Financial Data and Key Metrics Changes - In Q2 2025, GMV reached $4.8 billion, growing 9% year over year in U.S. Dollars and 14% on an FX neutral basis [26] - Subscription revenue was $57.2 million, a 6% increase in U.S. Dollars and an 11% increase on an FX neutral basis compared to Q2 2024 [26][27] - Non-GAAP income from operations increased by 35% to $8.5 million, resulting in a 14% non-GAAP operating margin, a three percentage points year-over-year margin expansion [30][31] - Free cash flow for the quarter was $7.1 million, up from $3 million in the same quarter last year, resulting in a free cash flow margin of 12% [32] Business Line Data and Key Metrics Changes - Subscription revenue growth was impacted by a mix shift in Brazil towards larger customers with lower implied take rates, affecting revenue growth despite maintaining similar margins [27][28] - Gross profit reached $45.3 million, up 15.2% in FX neutral terms, with a gross margin increase of 3.5 percentage points year over year [8][29] - Non-GAAP subscription gross margin reached 80%, up 180 basis points year over year, driven by gains in customer support efficiency through AI automation [28][29] Market Data and Key Metrics Changes - The U.S. and Europe markets are growing twice as fast as the overall company, indicating strong demand in these regions [5] - Argentina experienced a reversal in GMV growth, falling back to double-digit negative territory in Q2 after initial recovery signs in Q1 [40][59] - Brazil's GMV growth remained stable in the low twenties, but there was a mix shift towards larger enterprise customers, impacting revenue conversion [63] Company Strategy and Development Direction - The company is focusing on B2B commerce and retail media as strategic priorities, introducing new features and partnerships to enhance its platform [9][12][13] - The expansion of partnerships, such as with Whirlpool for the KitchenAid website in the U.S., highlights the company's global competitiveness [5][11] - The company aims to capture significant upside in the years ahead through disciplined growth strategies and investments in under-penetrated areas [9][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market environment, particularly in Argentina and Brazil, but expressed confidence in the company's competitive positioning and global expansion strategy [34][36] - The company is targeting FX neutral year-over-year subscription revenue growth of 6% to 9% for 2025, despite a reduction in revenue guidance due to market conditions [34] - Management emphasized the resilience of the business model and the ability to deliver profitable growth even in complex conditions [43][44] Other Important Information - The company repurchased 800,000 shares at an average price of $4.82 per share as part of its capital allocation strategy [32][33] - The company is set to launch the latest edition of Vitex Vision, showcasing its product roadmap and innovation priorities [11][16] Q&A Session Summary Question: Discussion on the decline in guidance for GMV and new subscriptions sold - Management explained that the decline was primarily due to the GMV performance of existing customers in Argentina and a mix shift in Brazil towards larger customers with lower take rates [39][40] Question: Details on increased margin expectations - Management highlighted that margin improvements are driven by gains in AI support automation and a reduction in sales and marketing expenses, which are flat year over year [43][44] Question: Changes in implementation timelines for larger clients - Management confirmed that there were no significant changes in implementation cycles, and the guidance already accounted for the longer cycles associated with larger enterprise deals [50][51] Question: Competitive landscape in Argentina and Brazil - Management noted that the competitive landscape in Argentina remains stable, and they are embedding expectations for consumption deceleration in Brazil into their guidance [60][63] Question: Impact of market volatility on B2B and retail media strategies - Management stated that the current market conditions reinforce the value proposition of B2B and retail media initiatives, with no major structural changes affecting their strategy [70][71]

Financial Data and Key Metrics Changes - The company reported net bookings of $1,420,000,000 for Q1 2026, significantly exceeding guidance of $1,250,000,000 to $1,300,000,000 [21] - GAAP net revenue increased by 12% to $1,500,000,000, while cost of revenue declined by 1% to $559,000,000 [21] - Recurrent consumer spending grew by 17%, accounting for 83% of net bookings, surpassing the guidance of 7% growth [21] Business Line Data and Key Metrics Changes - The mobile business outperformed expectations, with titles like TuneBlast growing by 22% year over year and Match Factory achieving a 33% increase [7][8] - NBA 2K25 sold over 11,500,000 units, with engagement metrics such as daily active users increasing by 30% [11] - Grand Theft Auto V sold over 215 million units, with new player accounts for GTA Online growing over 50% year over year [11] Market Data and Key Metrics Changes - The company expects net bookings for fiscal 2026 to range from $6,050,000,000 to $6,150,000, reflecting an 8% growth at midpoint [22] - The breakdown of net bookings is projected to be approximately 45% from Zynga, 39% from 2K, and 16% from Rockstar Games [23] Company Strategy and Development Direction - The company is focused on delivering high-quality entertainment experiences and has a robust pipeline of upcoming releases, including The Old Country, NBA 2K26, and Borderlands 4 [13][19] - The strategy emphasizes organic growth while selectively pursuing inorganic opportunities that are strategically sound [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the year ahead, raising the net bookings outlook due to strong first-quarter performance [6] - The company anticipates a modest economic growth environment, with a focus on quality to attract consumers even in challenging macroeconomic conditions [56] Other Important Information - The company announced a multi-year global partnership expansion with the NBA, NBA PA, and WNBA PA, enhancing its sports titles' engagement [12] - The company is committed to supporting Nintendo with additional titles launching throughout the year [12] Q&A Session Summary Question: Insights on NBA 2K's performance - Management highlighted that NBA 2K has sold over 11,500,000 units, with significant engagement growth driven by improved in-game telemetry and consumer preferences [29][30] Question: Advertising revenue trends - Management noted a shift in advertising strategy from hyper-casual to hybrid casual, leading to flat year-over-year advertising revenue [35][36] Question: Mobile growth expectations - Management acknowledged strong Q1 mobile performance but anticipated moderation due to the maturity of some titles [38] Question: Capital allocation strategy - Management outlined three capital allocation priorities: supporting organic growth, selectively pursuing inorganic opportunities, and returning capital to shareholders [41][42] Question: Pricing strategy for Borderlands 4 - Management explained their pricing strategy focuses on delivering value that exceeds consumer expectations, with variable pricing being a long-standing industry practice [46][48] Question: Economic outlook and its impact - Management expressed a cautious but optimistic view on economic growth, emphasizing that quality will drive consumer spending even in tougher times [50][56] Question: Addressable player base versus quality - Management stated that they aim to be present on all platforms where consumers are, without sacrificing quality for a broader player base [60][61]

Financial Data and Key Metrics Changes - North American system-wide sales reached $474 million, up 12% year over year [11][28] - North American quarterly run rate average unit volumes increased by 3% to 659,000 [11][28] - Total members at quarter end stood at 863,000, reflecting an 8% year-over-year increase [11] - Same store sales increased by 1% [11][28] - Consolidated revenue for the quarter was $76.2 million, down 1% from the prior year [28] - Adjusted net income for the second quarter was $14.5 million, or $0.26 per basic share [37] - Adjusted EBITDA was $28.1 million, up 14% compared to the prior year period [37] Business Line Data and Key Metrics Changes - Franchise revenue for the quarter was $45.4 million, up 5% year over year, driven by an 8% increase in actively paying memberships [29] - Equipment revenue declined by 26% year over year to $9.5 million, primarily due to a 39% decrease in global installations [29] - Merchandise revenue was down 8% year over year to $5.6 million [30] - Franchise marketing fund revenue increased by 13% year over year to $9.5 million [31] Market Data and Key Metrics Changes - Club Pilates reached record high utilization, with plans to enhance monetization strategies [17] - Pure Barre is planning major marketing campaigns for its 25th anniversary, anticipating further growth [18] - Yoga Six continues to perform well with new teacher training programs and innovative class offerings [19] - StretchLab is exploring solutions to support franchisees and improve average unit volumes [20] Company Strategy and Development Direction - The company is focusing on strengthening its core brands, including Club Pilates, Pure Barre, Yoga Six, and StretchLab, while divesting from underperforming brands like Cycle Bar and Rumble [12][10] - A new retail partnership with Fit Commerce aims to enhance service and reduce costs, with expected benefits starting in 2026 [14][30] - The company is committed to increasing marketing spend, particularly for Club Pilates and StretchLab, to drive growth [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the company and the fitness industry, highlighting the momentum in boutique fitness [8][9] - The company anticipates a more conservative revenue outlook due to recent brand divestitures and macroeconomic headwinds [39] - Management expects to see improvements in overall portfolio health and a reduction in closure rates with a more focused brand strategy [12] Other Important Information - The company ended the quarter with 3,327 global open studios, with 86 new openings during Q2 [25] - There were 57 global studio closures in the second quarter, with nearly half attributed to Cycle Bar and Rumble [25] - The company has over 1,400 studios in North America and over 1,000 international master franchise obligations [27] Q&A Session Summary Question: What drove the change in same store sales trend? - Management noted that same store sales decreased from 4% in Q1 to 1% in Q2, primarily due to performance in Club Pilates and StretchLab [47][48] Question: What is the status of the 40% backlog behind schedule? - The backlog includes brands like Rumble and Cycle Bar, with some contributions from Club Pilates, StretchLab, and Yoga Six [49][50] Question: What are the plans for pricing at Club Pilates? - Management confirmed intentions to implement pricing and monetization strategies to drive same store sales growth [51] Question: When should we expect the closure rate to stabilize? - Management anticipates the closure rate to trend down to around 5% by the end of 2025, with improvements expected in 2026 [52][53] Question: Can you elaborate on the four items impacting profitability in 2025? - Management discussed the impact of brand divestitures, system-wide sales adjustments, increased marketing spend, and the new CEO's strategic alignment [56][60] Question: What is the outlook for the FDD renewal process? - Management expects to resume license sales in the second half of the year following necessary amendments due to the CEO transition [64][66] Question: What is the strategy for non-core brands like Lindora and BFT? - Management confirmed ongoing evaluation of Lindora while expressing confidence in BFT's international growth [68][69] Question: What is the expected impact of the FitCommerce partnership? - The partnership is expected to provide significant cost savings and cash flow benefits starting in 2026 [95][96]

Financial Data and Key Metrics Changes - The company reported $2.1 million in net product revenue for the first six weeks post-launch, with a cost of sales of $400,000 for 2025 compared to zero in 2024 [25][26] - Non-GAAP adjusted net loss was $41.4 million or $0.63 per share diluted for 2025, compared to a loss of $16.5 million or $0.61 per share diluted for 2024 [27] - The company ended 2025 with cash, cash equivalents, and investments of $164.3 million, bolstered by a $75 million private placement [27][28] Business Line Data and Key Metrics Changes - The FDA approved AvmapKefaxin Jakobak for KRAS mutated recurrent LGSOC, marking a significant milestone for the company [5][6] - The commercial launch of Abnapti Faxinga Copac has shown early traction with $2.1 million in revenue within six weeks [6][11] Market Data and Key Metrics Changes - The company has seen coverage from major insurers in the U.S., representing over 80% of lives, indicating strong market access [10][21] - The initial uptake of the product has been encouraging, with a mix of prescriptions from both academic and community settings [50][51] Company Strategy and Development Direction - The company aims to establish Abnapti Faxinga Copac as the new standard of care for KRAS mutated recurrent LGSOC, fundamentally changing the treatment paradigm [6][8] - Future milestones include advancing clinical programs and maintaining strong momentum in the commercial launch [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product's potential impact on patients with high unmet needs and emphasized the importance of ongoing engagement with healthcare providers [10][22] - The company is optimistic about the second half of the year, expecting to build on early achievements and continue executing its strategic imperatives [16][29] Other Important Information - The company has entered into multiple agreements with specialty distributors and oncology group purchasing organizations to enhance market reach [16][21] - The NCCN committee plans to review the company's submission for broader treatment recommendations in October [20][75] Q&A Session Summary Question: Can you talk about the degree of off-label use currently seen? - Management noted that while they do not promote off-label uses, they have observed utilization in both labeled and wild-type populations, with reimbursement not being an issue to date [34][35] Question: What are the key indicators being tracked for launch performance? - Management indicated that they are monitoring engagement with healthcare providers, patient access, and overall market dynamics to gauge launch momentum [41][45] Question: What is the experience with payers regarding reimbursement? - Management reported that early experiences with payers have been positive, with minimal pushback and effective reimbursement processes in place [56][58] Question: How might the launch curve evolve with the integration of specialty distributors? - Management expects a steady uptick in patient adoption as the full distribution network is established, with ongoing engagement efforts to support this growth [66][77] Question: What is the current size of the sales force and future plans? - The company launched with a focused team of 16 sales representatives and currently has no plans to increase this number [99]

Financial Data and Key Metrics Changes - Group revenue grew 7% or 5% in constant currency to $529 million, with adjusted EBITDA of $107 million or 20% of revenue exceeding expectations [5][23] - Gross booking value (GBV) grew 13% or 10% on a constant currency basis to approximately $1.3 billion [24] - Consolidated adjusted EBITDA margin was 20%, with Viator's adjusted EBITDA margin improving nearly 800 basis points to 12% of revenue [26][29] Business Line Data and Key Metrics Changes - Experiences booked grew 15%, with Viator's adjusted EBITDA more than tripling [14] - The Fork's revenue grew 28% or 22% in constant currency to $54 million, with adjusted EBITDA margin more than doubling year over year [16][30] - Brand TripAdvisor's revenue was $242 million, reflecting a decline of 3%, with adjusted EBITDA of $66 million or 27% of revenue [19][27] Market Data and Key Metrics Changes - North America showed stable volume growth, while Europe experienced accelerating growth [24] - App bookings remained strong, outpacing other channels, contributing to share gain in the segment's total booking mix [26] Company Strategy and Development Direction - The company is focusing on experiences as the fastest-growing category in travel, leveraging its trusted brands and proprietary data [7][10] - There is a strategic shift towards deeper coordination between brands to optimize growth and efficiency [8][26] - AI is being integrated into products to enhance user experience and operational efficiency [11][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds in free traffic affecting Brand TripAdvisor but remains optimistic about growth in experiences [42][66] - The company expects consolidated revenue growth of 4% to 6% in Q3 and maintains a full-year guidance of 5% to 7% revenue growth [35][37] Other Important Information - The company repurchased 2.8 million shares at an average price of $14.22 per share for a total of $40 million [33] - Total cash and cash equivalents were approximately $1.2 billion, with plans to use a portion for share repurchases [33] Q&A Session Summary Question: Comments on free traffic headwinds and stabilization for Brand TripAdvisor - Management acknowledged persistent free traffic headwinds but remains focused on improving operational efficiencies and growth strategies [40][42] Question: Mix between third-party and direct bookings for experiences - The majority of revenue comes from the Viator point of sale, with third-party bookings being profitable and incremental [50][49] Question: Confidence in revenue growth reacceleration in Q4 - Management expressed confidence due to healthy booking volumes and early test results from coordinated efforts between brands [53][54]

Financial Data and Key Metrics Changes - SaaS and license revenue for Q2 2025 grew to $170 million, representing a 9% year-over-year increase [14][15] - Total revenue increased by 8.8% year-over-year to $254.3 million, marking the first quarter with an annual run rate exceeding $1 billion [15][24] - Adjusted EBITDA rose by 13% year-over-year to $48.4 million, while GAAP net income grew by 3.1% to $34.6 million [17][18] - Gross profit increased by 9.4% year-over-year to $166.8 million, with gross margins improving by 40 basis points [15][17] Business Line Data and Key Metrics Changes - The residential business continued to show steady growth, contributing significantly to cash flow [8][9] - Contributions from commercial, international, and energy hub businesses approached 30% of total SaaS revenue, with a combined year-over-year growth rate of around 25% [10][11] - Hardware revenue outperformed expectations, contributing to stronger adjusted EBITDA [8][15] Market Data and Key Metrics Changes - The company remains focused on the North American residential market, where millions of potential subscribers have yet to adopt integrated video solutions [9] - The commercial business is benefiting from increased demand for security solutions, driven by recent events and a shift towards cloud-based technology [11][32] - International markets, particularly Latin America and the Middle East, are experiencing faster growth rates compared to other regions [75] Company Strategy and Development Direction - The company aims to deliver a cloud-based sensor into every property globally, with a focus on expanding into new markets and enhancing safety and security [6][7] - Recent minority investments in channel partners are part of a strategy to strengthen the service provider footprint and enhance long-term growth opportunities [20] - The company is evaluating potential investments to accelerate growth in commercial, international, and energy hub sectors [36] Management's Comments on Operating Environment and Future Outlook - Management does not anticipate significant changes in the macroeconomic environment for the second half of the year, citing the essential nature of security services [53] - The outlook for new home sales remains weak, which could impact subscriber growth and retention rates [55] - The company expects SaaS and license revenue for 2025 to be between $171.4 million and $171.6 million, reflecting confidence in the second half of the year [23][24] Other Important Information - The company implemented a price increase in June to account for a 10% baseline tariff, which may slightly dilute margins but keep gross profit dollars stable [18][19] - The recent change in U.S. tax law allows for immediate deduction of R&D expenses, potentially eliminating nearly $200 million in cash tax payments over the next five years [22] Q&A Session Summary Question: What is driving the sustainability of the commercial, international, and energy hub growth? - Management highlighted secular trends in energy demand, the completion of the commercial platform, and early-stage growth in international markets as key drivers [31][32][33] Question: Are all three business segments growing around 25%? - Management confirmed that the combined growth rate is around 25%, with individual segments varying slightly [35] Question: What is the vision for the next ten years? - The company aims to maintain its mission of a cloud-connected sensor in every property while expanding its revenue diversity and market presence [40][41] Question: What are the retention rates for the quarter? - The retention rate for the consolidated company was approximately 94.1%, with expectations to hover around 93-94% for the second half of the year [60][62] Question: How does the company view the housing market's impact on new account activations? - Management noted that while new home sales have been weak, there is cautious optimism for improvement in the next six months [66][67] Question: Are there plans for general price hikes on SaaS services? - Currently, there are no plans for broad-based service price increases for the second half of the year or next year [72][73]

Financial Data and Key Metrics Changes - For the second quarter, the company reported revenues of $150,000, driven by sales in the industrial verticals [21] - R&D and SG&A expenses for the second quarter were $14.1 million, with cash expenses at $11 million after backing out non-cash charges [21] - Year-over-year, expenses have been reduced by 44%, and the company expects to sustain current spending levels through the rest of the year [21][22] - The company finished the quarter with $91.4 million in cash and cash equivalents, with additional availability under current facilities [23][25] - Average daily trading volume has more than doubled to over 5.2 million shares during the second quarter compared to 2.6 million in the same period in 2024 [26] Business Line Data and Key Metrics Changes - The automotive vertical is expected to be the primary driver for high-volume recurring business, with a focus on cost competitiveness to drive adoption [18] - In the industrial vertical, the company is finalizing several engagements and has introduced an aftermarket product that can be retrofitted into existing forklift fleets [9][10] - The defense vertical presents significant opportunities, with plans to demonstrate an autonomous swarming drone system in the first half of next year [12][13] Market Data and Key Metrics Changes - Increased trading activity and institutional interest in LiDAR and automotive technology have been noted, with blue-chip institutions focusing on these sectors [15][16] - The company is well-positioned with its manufacturing partner in France, minimizing exposure to China-based manufacturing amid dynamic global tariffs [18][19] Company Strategy and Development Direction - The company aims to accelerate the global adoption of autonomous technologies across automotive, industrial, and military segments [14] - The go-to-market strategy focuses on OEMs with mass market product plans, emphasizing scalable and cost-competitive LiDAR products [8] - Partnerships with established prime defense contractors are targeted to enhance revenue growth in the defense sector [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the engagement with automotive OEMs and the potential for increased revenue from industrial and defense sectors [6][15] - The company is focused on developing advanced LiDAR sensors and sensor fusion technology to deliver actionable perception software [13][19] - Management highlighted the importance of cost competitiveness in driving higher LiDAR adoption among OEMs [18] Other Important Information - The company has raised approximately $35 million net from the ATM during the second quarter, bolstering its balance sheet [23][25] - The recent investment commitment of over $90 million from a single investor has significantly increased trading activity and visibility among institutional investors [26][27] Q&A Session Summary Question: Can you expand on specific use cases or customer types showing traction in the industrial pipeline? - The company is targeting AGV AMRs in logistics, focusing on higher safety levels and retrofittable solutions to existing installations [31][32] - Revenue is expected to materialize in the second half of this year and continue into 2026 [35] Question: Are there any specific programs or agencies in the defense vertical that you are aiming to engage with? - The company is actively working on partnerships and expects to demonstrate drone technology in the first half of next year [36][38] Question: How do you plan to compete with existing players in the industrial sector? - The company competes on technology, offering silicon-based sensors that provide a cost advantage and are designed for harsh environments [59][60] - The full software stack accompanying the sensors allows for tailored solutions to OEM needs, enhancing competitive positioning [62] Question: What is the status of the industrial OEM evaluating your technology? - There is no delay in decision-making; customers are in various levels of evaluation regarding integration into their systems [54][56] Question: What happened to the seven RFQs mentioned previously? - The RFQs are being reformulated by OEMs, and the quality of these RFQs has improved, indicating potential for real programs and revenue [80][84]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported product sales of $9.6 million, representing a 9% year-over-year increase and a 4% increase on a constant currency basis compared to the same period last year [8][28] - Gross margin performance remained solid at approximately 71% [9][29] - The operating loss for Q2 was approximately $3.6 million, flat year-over-year, with a net income of $1.9 million compared to a net loss of $4.3 million in the prior year [30][31] Business Line Data and Key Metrics Changes - The German commercial team saw a 22% year-over-year growth, contributing to overall positive performance [8][28] - Distributor sales were among the best ever, second only to a record second quarter last year [9][28] Market Data and Key Metrics Changes - CytoSorb, the flagship product, has been utilized in nearly 300,000 devices across more than 70 countries, driving significant sales [6] - The company is navigating the regulatory process for DrugSorb ATR, with final decisions expected this year [6][18] Company Strategy and Development Direction - The company aims to drive its core business towards near breakeven by the end of 2025 while preparing for the North American commercial launch of DrugSorb ATR [8][32] - The strategic realignment of the German commercial team is expected to lead to stronger execution and improved performance [9][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the appeals process for DrugSorb ATR, highlighting the strengths of their application and external expert support [39][40] - The company remains optimistic about final regulatory decisions from both the FDA and Health Canada, expected before the end of 2025 [17][18] Other Important Information - The company is actively preparing for a potential North American commercial launch of DrugSorb ATR later this year and into 2026 [32][34] - September is designated as Sepsis Awareness Month, with the company participating in initiatives to highlight the treatment of sepsis and septic shock [21][22] Q&A Session Summary Question: Can you provide more confidence regarding the regulatory submissions? - Management highlighted the positive aspects of the appeals process and the support from external cardiac surgery experts, expressing hope for a favorable FDA response soon [39] Question: Update on Germany's performance and organizational changes? - Management noted a 22% increase in the second quarter and emphasized that the reorganization is a work in progress aimed at improving efficiency [41][43] Question: Clarification on the reconsideration request in Canada? - The company clarified that the request for reconsideration is part of a formal appeals process similar to that with the FDA [48] Question: What is the rollout strategy for DrugSorb ATR in the U.S.? - The rollout will be purposeful, focusing on clinical accounts that participated in the study and a few others, with an emphasis on understanding the pace of adoption [50] Question: How does the sepsis and septic shock data affect the business model? - Management indicated that sepsis and septic shock are core applications for CytoSorb, accounting for a significant portion of critical care revenue, and emphasized the need for effective treatment strategies [51][52] Question: Expectations for gross margins in Q3 and Q4? - Management expressed that while gross margins have been stable, there are opportunities to improve efficiencies and potentially increase margins with the approval of DrugSorb ATR [55]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated $16 million in net revenue, representing a 99% increase compared to Q2 2024 [5] - Approximately 20,200 doses of Furosex were filled, marking a 117% increase over Q2 2024 and a 45% increase over Q1 2025 [6] - The gross to net discount for Furosex in Q2 2025 was approximately 27%, with an anticipated increase to around 30% in Q3 2025 [15][16] - The company ended Q2 2025 with $40.8 million in cash and cash equivalents, down from $75.5 million at the end of 2024 [16] Business Line Data and Key Metrics Changes - The majority of the increase in doses shipped came from cardiology, while nephrology had just started to contribute [6] - The company launched Feroxix into nephrology in late April 2025, with a faster uptake observed compared to the cardiology launch [7] - The number of unique prescribers reached approximately 4,700, with expectations for steady growth as the company expands further into nephrology [12] Market Data and Key Metrics Changes - The growing number of Part D patients reaching their out-of-pocket maximums positively impacted Q2 performance [8] - The company anticipates continued growth in the IDN business segment, which has been performing above internal expectations [9][14] Company Strategy and Development Direction - The company remains optimistic about Furosex's future, particularly with the expanded CKD indication, favorable Part D dynamics, and the launch of the auto injector [11] - The proposed ambulatory specialty model by CMS is expected to enhance the management of heart failure and could provide a significant tailwind for Furosex [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing commercialization and marketing of Furosex, highlighting key growth drivers such as nephrology uptake and IDN business advancements [6][9] - The company is focused on reaching profitability and is evaluating impacts of tariffs, FX fluctuations, and increased COGS [34] Other Important Information - The company is on track for the submission of its sNDA for the auto injector in the current quarter, which is expected to significantly reduce COGS [10] Q&A Session Summary Question: Can you talk about the growth in cardiology and Class IV heart failure patients? - Management noted that fill rates increased in Q2 and anticipate continued growth in Q3 and Q4, driven by lower co-pays [21][22] Question: What are the early learnings from the CKD launch? - The nephrology launch is progressing well, with faster adoption rates compared to cardiology, and nephrologists tend to write larger prescriptions [25][33] Question: Can you provide details on the CKD launch trajectory and cash runway? - The majority of doses shipped in Q2 were for heart failure, with nephrology expected to have a meaningful impact starting in Q3. The company has access to additional capital if needed [31][34] Question: What is the timeline for the ASM program and its implementation? - The ASM program is anticipated to roll out in January 2027, with data collection starting then and implementation affecting payments in 2028 [37][39] Question: How has the Medicare Part D redesign impacted the business? - The redesign has shifted from a headwind to a tailwind, contributing to significant growth in new prescriptions written [42][44]

Financial Data and Key Metrics Changes - Total revenues for Q2 were $102,000,000, up 31% year over year, exceeding guidance [23] - SaaS revenue for Q2 was $77,300,000, representing a year-over-year growth of 44% [23] - Gross profit for Q2 was $76,300,000, with a gross margin of 74.8%, down from 76.2% a year ago [32] - Operating income for Q2 was $18,800,000, with an operating margin of 18.4%, marking a year-over-year margin expansion of over 700 basis points [33] Business Line Data and Key Metrics Changes - SaaS comprised 76% of total Q2 revenues, the highest quarterly mix ever, compared to 69% a year ago [23] - Term license and support revenue declined 19% year over year in Q2 [24] - Services revenue was $14,500,000, accounting for 14% of total Q2 revenues [26] Market Data and Key Metrics Changes - In North America, SaaS revenues grew 38% year over year, representing 82% of total North America revenues [26] - In EMEA, SaaS revenues grew 50% year over year, representing 91% of total EMEA revenues [26] - In APAC, SaaS revenues grew 48% year over year, representing 52% of total APAC revenues [27] Company Strategy and Development Direction - The company aims to reach $1,000,000,000 in ARR by 2029, reflecting confidence in market opportunities [6] - The platform is built around a unified framework with three core pillars: data availability, security, and governance [8] - The company is focusing on multi-cloud governance and expanding capabilities to support platforms like Google Workspace and Salesforce [62] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across all customer segments and regions, with healthy growth in North America, EMEA, and APAC [44] - The company is increasing guidance for total ARR, total revenue, and non-GAAP operating income due to positive momentum [36] - Management expressed confidence in navigating potential uncertainties in the public sector for the second half of the year [36] Other Important Information - The company ended Q2 with $430,100,000 in cash and short-term investments [34] - The balance of remaining warrants was exercised in July for additional cash proceeds of $8,700,000 [35] - The company repurchased 414,000 shares in Q2 for approximately $7,000,000 [35] Q&A Session Summary Question: Can you talk about macro for commercial and the government vertical? - Management indicated no significant changes in federal guidance and noted healthy demand across commercial sectors [40][42] Question: Can you discuss your go-to-market investments? - Management highlighted improvements in sales efficiency and a focus on capacity planning for future growth [45][46] Question: What is the biggest theme driving customer conversations today? - The primary focus remains on security threats and AI deployment capabilities [51][52] Question: Can you explain the discrepancy in ARR and revenue guidance? - Management clarified that while ARR guidance remained unchanged, revenue guidance was increased due to operational performance and FX headwinds [54][56] Question: How early are you in the multi-cloud governance opportunity? - The company is in early stages but has already generated meaningful revenue in multi-cloud services [62][63] Question: What is driving the increase in dollar-based net revenue retention rate? - The increase is attributed to strong cross-selling and expansion within the existing customer base [78][80]