Core Insights - Palantir Technologies has received authorization from the Defense Information Systems Agency (DISA) for its Palantir Federal Cloud Service (PFCS) Forward, allowing for broader deployment capabilities [1][2] - This authorization enables Palantir's software to be utilized in various environments, including traditional data centers and mobile military installations [2][3] Deployment and Technology - The authorization encompasses Palantir's entire technology stack, including Apollo, Gotham, Foundry, and AIP, along with the supporting infrastructure like Rubix [3] - The new PFCS Forward process simplifies the traditional government authorization, allowing for quicker deployment by using a single Provisional Authorization package [4] Strategic Implications - This development significantly enhances the military's ability to deploy AI capabilities rapidly and facilitates collaboration with other technology providers at the tactical edge [5] - The timing of this authorization follows Palantir's impressive Q4 earnings report, highlighting the company's strong financial performance [6] Financial Performance - Palantir's "Rule of 40" score reached 127%, an increase of 46 points from the previous year, indicating robust health in terms of revenue growth and profit margin [7] - Total revenue surged by 70% year-over-year to $1.4 billion, marking the highest growth rate since the company went public, with U.S. revenue increasing by 93% and now accounting for 77% of total revenue [7]

Financial Data and Key Metrics Changes - Total ACV grew 17% year-over-year, as reported, and 14% in constant currency, exceeding guidance [7] - Pega Cloud ACV increased 33% year-over-year as reported, and 28% in constant currency, a significant acceleration from last year's growth [7][10] - Free cash flow rose 45% year-over-year to $491 million, surpassing guidance by $51 million [10] - Contractually committed backlog grew 28% year-over-year, now exceeding $2 billion for the first time in Pega's history [11] Business Line Data and Key Metrics Changes - Pega Cloud backlog grew 36% year-over-year, now representing 74% of total backlog [11][12] - Net new ACV increased by 37% year-over-year in constant currency, driven by strong demand for Pega's AI solutions [9] Market Data and Key Metrics Changes - The company reported a strong global sales execution, with a disciplined and scalable sales cadence worldwide [8] - The demand for Pega's differentiated AI agents integrated into enterprise workflows has increased significantly [9] Company Strategy and Development Direction - The company is focused on a cloud-first strategy and the implementation of its Blueprint experiential sales approach [8] - Pega aims to sustain a balanced capital allocation strategy, prioritizing organic growth and product innovation [10] - The company is committed to leveraging AI to enhance business processes and improve customer experiences [19][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of ACV growth due to the strength of Pega's integration into clients' core operations [9] - The company anticipates total ACV growth of 15% and total revenue of $2 billion for 2026, marking a significant milestone [12][13] - Management highlighted the importance of transitioning from experimentation to execution in leveraging AI for business transformation [37] Other Important Information - The Supreme Court of Virginia affirmed the verdict related to a trade secret trial, eliminating a $2 billion liability [12] - The company has achieved ISO 42001 certification across its cloud services and AI solutions [10] Q&A Session Summary Question: Current deal environment and macro conditions - Management noted that the Blueprint approach reduces friction in client engagement, leading to an excitingly advanced pipeline [41] Question: Confidence in ACV guidance - Management indicated that the net retention rate is expanding while targeting new logos, contributing to confidence in achieving the 15% growth target [46] Question: Role of multi-agent systems in enterprises - Management emphasized Pega's structural advantages in orchestrating workflows across systems, allowing for reliable and predictable operations [55] Question: Impact of Blueprint on sales cycles - Early signs indicate faster pipeline build, progression, and close times due to the implementation of Blueprint [58] Question: App modernization journey with Blueprint - Management reported significant interest from clients in app modernization, with capabilities to modernize legacy systems [66] Question: Pega Cloud migration and growth - Management stated that Pega Cloud ACV is expected to grow over 30% in 2026, with consistent migration activity across the client base [70]

Blackbaud Ticker: BLKB February 10, 2026 Forward-looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation consist of, among other things, statements regarding future operating results, all of which are based on current expectations, estimates, and forecasts, and the beliefs and assumptions of the Compa ...

Core Insights - Blackbaud reported strong financial results for FY25, achieving the Rule of 40 two years ahead of schedule, indicating a solid market leadership position and effective execution of strategic initiatives [1][2] Financial Performance - **Fourth Quarter 2025 Results**: - Non-GAAP adjusted free cash flow was $41.4 million, down $15.9 million from Q4 2024, with a margin of 14.0%, a decrease of 500 basis points [1] - GAAP total revenue was $295.3 million, down 2.3% year-over-year, primarily due to the divestiture of EVERFI [1] - Non-GAAP adjusted EBITDA was $104.5 million, up $2.3 million, with a margin of 35.4%, an increase of 160 basis points [1] - GAAP net income was $36.7 million, with diluted earnings per share of $0.76, up $7.82 per share [1] - **Full-Year 2025 Results**: - Non-GAAP adjusted free cash flow was $208.2 million, down $36.5 million, with a margin of 18.5%, a decrease of 270 basis points [2] - GAAP total revenue was $1.1 billion, down 2.3% year-over-year, with recurring revenue of $1.1 billion, down 2.0% [2] - Non-GAAP adjusted EBITDA was $405.3 million, up $17.3 million, with a margin of 35.9%, an increase of 220 basis points [2] - GAAP net income was $115.0 million, with diluted earnings per share of $2.37, up $8.29 per share [2] Financial Outlook - For FY26, Blackbaud expects non-GAAP free cash flow of $280 million to $290 million and non-GAAP diluted earnings per share of $5.15 to $5.25 [2] - GAAP revenue guidance for FY26 is projected to be between $1.173 billion and $1.179 billion [2] Recent Highlights - Blackbaud welcomed 11 startups to its Social Good Tech Accelerator and was recognized on Newsweek's America's Most Responsible Companies List for the fifth consecutive year [1] - The company announced a reauthorized and expanded $1 billion stock repurchase program, with expectations to repurchase 5.0% to 10.0% of outstanding common stock in 2026 [2]

Core Viewpoint - The article discusses the significant divergence between Palantir's strong financial performance and its stock price decline, suggesting that the market may be undergoing a rational correction after a period of extreme optimism or a reallocation of capital by major investors [6][7]. Financial Performance Analysis - Palantir's Q4 2025 revenue reached $1.407 billion, with a year-over-year growth rate accelerating from 63% in Q3 to 70% in Q4 [7][9]. - The adjusted operating profit margin for Q4 was 57%, indicating strong profitability alongside revenue growth [7]. - The "Rule of 40" metric, which combines revenue growth and profit margin, reached 127% in Q4, up from 114% in Q3, challenging the notion that high growth must come with high losses in SaaS companies [12]. Business Growth Drivers - The U.S. Commercial segment's revenue growth accelerated from 121% in Q3 to 137% in Q4, indicating a robust demand for AI decision systems among enterprises [15]. - Palantir's customer base grew to 954, a 34% increase year-over-year, with significant order sizes, including 180 contracts worth over $1 million and 61 contracts over $10 million in Q4 [20]. - The company demonstrated strong customer retention and expansion, with notable increases in contract values across various sectors, such as utilities and healthcare [21][23]. Government and Defense Sector - Palantir's government revenue grew by 66% year-over-year to $570 million in Q4, reflecting a shift from intelligence analysis to comprehensive digital transformation in the defense industry [25]. - The application of technologies like ShipOS and Warp Speed significantly improved supply chain efficiency, reducing planning times from 160 hours to 10 minutes [26]. - The Maven platform's expansion across all U.S. military commands provides stable cash flow due to the long-term nature of defense contracts [27]. Competitive Advantages - Palantir's unique ontology architecture allows its AI systems to understand business logic and execute core decisions, differentiating it from competitors focused on chatbots and content generation [29]. - The company addresses data integration challenges for large enterprises, creating high switching costs and technical barriers for competitors [30]. - Palantir's established credentials in the defense sector provide a competitive edge in sensitive government and large enterprise markets [31]. Market Outlook - The recent stock price decline may present a buying opportunity, as the market has largely absorbed previous over-optimism [32]. - Palantir's business model has been validated through consecutive quarters of strong performance, suggesting potential for long-term growth [33]. - The ongoing AI application boom may represent a significant industrial revolution, positioning Palantir favorably for sustained premium valuations [35].

Core Insights - The company reported solid performance in Q3, with revenue and operating income exceeding guidance for the 11th consecutive quarter [3][4] - Total revenue reached $212 million, marking a 9% year-over-year increase, with subscription revenue also up 9% at $158 million [2][6] - The company is shifting towards broader usage-based pricing models and has raised its FY26 revenue guidance slightly [5][17] Customer Metrics - Total customer count increased by 15 sequentially, the largest quarterly increase in over three and a half years [1] - Million-dollar-plus subscription customers rose to a record 140, with several significant upsell deals signed during the quarter [1] Financial Performance - Annual Recurring Revenue (ARR) increased by more than $11 million quarter over quarter, reflecting a 7% year-over-year growth [2] - Non-GAAP operating income reached $62 million, up 36% year over year, with a record non-GAAP operating margin of 29% [7] - Free cash flow hit a record $67 million, with $39 million allocated for share repurchases [6][8] AI and Strategic Initiatives - AI is positioned as a significant tailwind, with the company signing over 20 AI partners and estimating that approximately 10% of activations are AI or AI-enabled [5][11] - The company aims to achieve "Rule of 40" performance by fiscal 2028, targeting revenue growth of 10% to 15% and a non-GAAP operating margin of 25% to 30% [4][21] Outlook and Guidance - For fiscal 2026, the company raised revenue guidance to between $810 million and $814 million, reflecting a 9% growth expectation [17] - Non-GAAP operating income guidance remains around $180 million, with an expected operating margin expansion to 22% [18] - The company anticipates Q4 revenue between $203 million and $207 million, with non-GAAP operating income of approximately $38 million [19]

Core Viewpoint - Palantir Technologies (PLTR) reported a strong Q4 performance, exceeding Wall Street estimates and providing ambitious guidance for 2026, which some view as unrealistic [1] Group 1: Financial Performance - In Q4, Palantir achieved a remarkable 127% on the "Rule of 40" metric, driven by a 70% year-over-year revenue increase and a 93% growth in its U.S. business [6] - The company's U.S. commercial revenue surged by over 130% year-over-year, indicating strong market commitment to its AI solutions [7] Group 2: Stock Volatility and Valuation - Following the earnings report, PLTR's stock experienced significant volatility, initially rising but then giving back gains, reflecting a history of price fluctuations [2][5] - Palantir is currently the most expensive stock in the S&P 500 Index, with a price-to-earnings ratio that appears unrealistic, alongside a high trailing revenue multiple [8]

Financial Data and Key Metrics Changes - Q3 revenue grew by 9%, reaching $212 million, with subscription revenue also increasing by 9% to $158 million [24][4] - Non-GAAP operating income rose by 36%, exceeding expectations, while GAAP operating income more than doubled for the second consecutive quarter [23][24] - Annual Recurring Revenue (ARR) increased by $11 million quarter-over-quarter and 7% year-over-year [4][24] - Free cash flow reached a record $67 million, with $39 million allocated for share repurchases [28][29] Business Line Data and Key Metrics Changes - Subscription revenue growth included an 8% increase in fixed revenue and a 13% increase in usage revenue year-over-year [24] - The total customer count increased by 15, marking the largest quarterly increase in over three and a half years, with million-dollar-plus customers rising to 140 [4][24] - Subscription net retention was 101%, consistent with expectations [25] Market Data and Key Metrics Changes - The Data Marketplace and other revenue increased by 8% to $54 million, although it fell slightly below expectations due to timing-related dynamics [26] - Demand for the Data Marketplace re-accelerated in mid-November, returning to double-digit growth [27] Company Strategy and Development Direction - The company is focused on achieving the "Rule of 40" by FY 2028, targeting revenue growth of 10%-15% and a non-GAAP operating margin of 25%-30% [16][17] - The strategy includes expanding the Data Marketplace to support AI models and applications, and transitioning to a usage-based pricing model [12][14] - Partnerships with major players like Publicis and Uber are being leveraged to enhance service offerings and drive growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's durability and scalability, emphasizing AI as a significant tailwind for future growth [3][6] - The company anticipates achieving double-digit revenue growth in the near future, supported by strong ARR momentum and a pivot to usage-based pricing [17][20] - Management highlighted the importance of a trusted data network for AI applications, positioning the company as a critical enabler in the advertising ecosystem [7][9] Other Important Information - The company has zero debt and a strong balance sheet with approximately $403 million in cash and short-term investments [29] - The upcoming annual customer and partner conference, Ramp Up, is scheduled for March 3rd to 5th, providing an opportunity for investors to engage with the ecosystem [21] Q&A Session Summary Question: Insights on Publicis partnership - The partnership with Publicis is a culmination of years of platform modernization and pricing model changes, allowing for innovative collaboration [36][37] Question: Upsell and cross-sell opportunities - Q3 saw strong sales driven by expansion with existing customers, particularly through the Clean Room offering [39][40] Question: AI partnerships and prioritization - The company prioritizes AI partnerships based on client feedback and existing relationships, focusing on both legacy companies and new startups [44][46] Question: Growth in commerce media networks - Significant growth is expected in travel, food delivery, and finance sectors, with new pricing models facilitating access to smaller clients [50][52] Question: CTV integration performance - CTV continues to grow as a strong component of the business, with expectations for ongoing growth in FY 2027 and beyond [54][55] Question: AI's impact on subscription business model - Management reassured that AI is not disrupting demand for their products, with strong sales performance and increasing deal sizes [61][67]

Financial Data and Key Metrics Changes - Q3 revenue growth was 9%, with subscription revenue also growing by 9%, reflecting a 4-point acceleration [4][24] - ARR increased by $11 million quarter-over-quarter and 7% year-over-year, driven by various use cases [4][24] - Operating income increased by 36%, with GAAP operating income more than doubling for the second consecutive quarter [23][28] - Free cash flow reached a record $67 million, with $39 million used for share repurchases [28][34] Business Line Data and Key Metrics Changes - Total revenue was $212 million, with subscription revenue at $158 million, both up 9% [24] - Fixed subscription revenue grew by 8%, while usage-based revenue increased by 13% year-over-year [24] - Total customer count increased by 15, marking the best performance in the past 12 quarters, with million-dollar-plus customers rising to 140 [24][25] Market Data and Key Metrics Changes - Strong demand was noted across the business, particularly in the reseller channel and Clean Room Insights offering [25] - Marketplace and other revenue increased by 8% to $54 million, although slightly below expectations due to timing-related dynamics [26] - CTV continues to be a strong growth component, with expectations for CTV data purchased off the marketplace to outpace overall data marketplace growth [57] Company Strategy and Development Direction - The company is focused on achieving the Rule of 40 by FY 2028, targeting revenue growth of 10%-15% and a non-GAAP operating margin of 25%-30% [16][20] - The pivot towards a usage-based pricing model is expected to unlock incremental revenue growth and enhance customer engagement [14][20] - The company is actively partnering with over 20 AI partners to expand its data marketplace and support AI training [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's durability and scalability, emphasizing AI as a tailwind for growth [3][6] - The company is not seeing any negative impact from AI on demand for its products, with strong sales momentum and improved deal sizes [70][72] - Management remains committed to achieving double-digit growth, viewing AI as an enabler rather than a disruptor [66][72] Other Important Information - The company has a strong balance sheet with approximately $403 million in cash and short-term investments and zero debt [29] - The upcoming Ramp Up conference is highlighted as an opportunity for investors to engage with key stakeholders in the marketing ecosystem [21] Q&A Session Summary Question: Insights on Publicis partnership - The partnership is a result of years of platform modernization and pricing model changes, allowing for innovative collaboration [38] Question: Upsell and cross-sell progress - Q3 saw strong bookings driven by expansion with existing customers, particularly through Clean Room offerings [41] Question: AI partnerships and prioritization - The company prioritizes AI partnerships based on client feedback and existing relationships, focusing on both legacy and new companies [46] Question: Growth in commerce media networks - Significant growth is expected in travel, food delivery, and finance sectors, with new pricing models facilitating access to smaller clients [51][53] Question: CTV integration performance - CTV continues to grow, with a significant portion of the largest integrations being CTV providers, driving Clean Room adoption [56][57] Question: AI's impact on subscription business model - Management reassured that AI is not negatively impacting demand, with strong sales performance and increased activations related to AI [70][72] Question: Pricing tests and client acquisition - The company is methodically rolling out a new pricing model, focusing on new logo opportunities and expecting modest revenue upside from SMBs [80][81]

Financial Data and Key Metrics Changes - Q3 revenue grew by 9%, reaching $212 million, with subscription revenue also increasing by 9% to $158 million [22][23] - Non-GAAP operating income rose by 36%, totaling $62 million, while GAAP operating income more than doubled to $40 million [22][26] - Annual Recurring Revenue (ARR) increased by $11 million quarter-over-quarter and 7% year-over-year [4][23] - Free cash flow reached a record $67 million, with $39 million allocated for share repurchases [26][29] Business Line Data and Key Metrics Changes - Subscription revenue growth included a fixed revenue increase of 8% and a usage revenue increase of 13% year-over-year [23] - Total customer count increased by 15, marking the largest growth in over three years, with million-dollar-plus customers rising to 140 [4][23] - Subscription net retention was stable at 101%, aligning with expectations [24] Market Data and Key Metrics Changes - Marketplace and other revenue grew by 8% to $54 million, although slightly below expectations due to timing-related dynamics [25] - Demand for data marketplace services re-accelerated in mid-November, returning to double-digit growth [25] Company Strategy and Development Direction - The company aims to achieve the "Rule of 40" by FY 2028, targeting revenue growth of 10%-15% and a non-GAAP operating margin of 25%-30% [16][17] - A shift towards a usage-based pricing model is being implemented to unlock incremental revenue growth, particularly appealing to mid-sized brands [14][19] - The company is expanding its data marketplace to include AI models and applications, positioning itself as a central hub for AI-powered marketing [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's durability and scalability, highlighting AI as a significant tailwind for future growth [3][5] - The company is focused on maintaining strong customer relationships and executing effectively, with expectations for continued revenue growth [18][31] - Management noted that AI adoption is expected to drive more data across the network, enhancing revenue without proportional cost increases [9][19] Other Important Information - The company has signed over 20 AI partners, including both startups and established firms like Google, to enhance its offerings [10][11] - The annual customer and partner conference, Ramp Up, is scheduled for March, providing an opportunity for investors to engage with the ecosystem [20] Q&A Session Summary Question: Insights on Publicis partnership - Management highlighted the readiness for expanding partnerships and the value added through their modular platform, allowing agencies to innovate on top of LiveRamp [34][36] Question: Upsell and cross-sell progress - Management reported strong sales momentum, particularly in expanding existing customer relationships through offerings like Clean Room [37][38] Question: AI partnerships and prioritization - Management emphasized a client-led approach to innovation, prioritizing partnerships based on client feedback and market dynamics [42][44] Question: Growth in commerce media networks - Management noted rapid growth in non-retail commerce networks, particularly in travel and food delivery sectors, which are expected to drive future revenue [48][51] Question: CTV integration and performance - Management confirmed that CTV continues to be a strong growth area, with significant integration and performance improvements [52][55] Question: AI's impact on subscription business model - Management reassured that AI is seen as a tailwind, enhancing the business rather than disrupting it, with strong sales performance observed [61][68]