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]

Core Viewpoint - Palantir's stock declined nearly 8% despite reporting strong earnings, highlighting market volatility and investor sentiment towards high-growth and speculative stocks [13][24]. Group 1: Market Overview - The stock market is perceived as overvalued, leading to a sell-off, with the Dow dropping 251 points and the S&P 500 losing 1.17% [2]. - There are three distinct market segments: high growth tech, the real economy, and speculative stocks [3]. Group 2: High Growth Tech Market - The tech data center economy includes companies at the forefront of the fourth industrial revolution, often trading at high price-to-earnings multiples [4]. - The average S&P 500 stock trades at 23 times next year's earnings, while leading tech companies like Amazon, Apple, Microsoft, and Nvidia trade at premiums, with multiples around 30 to 33 [5][6]. Group 3: Palantir's Performance - Palantir reported 63% revenue growth and a 51% adjusted operating margin, surpassing the "rule of 40" and achieving a "rule of 100" score, indicating exceptional performance [16][17]. - Despite strong growth metrics, Palantir's stock was valued at over 300 times earnings, leading to concerns about its high valuation compared to its $4 billion revenue [18][19]. Group 4: Investor Sentiment - The decline in Palantir's stock after a strong earnings report reflects broader investor anxiety about high-growth and speculative stocks, causing a ripple effect across the market [24]. - Investors are cautioned against overreacting to individual stock movements, as it can lead to misjudgments about the overall market [32].

Core Insights - Palantir (PLTR) reported strong Q3 results on November 3, achieving beats in both top-line and bottom-line figures [1] - The company's "Rule of 40," which combines revenue growth and profit margin percentages, reached a new record [1] Financial Performance - The Q3 results showcased healthy revenue growth and profitability, indicating robust operational performance [1] - Specific financial metrics were not detailed in the provided content, but the overall performance suggests positive trends in both revenue and profit margins [1]

Financial Data and Key Metrics Changes - Overall revenue grew 63% year-over-year and 18% sequentially, reaching $1.181 billion in Q3 [3][16] - The Rule of 40 score increased to 114%, up 46 points year-over-year and 20 points since the last quarter [3][14] - Adjusted operating margin reached 51%, exceeding prior guidance by 500 basis points [15][22] - Adjusted free cash flow for the trailing 12 months reached $2 billion for the first time [24] Business Line Data and Key Metrics Changes - U.S. commercial business revenue grew 121% year-over-year and 29% sequentially, accounting for 34% of overall revenue [4][15] - U.S. government business revenue grew 52% year-over-year and 14% sequentially [6][20] - Commercial revenue overall grew 73% year-over-year and 22% sequentially [17] Market Data and Key Metrics Changes - Customer count increased by 45% year-over-year to 911 customers [16] - Revenue from the top 20 customers increased 38% year-over-year to $83 million per customer [16] - International commercial revenue grew 10% year-over-year and 5% sequentially [19] Company Strategy and Development Direction - The company is focused on delivering AI leverage through its AIP platform, emphasizing value creation for customers [4][5] - There is a clear trend of customers transitioning to larger enterprise agreements, indicating a shift towards enterprise-wide AI adoption [5][6] - The company aims to maintain its unique position in the market by integrating advanced AI capabilities into its offerings [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum heading into Q4, with a clear mission to deliver AI capabilities that translate into performance [7][14] - The company highlighted the importance of AI in driving enterprise transformations, with C-suite executives taking ownership of AI initiatives [5][6] - Management noted that the current results are unprecedented for a software company, emphasizing the company's unique market position [27][30] Other Important Information - The company closed its highest-ever TCV quarter at $2.8 billion, up 151% year-over-year [16][20] - Adjusted gross margin was reported at 84% for the quarter [22] - The company has repurchased approximately 2.6 million shares as part of its share repurchase program [24] Q&A Session Summary Question: What do you see as Palantir's unique differentiator that others may not understand? - The company builds software that works for the real world, focusing on solving problems rather than just selling software [36][37] Question: Can you walk through the accelerated sales cycles observed? - Customers are increasingly approaching the company with a desire to reorganize their entire operations around Palantir's solutions, indicating a shift in expectations [48][50] Question: What changed from a behavioral perspective among customers? - Customers are realizing the limitations of other solutions and are now more interested in implementing Palantir's offerings to solve their core problems [62][64]

Financial Data and Key Metrics Changes - The company achieved a revenue growth of 63% year-over-year and 18% sequentially, reaching $1.181 billion in Q3 [3][16] - The Rule of 40 score increased to 114, up 46 percentage points year-over-year and 20 percentage points since the last quarter [3][14] - Adjusted operating margin reached 51%, exceeding prior guidance by 500 basis points [15][22] - The company generated $2 billion in trailing 12-month adjusted free cash flow for the first time [16][24] Business Line Data and Key Metrics Changes - U.S. commercial revenue grew 121% year-over-year and 29% sequentially, contributing significantly to overall performance [3][15] - U.S. government revenue increased by 52% year-over-year and 14% sequentially, driven by mission-critical capabilities [6][20] - The commercial segment reported a revenue growth of 73% year-over-year and 22% sequentially [17] Market Data and Key Metrics Changes - The U.S. market accounted for three-fourths of the company's business in Q3, with a growth rate of 77% year-over-year [3][15] - International commercial revenue grew 10% year-over-year and 5% sequentially, with targeted growth opportunities in Asia and the Middle East [19] Company Strategy and Development Direction - The company is focused on delivering AI leverage through its AIP platform, emphasizing value creation for customers [4][5] - There is a clear trend of customers transitioning to larger enterprise agreements, indicating a shift towards enterprise-wide AI adoption [5][6] - The company aims to maintain its unique position in the market by integrating advanced AI capabilities with its existing software solutions [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the extraordinary momentum heading into Q4, with a clear mission to deliver AI capabilities that turn promise into performance [7][14] - The company anticipates continued strong demand for its products, particularly in the U.S. commercial sector, with guidance for Q4 revenue between $1.327 billion and $1.331 billion [24][25] - Management highlighted the importance of maintaining internal focus and aligning with customer needs to sustain growth [48][49] Other Important Information - The company closed its highest-ever TCV quarter at $2.8 billion, up 151% year-over-year [4][16] - Customer count grew 45% year-over-year, reaching 911 customers [16][21] - The company repurchased approximately 2.6 million shares as part of its share repurchase program [24] Q&A Session Summary Question: What do you see as Palantir's unique differentiator? - The company builds software that works in the real world, focusing on solving customer problems rather than just selling software [34][35] Question: Can you walk through the accelerated sales cycles observed? - Customers are increasingly approaching the company with a desire to deploy solutions across their entire organization, reflecting a shift in expectations [37][39] Question: What changed from a behavioral perspective among customers? - Customers are recognizing the limitations of other solutions and are eager to adopt Palantir's offerings for tangible results [42][44] Question: How does the company plan to maintain its unique attributes internally? - The company emphasizes the importance of staying close to the problem and ensuring that its products continue to improve [48][49]

Q3 Business Update ©2025 Palanr Technologies Inc. 2025 PLANE Q3 Business Update Rule of 40 - Enterprise Soware Companies with >$1B in TTM Revenue Disclaimer Safe Harbor This presentaon contains "forward-looking" statements within the meaning of the federal securies laws, and these statements involve substanal risks and uncertaines. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding our financial outlook, product develo ...

Financial Data and Key Metrics Changes - Total revenue grew 1% to $57 million, driven by double-digit organic subscription revenue growth, primarily offset by a reduction in security hardware revenue [11][15] - Annual recurring revenue (ARR) increased 10% to $180 million [9][15] - Adjusted EBITDA was $17.5 million, or 31% of revenue, with record adjusted EBITDA of $58 million for the first nine months of the year, representing 32% of revenue [9][12] Business Line Data and Key Metrics Changes - Software business, now over 80% of overall business, delivered double-digit subscription revenue growth and ARR growth [5][9] - Subscription revenue grew 12%, led by 13% growth in security and 11% growth in digital agreements [11][16] - Digital agreements ARR grew 8% to $65 million, with revenue growing 9% to $16.7 million [19] Market Data and Key Metrics Changes - Revenue mix was 46% from the Americas, 38% from EMEA, and 17% from APAC, compared to 39%, 40%, and 21% respectively in the same quarter last year [20] - Strong performance noted in North America and Latin America, while EMEA and APAC experienced declines in hardware revenues [10][21] Company Strategy and Development Direction - Company is focused on enhancing its product portfolio through internal development, acquisitions, and strategic partnerships [8][13] - The acquisition of Knock Knock Labs and investment in ThreatFabric are aimed at improving product offerings and driving future growth [6][12] - Company aims to achieve a Rule of 40 performance level while maintaining strong profitability and cash generation [9][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the hardware business and lower activity in net expansions, particularly in EMEA and APAC [30][32] - The company updated its revenue guidance for 2025 to a range of $239 million to $241 million, reflecting a modest decline from previous expectations [23][24] - Management remains optimistic about future growth driven by software and services, with expectations for continued improvement in subscription revenue [50][51] Other Important Information - The company returned over $20 million to shareholders in the first nine months of 2025 through share repurchases and dividends [12][13] - The strategic focus remains on mobile authentication and the adoption of FIDO2 protocols, with expectations for significant growth in these areas [6][44] Q&A Session Summary Question: What led to the scale back on revenue and ARR guidance? - Management noted higher headwinds in the hardware business and lower activity in net expansions, particularly in EMEA [30][31] Question: Is the decline in hardware demand a long-term trend? - Management confirmed a long-term shift away from hardware tokens towards mobile authentication, with expectations that hardware will not disappear entirely [35][36] Question: How should gross margin be viewed moving forward? - Management expects gross margin to remain similar to last year's Q4, around 73% [38][39] Question: What products are expected to drive growth in the next 12 to 24 months? - Management highlighted the importance of FIDO2 and mobile authentication technologies as key growth areas [44][45] Question: What is the visibility on late-stage deals and pipeline for Q4? - Management expressed confidence in the Q4 ARR guidance, citing improved visibility and a positive sales environment [66][72] Question: Is the revenue and ARR cut related to gross churn or lower new logos? - Management indicated that the cut was primarily due to lower activity in net expansions, with hardware also contributing to the decline [77][79]

Financial Data and Key Metrics Changes - Blackbaud generated revenue of $281 million, representing a 5.2% organic growth year-over-year [4] - Adjusted EBITDA margin improved to 35.4%, up more than 200 basis points year-over-year [4] - Non-GAAP diluted earnings per share increased to $1.10, an 11% rise year-over-year [4] - Free cash flow was particularly strong at $125 million, up from $98 million last year, indicating a 28% growth year-over-year [16] Business Line Data and Key Metrics Changes - The company continues to focus on acquiring new logos, driving innovation, and strengthening customer relationships through additional solutions and renewals [5] - Significant new logo wins include St. Mary's College and Concordia College, with multi-year agreements signed for their fundraising goals [7][8] - The average annual recurring revenue (ARR) from new logo deals is increasing, with a minimum contract length of three years [30] Market Data and Key Metrics Changes - Annual charitable giving in the U.S. is nearing $600 billion, up more than 6% year-over-year, indicating a resilient market for Blackbaud's offerings [5] - Corporate giving has reached an all-time high, becoming the fastest-growing nonprofit revenue source over the last five years [5] Company Strategy and Development Direction - Blackbaud is focusing on mid-single-digit organic revenue growth, EBITDA growth exceeding revenue growth, and double-digit diluted EPS growth [12] - The company is increasing its stock repurchase target from 5% to a range of 5.2% to 7% for 2025, demonstrating confidence in its value [12] - Investments in product innovation, particularly in AI capabilities, are a priority for future growth [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create substantial shareholder value, supported by strong year-to-date performance [12] - The company anticipates continued strong performance in Q4, with a focus on driving adjusted free cash flow and returning capital to shareholders [21] - Management noted that the operational discipline and efficiencies are yielding positive results, contributing to higher profitability [6] Other Important Information - The company identified a prior period non-cash error related to income tax calculations, which resulted in immaterial impacts to previously filed financial statements [19][34] - Blackbaud's guidance for 2025 includes projected revenue in the range of $1,120 million to $1,130 million, with an anticipated EBITDA margin of approximately 35.4% to 36.2% [20] Q&A Session Summary Question: Customer feedback on AI and agentic functionality - Management noted excitement around AI capabilities, with about 40% of customers quickly adopting new features [23][24] Question: New logo wins and contract sizes - New logo wins are showing larger average ARR deals, with contracts typically being a minimum of three years [30] Question: Revenue reclassification and tax restatement - The revenue reclassification was due to an immaterial non-cash error related to income tax calculations, which was corrected as a best practice [32][34] Question: Monetization of agentic AI - Monetization of agentic AI solutions is expected to start modestly next year, with clear ROI anticipated for customers [38][40] Question: Structural drivers for higher growth in transactional revenue - Management indicated strong performance across all transaction platforms, with no viral events impacting growth [47]