Financial Data and Key Metrics Changes - For the full year 2025, the company achieved bookings growth of 7% and expanded Normalized EBITDA margin to 32%, reflecting strong operational execution and improved structural leverage [5][22] - Total revenue for Q4 grew 7% to $1.3 billion, with international revenue increasing by 10% to $420 million [17][19] - Free cash flow grew 8% to $370 million in Q4 and 19% to $1.6 billion for the full year [22][19] Business Line Data and Key Metrics Changes - Applications and Commerce segment revenue grew 13% to $498 million, with segment EBITDA margin improving by 40 basis points to 47% [17] - Core Platform segment revenue increased by 3% to $776 million, driven by an 8% growth in aftermarket and 5% growth in primary domains [18] - ANC ARR grew 12%, while Core Platform bookings grew 1% [18][20] Market Data and Key Metrics Changes - International revenue for the full year grew 11% to $1.6 billion, indicating strong global demand [19] - The cumulative annual spend from Airo cohorts has grown in the high teens, with a 30% acceleration in the velocity of second product attach relative to non-Airo cohorts [21] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance customer experiences and operational efficiencies, with Airo evolving into an agentic operating system for small businesses [6][7] - The strategy includes expanding the go-to-market approach to attract high-intent customers and optimizing the customer journey through AI-driven solutions [15][12] - The introduction of Agent Name Service (ANS) aims to enhance digital identity and trust in automated environments, positioning the company at the center of the agentic economy [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to rapid technological changes and emphasized the importance of AI in reshaping business operations [6][15] - The company anticipates continued growth in bookings and revenue, despite short-term impacts from changes in go-to-market strategy and contract terms [24][27] - Management highlighted the strong customer engagement metrics and the potential for long-term value creation through improved customer retention and attach rates [21][27] Other Important Information - The company exited the year with $1.1 billion in cash and total liquidity of $2.1 billion, maintaining a net leverage of 1.6x [22] - The new one-year domain offer successfully increased new customer volume, although it initially reduced upfront bookings and near-term revenue [13][24] Q&A Session Summary Question: Can you elaborate on the promotional offer with .com and its impact on bookings? - Management explained that the go-to-market evolution aims to attract more high-intent customers and optimize conversion rates, with positive results observed in February [33][34] Question: How are AI costs being managed and their impact on margins? - Management stated that they are disciplined in managing AI costs and have visibility into maintaining margins while investing in AI [37][40] Question: What is the outlook for active customer growth in 2026? - Management indicated that they expect to see sequential growth in active customers and believe the new go-to-market approach will serve as a tailwind [77][78] Question: How does the new go-to-market strategy address competitive dynamics? - Management noted that the strategy focuses on attracting high-intent customers and leveraging existing strengths to defend against competition [101][102]