Gloo (GLOO) Q1 2026 Earnings Transcript

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Date

June 8, 2026

Call participants

• Chief Executive Officer and Co-Founder — Scott A. Beck
• Chief Financial Officer — Paul Seamon
• Executive Board Chair and Head of Technology — Patrick Gelsinger
• Head of Investor Relations — Oliver Roll

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Takeaways

• Revenue -- $41.5 million, an increase of 238%, and 13% above both guidance and Street consensus.
• Adjusted EBITDA -- Negative $11.5 million, over $7 million sequential improvement, and third consecutive quarter of improvement.
• Platform revenue -- $24.1 million, up $15.6 million year over year, and 19.9% sequentially.
• Platform solutions revenue -- $17.4 million, $13.6 million higher year over year, and about 29% sequential increase.
• Cost of revenue -- 67.7% of total revenue, a reduction from 72.1% in the prior year, mainly from workspace and Outreach margin gains plus full-quarter Westfall Group integration.
• Operating expenses -- Decreased $8.4 million sequentially, while revenue grew 24% quarter over quarter.
• Acquisition impacts -- Closed purchase of EMD at the start of Q2, signed agreement for remaining 20% of Midwestern, and announced full ownership, eliminating a $12.1 million balance sheet liability.
• Large strategic customers -- Five new deals contributed more than $1 million each in annual contract revenue.
• Organic growth -- More than 30% organic growth rate, with both core and acquired businesses contributing.
• Cash position -- $33 million as of April 30, 2026; management says liquidity is sufficient to reach adjusted EBITDA profitability in Q4.
• Full-year fiscal guidance -- Revenue outlook raised by $5 million to $195 million for 2026.
• Q2 outlook -- Projected revenue of $44 million and adjusted EBITDA loss narrowing to negative $8.5 million.
• Gloo AI launch -- Announced general availability with support for over 80 LLM models, safety tools, multiple subscription options, and free sandbox access for developers.
• Customer vertical penetration -- Strategic progress noted in denominational, campus ministry, and university segments, with Catholic sector identified as a new growth area.
• Cross-selling -- Synergies observed; multi-offering adoption by a customer can lead to revenue increases of up to 10x over a single-product sale.

Summary

Management confirmed sustained business momentum with significant expansion in core and acquired offerings, alongside disciplined operational execution that improved profitability metrics. Gloo Holdings (NASDAQ:GLOO) highlighted increasing demand across both faith-based and non-faith-based markets, citing broadening adoption of its platform and new strategic verticals. The successful integration of EMD and Midwestern, plus the elimination of a related financial liability, directly enhanced the company’s financial profile.

• Patrick Gelsinger said, "And we do not see ourselves as anywhere close to saturation on any dimension of the business."
• Early traction in the Catholic and university sectors was described as promising; management expects future repeatability in these channels as offerings mature.
• CEO Scott A. Beck stated, "our current plan does not depend on additional acquisitions to achieve our revenue or adjusted EBITDA profitability guidance."
• Subscription developer activity with Gloo AI exceeded 1,000, with management emphasizing the need for "much faster, much larger" scale in the near term.
• Cross-segment platform adoption was reported to accelerate as customers expand beyond their initial Gloo product investment, driving greater revenue and margin benefits per client.

Industry glossary

• LLM: Large Language Model; advanced AI model designed for understanding and generating human language, referenced as part of Gloo AI's multi-model support.
• Agentic AI: An applied artificial intelligence solution that automates complex workflows and decision-making, delivering outcomes with reduced human input throughout Gloo’s platform.
• Platform solutions: A revenue segment encompassing tailored business solutions delivered via Gloo’s platform, often combining technology modernization and strategic consulting.
• Capital partner businesses: Acquired entities such as Masterworks and Midwestern that are integrated into Gloo’s operational and revenue structure for platform expansion.
• SAM: Serviceable Available Market; the proportion of the total addressable market that the company considers realistically reachable with its offerings.
• TAM: Total Addressable Market; the full revenue potential available for a company’s products or services, without regard to current reach or presence.

Full Conference Call Transcript

Oliver Roll: Thank you, operator. And thank you to all of you for joining our fiscal first quarter earnings conference call. Will be discussing Glu's performance for the first quarter ended April 30, 26. As well as providing guidance for our Q2 and full year 2026. Joining me on today's call are CEO and cofounder, Scott A. Beck and CFO, Paul Seamon. Our executive board chair and head of technology, Patrick Gelsinger will also join the Q&A session. Before we begin, please be reminded that this call will contain forward-looking statements. Including statements related to our business, future growth, strategic initiatives, key priorities, and our financial outlook for Q2 and fiscal year 26. These statements are based on Gloo's current expectations.

But are subject to risks and uncertainties relating to future events and or the future financial performance of Gloo. Blue assumes no obligation to update or revise them, whether as a result of new developments or otherwise. Actual results could differ materially from those anticipated in these forward-looking statements. A discussion of some of the risks that could cause actual results to differ materially from our forward-looking statements be found in today's press release, and are disclosed under the caption Risk Factors and elsewhere in our filings with the Securities and Exchange Commission. Including our annual report on Form 10 k for the fiscal year ended 01/31/2026.

Our SEC filings are also available on Glu's Investor Relations website at investors.glu.com and the SEC's website. In addition, during today's call, we will discuss certain non GAAP financial measures. Including adjusted EBITDA. Use non GAAP measures in some of our financial discussions as we believe they provide valuable insights on our operational performance, and underlying operating results. These non GAAP financial measures should be considered in addition to not as a substitute for, or in isolation from our GAAP results.

Reconciliations of these non GAAP metrics to the most directly comparable GAAP as well as the definitions of each measure, their limitations, and our rationale for using them are included in today's press release and will be included in our Form 10 Q to be filed for the quarter ended 04/30/2026. And now I will turn the call over to Scott.

Scott A. Beck: Thanks, Oliver, and thank you for joining our 26 first quarter earnings call. Q1 was another strong quarter for Glu. We exceeded our guidance and Street consensus on both revenue and adjusted EBITDA. Revenue came in at 41.5 million growing 3x over the prior year. This is also 13% above guidance in Street consensus. Adjusted EBITDA was negative 11.5 million also ahead of guidance and Street consensus. And representing more than a $7 million sequential improvement from Q4 25. This represented our third consecutive quarter of sequential adjusted EBITDA improvement. This progress reinforces our confidence in delivering against our adjusted EBITDA profitability goals with adjusted EBITDA expected to approach breakeven in Q3 of 26 and reach profitability in Q4 26.

Our Q1 results demonstrated that our strategy is working. We are seeing growing demand from large strategic customers, Our current acquisitions are delivering compounding value and AI is becoming an increasingly important accelerator across the business. Before turning to the specific drivers for the quarter, I want to connect our results to the broader opportunity. Glu is building the leading technology platform for the faith and flourishing ecosystem with Applied AI becoming a defining capability across the platform. This is a large, durable, and highly fragmented ecosystem spanning education, social impact, bible translation, churches, and the denominations that serve them.

Donations remain the economic engine of the ecosystem, funding the mission driven work of faith and flourishing organizations, In 2025, revenues for faith based organizations grew 8.2% to more than $265 billion. Underscoring both the scale of the opportunity and the importance of donor development. Across these segments, organizations consistently need 2 things. They need to modernize technology and they need to expand marketing reach to attract more donors and more constituents. That is how we have organized the Glu platform. Powering technology and powering reach. Applied AI has become an increasingly important capability of the platform.

Our powering technology business is designed to take over the customer's technology operations, modernize them, and then apply Agentic AI to deliver significantly better outcomes at lower cost for our customers while creating higher margins and durable revenue streams for Glu. With powering reach, Applied AI helps customers better understand their audiences, personalize engagement, and strengthen donor development. That combination is what makes Glu distinct. We are not simply providing software or services We are bringing applied AI into the workflows that matter most to the organizations that we serve. We can do this because Glu has earned a position of trust within the faith and flourishing ecosystem.

Over decades, we have built the relationships and credibility needed to convene leaders, understand their most important workflows, and a apply AI in ways that are practical and mission aligned. In Q1, we saw strong momentum across the platform. On the powering reach side, Masterworks, Barna and Westfall delivered 1 of their best revenue quarters ever. That performance demonstrates the value of combining donor engagement with media research, and the fundraising capabilities all on 1 platform. On the powering technology side, customers are increasingly selecting Glu to take over, modernize, and transform core technology operations through offerings like Gloo 360.

In Q1, that momentum showed up in larger strategic wins, including 5 new customers, contributing more than $1 million in annual contract revenue. These larger strategic wins show growing traction across both existing and new segments of the faith and flourishing ecosystem. Assemblies of God is a strong example of a denomination choosing Gloo. They are leveraging Gloo 360 across their enterprise, by modernizing legacy systems to better serve their 13 thousand churches within The United States. Indiana Wesleyan University is another important example. We are partnering with Wesley Seminary at IWU to build via journeys an AI powered ministry life cycle ecosystem that connects ministry leaders with personalized resources and mentors.

We believe this points to a broader transformation in how universities will equip students and the communities where they lead. For example, our work with Jessup University announced earlier this year is progressing extremely well and running ahead of schedule. Beyond the customer examples, we continue to build broader ecosystem momentum around applied AI. Our 26 fourth annual Glue Hackathon will bring together more than 700 developers, engineers, and mission driven builders in Boulder this October for 48 hours of hacking and building mission aligned apps and technology. This quarter, we announced the general availability of Gloo AI a comprehensive set of AI tools and capabilities for developers in the faith and flourishing ecosystem.

This release includes support for over 80 LLM models, It includes new safety capabilities, varied subscription options to pay for token usage, and a free sandbox for developers to experience our values aligned guardrails. The goal is to accelerate practical AI solutions that advance human flourishing. Moving now to acquisitions, which remain a key part of how we are strengthening the Glu platform. Our strategy is to add best in class providers that expand our ability to power tech and to power reach. Q1 provided strong evidence that strategy is working. Westfall Group and Masterworks both delivered 1 of their best quarters ever.

That validates the strength of those businesses and the compounding value of bringing them onto the Glu platform. During Q1, we signed a purchase agreement to acquire EMD. Which we closed at the beginning of Q2. EMD expands our powering technology portfolio with Workday Consulting, implementation, and support capabilities for not for profit, small, and mid market organizations. EMD also aligns directly with our broader strategy that I mentioned earlier. We take on and modernize critical customer workflows then apply specialized engineering talent and agentic AI to deliver them better outcomes, at a lower cost. Over time, this creates a strong customer value proposition while also improving Glu's margin profile.

Today, we are also announcing the acquisition of the remaining stake in Midwestern, bringing our ownership to 100%. Midwestern increases our investment in the cost effective global talent capability area. We believe this will continue to be a significant growth opportunity as we combine lower cost delivery capabilities with Agentic AI. This also eliminates the call option which will result in a 1-time improvement by removing the associated $12.1 million liability from Gloo's balance sheet. Together, these acquisitions strengthen the platform expand customer value, and reinforce the flywheel. That we are building. Our approach with acquisitions is always disciplined.

We continue to see a strong pipeline but we will only pursue opportunities that are best in class strategically aligned, and accretive to the Glu platform. Even though we have a strong pipeline, as we previously stated, our current plan does not depend on additional acquisitions to achieve our revenue or adjusted EBITDA profitability guidance. As we look ahead our priorities remain clear. We are focused on deepening strategic customer relationships, scaling our platform, and applying AI in ways that improve outcomes, for our customers while creating durable value for Glu. At the same time, we will keep integrating acquisitions with discipline, and executing against our path to profitability. Q1 was a strong start of the year.

We remain confident in our strategy, our 2026 plan and the long term opportunity to build the category defining technology platform for the faith and flourishing ecosystem. Paul, I will turn it over to you to walk through the numbers in more detail.

Paul Seamon: Thank you, Scott. We delivered strong first quarter results with both revenue and adjusted EBITDA meeting guidance. This performance reflects solid business momentum and disciplined execution. Giving us a solid financial start to the year. Q1 revenue was $41.5 million increase of 238%. Compared to the same period last year. And 23.5% sequential growth Compared to Q4. Year over year revenue growth was driven by momentum in several business lines. Most notably Gloo 360 as well as acquisitions of capital partner businesses such as Masterworks and Midwestern. Platform revenue totaled $24.1 million an increase of $15.6 million from Q1 of last year. And up 19.9% over Q4 25.

Platform solutions revenue was $17.4 million up $13.6 million from the same period in 2025 and about 29% sequentially. Cost of revenue in the quarter was 67.7% of total revenue. An improvement from 72.1% in the prior year period. That increase was driven by improvements in margins at our workspace and Outreach business lines as well as a full quarter of Westfall Group. We expect improvement to continue through the year. Adjusted EBITDA improved $7.1 million sequentially to negative $11.5 million This significant improvement reflects the impact of our cost saving actions implemented in Q4 along with the growth already mentioned. In particular, our operating expenses decreased $8.4 million sequentially, while revenue grew 24%.

Also note that general and administrative expenses include acquisition costs, related to the EMD acquisition. Which closed in the second quarter, We do not adjust for these costs in our non GAAP results. We expect continued sequential improvement in Q2 as we aim to achieve adjusted EBITDA profitability in Q4. As Scott described earlier, we recently agreed to purchase the remaining 20% of Midwestern, that we did not previously own. As well as eliminate the call option permitting the holder of the remaining 20% from reacquiring and controlling interest of Midwestern from us. We anticipate closing on the transaction later this quarter.

The elimination of the call option will result in no longer having large swings in the financial statement reporting line titled gain or loss from change in fair value of financial instruments. As of 04/30/2026, we had $33 million of cash and cash equivalents. We believe that we have the liquidity to reach positive adjusted EBITDA in Q4 which we expect will put us on a path of sustainable, positive free cash flow growth in future quarters. With significant momentum across the business, we also believe we have multiple options to further strengthen the balance sheet fund our growth, and support future acquisition opportunities, should we choose to pursue them.

I would like to now turn to our full year 2026 and Q2 outlook. For full year 2026 revenue, we are increasing our outlook $5 million to $195 million In the second quarter, we expect revenue to be $44 million and adjusted EBITDA loss to narrow to a negative $8.5 million We continue to expect adjusted EBITDA to approach breakeven in Q3 26 and reach profitability in Q4 26. expect a weighted average share count of approximately 81 million shares, For Q2, With that, I will turn this call back to Scott.

Scott A. Beck: Thanks, Paul. With that, operator, we are ready to take the first question.

Operator: Star *1 on your telephone. To remove yourself in the queue, you may press *1 again. Please limit yourself to 1 question and 1 follow-up to allow everyone the opportunity to participate. Please standby while we compile the Q and A roster. Our first question comes from the line of Daniel Kurnos of Benchmark. Your line is open, Daniel.

Daniel Kurnos: Yeah. Great. Thanks. Good afternoon. Scott, Paul, congrats on another great quarter. I guess, first question, the revenue cadence implies a bit of a reacceleration in the back half not to say that the growth has not been impressive. And I just wanna get a sense from you guys, you know, you said in the last call, starting to see, larger customer wins. You flagged the $5 million annualized contracts this quarter. I mean, how much line of sight do you have into stuff like that, and how much is coming from, you know, let's call it the more recently acquired business and how's that mix changed since the April guidance?

Scott A. Beck: Yes. Thanks. Good to hear from you, Daniel. You know, we definitely have been able to have you know, continued acceleration. I would not say that it is accelerating any different than it has been. We have been super pleased with the growth. And the growth has been a combination of you know, scaling, some of the core Gloo offerings like 63 and Gloo AI. At the same time, it is also been able to continue to scale get synergies across the different capital partners that we have acquired, you know, over the years as well.

We have been able to drive really strong organic growth in our core offerings as well as really strong organic growth in the offerings from, you know, the different capital partners. 1 of the great things that we are excited about is being able to see the synergies that are taking place in the cross sell. You know, more and more of the organizations that we are serving you know, they have 1 offering, when we see them get to that second offering, we see a significant step up, almost 2x the revenue. When they get to 3 or more offerings, we are now then seeing that to be, closer to sometimes 5 to 10x.

The volume of what just a single offering should be. So it is really a combination, a combination of the 2. And overall, you know, we are seeing more than 30% sort of coming from a lot of these, you know, organic growth. And the organic growth of the new acquisitions.

Daniel Kurnos: And, Scott, that is a great segue into kind of my next question. I am just trying to understand. Like, when you talked about land and expand. Right? And you just kind of outlined the way that you guys attack that. And I just wanna get a sense from you When you win 1 of these larger contracts, are they taking multiples at once? Do they dip their toe in the water, and then all of a sudden you think that contract can be 10x over time. I just wanna get a sense from you, how much, we know that this is a massive TAM, and you guys are the undisputed leader. With really no competition out there.

But I am just trying to get a sense of how quickly some of these major deals, can expand because you guys have had a lot of very early success, even earlier than I think most of us anticipated.

Patrick Gelsinger: Yeah. Thanks, Daniel. This is Patrick. And I will just say that you know, as we, I think, noted in the formal comments, 30% of our customers over $1 million now are more than 1, which means the large majority are only 1. And, typically, a sale will be a single product area that we then expand 1 or 2 quarters later over time. But most of them start with 1. Right? And some of our sales strategy is to keep things simpler moving forward. But I will say we have had a couple that, you know, we have landed, more than 1 product area at the same time. For them.

And I expect that will become a larger aspect of our sales motion as each of the sales offerings becomes more mature. We have more customers in the land expand, and then we will be able to land expand over time. But so far, it is mostly 1 landing in a quarter. And then we are following it with a subsequent offer later in time. Got it. Thank you, Patrick.

Daniel Kurnos: that is super helpful. And, I mean, you are already putting up the numbers. So excited to see what you guys do next. Thanks, guys.

Scott A. Beck: Thank you. Thank you.

Operator: Our next question comes from the line of Richard Baldry of Roth Capital. Your line is open, Richard.

Richard Baldry: Thanks. We look from, Q4 to Q1, the revenue increase had about a 70% gross margin contribution on the quarter. I am sort of curious if you can look into that and talk about how much would be because of the organic growth and how much might have been sort of cost realignment. that is, you know, 2x where your normal gross margins are sitting today. I am sort of curious how sustainable that sort of drop down could be as we move forward.

Paul Seamon: Yeah. Great question, Richard. Thanks for chiming in. I think there is a balance between the 2 in the quarter. We definitely got some significant benefit from, overall reduction in our operating expenses. That you saw that flow through in terms of, contribution to adjusted EBITDA which was obviously very significant relative to the revenue increase. But I would say that, you know, you have got somewhere between 50-60% of that probably came from the operating expense and the remainder came from just continuing to get leverage. Across the cost basis associated with what you think of as the cost of goods sold. Or contribution margin. Thanks.

Richard Baldry: Then you are still early into some of the larger deals on the Gloo 360 side. I am curious as those, you know, are under your umbrella a little bit longer, are you seeing-- all right, Incremental headcount synergies? Are you starting to see, early cross-selling or upselling opportunities? Or how are the earlier large deals playing out?

Patrick Gelsinger: Yeah. And every 1 of them is causing us to just get more mature, Richard. This is Patrick again. where we are getting more, proof points of different offerings. You know, as we get more and more customers, hey, we already have some level of expertise on some of the tools that we are picking up from them. We already have more maturity in some of the agentic workflows that we are applying to them. And, of course, our HR systems are getting more mature of being able to bring them in, onboard them, and make the, best, application of good HR disciplines to those as well. So I will say every 1 of these is making us better.

We still, I would say, are not fully mature in those offerings because, several of them are ones that we are still picking up and learning. So I think we still have a lot of margin improvement. to get, as well as rapidity of the motions in the ability to onboard and then to be able to commercialize. But the good aspect of this is that every 1 of those that we do yeah, we are now creating the agentic workflows that the next 1 is just easier and faster.

So we just see this as an engine that we are going to be able to re rinse and repeat over and over again, and each 1 of those is showing, more maturity in the offering. So a long way to go. The ecosystem is large, but we are now having more and more proven capabilities that can be applied against them.

Richard Baldry: If I can squeeze 1 last 1 in. When you look at the 5 deals over $1 million, can you talk about, are there any commonalities across those, or are there multiple points you can do those in now? So it is we could sort of see how extensible that is going forward. Thanks.

Patrick Gelsinger: Yeah. And maybe, Scott, you can add as well. But we are starting to see a lot more pipeline in the university segment. In particular, which is 1 that we have highlighted. William Jessup was our first major example. We are now closing, more of those offerings. So that is an area that, as we said, there is over 900 faith based universities in The US. So we have a long path to go. We were clearly a critical mass in some sectors, you know, such as bible translation, campus ministry, and other areas like rescue mission is an area that our work that we have, specifically on reach as well proven. So there is a lot more opportunities there.

And then finally, I think as we noted in our formal comments, we have started to have some success in the Catholic segment, which is very large. Space for us that we are just getting started. So I think more replicable you know, big opportunities that we see the land expand just as enormous pathway in front of us. Scott, anything else you would add?

Scott A. Beck: Yeah. Thanks, Patrick. You know, I really like you know, what you have coined there in terms of land, expand, and expand. Because we are landing and expanding within a specific account. But when we find ourselves into a category, like you know, campus ministry or a category like faith based universities or rescue missions. When we find ourselves getting into a different segment, that segment also has the dynamic of expand as well. And so we have got really the power of landing in the expanding within an account, and expanding again within, you know, a category. And we have been adding categories extremely quickly. Really surprising in terms of how quick the categories are expanding out.

Of the things I would like to, you know, anchor us back in is they are looking for the same thing. Okay? there is a commonality in terms of hey. Help me power back. Help me get more reach so I can have more donors, more constituents, more students, more volunteers, you name it. Really powering that power and reach. And, you know, just being able to then apply AI be able to give them the lower cost, better benefit, and give us, an ever-increasing margin as we bring more AI executed work into the program. Got it. Congrats on a great quarter.

Patrick Gelsinger: Thanks, Scott.

Scott A. Beck: Thank you.

Operator: Our next question comes from the line of Yun Suk Kim of Loop Capital Markets. Your line is open, young.

Yun Suk Kim: Okay. Great. Thank you. Congrats on a strong quarter. So on the EMD business, can you update us on the progress that you have made since the acquisition closed? And for the EMD customers, I know there is, some who are not faith based, customers or organizations. Do you expect the non faith based customer base to show growth there? Or is your near term go to market primarily focused on faith based organizations?

Scott A. Beck: Yeah. So as you are as you are aware, they do have both faith-based and not face based. And we are growing them both. You know, obviously, we have got some obvious synergy. Within, the base where we can do a lot of cross selling. Immediately. But also in the non-faith-based. that is on its own growth plan as well. You know, relatively new. Right? it is just closed at the beginning of this quarter. So we are, you know, 5 or 6 weeks in now. But we are liking what we are seeing. Additionally, you know, Midwestern, which we just went to 100% ownership from 80%, you know, those guys have pretty much the same profile.

They have a significant amount of-- a significant amount of Midwestern is also nonfaith based. it is pretty much about the same percent, say about 1-third faith based and about 2-thirds not faith based. So it is nice to be able to see some of the synergies there between, let's say, a Midwestern and an EMD on the non-faith-based side. So, yeah, they are both growing. We are committed to growing them both. And the last few years of Midwestern, we have grown both sides of it as well.

Yun Suk Kim: Is there an opportunity to cross sell Gloo 360 to the non faith organization customers of EMD?

Scott A. Beck: Yeah. There are. there is no question that the small- to medium-sized organizations are coming up against the same set of issues which is, hey. Help me with my tech. Help me with my reach. And those are common concerns, common value propositions, whether they are faith based or not faith based organization. And everybody needs help applying AI into their specific organizational workflows, And likewise, you know, when you have got a workflow that, you know, helps somebody, you know, engage with employees on an ongoing basis, then that workflow is the same, whether it is a faith-based or a non-faith-based So there is a lot of commonality against that. As well.

Yun Suk Kim: Okay. Great. And then maybe this question is for Patrick, but I know it is very early, but what is been the early feedback on Gloo, like Gloo AI Studio? Was that part of your hackathon at all? Thanks.

Patrick Gelsinger: Yeah. And the early feedback is strong. And obviously, as you open a new service like that, there is lots of learnings. As developers come on, and we are getting more efficient at bringing developers on, bringing the billing system up and operating for them. And we did have a big customer, Hello Bible. That does a consumer chat service move over to Gloo Studio. They were public on LinkedIn or 1 of the other social channels about that and the good experience that we are having. So we are now starting to have, I will say, real customers who are, you know, bringing their workloads onto the platform.

You know, we also as a result of Studio, we will have more to talk about as we go through our virtual hackathon events and then our big hackathon, in the fall. So they will be very heavily featured. And announcements of new capabilities, new services, new customer coming on the platform as part of the hackathon is a big thing when we come up on that in the fall. So overall, we are happy with the momentum that we are seeing. 1 thousand+ developers now on platform. But we have to grow this much faster, much larger, and we believe that we now have a mature offering that will enable us to do exactly that.

Yun Suk Kim: Okay. Great. Looking forward to it. Thank you very much.

Scott A. Beck: Thank you.

Operator: Our next question comes from the line of Jason Kreyer of Craig Hallum. Your line is open, Jason.

Jason Kreyer: Great. Thank you, guys. So was Scott, great to hear the early success with cross sell. Here in the first quarter. Wanted to ask just about the go to market for cross-selling these new solutions to existing customers. Like, if we think about a Westfall or an EMD, how quickly can you get customers interested in the new solutions? How quickly can you get them up and running? And just what that upsell process looks like.

Patrick Gelsinger: Yeah. And, generally, there is a strong, effort in, you know, our, chief revenue officer, Rebecca, runs a very aggressive process across the different sales teams to drive exactly that. We are seeing a good effect, from that already. And I will say we are pleasantly surprised how easy it is to get that process underway. So, you know, we do see that Westfall Group with Masterworks, 360 into Masterworks accounts Servant into our 360 account. You know, these motions are ones that we think have a lot of replicability, a lot of scale. And, overall, we are just building more sales capacity.

We are bringing sales teams on, We are getting more rigorous in our processes to manage large account pipelines. And then, building more cross-sell mechanisms across the portfolio. So we just see ourselves at the beginning of the cycle. And every element of the portfolio gives us more opportunity to cross-sell.

Jason Kreyer: Perfect. 1 follow-up just on the M&A has continued to expand your addressable market. When you think about the bigger customers that you have today, curious what you think your penetration is into the existing base and what I am trying to figure out, you know, how much runway is there ahead with such a large customer base into a large addressable market?

Patrick Gelsinger: Yeah. The runway is truly enormous. that is why we somewhat easily talk about TAMs in excess of 100 billion. This is just a large market. For it. And, you know, when we talk about universities, we now have several closed, 900. You know, to go. And even where we are pretty well penetrated in a few accounts, at this point, you know, we are not well penetrated across the portfolio. So even in our land-and-expand into the account and have room to grow. So we would consider you know, our effective SAM to be in very low single-digit percentages at this point, and the TAM is enormous. The SAM that is reachable is very large.

And we do not see ourselves as anywhere close to saturation on any dimension of the business. Wonderful. Thank you.

Scott A. Beck: Thank you.

Operator: Our next question comes from the line of Ryan Myers of Lake Street Capital Markets. Please go ahead, Ryan.

Ryan Meyers: Hey, guys. Thanks for taking my questions. First question here, have you seen any changes in customer budgets or any other major changes across the ecosystem in terms of appetite for more digital offerings?

Scott A. Beck: Yeah. Thanks, Ryan. Yeah. For sure. I mean, as I said in my prepared remarks, you know, the revenue in this ecosystem grew at 8.2% last year. I mean, you think for a very significant what is an old ecosystem to be able to have that kind of growth is remarkable. And, you know, as a result of that, you know, you get more budget to work with. there is no question that kind of growth in the core donations that are funding in this ecosystem definitely allows us to be able to have, you know, more dollars to work with and we deal with. I would say there is another thing too.

And that is that younger people are reengaging at a bit much bigger and higher number than others in spirituality and faith. That is the that bodes really well. For where we are at in the overall cycle. Because the growth if you look at that growth, and you were to segment that, I would imagine that you will definitely see the younger people having a very significant positive inflow on the market. Not only in terms of there is more dollars to be worked with, No question. But it is just encouraging. Right? Our market is encouraged. You know, they are seeing a lot of a lot of opportunity to serve in the community.

When you have younger people starting to show up, that is a very big encouragement that it is here. Got it.

Ryan Meyers: Thank you. And then second question here. You mentioned 30% organic growth. How much of this do you think will come from new customer wins? Versus new customers expanding their spend?

Scott A. Beck: Yeah. it is 30%+. I mean, we are-- we are above that. But we are very comfortable with that, you know, continued organic growth. But our big driver is new customers. That is what is really driving our growth in terms of you know, the within that organic growth. So much of it is new people that are getting introduced to 360, Gloo AI, Masterworks, you know, Barna, you know, across the board. It is really about attracting new into that and then growing ones that we currently have. Both are happening but absolutely, new names is super important. Patrick, what would you add to that?

Patrick Gelsinger: Yeah. Not too much to add. The opportunity for us as we build our Salesforce is 1 that we just get more and more account coverage over time. And, we are regularly adding more salespeople, you know, to 63, to Masterworks, to our Westfall Group or every 1 of our offerings is getting more sales capacity. And we will be able to invest more into it. We do not see that there is budget limitations even though we do not really fundamentally view that tighter budgets is a bad thing for us. Right? Because, you know, fundamentally, they are looking for cost savings, and we also present cost savings for them as well.

So we do see ourselves in many respects as, not particularly vulnerable to cost issues. But this is a good time for our ecosystem, as Scott has said. it is a good time for our offering. And as we build more capacity to sell and deliver, you know, we do think that we see, you know, very clean line of sight to a rapidly growing revenue customer base and land expand for many quarters to come.

Ryan Meyers: Alright. Thanks so much. That was super helpful.

Scott A. Beck: Thank you.

Operator: Our last question comes from the line of Matthew Harrigan of Benchmark Stonex. Your line is open, Matthew.

Matthew Harrigan: Oh, thank you. Good to join you on the call. You made a reference at the end of 1 of your answers to getting traction with the Catholics. And clearly, you have been focused on evangelicals relative to Catholics or Anglicans. it is interesting. I mean, the Catholic church certainly was arguably the most successful hierarchical global organization for a long time. And obviously, it is unique on the educational side. Both on secondary schools and a lot of universities all that are becoming, I guess, increasingly secularized.

If you really get traction on the Catholic side or some of the other denominations where you are not as penetrated, could you hit a pretty fast, you know, tipping point where you know, at a higher level, you could have a lot of acceptance of a broad bouquet of products relative to, I think, some of the denominations you are dealing with are maybe more on the grassroots. Basis where you get really good, you know, word-of-mouth. But kind of have to convince a lot of people to get momentum Thanks, and congratulations on the results.

Scott A. Beck: Clearly, Yeah. Thank you.

Patrick Gelsinger: Well, I think, you know, first, I would say, that we are probably not far enough along to know the repeatability of the sales patterns yet in the Catholic segment. So I would say we are you know, it is a great question for us to come back to in the future quarters as we have more, Catholic customers. We see more of the sales motion. You know, that said, given the hierarchical nature that you point to, we think that you actually have very referenceable relationships across them as you get success in 1, it will be very repeatable across others.

So we do, you know, for that very reason, think that we will have good sales productivity as we engage. You know, we have also had the most success so far empowering tech in that sector, but we do see that the full range of our offerings could be applicable there. At scale. We you know, we have also had good affinity for some of the AI opportunities that we uniquely have and gaining more momentum with customers there. So overall, I say it is very early for us. But we are super happy because of the size.

And when you look at the size of that portion of the marketplace, you know, archdiocese, you know, across the nation are large. You know, they have large technology needs. And as you say, they are structured. Organized, and, we believe will be very repeatable.

Matthew Harrigan: And could that extend into the university side as well, or is that kind of just a different animal?

Patrick Gelsinger: No. No. We do. We see it as very replicable in the university side. And of the 900 that we have coded, a little bit, sort of 2-thirds, 1-third That 2 thirds are evangelically oriented and 1 third Catholic oriented. So we do hope to have several successes in the university side the Catholic community as well.

Matthew Harrigan: Great. Thank you.

Patrick Gelsinger: Thank you.

Operator: I would now like to turn the conference back to Scott A. Beck for closing remarks. Sir?

Scott A. Beck: Yes. Thanks a lot. I appreciate that. As you could tell in the call, we are super excited about the performance. But we are also really excited about the progress. In this faith and flourishing ecosystem, needs what Gloo is providing. You know, the technology and the marketing reach and then all being powered by AI. It is just incredibly good timing for us to be at the point that we are at. But it is still early. We are still early on our journey as a public company. But, you know, the momentum is strong, and it is growing. We really do have an opportunity to build a category defining technology platform for this ecosystem.

And in doing that, 1 of the things that excites us the most is that we can actually be engaged in shaping technology as a force for good. And if you think about it, the time and the intensity of the technology changes that are taking place right now is 1 of the most consequential periods of change in our lifetime. And to be able to be there and to be able to be on the front lines with these organizations is super encouraging, you know, to our organization. You know? But as we are doing this, we always have to remember that we are serving those who serve. that is the minister, the campus minister, the rescue mission.

The World Child Development Organization. The Global Water Organization, the faith based universities, the churches, and the denominations that serve them. And in doing that, they are out on the front line. And they are out there changing lives for real people. They are changing families. They are changing cities. And, yeah, as we pursue this all together, we are pursuing it so that we can accomplish the vision that we have. And that is a world where every person can flourish, and be all that they were born to be. I mean, that is what fires us up. that is what gets us out of bed in the morning and gets us pressing so hard.

And, you know, you all as shareholders are part of that. You are making a difference in these organizations You are being able to give them access to capabilities and capital that allow them to scale what they love to do and what they are called to do. So we are grateful. We are grateful for the champions that we serve, and we are grateful for the shareholders that are serving on behalf of them with us. So on behalf of all of us, we say thank you. For tuning in today. You know, God bless you. God bless you and all your efforts and Gloo and its efforts as well. Thank you.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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