Latest news with #TCV
Business Insider
4 days ago
- Business
- Business Insider
TCV cofounder Jay Hoag slams VCs' AI herd mentality: 'like 7-year-olds playing soccer'
Veteran venture capitalist Jay Hoag thinks the AI investing hype has gone too far. The TCV cofounder criticized what he sees as VCs' blind rush toward AI. "Money sort of chases momentum or follows perceived momentum," he said on an episode of the "Invest Like The Best" podcast published Tuesday. "At the risk of insult, possibly like 7-year-olds playing soccer — the ball goes over there, everybody goes over there," Hoag said. Hoag said that the hyperfocus on AI and software as a service is diverting attention and capital away from other viable sectors, especially consumer internet, which he believes still has untapped potential. AI is "super shiny" and "super interesting," he said. "I just have a hard time believing there are not going to be any new consumer internet businesses founded and built over the next 10 or 20 years," he added. "I kind of wish that the AI enthusiasm hadn't distracted everybody." Hoag has spent over four decades in tech investment. He cofounded TCV in 1995 and chairs its investment committee. The firm has backed some of Silicon Valley's biggest wins, including Netflix, Expedia, Peloton, Spotify, and Zillow. Hoag also expressed concern about the "enormous" sums poured into startups during the 2020-2021 tech boom. "I've worried a little bit about some of the 2020-2021 capital — which is an enormous sum — being, by and large, broken capital," he said. "I wish there was a little bit more modesty in our business." Hoag did not respond to a request for comment from Business Insider. AI hype train In the first quarter, more than half of VCs' investments went to AI and machine learning startups, per PitchBook. Last year, global investments in the sector totaled $131.5 billion, up more than 50% from 2023, PitchBook's data showed. Hoag isn't the only investor sounding the alarm bells. Daron Acemoglu, an MIT economist, told Bloomberg in an interview last year that the hype surrounding AI may not meet its lofty expectations. "A lot of money is going to get wasted," Acemoglu said. Veteran VC Vinod Khosla said in 2023 that most startups were overvalued and that most investments in AI "will lose money."
Bloomberg
06-06-2025
- Business
- Bloomberg
Netflix Director Hoag Fails to Win Reelection to Company's Board
Netflix Inc. shareholders overwhelmingly rejected the reelection of venture capitalist Jay Hoag to the board of the streaming company after he was called out for failing to attend most meetings. Hoag, a founding general partner of Menlo Park, California-based TCV, received 71.4 million votes backing his reelection and 259.9 million votes against, according to a Netflix filing Friday.
Yahoo
05-06-2025
- Business
- Yahoo
Verint Systems Inc (VRNT) Q1 2026 Earnings Call Highlights: Strong AI Growth and Strategic Wins ...
Revenue: $208 million for Q1. ARR Growth: Accelerated to 6% year-over-year. Non-GAAP Diluted EPS: $0.29 for Q1. AI ARR Growth: Increased 24% year-over-year, reaching $354 million. Free Cash Flow Growth: Expected to increase approximately 12% to $145 million for the full year. Annual Revenue Guidance: Targeting $960 million with a range of plus/minus 3%. Annual Non-GAAP Diluted EPS Guidance: $2.93 at the midpoint. Q2 Revenue Expectation: Around $200 million. Q2 Diluted EPS Expectation: $0.26. Net Debt: One times last 12-month EBITDA. Stock Buybacks: Approximately 2.5 million common shares repurchased during the quarter. Revolver Size: Increased to $500 million, extended term to 2030. Warning! GuruFocus has detected 3 Warning Sign with VRNT. Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Verint Systems Inc (NASDAQ:VRNT) reported a strong start to the year with Q1 ARR growth accelerating to 6%, surpassing revenue and EPS guidance. The company achieved significant large deals, including a $13 million TCV order from an insurance company and a $14 million TCV order from a healthcare company, showcasing strong demand for their AI solutions. AI ARR increased by 24% year-over-year, reaching $354 million, indicating robust growth in AI adoption. Verint Systems Inc (NASDAQ:VRNT) is targeting an 8% ARR growth and double-digit free cash flow growth by the end of the year, demonstrating confidence in their financial outlook. The company's hybrid cloud model allows customers to layer AI-powered bots on existing infrastructure, facilitating quick AI deployments and scalability, which is a key differentiator in the market. Despite strong growth, Verint Systems Inc (NASDAQ:VRNT) faces challenges with customer caution due to previous negative experiences with AI bots from other vendors. The market's adoption of AI is still in its early stages, with customers being cautious and requiring proven value before committing to larger investments. There is significant competition from both well-funded software players and start-ups in the AI space, which could impact Verint's market share. The company's quarterly revenue is heavily influenced by the timing of unbundled SaaS renewals, which introduces volatility in financial performance. Verint Systems Inc (NASDAQ:VRNT) needs to continuously innovate and maintain differentiation in a rapidly evolving AI market to sustain its growth trajectory. Q: Can you explain how Verint differentiates in the AI space, particularly with AI voice chatbot usage in customer support? A: Daniel Bodner, CEO, explained that Verint differentiates by focusing on proven AI outcomes and hybrid cloud benefits. Customers can layer AI-powered bots on existing infrastructure, allowing them to start small and scale quickly. This approach has driven a 24% growth in AI ARR in Q1, indicating strong market adoption. Q: How successful has Verint been with its strategy of smaller initial deals with the potential for upselling? A: Daniel Bodner, CEO, highlighted a healthcare company that expanded from initial small-scale deployments to larger commitments, demonstrating the effectiveness of Verint's strategy. The company has seen significant growth in AI ARR, with 50% of its ARR now AI-driven, growing at 24%. Q: Are we at an inflection point for AI-driven voice bots, and what steps is Verint taking to ensure consistent execution? A: Daniel Bodner, CEO, noted that while AI adoption is accelerating, it is not yet at an inflection point due to past poor experiences with AI. Verint's strategy involves working with leading brands to drive innovation and adoption, and the company is focused on delivering tangible AI business outcomes. Q: What is Verint's confidence in achieving its second-half ARR growth targets? A: Grant Highlander, CFO, expressed confidence in achieving the 8% ARR growth target, citing a strong start in Q1 and a 30% year-over-year increase in the SaaS pipeline. The company expects sequential ARR growth each quarter, driven by strong demand for AI solutions. Q: How does Verint differentiate itself in the competitive AI landscape, especially against well-funded competitors? A: Daniel Bodner, CEO, emphasized Verint's differentiation through its platform approach, which integrates multiple AI models and workflows. The company benefits from working with leading brands, which drives innovation and ensures that Verint's solutions deliver real value and outcomes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
30-05-2025
- Business
- Economic Times
Birlasoft shares slide over 6% in 2 days post Q4 earnings miss; Nuvama slashes target price on bleak outlook
Shares of Birlasoft Ltd have dropped 6.4% over two sessions since the company reported its fourth-quarter earnings, with the stock falling as much as 5.8% on Friday to Rs 396 on the BSE. The slide comes after the IT services firm posted a sequential decline in revenue and a tepid outlook, prompting Nuvama Institutional Equities to slash its target price and reiterate a negative stance. ADVERTISEMENT Nuvama lowered its 12-month target price on Birlasoft to Rs 350 from Rs 370, maintaining a 'reduce' rating. The revised target implies a potential downside of about 11.6% from Friday's low. "Birlasoft reported weak Q4FY25 results," Nuvama said in a post-results note, adding that the company missed the brokerage's estimates. 'Birlasoft continues to disappoint on revenue growth,' it added, citing the weakest annual growth across its coverage universe apart from Wipro. For the March quarter, Birlasoft's consolidated revenue fell 3.36% QoQ to Rs 1,316.89 crore, and 3.35% YoY. In dollar terms, revenue stood at USD 152.2 million, down 5.4% QoQ and 7.2% YoY. Constant currency revenue fell 5.3% the revenue miss, operating margins improved, with EBITDA rising 6.2% QoQ to Rs 173.6 crore. EBITDA margin expanded to 13.2% from 12% in the previous quarter, although it was down from 16.3% a year earlier. EBIT margin also rose by 110 basis points QoQ to 11.5%, beating Nuvama's estimate of 10.7%.Management attributed the margin gains to operating efficiencies and one-off benefits, including lower variable pay and currency gains, which contributed around 200 basis points to the expansion. ADVERTISEMENT The top-line pressure was largely due to project closures and ramp-downs in key verticals. 'Revenue declined 5.3% CC QoQ/6.9% CC YoY due to higher-than-usual furloughs extending into January, some project closures and ramp-downs in a couple of large accounts, mainly in the Manufacturing and Lifesciences segments,' Nuvama said. ADVERTISEMENT The company highlighted leadership changes in underperforming verticals, including Manufacturing and the MedTech segment within Lifesciences. The ERP segment also continued to decline, falling 7% verticals, Energy & Utilities (E&U) was the only segment to post growth, rising 1.9% QoQ, while Lifesciences, Manufacturing, and BFSI declined 7.2%, 6.8% and 5.7% QoQ, respectively. ADVERTISEMENT The management indicated a muted Q1 FY26, with growth expected to pick up from Q2 onwards, while margins are expected to remain in a narrow band through FY26."Management highlighted a muted Q1 in terms of growth and deal-wins with growth starting from Q2. Management's endeavour is a better FY26 than FY25 while EBITDA margin are likely to remain in a similar range," Nuvama said noting the company's post-earnings call. ADVERTISEMENT Full-year FY25 performance remained soft, with constant currency revenue flat, margins contracting 280 basis points, and total TCV declining 13% YoY. Net new deal TCV was down 20% YoY.'Birlasoft has had a disappointing FY25 on all fronts,' Nuvama said. 'A weak exit run rate in Q4 along with tepid TCV in FY25 raises serious concern about FY26 growth prospects. We continue to be negative as we see little respite in the near term.'Total contract value (TCV) for Q4 came in at $236 million, up 4% QoQ but down 2% YoY, including $112 million in new deals and $124 million in renewals. Net new deal wins grew 5% YoY, indicating some momentum despite the overall soft said it is using 'its specialised domain expertise within each of the verticals and sub-verticals together with technology capabilities to create an offering.' The company is also focusing on organic growth, with no mention of M&A-led post-earnings decline suggests investor concerns about the company's weak growth visibility and execution risks. Birlasoft's efforts to revive momentum through leadership changes and operational efficiencies have yet to reassure the market, as the stock now trades close to the revised target price set by analysts.'Growth remains elusive,' Nuvama concluded, underscoring persistent challenges for the mid-tier IT firm as it navigates a tough demand environment and attempts to rebuild its growth engine in FY26. Also read | Market surge leads to Rs 50,000 crore worth stake sales by promoters and shareholders (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Business Standard
29-05-2025
- Business
- Business Standard
Birlasoft Q4 PAT rises 4% QoQ to Rs 122 cr
Birlasoft reported a 4.42% increase in consolidated net profit to Rs 122.11 crore in Q4 FY25, up from Rs 116.94 crore in Q3 FY25. However, revenue from operations decreased 3.36% quarter-on-quarter (QoQ) to Rs 1,316.89 crore in Q4 FY25. As compared to Q4 FY24, the companys consolidated net profit fell 32.19% and revenue declined 3.35%. EBITDA stood at Rs 173.6 crore in Q4 FY25, up 6.2% QoQ but down 21.7% year-on-year (YoY). EBITDA margin improved to 13.2% in Q4 FY25 compared to 12% in Q3 FY25, though it declined from 16.3% in Q4 FY24. In dollar terms, the companys revenue was $152.2 million, registering a decline of 5.4% QoQ and 7.2% YoY. In constant currency terms, revenue declined 5.3% QoQ. The company signed deals with a total contract value (TCV) of $236 million during the quarter, up 4% QoQ, comprising new deal wins worth $112 million and renewals worth $124 million. Active client count stood at 254 in Q4 FY25, down from 265 in Q3 FY25 and 259 in Q4 FY24, reflecting some rationalization of the tail. Cash and cash equivalents rose to $259.5 million at the end of Q4 FY25, compared to $240.1 million at the end of Q3 FY25. In rupee terms, cash and cash equivalents increased to Rs 22,177 million at the end of Q4 FY25 from Rs 20,552 million at the end of the previous quarter. The workforce strength stood at 11,930 as of 31 March 2025, with an attrition rate of 12.8% during Q4 FY25. Angan Guha, chief executive officer and managing director of Birlasoft, said, We are pleased to report a steady year in the face of a soft demand environment owing to sustained macro-economic challenges, with revenue during FY2025 growing 1.8% over the preceding year. We continue to generate consistently strong cashflows. We also saw a noticeable uptick in our deal wins during the second-half of the year under review, with a sequential increase in TCV of deals won during the quarter under review to $236 million led by higher new deals, demonstrating the strength of our pipeline and our ability to pursue deal closures. While our near-term outlook is likely to reflect the impact of shifts in customer priorities, we continue to invest in our capabilities such as generative AI, where we have been early adopters. Kamini Shah, chief financial officer, Birlasoft, said, "Our consolidated revenue during FY25 has grown 1.8% over the preceding year to Rs 53,752 million. Our EBITDA margin performance for the year reflects the investments we have been making in our business as well as higher furloughs, consolidation deals, and growth in the Infra business. For the quarter under review, revenue stood at $152.2 million and the EBITDA margin expanded 119 basis points sequentially to 13.2%. Cash flow from operations during the year and the quarter were 88.3% and 88.1%, respectively, of EBITDA, led by sustained focus on collections. We have ended the year with a robust balance sheet and believe that we are well-positioned to successfully navigate through the prevalent macroeconomic environment." Meanwhile, the companys board has recommended a final dividend of Rs 4 per equity share for the financial year 2024-25, subject to approval by the members at the upcoming Annual General Meeting (AGM) of the company. The date of the AGM will be intimated in due course, and the dividend, if declared by the members, will be paid within the statutory timelines. Further, the companys board has approved that Manjunath Kygonahally, senior management personnel (SMP) and currently chief executive officer for rest of the world (CEO-ROW), will take on an additional role as Global Head of Strategic Growth Initiatives, effective 28 May 2025. He will be designated as CEO-ROW and Global HeadStrategic Growth Initiatives. Birlasoft, part of the CK Birla Group, provides digital and information technology consulting, services, solutions and products for organizations across industries worldwide. The counter shed 0.77% to Rs 420.05 on the BSE.
