Financial Data and Key Metrics Changes - For the full year 2025, revenue grew 18% to $751.5 million, with recurring revenue increasing by 20% driven by a 22% year-over-year growth in fulfillment [5][11] - In Q4 2025, revenue was $192.7 million, a 13% increase over Q4 of the previous year, marking the 100th consecutive quarter of revenue growth [11] - Adjusted EBITDA for the year grew 24% to $231.4 million, with Q4 adjusted EBITDA increasing 22% to $60.5 million [11][12] Business Line Data and Key Metrics Changes - The total number of recurring revenue customers was approximately 54,600, with the number of 1P customers flat sequentially and a decline of 350 in 3P customers [11] - Average Revenue Per User (ARPU) for the year increased to approximately $14,350 [11] Market Data and Key Metrics Changes - The company faced challenges in the macroeconomic environment, including tariff-related uncertainties that led to spend scrutiny and delayed purchase decisions [5][11] - Revenue recovery represents a $750 million addressable market across 1P US sellers, providing significant cross-selling opportunities within the network [6] Company Strategy and Development Direction - The company aims to leverage AI capabilities through its new agentic features, enhancing its product portfolio and competitive positioning [10][19] - The strategic focus is on increasing customer count and refining go-to-market strategies, particularly through retail enablement programs [32][33] - The company expects to achieve at least high single-digit revenue growth without acquisitions beyond 2026 [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds affecting customer spending and revenue recovery dynamics, with expectations of improvement in the second half of 2026 [73][64] - The company anticipates a 2% annual increase in Adjusted EBITDA margin, supported by gross margin expansion and efficient capital deployment [20][68] Other Important Information - The CFO, Kim Nelson, announced her retirement after nearly 20 years with the company, with Joseph Del Preto set to assume the role [17][18] - The board approved an increase of $200 million in the share repurchase program, totaling $300 million [12][13] Q&A Session Summary Question: Challenges in Q4 and Impact on Expectations - Management noted that Q4 revenue came in at the lower end of guidance due to existing customer headwinds, including invoice scrutiny and uncertainty [24] Question: Monetization of New AI Solutions - The new Max agentic AI solutions are expected to enhance product offerings and competitive positioning, with monetization strategies to be developed as customer usage is monitored [26][27] Question: Growth Strategies and Investments - The company plans to invest in retail enablement programs and enhance marketing capabilities to attract new customers and drive growth [32][33] Question: Customer Count Dynamics - The flat 1P customer count was attributed to the timing of relationship management programs, with expectations for growth to return in the latter half of 2026 [86] Question: General and Administrative Expenses - G&A expenses increased due to investments in backend tools and technology, with a goal to maintain G&A growth at 10%-15% over time [87]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $276 million, up 3% year-over-year, and up 7% when excluding license and maintenance revenue [23] - Cloud revenue increased by 21% to $105 million, slightly better than expected [23] - Services revenue declined by 3% to $133 million, with a shift of approximately $2 million of service revenue from Q4 to Q3 [23][24] - Adjusted operating profit was $103 million, with an adjusted operating margin of 37.5%, up about 40 basis points year-over-year [26] - Adjusted earnings per share (EPS) for Q3 was $1.36, up 1%, while GAAP EPS was $0.96, down 7% [27] - Operating cash flow increased by 49% to $93 million, resulting in a 32% free cash flow margin [28] Business Line Data and Key Metrics Changes - RPO (Remaining Performance Obligations) increased by 23% year-over-year to $2.1 billion [24] - Win rates remained strong at 70%, with new logos representing approximately 35% of the pipeline [6][7] - The company experienced a meaningful sequential uptick in conversions and a growing pipeline of future conversion opportunities [5] Market Data and Key Metrics Changes - The company noted a diverse end market presence, including sectors such as retail, grocery, food distribution, life sciences, and technology [7] - The global macro environment remains volatile, impacting performance but not significantly altering demand [22] Company Strategy and Development Direction - The company is focused on strategic investments to drive new customer acquisition, cross-selling, and converting on-premise customers to the cloud [35] - The introduction of a dedicated renewal team and a conversion program aims to enhance customer engagement and accelerate cloud adoption [11][12] - The company plans to leverage AI capabilities through agentic.ai to enhance operational efficiency and customer productivity [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term opportunities, citing strong business fundamentals and a solid pipeline [6] - The company expects to achieve the high end of its RPO outlook for 2025 despite ongoing macro uncertainties [24][31] - For 2026, the company anticipates 20% cloud revenue growth and a return to growth in services [33] Other Important Information - The company announced the appointment of Greg Betts as Chief Operating Officer, who will focus on scaling operational frameworks and enhancing partner models [12] - The company is investing in its sales and marketing teams to support growth initiatives [10] Q&A Session Summary Question: Can you share more on RPO levels and visibility for 2026? - Management noted a 23% increase in RPO year-over-year and highlighted a major renewal cycle coming up, which provides optimism for future RPO levels [38] Question: What are the strategies for converting on-premise customers to cloud? - The company is taking a more proactive approach to conversions, offering fixed fee and timeline conversions to active warehouse, which has seen early success [44] Question: How is the fourth quarter looking compared to last year? - Management indicated a strong start to Q4, with expectations of a performance similar to the previous year [50] Question: What is the impact of AgenTik AI on operations? - Internally, the company is leveraging AgenTik AI to enhance productivity across departments, and externally, it aims to preserve margins while exploring revenue growth opportunities [100][102] Question: What are the challenges in the point of sale business? - The point of sale segment is experiencing significant growth, with an 80% year-over-year increase in transactions, driven by retail customer expansion [112]