CANADA - 2025/08/27: In this photo illustration, the McGraw Hill logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesJust a week ago, few investors would have predicted that McGraw Hill (NYSE:MH) — the 137-year-old education publisher once considered a relic of the textbook era — would emerge as one of the market’s hottest momentum stories. However, in a remarkable turn of events, the stock has s ...

Financial Data and Key Metrics Changes - PagerDuty reported revenue of $123 million, representing a 6% year-over-year growth [3][20] - Achieved GAAP profitability for the first time in company history, with a non-GAAP operating margin of 25%, exceeding guidance and showing an 800 basis point year-over-year expansion [3][20] - Annual recurring revenue (ARR) increased to $499 million, reflecting a 5% year-over-year growth [4][20] - Gross margin for Q2 was 86%, at the high end of the target range of 84% to 86% [22] - Cash from operations was $34 million, or 28% of revenue, with free cash flow at $30 million, or 24% of revenue [22] Business Line Data and Key Metrics Changes - New and expansion bookings increased by over 15% sequentially [4] - High-value customer base (spending over $100,000) grew to 868 customers, an increase of 20 customers sequentially and 48 year-over-year [5] - Dollar-based net retention (DBNR) was 102%, down from 104% in Q1, impacted by elevated churn and downgrades [20] Market Data and Key Metrics Changes - International revenue increased by 12% year-over-year, contributing 29% of total revenue [20] - Total paid customers grew to 15,322, adding 75 net new customers in Q2 [21] - Free and paid companies on the platform exceeded 33,000, marking a 13% increase compared to Q2 of the previous year [21] Company Strategy and Development Direction - The company is focusing on a strategic shift towards usage-based pricing models to better align revenue with customer value realization [5][35] - Continued investment in product innovation, including the launch of four new AI agents, which will be released with usage-based pricing models [9][10] - The appointment of a new Chief Revenue Officer aims to accelerate enterprise transformation and improve sales performance [17][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of new and expansion revenue, with strong performance in international markets [34] - The transition to usage-based pricing is expected to enhance customer retention and align monetization with customer value [35][62] - Management anticipates significant incremental ARR growth in the second half of the fiscal year, supported by a maturing enterprise sales motion [20][25] Other Important Information - The company retired $58 million of convertible debt issued in June 2020, enhancing its financial position [23] - PagerDuty was recognized as the AIOps platform of the year in the 2025 AI Breakthrough Awards [16] - The Board expanded the share repurchase program to $200 million, providing flexibility for opportunistic share buybacks [23] Q&A Session Summary Question: What is the outlook for profitability and growth in the IT operations category? - Management noted that new and expansion revenue is showing recovery, with a 15% sequential increase and strong new customer additions [34] Question: What are the priorities for the new Chief Revenue Officer in the upcoming months? - The focus will be on accelerating enterprise transformation, improving sales consistency, and enhancing customer retention [37] Question: How does the company view the quality of its ARR? - The company has shifted towards large, long-term, profitable customers, with over 75% of ARR coming from enterprise companies [47] Question: What is the expected impact of the transition to usage-based pricing? - Management indicated that customers are open to the transition, and early feedback has been positive, with 60% of new products already utilizing this model [58] Question: How is the company addressing the challenges of seat optimization and downgrades? - Management is focused on improving account management and customer success to mitigate downgrades while also seeing growth in platform usage [62]

Core Viewpoint - ElevenLabs has raised $180 million in funding, primarily known for its audio generation capabilities, and is now entering the speech detection market to compete with other players like Gladia, Speechmatics, AssemblyAI, Deepgram, and OpenAI's Whisper model [1][2]. Group 1: Company Overview - ElevenLabs is valued at $3.3 billion and has a large voice library that supports various enterprises in providing speech-to-text services [1]. - The company has launched its first independent speech-to-text model, Scribe, which supports over 99 languages, with more than 25 categorized as having "excellent accuracy" (word error rate below 5%) [1]. Group 2: Model Performance - In benchmark tests, Scribe outperformed Google Gemini 2.0 Flash and Whisper Large V3 across multiple languages [2]. - The model features intelligent speaker separation, providing word-level timestamps for accuracy and automatically marking sound events like audience laughter [3]. Group 3: Pricing and Availability - Scribe is currently priced at $0.40 per hour for transcribing audio, which is competitive, although some competitors offer lower prices with different functionalities [3]. - The model currently supports only pre-recorded audio formats, with plans to release a low-latency real-time version soon [3].