Jon Ho

Rob will bundle into TC1 with traditional cross-selling initially, then tighter integration. Links to billions in construction ERP and tens of millions of Connect projects. Early customer inquiry and press coverage strong.

Rob acknowledged hybrid models at intersection of named user license and consumption. Near-term displacement unlikely given labor shortages (hundreds of thousands short in North America). Trimble is fundamental to daily work, not shelfware.

Rob said last 18 months focused on infrastructure building and beta. 2026 will see accelerated releases and adoption. AI has variable costs, making unit economics different. Consumption model already a muscle via Transporeon (60% consumption, 40% subscription).

Rob noted AECO and T&L have converged (within ~100bps). Field Systems still has a spread with ARR at mid-20s as percent of revenue. Expects ~150bps model conversion headwind to continue through 2026 and 2027.

Phil confirmed consistent composition: approximately one-third new logos, two-thirds existing customer expansion within AECO. Model has been stable across multiple quarters.

Rob noted wide differential in customer AI readiness. Most progressive customers working with natural language design, auto invoicing, automated RFIs. Very early in customer-level adoption but Trimble well positioned.

Rob framed FedRAMP as broader security posture, not just federal business. No FedRAMP revenue planned in 2026 from government. Customers doing both federal and private work prefer unified security protocols.

Rob described pricing optimization between monthly and annual subscriptions to incentivize annual contracts. SketchUp cross-sell plays include Reality Capture integration for 3D point cloud workflows.

Rob broke down AECO bookings as two-thirds existing customers and one-third new logos. Strongest bundles include civil estimating with ERP, project management with ERP, and field instruments with model-based design packages.

Rob highlighted unique data corpus across trillions in construction and tens of billions in freight. Customers increasingly want to unlock their data for better decisions. Connect & Scale strategy positioned Trimble for this moment.

Rob highlighted unique data corpus across construction and transportation lifecycles. Customers moving from task optimization to systems optimization. Already delivering AI-driven features including natural language design and 3D feature extraction.

Rob confirmed record Works Plus bookings with 50%+ new logos, demonstrating TAM expansion. Also used in competitive swap-outs. Expects land-and-expand strategy with additional software and workflow layered on the subscription base.

Rob explained federal orders are predominantly in Field Systems (survey, GIS, machine control). Projecting down in 2025; Field Systems guide would be up over 3% excluding federal and subscription conversions.

Rob highlighted the unique ability to connect field and office data across construction lifecycle stakeholders, creating a unique corpus for AI-driven workflows like scan-to-BIM and digital supply chains.

Tom said demand for AI is rapidly increasing and it is still very early. Expects plenty of room to grow the existing customer base and add other customers of similar scale.

Tom said performance, cost, and trust were key differentiators. For critical applications of this scale, trust earned through delivery and security reliability and customer support makes a big difference. They are building out capacity to meet this demand, greatly increasing Inference Cloud from 20 sold-out locations by about an order of magnitude.

Tom said significant room for growth in both segmentation and API security. AI firewall still early with hundreds of prospects and lots of proofs of concept. Expects a quickly evolving landscape for protecting AI models, inference engines and agents.

Tom said it is a combination of new deals and existing workload expansion. Highlighted reliability as a key differentiator with five 9s target. Competitors including security companies experiencing significant outages that are devastating for banks.

Tom explained the $2.2B security base has large mature components (WAF, Prolexic, bot management) growing at slower rates. API security and Guardicore growing 30%+ but not yet at scale to move the overall number above 10%. As newer products get bigger, their growth rate will have more impact.

Tom said firewall for AI is very early but unique in marketplace. Strong dozens of proofs of concept underway with very positive customer feedback. Designed to protect user-facing AI applications against prompt injection attacks.

Tom described AI as a brand-new attack surface being rapidly deployed. Outlined threats including data exfiltration, offensive content, data poisoning. Akamai helps customers discover exposed AI apps and protect them.

Tom acknowledged the topic has come up in some accounts but said there are no good alternatives for security today. Akamai is working to reassure customers of long-term commitment.

Ed said it's tough to call given tariff uncertainty. They're exploring supply chain moves and potential pricing pass-through as part of broader pricing strategy work.

Josh Isner characterized the deals as meaningful expansions with more hardware and software, but did not quantify the uplift versus prior contracts.

CSO cited better go-to-market with partners, distributors, and system integrators plus stronger product-market fit. CEO added smaller countries going all-in nationally, creating proof points for larger forces.

CSO explained contract rewrites happen naturally with new product releases. Camera upgrades, new products, and AI urgency all catalyze mid-contract expansions.

Jeff explained the moat is the combination of physical device sockets (hardware already on officers), real customer workflows, and responsible use of massive proprietary datasets. Josh added Rick is in the top 0.0001% of AI users globally, driving company-wide AI adoption. Rick emphasized the Evidence.com ecosystem provides existing manual workflows ripe for AI automation.

Josh compared to the 2009-2011 body camera launch, growth is exponential not linear (1→4→12 customers). Focus is on making early customers successful and delighted, choosing the right team and channel partners. Every year shows more indicators this is turning into a valuable business.

Josh described natural upgrade path: customers start with core (TASERs, body cameras, basic Evidence.com) then add OSP and AI features as they see value. Brittany noted pace of innovation means more premium options available at each renewal.

Josh expressed very strong confidence citing pipeline fidelity and productive start to July. Multi-year track record of delivering on bookings commentary reinforces credibility.

Brittany cited expanded product portfolio (Fusus, Dedrone, AI) and traction outside Commonwealth markets. Josh credited execution improvements and key CRO hire Cameron Brooks in Europe.

Rick Smith described a progression from report writing to higher-complexity workflows, emphasizing Axon's unique position with customer trust and data access while maintaining responsible AI approach.

Moore listed specific embedded use cases; Miller added that clients want AI embedded in the system of record, not bolted on.

Moore described stable budgets and an anecdotal uptick in ERP decisions; Miller noted ROI scrutiny where pressure exists.

Brian said flip volume in dollars expected higher in 2026 vs 2025, peak in 2027-2029. Quarterly cadence hard to pin down. On track for 80%+ cloud by 2030. Focus on dollars not number of flips. Matter of when not if.

Lynn said penetration varies by product (utility billing vs ERP differ significantly). Disbursements and AP automation very early stage. Continuing to introduce new products and embed more services. Opportunity still extremely meaningful.

Lynn cited corrections TAM north of $100M and leveraged NIC relationships plus justice sales for Colorado win. Emergency networking Pennsylvania statewide win as proof of concept to transport nationwide. Brian emphasized tuck-in acquisitions growing significantly faster than Tyler core.

Brian cited Tyler Payments cross-sell, California Parks go-live, New Jersey digital titling, Florida SunPass, and Texas volumes. Lynn added faster onboarding and adoption initiatives.

Brian explained third-party rate increases flowed through above plan. Texas may extend services beyond August through year-end, adding $3-3.5M of low-margin revenue.

Lynn said ARPA was marginal, some Q4 deals pulled forward but not material. Does not view wind-down as headwind to near-term or long-term sales projections.

Prince said Cloudflare is pacing ahead of its by-2028 GAAP-profitability goal; ex-restructuring the GAAP net loss would have been about $18M, near breakeven.

Prince cited three examples from Ali Cabral: Fortune 500 pharma built vibe coding platform on Workers with OrchestraAI and DurableObjects; publicly traded tech company migrating plugin sandbox to Cloudflare containers for secure isolated execution; leading financial services company launched official MCP server on Workers for AI agents to interact with payment services. Customers choose Cloudflare for complete toolkit, modern architecture, and scale-to-zero cost efficiency vs hyperscaler year-long GPU commitments.

Prince explained partnership with Anthropic to run MCP in the cloud on Cloudflare. Strategy is to be universal translator supporting all protocols. ~80% of major AI companies are customers.

Prince emphasized platform buying over individual product purchases. Pool of funds represents customers committing to Cloudflare's overall vision. Crossed 3 million developers.

Lee explained platform integration transformed browser from niche to comprehensive, securing internet, SaaS, private apps, and VDI. AI controls embedded directly in browser.

Lee explained connecting all cloud security aspects from code to posture to runtime gives the best outcome and makes AI-based real-time detection more effective.