Highlights From BMO Virtual Software Conference

BMO Capital analyst Daniel Jester shares highlights from the BMO Virtual Software Conference.

The analyst commented: "DAY: We provide takeaways on Dayforce following our fireside chat with CFO Jeremy Johnson. The improved bookings environment has opened the potential for better growth momentum, building over the course of FY25. More platform deals, growth in managed services, and Wallet are vectors of strength. While progress has been made to bolster FCF margins, several additional headwinds will fade next year. Thus, there could be improvement in the financial model into CY26, albeit with residual macro uncertainty.

IOT: We provide takeaways on Samsara after our fireside chat with VP Corporate Development & IR Mike Chang. Following 1Q reporting last week, which showed some near-term macro headwinds (link), our conversation dug into the factors impacting the business and why the company believes these are temporary (including steady win rates). There remain deep expansion opportunities with current fleets, plenty of white space in safety and non-vehicle solutions, and opportunities outside the U.S. and in adjacencies. We anticipate a constructive product update later this month at the company's investor day.

PCOR: We hosted a fireside chat with Alex Geller who runs Procore's investor relations at our Virtual Software Conference. Across multiple vectors, CY25 is a transition year amid a tough macro (but not worse), the company's go-to-market changes, and an announced CEO transition. A category leader in a software vertical where digital tool usage has significant opportunity to expand, we anticipate evidence of sales execution and leadership changes as the near-term catalysts, and more AI updates are likely in the fall.

PCTY: We provide takeaways on Paylocity following our fireside chat with CEO Toby Williams. In a dynamic macro, the company is focused on driving long-term consistency in the business on both the top and bottom lines. Exiting FY25, management noted the core drivers of growth appear mostly intact. We expect the company to set prudent FY26 guidance in August as macro variables are uncertain. The company continues to indicate their plan for more normalized margin expansion next year, and full integration around Airbase should be complete later in FY26.

PTC: We share our key takeaways below following our fireside chat with PTC CFO Kristian Talvitie. In a tough macro the company is focused on what they can control, including execution on recent go-to-market changes and product innovation. On the former, delivering against the lowered ARR outlook in 4Q could be an important proof point, while macro volatility dampens the new bookings outlook. These "self-help" measures could result in improved growth beyond this year. The trajectory of FCF generation remains solid, and strong measures are in place to drive efficiencies."

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