Clark Jeffries

Moore said broader international expansion would be a distraction given domestic runway, without addressing sales motion.

Moore said no vertical shows structural resistance now and declined the idea of the state team taking over court flips.

Brian confirmed maintenance raise primarily FTR. Flip expectations unchanged. FTR SaaS transition pace driven by complex client-specific factors (hardware cycles, cybersecurity concerns, IT road maps) not contract lengths.

Brian explained Texas wound down gradually starting early 2025, extended past August as new provider wasn't ready. Full-year Texas was ~$36M, about $4M below Q3 expectations. Merchant fees growing as more payments move to gross model.

Lynn explained two parallel motions: version consolidation and cloud version migration. Significant progress made on ERP version consolidation enabling subsequent cloud flips.

Lynn acknowledged exceeding targets but said not ready to adjust 2030 goals yet. Brian noted pull-ahead in cash flow margins from effective working capital management.

Jason attributed the compression to Neptune ingot costs and consumables mix, with better comps and pricing offset expected in H2.

Jason explained AS margin accretion is CentralReach with cloud-native platform and strong incrementals despite 20% R&D spend. Network margins dragged by Convoy (technology investment) and SubSplash (lower margin but faster growing). Convoy drag should turn to tailwind in out years.

Jason disclosed $1B maintenance base converting at 2-2.5x to SaaS over 5-10 years, adding 50-100bps growth per year. About 2/3 of products cloud-enabled, first or second inning of journey. Neil added AI features in cloud may accelerate timeline from 8-10 years to 4-6 years.

Neil explained OB3 is heavy on defense and DHS which have >50% contractor spend ratio, definitely a tailwind for Deltek customers. Civilian programs have lower contractor percentage. Reminded that Deltek has indirect exposure through federal contractors, not direct government.

Neil declined to set a deployment target against the $6B capacity. Emphasized discipline over quota. Jason said market ripe for more assets to become available as LP pressure on PE mounts. Neil added 60% of bolt-on pipeline is proprietary or founder-driven, completely new motion from 3 years ago.

Devgan said the record foundry IP deal was driven by a new 2-nanometer node and broader IP content portfolio. Clarified it was not Intel.

Anirudh said system companies now 45% of business. Custom silicon trend accelerating, all big hyperscalers projecting 2x AI compute demand annually. Pricing discipline maintained, profitability similar despite broader portfolio.

John Wall confirmed $140M cash tax benefit for remainder of FY2025 from OBBBA R&D expensing. No change to non-GAAP 16.5% tax rate or R&D strategy.

Phil described it as exiting the product this year with a bigger second-half impact, then ramping the replacement into 2027 at higher margin.

Phil attributed Q1 Field Systems margin softness to CONEXPO trade show costs and FedRAMP certification investment. Guiding to 31% OI for rest of year, showing improvement from Q1's 28.8%.

Phil confirmed the 3pp difference between reported and organic AECO ARR was entirely FX benefit from weaker dollar.

Barua emphasized ramp deals are committed and contracted, not tentative. Said capturing customer demand with deferred ARR is the strategic priority. Characterized the variance between in-quarter ARR start and deferred as important but secondary to securing the customer commitment.

Dahdah emphasized optimizing existing productivity before adding headcount. Noted internal repositioning from overlay to direct sellers already happening. Said opportunity exists for next year and has air cover from CEO and CFO to add responsibly.

Andrew pointed to replicating the construction go-to-market build-out to extend MaintainX into new verticals and deeper owner-operator workflows. Direct.