Key Themes Summary

Companies are ramping up AI investment and beginning to see early gains. Despite macro uncertainty, demand has held up, with a continued focus on efficiency and profitability. Below are are the key themes discussed across companies:

• AI Expanding Fast, Impact Starting to Show: AI adoption continues to accelerate with real business impact. Qualcomm sees AI lifting ASPs and pulling forward upgrade cycles in smartphones and XR. Arista sees AI traffic driving a cloud refresh cycle. Varonis is catching a tailwind from demand for AI-ready data security. On the monetization side, Datadog says AI-native workloads now make up 8.5% of ARR. GoDaddy’s Airo adds ~$60 to ARPU, while Freshworks’ Freddy drives $29 per seat with 30% productivity gains. Match saw a 15% lift in Hinge’s match rate, and Veritone’s new data refinery is already generating revenue.
• Stepping Up AI Investment: Commitment to AI remains a central theme. Arista is “all in on AI,” targeting a $70B market across AI and cloud networking. Intel’s Lip-Bu Tan is shaping its edge AI chip strategy. Datadog is putting 30% of revenue into R&D, with AI as a key focus.
• Resilient Demand Despite Macro Uncertainty: Demand trends remain resilient despite macro headwinds. DoorDash reports strength across income tiers, and Etsy hasn’t seen major shifts in buyer behavior. GlobalFoundries is shielded by long-term capacity deals. Datadog calls cloud spend “transformational” and macro-resilient. Lam Research expected to benefit from NAND and GAA upgrade cycle in 2025. Uber cites category/geographic mix and variable cost model as key buffers.
• Profitability Remains in Focus: Profitability levers are in motion. American Tower is cutting SG&A to expand margins, Match trimmed headcount by 13%, and Charter is using AI to reduce service and billing costs. Microchip is managing down inventory, while PayPal is reallocating spend to R&D and marketing with tighter controls. Lumen is targeting $1B in run-rate savings by 2027 with management emphasizing execution rigor.

Schedule

Day 3 (May 15, 2025)

Alkami Technology, Inc. (ALKT)

Alkami (digital banking SaaS for regional FIs) reported strong execution (64.3% GM in Q1), with MANTL acquisition (digital account opening) catalyzing cross-sell (70% target attach rate), minimal client overlap, and LT targets of $1B rev. (4–5 yrs) and 30%+ EBITDA margins. MANTL integration enhances competitive differentiation via data-driven cross-sell (Alkami + MANTL + Segmint). Capital allocation focused on low-dilution (~$45 effective strike price).

Angi Inc. (ANGI)

Angi (ANGI) emphasized stabilization post-spin-off, targeting 2026 rev. growth via improved proprietary channel performance and AI-driven efficiency. Key initiatives include enhancing homeowner/pro success rates, expanding margins via cost control, and leveraging international ops (10% rev., higher margins). Tariff impact (~3-5% demand hit) seen as transitory; LT goal of DD growth achievable via market share gains (current <2%).