Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $311 million, reflecting a 32% year-over-year growth, driven by strong demand from new customers and multi-product expansion from existing customers [4][21] - Non-GAAP operating margin for the quarter was 14.5%, with non-GAAP operating income of $45 million, indicating disciplined execution and strong top-line performance [29][30] - Net Revenue Retention (NRR) accelerated to 109%, showcasing effective customer engagement and expansion [21][23] Business Line Data and Key Metrics Changes - The Klaviyo Service product line, launched six weeks prior, is experiencing rapid adoption, outpacing previous SMS product adoption at the same stage [21][24] - The company added 7,000 new customers in Q3, bringing the total to over 183,000, a 17% increase year-over-year [22] - The $50,000-plus Annual Recurring Revenue (ARR) customer cohort saw record net additions, with 272 new customers added in the quarter, a 36% year-over-year increase [26][21] Market Data and Key Metrics Changes - International revenue grew by 43% year-over-year, with EMEA up 48%, marking the sixth consecutive quarter of accelerating international growth [25][26] - EMEA and APAC now account for over 35% of total revenue, reflecting the success of the international strategy [26] - The company expanded its platform to include four new languages and increased text messaging coverage to 22 countries [25] Company Strategy and Development Direction - Klaviyo's strategy focuses on multi-product expansion, international growth, and mid-market and enterprise momentum, all fueled by AI [21][22] - The integration of agentic AI into products aims to enhance customer engagement and streamline marketing processes [5][17] - The company is positioning itself as the definitive CRM for B2C businesses, emphasizing the importance of a unified platform for customer engagement [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting at least 21%-22% revenue growth in 2026, driven by strong demand for AI-powered products [31][52] - The company anticipates continued acceleration in international markets and mid-market segments, supported by recent product launches and enhancements [54][51] - Management highlighted the importance of AI in driving better customer experiences and operational efficiencies [32][52] Other Important Information - The company generated $47 million in free cash flow for a 15% free cash flow margin, indicating strong financial health [29] - Klaviyo is investing in expanding its partner ecosystem to include more AI-first developers and builders [20] - The company is focused on reducing friction in consumer interactions through new protocols and AI integrations [18][19] Q&A Session Summary Question: How is Klaviyo adapting to the legacy MarTech market fatigue? - Management noted an acceleration in replatforming discussions, particularly in mid-market and enterprise segments, driven by the integration of data infrastructure with marketing and service applications [33][34] Question: How does Klaviyo view its relationship with large platforms like OpenAI? - The company sees opportunities in commerce through AI applications, enhancing consumer discovery and engagement, and plans to integrate these capabilities into its Customer Agent product [39][40] Question: What is driving the rapid adoption of the Klaviyo Service products? - Management indicated that the Customer Hub and Customer Agent products are finding greenfield opportunities, enhancing personalization and generating incremental revenue for businesses [45][46] Question: What gives management confidence in the 2026 growth guidance? - The strong performance of existing growth engines, the rapid adoption of new products, and the ongoing demand for multi-product solutions provide a solid foundation for future growth [50][52] Question: Can the acceleration in international growth continue? - Management expressed optimism about sustaining high growth rates in international markets, supported by product expansions and enhanced go-to-market strategies [54][56]

Core Insights - Napster, formerly known as Infinite Reality, is advancing its strategic partnership with Microsoft Azure to deliver enterprise-grade agentic AI solutions to early pilot customers [1][7] - The collaboration aims to address the challenge of providing personalized experiences at scale while ensuring security and responsible AI practices [2][6] - The partnership combines Napster's conversational AI technology with Microsoft's cloud infrastructure, enabling businesses to implement advanced AI solutions across various industries [2][7] Company Overview - Napster has a history of democratizing access to technology, evolving from music in 1999 to creative expertise in 2025, and aims to empower users by transforming passive consumers into active creators [8] Partnership Impact - Leading Results, a consultancy, is utilizing Napster's AI technology to enhance coaching accessibility and cost-effectiveness for their client, Cooper Parry, a rapidly growing firm in the UK [4] - The bespoke AI coaches developed reflect Cooper Parry's values and culture, showcasing the adaptability of Napster's technology [5] Responsible AI Implementation - A study by IDC highlights that 30% of respondents view the lack of governance and risk management as a major barrier to AI adoption [6] - Microsoft emphasizes its commitment to responsible AI development, focusing on principles such as fairness, accountability, and transparency [6][7]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $175 million for Q3 2025, impacted by over $5 million in non-recurring SGA expenses related to the divested Mexico business [14][24] - The net loss attributable to common shareholders for Q3 was $14 million or $0.17 per diluted share, while adjusted net income was $31.5 million or $0.36 per diluted share [24][25] - Discretionary cash flow for the quarter was $117 million, an increase of approximately $14 million compared to the same quarter last year [17][26] Business Line Data and Key Metrics Changes - The contract services segment generated a year-over-year revenue increase of 4.5% and a quarter-over-quarter increase of 1.2% [20] - Contract services adjusted gross margin percentage increased by 230 basis points to 68.3%, reflecting higher pricing and lower operating expenses [15][22] - The company added approximately 60,000 new horsepower in Q3, with 40% being electric motor-driven units [10][60] Market Data and Key Metrics Changes - The company successfully exited all international operations, divesting its assets in Mexico, which included approximately 19,000 operating horsepower [7][9] - The demand for large horsepower compression remains strong, particularly in the Permian Basin, with new pipeline projects expected to increase gas takeaway capacity [11][12] Company Strategy and Development Direction - The company implemented a new ERP system to enhance operational efficiency and visibility, which is foundational for future AI initiatives [5] - The strategic focus is on high-grading the fleet and concentrating efforts on U.S. markets, which are believed to offer higher returns and lower operating risks [8][9] - The company plans to continue returning capital to shareholders, having returned over $90 million in Q3 through share repurchases and dividends [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving annual revenue margin and adjusted EBITDA guidance despite challenges from the sale of Mexico operations [18][28] - The outlook for 2026 is positive, with expectations for continued revenue growth and margin improvement driven by strong demand in the natural gas sector [13][29] Other Important Information - The company achieved a credit agreement leverage ratio of around 3.8 times at quarter-end, with expectations to exit the year at about 3.6 times [27] - The board declared an increased dividend of $0.49 per share, maintaining a coverage ratio of 2.9 times [27] Q&A Session Summary Question: Can you provide more detail about how the backlog is shaping up and your thoughts on fleet additions and pricing power? - Management indicated that they are not ready to provide guidance for 2026 yet but feel good about their current contracts and growth plans [32][33] Question: Is larger scale M&A something on your radar? - Management confirmed they would consider larger M&A opportunities, especially after recent strategic actions that have positioned the company well [34][36] Question: Can you update on the station construction opportunities? - Management noted a resurgence in contract activity and a strong backlog for station construction projects, particularly in the power sector [40][44] Question: What are the implications of lead times exceeding 60 weeks for equipment? - Management expects this demand to positively influence pricing and indicated ongoing constructive pricing discussions with customers [46][49] Question: Will divestments continue at a lower pace now that international operations are sold? - Management confirmed that divestitures will slow down and that exiting lower-margin businesses will help overall margins [50][52] Question: How much of the new horsepower added is electric? - Approximately 40% of the new horsepower added in Q3 was electric, but there are challenges with power access in the Permian Basin affecting future electric-driven compression orders [58][61] Question: What is the outlook for other basins besides the Permian? - Management noted increased activity and opportunities in other basins, including the Northeast and Eagle Ford, alongside the Permian [83]

Financial Data and Key Metrics Changes - Revenue grew by 10%, Adjusted EBITDA increased by 16%, and Adjusted EPS was up by 29%, marking the sixth consecutive quarter of double-digit revenue gain and eighth consecutive quarter of double-digit adjusted EPS growth [5][6][12] - Transactional revenue grew by 13%, led by a 26% increase in investment sales, debt, and equity advisory [6][12] Business Line Data and Key Metrics Changes - Real Estate Management Services saw double-digit revenue growth for the seventh consecutive quarter, with Workplace Management revenue increasing nearly 30% on a two-year stacked basis [8][14] - Leasing advisory revenue grew nearly 30% on a two-year stacked basis, with global office leasing revenue growth accelerating to 14% [16] - Capital Market Services experienced significant growth, with debt advisory revenue increasing by 47% and investment sales growing by 22% [18] - Software and Technology Solutions reported double-digit growth in software revenue, although discretionary technology solutions spending decreased from certain large clients [19][20] Market Data and Key Metrics Changes - The U.S. market showed broad-based activity across capital markets, office and industrial leasing, with investors shifting to a risk-on mode supported by robust debt markets [6][7] - The overall leasing pipeline remains healthy, with client demand for high-quality assets continuing [17] Company Strategy and Development Direction - The company is focused on investing in people and technology to drive long-term revenue and margin growth, with a strong emphasis on Data Technology and AI [8][9] - A new structure will be implemented for Software and Technology Solutions, allowing it to operate as a fifth business line within Real Estate Management Services [10] - The company is actively developing its strategy for growth through 2030, with plans to refresh financial targets in early 2026 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic outlook and forward indicators for transactional markets, noting stabilization and improvement during the quarter [6][12] - The company anticipates continued growth in the medium and long term, despite some moderation expected in the near term due to contract ramping and comparisons to strong prior year performance [31][32] Other Important Information - Free cash flow generation reached its highest level since 2021, contributing to a reduction in net debt and an improvement in reported net leverage to 0.8x [20][21] - Share repurchases totaled $70 million in the quarter, with a year-to-date total of $131 million, reflecting a commitment to returning capital to shareholders [21][22] Q&A Session Summary Question: Regarding Property Management and REM - Management clarified that the moderating growth in Property Management is due to exiting low-margin contracts, primarily in Asia Pacific, while the U.S. still shows mid-single-digit growth [27][30] Question: On Free Cash Flow and Buybacks - Management indicated that share repurchases are expected to continue as long as no strong M&A opportunities arise [32][33] Question: On Agentic AI Solutions - The main benefit from AI solutions currently is efficiency gains, with productivity in Capital Markets significantly increasing due to AI tools [36][37] Question: Trends in Capital Markets - Management expressed a positive outlook for capital markets, noting steady recovery in transaction volumes and a strong pipeline heading into the fourth quarter [39] Question: On AUM and CRE Valuations - Management noted a slight increase in underlying values, suggesting that CRE valuations may have bottomed out [41] Question: On Property Management Growth - Management stated that while mid-single-digit growth is currently observed, they have higher ambitions for the future as restructuring progresses [46][47] Question: On Industrial Leasing Performance - Industrial leasing revenue grew 6% globally, with strong performance in the U.S., and management remains optimistic about the pipeline [48] Question: On Capital Markets Margins - Management sees significant upside potential for margins in the Capital Markets business, with a strong cohort of producers maintained during downturns [51] Question: On Fraud Charges and Credit Trends - Management confirmed that the charges related to fraud were primarily from two loans, with no indication of broader deterioration in credit trends [52][56]

Core Insights - Wall Street shows strong optimism for Amazon, with 59 out of 73 analysts giving "Buy" ratings, indicating confidence in the company's future performance [1] AWS Growth Trends - Amazon Web Services (AWS) is experiencing accelerated growth, with Q3 fiscal 2025 revenues increasing by 20.2% year-over-year to $33 billion, achieving an annualized run rate of $132 billion and a backlog of $200 billion [2] - The backlog has significantly increased in early November 2025, surpassing the previous quarter's total, with AWS adding 3.8 gigawatts of data center capacity in the last year and plans to double this by 2027, showcasing strong revenue visibility [3] AI Services and Market Position - AWS's AI services, including SageMaker and Bedrock, are contributing to rapid growth, with Bedrock offering a variety of foundational models and high performance for AI workloads; the proprietary AI chip Trainium 2 has become a multibillion-dollar business [4] - The global agentic AI market is projected to grow from $13.8 billion in 2025 to $140.8 billion by 2032, with Amazon investing heavily to establish AWS as a leader in this space through tools like Strands and Agentcore [5] Advertising and E-commerce Momentum - The advertising business is gaining momentum, with revenues growing 22% year-over-year to $17.7 billion in Q3, driven by a comprehensive advertising portfolio and partnerships with streaming services [8] - In e-commerce, a focus on same-day delivery for perishable goods and increased penetration in rural markets may provide a competitive advantage in upcoming quarters [8]

Core Insights - Minglue Technology officially listed on the Hong Kong Stock Exchange on November 3, 2025, under the stock code "2718," becoming the world's first "Agentic AI" stock with a market value exceeding HKD 40 billion [3] - The success of Minglue Technology is closely tied to the vision and capabilities of its founder, Wu Minghui, who has shown unwavering determination and resilience in pursuing business success [3][12] - The recent positive performance of Chinese tech companies in the secondary market has been influenced by the successful IPOs of companies like Minglue and Yunji Technology, as well as a shift in global investor sentiment towards Chinese assets [4][18] Investment Focus - Sky Capital, led by Xu Teng, is focusing on three main investment areas within the AI and robotics sectors: 1. Robotics, including both B2B and B2C applications 2. Smart hardware, such as wearable devices and high-frequency AI products 3. AI technology investments, concentrating on foundational AI technologies and their innovative applications across various industries [7][22] - The investment criteria for projects include the ability to operate in global markets, reliance on R&D for product iteration, and a branding strategy that emphasizes high margins rather than low-price competition [7][23] Market Trends - The secondary market for Chinese tech stocks has shown a clear recovery trend, supported by favorable national policies and a renewed interest from global investors in allocating assets to China [4][18] - The recent success of DeepSeek has significantly boosted confidence in Chinese tech stocks, demonstrating that Chinese teams can create globally competitive technology products [18] - Despite the positive market trends, there is a cautionary note regarding the need for rationality in the primary market, as past experiences have shown the risks of irrational valuation increases [4][19] Entrepreneurial Insights - The resilience and desire for success in founders are critical qualities that are difficult to quantify but essential for entrepreneurial success [4][13] - Xu Teng emphasizes the importance of a founder's ability to learn and adapt, particularly for those with technical backgrounds transitioning into business roles [14][15] - The investment approach of Sky Capital is evolving towards a 2.0 model, focusing on comprehensive support for early-stage companies through strategic resources rather than merely providing orders or purchasing products [8][24]

Core Viewpoint - Amazon and AI startup Perplexity are engaged in a legal dispute regarding the use of third-party AI agents for shopping on Amazon's platform, with Perplexity asserting its right to allow users to utilize AI for shopping [2][3]. Group 1: Dispute Details - Perplexity received an "aggressive legal threat" from Amazon, demanding that it prevent users of its Comet browser from using AI assistants to shop on Amazon [2]. - Perplexity stated it will not be intimidated and aims to empower users to control their digital shopping experiences through agentic AI [2]. - Amazon responded by emphasizing that third-party applications should respect businesses' decisions regarding participation in their platforms [3]. Group 2: Amazon's Position - Amazon argues that ensuring a positive customer experience is crucial and that third-party applications, like Perplexity's Comet, have similar obligations to respect business decisions [3]. - The company highlighted that it has requested Perplexity to remove Amazon from the Comet experience due to concerns over degraded shopping and customer service [3]. Group 3: Industry Context - Reports indicated that Amazon has been taking measures to block AI shopping tools from other companies, including updating its website code to restrict new AI agents [4]. - The rise of agentic AI has prompted companies to evaluate both the economic potential and risks associated with this emerging technology [4].

Financial Data and Key Metrics Changes - Revenues grew 10% to $169.9 million in Q3 2025, with channel partners contributing 50% of total revenues compared to 47% a year ago [20][21] - Adjusted EBITDA for Q3 was $82.6 million, representing a 49% margin, up from 45% a year ago [21] - EPS for Q3 grew 19% to $1.86, with quarterly free cash flow at $89.5 million, representing a 53% margin compared to 37% in the prior year [22] Business Line Data and Key Metrics Changes - Patch Management and Cybersecurity Asset Management combined accounted for 17% of total bookings and 28% of new bookings on an LTM basis [21] - TotalCloud CNAPP made up 5% of LTM bookings, reflecting the company's scalable and sustainable business model [21] Market Data and Key Metrics Changes - US revenue grew 7%, while international revenue grew 15%, with a revenue mix of 56% from the US and 44% from international markets [20] - Net dollar retention rate remained at 104%, indicating challenges in upselling despite improved gross retention [20] Company Strategy and Development Direction - The company is focusing on transitioning from traditional cybersecurity to risk surface management using AI-powered proactive risk management [5][6] - The Risk Operations Center (ROC) is being positioned as a central solution for organizations to manage cyber risks effectively, with a focus on consolidating security tools [6][9] - The company plans to shift reporting from cybersecurity asset management bookings to ETM customer penetration, indicating a strategic pivot towards ETM as a growth pillar [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges, emphasizing the importance of aligning cybersecurity spend with business risk [23] - The company anticipates continued scrutiny of budgets in Q4, but expects to maintain growth momentum with a revenue guidance of $172 million to $174 million for Q4 2025 [23] Other Important Information - The company has repurchased 10.4 million shares since the program's inception, returning $1.2 billion in cash to shareholders, with $205 million remaining in the repurchase program [22] - The introduction of the QFlex pricing model has seen notable customer interest, with one Global 10 customer increasing their annual bookings by over 50% [17][18] Q&A Session Summary Question: Can you elaborate on the pricing around ETM and the 100% upsell metric? - Management clarified that ETM pricing includes cybersecurity asset management and focuses on optimizing cybersecurity spend through agentic AI capabilities [26][27] Question: What are the prospects in the federal market, especially with the recent shutdown? - Management noted early positive conversations in the federal space, emphasizing the need for efficiency and consolidation of security tools [32][36] Question: How is the competitive environment changing for Qualys? - Management highlighted that while competitors focus on discovering more CVEs, Qualys is concentrating on helping customers prioritize and remediate key vulnerabilities quickly [38][39] Question: Were there any one-time benefits to revenue this quarter? - Management confirmed that there were no specific one-time benefits, indicating solid growth from execution [42][43] Question: What needs to happen for net dollar retention to increase? - Management is focused on delivering value through ETM to existing customers, which could positively impact net dollar retention [44] Question: How is R&D spend prioritized across initiatives? - Management emphasized the focus on leveraging AI for efficiency gains in R&D, while continuing to invest in key areas [47][51]

Financial Data and Key Metrics Changes - Revenues grew 10% to $169.9 million in Q3 2025, with channel partners contributing 50% of total revenues compared to 47% a year ago [19][20] - Adjusted EBITDA for Q3 2025 was $82.6 million, representing a 49% margin compared to 45% margin a year ago [21] - EPS for Q3 2025 grew 19% to $1.86, with quarterly free cash flow at $89.5 million, representing a 53% margin compared to 37% in the prior year [22] Business Line Data and Key Metrics Changes - Patch Management and Cybersecurity Asset Management combined accounted for 17% of total bookings and 28% of new bookings on an LTM basis [21] - Cloud security solutions, specifically TotalCloud CNAPP, made up 5% of LTM bookings [21] Market Data and Key Metrics Changes - Revenue growth outside the US was 15%, outpacing domestic growth of 7%, with a revenue mix of 56% from the US and 44% from international markets [19] Company Strategy and Development Direction - The company is focusing on transitioning from attack surface management to risk surface management, utilizing AI-powered proactive risk management [4][5] - The Risk Operations Center (ROC) is being positioned as a new category in cybersecurity, centralizing threat response before business impacts occur [5][6] - The company plans to shift from reporting cybersecurity asset management LTM bookings to ETM customer penetration, indicating a strategic pivot towards ETM as a growth pillar [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the platform approach to cyber risk management, despite macroeconomic challenges affecting new business growth [23] - The company anticipates continued budget scrutiny in Q4 but expects to maintain a strong performance due to its innovative solutions [23] Other Important Information - The company has repurchased 10.4 million shares since the program's inception, returning $1.2 billion in cash to shareholders [22] - The introduction of the QFlex pricing model has seen notable customer interest, with one Global 10 customer increasing their annual bookings by over 50% [17] Q&A Session Summary Question: Can you elaborate on the pricing around ETM and the 100% upsell metric? - The ETM pricing includes cybersecurity asset management, and the upsell is expected to be significant as customers utilize ETM for inventory and exploit confirmation [24][25] Question: What are the developments in the federal market and the competitive environment? - The federal market is in early stages, with positive conversations about efficiency and consolidation. The competitive landscape includes players like CrowdStrike, but Qualys focuses on actionable risk management rather than just detection [26][29] Question: Were there any one-time benefits to revenue this quarter? - There were no specific one-time benefits; the quarter was solid in terms of execution [32] Question: What needs to happen for net dollar retention to increase? - The company is focused on demonstrating the value of ETM to existing customers, which could positively impact net dollar retention [33] Question: How is R&D spending prioritized across initiatives? - The company is leveraging AI to improve efficiency in R&D without significant increases in expenses, focusing on delivering capabilities across various initiatives [34][36] Question: How is the ROC solution being received by customers? - Customer feedback on the ROC solution has been positive, with a focus on business risk management rather than just technical scores [55][56]

Financial Data and Key Metrics Changes - Non-GAAP earnings per share for Q3 was $0.72, exceeding expectations by $0.17 [26] - Total revenue was $416 million, down 5% year-over-year, but above the high end of the outlook due to higher recurring revenue [24] - Total ARR grew 1% as reported and flat in constant currency, marking the second consecutive quarter of positive growth [23][22] Business Line Data and Key Metrics Changes - Cloud ARR grew 11% on both an as-reported and constant currency basis, with a cloud net expansion rate of 109% [23][24] - Recurring revenue was $366 million, down 2% year-over-year, but represented 88% of total revenue, up from 85% in Q3 last year [24] - Services revenue was $47 million, consistent with recent performance, transitioning from migration projects to AI services [24] Market Data and Key Metrics Changes - The company was named a leader in the Forrester Wave data management for analytics platforms, highlighting its suitability for hybrid cloud deployments [9] - Interest in AI, particularly agentic AI, is growing across industries, with most companies still in early stages of deployment [5][6] Company Strategy and Development Direction - The company is shifting from classic EDW to autonomous AI and knowledge platforms, focusing on hybrid environments [5][6] - Investments are being prioritized to capitalize on opportunities as a leading AI and knowledge platform for autonomous enterprises [29] - The company aims to provide a trusted data foundation that enhances AI performance and governance [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the return to total ARR growth and expects this trend to continue into 2026 [20][22] - The company is focusing on cost efficiencies and operational improvements to drive free cash flow growth [29][58] - Management noted that the hybrid deployment model is becoming increasingly important for customers [32][48] Other Important Information - The company launched several new AI services and capabilities, including the Teradata Agent Builder and enhancements to Clearscape Analytics [10][11] - The company is on track to complete over 150 AI engagements with customers this year [12] Q&A Session Summary Question: Insights on cloud ARR performance - Management indicated that cloud ARR performance met expectations, with a nuanced decision-making process for customers regarding deployment options [31][32] Question: Confidence in future free cash flow growth - Management attributed confidence in free cash flow growth to ARR growth and operational efficiency initiatives [34][35] Question: AI influence on pipeline and competitive win rates - Management noted an increase in AI-influenced pipeline and highlighted the effectiveness of their technology platform for AI workloads [36][37] Question: Guidance consistency and leading indicators - Management confirmed a consistent approach to guidance, utilizing various KPIs to assess outlook [38] Question: Competitive advantages in the AI space - Management emphasized patented technology and hybrid capabilities as key differentiators in the competitive landscape [40][41][42] Question: Services gross margin improvement - Management explained that improvements in services gross margin were due to right-sizing the organization and aligning costs with revenue [44][45] Question: Trajectory of cloud ARR and on-prem growth - Management indicated stabilization in on-prem growth and an expectation for continued expansion in cloud ARR [47][48] Question: Impact of federal shutdown on revenues - Management confirmed no impact from the federal shutdown on revenues [58] Question: Future free cash flow margin potential - Management highlighted operational efficiency measures that will benefit future margin and cash flow [59]