Core Viewpoint - Software stocks have experienced a significant decline, while loan pricing has remained relatively stable, prompting Morgan Stanley to adopt a cautious stance, particularly regarding Business Development Companies (BDCs) which are deemed most vulnerable [1] Group 1: Software Stocks - Software stocks are down sharply, indicating a potential shift in market sentiment towards technology investments [1] - The decline in software stocks may reflect broader economic concerns or sector-specific challenges [1] Group 2: Loan Pricing - Loan pricing has barely moved, suggesting stability in lending conditions despite the downturn in software stocks [1] - The stability in loan pricing may provide a buffer for companies reliant on debt financing [1] Group 3: Business Development Companies (BDCs) - BDCs are highlighted as the most exposed to the current market conditions, indicating potential risks for these entities [1] - The cautious outlook from Morgan Stanley suggests that BDCs may face challenges in maintaining performance amidst the volatility in software stocks [1]

Boost In AI Spending. The Stock Is Tumbling.][Oracle Is Raising Billions to Fund Its AI Buildout. Today, Investors Are Cheering][Palantir's CEO Is Feeling Good After the Software Company's 'Remarkable' Quarter] [Tesla Is Promoting Its 'FSD' Sales. They're Also an Important Part of Elon Musk's Pay][Elon Musk's Latest Big Move: Tesla Won't Make Two of Its Car Models Anymore][The Once-Hot AI Trade Hit a Snag. Some Experts Call That a 'Fantastic' Sign.][Investors Love Palantir's Earnings. The Stock Is Soaring.] ...

Freshworks forecast annual revenue above Wall Street estimates on Tuesday, betting on growing adoption of its software tools that incorporate artificial intelligence to automate customer support and I... ...

Cloudflare Announces Fourth Quarter and Fiscal Year 2025 Financial ResultsFeb 10, 2026 4:15 PM Eastern Standard Time# Cloudflare Announces Fourth Quarter and Fiscal Year 2025 Financial ResultsShare---- Delivered RPO year-over-year growth of 48% and Current RPO year-over-year growth of 34%- GAAP loss from operations of $49.2 million, or 8% of total revenue, and non-GAAP income from operations of $89.6 million, or 15% of total revenue- Fourth quarter revenue totaled $614.5 million, representing an increase of ...

Core Insights - Freshworks Inc. reported strong financial results for Q4 and fiscal year 2025, exceeding revenue and operating margin guidance, with a year-over-year revenue growth of 16% [1][5][8] - The company’s EX business achieved over $500 million in annual recurring revenue, indicating significant growth in this segment [1] Financial Performance - **Q4 2025 Results**: Total revenue reached $222.7 million, a 14% increase from $194.6 million in Q4 2024. Adjusted for constant currency, the growth was 13% [5][37] - **Operating Income**: GAAP income from operations was $39.7 million, with an operating margin of 17.8%, compared to a loss of $23.8 million and a margin of (12.2)% in Q4 2024 [5][37] - **Net Income**: GAAP diluted net income per share was $0.67, up from a loss of $(0.07) in Q4 2024 [5][9] - **Cash Flow**: Net cash provided by operating activities was $62.3 million, representing a margin of 28.0%, compared to $41.4 million and a margin of 21.3% in Q4 2024 [5][9] Full Year 2025 Summary - **Total Revenue**: For the full year, revenue was $838.8 million, a 16% increase from $720.4 million in 2024 [5][37] - **Operating Income**: GAAP income from operations was $13.2 million, with a margin of 1.6%, compared to a loss of $(138.6) million and a margin of (19.2)% in 2024 [5][37] - **Non-GAAP Income**: Non-GAAP income from operations was $178.0 million, with a margin of 21.2%, up from $99.1 million and a margin of 13.8% in 2024 [5][37] Customer Metrics and Business Highlights - The number of customers contributing more than $5,000 in annual recurring revenue (ARR) increased by 10% year-over-year to 24,762 [10] - The net dollar retention rate improved to 108%, compared to 105% in Q3 2025 and 103% in Q4 2024 [10] - Freshworks announced the acquisition of FireHydrant to enhance its IT Service Management offerings [10] - New product capabilities were launched, including Freshdesk Command Center and Freddy AI Insights, aimed at improving customer experience [10] Financial Outlook - For Q1 2026, Freshworks expects revenue between $222.0 million and $225.0 million, with year-over-year growth of 13% to 15% [8] - For the full year 2026, revenue is projected to be between $952.0 million and $960.0 million, with growth of 13.5% to 14.5% [8]

The software rout that kicked off last week turned into a goldmine for short sellers who've been betting against tech's highest flyers. Data from S3 Partners shows that bears have raked in roughly $24 billion in paper profits year-to-date (YTD) as software stocks have cratered from lofty valuations. While the sector has lost $1 trillion in market value, short sellers are laughing all the way to the bank. www.barchart.com Oracle (ORCL) is the poster child for this reversal, shedding about 54% from its Sep ...

Core Insights - BlackLine, Inc. reported strong financial results for Q4 and full year 2025, highlighting record bookings and a successful strategic transformation initiated over two years ago [2][6]. Financial Highlights Fourth Quarter 2025 - Total GAAP revenues reached $183.2 million, marking an 8.1% increase from Q4 2024 [6]. - GAAP operating margin remained stable at 3.7%, while non-GAAP operating margin improved to 24.7% from 18.1% in Q4 2024 [6]. - GAAP net income attributable to BlackLine was $4.9 million, or $0.08 per diluted share, a decrease from $56.4 million, or $0.79 per diluted share in Q4 2024 [6]. - Non-GAAP net income attributable to BlackLine was $45.2 million, or $0.63 per diluted share, up from $34.6 million, or $0.47 per diluted share in Q4 2024 [6]. - Billings increased by 9.5% to $226.9 million compared to Q4 2024 [6]. - Remaining performance obligation rose by 23.5% to $1.1 billion [6]. - Operating cash flow was $26.7 million, down from $43.8 million in Q4 2024 [6]. - Free cash flow decreased to $19.9 million from $36.5 million in Q4 2024 [6]. Full Year 2025 - Total GAAP revenues for the year were $700.4 million, a 7.2% increase from 2024 [6]. - GAAP operating margin improved to 3.6% from 2.8% in 2024 [6]. - GAAP net income attributable to BlackLine was $24.5 million, or $0.39 per diluted share, compared to $161.2 million, or $1.45 per diluted share in 2024 [6]. - Non-GAAP net income attributable to BlackLine was $157.0 million, or $2.13 per diluted share, slightly down from $162.1 million, or $2.18 per diluted share in 2024 [6]. - Operating cash flow for the year was $169.6 million, down from $190.8 million in 2024 [6]. - Free cash flow decreased to $134.9 million from $164.0 million in 2024 [6]. Customer Metrics and Business Developments - BlackLine had a total of 4,394 customers as of December 31, 2025 [5]. - The company achieved a dollar-based net revenue retention rate of 105% [12]. - BlackLine expanded its global cloud footprint to Saudi Arabia and secured an official listing on the FedRAMP Marketplace [12]. - The acquisition of WiseLayer, an AI-powered accounting and finance automation company, was completed to enhance BlackLine's AI capabilities [12]. Financial Outlook First Quarter 2026 - Total GAAP revenue is expected to be in the range of $180 million to $182 million [13]. - Non-GAAP operating margin is projected to be between 18.5% and 19.5% [13]. - Non-GAAP net income attributable to BlackLine is anticipated to be between $31 million and $33 million, or $0.44 to $0.46 per share [13]. Full Year 2026 - Total GAAP revenue is expected to be in the range of $764 million to $768 million [13]. - Non-GAAP operating margin is projected to be between 23.7% and 24.3% [13]. - Non-GAAP net income attributable to BlackLine is anticipated to be between $172 million and $180 million, or $2.37 to $2.48 per share [13].

Core Viewpoint - A class action lawsuit has been filed against Varonis Systems, Inc. for allegedly making materially false and misleading statements regarding its business operations and prospects during the class period from February 4, 2025, to October 28, 2025 [6]. Group 1: Allegations - The lawsuit claims that Varonis failed to disclose that it was not adequately prepared to sustain its Annual Recurring Revenue (ARR) growth without maintaining a high rate of quarterly conversions [6]. - Defendants' positive statements about Varonis's business were allegedly misleading and lacked a reasonable basis [6]. - The company reported a significant decline in term license subscription revenues, with a year-over-year decrease of 63.9% [6]. Group 2: Financial Impact - On October 28, 2025, Varonis announced its third-quarter financial results, which missed consensus estimates and led to a reduction in full-year ARR guidance due to underperformance in its on-prem subscription business [6]. - Following the announcement, Varonis's stock price dropped by $30.66, or 48.7%, closing at $32.34 per share on October 29, 2025 [6]. Group 3: Next Steps for Investors - Investors who purchased Varonis shares during the class period and suffered losses are encouraged to contact Bragar Eagel & Squire, P.C. to discuss their legal rights and options [4][6].

Core Insights - Blackbaud's CEO Michael Gianoni emphasized the central role of AI in the company's product strategy and operations, stating that the company is fully committed to AI initiatives and requires all employees to undergo AI training [1][5][7] Financial Performance - For FY2025, Blackbaud reported organic revenue growth of 5.5%, reaching $1.128 billion, with adjusted EBITDA of $405 million and a margin of 35.9% [4][8] - Non-GAAP EPS increased to $4.45, reflecting a year-over-year growth of approximately 12% after accounting for the impact of the EVERFI divestiture [3][8] - The company generated adjusted free cash flow of $208 million, exceeding the upper limit of its revised guidance [3][8] Capital Allocation - Blackbaud accelerated its share repurchase program, buying back about 8% of its outstanding common stock in 2025, following an 11% repurchase in 2024 [2][8] - Debt leverage improved, decreasing from 2.9x in Q1 to 2.5x by year-end [2][8] 2026 Guidance - The company provided guidance for 2026, projecting revenue between $1.173 billion and $1.179 billion, representing 4% to 4.5% organic growth [6][15] - Adjusted EBITDA is expected to be between $430 million and $438 million, indicating a growth of 6% to 8% year-over-year [6][15] - Non-GAAP EPS is forecasted to be between $5.15 and $5.25, marking a growth of 16% to 18% [15][19] Long-term Targets - Blackbaud aims for organic revenue growth of 4% to 6% from 2026 to 2030, with adjusted EBITDA growth of 6% to 8% CAGR and an expansion of adjusted EBITDA margin to over 40% [18] - The company plans to allocate at least 50% of cumulative free cash flow from 2026 to 2030 for stock repurchases [18] AI Initiatives - The company is rolling out generative AI features across its products, including the introduction of "Blackbaud AI Chat" and the "Blackbaud Agents for Good" initiative, which aims to enhance donor engagement [9][11] - The first product under the Agents for Good initiative is a subscription-based fundraising development agent, expected to generate new revenue streams [12][13] Customer Environment - Gianoni noted that while some customers face funding challenges, the overall environment remains stable, with no significant business closures reported among clients [22] - The company is focusing on internal productivity gains from AI and expanding operations in India to drive margin improvements [23]

Group 1 - Concerns about AI stocks have emerged as investors question the high valuations and the potential returns from significant capital expenditures planned by major tech companies [1][6] - Recent sell-offs in software stocks are attributed to fears that AI could disrupt software-as-a-service (SaaS) products and business models, leading to a paradox where AI is perceived as both struggling and a threat to existing software [2][9] - The heavy investment in AI-related capital expenditures by large tech firms raises doubts about the sustainability of returns, especially given the resource demands of AI, such as power and water for data centers [6][7] Group 2 - A report from the Lawrence Berkeley National Laboratory predicts that by 2028, over half of the power used by data centers will be for AI, potentially consuming electricity equivalent to 22% of all U.S. households [7] - McKinsey estimates that $6.7 trillion will be needed for data center spending by 2030 to meet the growing demand for computing power [7] - Criticism of OpenAI's latest models has led to skepticism about whether the substantial investments in AI will result in significantly improved models, contributing to the recent market sell-off [8][10] Group 3 - The introduction of new AI tools, such as Anthropic's Claude Cowork, has intensified fears that AI could render many existing software models obsolete [9] - Bank of America's Vivek Arya suggests that while AI models offer unprecedented intelligence, the process of harnessing and productizing this intelligence will take several years, indicating a disconnect between current investment expectations and future outcomes [10]