Financial Data and Key Metrics Changes - Q4 revenue reached $35 million, representing an increase of over 100% year-over-year, achieving the top-end of the revenue guidance range for the full year [7][39] - Full year revenue grew by 85%, totaling $85 million [39] - Cumulative subscriptions and bookings backlog was nearly $1.2 billion, up over 75% year-over-year [44] - GAAP gross margin was 40%, down year-over-year, while non-GAAP gross margin was 52% [54] - Non-GAAP net loss was $19 million, with a non-GAAP net loss per share of $0.05 [66] Business Line Data and Key Metrics Changes - In automotive, there was continued double-digit unit price expansion, although unit growth was hampered by macro pressures [51] - The restaurant sector saw significant growth, with new logos such as Burger King and expansions with existing customers [17][52] - Healthcare had strong performance with notable wins including Duke Health and Englewood Health [16] - The energy sector was added to the portfolio with a new high seven-figure deal [41][106] Market Data and Key Metrics Changes - The company works with 30% of the top quick-service restaurants and 70% of the top financial institutions globally [40] - Customer concentration improved, with the largest customer representing slightly more than 14% of revenue in 2024, down from nearly half in 2023 [42][53] Company Strategy and Development Direction - The company has introduced a three-pillar business strategy, focusing on voice AI, AI customer service, and voice commerce [11][37] - The strategy aims to create a flywheel effect, increasing momentum as more OEMs and businesses adopt the voice assistant and AI customer service [15] - The company is positioned to capitalize on the growing voice AI market, with a strong pipeline and ongoing innovation [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting revenue for 2025 to be between $157 million and $177 million [69] - The company aims to achieve adjusted EBITDA profitability by the end of 2025, driven by scale and high ROI investments [71] - The management highlighted the importance of the Agentic AI revolution and its potential impact on the company's offerings [25][73] Other Important Information - The company showcased its technologies at CES, receiving significant interest from industry leaders [26][27] - The company has a strong balance sheet with $198 million in cash and equivalents at year-end, having paid down all outstanding debt [67] Q&A Session Summary Question: Recent breakthroughs in AI model efficiency - Management confirmed that advances in AI technology allow for improved accuracy and reduced costs, with the potential to leverage open-source models [76][78] Question: Details on backlog duration and verticals - The backlog duration is slightly over six years, with balanced growth across automotive, restaurant, healthcare, and energy sectors [81][82] Question: Time to revenue for POCs - Management indicated that POCs can be executed quickly, especially in automotive, with revenue generation tied to unit shipments [92][94] Question: Economic impact of the new energy deal - The energy deal is a multi-year contract with accelerated cash collection, indicating strong economic benefits [103][104] Question: Prioritization of secondary verticals - The company prioritizes verticals based on customer benefits and market opportunities, focusing on high ROI investments [123][130] Question: Cross-selling and upselling momentum - Management noted ongoing opportunities for cross-selling and upselling, with a focus on capturing customer opportunities quickly [135][140]

Core Insights - LexisNexis and OpenAI are collaborating to deploy legal-specific AI solutions, enhancing productivity and quality for legal and business professionals [1][2] - The partnership will leverage OpenAI's latest models and develop fine-tuned models for sophisticated legal workflows, focusing on generative AI technology [2][3] - LexisNexis aims to deliver high-quality, personalized AI innovations to accelerate outcomes for its customers [3][4] Company Overview - LexisNexis is a leading global provider of AI-powered analytics and decision tools, serving customers in over 150 countries with a workforce of 11,800 employees [8][9] - The company integrates various AI technologies, including extractive, generative, and agentic AI, within a scalable, multi-cloud infrastructure [5][7] - LexisNexis employs over 2,000 technologists and data scientists to develop and validate AI solutions, adhering to RELX Responsible AI Principles [7]

Financial Data and Key Metrics Changes - Total revenue for Q3 increased 26% year-over-year to $98.8 million, with subscription revenue growing 22% to $85.7 million, representing 87% of total revenue [16][34] - Non-GAAP gross profit was $68.2 million, resulting in a gross margin of 69% [16][37] - Non-GAAP operating loss improved to $23.1 million, better than the guidance of $38.6 million to $46.6 million [17][38] - Free cash flow for Q3 was negative $22.4 million, an improvement from negative $45.1 million in the same quarter last year [40] Business Line Data and Key Metrics Changes - Revenue from software licenses was $28.6 million, while professional services revenue was $13.1 million, accounting for 13% of total revenue [34][36] - Subscription and professional engineering services revenue combined was $91.4 million, representing 93% of total revenue, an increase of 18% compared to the previous year [37] Market Data and Key Metrics Changes - The partnership with Microsoft resulted in closing 28 agreements across nine different industries, marking a 460% increase quarter-over-quarter [18][22] - The joint qualified sales pipeline with Microsoft surged 244% year-over-year, targeting 621 eligible customer opportunities [19] Company Strategy and Development Direction - The company is focusing on expanding its strategic alliances with Microsoft, AWS, and McKinsey QuantumBlack to enhance global reach and execution speed [20][29] - The emphasis on Generative AI and Agentic AI is expected to drive innovation and customer traction, with plans to ensure proper organization for expanding direct sales and services [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing enterprise AI market, with fiscal years 2026 and 2027 expected to focus on expanded growth and market share [31][32] - The company anticipates continued moderation in gross margins due to a higher mix of pilots in the near term, but expects to be free cash flow positive for Q4 [43][44] Other Important Information - The company closed 50 pilots during Q3, with 245 still active, indicating strong customer engagement [42] - The company ended the quarter with $724.3 million in cash, cash equivalents, and marketable securities, indicating strong capitalization [40] Q&A Session Summary Question: Can you provide more color on the total number of pitches and pipeline? - Management indicated involvement in over 600 engagements with Microsoft, with 28 agreements closed in the last quarter [49][56] Question: Can you discuss remaining performance obligations trends? - Management noted that the total remaining performance obligations (RPO) at the end of the quarter was around $208 million, with expectations of some decline in RPO in the near term [62] Question: What drove the outperformance in professional services this quarter? - The outperformance was attributed to an uptick in revenue from consulting services, paid implementation services, and training services [78] Question: Why are demonstration licenses outperforming? - The increase in demonstration licenses was driven by the need to equip sales teams with effective tools to engage customers independently, resulting in higher revenue recognition [84][85]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $1.46 billion, down 4% year-over-year, and non-GAAP EPS of $3.03, down 10% due to one less work week compared to Q1 '24 [6][32] - Non-GAAP operating margin was 36.5%, with total GAAP costs and expenses at $1.2 billion [32] - For fiscal year 2025, the revenue guidance is set between $6.745 billion and $6.05 billion, with non-GAAP EPS guidance of $14.88 to $14.96 per share [33][36] Business Line Data and Key Metrics Changes - Design Automation revenue increased by 4% year-over-year, despite one less week of revenue [11] - The company launched new HAPS 200 prototyping systems and ZeBu 200 emulation systems, enhancing performance significantly [12] - Design IP revenue decreased by 17% year-over-year, but opportunities are expanding due to AI customer needs [23] Market Data and Key Metrics Changes - AI and HPC markets remained robust, while industrial, automotive, and consumer electronics faced challenges [7] - China sales showed a deceleration trend, with expectations of continued decline below corporate average due to restrictions and economic slowdown [50][76] Company Strategy and Development Direction - The company is focused on AI-driven design solutions and is progressing with the acquisition of ANSYS to enhance its offerings [9] - The strategy emphasizes addressing design complexity and energy demands through innovative solutions [8] - The company aims to leverage AI capabilities to transform engineering workflows and improve productivity [18][108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilient business model and strong momentum driven by AI growth [29] - The outlook for semiconductor R&D investment is positive, expected to grow from 6% to 9% of sales per year [41] - Management acknowledged challenges in the consumer electronics and automotive sectors but noted a recent acceleration in design activity [44][58] Other Important Information - The backlog exiting Q1 was reported at $7.7 billion [67] - Cash flow from operations was approximately $1.8 billion, with free cash flow around $1.6 billion [34] Q&A Session Summary Question: Growth trends in AI and non-AI segments - Management noted a bifurcation in the semiconductor market, with strong demand in AI and HPC, while consumer electronics and automotive are slower [39][41] Question: Sales performance in China - Management indicated that sales in China are expected to continue decelerating due to restrictions and economic factors [50][76] Question: Design activity for non-AI customers - Management observed a stabilization in design activity for non-AI customers, particularly in mobile and PC sectors [58] Question: Cost control and guidance for next quarter - Management highlighted that Q1 costs were lower than anticipated due to timing, but Q2 typically sees a step-up due to merit increases [112][115] Question: Backlog composition and customer engagement - Management confirmed no significant change in customer behavior regarding backlog duration, maintaining consistent contract durations [81][82]

Financial Data and Key Metrics Changes - Total revenue for Q3 increased 26% year-over-year to $98.8 million, with subscription revenue growing by 22% to $85.7 million, representing 87% of total revenue [15][33] - Non-GAAP gross profit was $68.2 million, resulting in a gross margin of 69% [15][36] - Non-GAAP operating loss improved to $23.1 million, better than the guidance of $38.6 million to $46.6 million [16][37] - Free cash flow for Q3 was negative $22.4 million, an improvement from negative $45.1 million in the same quarter last year [39] Business Line Data and Key Metrics Changes - Revenue from software licenses was $28.6 million, while professional services revenue was $13.1 million, accounting for 13% of total revenue [33][35] - Subscription and professional engineering services revenue combined was $91.4 million, representing an 18% increase compared to the previous year [36] Market Data and Key Metrics Changes - The partnership with Microsoft resulted in 28 closed agreements across nine different industries, marking a 460% increase quarter-over-quarter [17][21] - The joint qualified sales pipeline with Microsoft surged by 244% year-over-year, targeting 621 accounts recognized as eligible customer opportunities [18] Company Strategy and Development Direction - The company is focusing on expanding its strategic alliances with Microsoft, AWS, and McKinsey QuantumBlack to enhance global reach and execution speed [19][20] - The emphasis on Generative AI and Agentic AI is expected to drive innovation and customer traction, with a goal of increasing market share in fiscal years 2026 and 2027 [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing enterprise AI market, highlighting the importance of their partner ecosystem [30][31] - The company anticipates continued investments in sales, partner ecosystem, and research and development, expecting to be free cash flow positive in Q4 [42][43] Other Important Information - The company closed 50 pilots during Q3, with 310 pilots cumulatively signed, of which 245 are still active [41] - The total accounts receivable balance at the end of Q3 was $180.4 million, with a strong health of accounts receivables [40] Q&A Session Summary Question: Can you give more color on the total number of pitches and pipeline? - The company is currently involved in over 600 engagements with Microsoft, with 28 agreements closed in the last quarter [48][55] Question: Can you discuss the trends in remaining performance obligations? - The total remaining performance obligations (RPO) at the end of the quarter was around $208 million, with expectations of some decline in RPO in the near term [61] Question: What drove the outperformance in professional services this quarter? - The uptick in professional services revenue was driven by increased revenue from consulting services, paid implementation services, and training services [78] Question: Why are demonstration licenses outperforming this year? - The increase in demonstration licenses is attributed to the need for sales teams to have effective tools to engage customers, leading to a significant rise in interest from large organizations [82][84]