We believe in the AI revolution at Sequoa and we think that this is going to be a transformation that is as big if not bigger than the industrial revolution. In this short presentation, we're going to share what this cognitive revolution is all about and why it offers a 10 to the 13th $10 trillion opportunity. We have four sections.The first is our thesis around artificial intelligence. The next is the commercial opportunity. Then we'll get into some investment trends.These are what we see going on right no ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $174 million, a 7% year-over-year increase, normalized for 2024 cyclical political campaign revenue of $8 million [20] - Cloud communications revenue reached $133 million, reflecting a 6% year-over-year increase, also normalized for 2024 political campaign revenue [20] - Non-GAAP gross profit increased to $79 million, marking an 8% year-over-year growth, with a non-GAAP gross margin improvement to 59%, a two percentage point increase [21] - EBITDA grew by 40% to $22 million, exceeding expectations due to higher revenue and stronger margins [21] - Free cash flow performance was as expected, influenced by capital expenditures and working capital timing [21] Business Line Data and Key Metrics Changes - Enterprise Voice revenue grew 26% year-over-year, driven by strong demand from financial services and healthcare customers [22] - Global Voice Plans revenue increased by 4% year-over-year, supported by long-term customer expansions and new business from channel partnerships [22] - Programmable messaging accounted for 19% of cloud communications revenue, with a 9% year-over-year increase, driven by demand in key verticals including e-commerce and financial services [22] Market Data and Key Metrics Changes - The net retention rate for Q1 was 116%, with customer name retention above 99% [22] - Average annual revenue per customer reached a record $228,000, or $211,000 when excluding the political campaign benefit in 2024 [22] Company Strategy and Development Direction - The company is focused on disciplined execution, innovation, and delivering essential communications, with a strong emphasis on the Maestro platform for enterprise voice and AI integration [6][10] - The strategy includes expanding partnerships with managed service providers (MSPs) and system integrators to enhance market reach and customer engagement [11][31] - The company aims for double-digit core platform growth, profit expansion, and strengthening its capital structure in 2025 [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic volatility, raising the full-year revenue outlook to $745 million to $760 million [20][25] - The company anticipates continued growth in enterprise voice and global voice plans, with a focus on maintaining strong customer relationships and expanding service offerings [34][36] - Management acknowledged potential risks in programmable messaging due to its exposure to retail and digital engagement markets, but emphasized the essential nature of voice communications [36] Other Important Information - The company received two Gold Stevie Awards for innovation in customer service and customer engagement initiatives, reflecting its commitment to customer satisfaction [17] - The company ended the quarter with a cash and securities balance of $42 million and no borrowings under its credit line [23] Q&A Session Summary Question: Insights on enterprise voice growth and pipeline - Management reported a strong pipeline for enterprise voice customers, with more million-dollar deals signed than ever before, indicating robust growth potential [30] Question: Confidence in back half of the year amidst market uncertainty - Management raised the second half outlook, expecting double-digit organic growth driven by enterprise voice and global voice plans, while monitoring risks in programmable messaging [34][36] Question: Drivers behind increased average revenue per customer - The increase is attributed to more enterprise voice customers utilizing the Maestro platform and expanding their business, along with cross-selling opportunities [39] Question: Durability of gross margin performance - Management expects margins to remain stable throughout the year, with confidence in achieving medium-term targets [41] Question: Future of the partner ecosystem and its contribution - Management highlighted the growing importance of partnerships with MSPs and the potential for increased sales through these channels [45][49] Question: Strategies to regain share in the messaging business - The focus will be on driving deliverability and expanding channels, including RCS and RBM, to enhance customer engagement and grow the messaging business [51][54] Question: Success factors in the healthcare vertical - The Maestro platform's ability to integrate innovation into complex healthcare environments is a key differentiator, with opportunities for expansion into other verticals like hospitality and manufacturing [58][60] Question: Key drivers for Global Voice business growth - Management expects Global Voice plans to double its growth rate, driven by onboarding new customers and leveraging channel partnerships [63]