2015 Getty Images / Getty Images News via Getty Images Shares of Palantir Technologies (NASDAQ: PLTR) fell 3.56% yesterday and then another 1.1% in after horus trading. While Palantir is a volatile stock, that's a nearly 5% move in 24h for a stock that was also seeing an extreme rebound in investor sentiment following an meme worthy interview CEO Alex Karp gave The delta between sentiment and sell off just points to a recurring pattern in meme stocks, where viral enthusiasm doesn't always translate to in ...

Core Insights - Palantir Technologies has experienced significant stock growth, rallying over 150% year-to-date, while the S&P 500 increased by 15% [1] - The company has demonstrated strong revenue growth and profitability, but questions remain about sustaining this momentum [2] Business Model - Palantir operates two main platforms: Gotham for government clients and Foundry for commercial clients, with 54% of revenue from Gotham and 46% from Foundry in the latest quarter [3] Financial Performance - Palantir's revenue growth has fluctuated, with government revenue growth decreasing from 77% in 2020 to 14% in 2023, while commercial revenue growth has also slowed [6][7] - The company reported a GAAP net income that more than doubled year-over-year in both 2024 and the first nine months of 2025, contributing to its inclusion in major stock indices [10][11] Future Projections - For the full year, Palantir expects revenue to rise by 53%-54% to approximately $4.4 billion, with an adjusted operating margin of 49% [12] - Analysts project a compound annual growth rate (CAGR) of 41% for revenue and 37% for GAAP EPS from 2024 to 2027 [13] Valuation Concerns - Palantir's current stock price of $193 and market cap of $491.5 billion suggest a valuation of over 300 times next year's earnings and 83 times next year's sales, raising concerns about sustainability [14]

Core Viewpoint - Block Inc.'s third quarter results were mixed, but JPMorgan analyst Tien-tsin Huang maintains an Overweight rating with a $100 price target, believing the company is on track to achieve the Rule of 40 by 2026 [1][6]. Group 1: Financial Performance - The third quarter showed a blend of momentum and margin challenges, including a $70 million event impacting profitability [2]. - Cash App's gross profit increased by 24% year over year, a significant rise from 16% in the previous quarter, driven by improved monetization and a 134% increase in Borrow originations [3]. - Square's gross profit grew by 9%, with Gross Payment Volume (GPV) up 12%, slightly exceeding forecasts despite higher processing costs affecting margins [5]. Group 2: User Metrics and Growth - Monthly transacting actives for Cash App rose to 58 million after six consecutive quarters of stagnation, with primary banking users reaching 8.3 million in September and an additional 400,000 in October [3][4]. - Huang noted that the growth flywheel for Cash App, encompassing Borrow, banking, and user engagement, is gaining momentum [4]. Group 3: Market Outlook - Despite the $70 million event affecting quarterly optics, JPMorgan believes Block's ecosystems are accelerating, user metrics are improving, and margins will normalize as temporary challenges dissipate [6]. - The company is expected to face a non-linear recovery, but the right conditions are believed to be in place for future profitability and operational discipline by 2026 [6].

Financial Data and Key Metrics Changes - Gross profit grew 18% year-over-year to $2.66 billion, accelerating from 14% growth last quarter [8] - Adjusted operating income was $480 million, with adjusted operating income margins at 18% [15] - Adjusted EBITDA was $833 million, reflecting strong profitability despite investments for long-term growth [15] - Full-year guidance for gross profit is set at $10.243 billion, indicating over 15% year-over-year growth [16] Business Line Data and Key Metrics Changes - Cash-up's gross profit grew 24% year-over-year, with monthly active users reaching 58 million [9] - Square's gross profit grew 9% year-over-year, with GPV growing 12% [10] - Cash-up borrow origination volume increased 134% year-over-year, reaching nearly $22 billion on an annualized basis [42] Market Data and Key Metrics Changes - GPV from sellers above half a million dollars grew 20% year-over-year, marking the strongest growth rate since Q1 2023 [13] - International markets saw GPV growth of 26% year-over-year, particularly strong in the telesales channel [13] Company Strategy and Development Direction - The company is focused on connecting sellers and consumers at scale, leveraging AI tools for operational efficiency, and enhancing software solutions for sellers [11][12] - The strategy includes expanding Cash-up's capabilities and integrating new products to drive engagement and growth [10][12] - The company aims to enhance its lending products and maintain healthy risk loss rates while expanding credit access [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges, with strong performance metrics observed in Q3 and October [58] - The company anticipates continued growth in gross profit and adjusted operating income margins, approaching Rule of 40 by 2026 [16][17] - Management highlighted the importance of data-driven decision-making and flexibility in operations to adapt to changing market conditions [60] Other Important Information - The company repurchased approximately $1.5 billion of stock this year, indicating a commitment to returning capital to shareholders [15] - The Bitcoin mining business, Proto, generated its first revenue, indicating potential for future growth [14] Q&A Session Summary Question: Update on Cash-up active growth and network density - Management reported strong progress with 58 million monthly actives and continued investments in engagement strategies [22][24] Question: Field sales team productivity and GPV contributions - The field sales team has scaled significantly, with strong paybacks and expectations for continued growth in GPV [29][32] Question: Concerns about credit quality of borrow products - Management emphasized the importance of AI-driven underwriting and strong product-market fit for borrow products, maintaining healthy risk loss rates [41][42] Question: Visibility on macroeconomic impacts and guidance - Management noted strong performance metrics and healthy returns on investments, with a data-driven approach to guide future expectations [58][60] Question: Square Bitcoin integration and testing - Management expressed excitement about the upcoming launch of Bitcoin payments, highlighting ease of use and potential for seller adoption [68][69] Question: Competitive momentum and pricing environment - Management indicated strong performance against competitors, with no significant pricing changes impacting the business [73][78] Question: Unique opportunities with Afterpay - Management highlighted significant growth in post-purchase Afterpay, with expectations for continued expansion and adoption [81]

Financial Data and Key Metrics Changes - Gross profit grew 18% year over year to $2.66 billion, accelerating from 14% growth last quarter [8] - Adjusted operating income was $480 million, with adjusted operating income margins at 18% for the quarter [15][16] - Adjusted EBITDA was $833 million, reflecting strong profitability despite investments for long-term growth [15] Business Line Data and Key Metrics Changes - Cash-up's gross profit grew 24% year over year, with primary banking actives increasing 18% to 8.3 million [9][10] - Square's gross profit grew 9% year over year, with GPV growing 12% [10] - Cash-up borrow origination volume increased 134% year over year, reaching nearly $22 billion on an annualized basis [43] Market Data and Key Metrics Changes - GPV from sellers above half a million dollars grew 20% year over year, indicating strong performance in larger seller segments [13] - International markets saw GPV growth of 26% year over year, particularly strong in the telesales channel [13] Company Strategy and Development Direction - The company is focused on connecting sellers and consumers at scale, leveraging AI tools for operational efficiency, and enhancing software solutions for sellers [11][12] - The strategy includes expanding Cash-up's capabilities and integrating new products to drive engagement and growth [10][12] - The company aims to enhance its market position by offering a comprehensive ecosystem that includes payment processing, banking, and lending products [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic conditions, with strong performance indicators observed in Q3 and October [58][59] - The company anticipates continued growth in gross profit and adjusted operating income for Q4, with expectations of approaching Rule of 40 by 2026 [16][17] - Management highlighted the importance of ongoing investments in marketing and product development to sustain growth momentum [15][59] Other Important Information - The company repurchased approximately $1.5 billion of stock this year and plans to continue returning capital to shareholders [15] - The upcoming Investor Day on November 19 will provide further insights into long-term financial performance and strategic priorities [18] Q&A Session Summary Question: Update on Cash-up active growth and network density - Management reported strong progress with 58 million monthly actives in September, with continued acceleration in growth [22] Question: Field sales team productivity and GPV contributions - The field sales team has scaled to over 100 reps, with strong paybacks and expected growth in NVA [32][33] Question: Concerns about credit quality of borrow products - Management emphasized the importance of AI-driven underwriting, with borrow performance showing strong metrics and healthy risk loss rates [41][44] Question: Insights on Square's competitive momentum - Management noted strong growth from both new and returning sellers, with a focus on simplifying pricing structures to enhance competitiveness [72][76] Question: Unique opportunities with Afterpay - Management highlighted significant growth in post-purchase Afterpay, with adoption trending ahead of expectations [80]

Financial Data and Key Metrics Changes - Gross profit grew 18% year over year to $2,660 million, accelerating from 14% growth in the previous quarter [9] - Adjusted operating income was $480 million, showing strong profitability despite increased investments for long-term growth [9] - Adjusted EBITDA was $833 million, with adjusted operating income margins at 18% for the quarter [19] Business Line Data and Key Metrics Changes - Cash App's gross profit grew 24% year over year, up from 16% in the second quarter, with 58 million monthly active users [10] - Square's gross profit grew 9% year over year, with GPV growing 12% [12] - Cash App Borrow saw a 134% year-over-year growth in originations, reaching $22 billion annualized [52] Market Data and Key Metrics Changes - International markets saw GPV grow 26% year over year, particularly strong in the telesales channel [17] - GPV from sellers above $5 million in volume grew 20% year over year, marking the strongest growth rate since Q1 2023 [16] Company Strategy and Development Direction - The company is focused on three key opportunities: connecting sellers and consumers, delivering AI tools to sellers, and simplifying selling with software solutions [13][14] - The strategy includes leveraging the Cash App's network to enhance seller visibility and engagement through features like Neighborhoods [13] - The company aims to expand its field sales team and improve marketing effectiveness to drive growth [16][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the macroeconomic environment, citing strong performance metrics and healthy returns on investments [72] - The company raised its full-year guidance, expecting gross profit growth of over 19% year over year for 2025 [21] - Management highlighted the importance of ongoing investments in product development and marketing to sustain growth momentum [76] Other Important Information - The company repurchased approximately $1.5 billion of stock this year and plans to continue returning capital to shareholders [20] - The company is excited about the upcoming Investor Day, where it will provide deeper insights into its long-term financial performance [23] Q&A Session Summary Question: Update on Cash App Actives Growth - Management reported strong progress with 58 million monthly active users and continued acceleration in year-over-year growth [28] Question: Field Sales Team Productivity - The field sales teams are performing well, with a year-to-date sales-driven NVA growth of 28% [40] Question: Concerns about Borrow Product Credit Quality - Management emphasized the importance of the borrow product in expanding credit access and reported strong performance metrics, including a 134% year-over-year growth in originations [52] Question: Square Bitcoin Integration - The company is excited about launching Bitcoin payments for sellers, with positive feedback from beta merchants [84] Question: Competitive Momentum on Square Side - Management noted strong win rates against both legacy point-of-sale systems and direct competitors, with a focus on expanding market share [95]

Financial Data and Key Metrics Changes - Gross profit grew 18% year over year to $2.66 billion, accelerating from 14% growth last quarter [6] - Adjusted operating income was $480 million, with adjusted operating income margins at 18% [13][15] - Adjusted EBITDA was $833 million in the third quarter [13] - Full-year guidance for gross profit is set at $10.243 billion, reflecting over 15% year-over-year growth [15] Business Line Data and Key Metrics Changes - Cash-up's gross profit grew 24% year over year, with primary banking actives increasing 18% to 8.3 million [7][8] - Square's gross profit grew 9% year over year, with GPV growing 12% [8] - Cash-up's gross profit per monthly transacting active grew 25% year over year to $94 [7] - New products like post-purchase buy now, pay later reached $3 billion in annualized originations [7] Market Data and Key Metrics Changes - GPV from sellers above half a million dollars in volume grew 20% year over year [11] - International markets saw GPV growth of 26% year over year [11] - Cash-up's inflows per active grew 10% year over year [23] Company Strategy and Development Direction - The company is focused on connecting sellers and consumers at scale, delivering AI tools to sellers, and making selling easier with integrated solutions [9][10] - The strategy includes leveraging Cash-up's network to enhance seller visibility and engagement [9] - The company aims to expand its lending products while maintaining healthy risk loss rates [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic conditions, with strong performance indicators observed in Q3 and October [55] - The company expects to deliver its strongest NVA performance ever in 2025 through expanding field sales and targeted marketing [11] - Management highlighted the importance of product innovation and customer engagement in driving future growth [40] Other Important Information - The company repurchased approximately $1.5 billion of stock this year and intends to continue returning capital to shareholders [14] - The Bitcoin mining business, Proto, generated its first revenue, indicating potential for future growth [12] Q&A Session Summary Question: Progress on Cash-up active growth and network density - Management reported strong progress with 58 million monthly actives in September, with continued acceleration in growth [20] Question: Field sales team productivity and GPV contributions - The field sales teams have shown strong paybacks and are expected to continue scaling, contributing to GPV growth [28][30] Question: Concerns about credit quality of borrow products - Management emphasized the importance of AI and ML in underwriting, maintaining healthy risk loss rates while expanding borrow [39][41] Question: Growth drivers for Cash-up beyond borrow - Management highlighted the ecosystem approach, with diverse products driving durable growth [46][48] Question: Competitive momentum and pricing environment - Management noted strong performance against competitors, with no significant pricing changes impacting the business [66][70] Question: Unique opportunities with Afterpay - Management discussed strong growth in Afterpay, particularly with post-purchase offerings, and plans for further expansion [75]

Financial Data and Key Metrics Changes - In Q3 2025, Five9 reported revenue of $286 million, representing an 8% year-over-year growth [19] - Subscription revenue, which constitutes 81% of total revenue, grew by 10% year-over-year, primarily driven by enterprise AI revenue, which increased by 41% year-over-year [20] - Adjusted EBITDA grew by 37% year-over-year, achieving a margin of 25%, while free cash flow increased by 84% year-over-year, reaching a margin of 13% [5][23] Business Line Data and Key Metrics Changes - Enterprise AI bookings grew over 80% year-over-year, contributing to a healthy backlog [5] - Telecom usage accounted for 12% of revenue, while professional services made up 7%, both categories are not growth drivers and are becoming a smaller percentage of total revenue [20] - The commercial business represented 9% of total revenue but declined in the teens year-over-year as the company focuses on the enterprise market [21] Market Data and Key Metrics Changes - Gartner forecasts the traditional CCAS market to grow at a 9% CAGR and the GenAI customer service market at a 34% CAGR through 2029, leading to a combined annual spend of $48 billion [6] - Five9's dollar-based retention rate was 107% in Q3, down from 108% in Q2, attributed to tough comparisons from previous periods [21][22] Company Strategy and Development Direction - Five9 aims to maintain operational improvements while investing in AI and go-to-market initiatives, targeting the Rule of 40 by 2027 [5][28] - The company is focused on building strategic partnerships, with significant growth in ACV bookings with ServiceNow and Salesforce [12][19] - Five9 is positioned as a leader in the AI-powered customer experience market, leveraging its platform to integrate AI and human agents [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's foundation for the next decade, emphasizing the importance of AI in customer experience [12][13] - The CEO search is progressing well, with a focus on finding a leader experienced in product innovation and operational excellence [14] - The company anticipates a return to double-digit revenue growth in the second half of 2026, driven by strong install-based bookings and new logos [26][27] Other Important Information - Five9 announced a $150 million share repurchase program, reflecting confidence in long-term growth opportunities [19] - The company expects Q4 revenue to be approximately $297.7 million, indicating a sequential growth of 4% [24] Q&A Session Summary Question: What happened in the quarter regarding guidance? - Management noted that the growth environment is transitioning, leading to expectations of smaller beats in guidance. Subscription revenue growth was impacted by tough comparisons and a decline in commercial revenue due to underallocation of demand and a gap in sales capacity [30][31] Question: Why is it taking so long to translate install-based bookings to revenue? - Management explained that install-based bookings have longer implementation cycles, and revenue conversion will ramp up throughout 2026, particularly in the second half of the year [35][36] Question: What is the current state of the bookings environment? - The company reported strong bookings momentum, with AI bookings up 80% year-over-year and record install-based bookings [40][41] Question: Are there any pricing pressures on core live agent seats? - Management indicated that there is no significant pricing pressure at renewal time, and customers are looking for pricing models that incorporate AI [79][81]

Q3 2025 Block Investor Presentation investors.block.xyz Block Investor Presentation 2 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 can be identified by words such as "anticipate,ˮ "believe,ˮ estimate,ˮ "expect,ˮ "goal,ˮ "intend,ˮ "likely,ˮ "may,ˮ "plan,ˮ "project,ˮ "seek,ˮ "should,ˮ "strategy,ˮ "will,ˮ ...

Financial Data and Key Metrics Changes - Q2 revenue increased by 8% to $200 million, surpassing guidance by $3 million [17] - Non-GAAP operating income rose by 10% to $45 million, exceeding guidance by $6 million [17] - GAAP operating income more than doubled, with a margin expansion of seven percentage points to a record high [3][21] - Net new ARR was $14 million, marking the largest organic increase in the past seven quarters, with year-on-year growth of 7% [3][18] Business Line Data and Key Metrics Changes - Subscription revenue grew by 5% to $150 million, with fixed subscription revenue up 6% [17][21] - Marketplace and other revenue increased by 18% to $50 million, driven by a stable ad spending environment and new CTV integrations [20] - Million-dollar-plus subscription customers rose by five to a new high of 132 [4][18] Market Data and Key Metrics Changes - Total RPO (contracted backlog) increased by 29% to $652 million, while current RPO was up 15% to $430 million [18] - Subscription net retention was 102%, aligning with the near-term expectation of 100-105% [18] Company Strategy and Development Direction - The company is focusing on AI product enhancements and a new usage-based pricing model to drive growth [3][11] - Investments are being made in platform upgrades, AI capabilities, and the new pricing model to capture emerging opportunities [40][42] - The long-term goal is to achieve Rule of 40 by FY2028, with a current projection of Rule of 31 for this fiscal year [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of over 10% in the future, driven by AI and ongoing cost efficiencies [15][25] - The company is optimistic about the upcoming renewal periods in Q3 and Q4, with a robust pipeline and sustained sales momentum [27][46] Other Important Information - Free cash flow for the quarter was $57 million, with $50 million allocated for share repurchases [21] - The balance sheet remains strong with $377 million in cash and short-term investments and zero debt [21] Q&A Session Summary Question: Drivers of improvement in ARR - Key drivers included strong gross new ARR from cross-sell and upsell of Clean Room solutions, new logo activity, and lower customer churn [29][30] Question: Upsell opportunities in the second half - Management feels optimistic about upsell opportunities due to various growth levers, including Cross Media Intelligence and commerce media networks [31] Question: Implications of AI on business - The company has low exposure to the open web and sees high upside from AI, leveraging first and second-party data to enhance model effectiveness [33][34] Question: Macro-conservatism in revenue guidance - The guidance includes conservatism, particularly in variable revenue sources, with expectations of consistent macro conditions [35][36] Question: Mix of retail and CPG versus non-retail in incremental ARR - Growth is being seen in both retail and commerce media, with a focus on expanding partnerships beyond traditional retail [37][38]