash position, significant growth potential in both domestic and international markets, and a commitment to leveraging technology for enhanced customer service and operational efficiency [36][37]