Financial Data and Key Metrics Changes - Revenue for Q3 was $195 million, representing a 29% year-over-year increase [19] - Non-GAAP operating margin reached 13%, an improvement of 870 basis points year-over-year [22] - Non-GAAP gross margin expanded to 74%, a new high, driven by automation and efficiencies [20][21] - Free cash flow was -$11 million, an improvement of 30% compared to Q3 fiscal year 2025 [22] Business Line Data and Key Metrics Changes - Usage revenue increased by 29%, while subscription revenue grew by 26% year-over-year [19] - Gross booking volume reached $2.62 billion, growing 40% year-over-year [19] - Payment volume processed through Navan Cards was $1.13 billion, up 12% year-over-year [20] Market Data and Key Metrics Changes - Revenue from international customers represented 37% of total revenue in Q3 [20] - Customer satisfaction hit a high of 97%, with a Net Promoter Score (NPS) of 45, significantly above the industry average [8] Company Strategy and Development Direction - The company aims to drive sustained high growth across all customer segments, accelerate innovation, and maintain a balance between growth and profitability [15] - Focus on AI-driven solutions to enhance customer experience and operational efficiency [10][12] - Plans to leverage the IPO proceeds to enhance payment solutions and expand customer credit offerings [25] Management's Comments on Operating Environment and Future Outlook - The current business travel environment remains robust, with expectations for continued strength through the fiscal year [19] - Management noted no significant impact from travel disruptions related to the government shutdown, with record performance in October [18] - The company anticipates Q4 to be seasonally lower than Q3, reflecting typical business travel patterns [27] Other Important Information - The company is undergoing a leadership transition with the departure of the CFO, who will assist in a seamless transition [6][16] - The Navan Cognition AI platform is central to the company's strategy, enhancing service quality and operational margins [12][14] Q&A Session Summary Question: What is the outlook for enterprise business and share capture from incumbents? - Management sees strong momentum in enterprise, driven by customer satisfaction, market consolidation, and AI capabilities [33] Question: What drove the strength in gross booking volume and usage yield? - Growth in GBV is attributed to existing customer expansion, ramping of new customers, and strong go-to-market strategies [35] Question: How are large enterprise deals structured and their revenue recognition? - Most enterprise deals involve multiple product attachments at launch, with a stable ramp-up period [44] Question: What is the sustainability of gross margin and yield? - Gross margin sustainability is linked to AI efficiencies, while yield is expected to stabilize around 7% [75] Question: How will the company deploy cash for credit payments? - The deployment of cash for credit will phase in over fiscal year 2027, with expected impacts in 2028 [78] Question: How does the company view the SAP Concur partnership with Amex GBT? - Management views the old model of stitching together services as outdated, emphasizing the need for integrated solutions [89]

Financial Data and Key Metrics Changes - Revenue for Q3 was $195 million, representing a 29% year-over-year increase [19] - Non-GAAP operating margin reached 13%, an improvement of 870 basis points year-over-year [22] - Non-GAAP gross margin expanded to 74%, a new high, driven by automation and efficiencies [20][21] - Free cash flow was negative $11 million, but improved by 30% compared to Q3 fiscal year 2025 [22] Business Line Data and Key Metrics Changes - Usage revenue grew by 29%, while subscription revenue increased by 26% year-over-year [19] - Gross booking volume reached $2.62 billion, growing 40% year-over-year [19] - Payment volume processed through Navan Cards was $1.13 billion, up 12% year-over-year [20] Market Data and Key Metrics Changes - Revenue from international customers represented 37% of total revenue in Q3 [20] - The company operates in a $185 billion addressable market, with strong momentum in enterprise deals [7] Company Strategy and Development Direction - The company aims to drive sustained high growth across all customer segments, accelerate innovation, and maintain a balance between growth and profitability [15] - Focus on AI-driven solutions to enhance customer experience and operational efficiency [10][12] - Plans to develop Navan Edge, an AI-powered travel booking experience [14] Management's Comments on Operating Environment and Future Outlook - The current business travel environment remains robust, with expectations for continued strength through the fiscal year [19] - Management noted no significant impact from travel disruptions related to the government shutdown [18] - The company is committed to being free cash flow positive for the full year of fiscal 2027 [28] Other Important Information - The CFO, Amy Butte, will leave the company on January 9, with Ann Giviskos serving as interim CFO [6] - The company has a strong balance sheet with $809 million in cash and $207 million in debt [25] Q&A Session Summary Question: What is the outlook for enterprise business and capturing market share? - Management sees strong momentum in enterprise, driven by customer satisfaction, market consolidation, and AI capabilities [33] Question: What drove the strength in gross booking volume and usage yield? - Growth in GBV is attributed to existing customer expansion, ramping of new customers, and strong go-to-market strategies [35] Question: Are large enterprise deals complete implementations or partial? - Most enterprise deals involve multiple products at launch, indicating a stable and accelerating ramp [44] Question: How sustainable is the margin leverage seen this quarter? - Margin leverage is driven by AI efficiencies and is expected to be sustainable, though Q4 margins may compress seasonally [46] Question: What is the investment plan for the PLG motion? - Investments began in the second half of fiscal 2026, with revenue contributions expected in fiscal 2028 [52] Question: How does the company factor large deals into guidance? - Guidance incorporates active customers, ramping customers, and expected launches, using machine learning for accuracy [54] Question: Has the IPO impacted visibility and competitive positioning? - The IPO has increased market awareness and credibility, leading to more leads and opportunities [62] Question: What is the strategy for M&A opportunities? - The company is always looking for opportunities, particularly in AI and enhancing its platform, but currently sees better potential in-house development [87]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 was $195 million, representing a 29% year-over-year increase [16] - Non-GAAP operating margin reached 13%, an improvement of nearly 9 percentage points year-over-year [6][18] - Non-GAAP gross margin expanded to 74%, up from the low 60s, marking an all-time high [11][18] - Free cash flow was negative $11 million, an improvement of 30% compared to Q3 fiscal year 2025 [18] Business Line Data and Key Metrics Changes - Usage revenue increased by 29%, while subscription revenue grew by 26% year-over-year [16] - Gross booking volume reached $2.62 billion, growing 40% year-over-year [16] - Payment volume processed through Navan Cards was $1.13 billion, up 12% year-over-year [17] Market Data and Key Metrics Changes - Revenue from international customers represented 37% of total revenue in Q3 [17] - Customer satisfaction hit a high of 97%, with a Net Promoter Score (NPS) of 45, significantly above the industry average [7] Company Strategy and Development Direction - The company aims to drive sustained high growth across all customer segments, accelerate innovation, and maintain a balance between growth and profitability [12][13] - Focus on AI-driven experiences and leveraging data to enhance customer service and operational efficiency [9][12] - The company is positioned as an AI leader in travel and expense management, with a strong emphasis on integrating AI into its platform [10][11] Management's Comments on Operating Environment and Future Outlook - The current business travel environment remains robust, with expectations for continued strength through the fiscal year [15][16] - Management noted no significant impact from travel disruptions related to the government shutdown, with record performance in October [15] - The company anticipates Q4 to be seasonally lower than Q3, reflecting typical business travel patterns [24] Other Important Information - The CFO, Amy Bute, will leave the company on January 9, 2026, with Ann Giviskos serving as interim CFO [5] - The company has a strong balance sheet with $809 million in cash and $207 million in debt, supporting future growth initiatives [22] Q&A Session Summary Question: What is the outlook for enterprise business and share capture from incumbents? - Management sees strong momentum in enterprise, driven by customer satisfaction, market consolidation, and AI capabilities [27] Question: What drove the strength in gross booking volume and usage yield? - Growth in GBV is attributed to existing customer retention, ramping new customers, and new customer acquisition [29] Question: Are large enterprise deals complete implementations or partial? - Most enterprise deals involve multiple products at launch, indicating a stable and accelerating ramp-up [32] Question: How sustainable is the margin leverage seen this quarter? - Margin leverage is driven by efficiencies from AI support and is expected to be sustainable, though Q4 margins may compress seasonally [33] Question: What is the investment plan for PLG motion and expected revenue contribution? - Investments in Navan Edge and AI will continue, with expected revenue contributions more visible in fiscal year 2028 [36] Question: How does the company factor large deals into guidance? - Guidance incorporates active customers, ramping customers, and expected launches, using machine learning for forecasting [38] Question: Has the IPO impacted visibility and competitive positioning? - The IPO has increased market awareness and credibility, leading to more leads and reduced questions from potential clients [41] Question: What is the strategy for M&A opportunities? - The company is always looking for opportunities but currently believes in developing in-house capabilities, particularly in AI [52]

Navan, Inc. (NASDAQ:NAVN) stock climbed Friday as investors positioned ahead of the company’s upcoming quarterly earnings.The move reflects expectations that steady business travel demand, expanding expense-management subscriptions, and early traction in its AI-driven platform could support near-term revenue momentum.Navan will report its third-quarter fiscal 2026 financial results after the U.S. financial markets close on Monday, December 15, 2025.Also Read: Coinbase Reportedly To Rival Polymarket, Kalshi ...

Core Viewpoint - Navan Inc. is viewed as undervalued by analysts following its recent IPO and subsequent decline, with a consensus "buy" rating from twelve institutions and an average 12-month target price of $25.33, indicating a potential upside of 69% from its last closing price [1] Group 1: Analyst Ratings and Market Position - Twelve institutions have initiated coverage on Navan, all giving a "buy" rating, highlighting the company's innovative approach in the corporate travel sector [1] - Citigroup's analyst team describes Navan as an "innovator and disruptor" in corporate travel, emphasizing its cloud-native architecture and AI-driven methods as significant advantages over traditional competitors [1][2] - Mizuho Securities believes Navan is well-positioned to disrupt the fragmented corporate travel ecosystem dominated by companies like Amex GBT and SAP Concur, projecting a compound annual revenue growth rate of over 25% through 2028 [2] Group 2: Financial Performance and Growth Potential - Navan's revenue based on usage accounts for less than 1% of its total addressable market of approximately $1.85 trillion, with the corporate travel segment alone valued at $86 billion [2] - Analysts predict that Navan's proprietary platform, Navan Cloud, will enable it to capture market share in both managed and unmanaged travel sectors, with a target price of $26 from Citigroup [2] - The AI-driven operating system, Navan Cognition, has significantly contributed to profit margin expansion, with its AI assistant Ava handling over 50% of customer service requests, leading to a 10 percentage point improvement in gross margins over the past two years [3] Group 3: Current Challenges and Investor Sentiment - Despite the optimistic outlook, Navan reported a net loss of $99.9 million for the six months ending July 31, which is an increase from a $92.5 million loss in the same period last year, although revenue has grown [3] - Concerns have been raised regarding Navan's near-term profit margins, particularly the high sales and marketing costs relative to revenue, but analysts maintain that the company's customer acquisition productivity and profitability per customer remain robust [4]

Group 1 - Navan plans to raise up to $960 million through an IPO in the U.S., with a proposed share price range of $24 to $26 [1] - The IPO will consist of 30 million newly issued shares and 6.9 million shares sold by existing shareholders, including CEO Ariel Cohen and CTO Ilan Twig [1] - The company intends to list on NASDAQ under the ticker symbol "NAVN" [1] Group 2 - Navan, formerly known as TripActions, offers a business travel and expense management platform with proprietary systems like Navan Cloud and Navan Cognition [2] - As of January 31, 2025, Navan has over 10,000 active customers [2] - For the six months ending July 31, the company reported revenue of $329.4 million and a net loss of $99.9 million, compared to $253.7 million in revenue and a net loss of $92.5 million in the same period the previous year [2]

Core Viewpoint - Navan, a company providing business travel and expense management software, has filed for an IPO with the potential to raise up to $800 million [1] Company Overview - Navan, formerly known as TripActions, offers a platform for business travel and expense management [1] - The company's proprietary systems include Navan Cloud for global travel inventory, Navan Cognition for AI-supported booking and expense processing, and a virtual agent named Ava for customer interactions [1] - As of January 31, 2025, Navan has over 10,000 active customers [1] Financial Performance - For the 12 months ending July 31, 2025, the company reported revenue of $613 million [1] IPO Details - Navan plans to list on NASDAQ under the ticker symbol NAVN [1] - The company submitted its IPO application confidentially on June 20, 2025 [1] - A group of underwriters including Goldman Sachs, Citigroup, Jefferies, Mizuho Securities, Morgan Stanley, and others are involved in the transaction [1] - Pricing terms for the IPO have not been disclosed [1]