Financial Performance - ACV (Annual Contract Value) grew by 16%, or 14% in constant currency, reaching $1.514 billion as of June 30, 2025[60, 62] - Pega Cloud ACV experienced significant growth of 28%, or 25% in constant currency[21, 71, 75] - Free cash flow year-to-date (YTD) reached $286 million[21] - Total backlog increased by 31% to $1.835 billion[84] - Net ACV add for the first half of 2025 was $99 million, a 60% increase compared to the first half of 2024[78, 79] Market and Business Strategy - Pega is targeting a large market opportunity, estimated at over $90 billion in FY25 and projected to exceed $150 billion by FY29[26, 56] - The company is focused on a recurring subscription model and aims to drive ACV growth and leverage Pega Cloud[54, 66] - Pega emphasizes its technology leadership in customer engagement and intelligent automation[26] Technology and Solutions - Pega's platform offers enterprise AI decisioning and workflow automation[11] - Key solutions include 1:1 Customer Engagement, Customer Service, and Workflow Automation[12, 30] - Pega's architecture is designed for scalability and rapid innovation, featuring the Situational Layer Cake and Pega Express[13, 14]

Financial Data and Key Metrics Changes - In Q2 2025, cloud revenue rose by 28%, an increase of two percentage points compared to Q1 2025 [8][27] - Total revenue growth accelerated to 12%, reaching €9 billion [9][33] - Operating profit surged by 35%, reflecting improvements in the cost base due to transformation programs [9][32] - Current cloud backlog grew by 28% to €18.1 billion [27][33] - Non-IFRS cloud gross margin expanded by 1.8 percentage points to 75.2% [32] Business Line Data and Key Metrics Changes - The Cloud ERP suite continued to drive growth, achieving 34% growth in Q2, representing 86% of total cloud revenue [27][32] - Software licenses revenue decreased by 13% in Q2, aligning with the company's strategy to transition customers to cloud solutions [30] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with notable performances in Brazil, Chile, France, India, Italy, South Korea, and Spain [31] - The US public sector and manufacturing sectors experienced elongated sales cycles due to geopolitical uncertainties [28][30] Company Strategy and Development Direction - The company is focusing on product innovation and increasing productivity through business AI [7][25] - SAP aims to strengthen its portfolio with data and AI innovations while maintaining cost discipline [25][34] - The partnership with Alibaba is expected to enhance market penetration in China, targeting both large enterprises and the upper mid-market [10][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in global markets but expressed confidence in the company's pipeline for the second half of the year [7][34] - The company is preparing for potential less favorable outcomes by focusing on elements within its control to protect its bottom line [30] - Management remains optimistic about sustaining momentum and closing the year strongly despite macroeconomic volatility [34] Other Important Information - The company has released over 100 pre-built SAP managed data products, with plans to double that by year-end [21] - The internal adoption of business AI is expected to further enhance productivity and operational efficiency [22][24] Q&A Session Summary Question: Insights on operating margin and EBIT growth for the second half of the year - Management highlighted that the strong performance in the first half was significantly influenced by a €331 million improvement in stock-based compensation, which is expected to normalize in the second half [41][42] Question: Long-term sustainability of margin improvements - Management expressed confidence in maintaining operating leverage ratios between 80% to 90% for the coming years, despite potential fluctuations in expenses [52][53] Question: Details on the Alibaba partnership and its impact - The partnership aims to leverage Alibaba's presence in China to enhance SAP's cloud offerings, targeting both multinational companies and local tech firms [60][63] Question: Impact of macroeconomic factors on demand - Management noted that elongated deal cycles are primarily due to stricter cost controls in certain industries, but emphasized that the pipeline remains strong [97][100] Question: Cash flow and transformation credits - Management explained that transformation credits are amortized over the term of deals and do not significantly impact cash conversion in the long term [66][67]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $272 million, up 3% year-over-year [27] - Cloud revenue increased 22% to $100 million, while services revenue declined 6% to $129 million [28] - Adjusted operating profit was $101 million with an adjusted operating margin of 37.1%, up 210 basis points year-over-year [30] - Adjusted earnings per share (EPS) for Q2 was $1.31, up 11%, and GAAP EPS was $0.93, up 9% [30] - Free cash flow margin was 26% with a 38% adjusted EBITDA margin [30] Business Line Data and Key Metrics Changes - RPO (Remaining Performance Obligations) increased 26% year-over-year to $2.01 billion [28] - More than 70% of new cloud bookings were generated from net new logos, with new logos representing approximately 35% of the current pipeline [12] - The average contract duration remains at 5.5 to 6 years, with 38% of RPO expected to be recognized as revenue over the next 24 months [29] Market Data and Key Metrics Changes - The company experienced strength from new customers across diverse end markets, including retail, grocery, life sciences, and technology [12] - Win rates against top five competitors remained consistent at over 70% [12] Company Strategy and Development Direction - The company is strategically increasing investment in sales and marketing to accelerate sales velocity and drive market share gains [13] - New partnerships with Google and Shopify are expected to enhance product accessibility and customer acquisition [15][16] - The company is focused on unifying its product portfolio to drive cross-selling opportunities, with 80% of customers purchasing multiple products [24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term opportunities despite a volatile global macro environment [11] - The company is raising its full-year total revenue, operating margin, and EPS outlook based on strong first-half performance [33] - Management expressed confidence in sustaining 20% growth in cloud subscription revenue, supported by a large booked business in RPO [46] Other Important Information - The company has zero debt and ended the quarter with $231 million in cash [31] - A share repurchase program of $150 million has been executed year-to-date, with an additional $100 million approved by the Board [31] Q&A Session Summary Question: On supply chain unification and potential enhancements - Management is doubling down on investment in unification through dedicated engineering teams and customer engagement initiatives [41][44] Question: Confidence in sustaining cloud subscription revenue growth - Management remains confident in sustaining 20% growth due to a solid booked business and expanding total addressable market (TAM) [46][49] Question: Go-to-market investment areas and their potential impact - New hires and partnerships are expected to enhance market awareness and drive revenue growth, particularly in POS and TMS markets [56] Question: Status of on-premise to cloud migration - Approximately 20% of on-premise customers have started the conversion to cloud, with ongoing efforts to accelerate this process [65] Question: Impact of ERP migrations on new customer acquisition - ERP migrations are creating opportunities for new customer acquisitions as companies reassess their supply chain needs [67] Question: Trends in the macro environment and customer investment behavior - CIOs are increasingly recognizing the importance of investing in supply chain solutions despite macro uncertainties [85] Question: Updates on marketing initiatives and awareness - The company is actively searching for a Chief Marketing Officer to enhance market presence and awareness [88]

Financial Performance - Cloud revenue reached €5130 million, a 24% increase, or 28% at constant currency (cc)[6] - Cloud ERP Suite revenue was €4422 million, up 30%, or 34% at constant currency (cc)[6] - Current cloud backlog increased to €18052 million, a 22% increase, or 28% at constant currency (cc)[6] - Total revenue increased by 9% to €9027 million, or 12% at constant currency (cc)[24] - Cloud and software revenue increased by 11% to €7966 million, or 14% at constant currency (cc)[24] - Non-IFRS operating profit increased by 32% to €2568 million, or 35% at constant currency (cc)[24] - IFRS earnings per share increased by 91% to €145, while Non-IFRS earnings per share increased by 37% to €150[29] - Operating cash flow increased by 71% to €2577 million, and free cash flow increased by 83% to €2357 million[29] Regional Performance - APJ cloud revenue increased by 33%, or 37% at constant currency (cc)[26] - Americas cloud revenue increased by 16%, or 22% at constant currency (cc)[26] - EMEA cloud revenue increased by 29%, or 30% at constant currency (cc)[26] Outlook - The company expects cloud revenue of €216 - €219 billion at constant currency (cc), a 26%-28% increase[31] - The company expects cloud and software revenue of €331 - €336 billion at constant currency (cc), an 11%-13% increase[31] - The company expects Non-IFRS operating profit of €103 - €106 billion at constant currency (cc), a 26%-30% increase[31]

Core Insights - SAP reported strong second-quarter results with adjusted earnings of $1.70, surpassing the consensus estimate of $1.47 [1] - Quarterly revenue reached $10.23 billion, exceeding the Street estimate of $9.11 billion [1] Financial Performance - Current cloud backlog stands at $21.26 billion, reflecting a 22% increase, and a 28% increase at constant currencies [4] - Cloud revenue grew by 24%, with a 28% increase at constant currencies [4] - Revenue from the Cloud ERP Suite increased by 30%, and by 34% at constant currencies [4] - Total revenue rose by 9%, with a 12% increase at constant currencies [4] - IFRS operating profit was reported at $2.93 billion, while non-IFRS operating profit was $3.05 billion, marking a 32% increase and a 35% increase at constant currencies [4] Strategic Initiatives - CEO Christian Klein highlighted the impact of AI innovations, such as Joule and SAP Business Data Cloud, in strengthening the company's portfolio [3]

Core Insights - SAP SE reported strong financial results for Q2 2025, highlighting significant growth in cloud revenue and profitability driven by customer demand and AI innovations [2][3][4] Financial Performance - Total revenue for Q2 2025 reached €9.03 billion, an increase of 9% year-over-year, with a 12% increase at constant currencies [5][12] - Cloud revenue grew by 24% to €5.13 billion, with a 28% increase at constant currencies [8][11] - SaaS/PaaS revenue increased by 26% to €5.05 billion, with a 30% increase in Cloud ERP Suite revenue to €4.42 billion [5][11] - IFRS operating profit rose to €2.46 billion, reflecting a growth of over 100% compared to the previous year [14] - Earnings per share (basic) increased by 91% to €1.45 [15] Operational Highlights - The current cloud backlog grew by 22% to €18.1 billion, with a 28% increase at constant currencies [8][11] - Operating cash flow for Q2 was up 71% to €2.58 billion, while free cash flow increased by 83% to €2.36 billion [16] - The share of more predictable revenue increased to 86%, up 2 percentage points from the previous year [12] Strategic Developments - SAP's "RISE with SAP" initiative continues to attract global customers, indicating strong demand for business transformation solutions [19][20] - Partnerships with Accenture and Alibaba Group were announced to enhance cloud transformation efforts [24][25] Outlook - SAP maintains its financial outlook for 2025, expecting cloud revenue to reach €21.6 – 21.9 billion, representing a growth of 26% to 28% at constant currencies [26][27] - The company anticipates a slight deceleration in current cloud backlog growth for 2025 [27]

MCLEAN, Va., July 17, 2025 /PRNewswire/ -- Appian (NASDAQ: APPN), today announced the appointment of David Crozier to the position of Chief Marketing Officer, effective July 21, 2025. He will report to Appian's CEO, Matt Calkins. Crozier brings more than 20 years of marketing experience to Appian. Post this David Crozier is named Chief Marketing Officer at Appian. Crozier brings more than 20 years of marketing experience to Appian. He was Vice President of Marketing at Hewlett Packard Enterprise (HPE) wh ...

Core Insights - UiPath (PATH) is trading at a forward 12-month price-to-sales (P/S) ratio of 4.12X, which is below the industry average of 5.75X, indicating a potential investment opportunity for those interested in enterprise automation [1][8] - The company has shown consistent revenue growth driven by strong demand in sectors such as finance, healthcare, and logistics, supported by its enterprise-first approach and recurring revenue model [2][8] - UiPath's lower P/S ratio may reflect market caution regarding its path to profitability, but it may also underappreciate the company's strategic positioning and innovation potential for long-term investors [3] Valuation and Competitive Position - UiPath stands out in valuation compared to peers like ServiceNow (NOW), which trades at a forward P/S of 13.85X, and Pegasystems (PEGA), which trades at 4.93X, highlighting UiPath's relative affordability [5][6] - The company's focus on automation-first solutions differentiates it from broader enterprise platforms like ServiceNow and Pegasystems, which incorporate automation as part of a wider offering [6] Growth Momentum - UiPath's shares have increased by 19% over the past three months, although this is below the broader industry's growth of 35% [9] - The Zacks Consensus Estimate for UiPath's earnings has been trending higher over the past 60 days, indicating potential strength ahead [11] - UiPath currently holds a Zacks Rank 1 (Strong Buy), reflecting its strong earnings estimate revisions and valuation [14] Conclusion - UiPath presents a compelling case for investment due to its discounted valuation, robust product offerings, expanding international presence, and strong positioning in the automation market [15][16]

Core Viewpoint - Salesforce is strategically positioning itself at the forefront of the AI shift in the tech industry with its AI-powered Service Cloud, which is reshaping investor perceptions of its long-term potential [1]. Group 1: Financial Projections - Analysts expect Salesforce's Service Cloud to generate $9.7 billion in revenue for fiscal 2026, accounting for 25% of total subscription revenue [2]. - Projected fiscal 2026 sales for Salesforce are $41.2 billion, with an EPS of $11.28 [10]. Group 2: Growth Trends - Growth for Service Cloud slowed slightly to 7% in the first quarter of fiscal 2026, but after adjustments, the normalized rate is closer to 8.5%, indicating only a modest deceleration [2][3]. - The analyst projects growth acceleration to 9% in the coming quarters, trending toward 12% in the long run [3]. Group 3: Competitive Advantage - Service Cloud's growth potential is projected at 21%, significantly ahead of the next closest competitor at 7%, attributed to its user-friendly interface and deep customization [4]. - The Agentforce AI suite is becoming a central growth lever, with over 8,000 customers signed up, and more than half converting to paying accounts [6]. Group 4: Product Offerings and Strategy - Add-ons like Service Cloud Voice and Digital Engagement represent durable upsell opportunities that support a bullish outlook [5]. - Salesforce's pricing tiers range from $25/month to $550/month, facilitating broad adoption across various business sizes [8]. - The go-to-market strategy integrates Agentforce into the existing customer base, allowing for easy cross-sell and bundled offerings [9].

Group 1: Eledon Pharmaceuticals, Inc. (ELDN) - Eledon Pharmaceuticals is a clinical stage biotechnology company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 23.8% over the last 60 days [1] - Eledon's shares gained 22.2% over the past month, outperforming the S&P 500's advance of 3.8% [1] - The company has a Momentum Score of A [1] Group 2: KDDI Corporation (KDDIY) - KDDI Corporation is a Japanese telecommunications services company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 39.7% over the last 60 days [2] - KDDI's shares gained 5.9% over the last six months, slightly outperforming the S&P 500's advance of 5.2% [2] - The company has a Momentum Score of B [2] Group 3: Penguin Solutions, Inc. (PENG) - Penguin Solutions is a designer and developer of enterprise solutions with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings increased by 14.2% over the last 60 days [3] - Penguin's shares gained 41.2% over the last three months, significantly outperforming the S&P 500's advance of 16% [3] - The company has a Momentum Score of A [3]