Jim Fish

Werner ruled out backlog on mechanical grounds and attributed the deferred revenue build to service lag plus deferred portions of new FCP bookings.

Locoh-Donou confirmed dedicated AI security budgets in financial services, disclosed the SurePath AI acquisition, and framed a coming AI security platform consolidation.

Cooper confirmed revenue guide doesn't include new pricing adjustments, which would flow into FY27. Supply position strong near-term from early procurement actions. Current appliances use DDR4; next-gen will use newer technology (timing undisclosed). Memory pricing elevated through better part of FY27.

Cooper clarified deferred revenue strength (up 10%) is from maintenance renewals, not product backlog. Some customers doing multi-year maintenance renewals likely getting ahead of perceived price increases. Growth not tied to product orders or pull-in.

Cooper noted customers refreshing higher in the portfolio with higher ASPs and more units, driven by security performance needs and anticipated AI workloads. Customers being more front-loaded in planning than prior refresh cycles.

Francois quantified: two-thirds refresh, one-third non-refresh. Direct AI revenue still in single-digit millions quarterly with dozens of wins. Additionally noted 'shadow AI' use cases where indirect AI investment drives F5 demand but is harder to quantify.

Cooper said well over half of base still on legacy families. Refresh expected to be a growth opportunity through FY26 and into FY27, tailing off in FY28. Not seeing migration from legacy hardware to software; instead seeing customers give more consideration to hardware for performance needs.

Francois ranked: 1) tech refresh, 2) DC modernization/hybrid multi-cloud (includes AI prep), 3) competitive displacement, 4) direct AI use cases. All expected to grow over next several quarters.

Cooper cited pending end-of-support dates in FY26-27 for two product families representing more than half of the installed base. Refresh opportunity extends well beyond current year, at least through FY26.

Cooper attributed sustainability to hybrid multi-cloud complexity driving demand across all form factors. Software expansion rates and customer portfolio convergence are durable trends despite quarterly lumpiness from ASC 606.

Francois confirmed single-digit percentage price increases taking effect at calendar year start. F5 monitors competitive environment and price-performance value to make adjustments.

Francois outlined timeline: hardware for AI data ingestion is immediate but small scale; software inside GPU clusters (NVIDIA partnership) is FY26 and beyond due to go-to-market work needed.

Robbins said customers learned from COVID about being stuck with old tech. Agentic AI architecture requirements, cybersecurity risks from end-of-support equipment, and networking memory content being lower than compute limit pull-forward risk.

Robbins explained Splunk cloud subscriptions went from ~50% to ~67% of mix. Long-term positive but one-time revenue recognition timing impact. Orders and demand metrics all healthy.

Robbins said Silicon One full portfolio rollout expected by 2029. Differentiation comes from performance, programmability, and low power. Custom engagements changed trajectory with webscalers.

Robbins highlighted existing Duo and Orc assets, Q4 Duo growth was exceptional. Already working on agentic identity with advantage of combining networking, security, and identity.

Patterson acknowledged the correlation idea but said it's difficult to quantify given simultaneous launches of smart routers, switches, and WiFi access points.

Robbins and Herren explained AI orders are converting to revenue gradually with first revenue in Q3 and more expected in Q4, most AI revenue still ahead.

Robbins said higher per-port cost in data center balances against higher campus volumes, noting they normalize each other over time.

Robbins confirmed systems are the dominant consumption model with standalone silicon sales still very small as a percentage.

Robbins acknowledged early stage of Splunk cross-sell, mentioned expanding WPAs to include Splunk and upcoming cross-selling sales incentives but didn't quantify penetration.

Chuck highlighted the new Wi-Fi 7 platform as hardware-portable between on-prem and cloud management. Expects AI deployment to continue pulling enterprise refresh opportunity.

Scott declined to break out Splunk RPO, citing increasing integration making the line blurry. Only said ex-Splunk RPO growth is positive and in sync with historical trends.

Khozema said RCS is growing very fast off a small base and Aidan put its margin in line with Messaging; the ISV mix question got only a general answer.

Khozema said systems of record are not a concern and Twilio aims to integrate with any LLM, agent or CRM; Thomas noted an embeddable version of Flex for CRMs.

Thomas confirmed 2026 comp changes adding cross-sell and upsell incentives plus a specialist function, citing 26% growth in multiproduct customers.

Aidan tied much of the customer-add jump to ending free e-mail and marketing API tiers and said the price increase caused no churn.

Khozema called Stytch an authentication accelerant and said the tech and talent tuck-in cost less than $100 million and is immaterial to financials.

CFO said the U.S. messaging list-price increase is separate from Verizon's A2P fee; CRO said it mainly targets fast-growing self-serve, where Twilio has pricing power.

CRO credited easier self-serve onboarding and an email free-trial change for one of the strongest new-customer quarters in years, but did not size the AI contribution.

CFO said Twilio has bought back about $225 million of stock year to date with timing flexibility, and M&A is limited to tech or talent tuck-ins.

CEO said the ISV's CEP launch is not material to the business or customer forecasts and expects the impact to be de minimis.

Attributed RPO growth to bookings plus a higher multiyear mix and called Segment steady, but did not say whether it has bottomed or size the big deal.

CFO said crypto customers show stronger volume but remain far below 2020-2022 levels and are immaterial to messaging or email growth.

Dominic acknowledged tighter DRAM/NAND supply with rising prices and less visibility but said Samsara has avoided stock-outs and sees a share-gain opportunity.

Dominic answered directly: emerging product contribution was broad-based, with no single product driving more than half of bookings.

Sanjit lacked a specific vertical size but said verticals like student transportation open up quickly once a couple of top providers adopt, as seen in construction.

Dominic said most $1M+ ARR customers are large enterprises with complex operations where Samsara is early, though some smaller customers have gone wall-to-wall.

Sanjit said most OEM partnerships are non-exclusive cloud-to-cloud connections, part of OEMs' broader connected-data strategy.

Sanjit and Dominic argued efficiency ROI holds through cycles; customers with $0.60-$0.80 of every revenue dollar in operations keep optimizing. Answered directly, no macro data offered.

Sanjit gave three core Asset Tag use cases: finding lost/stolen assets, saving worker time locating assets, and improving asset utilization.

CEO said systems vendors are focusing more on AI/GPU servers and less on storage; Everpure wins with a unified software environment across block/file/object, lower total cost of ownership, higher reliability, and the enterprise data cloud.

CEO said components (NAND, memory, GPUs) more than doubled over six months; the Feb 9 increase averaged about 20% (varying by product line), and Everpure was the last to raise and believes its increase was the lowest in the industry.

CEO said rising memory prices would likely push relatively more customers toward Evergreen One, whose longer depreciation cycles and renovated-equipment mix insulate Pure from commodity spot pricing.

CTO said Pure competes well in AI/HPC and Neo Clouds (with FlashBlade//EXA) and sees rivals only in a small number of AI/HPC deals; full-portfolio breadth across block/file/object and capacity is a key advantage.

CEO said Q1 linearity was very typical, strong start, stayed strong, nothing unusual; CFO noted revenue linearity skewed positive, aiding cash flow and limiting FX impact.

CFO said hyperscaler investment builds supply-chain scale for this win and future wins but wouldn't preclude further investment for other opportunities; CEO cited tariff contingency plans.

CTO said talks with multiple additional hyperscalers continue to progress on reliability, power savings, and performance/TCO, with more work to be done.

Ed said they didn't break out API and Guardicore separately this quarter but they remain the primary growth drivers with rates similar to last quarter after adjusting for license revenue impact. CIS grew 40% and is expected to accelerate.

Ed corrected the power math, the mega deal requires significantly less than implied. CDN and security use small fractions of power (kilowatts, maybe a megawatt for big CDN). Compute locations are typically 5-10 megawatts expandable to 20-30. Not concerned about access to power or colo, great relationships with providers, excellent credit. GPUs draw more power than CPUs; equipment type matters for efficiency.

Ed noted longer contract lengths and larger deals. About 74-75% of customers use both security and delivery. Compute adoption picking up in installed base. Not pool-of-funds or ELAs but product-specific commitments. RPO metric will reflect the improvement.

Ed said initial NVIDIA deployment in 17 cities was in Q4 CapEx. CapEx will be demand-informed. Roughly $1 of CapEx per $1 of revenue, potentially better with GPU-as-a-service scarcity pricing. Expects similar or slightly better gross margins than compute once at scale.

Ed pushed back on characterizing it as weakness, said it came in line with expectations. Most revenue is recurring. New sales from API security and Guardicore take about a month to become revenue-generating. Mix of new vs upsell was normal.

Ed detailed the transition: video/image management, visitor prioritization, and transcoding moving to ISV partners. Legacy storage winding down. Growth to reaccelerate to 20% CAGR.