Company Focuses on Large Language Models and AI to Meet Customer Demand
2023-08-04
In the recent earnings call meeting, the Chairman and CEO of a company discussed the reallocation of resources to focus on large language models and AI. The company is adjusting its investments to meet the growing customer demand in these areas. While specific details about the timeline for revenue generation were not provided, the company expressed its commitment to providing updates in future earnings calls.
One of the key topics discussed in the meeting was the stability of budgets and customers' willingness to invest in automation, low code, and AI initiatives. The Chairman and CEO, Matt Calkins, acknowledged that while there is a lot of excitement around AI, it is still too early to determine its impact on customers' investment decisions. This year, customers have been more cautious with their purchases, leading to slightly longer sales cycles, delays, and cancellations. However, there is also a high level of excitement about the potential of technology, especially AI, to improve efficiency.
Despite the longer sales cycles, there is still interest from customers in exploring automation and AI solutions. Calkins noted that there is a small delay compared to a regular year, indicating that customers are still interested in these technologies despite their cautious approach to investments.
Another topic discussed in the meeting was the role of the Data Fabric in AI initiatives. Unfortunately, further details about this topic were not provided in the given information.
The company's outlook for the year is positive, with an increased total revenue guidance of 15% to 16% year-over-year. The adjusted EBITDA loss is also expected to improve compared to previous guidance. The market outlook suggests that professional services revenue will grow at a mid-single-digit rate, on-prem license revenue will be consistent with seasonality, and adjusted EBITDA loss will improve sequentially and year over year. The company expects non-GAAP adjusted EBITDA margins to be better than 10% in the second half of 2023. The guidance also includes other non-operating expenses and capital expenditures related to office space expansion. Overall, the company expresses excitement about growth opportunities and remains focused on investing in areas that will drive long-term growth and generate superior returns.
The company's plans for product and service involve reallocating resources internally to focus on the utilization of large language models, which are a form of artificial intelligence. The company aims to match the increasing customer interest and leverage the power of these products. While no specific timeline for revenue generation was provided, the company already has expertise in this area and does not plan to make a significant new investment.
During the call, the participants included Chairman and CEO Matt Calkins, CFO Mark Matheos, and Director of Investor Relations Srinivas Anantha. Analysts from Barclays, Citi, Goldman Sachs, Truist Securities, and William Blair and Company also participated in the call.
In conclusion, the company's earnings call meeting focused on the reallocation of resources to prioritize large language models and AI. The company is adjusting its investments to meet customer demand and expressed interest in providing updates in future earnings calls. While customers have been more cautious with their purchases this year, there is still interest in exploring automation and AI solutions. The company's outlook for the year is positive, with an increased revenue guidance and expectations for improved financial performance. The company remains committed to investing in areas that will drive long-term growth and generate superior returns.