Rezolve AI January 2026 Management Update Conference Call Summary Company Overview - **Company**: Rezolve AI - **Industry**: AI-driven commerce technology - **Key Executives**: Dan Wagner (CEO), Arthur Yao (CFO) Core Points and Arguments 2025 Performance and 2026 Guidance - **2025 Achievements**: - Exited 2025 with over 1,000 employees and 650+ enterprise customers - Achieved approximately $209 million in annual recurring revenue (ARR) by year-end - December 2025 revenue exceeded $17 million, validating operating leverage in the business model [6][16] - **2026 Revenue Guidance**: - Analyst consensus for 2026 revenue is approximately $170 million - Rezolve projects at least $350 million in revenue for 2026, representing nearly 10x year-on-year growth [7][15] - Expected to exit 2026 with a minimum $500 million ARR run rate [8][17] Market Leadership and Strategic Focus - **Market Leadership**: Rezolve aims to control the commerce stack globally across AI, data, payments, and distribution, emphasizing leadership over mere participation [5] - **Agentic Commerce**: - Defined as a structural shift in commerce where autonomous AI agents interact with consumers, necessitating governance to prevent mis-selling and brand damage [9][10] - Rezolve's platform governs these interactions, ensuring compliance and brand integrity [10] Platform Convergence - **Integrated Platform**: - Combines AI, data, and payments into a single platform, enhancing the commerce journey from intent to payment [11][12] - Subsquid acquisition provides a distributed data infrastructure that enhances performance and scalability [23] Growth Channels - **Sales Expansion**: - Plans to hire 40-60 enterprise sales professionals in North America and 20-40 in Europe by Q2 2026 [12][13] - Focus on organic sales, partnership-led distribution, and M&A as growth accelerators [14][17] - **Partnerships**: - Collaborating with major partners like Microsoft and Google to enhance distribution [14] Financial Position - **2025 Financial Momentum**: - Achieved positive Adjusted EBITDA in December 2025, demonstrating operational efficiency [16] - Strengthened balance sheet by eliminating toxic debt and raising $250 million in financing [16] - **Profitability Strategy**: - Management has the option to prioritize profitability but is focused on growth and market leadership [25][41] Additional Important Insights - **Customer Behavior**: - Notable shift in enterprise behavior with faster pilot-to-production transitions and expanded deployments across channels [8] - **Upsell Opportunities**: - Existing customers show significant potential for upselling additional capabilities, enhancing overall revenue [29][37] - **Crypto Payments**: - Rezolve processed $1 billion in crypto transactions in the past year, with plans to expand this offering into Western markets [42] Conclusion - Rezolve AI is positioned for significant growth in 2026, with a strong focus on market leadership through innovative technology and strategic partnerships. The company is set to leverage its integrated platform and expanding sales force to achieve ambitious revenue targets while maintaining operational efficiency.

Core Insights - Rezolve Ai anticipates significant revenue growth, projecting at least $40 million for 2025 and approximately $350 million for 2026, which is nearly double market expectations of $170 million, indicating nearly 10× year-on-year growth [2][3] Revenue Guidance - For 2025, the company expects to exceed $40 million in revenue, surpassing current analyst consensus [2] - For 2026, the revenue guidance is set at approximately $350 million, indicating a substantial increase from the previous year [2] Annual Recurring Revenue (ARR) - Rezolve aims to exit 2026 with a minimum of $500 million in annual recurring revenue (ARR), translating to about $40 million in monthly revenue by December 2026 [3] Operating Performance - The company ended 2025 with approximately $209 million in ARR, achieving a record revenue of over $17 million in December, marking its first profitable month [4] - In 2025, Rezolve processed more than 51 billion API calls and reached over 340 million unique users globally, demonstrating its operational scale [4] Customer Base and Institutional Confidence - Rezolve's clientele includes major global brands such as Adidas, Gucci, and H&M, reflecting strong enterprise adoption [5] - The company secured significant repeat institutional investments, including a $50 million strategic investment and an additional $200 million commitment, indicating strong confidence in its execution and scalability [6] Strategic Partnerships - Throughout 2025, Rezolve strengthened partnerships with Microsoft and Google, focusing on integrating AI-driven commerce with next-generation payment infrastructure [7] Leadership Commentary - The CEO of Rezolve emphasized that 2025 marked a turning point for enterprise AI-driven commerce, highlighting the company's focus on execution and operational leverage as it moves into 2026 [8] Company Overview - Rezolve Ai is recognized as a leader in AI-powered solutions, specializing in enhancing customer engagement and operational efficiency [9] - The company operates with over 1,000 employees and has more than 650 enterprise customers across 24 global offices [10]

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the Internet sector in North America, focusing on key debates and investment opportunities for 2026, including advancements in LLM (Large Language Models), GenAI (Generative AI), hyperscaler growth, autonomous driving, and the impact of AI on various industries [1][2]. Core Themes and Arguments 1. **Thematic Debates for 2026**: - Key debates shaping the sector include LLM advances, GenAI productization, hyperscaler growth, the future of search, autonomous driving, and robotics [1][2]. - The market is expected to reward companies demonstrating positive ROIC (Return on Invested Capital) from GenAI or GPU-enabled technologies, while sectors facing disruption, such as rideshare and e-commerce, may trade at lower multiples [2]. 2. **Hyperscaler Growth**: - There is a bullish outlook on hyperscaler growth in 2026, particularly for AWS, GCP, and Azure, driven by increased AI tech adoption and diffusion across the economy [2]. 3. **Investment Opportunities**: - Key picks for 2026 include AMZN (Amazon), META (Meta Platforms), DASH (DoorDash), EBAY (eBay), and RBLX (Roblox) [1][2]. Company-Specific Insights 1. **Amazon (AMZN)**: - Target Price: $315, implying ~27% upside. - Expected to leverage both AWS and Retail to drive GenAI adoption, with a projected durable growth rate of over 20% for AWS in 2026 [3]. - Investments in AI-driven shopping assistants and logistics are expected to enhance retail growth and profitability [3]. 2. **Meta Platforms (META)**: - Target Price: $750, with ~15% upside. - Anticipated improvements in core engagement and monetization, with a focus on productizing new LLMs to drive revenue growth [7]. 3. **DoorDash (DASH)**: - Target Price: $300, indicating ~39% upside. - Investments in a unified tech infrastructure and autonomous delivery are expected to enhance ROIC and overall business performance [9]. 4. **eBay (EBAY)**: - Target Price: $112, suggesting a 23% upside. - Market skepticism about sustainability and profitability of growth is noted, but durable tailwinds in collectibles and new initiatives are expected to drive GMV growth [13]. 5. **Roblox (RBLX)**: - Target Price: $155, with ~100% upside. - Strong user-generated content platform performance is expected to drive bookings and engagement growth, despite short-term risks [14]. Additional Important Insights - **GenAI and AI Adoption**: - The call emphasizes the importance of demonstrating ROI from AI investments, particularly as companies face rising model training costs [40][41]. - The anticipated rollout of new AI models and tools is expected to enhance product monetization and engagement across platforms [49]. - **Agentic Commerce**: - The rise of agentic offerings is expected to impact e-commerce significantly, with personalized shopping experiences likely to drive consumer spending [67][69]. - **Autonomous Driving**: - 2026 is projected to be an inflection year for autonomous driving, with significant advancements expected in service availability and technology [78][90]. - **Physical AI**: - Companies are increasingly focusing on real-world data capture and physical AI, with Amazon's robotics-enabled warehouses expected to have a substantial impact on efficiency and cost savings [98][100]. This summary encapsulates the key discussions and insights from the conference call, highlighting the strategic outlook for the Internet sector and specific companies within it for 2026.

Key Takeaways from the Conference Call Industry Overview - The conference call covered various companies within the North American Internet sector, specifically focusing on web builders, digital advertising, eCommerce, EdTech, and online dating. Company-Specific Insights GoDaddy (GDDY) - Management is positive about GoDaddy's vibe coding strategy, focusing on current customers and web building, with cost guardrails in place [5] - The ANS marketplace was launched, but significant financial contributions are not expected until 2026 [5] - Growth drivers for A&C bookings in 2026 include Airo, P&B strategy, and seamless commerce experiences [5] - Airo is improving average order value (AOV) and retention metrics, with a focus on high lifetime value (LTV) customers [5] Wix (WIX) - Management expects approximately 25% free cash flow (FCF) margins in 2026, despite anticipated margin compression [7] - Gross margins are improving, but variability exists due to free users abandoning projects [7] - Wix is testing a new self-creator platform with more GenAI features, but price increases in 2026 are less likely [7] - Core Wix performance remains strong, but growth acceleration may be challenging [7] The Trade Desk (TTD) - Recent layoffs affected only 1% of headcount, aligning with product and engineering initiatives [8] - No expected impact from OMC and IPG consolidation; strong relationships with both companies [8] - Kokai adoption reached 85% in November, with expectations to reach 100% soon [8] Criteo (CRTO) - Management sees agentic commerce as a significant opportunity, leveraging commerce data for better ad spend efficiency [8] - Retail Media core is performing well, with good traction in auction-based display products [8] Zeta (ZETA) - OneZeta is a key growth factor for 2026, part of the Marigold acquisition strategy [9] - Athena is on track for general availability in 1Q, but management is cautious about setting high expectations [9] IAC (IAC) - Core assets are People and MGM, with management believing both are undervalued [9] - The M&A strategy will focus on digital publishing and content sites [9] eBay (EBAY) - Guidance indicates healthy US consumer spending but weak trends in Europe [10] - eBay's holiday window extends into 1Q, with a focus on collectibles [10] - Management expects to buy back 90-100% of normalized FCF in 2026 [10] Wayfair (W) - Management reiterated 4Q guidance, noting slight deterioration in industry volume levels [11] - Success in initiatives like loyalty programs and influencer marketing is driving share gains [11] - AI initiatives are expected to roll out in 2026, enhancing user experience [11] Duolingo (DUOL) - Focus remains on user growth trends, with certain features moved back in front of the paywall [12] - Management is experimenting with GenAI features to drive user engagement [14] Match Group (MTCH) - Product testing at Tinder is ongoing, with a focus on product outcomes over near-term monetization [15] - Face Check has been rolled out in the US, with revenue impact being optimized [15] Bumble (BMBL) - Management expects a peak in declines in 4Q, with initiatives aimed at improving user experience [15] - A new AI app is being tested to enhance onboarding and matching processes [15] Additional Insights - The overall sentiment across the companies indicates a cautious optimism, with many focusing on strategic initiatives to drive growth while managing costs and market challenges [5][7][8][9][10][11][12][14][15]

Core Insights - Wayfair is collaborating with Google on the Universal Commerce Protocol (UCP) to enhance the shopping experience by allowing customers to check out directly from Wayfair while using Google [1][2] - The new checkout experience will be available on eligible Google product listings in AI Mode and the Gemini app, with Wayfair acting as the merchant of record to ensure consistent pricing and customer support [2][5] - Wayfair is also working with other retailers to establish standards for AI-driven shopping experiences, aiming to connect customers with trusted merchants [3][5] Company Strategy - Wayfair is investing in AI-powered discovery across various platforms, including its own app and external AI platforms, to enhance customer engagement [4] - The company views the Universal Commerce Protocol as a foundational element for a new shopping ecosystem, facilitating a seamless transition from product discovery to checkout [4] - Wayfair's initiatives include consumer-facing AI tools like Decorify and Muse, which help customers visualize home design, and a new Discover tab in its app featuring AI-curated content [4] Industry Collaboration - The UCP was developed in collaboration with major retailers including Shopify, Etsy, Target, and Walmart, indicating a collective effort to standardize agentic commerce [5]

Core Insights - PayPal Holdings (PYPL) has formed a strategic partnership with Microsoft to implement Copilot Checkout, allowing users to discover, decide, and pay within the Copilot interface [1][9] - This integration enhances AI-driven shopping by merging Microsoft's discovery tools with PayPal's commerce and payment features, providing a seamless customer experience [2] - PayPal's agentic commerce services enable merchants to convert product catalogs into purchasable items through features like store sync [2][9] Group 1: Partnerships and Integrations - PayPal has partnered with Logicbroker, enabling thousands of merchants to activate PayPal's agentic commerce services, including store sync [4] - Collaborations with OpenAI and Perplexity allow for seamless payments and agentic commerce experiences within platforms like ChatGPT and Perplexity Pro [4] - PayPal's ecosystem includes partnerships with Wix, Cymbio, Commerce (BigCommerce and Feedonomics), and Shopware, facilitating AI-driven discovery and checkout [5] Group 2: Market Position and Performance - PayPal shares have declined by 22% over the past six months, underperforming the broader industry and the S&P 500 Index [8] - The stock is currently trading at a forward 12-month P/E of 9.80X, significantly lower than the Zacks Financial Transaction Services industry's average of 20.95X, indicating a cheap valuation [11] - Despite a negative trend in estimate revisions, the Zacks Consensus Estimate for full-year 2026 EPS suggests a year-over-year growth of 9.7% [12]

Core Insights - FIS has launched its first offering to enable agentic commerce following the acquisition of its FIS Total Issuing Solutions portfolio [1] - The new agentic commerce offering allows banks to conduct commerce securely with AI agents and card networks [1] Company Developments - The acquisition of the FIS Total Issuing Solutions portfolio has been successfully completed [1] - The agentic commerce transactions utilize AI as a personal digital assistant [1]

Core Insights - Walmart has launched a new consumer experience within Google's AI chatbot Gemini, enhancing its AI initiatives with external partners [1][2] - The integration allows Gemini users to discover Walmart and Sam's Club products, facilitating transactions within Walmart's checkout environment [2] - The initiative will first be available in the U.S. before expanding internationally [2] Group 1: Leadership and Strategic Direction - Incoming Walmart CEO John Furner discussed the development alongside Google CEO Sundar Pichai at The National Retail Federation's 2026 Big Show [3] - Pichai announced a new suite of AI tools for retailers through Gemini, including the Universal Commerce Protocol for agentic commerce [3][4] - Furner emphasized the company's willingness to adapt its operations and customer interactions in response to AI advancements [5][6] Group 2: Industry Context and Evolution - Google has reported a significant year-over-year increase in AI usage among retailers, indicating a broader trend in the industry [4] - Furner reflected on the evolution of retail, noting that the industry is currently in a transformative period requiring a rewrite of the retail playbook [6]

Core Insights - Google aims to establish the Universal Commerce Protocol (UCP) as an industry standard for AI tools in retail, facilitating a unified shopping experience from discovery to payment [1][6] - The e-commerce sector is becoming a competitive arena for generative AI, with Google competing against OpenAI, Perplexity, and Amazon for consumer engagement [2] Group 1: Universal Commerce Protocol (UCP) - UCP is designed to allow retailers to utilize AI agents and systems without the need to develop their own tools, promoting efficiency and integration across various functions [1][6] - The protocol was co-developed with major companies like Shopify, Etsy, Wayfair, and Target, and will support a new checkout feature in Google's AI Mode or Gemini App [6] Group 2: Competitive Landscape - OpenAI has introduced Instant Checkout, enabling purchases through ChatGPT, which may compete with UCP [3] - Perplexity is collaborating with PayPal to facilitate direct purchases within its chat platform, indicating a trend towards integrated shopping experiences [4] - Amazon's "Shop Direct" feature allows consumers to browse and purchase items from other brands directly on its platform, showcasing its competitive strategy [5] Group 3: Consumer Engagement and Advertising - Google has launched a feature called Business Agent, enabling shoppers to interact with brands in a conversational manner, reflecting a shift towards conversational commerce [7] - The company is testing "Direct Offers," allowing retailers to provide unique discounts based on user intent, enhancing the advertising ecosystem [8]

Core Insights - Walmart and Google are collaborating to integrate Google's AI assistant Gemini into Walmart's shopping experience, enhancing product discovery and purchasing for customers [1][2] - The partnership was announced at the National Retail Federation's Big Show, with plans for the feature to launch first in the U.S. before expanding internationally [2] - This collaboration is part of Walmart's broader strategy to adapt to changing consumer behaviors, particularly the increasing use of AI chatbots for shopping [3][4] Group 1: Partnership Details - The collaboration aims to create a seamless shopping experience that is more intuitive and personalized for customers [4] - Walmart previously partnered with OpenAI's ChatGPT to implement an "Instant Checkout" feature, allowing purchases directly through the AI chatbot [3] - Walmart's own AI chatbot, Sparky, is also part of its digital strategy to enhance customer engagement [4] Group 2: Strategic Implications - The shift towards AI-driven commerce is seen as a significant evolution in retail, with Walmart positioning itself as a leader in this transition [4] - Walmart's digital strategy is evolving to meet customers earlier in their shopping journey, leveraging AI to enhance product discovery [4] - The impact of AI on the workforce is a concern for Walmart, as it is the largest private employer in the U.S., with leadership acknowledging that AI will transform job roles across the company [5]