Release Date: March 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
Negative Points
Q & A Highlights
Q : Can you unpack the assumptions in the guidance, particularly regarding NRR and AI contributions? Also, how do you define success in terms of efficiency improvements over the next few years? A : (Sonalee Parekh, CFO) The guidance accounts for a 2% impact from the leap year and FX. ARR growth is expected to outpace revenue growth. Regarding AI Studio, it's a high beta opportunity with potential for significant impact, but we're guiding modestly until we have more data. For efficiency, we're targeting a 1,000-basis-point improvement in non-GAAP operating margin this year, with continued improvement expected.
Q : Can you elaborate on the strategy of aligning price to value and its impact on fiscal year '26 guidance? A : (Dustin Moskovitz, CEO) Pricing and packaging are about aligning price to value, considering regional and macro dynamics. The macro environment has increased the importance of getting these details right. We're testing various strategies to ensure everything is accretive, aiming to accelerate growth by better aligning price to value.
Q : Is there a shift in strategy towards new business acquisition over focusing on existing customers? A : (Dustin Moskovitz, CEO) It's not a shift but a reflection of the current dynamics. Non-tech verticals are performing better, and new business is growing faster than overall growth. We're focusing on areas with strong performance, including verticals and channel business, while expecting AI Studio to drive future expansion.
Q : What are the new elements in the channel strategy for FY26, and how will success be measured? A : (Anne Raimondi, COO) We're underpenetrated in the channel, which is a small percentage of revenue but has high potential. We're expanding partner enablement, particularly for AI Studio, and reallocating resources to channel strategies. Success will be measured by increased channel-sourced revenue and stronger partnerships.
Q : Can you provide more color on the macroeconomic assumptions in the guidance? A : (Sonalee Parekh, CFO) The guidance assumes no significant change in the current macroeconomic climate. We're incorporating the soft macro impact seen over the last few quarters, particularly in the tech vertical, but not expecting further degradation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
This article first appeared on GuruFocus .