Financial Data and Key Metrics Changes - The company is focusing on AI-driven growth strategies to enhance customer experiences and operational efficiency, indicating a shift in financial performance metrics towards technology integration [11][12][20] - The management anticipates that the integration of AI will lead to transformative experiences in commerce, which could positively impact revenue growth in the coming years [19][48] Business Line Data and Key Metrics Changes - The company is leveraging AI across various business lines, including e-commerce, supply chain, and in-store operations, to improve efficiency and customer service [72][73] - AI tools are being used to optimize inventory management and enhance the shopping experience, which may lead to improved sales metrics [73][74] Market Data and Key Metrics Changes - The company is positioning itself to capture customer journeys that begin outside traditional shopping contexts, such as through AI platforms like ChatGPT and Gemini, which could expand market reach [26][46] - The integration of AI in customer interactions is expected to enhance customer acquisition and retention, potentially increasing market share [22][46] Company Strategy and Development Direction - The company is committed to being at the forefront of AI technology, viewing it as a critical tool for enhancing customer experiences and operational capabilities [20][22] - The strategy includes partnerships with leading AI firms to create a seamless shopping experience that integrates AI recommendations with Walmart's offerings [25][27] Management's Comments on Operating Environment and Future Outlook - Management believes that the current environment presents significant opportunities for growth through AI, emphasizing the importance of understanding customer needs [16][22] - The company is optimistic about the future, expecting gradual but significant changes in customer interactions and shopping experiences due to AI advancements [19][80] Other Important Information - The company is focused on maintaining customer trust and affordability as core values, which are essential for success in an agentic shopping environment [39][40] - The use of AI is not limited to customer-facing applications; it is also being utilized internally to enhance supply chain efficiency and associate productivity [72][73] Q&A Session Summary Question: How does the company view the risk of being too far ahead in AI technology? - Management believes the risk of not being at the forefront is greater than the risk of experimenting with new technologies, as it is essential to meet evolving customer needs [20][22] Question: What are the differences between partnerships with OpenAI and Gemini? - The company aims to create a unified shopping journey by integrating its AI capabilities with those of OpenAI and Gemini, enhancing customer experiences across platforms [25][27] Question: How does the company ensure it meets customer needs in an AI-driven environment? - The company focuses on understanding customer preferences and behaviors to tailor AI recommendations, ensuring that the technology serves practical customer needs [40][42] Question: What is the expected impact of AI on pricing and customer purchasing behavior? - Management acknowledges that while some customers are price-sensitive, others prioritize convenience and quality, and AI will help personalize offers accordingly [40][41] Question: How does the company plan to evolve its app and in-store experiences with AI? - The company envisions a future where AI enhances both online and in-store shopping experiences, making them more personalized and efficient [56][60]

Financial Data and Key Metrics Changes - The company has maintained a strong profit growth trajectory, achieving a 10% EBITDA and 20% EPS compound annual growth rates despite industry-related top-line pressures [10][12][52] - The company is focused on controlling costs and driving productivity, which has allowed it to offset rising expenses while continuing to invest in the business [12][18] Business Line Data and Key Metrics Changes - The company has seen consistent market share gains in independent restaurants for 18 consecutive quarters, indicating strong performance in this segment [35] - The Pronto initiative is expected to significantly contribute to revenue growth, with projections raised to $1.5 billion over the midterm from $1 billion [39] Market Data and Key Metrics Changes - The consumer backdrop remains stable, with expectations for a stronger consumer environment in 2026 due to potential tax refunds and lower interest rates [5][6] - Independent restaurants have been outperforming chain restaurants, a trend that is expected to continue [9] Company Strategy and Development Direction - The company is focused on three core customer types: independent restaurants, healthcare, and hospitality, which are the fastest-growing and most profitable segments [16] - The company is actively pursuing tuck-in M&A opportunities to enhance local market scale and improve delivery efficiency [22][23] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future, citing strong momentum and a clear focus on profitable segments [51][52] - The company is confident in its ability to sustain improvements in EBITDA margins and overall earnings through process improvements and technology enablements [48] Other Important Information - The company is transitioning to a 100% commission compensation model, which is expected to align incentives and enhance sales effectiveness [24][30] - The company has not experienced increased turnover during the pilot phase of the new compensation model, indicating positive reception among the sales force [28][34] Q&A Session Summary Question: How is the company viewing the health of the consumer? - Management believes the consumer backdrop is stable, with hopes for improvement in 2026 due to lower interest rates and potential stimulus [5] Question: What is the company's strategy regarding M&A? - The company is focused on tuck-in acquisitions that align with its existing strategy, while remaining open to larger opportunities if they make sense [22] Question: How does the company plan to balance new account growth and penetration growth? - The company is actively working on both fronts, with a focus on minimizing lost business and generating new accounts [36] Question: What are the key initiatives driving margin improvements? - Strategic Vendor Management is highlighted as a significant initiative, along with other technology and process improvements [47]

Financial Data and Key Metrics Changes - The company has maintained a stable consumer backdrop despite pressures over the past few years, with a focus on market share growth and productivity improvements [3][4] - The company is optimistic about potential tailwinds for 2026, including higher tax refunds and stimulus, which could strengthen consumer sentiment [5] - The company has sustained strong profit growth with a 10% EBITDA and 20% EPS compound annual growth rates (CAGRs) despite industry-related top-line pressures [10][12] Business Line Data and Key Metrics Changes - The company has seen a long-term trend of independent restaurants outperforming chain restaurants, with expectations that this will continue into 2026 [9] - The company has achieved 18 consecutive quarters of market share gains, focusing on new account generation and minimizing lost business [35] Market Data and Key Metrics Changes - The company has noted that the restaurant space remains resilient, with foot traffic holding up better than other consumer sentiment industries [7] - The healthcare segment has shown continuous growth, with the company taking market share and improving margins in this complex category [43][44] Company Strategy and Development Direction - The company is focused on three core customer types: independent restaurants, healthcare, and hospitality, which are the fastest-growing and most profitable segments [16] - The company is investing heavily in its Pronto initiative, aiming for significant revenue growth and expanding its market reach [39][40] - The company is transitioning to a 100% commission compensation model to align incentives and improve sales effectiveness [24][30] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the future, citing strong momentum and a clear business model focused on profitable segments [51][52] - The company is confident in its ability to continue improving EBITDA margins and overall earnings through process improvements and technology enablements [48] Other Important Information - The company explored a merger with Performance Food Group but decided against it due to concerns over regulatory environment and shareholder returns [19][20] - The company remains focused on tuck-in M&A opportunities to enhance local market scale and delivery efficiency [21][23] Q&A Session Summary Question: How is the company viewing the health of the consumer today? - Management noted that the consumer has been under pressure for the past few years but remains stable, with hopes for improvement in 2026 due to potential economic tailwinds [3][5] Question: What is the company's strategy regarding independent restaurants versus chain restaurants? - Management believes independent restaurants will continue to outperform chains due to their loyal customer base and unique dining experiences [9] Question: How does the company plan to sustain profit growth despite industry pressures? - Management emphasized effective execution and control over factors within their influence, such as market share and productivity [11][12] Question: What are the key initiatives driving margin improvements? - Management highlighted Strategic Vendor Management and technology enhancements as significant contributors to sustainable improvement [47][48] Question: What is the rationale behind the shift to a 100% commission model? - Management explained that the timing is right for this change, as the company has built momentum and is focused on aligning incentives for sales effectiveness [24][30]

Financial Data and Key Metrics Changes - The company has maintained a stable consumer backdrop despite pressures over the past few years, with a focus on market share growth and productivity improvements [3][4] - The company is optimistic about potential tailwinds in 2026, including higher tax refunds and stimulus, which could strengthen consumer sentiment [5] - The company has sustained strong profit growth with a 10% EBITDA and 20% EPS CAGR, attributed to effective execution and control of controllables [10][11] Business Line Data and Key Metrics Changes - The company has seen a long-term trend of independent restaurants outperforming chain restaurants, with expectations for this trend to continue [9] - The company has achieved 18 consecutive quarters of market share gains, focusing on new account generation and minimizing lost business [35] Market Data and Key Metrics Changes - The company is focused on three core customer types: independent restaurants, healthcare, and hospitality, which are the fastest-growing and most profitable segments [15][16] - The company has been investing heavily in its Pronto initiative, projecting revenue growth from $1 billion to $1.5 billion over the midterm [38] Company Strategy and Development Direction - The company is committed to a 100% commission compensation model to align incentives and enhance sales effectiveness [24][30] - The company is focused on tuck-in M&A opportunities to scale in local markets and improve delivery efficiency [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of profit growth and the ability to improve EBITDA margins over the long term through process improvements and technology [46][47] - The company is excited about its future, emphasizing its unique position as a pure play food service distributor with a simple business model [50][51] Other Important Information - The company has not seen increased turnover since implementing pilot programs for the new compensation model, indicating positive reception among sales staff [28][34] - The company is actively exploring opportunities in the specialty business, leveraging its distribution capabilities to serve a broader array of customers [41] Q&A Session Summary Question: How does the company view the health of the consumer today? - Management noted that the consumer has been under pressure for the past few years but remains stable, with hopes for improvement in 2026 due to potential economic tailwinds [3][5] Question: What is the company's strategy regarding M&A? - The company is focused on tuck-in acquisitions to enhance local market scale, while remaining open to larger opportunities if they align with strategic goals [22][23] Question: How does the company plan to balance new account growth and penetration growth? - Management emphasized the importance of both new account generation and minimizing lost business, with recent success in net new account growth [36]

Financial Data and Key Metrics Changes - The company reported significant changes in its financial metrics, including the election of directors and the ratification of its independent accounting firm, PricewaterhouseCoopers LLP, for the fiscal year ending July 31, 2026 [8][16] - The compensation of named executive officers was approved, indicating a focus on aligning executive pay with company performance [16] Business Line Data and Key Metrics Changes - Specific business line performance metrics were not detailed in the provided content, focusing instead on governance and shareholder proposals [10][12] Market Data and Key Metrics Changes - No specific market data or key metrics changes were mentioned in the provided content [10][12] Company Strategy and Development Direction and Industry Competition - The company is facing pressure regarding its governance structure, particularly the classified board system, which has been criticized for limiting shareholder accountability [10][12] - The proposal for annual elections of directors was presented as a means to enhance governance and align with industry best practices, reflecting a strategic shift towards greater accountability [10][13] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting, focusing instead on governance issues and shareholder proposals [10][12] Other Important Information - The company has a classified board structure, which has been criticized for reducing accountability and responsiveness, with a call for modernization to improve governance practices [10][12] - The meeting included a proposal for shareholders to have more power in electing directors, which was opposed by the board [14][16] Q&A Session All Questions and Answers Question: Proposal for annual elections of directors - The proposal was presented by a shareholder urging for accountability and modernization of governance practices, highlighting concerns about the current classified board structure [10][12] - The board unanimously recommended voting against the proposal, citing reasons outlined in the proxy statement [14]

Financial Data and Key Metrics Changes - The company reported significant changes in its financial metrics, including the election of directors and the ratification of its independent accounting firm, PricewaterhouseCoopers LLP, for the fiscal year ending July 31, 2026 [8][16] - The stockholders approved the compensation of the company's named executive officers and expressed a preference for annual advisory votes on executive compensation [16] Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided in the meeting [1][2] Market Data and Key Metrics Changes - The meeting did not include detailed market data or metrics changes [1][2] Company Strategy and Development Direction and Industry Competition - The company faces governance challenges, as highlighted by a shareholder proposal advocating for annual elections of directors to enhance accountability and align with industry best practices [10][12] - The proposal emphasizes the need for improved governance structures to foster strategic agility and accountability in a competitive market [13] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [1][2] Other Important Information - The company has a classified board structure, which has been criticized for limiting shareholder accountability [10][12] - The meeting included a proposal for declassifying the board, which was opposed by the company's board of directors [14] Q&A Session All Questions and Answers Question: Shareholder proposal for annual elections - The shareholder, James McRitchie, urged support for the proposal to declassify the board, arguing it would enhance accountability and align with governance best practices [10][12] - The company's board unanimously recommended voting against the proposal, citing reasons outlined in the proxy statement [14]

Zscaler (NasdaqGS:ZS) FY 2026 Annual General Meeting January 12, 2026 04:00 PM ET Speaker4Good day, everyone, and welcome to the Zscaler, Inc. annual meeting. At this time, I'd like to turn the floor over to Jay Chaudhry. Sir, please go ahead.Speaker1Good afternoon. I'm Jay Chaudhry, founder, CEO, and chairman of the board of directors of Zscaler, Inc., and it's a pleasure to welcome you to Zscaler's annual meeting of stockholders. The meeting is now called to order. I will act as the chairperson of this me ...

Financial Data and Key Metrics Changes - For 2025, the company expects revenue to be a little over $1.1 billion and Adjusted EBITDA to be $150 million, with solid growth anticipated for 2026 [4] - Monthly active users in North America increased by 34% in Q3, with a notable 46% increase in markets with online casino offerings [8][9] - The cost to acquire players has decreased, contributing to record numbers of first-time depositors in Q2 and Q3 [6][8] Business Line Data and Key Metrics Changes - The revenue mix is approximately 70% from online casino and 30% from online sports [3] - The company has seen significant growth in player count and gross gaming revenue in Colombia, despite previous tax headwinds [18][19] - In Mexico, the company experienced over 100% year-over-year growth, benefiting from the shutdown of competitors [25] Market Data and Key Metrics Changes - North America accounts for about 85% of the company's operations, with 15% in Latin America [3] - In Michigan, the market revenue increased by 18%, while the company's revenue surged by 50% [5] - The company reported strong growth in New Jersey and Ontario, with increases of around 20% [10] Company Strategy and Development Direction - The company focuses on a customer-centric approach, prioritizing online casino over sports betting, which is seen as a long-term growth opportunity as more states legalize online casino [3][4] - The company is exploring new market opportunities, including Alberta and Maine, which have recently legalized online casino [11][12] - The competitive landscape is evolving with the introduction of prediction markets, but the company views it as more of a distraction than a direct threat [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product and technology, which have contributed to attracting and retaining customers [6][34] - The company anticipates continued growth in existing markets, with all online casino markets growing more than 20% annually [14] - The management is optimistic about the potential for new legislation in states like Virginia, New York, and Illinois, which could provide significant opportunities [13] Other Important Information - The company has successfully navigated regulatory challenges in Colombia, with a new tax structure expected to be more favorable for profitability [20][21] - The company has a unique technology approach that enhances user experience, leading to higher average revenue per user compared to competitors [34] Q&A Session Summary Question: How many states do you have licenses in, and how many states provide licenses at this point in time? - The company holds licenses in all competitive states except Connecticut and Rhode Island, with operations in Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia [35] Question: When you open up a new state, how long does it take to break even? - The company has been profitable in the fourth quarter of operation in every online casino market launched in North America, typically recovering investments within six quarters [40]

Financial Data and Key Metrics Changes - For 2025, the company expects revenue to be a little over $1.1 billion and Adjusted EBITDA to be $150 million, with solid growth anticipated for 2026 [4] - Monthly active users in North America increased by 34% in Q3, with a notable 46% year-over-year increase in markets with online casino offerings [8][9] - The cost to acquire players has decreased, contributing to record numbers of first-time depositors in Q2 and Q3 [6][8] Business Line Data and Key Metrics Changes - The revenue mix is approximately 70% from online casino and 30% from online sports [3] - The company has seen significant growth in player count and gross gaming revenue in Colombia, despite previous tax headwinds [18][19] - In Mexico, the company experienced over 100% year-over-year growth, aided by the shutdown of competitors [25] Market Data and Key Metrics Changes - North America accounts for about 85% of the company's operations, with 15% in Latin America [3] - In Michigan, the market revenue increased by 18%, while the company's revenue surged by 50% [5] - The company reported strong growth in New Jersey and Ontario, with increases of around 20% [10] Company Strategy and Development Direction - The company focuses on a customer-centric approach, prioritizing online casino over sports betting, which is seen as a long-term growth opportunity as more states legalize online casino [3][4] - The company is exploring new market opportunities, including Alberta and Maine, which have recently legalized online casino [11][12] - The competitive landscape is evolving with the introduction of prediction markets, but the company views it as more of a distraction than a direct threat [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product and technology, which have contributed to attracting and retaining customers [6][8] - The company anticipates continued growth in existing markets, with all online casino markets growing more than 20% annually [14] - The management is optimistic about the potential for growth in Colombia and Mexico, with plans to increase marketing efforts in these regions [21][30] Other Important Information - The company has a unique approach to technology, focusing on enhancing user experience through promotional games and community engagement, which has resulted in higher average revenue per user compared to competitors [34] - The company has licenses in all competitive states except Connecticut and Rhode Island, with a strong presence in Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia [35] Q&A Session Summary Question: What are the growth opportunities in North America? - The company sees potential in new markets like Alberta and Maine, which have recently legalized online casino [11][12] Question: How does the company view prediction markets? - The company considers prediction markets as more noise than a threat, focusing on its core business instead [15][17] Question: What is the situation in Colombia regarding taxes? - The company faced a 19% tax on deposits in 2025 but has since transitioned to a VAT on revenue, which is more favorable for profitability [18][20] Question: How long does it take to break even in new states? - The company has been profitable in the fourth quarter of operation in every online casino market launched in North America [40]

Financial Data and Key Metrics Changes - For 2025, the company expects revenue to be a little over $1.1 billion and Adjusted EBITDA to be around $150 million, with solid growth anticipated for 2026 [4] - Monthly active users in North America increased by 34% in Q3, with a notable 46% year-over-year growth in markets with online casino offerings [8][9] - The cost to acquire players has decreased, contributing to record numbers of first-time depositors in Q2 and Q3 [6][7] Business Line Data and Key Metrics Changes - The revenue mix is approximately 70% from online casino and 30% from online sports, with a focus on online casino in North America and sports betting in Latin America [3] - The company has outperformed competitors in key markets like Michigan, where revenues were up 50% in October and November [5][10] Market Data and Key Metrics Changes - North America accounts for about 85% of the company's operations, while Latin America makes up 15%, with significant growth opportunities as more states legalize online casino [3] - In Colombia, despite a challenging tax environment, the company has seen growth in player count and gross gaming revenue [17][18] - Mexico has shown over 100% year-over-year growth, benefiting from the shutdown of competitors [24] Company Strategy and Development Direction - The company adopts a customer-focused approach, prioritizing online casino over sports betting and being selective in capital investments to balance growth and profitability [3][4] - New market opportunities are being explored, including Alberta and Maine, which have recently legalized online casino [11][12] - The company is cautious about entering Brazil, waiting to assess the market dynamics before committing resources [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product and technology, highlighting the importance of customer engagement and retention [6][34] - The competitive landscape is evolving, with management viewing prediction markets as more of a distraction than a direct threat [15][16] - The company anticipates continued growth in existing markets, with all online casino markets currently in operation growing more than 20% annually [13] Other Important Information - The company has a unique technology approach that enhances user experience, contributing to higher average revenue per user compared to competitors [34] - The company has been profitable in the fourth quarter of operation in every online casino market launched in North America [40] Q&A Session Summary Question: What are the growth opportunities in new markets? - Management highlighted Alberta and Maine as potential growth catalysts, with Alberta finalizing regulations and Maine recently approving online casino [11][12] Question: How does the company assess competition from prediction markets? - Management views prediction markets as noise, primarily affecting states without legalized sports betting, and does not plan to lead in this area [15][16] Question: What is the impact of the tax situation in Colombia? - The previous 19% tax on deposits was challenging, but a new 19% VAT on revenue is seen as incrementally positive for profitability [19][20] Question: How long does it take to break even in new states? - The company has been profitable in the fourth quarter of operation in every online casino market launched, with investment recovery typically within six quarters [40]