Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $732 million, a 6% year-over-year increase, at the high end of guidance [15][22] - Cloud revenue reached $563 million, up 13% year-over-year, representing 77% of total revenue [15][20] - Adjusted earnings per share for Q3 were $3.18, a 10% increase compared to the previous year [20] - Cash flow from operations was $191 million, reflecting a 20% year-over-year increase [21] Business Line Data and Key Metrics Changes - Customer engagement revenue, which accounted for 84% of total revenue, was $613 million, increasing 6% year-over-year [19] - Financial crime and compliance revenue, representing 16% of total revenue, totaled $119 million, up 7% year-over-year [19] - Annual recurring revenue (ARR) from AI and self-service offerings accelerated to 49% year-over-year [6][16] Market Data and Key Metrics Changes - The Americas region contributed 84% of revenue, with a 5% year-over-year increase [17] - EMEA revenue increased by 7% year-over-year, while APAC revenue grew by 19% year-over-year, leading to an 11% increase in international revenue [18] - Cloud net revenue retention (NRR) for the trailing 12 months was 109% [16] Company Strategy and Development Direction - The company is focused on an AI-first strategy, with significant momentum in cloud and AI bookings [5][12] - The acquisition of NICE Cognigy is expected to enhance AI and self-service growth trajectories [15][24] - The company aims to lead the AI revolution in customer experience (CX) and expand its international presence [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI solutions and the transformation of customer engagement [10][12] - The company anticipates continued growth in cloud revenue and a positive impact from the Cognigy acquisition [24][49] - Management highlighted the importance of maintaining financial strength while investing in growth opportunities [22][23] Other Important Information - The company will hold a Capital Markets Day on November 17, 2025, to discuss long-term strategy and financial outlook [13][81] - The company ended the quarter debt-free with total cash and short-term investments of $456 million [22] Q&A Session Summary Question: What is the expected Q4 revenue contribution from Cognigy? - Management indicated that Cognigy contributed approximately 50 basis points to cloud revenue growth in Q3 and is expected to add about 150 basis points in Q4 [27][28] Question: How is Cognigy positioned in terms of go-to-market strategy? - Cognigy will pursue the CX market independently of NICE's CCAS platform, targeting companies lacking integrated solutions [28] Question: What are the competitive dynamics in the market, especially with new entrants? - Management acknowledged the growing competition but emphasized Cognigy's established market leadership and ease of adoption [33][34] Question: How is the renewed partnership with RingCentral impacting pipeline velocity? - Management noted strong collaboration with RingCentral, leading to increased confidence and growth expectations [39][40] Question: What is the outlook for net revenue retention (NRR)? - Management expects stabilization in NRR and positive inflection moving forward, supported by strong cross-sell and upsell efforts [64][67] Question: How is the company addressing competitive pressures in the Actimize business? - Management highlighted Actimize's strong market position and ongoing demand due to regulatory compliance needs [77][78]

Core Insights - Aterian, Inc. has been awarded the Orchestrators Innovation Award by Genesys for its commitment to innovation in customer experience and technology [1][2] - The company has successfully transformed its customer experience (CX) foundation through collaboration with Genesys and Amplix, leading to significant operational improvements [2] Company Overview - Aterian, Inc. is a consumer products company that builds and acquires e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [3] - The company operates on major online marketplaces such as Amazon, Walmart, and Target, as well as its own direct-to-consumer websites [3] Customer Experience Transformation - Aterian's CX transformation resulted in a 65% reduction in total cost of ownership and a 30% improvement in service level agreement (SLA) performance during peak seasons [2] - The company achieved a 5-20% improvement in talk time across its brands, while email handle times decreased despite the launch of voice support without increasing headcount [2] - Agents are now able to manage more complex interactions across new voice and chat channels, enhancing efficiency and productivity [2] Leadership Perspective - Roi Zahut, Aterian's Chief Technology Officer, emphasized the importance of customer perception, stating that customers value feeling heard and appreciated, regardless of whether their issues are addressed by humans or AI [3]