At the recent Boomi World Tour event in Sydney, Australia, the company stressed that without connectivity, context, and control, there will be no business impact. This epitomises the challenge for businesses as they continue to pursue agentic transformation, especially with the recent focus on various AI technologies to drive new operating and business models. As enterprises shift their focus toward agentic AI, they often look at the tasks they can automate with AI agents. However, the bigger picture is a ...

Core Points - The EU Data Act, effective from 12 September 2023, requires businesses in Europe to reassess their data management strategies [1] - The Act aims to clarify data value creation and usage rules, particularly for data generated by Internet of Things devices [2] - The legislation seeks to redistribute data control from large manufacturers and cloud providers to users and smaller EU companies [3] - Cloud providers are mandated to facilitate platform switching and interoperability, while technology firms must provide data to public sector bodies in emergencies [4] - The Data Act adds regulatory complexity for foreign multinationals already subject to GDPR and other EU regulations [5] - Companies are advised to review their data processing services and update contractual terms to comply with the new regulation [6] - The Act may create opportunities for businesses to access valuable data and innovate services, while also necessitating the protection of trade secrets [7] - "Access by design" must be integrated into certain IoT devices, ensuring secure data accessibility for users [8]

Core Insights - Egnyte is enhancing its data management solutions with the introduction of the ACC Connector, which integrates with Autodesk Construction Cloud to streamline workflows and extend governance capabilities [1][2] - The integration aims to reduce duplicative work, eliminate data silos, and ensure consistent file versioning and governance, providing a comprehensive view of the content lifecycle [2][3] - The ACC Connector allows firms to migrate data throughout the project lifecycle and implement automated retention policies to meet legal and compliance requirements [3] Company Commitment - Egnyte is dedicated to improving workflows for AEC professionals by integrating with Autodesk Construction Cloud, facilitating secure access to large files, remote collaboration, and governance controls [4] - The company emphasizes the importance of a familiar desktop interface for users in the AEC industry [4] Customer Base - Egnyte serves over 22,000 customers across various industries, including architecture, engineering, construction, life sciences, and financial services, focusing on improving productivity and safeguarding critical data [5]

Financial Data and Key Metrics Changes - Record revenue for Q4 FY 2025 was $1,730 million, up 4% year over year and up 6% sequentially [20] - Q4 billings were $2,030 million, up 12% year over year, marking the sixth consecutive quarter of year-over-year growth [20] - Total revenue for FY 2025 was $6,570 million, up 5% year over year, with billings at $6,780 million, up 8% year over year [26] - Q4 operating margin was 28.6%, up 50 basis points year over year, representing the highest for Q4 in the company's history [24] - EPS for Q4 was $1.93, up 7% year over year, driven by lower operating expenses and an effective tax rate [24] Business Line Data and Key Metrics Changes - Hybrid cloud revenue for Q4 was $1,570 million, up 3% year over year [20] - Product revenue was $845 million, up 5% year over year, while support revenue was flat at $625 million [21] - Public cloud revenue was $164 million, up 8% year over year, and grew 22% year over year when excluding the recently divested SPOT business [21][28] - First-party and marketplace cloud storage services grew 44% year over year in Q4, comprising roughly 75% of public cloud segment revenue [11][12] Market Data and Key Metrics Changes - All flash array annualized revenue run rate grew 14% year over year to a record $4,100 million in Q4 [8] - The company gained almost 300 basis points of all flash market share in calendar 2024, more than any other vendor [9] - Public cloud revenue growth was driven by strong performance in first-party and marketplace services, which are expected to continue accelerating [47] Company Strategy and Development Direction - The company aims to lead in the enterprise AI market and has positioned itself to capitalize on the growth of all flash systems and public cloud services [6][7] - Focus on modernizing data infrastructure and enhancing cloud transformation to meet customer demands for AI readiness and operational efficiency [7][8] - Plans to make prudent investments in R&D and sales capacity to drive ongoing innovation and capture additional market share [17] Management's Comments on Operating Environment and Future Outlook - The global macroeconomic outlook shows mixed signals, with expectations of increased spending caution and ongoing friction in the US public sector and EMEA [16] - Management remains confident in the company's ability to deliver strong performance despite uncertainties, driven by alignment with key IT priorities [16][17] - The company expects FY 2026 total revenue to be in the range of $6,625 million to $6,875 million, reflecting a cautious outlook due to macroeconomic factors [28][29] Other Important Information - The company exited FY 2025 with $4,540 million in deferred revenue, an increase of 7% year over year [22] - Cash flow from operations was $675 million, and free cash flow was $640 million in Q4 [24] - The company announced an increase in share repurchase authorization by $1,100 million [26] Q&A Session Summary Question: Guidance for Q1 and full year - Management acknowledged Q1 guidance appears light but emphasized strong momentum and large deals in the pipeline for the year [35][38] Question: Execution and macro concerns - Management noted that while there are macro concerns, strong execution in Q4 and a robust pipeline provide confidence in growth [42][44] Question: Public cloud revenue performance - Public cloud revenue in Q4, excluding SPOT, was up 22% year over year, with expectations for continued acceleration in FY 2026 [47] Question: AI infrastructure deals - Management confirmed ongoing negotiations for sizable AI and data infrastructure modernization deals, contributing to FY 2026 outlook [53] Question: Product gross margins outlook - Management expects product gross margins to improve gradually throughout FY 2026, with Q1 margins expected to be flattish [65][70] Question: Public sector exposure - US public sector accounts for low teens percentage of business, with ongoing concerns about budget approvals impacting growth [100][116]

Financial Data and Key Metrics Changes - Total revenues in Q1 were $93.1 million, up 25% year over year, exceeding guidance [22] - SaaS revenue for Q1 was $68.9 million, representing year-over-year growth of 34% on a constant currency basis, comprising 74% of total revenues [22][23] - Gross profit for Q1 was $69.8 million, with a gross margin of 75%, an improvement from 74.1% in Q1 of the previous year [28] - Operating income for Q1 was $13.4 million, with an operating margin of 14.4%, compared to 8.9% in the prior year [29] Business Line Data and Key Metrics Changes - Term license and support revenue grew 12% in Q1, driven by large deals in the APAC region [23] - Maintenance revenue declined year over year, while service revenues grew 4% but represented less than 12% of total revenues [23] - Combined SaaS and term license revenues grew 31% in Q1, indicating strong subscription revenue growth [23] Market Data and Key Metrics Changes - In North America, SaaS revenues grew 31% year over year, representing 82% of total North America revenues [24] - EMEA SaaS revenues grew 36% year over year, representing 85% of total EMEA revenues [24] - APAC SaaS revenues grew 40% year over year, representing 51% of total APAC revenues [25] Company Strategy and Development Direction - The company aims to become the world's leading data management software company, targeting $1 billion in ARR by 2029 [7] - Focus on integrated platforms to address converging challenges in data security, governance, and resilience [13] - Continued innovation in multi-cloud capabilities and AI-powered solutions to enhance customer value [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment remains stable, with top needs being AI and security [38] - The company is well-positioned to navigate macroeconomic uncertainties, leveraging its historical experience [9][88] - Management expressed confidence in the ongoing demand for data management solutions amid increasing regulatory pressures and AI adoption [20][83] Other Important Information - The company ended Q1 with $351.8 million in cash and equivalents, including $87.3 million from warrant exercises [30] - The company repurchased 800,000 shares for approximately $12 million in Q1 [31] Q&A Session Summary Question: Are you seeing any change in the demand environment? - Management indicated that the demand environment remains stable, with no significant changes noted [38] Question: What is the competitive environment like? - Management highlighted that data governance is driving new customer acquisitions, especially as companies prepare for AI deployment [40] Question: Can you discuss the momentum on the MSP side? - Management expressed optimism about the MSP segment, noting significant growth and the recent acquisition of Identiq [48] Question: How far along are companies in their data modernization strategies? - Management stated that companies are still in the early stages of data modernization, emphasizing the complexity of implementing AI [66] Question: Is there a shift in the direct sales strategy? - Management confirmed that direct sales focus remains on large enterprises, while the channel targets small to medium businesses [72]

Financial Data and Key Metrics Changes - Total ARR growth accelerated to 24% year-over-year, and 25% when adjusted for foreign exchange [31][40] - Total revenues for Q4 were $89.2 million, representing year-over-year growth of 20% [35] - Non-GAAP operating margin for Q4 was 16.2%, a significant improvement from the previous year [44][50] - Cash generated from operations for the full year was $88.9 million, with free cash flow of $85.9 million, more than doubling the previous year's figures [46] Business Line Data and Key Metrics Changes - SaaS revenue for Q4 was $64.8 million, growing 43% year-over-year and representing 73% of total Q4 revenues [36] - Term license and support revenue declined to $9.4 million, representing 11% of Q4 revenues [37] - Maintenance revenue also declined year-over-year, representing 3% of total Q4 revenues [37] Market Data and Key Metrics Changes - In North America, SaaS revenues grew 46% year-over-year, while EMEA and APAC saw growth rates of 37% and 50% respectively [38] - North America ARR grew 21%, EMEA ARR grew 24%, and APAC ARR grew 29% [39][40] Company Strategy and Development Direction - The company aims to become the world's leading data management software company, focusing on durable, profitable growth at scale [8][9] - The "Beyond Secure" philosophy addresses traditional data management inadequacies, promoting a comprehensive approach to data security and governance [27][28] - The strategic acquisition of Ydentic aims to enhance automation and IT management capabilities for Microsoft Managed Services Providers [28][82] Management's Comments on Operating Environment and Future Outlook - Management highlighted the growing demand for data management solutions amid digital transformations and AI adoption [10][17] - The company is positioned to capitalize on the urgent need for data modernization and governance as businesses navigate complex regulatory environments [15][18] - Management expressed confidence in the demand environment and plans to invest in sales, marketing, and R&D for long-term growth [100][101] Other Important Information - The company ended Q4 with $290.9 million in cash and short-term investments [45] - The full-year 2024 results showed total revenues of $330.5 million, representing growth of 22% [48] Q&A Session Summary Question: What is the U.S. Federal exposure and outlook? - The company's federal business exposure is around 2% of total ARR, with ongoing discussions about digital transformation and AI readiness with agencies [58][59] Question: What is causing the gap between ARR growth and revenue growth in 2025? - The gap is influenced by foreign exchange impacts and a shift in revenue mix, particularly the decline in term license revenue [60][92] Question: How are pricing changes impacting ARR and NRR? - The primary driver for NRR growth is customers consuming more of the platform, with price increases contributing minimally [67][68] Question: What is the significance of the new data security solutions for Google? - The expansion into Google enhances the company's multi-cloud capabilities, positioning it as a strategic partner for customers [72] Question: How is the competitive environment evolving in data security posture management? - The market remains competitive, but the company is confident in its platform approach and ability to expand into mid-market segments [78] Question: What are the integration goals for the Ydentic acquisition? - The acquisition aims to enhance managed services offerings and expand into SMB and medium-sized customers [82][84] Question: What are the expectations for seasonality in the next fiscal year? - Seasonality is expected to remain similar to previous years, with Q1 typically being the lowest ARR quarter [113][115]