Core Insights - The Browser Company, the parent company of AI browser Dia, was acquired by Atlassian for $610 million, despite having minimal revenue and users, indicating a strong market interest in AI technologies [1] - You.com raised $100 million in Series C funding, reaching a valuation of $1.5 billion, and is shifting its focus from consumer to enterprise-level AI solutions, emphasizing the need for AI agents to access deep, contextual information [1][2] - Exa, another AI search engine, completed a $85 million funding round, increasing its valuation from $70 million to $700 million in just one year, focusing on building search engines for AI agents rather than humans [5][10] Group 1: You.com - You.com processes over 1 billion queries monthly for various companies, transitioning from consumer-focused AI search to enterprise-level AI solutions [2][4] - The company aims to provide customized, secure, and efficient AI solutions, addressing the growing demand from enterprises for tailored AI tools [4] - You.com's annual recurring revenue (ARR) reached $50 million, with a significant growth rate of 40 times in 2024, indicating strong market traction [4] Group 2: Exa - Exa's valuation skyrocketed to $700 million after raising $85 million, with a focus on serving enterprise clients, including several Fortune 500 companies [5][10] - The company aims to create a search engine that allows AI to control web searches in ways that traditional search engines cannot, targeting "geek" users who seek high-quality knowledge [5][9] - Exa's long-term goal is to organize global knowledge comprehensively, fulfilling a mission that Google has not completed [10] Group 3: Market Trends - The AI search engine landscape is evolving, with a clear shift towards solutions that cater to AI agents rather than human users, highlighting a significant change in search engine design and functionality [9][10] - The demand for AI infrastructure is growing, as companies recognize the need for reliable and efficient AI tools to enhance productivity and decision-making [4][5]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $70.3 million, a decrease of 19% year over year [4] - Subscription revenue was $60.3 million, representing 86% of total revenue [4] - Non-GAAP gross profit was $36.3 million, with a non-GAAP gross margin of 52% [8] - Non-GAAP operating loss for the quarter was $57.8 million, and non-GAAP net loss was $49.8 million, translating to a net loss per share of $0.37 [9] - Free cash flow for the quarter was negative $34.3 million, with cash, cash equivalents, and marketable securities totaling $711.9 million at the end of the quarter [9] Business Line Data and Key Metrics Changes - Revenue from software licenses was $17.9 million, sequentially lower by $15.9 million [5] - Professional services revenue was $10 million, with $8.7 million from Prioritized Engineering Services (PES), accounting for 14% of total revenue [5] - Combined subscription and PES revenue was $69 million, representing 98% of total revenue [5] Market Data and Key Metrics Changes - The company signed 28 initial production deployments (IPDs) during the quarter, with a cumulative total of 374 IPDs, of which 266 are still active [9] - The company is involved in approximately 60 large-scale customer engagements across various sectors, including government and manufacturing [18] Company Strategy and Development Direction - The company aims to establish a market leadership position in enterprise AI applications, focusing on the C3 AI platform and expanding its application footprint [20][21] - A strategic integrator program was introduced to license the C3 AgenTeq AI platform to others, enabling them to develop industry-specific applications [17] - The company has restructured its sales and service organizations globally, bringing in new leadership to drive growth and customer satisfaction [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the financial results for the first quarter were unacceptable, attributing the underperformance to poor sales execution and resource coordination [12][13] - The new CEO, Steven Ehikian, is expected to drive growth and market penetration, with a focus on leveraging existing technology and customer relationships [23] - Management remains committed to achieving non-GAAP profitability and free cash flow, despite the challenges faced in Q1 [30] Other Important Information - The company plans to provide updated guidance for fiscal 2026 when announcing future financial results [10] - The addressable market opportunity is estimated to approach $2 trillion annually, indicating significant growth potential [21] Q&A Session Summary Question: How involved will Tom Siebel be in the sales process going forward? - Tom Siebel stated he will do everything possible to ensure the new CEO's success and will continue to monitor and assist in the sales process as necessary [26] Question: What gives confidence in the Q2 guidance? - Hitesh Lath mentioned that Q2 guidance is based on sales activity observed in August and the review of the sales pipeline with new leadership [28] Question: How do you see the mix of partner-led versus direct sales evolving? - Tom Siebel indicated that 90% of the business closed this quarter was with partners, and there will be significant investment in these partnerships going forward [33] Question: How would you weight the underperformance this quarter between sales disruption and Tom's impact? - Tom Siebel estimated it was a combination of both, with 70% attributed to sales disruption and 30% to his reduced involvement [41] Question: What execution steps are being taken regarding pilots and contracts? - Tom Siebel noted that there were many new people and leadership involved, which caused some confusion in the sales process [42]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $70.3 million, a decrease of 19% year over year [4] - Subscription revenue accounted for $60.3 million, representing 86% of total revenue [4] - Non-GAAP gross profit was $36.3 million, with a gross margin of 52% [7] - Non-GAAP operating loss was $57.8 million, and non-GAAP net loss was $49.8 million, translating to a net loss per share of $0.37 [8] - Cash, cash equivalents, and marketable securities at the end of the quarter totaled $711.9 million [9] Business Line Data and Key Metrics Changes - Revenue from software licenses for demonstration versions was $17.9 million, down sequentially by $15.9 million [5] - Professional services revenue was $10 million, with $8.7 million from Prioritized Engineering Services (PES), making up 14% of total revenue [5] - Combined subscription and PES revenue was $69 million, accounting for 98% of total revenue [5] Market Data and Key Metrics Changes - The company signed 28 initial production deployments (IPDs) during the quarter, with a cumulative total of 374 IPDs, of which 266 are still active [9] - Non-GAAP gross margin declined due to a higher mix of IPD-related costs and lower economies of scale [10] Company Strategy and Development Direction - The company aims to establish a market leadership position in enterprise AI applications, focusing on the C3 AgenTeq AI platform and expanding its application footprint [20][21] - A strategic integrator program was introduced to license the C3 AgenTeq AI platform to others, targeting OEMs and systems integrators [17] - The company plans to ramp up sales and service capacity globally, leveraging partnerships with major players like Azure, AWS, and GCP [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the first quarter's financial results were unacceptable, attributing the underperformance to poor sales execution and resource coordination [12][13] - The new CEO, Steven Ahitian, is expected to drive growth and customer satisfaction, with a restructured sales and service organization in place [14][22] - Management remains optimistic about achieving non-GAAP profitability and free cash flow in the future, despite the challenges faced in Q1 [28] Other Important Information - The company is involved in approximately 60 large-scale customer engagements across various sectors, including government and manufacturing [18] - The introduction of generative AI capabilities is expected to enhance project success rates, addressing common challenges in AI deployments [19] Q&A Session Summary Question: How involved will Tom be in the sales process going forward? - Tom stated he will do everything possible to ensure Steven's success and will continue to monitor and assist in the sales process as necessary [25] Question: What gives confidence in the Q2 guidance? - The Q2 guidance is based on sales activity observed in August and the review of the sales pipeline with new leadership [27] Question: How do you see the mix of partner-led versus direct sales evolving? - Tom indicated that 90% of the business closed this quarter was with partners, and there will be significant investment in these partnerships going forward [31][32] Question: How would you weight the underperformance this quarter? - Tom estimated that 70% of the underperformance was due to sales disruption and 30% due to his reduced involvement [39] Question: What execution steps are being taken regarding pilots and contracts? - Tom mentioned that new leadership and confusion in the sales process contributed to the challenges faced, but they are committed to improving execution [41]

three AI shares falling in overtime after reporting results uh at the top of the hour off the lows but still down um considerably about 10% in overtime. The company had pre-announced these results on August 11th. The stock fell 25% on that news.Uh C3AI also announcing now it has found a new CEO uh to replace Tom Seel uh Steven Ahikian. And joining us now is C3AI executive chairman Tom Seiull and the new CEO Stephen Ahikian. Uh gentlemen, welcome.Um can't wait to talk to both of you. So let me dive right in. ...

FY26-Q1 Financial Highlights - Revenue reached $70.3 million[7] - Subscription revenue accounted for $60.3 million[18], while subscription and prioritized engineering services revenue combined totaled $69.0 million[18] - Non-GAAP gross profit was $36.3 million, resulting in a non-GAAP gross margin of 52%[18] - The company's cash balance stood at $711.9 million[7] Partner Ecosystem - 40 agreements were closed through the partner network in Q1[11] - The joint 12-month qualified opportunity pipeline with partners increased by 54% year-over-year[11] - C3 AI and Microsoft jointly closed 24 agreements[11] Bookings and Deployments - Manufacturing accounted for 46% of total bookings in FY26-Q1[24], a significant increase compared to 5.2% in FY25-Q1[23] - Federal, Defense and Aerospace represented 28% of total bookings in FY26-Q1[24], down from 31% in FY25-Q1[23] - Federal, Defense and Aerospace accounted for 32.1% of initial production deployments in FY26-Q1[27], while Manufacturing accounted for 28.6%[27] - Federal, Defense and Aerospace accounted for 33.3% of Generative AI initial production deployments in FY26-Q1[30], with Construction, Manufacturing, Oil and Gas, and Telecommunications each accounting for 16.7%[30] Guidance - The company expects total revenue between $72.0 million and $80.0 million for FY26-Q2, representing a year-over-year growth between -15% and -24%[14] - Non-GAAP loss from operations is projected to be between $(49.5) million and $(57.5) million for FY26-Q2[14] - The company withdrew its previous full-year fiscal 2026 guidance due to the appointment of a new CEO and restructuring of sales and services organizations[15]

Summary of NetApp (NTAP) 2025 Conference Call Company Overview - **Company**: NetApp (NTAP) - **Event**: 2025 Conference held on September 3, 2025 Key Industry Insights - **Industry**: Storage and Data Infrastructure - **Market Trends**: - The storage market has shown resilience despite macroeconomic challenges such as geopolitical uncertainties and tariffs [6][8] - Demand for enterprise IT spending remains cautious, influenced by central bank policies and global conflicts [6][8] Core Company Performance and Outlook - **Enterprise Business**: - Non-public sector enterprise business performed well, driven by priorities like enterprise AI readiness, cloud transformation, and cyber resilience [7][10] - Cloud storage business grew by 33% year-on-year, indicating strong demand [10] - **Market Position**: - NetApp is the number one player in the flash storage market, having gained market share consistently over the past few years [10][25] - The company is well-positioned to benefit from the growth of enterprise AI, which is still in its early stages [9][15] Demand Drivers - **Enterprise AI**: - The adoption of enterprise AI is expected to accelerate, with significant opportunities in sectors like public services, manufacturing, financial services, and healthcare [15][16] - Companies are focusing on organizing and unifying data to leverage AI capabilities [13][15] - **Hybrid vs. Public Cloud**: - AI workloads typically start in the public cloud but transition to hybrid environments as data gravity increases [42][44] - The hybrid cloud segment is expected to grow as enterprises seek to optimize their data infrastructure for AI applications [42][44] Financial Performance and Margins - **Gross Margin Trends**: - Cloud gross margins have improved from mid-60s to a target range of 80%-85% due to a better mix of software revenue [31] - Product gross margins are expected to trend back up to mid to upper 50s in the second half of the year, driven by a shift towards flash storage [33] - **Cost Structure**: - NAND costs are projected to improve, which should positively impact product gross margins [34][36] Competitive Landscape - **Market Dynamics**: - The storage industry is competitive but rational, with NetApp maintaining a sticky software platform that is difficult for competitors to displace [52] - The company is positioned to capitalize on disruptions in the hyper-converged systems market, particularly with competitors like VMware [25][55] - **Customer Preferences**: - Customers are exploring alternatives to VMware due to pricing pressures, leading to increased interest in external storage solutions [58][60] Strategic Initiatives - **Software Capabilities**: - NetApp is focused on enhancing its software offerings to provide value-added services around data management, cybersecurity, and governance [45][62] - Upcoming customer conference is expected to showcase new software capabilities that can be monetized [62] Conclusion - **Investment Opportunity**: - NetApp is well-positioned to leverage its extensive installed base and software capabilities to drive growth in the AI era [62] - The company emphasizes its leadership in modern data infrastructure and the potential for significant revenue growth through enhanced software services [62]

Core Insights - C3.ai, Inc. is emphasizing its partner ecosystem as a crucial growth driver, with 73% of agreements in fiscal 2025 completed through partnerships, marking a 68% increase from the previous year [1][9] - The company reported a significant rise in partner-supported bookings, which surged 419% year over year in the fiscal fourth quarter, with 59 agreements signed through collaborations [1] Partnerships and Collaborations - The partnership with Microsoft is pivotal, resulting in 28 new agreements in the fiscal fourth quarter, particularly in manufacturing and chemicals [2] - Collaborations with Google Cloud and Amazon's AWS are also enhancing market reach and delivery capabilities [2] - New advisory alliances with McKinsey QuantumBlack and PwC are broadening distribution capacity and targeting key industries [3][4] Market Performance and Valuation - C3.ai shares have declined by 25.8% over the past year, compared to a 9.5% decline in the industry [7] - The company trades at a forward price-to-sales ratio of 5.58X, significantly lower than the industry average of 17.49X [8] - The Zacks Consensus Estimate for fiscal 2026 earnings per share indicates a year-over-year decline of 239%, while fiscal 2027 shows a projected increase of 65.9% [11]

Financial Data and Key Metrics Changes - The company achieved revenue of $1,560 million in Q1, which is above the midpoint of guidance and represents a 1% year-over-year increase [5][22] - Excluding the divested spot business, total revenue increased by 3% year-over-year [22] - Q1 hybrid cloud revenue was $1,400 million, up 1% year-over-year, driven by support revenue growth of 3% and professional services revenue growth of 18% [22] - Consolidated gross margin improved by 1.6 percentage points sequentially to 71.1% [24] - Operating profit was $400 million with an operating margin of 25.7% [26] - The company ended Q1 with $4,530 million in deferred revenue, up 9% year-over-year [23] Business Line Data and Key Metrics Changes - All flash array revenue grew 6% year-over-year to $893 million, with a run rate of $3,600 million [10] - Public cloud revenue increased by 1% year-over-year to $161 million, and excluding spot, it was up 18% year-over-year [23] - Professional services revenue grew 18% year-over-year, driven by the Keystone offering, which increased approximately 80% compared to the same period last year [22][24] Market Data and Key Metrics Changes - The Americas enterprise performance offset declines in the U.S. Public sector and EMEA [6][21] - The company secured approximately 125 AI infrastructure and data lake modernization deals across various geographies and industries in Q1 [17] Company Strategy and Development Direction - The company is focused on helping customers modernize their data infrastructure and advance cloud transformations, particularly in the emerging enterprise AI market [7][19] - The strategy includes enhancing profitability and free cash flow while consistently delivering value to customers and shareholders [28] - The company aims to maintain its leadership position in the all flash market and expand its cloud services [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted some macro-related spending caution but highlighted strong demand for AI solutions and cloud transformations [7][19] - The company expects revenue for Q2 to be $1,690 million, implying 2% growth year-over-year at the midpoint [27] - Full-year guidance for fiscal year 2026 remains between $6,625 million and $6,875 million, reflecting 3% growth year-over-year [28] Other Important Information - The company redeemed senior notes due in June 2025 for $757 million and returned $404 million to shareholders through share repurchases and dividends [26] - The balance sheet remains strong with $3,300 million in cash and short-term investments and $2,500 million in total debt, resulting in a net cash position of approximately $840 million [27] Q&A Session Summary Question: All flash revenue growth has decelerated from double digits to just 5%. What is driving this? - Management indicated that softness in the U.S. Public sector and EMEA contributed to the lower growth, but they anticipate improvement for the rest of the year [34][36] Question: How should we think about the seasonality into January? - Management expressed confidence in the outlook for the year, noting that Q2 is typically a strong budget spending quarter for the U.S. public sector [48] Question: What is the competitive landscape for all flash? - Management acknowledged a competitive environment but expressed confidence in their competitive position and did not see any specific adverse patterns in the quarter [102] Question: Can you elaborate on the AI wins and their magnitude? - Management reported over 125 AI wins in the quarter, with a mix of smaller and larger scale deployments, indicating strong momentum in AI adoption [41][66] Question: What is the strategy regarding hypervisor offerings? - The company supports a broad range of hypervisors and aims to continue providing support based on customer demand [125]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $1,560 million, up 1% year over year, exceeding the midpoint of guidance [21] - Excluding the divested spot business, total revenue increased by 3% year on year [21] - Q1 hybrid cloud revenue was $1,400 million, also up 1% year over year [21] - Product revenue decreased by 2% year over year to $654 million [21] - Public cloud revenue increased by 1% year over year to $161 million, and excluding spot, it was up 18% year over year [21] - Q1 consolidated gross margin improved by 1.6 percentage points sequentially to 71.1% [23] - Operating profit was $400 million with an operating margin of 25.7% [25] - Diluted EPS was $1.55, aligned with expectations [25] Business Line Data and Key Metrics Changes - All flash array revenue grew 6% year over year to $893 million, with an annualized run rate of $3,600 million [8] - Professional services revenue grew 18% year over year to $97 million, driven by Keystone, which was up approximately 80% compared to the same period last year [21] - Recurring support business maintained a gross margin of 92.3% [23] - Public cloud gross margin was 80.1%, up 80 basis points sequentially and nine percentage points year over year [24] Market Data and Key Metrics Changes - Strong performance in The Americas enterprise offset declines in the U.S. Public sector and EMEA [5] - The company secured approximately 125 AI infrastructure and data lake modernization deals across various geographies and industries in Q1 [15] - The emerging enterprise AI market is driving urgency among customers to modernize data infrastructure [6] Company Strategy and Development Direction - The company is focused on helping customers modernize their data infrastructure and advance cloud transformations [5] - The strategy includes enhancing profitability and free cash flow while delivering value to customers and shareholders [27] - The company aims to capitalize on growing opportunities in the enterprise AI sector [18] Management's Comments on Operating Environment and Future Outlook - Management noted some macro-related spending caution but emphasized strong demand for AI solutions [6] - The company expects revenue for Q2 to be $1,690 million, implying 2% growth year over year at the midpoint [26] - Full year guidance for fiscal year 2026 remains between $6,625 million and $6,875 million, reflecting 3% growth year over year [27] Other Important Information - The company ended Q1 with $4,530 million in deferred revenue, up 9% year over year [22] - Cash flow from operations reached a record $673 million in Q1 [25] - The company redeemed senior notes due in June 2025 for $757 million [25] Q&A Session Summary Question: All flash revenue growth has decelerated from double digits to just 5%. What is driving this? - Management indicated that softness in the U.S. Public sector and EMEA contributed to lower growth, but they anticipate improvement for the rest of the year [34][36] Question: What is the outlook for enterprise AI adoption? - Management reported strong momentum with over 125 AI wins in Q1, indicating a shift from proof of concept to production [40] Question: How does the availability of 128 terabyte QLC based NAND impact search solutions for AI applications? - Management stated that they have a broad range of NAND technologies available and do not feel gated by any specific technology [44] Question: What is the competitive landscape for all flash storage? - Management expressed confidence in their competitive position despite challenges in certain markets, noting that high-performance flash outgrew capacity flash year on year [110] Question: Can you elaborate on the gross margin guidance for public cloud business? - Management explained that improvements in gross margin are driven by depreciation roll-off and increased software content in revenue [57]

Core Insights - NetApp, Inc. is set to release its first-quarter fiscal 2026 earnings on August 27, with expected non-GAAP earnings per share between $1.48 and $1.58, slightly down from the previous year [1][10] - Anticipated net sales are projected to range from $1.455 billion to $1.605 billion, reflecting a minor decline of 0.1% from the prior year [2][10] Financial Performance - The Zacks Consensus Estimate for earnings is currently at $1.54 per share, indicating a 1.3% decrease year-over-year [1][2] - The company has a history of beating estimates, achieving an average earnings surprise of 3.2% over the last four quarters [2] Growth Drivers - Increasing momentum in the all-flash portfolio and growth in cloud storage services are expected to support NetApp's performance [3] - The company has gained nearly 3 percentage points in all-flash market share and 1 percentage point in block storage in 2024 [4] - All-flash systems and public cloud services now account for over two-thirds of revenue, up from less than half five years ago [4] Segment Performance - The all-flash array annualized revenue run rate increased by 14% year-over-year to a record $4.1 billion [5] - The Public Cloud segment revenue is projected to reach $173 million, an 8.9% increase year-over-year, with first-party and marketplace storage services growing by 44% [7][10] Market Trends - The enterprise AI market is driving customers to modernize their data infrastructure, which is expected to enhance long-term growth prospects for NetApp [6] - Strong partnerships with hyperscalers like Amazon and Microsoft position NetApp favorably in the cloud infrastructure market [7] Outlook - Despite positive growth trends, the global macroeconomic environment remains uncertain, with anticipated customer spending caution and challenges in the U.S. Public Sector and EMEA [8]