Financial Data and Key Metrics Changes - Total revenue for Q3 grew 9% year-over-year to $219.1 million, while subscription revenue increased 5% year-over-year to $190.3 million [5][16] - Non-GAAP operating income was $33.5 million, resulting in a 15% non-GAAP operating margin for the quarter [5][20] - Professional services revenue was $28.8 million, driven by large CCaaS rollouts, with a net dollar expansion rate of 102% [17][18] - Non-GAAP subscription gross margin was 77%, and total non-GAAP gross margin was 67% [19][20] Business Line Data and Key Metrics Changes - The company is focusing on Project Bear Hug, which aims to deepen engagement with the top 700 customers, representing over 80% of total revenue [9] - The revenue contributed by the $1 million customers' cohort increased by 9% year-over-year, with a net dollar expansion rate of 113% [18] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) were $857.6 million, down 5% year-over-year, while current RPO was $562.2 million, up 3% year-over-year [21] - The company expects total billings of approximately $320 million for Q4, traditionally the strongest quarter [22] Company Strategy and Development Direction - The company is in a transformation phase, focusing on improving its position in the customer experience market and leveraging its AI-powered platform [6][8] - The strategy includes enhancing customer engagement through first-party data and personalized omnichannel experiences [6][14] - The leadership team has been strengthened with new appointments, including a new CFO and Chief Product and Corporate Strategy Officer [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and commitment to driving sustainable growth and long-term shareholder value [8][14] - The company is optimistic about improving renewal rates and customer engagement metrics, indicating a stronger position than at the start of the year [8][14] - Management acknowledged that transformation takes time and emphasized the importance of executing several quarters together to establish a solid foundation [30][75] Other Important Information - The company generated $15.5 million in free cash flow in Q3 and $126 million year-to-date, with a strong balance sheet of $480.3 million in cash and no debt [20] - The company raised its full-year revenue guidance, now expecting total revenue in the range of $853 million to $854 million, representing 7% growth year-over-year [24] Q&A Session Summary Question: How sustainable is the revenue performance as the company heads into next year? - Management indicated that while Q3 showed good performance, it is essential to string several quarters together to assess sustainability [29][30] Question: What is at risk with Project Bear Hug, and what outcomes can be expected? - Management explained that Bear Hug aims to deepen customer relationships, and successful engagement can lead to better renewal rates and reduced churn [32][36] Question: How is the company stabilizing its leadership bench amid recent changes? - Management stated that most senior leadership changes are complete, and the current team is experienced and aligned with the company's strategy [40][42] Question: How did renewals in Q3 compare to expectations, and what is anticipated for Q4? - Management reported that renewal rates met or exceeded expectations in Q3, and they are actively managing renewals for upcoming quarters [49][50] Question: Can you provide an update on pricing and bundling initiatives? - Management confirmed that the first phase of new pricing and bundling has been implemented with positive early feedback, and plans to expand this to existing customers are underway [58][60]

Financial Data and Key Metrics Changes - Total revenue for Q3 grew 9% year-over-year to $219.1 million, while subscription revenue increased 5% year-over-year to $190.3 million [4][16] - Non-GAAP operating income was $33.5 million, resulting in a 15% non-GAAP operating margin for the quarter [4][19] - Free cash flow for Q3 was $15.5 million, with a year-to-date total of $126 million [19][24] - Subscription revenue-based net dollar expansion rate was 102%, showing stabilization [17] Business Line Data and Key Metrics Changes - Professional services revenue was $28.8 million, driven by large CCaaS rollouts expected to translate into future software subscription revenue [17] - The number of customers contributing $1 million or more in subscription revenue decreased by four to 145, but revenue from this cohort grew 9% year-over-year [18] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) were $857.6 million, down 5% year-over-year, while current RPO was $562.2 million, up 3% year-over-year [20][21] - The company expects total billings of approximately $320 million for Q4, traditionally the strongest quarter [22] Company Strategy and Development Direction - The company is focused on deepening engagement with its top 700 customers through Project Bear Hug, which aims to improve renewal rates and customer relationships [9][31] - The strategy includes leveraging AI capabilities to enhance customer experience and operational efficiency [5][10] - The company is in a transitional year, with plans to embed operational changes and drive sustainable growth [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and noted improvements in key metrics, but emphasized the need for continued execution and patience [28][56] - The leadership team is aligned and focused on scaling the business with operational discipline [15][16] - Management anticipates that FY27 will provide clearer guidance as the company transitions into an acceleration phase [55] Other Important Information - The company has made significant operational improvements, including streamlining processes and enhancing cross-functional alignment [8] - The balance sheet remains strong, with $480.3 million in cash and marketable securities and no debt [19] Q&A Session Summary Question: How sustainable is the recent revenue performance as the company heads into next year? - Management indicated that while Q3 showed good performance, it is essential to string several quarters together to assess sustainability [28][29] Question: What is the expected impact of Project Bear Hug on troubled accounts? - Project Bear Hug aims to deepen customer relationships and has shown positive metrics, with a net dollar expansion rate of 113% for the $1 million-plus customer cohort [31][32] Question: How is the leadership team stabilizing after recent changes? - Management stated that most senior leadership changes are complete, and the team is experienced and focused on the transformation journey [33][36] Question: How did renewals in Q3 compare to expectations? - Renewals met or exceeded expectations, with improved predictability in metrics, and management is actively managing renewals for upcoming quarters [39][40] Question: What is the company's approach to AI capabilities and investments? - The company views its AI-native platform as critical for unifying customer experience and plans to continue investing in AI capabilities [49][52]

Core Insights - American Rebel Holdings, Inc. has made a strategic investment of $1.5 million in RAEK Data, LLC, which recently acquired FirstPartyData.com, aiming to enhance data-driven growth and customer loyalty [1][2][26] - The acquisition aligns with RAEK's mission to build a first-party data engine for the AI economy, emphasizing the importance of data ownership and accuracy for businesses [2][4][15] Company Strategy - American Rebel's investment in RAEK is part of a broader strategy to leverage data for marketing and customer engagement, moving away from reliance on third-party platforms [3][10] - The partnership is expected to amplify American Rebel's brand story and enhance its ability to convert customer interest into long-term loyalty and shareholder value [3][21] RAEK's Technology and Market Position - RAEK's EchoID technology allows for real-time identity resolution, transforming anonymous website visitors into actionable profiles, which enhances marketing efficiency and customer relationships [6][10][16] - The acquisition of FirstPartyData.com expands RAEK's first-party data ecosystem, positioning it as a leading provider in a market shifting towards privacy-compliant data strategies [4][14][15] Industry Trends - The marketing landscape is evolving away from third-party cookies towards owned data strategies, with RAEK providing solutions that help brands maintain visibility and control over their audiences [9][10] - As consumer privacy standards tighten, RAEK's focus on first-party data is seen as a critical advantage for brands looking to build lasting customer relationships [11][15] Future Outlook - RAEK aims to support brands in navigating the challenges posed by privacy regulations and rising digital advertising costs, positioning itself as a key player in the AI-driven economy [9][15][21] - The strategic acquisition is expected to drive significant growth for RAEK, enhancing its capabilities in delivering structured, permissioned data that is essential for effective AI applications [8][15][26]