Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported signings growth of 48% in constant currency, totaling over $18 billion [6] - Adjusted pretax income increased by $317 million to $482 million, with adjusted free cash flow rising by 53% to $446 million [6][27] - The fourth quarter revenue reached $3.8 billion, reflecting a 1.3% year-over-year increase in constant currency [22] Business Line Data and Key Metrics Changes - Kindrel Consult's revenue grew by 45% in the fourth quarter and 50% in signings for fiscal year 2025, accounting for 22% of total signings [23][15] - Hyperscaler-related revenue more than doubled to $1.2 billion for the year, significantly exceeding the target of $1 billion [25][7] - The company achieved $900 million in annualized savings from its accounts initiative, surpassing its target for the year [26] Market Data and Key Metrics Changes - The company secured 55 contracts valued over $50 million in fiscal year 2025, with nearly half exceeding $100 million [10] - The signings growth was broad-based across various geographies and vertical markets, indicating strong demand for services [9] - The revenue book-to-bill ratio remained above one, suggesting future revenue growth from committed contracts [10] Company Strategy and Development Direction - The company is focused on leveraging its capabilities, partnerships, and innovation to drive sustainable growth [5] - The 3A initiatives have transitioned from turnaround drivers to pillars of profitable growth [7] - The company aims to address secular IT trends such as cloud migration, hybrid IT environments, and cybersecurity risks [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, citing the essential nature of its services [20][19] - The outlook for fiscal year 2026 includes expectations for substantial earnings and cash flow growth, with a target of at least $725 million in adjusted pretax income [18][33] - Management highlighted the importance of continued investment in innovation and capabilities to maintain growth momentum [45] Other Important Information - The company plans to balance capital allocation between organic growth investments and share repurchase programs [73] - The fiscal year 2026 outlook anticipates a 1% revenue growth in constant currency, with hyperscaler-related revenue expected to reach $1.8 billion [32][33] - The company maintains a strong liquidity position with nearly $5 billion available at quarter-end [30] Q&A Session Summary Question: Accomplishments in 2025 and positioning for 2026 - Management reflected on the successful execution of their strategy and expressed confidence in their ability to control their own destiny moving forward [42][45] Question: Progress with focus accounts - Management indicated they are approximately 75% through their focus accounts, having achieved 90% of targeted savings [50][48] Question: Book-to-bill ratio maintenance - Management confirmed expectations to maintain a book-to-bill ratio above one, driven by strong performance in consult and hyperscaler-related services [55] Question: Revenue growth guidance - Management explained that while signings growth was strong, they are not relying solely on revenue growth to achieve profit improvement, emphasizing the importance of backlog [66][69] Question: Impact of macro uncertainties on strategic accounts - Management noted that their services are essential for productivity, which tends to be a tailwind during uncertain macro conditions [81][84] Question: Role of Kindle Bridge in macro conditions - Management affirmed that Kindle Bridge can help uncover unused resources and provide leverage in uncertain macro conditions [86]

Financial Data and Key Metrics Changes - Kyndryl reported a 48% increase in signings in constant currency, totaling over $18 billion for fiscal year 2025 [6] - Adjusted pretax income rose by $317 million to $482 million, with adjusted free cash flow increasing by 53% to $446 million [6][27] - The fourth quarter revenue reached $3.8 billion, reflecting a 1.3% year-over-year increase in constant currency [22] Business Line Data and Key Metrics Changes - Kyndryl Consult's revenue grew by more than 25% for the year, with consult signings increasing by 50% in constant currency [7][14] - Hyperscaler-related revenue more than doubled to $1.2 billion for the year, significantly exceeding the target of nearly $1 billion [26] - The adjusted EBITDA margin for the fourth quarter was 18.4%, up 370 basis points year-over-year [24] Market Data and Key Metrics Changes - The company secured 55 contracts valued at over $50 million in fiscal year 2025, an increase from 40 contracts in the prior year [10] - Nearly half of these contracts were valued over $100 million, indicating strong demand across various geographies and verticals [10] - The revenue book-to-bill ratio remained above one, indicating future revenue growth from committed contracts [10] Company Strategy and Development Direction - Kyndryl's strategy focuses on building capabilities, partnerships, and innovation to drive sustainable growth, particularly in mission-critical technology services [5] - The company aims to leverage its expanded capabilities and strong customer relationships to win higher value opportunities [12] - The 3A initiatives have shifted from turnaround drivers to pillars of profitable growth, with expectations for substantial earnings and cash flow growth in fiscal year 2026 [8][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, emphasizing the essential nature of its technology services [20][21] - The outlook for fiscal year 2026 includes expectations for approximately $550 million in adjusted free cash flow and at least $725 million in adjusted pretax income [19][34] - Management highlighted the importance of continued investment in innovation and capabilities to maintain growth momentum [46] Other Important Information - Kyndryl's cash balance was $1.8 billion, with nearly $5 billion in liquidity at quarter end [31] - The company has a target to keep net leverage below one times adjusted EBITDA, ending the quarter at 0.6 times [32] - The fiscal year 2026 outlook assumes a 1% revenue growth in constant currency, with hyperscaler-related revenue expected to reach $1.8 billion [33][34] Q&A Session Summary Question: Accomplishments in 2025 and positioning for 2026 - Management reflected on the successful execution of their strategy and expressed confidence in their ability to control their own destiny through continued investment in innovation [44][46] Question: Progress with focus accounts - Management indicated they are approximately 75% through their focus accounts, having achieved 90% of targeted savings, with a revised target of $1 billion in annualized benefits [50][52] Question: Book to bill ratio and backlog duration - Management confirmed expectations to maintain a book to bill ratio above one, driven by strong performance in consult and hyperscaler-related services [58] Question: Revenue growth guidance - Management explained that while signings growth was strong, they are not relying solely on revenue growth to achieve profit improvement, as a significant portion of revenue is already contracted [70][72] Question: Impact of macro uncertainties on strategic accounts - Management noted that uncertainty tends to be a tailwind for their business, as clients seek to optimize their infrastructure in response to macro conditions [82][84] Question: Role of Kyndryl Bridge in uncertain conditions - Management affirmed that Kyndryl Bridge can help uncover unused resources and provide actionable insights, aiding clients in optimizing their operations [88][90]

Rosenblatt analyst Blair Abernethy maintained a buy on Datadog DDOG and lowered the price target from $160 to $150 on Sunday.Datadog will report first-quarter 2025 results on May 6, before the market opens.For the first quarter, Abernethy expected total revenue of $739.6 million (versus FactSet Consensus of $741.7 million, guidance: $737 million-$741 million), up 21% Y/Y organically.Also Read: Datadog Q4 Earnings: Margins Shrink, Outlook Lags ExpectationsAdjusted operating income of $164.9 million (versus F ...

Financial Data and Key Metrics Changes - The company reported revenues of $100.4 million for Q1 2025, representing a year-over-year growth of 25.8% and slightly exceeding guidance [33] - Non-GAAP EBITDA for the quarter was $14.6 million, outperforming guidance and reflecting strong revenue recognition timing [33] - GAAP net income was $2.9 million, a decrease from the previous quarter due to higher operating costs [39] Business Line Data and Key Metrics Changes - Retail accounted for 31.4% of total revenues, growing 28% year-over-year but declining 3.7% sequentially [34] - Finance became the second largest vertical, contributing 24.9% of total revenues with a year-over-year growth of 144.3% driven by recent acquisitions [34] - TMT represented 23.5% of revenues, remaining flat sequentially and declining 1.8% year-over-year [35] Market Data and Key Metrics Changes - The company experienced a strong demand environment, particularly in the financial sector, with three of the top ten customers now in finance [7] - Partnerships contributed 16% of total revenue in Q1, with expectations for acceleration throughout 2025 [14] - The company noted increased traction with hyperscalers, particularly Google, leading to significant migration and modernization programs [15] Company Strategy and Development Direction - The company aims to align investments with changing industry needs, focusing on technological leadership and innovative solutions [13] - AI initiatives are a key focus, with a growing pipeline of opportunities and a shift towards enterprise-scale implementations [11] - The strategy includes expanding capabilities in AI and platform engineering to deliver measurable client impact [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainties but expressed confidence in navigating near-term volatility [14] - The outlook for Q2 2025 anticipates revenues between $100 million and $102 million, with a full-year revenue outlook maintained at $415 million to $435 million [40][41] - Management highlighted a strong billable engineering headcount as a leading indicator of future growth [8] Other Important Information - The company successfully integrated engineering teams from recent acquisitions to support enterprise accounts [10] - The internship program gained momentum, with several hundred interns placed in billable roles [20] - The company is expanding its presence in India, which is expected to become a significant delivery hub [79] Q&A Session Summary Question: Can you provide insights on client behavior and decision-making pace? - Management noted no major impacts from recent economic activities, with strategic projects continuing uninterrupted [47][48] Question: What is the guidance for the year based on current contracts? - Management indicated that contractually committed projects are stable, with a good ramp-up expected in the coming months [50][51] Question: How is the hiring strategy evolving? - The company has maintained a consistent hiring approach, focusing on internal skill development rather than market dependency [54][56] Question: Are there any changes in client behavior, particularly in retail? - Management reported stable client relationships, with no significant slowdowns expected, especially in online services [62][67] Question: What drives the visibility for growth in the second half of the year? - Management highlighted a combination of existing client ramp-ups and new client acquisitions as key growth drivers [81][88]

Financial Data and Key Metrics Changes - Grid Dynamics reported revenues of $100.4 million for Q1 2025, exceeding guidance and representing a year-over-year growth of 25.8% [32] - Non-GAAP EBITDA for the quarter was $14.6 million, outperforming guidance and reflecting a year-over-year increase from $10.3 million [32][39] - GAAP net income was $2.9 million, a decrease from $4.5 million in the previous quarter, attributed to higher operating costs [39] Business Line Data and Key Metrics Changes - Retail accounted for 31.4% of total revenues, growing 28% year-over-year but declining 3.7% sequentially [33] - Finance became the second largest vertical, contributing 24.9% of total revenues with a year-over-year growth of 144.3% [34] - TMT represented 23.5% of revenues, remaining flat sequentially and declining 1.8% year-over-year [34] Market Data and Key Metrics Changes - Revenues from top five customers accounted for 35.6% of total revenues, down from 39.6% a year ago [37] - The total customer count decreased to 204 from 211 in the previous quarter, driven by efforts to rationalize the customer portfolio [38] Company Strategy and Development Direction - The company aims to align investments with changing industry needs, focusing on technological leadership and AI capabilities [12] - Grid Dynamics is expanding its presence in India, which is becoming a hub for multi-agent and multi-modal platform engineering [16][72] - The strategy includes diversifying into new industries such as manufacturing, pharmaceuticals, and fintech while enhancing AI offerings [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainties but expressed confidence in the stability of client projects and demand [13][49] - The company maintains its full-year revenue outlook of $415 million to $435 million, expecting stronger performance in the second half of 2025 [12][41] - Management noted that partnerships contributed 16% of total revenue in Q1 and anticipate this to accelerate throughout 2025 [13] Other Important Information - The company successfully integrated engineering teams from recent acquisitions, enhancing capabilities in banking and financial services [9] - AI initiatives are gaining traction, with a growing pipeline of opportunities and a shift towards enterprise-scale implementations [10][29] Q&A Session Summary Question: Client behavior and decision-making pace - Management noted no major impacts from recent economic activities, with strategic projects continuing uninterrupted [48][49] Question: Guidance for 2025 and contractually committed work - Management indicated that business decisions for 2025 have been made, contributing to a strong outlook despite some cautiousness [52][54] Question: Hiring intentions and employee utilization - The company has maintained a consistent hiring strategy, focusing on internal skill development rather than solely relying on market talent [56][58] Question: Changes in client behavior in retail and TMT verticals - Management reported stable client behavior, particularly in online services, with no expected slowdowns from major clients like Apple [62][68] Question: Growth drivers for the second half of 2025 - Management expects growth across various verticals, with a focus on existing and new clients contributing to the anticipated ramp-up [80][89]

Mexican telecommunications operator reduces bill run times by 70% and achieves greater agility with Oracle Digital Business Experience on Oracle Cloud Infrastructure MEXICO CITY and AUSTIN, Texas, May 1, 2025 /PRNewswire/ -- Izzi, a subsidiary of Televisa Group, is modernizing its business support systems (BSS) in the cloud to bolster customer experience. By upgrading to the latest version of Oracle Communications Digital Business Experience running on Oracle Cloud Infrastructure (OCI), Izzi has reduced bil ...

Core Insights - The USDA has selected Oracle Cloud as part of its STRATUS program to enhance efficiency and modernize operations for federal agencies [1][4] - STRATUS provides a streamlined access to cloud infrastructure solutions, technical support services, and training for federal agencies [1][2] - Oracle Cloud services included in STRATUS encompass database, compute, storage, AI infrastructure, and applications [1] Group 1 - STRATUS enables both USDA and non-USDA agencies to utilize Oracle Cloud Infrastructure (OCI) services, promoting multicloud solutions and reducing management complexity [3][4] - OCI offers significant cost advantages, with average savings of 50% for compute, 70% for storage, and 80% for networking compared to other cloud providers [3] - The program aims to accelerate cloud migration for civilian and defense agencies, leveraging Oracle's applications and superior AI capabilities [4] Group 2 - Oracle provides integrated suites of applications and secure, autonomous infrastructure within its cloud offerings [5] - The USDA's mission includes promoting agricultural production, economic opportunity through innovation, and conservation of natural resources [4]

Financial Performance - Total revenue for fiscal year 2024 was $25.4 million, a 2% increase from $25 million in 2023, reflecting a transition towards subscription-based recurring revenue [10][28] - Net income improved significantly to $513,000, up nearly 71% from $299,000 in 2023, indicating margin expansion and a more efficient cost structure [12][32] - Adjusted EBITDA reached $2.37 million, compared to $1.64 million last year, showcasing the ability to scale while maintaining profitability [12][31] - Cash and marketable securities stood at $12.3 million, with no debt, providing operational flexibility for future growth [13][32] Business Segment Performance - Cloud Infrastructure and Disaster Recovery Service segment revenue grew 27% year-over-year to $12.3 million, constituting 51% of total revenue [11] - The annual recurring revenue run rate was $21.5 million, indicating a shift towards a more stable and scalable business model [11] Market and Geographic Expansion - The company launched CloudFirst Europe Limited, establishing a presence in the U.K. and deploying three Tier 3 data centers to comply with regulatory requirements [17][18] - The total addressable market in Europe for IBM organizations exceeds 50,000 companies, indicating significant growth potential [25] Strategic Direction and Industry Position - The company aims to become a global leader in cloud infrastructure services, focusing on core strengths and targeted geographic expansion [9] - The merger of Flagship and CloudFirst in January 2024 is expected to enhance internal efficiency and create a stronger go-to-market strategy [20] Management Commentary on Future Outlook - Management expressed confidence in the company's ability to maintain a high-retention recurring revenue model and capitalize on growing demand in regulated markets [26] - The focus remains on organic growth, with a disciplined approach to capital allocation and potential for free cash flow positivity in 2025 [73][76] Other Important Information - Selling, general and administrative expenses increased by 13% to $11 million, primarily due to professional fees and international expansion efforts [27][30] - The company is exploring stock buybacks as a means to address undervaluation in the market, while prioritizing cash for organic growth [75][78] Q&A Session Summary Question: What are the spending plans for 2025? - Management indicated that they expect some CapEx spending but do not foresee significant increases in operational expenses [35][42] Question: How comprehensive is the U.K. expansion in covering cloud migration opportunities? - Management acknowledged the need for continuous improvement in lead generation and conversion, emphasizing ongoing efforts in marketing [45][48] Question: What is driving success in regulated markets? - Management highlighted the importance of compliance, cybersecurity, and their reputation in data migration as key factors driving wins in regulated sectors [49][53]

Financial Data and Key Metrics Changes - Annual Recurring Revenue (ARR) finished at $918 million, reflecting strong sequential additions with a net new ARR of $45 million [24][25] - Total revenue was $289 million, up 20% year over year, exceeding the high end of the outlook [26] - Subscription and support revenue reached $178 million, showing a 35% year over year growth [26] - Gross profit was $189 million, representing a 25% year over year growth, with an overall gross margin of 65% [27] - Operating profit for the quarter was $54 million, ahead of expectations due to higher gross profit and lower operating expenses [28] Business Line Data and Key Metrics Changes - Closed twelve cloud deals in Q2, including four full insurance suite deals and six cloud migrations [13][15] - Services revenue finished at $48 million, aligning with expectations, while services gross margin improved to 6% from negative 11% a year ago [26][27] - The company welcomed five new customers, including one in Brazil and one in Belgium, indicating geographical expansion [15] Market Data and Key Metrics Changes - Sales activity was concentrated in North America and Europe, with about a third of deals in Europe [16] - The company noted strong growth in cloud deployments, with 26,000 Guidewire-focused practitioners across 38 system integrators [19] Company Strategy and Development Direction - The company aims to transition 100% of its on-prem customer base to its cloud platform, emphasizing the importance of modern systems for agility and competitiveness in the insurance industry [12][51] - The Guidewire Marketplace now has over 500 applications, indicating a robust ecosystem for cloud applications [20] - The company is focused on maintaining a high-functioning insurance market, especially in light of recent catastrophic events [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the property and casualty insurance industry despite recent catastrophes [17] - The company raised its ARR outlook for fiscal year 2025 to between $1 billion and $1.01 billion, reflecting a growth of 16% to 17% year over year [34] - Management highlighted the importance of generative AI and machine learning in enhancing productivity and efficiency within the insurance sector [73][76] Other Important Information - The company retired an additional $100 million of its 2025 convertible notes, limiting share dilution risk [30][33] - Operating cash flow ended the quarter at $86 million, ahead of expectations due to strong collections [29] Q&A Session Summary Question: How much adaptability and interoperability comes into play in conversations with carriers? - Management noted that modern platforms bring agility to operations, enabling better management of indemnity and expense ratios [50][51] Question: How do you balance margin outperformance with reinvestment opportunities? - Management emphasized a focus on growth while maintaining margin expansion, with plans for increased hiring in targeted investment areas [56][58] Question: How do you view the situation with state-backed property insurers? - Management stated that these insurers operate similarly to traditional insurance companies and expressed excitement about serving this segment [137][140] Question: What is the outlook for services gross margins? - Management indicated that while they expect some improvement in services margins, the primary focus remains on ensuring successful software implementations [92][94] Question: How is the cloud conversation evolving across geographical footprints? - Management observed a step-up in cloud deals globally, with successful implementations across various regions [111][113]

Industry Overview - The cybersecurity landscape is increasingly complex, with cybercriminals employing various techniques such as credential theft, remote desktop protocol attacks, and social engineering to exploit vulnerabilities [1] - The rise of artificial intelligence has further complicated traditional cybersecurity products, enabling more adaptive and automated attacks, including AI-generated deepfake voices for phishing [2] - Demand for updated cybersecurity products is surging due to the increase in ransomware and phishing attacks, as well as the shift towards remote and hybrid work necessitating enhanced endpoint security [3] Market Growth - The global cybersecurity market is projected to grow at a robust CAGR of 9.4% from 2023 to 2028, presenting a significant investment opportunity [4] Company Highlights Okta, Inc. (OKTA) - Okta is a leading provider of identity security, offering solutions like Workforce Identity Cloud and Customer Identity Cloud, which are gaining traction due to digital transformation and cloud migration [5][6] - Fiscal 2026 revenue is anticipated to be between $2.85 billion and $2.86 billion, with a year-over-year growth of 6.5% [7] - The company has seen a 49.5% increase in stock price over the past six months, outperforming the First Trust NASDAQ Cybersecurity ETF [7][8] Fortinet Inc. (FTNT) - Fortinet provides a comprehensive range of cybersecurity solutions, including firewalls, VPNs, and advanced threat protection, serving over 450,000 customers globally [9][10] - Fiscal 2025 revenue is expected to be between $6.65 billion and $6.85 billion, indicating a year-over-year growth of 13.5% [11] - The stock has risen 42.1% in the past six months, with an average earnings surprise of 24.8% over the last four quarters [12] CrowdStrike Holdings, Inc. (CRWD) - CrowdStrike offers its services through the Falcon platform, which is recognized as a leading cloud-native security solution [13] - Fiscal 2025 revenue is projected to be between $3.9238 billion and $3.9305 billion, reflecting a year-over-year growth of 28.6% [15] - The company has achieved a 47.8% stock price increase in the past six months, with an average earnings surprise of 10.3% [16]