การประชุมแถลงผลประกอบการไตรมาส 2 ปีงบประมาณ 2026 ของ Gloo (GLOO): รายได้เพิ่มขึ้น 188%, ปรับเพิ่มแนวโน้มผลประกอบการ

สรุปประเด็นสำคัญ

• รายได้ในไตรมาส 2 ของปีงบการเงิน 2026 เพิ่มขึ้น 188% เมื่อเทียบกับช่วงเดียวกันของปีก่อน และเพิ่มขึ้น 12% เมื่อเทียบกับไตรมาสก่อนหน้า สู่ระดับ 46.6 ล้านดอลลาร์ โดยได้รับปัจจัยหนุนจาก Gloo 360, Workspace และธุรกิจที่เข้าซื้อกิจการ ได้แก่ Masterworks, Westfall Gold และ EMD
• ต้นทุนรายได้ปรับตัวดีขึ้นสู่ระดับ 64.0% ของรายได้ จาก 74.8% ในช่วงเดียวกันของปีก่อน ขณะที่ EBITDA ปรับปรุงแล้วปรับตัวดีขึ้น 3.2 ล้านดอลลาร์เมื่อเทียบกับไตรมาสก่อนหน้า มาอยู่ที่ -8.3 ล้านดอลลาร์
• Gloo ปรับเพิ่มคาดการณ์รายได้ตลอดปีงบการเงิน 2026 ขึ้นอีก 5 ล้านดอลลาร์ เป็น 200 ล้านดอลลาร์ ซึ่งรวมรายได้จาก Cedarstone แล้ว โดยผู้บริหารยังคงเป้าหมายการทำกำไรสำหรับ EBITDA ปรับปรุงแล้วในไตรมาส 4
• บริษัทคาดว่ารายได้ในไตรมาส 3 ของปีงบการเงินจะมีจำนวน 55 ล้านดอลลาร์ และ EBITDA ปรับปรุงแล้วจะอยู่ที่ -3.5 ล้านดอลลาร์ ซึ่งได้รับการสนับสนุนจากกิจกรรมการโฆษณาและการระดมทุนที่แข็งแกร่งตามฤดูกาลของ Masterworks และ Westfall Gold
• ปัจจุบัน Gloo มีลูกค้าที่มีมูลค่าสัญญารายปีมากกว่า 1 ล้านดอลลาร์ จำนวนมากกว่า 30 ราย ซึ่งรวมถึงลูกค้ารายแรกที่มีมูลค่าสัญญาเกิน 10 ล้านดอลลาร์ นอกจากนี้ พอร์ตสถาบันอุดมศึกษาของบริษัทยังขยายตัวสู่สถาบันการศึกษามากกว่า 40 แห่ง
• ผู้บริหารระบุว่า AI ประยุกต์, เวิร์กโฟลว์รูปแบบเอเจนต์, การขายเกี่ยวเนื่อง และการควบรวมกิจการเป็นกลไกหลักในการเติบโต บริษัทได้เข้าซื้อกิจการเสร็จสิ้น 5 แห่งหลังจากเข้าสู่ตลาดหลักทรัพย์ และคาดว่า M&A จะยังคงเป็นส่วนหนึ่งของกลยุทธ์ในปี 2027

ข้อมูลทางการเงินที่สำคัญ

ผลการดำเนินงานทางธุรกิจและการดำเนินงาน

การเติบโตของรายได้มาจากทั้งธุรกิจ Powering Tech และ Powering Reach โดยผู้บริหารอ้างถึง Gloo 360 และ Workspace ร่วมกับ Masterworks, Westfall Gold และ EMD ว่าเป็นปัจจัยขับเคลื่อนหลักเมื่อเทียบกับช่วงเดียวกันของปีก่อน

กลยุทธ์ของ Gloo มุ่งเน้นไปที่การส่งมอบผลลัพธ์ทางธุรกิจมากขึ้น แทนที่จะเป็นเพียงการให้บริการซอฟต์แวร์เพียงอย่างเดียว ผู้บริหารกล่าวว่ามีการนำเวิร์กโฟลว์ที่เปิดใช้งานด้วย AI มาใช้ในการมีส่วนร่วมของผู้บริจาค การเปิดระบบอัตโนมัติของศูนย์บริการช่วยเหลือ การบริหารโครงการ และการตลาด เนื่องจากงานย้ายไปสู่เอเจนต์มากขึ้น บริษัทคาดว่าการปรับปรุงโมเดลและต้นทุนการส่งมอบที่ต่ำลงจะช่วยสนับสนุนการประหยัดเชิงขนาดจากการดำเนินงาน

การขายเกี่ยวเนื่องกำลังกลายเป็นช่องทางการเติบโตที่เป็นทางการมากขึ้น Gloo ได้แนะนำโปรแกรมผลตอบแทนการขายที่ครอบคลุมพนักงานขายในทุกธุรกิจของตน ขณะที่การเข้าซื้อกิจการก็นำมาซึ่งผลิตภัณฑ์เพิ่มเติมและความสัมพันธ์อันดีกับลูกค้าที่มีอยู่เดิม ผู้บริหารกล่าวว่าการเติบโตของรายได้ส่วนใหญ่ในปัจจุบันมาจากลูกค้าที่มีอยู่เดิม

Cedarstone ได้เพิ่มลูกค้าตลาดระดับกลางมากกว่า 250 ราย พร้อมทั้งขีดความสามารถด้านบัญชีและบริการผู้บริจาค ผู้บริหารเห็นศักยภาพในการขายเกี่ยวเนื่องบริการของ Cedarstone ให้แก่ลูกค้าของ Masterworks และนำเสนอผลิตภัณฑ์ของ Masterworks ให้แก่ฐานลูกค้าเดิมของ Cedarstone

นอกจากนี้ Gloo ยังขยายการดำเนินงานไปยังมหาวิทยาลัย หน่วยงานบริการสังคม และองค์กรที่ให้บริการแก่เยาวชน โดยปัจจุบันบริษัทให้บริการแก่มหาวิทยาลัยมากกว่า 40 แห่ง เมื่อเทียบกับการได้ลูกค้ารายแรกที่เป็นมหาวิทยาลัยเมื่อเพียงไม่กี่ไตรมาสก่อนหน้า

ในการพัฒนา AI ทาง Gloo ได้เปิดตัว Glue Code ภายใน Gloo AI Studio โดยความสามารถนี้เป็นการจับคู่เอเจนต์ที่สร้างขึ้นเพื่อวัตถุประสงค์เฉพาะกับโมเดลที่ได้รับคัดเลือกสำหรับงานเฉพาะด้าน ผู้บริหารกล่าวว่า Studio ให้บริการแก่ทีมภายใน ลูกค้าเดิม พันธมิตรด้านเงินทุน และนักพัฒนาบุคคลทั่วไป โดยคาดว่างาน Gloo AI Hackathon ประจำปีจะดึงดูดนักพัฒนาหลายร้อยคน

คาดการณ์แนวโน้มโดยผู้บริหาร

ผู้บริหารคาดว่าไตรมาส 3 ของปีงบการเงินจะมีการเติบโตเมื่อเทียบกับไตรมาสก่อนหน้าสูงที่สุดของปี โดยคาดว่าการเติบโตจะชะลอตัวลงในไตรมาส 4 เนื่องจากเทศกาลคริสต์มาสและเดือนมกราคมอยู่ในปีงบการเงินของ Gloo ซึ่งสิ้นสุด ณ วันที่ 31 มกราคม

บริษัทระบุว่าแนวโน้มตลอดปีแสดงให้เห็นว่ารายได้จะเพิ่มขึ้นมากกว่าสองเท่าเมื่อเทียบกับช่วงเดียวกันของปีก่อน ขณะที่ค่าใช้จ่ายในการดำเนินงานยังคงทรงตัวในเชิงจำนวนเงินดอลลาร์ นอกจากนี้ ผู้บริหารยังคาดว่าจะเกิดการประหยัดเชิงขนาดจากค่าใช้จ่ายในการดำเนินงานเพิ่มขึ้นในช่วงไม่กี่ไตรมาสข้างหน้า

ความเสี่ยงและประเด็นที่ต้องจับตามอง

• ไตรมาส 3 ของปีงบการเงินได้รับประโยชน์จากปัจจัยฤดูกาลของการโฆษณาและการระดมทุน ขณะที่ผู้บริหารคาดว่าการเติบโตจะชะลอตัวลงเล็กน้อยในไตรมาส 4
• กลยุทธ์การเติบโตขึ้นอยู่กับการรวมกิจการที่เข้าซื้อ การบรรลุผลประโยชน์ร่วมกันด้านต้นทุน และการเปลี่ยนความสัมพันธ์กับลูกค้าที่ได้มาจากการซื้อกิจการให้เป็นโอกาสในการขายเกี่ยวเนื่อง
• Gloo บันทึกค่าใช้จ่ายในการปรับโครงสร้างองค์กรจำนวน 4.4 ล้านดอลลาร์ในขณะที่รวมสายธุรกิจเข้าด้วยกัน โดยผู้บริหารยังคงรักษาสมดุลระหว่างวินัยด้านต้นทุนกับแผนการเพิ่มพนักงานขาย
• ต้นทุนโมเดล AI และโทเค็นสามารถเปลี่ยนแปลงได้ทั้งสองทาง ผู้บริหารกล่าวว่าโมเดลการใช้เหตุผลที่มีความซับซ้อนมากขึ้นอาจมีต้นทุนสูงขึ้น แม้ว่าโมเดลโอเพนซอร์สและราคาโทเค็นที่ต่ำลงจะช่วยลดค่าใช้จ่ายในการส่งมอบได้ก็ตาม
• แนวโน้มรายได้ตลอดทั้งปีรวม Cedarstone เข้าไว้ด้วย ทำให้การดำเนินงานและการรวมกิจการที่เข้าซื้อมีความสำคัญต่อคาดการณ์ดังกล่าว

ประเด็นสำคัญจากการถาม-ตอบกับนักวิเคราะห์

ความชัดเจนของรายได้: ผู้บริหารกล่าวว่ารายได้ประจำและรายได้ที่เกิดขึ้นซ้ำ ปริมาณงานในมือที่แข็งแกร่ง และการขายเกี่ยวเนื่องที่เพิ่มขึ้น ช่วยให้เห็นภาพรวมรายได้ในไตรมาส 3 และ 4 ของปีงบการเงินได้อย่างชัดเจน อย่างไรก็ตาม บริษัทไม่ได้ระบุสัดส่วนที่ชัดเจนระหว่างยอดขายรอรับรู้รายได้ตามสัญญา (backlog) กับยอดขายใหม่ที่ต้องการ

การขยายฐานลูกค้า: ลูกค้าส่วนใหญ่เริ่มต้นด้วยการใช้ผลิตภัณฑ์เดียวของ Gloo แต่บริษัทจะนำเสนอพอร์ตโฟลิโอที่กว้างขึ้นในระหว่างการหารือระดับองค์กร ลูกค้าที่เป็นมหาวิทยาลัยบางแห่งได้รับเอาผลิตภัณฑ์หลายตัวไปใช้ตั้งแต่เริ่มต้น โดยกลยุทธ์ของ Gloo ยังคงเป็น "land, expand, and expand" (เข้าถึง ขยายผล และขยายผลต่อ) ซึ่งครอบคลุมทั้งการเติบโตของส่วนแบ่งเงินในกระเป๋าของลูกค้า (wallet-share) และการขยายไปยังกลุ่มลูกค้าในอุตสาหกรรมอื่น ๆ

กลยุทธ์ M&A: ผู้บริหารระบุว่าโอกาสในการเข้าซื้อกิจการยังคงแข็งแกร่ง และกล่าวว่า M&A จะยังคงเป็นส่วนหนึ่งของกลยุทธ์ในปี 2027 Gloo คาดว่าจะยังคงแสวงหาโอกาสอย่างเหมาะสมและใช้เงินสดอย่างมีประสิทธิภาพ โดยธุรกรรมในอดีตมักใช้เงินสด 20% ถึง 25% ตั๋วสัญญาใช้เงินของผู้ขาย (seller notes) หรือผลตอบแทนตามผลงาน และอาจใช้หุ้นประมาณ 50%

ผลกระทบทางการเงินของ AI: ผู้บริหารจัดลำดับการเร่งการนำเสนอผลิตภัณฑ์แก่ลูกค้าว่าเป็นผลตอบแทนทางการเงินที่ใหญ่ที่สุดของ AI ในปัจจุบัน ตามมาด้วยต้นทุนที่ต่ำลงเนื่องจากงานย้ายไปสู่เอเจนต์ และมูลค่าผลิตภัณฑ์ที่ปรับตัวดีขึ้นผ่านระบบอัตโนมัติ นอกจากนี้ การรวมศูนย์ข้อมูลยังเริ่มกลายเป็นจุดเริ่มต้นสำหรับโครงการ AI ของลูกค้าอีกด้วย

วิศวกรรมแบบติดตั้งล่วงหน้า (Forward-deployed engineering): Gloo มองว่าวิศวกรรมแบบติดตั้งล่วงหน้าเป็นจุดต่างที่สำคัญ เนื่องจากลูกค้าจำนวนมากขาดบุคลากรผู้เชี่ยวชาญด้านเทคนิคภายในองค์กร Gloo 360 ใช้โมเดลนี้เพื่อให้บริการศักยภาพในระดับ CIO และ CTO ขณะที่บริการ Midwestern และบริการปรึกษาช่วยสนับสนุนการติดตั้งใช้งานและการเปลี่ยนแปลงองค์กรที่นำโดย AI

หนทางสู่การทำกำไร: ผู้บริหารคาดว่าการปรับตัวดีขึ้นของรายได้และ EBITDA ปรับปรุงแล้วจะเร่งตัวขึ้นในไตรมาส 3 ของปีงบการเงิน ก่อนที่จะชะลอตัวลงตามฤดูกาลในไตรมาส 4 ทั้งนี้ บริษัทยังคงความมุ่งมั่นที่จะทำ EBITDA ปรับปรุงแล้วให้เป็นบวกในไตรมาส 4 ของปีงบการเงิน

บันทึกการประชุมแถลงผลประกอบการฉบับเต็ม

บทถอดเสียงฉบับเต็มของการประชุมทางโทรศัพท์ผลประกอบการ

คำชี้แจงจากฝ่ายบริหาร

Operator

Thank you. Thank you for standing by and welcome to Gloo's fiscal second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question, you will need to press *11 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, press *11 again. Please be advised that today's conference is being recorded.

Now it's my pleasure to turn the call to the Chief Marketing and Communications Officer, Oliver Rall.

Oliver Roll

Thank you, operator, and thank you to all of you for joining our fiscal second quarter earnings conference call. We will be discussing Gloo's performance for the second quarter ended July 31st, 2026, as well as providing guidance for our Q3 and full year 2026. Joining me on our CEO and co-founder Scott Beck and CFO Paul Seaman. Our executive board chair and head of technology, Pat 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 Q3 and fiscal year 2026. These statements are based on Gloo's current expectations, but are subject risks and uncertainties relating to future events and or the future financial performance of Gloo. Gloo 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 differ materially from our forward-looking statements can 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 January 31st, 2026, and in our subsequent quarterly reports on Form 10-Q. Our SEC filings are also available on Gloo's investor relations website at investors.gloo.com and the SEC's website. In addition, during today's call, we'll discuss certain non-GAAP financial measures, including adjusted EBITDA. We 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 metrics, 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 July 31, 2026.

And now I'll turn the call over to Scott.

Scott Beck

Thank you, Oliver, and thank you for joining us today. Year 2 was another solid quarter with revenue increasing 188% year-over-year to $46.6 million. Since becoming a public company, we've been able to improve our financial performance every quarter. We have met or exceeded guidance each time and are raising our full-year revenue guidance once again. Our progress continues to demonstrate that our strategy and our execution is on track. One of the key drivers is our leadership and applied AI for the faith and flourishing ecosystem. This strengthens every layer of our platform, from trusted AI capabilities like Gloo AI Studio to AI-powered solutions like Gloo 360 to helping customers transform their organizations through an agendic workflow. Our approach to applied AI reflects a broader shift in how AI native companies are creating value.

We are increasingly delivering the work and the outcomes our customers need, rather than simply providing a better tool. As AI models improve, that work becomes faster, more efficient to deliver, creating greater value for our customers and expanding operating margins for Gloo. That makes continued advancement in the frontier models a powerful tailwind to our overall strategy and growth. When the models get better, we get better. We are seeing that in our customer momentum. Customers are trusting Gloo with more of their technology and growth needs. They're engaging with more solutions across our platform, as well as adopting capabilities that we've added through acquisitions.

All of this is translating into strong top-line growth while we continue to operate with cost discipline and make meaningful progress toward adjusted EBITDA profitability. Since becoming a public company, we've improved adjusted EBITDA every quarter and continue to approach break even in Q3 and are committed to achieving adjusted EBITDA profitability in Q4. Our full year guidance more than doubles revenue in 2026 year over year while holding operating expenses approximately flat in absolute dollars. To support that growth and profitability trajectory, we completed meaningful cost actions in Q2, building on the actions that we took last year. We are demonstrating that we can integrate new capabilities, meet significantly greater customer demand and grow revenue without building a proportionately larger cost base. Behind these results is a large, growing, fragmented, and underserved market. According to Kentley Insights, faith-based organizations generated over $265 billion in revenue in 2025. That's up 8.2% from $245 billion in revenue in 2015, and in 2024, roughly double the pace of U.S. GDP growth. At the same time, organizations are under increased pressure to modernize technology, operate more efficiently, strengthen donor development, and scale their missions. Our customer needs align directly with our strategy to power technology and to power reach with applied AI. Powering technology helps organizations modernize their systems, data, and workflows so they can spend more time focusing on their mission. Powering reach helps organizations strengthen marketing and engagement, expand awareness, and build the donor relationships that fund their missions so that they can increase their impact in the world. Underpinning both is our leadership and applied AI for the faith and flourishing ecosystem. Organizations are choosing us because they want a trusted partner that can deliver better outcomes with the resources they already have.

That's exactly where Gloo is positioned to add value. The people and organizations that we serve are amazing. They are changing lives for good and transforming communities in thousands of different ways around the country and around the world. These strategic customer relationships matter. We are closing larger, more strategic relationships that expand both the value that we deliver and the markets that we serve. We now have more than 30 customers representing over $1 million each in annual contract value. In Q2, we reached another important milestone with our first customer exceeding $10 million in annual contract value. In addition, with the acquisition of Cedarstone, we've added over 250 new mid-market network capability providers or customers who are well positioned for cross-selling.

We also expanded further into social services and youth serving organizations where our technology engagement donor development capabilities lift the technology burdens and help them scale. There are many people and youth in this country who are really struggling. And these organizations are making an enormous difference in their lives and are better able to serve them in partnership with Gloo. These relationships create significant long-term growth opportunities as customers adopt more of the Gloo platform. Universities continue to emerge as a strong growth vertical, with over 40 universities in our current client portfolio. Universities face many of the same challenges we see across the broader ecosystem. They have complex technology environments and fragmented data.

They have pressure to operate more efficiently. They need to increase enrollment and they need to strengthen their donor development. Those needs align very well with our platform capabilities. We've added and expanded several university relationships during this quarter, and we have a strong pipeline of additional opportunities ahead. We are not only adding customers, we are also deepening the relationships we already have. In this market, trusted relationships are a non-negotiable. Each capital partner we add to our platform brings its own deep, trusted customer relationships into Gloo.

This creates an increasingly powerful ripple effect within our customers and within the segments. This supports our overall strategy that we call land, expand, and expand. This means once we land with a customer, we not only expand with that specific customer, but we also expand across the segment as well. For example, we already have many of our $1 million plus customers adopting solutions from multiple Gloo business units and capital partners. This is an important indicator of the opportunity that lies ahead. AI is another strong tailwind for Gloo. More organizations are turning to us to apply AI in practical ways that advance their mission, grow their revenue, and make their operations more efficient.

We're bringing the power of agentic workflows to organizations in areas like donor engagement, help desk automation, project management, and many more. These are tangible applications of AI that also give customers better insights into their enterprises while reducing repetitive administrative work and allowing them to focus more on their mission aligned outcomes. And importantly, as we increasingly deliver the work itself, we rapidly embrace the AI model improvements to even more efficiently deliver the work. Through our forward deployed engineering model, we work alongside customers to solve specific operational challenges. And then we turn what works into capabilities that can scale across the ecosystem. On September 8th, the company announced Glue Code, a new agentic building capability within the Gloo AI Studio that helps developers get more from their tokens by pairing purpose-built agents with the right models for each task. Developers will have the opportunity to use Glue Code at our annual Gloo AI Hackathon in October, when we expect hundreds of developers to build new applications for the faith and flourishing ecosystem.

Our acquisition strategy is a core part of building a stronger, more durable company. Since becoming a public company, we've completed five additional acquisitions. Westfall Gold, XRI, EMD or Enterprise Marketdesk, our remaining ownership stake in Midwestern Interactive, and Cedarstone. That's with EMD closing in Q2 and Midwestern and Cedarstone, which have closed in Q3. Cedarstone is a good example of the cross-selling opportunities that we discussed earlier, with Masterworks providing a natural channel to bring Cedarstone capabilities to more customers. Each one adds capabilities, expertise, customer relationships, or market access that strengthens the broader Gloo platform. As we integrate them, we create new growth opportunities and reduce duplication as we integrate their operations.

Our acquisition synergies are working. They improve revenue, financials, and expand what we can do for customers while driving synergies across our platform. This is a powerful flywheel that will ultimately drive meaningful profitability for Gloo. So when I look at Q2, I see significant significant momentum. Our market is massive, growing, and technologically underserved. Our largest relationships are getting bigger and broader. New verticals are opening up. Applied AI is moving into meaningful operational workflows. And the capabilities that we have added across Gloo are increasingly working together one platform.

We still have a lot of work ahead of us, but we believe the direction of the business is clear and strong. We're building the leading technology platform, including our capital partners and business units for the faith and flourishing ecosystem. And we're demonstrating that we can grow the platform with increasing rating leverage. We will remain focused on execution through the second half of the year and delivering on our commitment to achieving adjusted EBITDA profitability in Q4. With that, I'll turn it over to Paul to walk through our financial results in more detail.

Paul Seamon

Thank you, Scott. Our momentum continued in the second quarter as we exceeded both revenue and adjusted EBITDA guidance, with strong year-over-year growth from both our Powering Tech and Powering Reach businesses. Q2 revenue was $46.6 million, up 188% from the same period last year and 12% sequentially from Q1. Year-over-year growth was driven by Gloo 360 and Workspace, as well as acquisitions including Masterworks, Westfall, and EMD. As we continue to strengthen our platform with new capabilities, we are seeing strong cross-sell momentum across our products and solutions. Our leadership in applied AI enables us to deliver essential business outcomes to our customers. We are delivering the work rather than just the software tool they have to manage. In fact, our platform solutions are helping customers reduce the number of software tools they have to license and pay for.

This is driving strong revenue growth in platform solutions at $22.9 million in Q2 2026, up 209% from $7.4 million in Q2 of last year. This was driven by Masterworks, Westfall Gold, and EMD. Platform revenue totaled $23.69 million in Q2 2026, an increase of 170% from $8.7 million in Q2 of last year. This was driven by Gloo 360, Masterworks, and Workspace. Cost of revenue in the quarter was 64.0% of total revenue, an improvement of 10.8 percentage points from 74.8% in the prior year period. This significant improvement was driven by increased scale across our businesses, as well as a favorable shift in mix from our acquisitions over the past year. We expect incremental improvement to continue. Adjusted EBITDA improved $3.2 million sequentially to -$8.3 million.

This improvement reflects revenue growth across our businesses, along with cost restructuring actions we completed in the quarter to integrate our acquisitions and streamline our corporate services. Also note that general and administrative expenses in Q2 included an impact from the Cedarstone acquisition, which closed in August. As we previously stated, we do not adjust for these costs in our non-GAAP results. In the quarter, we took a $4.4 million restructuring charge, primarily for severance costs related to the integration of our business lines. While we will always seek opportunities to improve our cost structure, we believe the business is in a strong position to continue our focus on growth. Investing in adding sales people to drive our top line in the coming quarters. In the quarter, we completed a successful follow-on offering raising $23.7 million of additional capital, net of underwriting fees, commissions, and offering expenses.

As of July 31, 2026, we had $39.3 million of cash and cash equivalents. Last week, we extended the term of our senior secured loan of $13.2 million by one year to April 2028, providing us additional flexibility in 2027. I'd like to now turn to our full year 2026, and Q3 outlook. Increasing our full year 2026 revenue outlook by $5 million to $200 million inclusive of the Cedarstone acquisition. We expect revenue to be $55 million in the third quarter and adjusted EBITDA to narrow to -$3.5 million, a nearly $5 million improvement over the second quarter. We expect the third quarter to provide a significant step up in our performance as it is the strongest advertising and fundraising season for Masterworks and Westfall Gold. We continue to expect adjusted EBITDA to reach profitability in Q4 2026 as we maintain cost discipline.

One other item to note, for Q3 we expect a weighted average share count of approximately 90 million shares. With that, I'll turn it back to the operator to take your questions.

Operator

Thank you, and as a reminder, if you do have a question, simply press *11 to get in the queue and wait for your name to be announced. To remove yourself, press *11 again. Please limit your questions to one and one follow-up, please. One moment while we compile the Q&A roster. First question comes from Richard Baldry with Roth Capital. Please proceed.

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Richard Baldry

Thanks. The improvement on the P&L was pretty marked in the quarter, with most of it driven by improving gross margin dollars. I guess I'd expected a bit more of that improvement driven by, you know, cost synergies. So looking forward on the improvements, can you maybe talk about how much more cost synergies you still have ahead and maybe how much of the improvement you expect driven by more step-ups in gross margin dollars like we saw in the second quarter. Thanks.

Scott Beck

Hey, Rich, Scott. Yes, we did make real good progress in the margin for this quarter. As we look forward, we're going to be seeing more leverage as well in the operating expenses. So you can expect that as we move forward over the next couple of quarters.

Richard Baldry

Okay, my follow up would be when you look into the second half and you're getting more of a recurring revenue base, how much of the outlook do you think is driven by contracts you know, contracts are signed, clients to be deployed out of what you might call a backlog versus how much of it is a go-get that's still to be done? You know, captured by your sales teams sort of a visibility question. Thanks.

Scott Beck

Yeah, from visibility standpoint, we do have a very strong pipeline. We've got the ability to have good levels of projections as we're looking out over the next couple quarters. And that is as a result of having strong recurring revenue because we do have a lot of our revenue that is in that recurring and reoccurring category, number 1. And then number 2, we've got good visibility into the pipeline. So we feel real solid about what we're looking forward to in Q3 and Q4.

Richard Baldry

If I can squeeze 1 extra one in. Um, you know, you said before that you don't need to do incremental acquisitions for the forecast that you put out there. How do you still feel about sort of the M&A pipeline activities in there, interest levels in there? And maybe if that's more of a '27 thing, you know, how do you feel about the outlook into '27 for M&A? Thanks.

Scott Beck

Yes, thanks. You know, and also just, you know, finishing up on the on the last question that you asked, you know, in addition to pipeline, what we're, you know, from a revenue standpoint, what we're also seeing is increasing cross-selling across our different capital partners and our different offerings. We'll delve a little bit deeper into that maybe later under some other questions. As far as the M&A pipeline, the pipeline's strong. You know, we've had extremely good past success with the acquisitions that we've done. You've been able to see that the performance, not only in terms of, you know, them building the base, but also us being able to help them organically grow once they're once they're with us. We're going to be opportunistic in M&A. And, you know, we as we've always been, we're going to be extremely cash efficient.

Uh, you know, typically we're 20% to 25% cash, some seller notes or performance, and then maybe 50% stock. So we see that as being continued. As we look into 2027, for sure, we're going to expect that M&A is part of our strategy as it always has been.

Richard Baldry

And we're excited about what we're seeing. Great. Thanks. Congrats on a great quarter. Thanks.

Operator

Our next question comes from Jason Kreyer with Craig Hallum. Please proceed.

Jason Kreyer

Thank you guys. So look, you're up to 30 customers now that are producing over $1 million in revenue. By the way, congrats on the first $10 million customer. You maybe generally talk about the journey that those customers have been on with Gloo. Maybe just where those relationships started and how you've been successful continuing to expand wallet share over time.

Patrick Gelsinger

Yes, and some of the customers, this is Pat, um, some of those customers have been uh, customers of different portions of Gloo for quite a while. Like a number of them would have been Masterworks customers for a number of years, and we've been growing those uh, relationships and now cross-selling for more of the uh, portfolio. Some have been more recent, you know, 360 as an example is uh, only a 1 and 1/2 years old as an offering in the marketplace. So those customers are more recent. Westfall Gold would be another example that we've had long customer relationships with them as well as they've been doing business for 3 decades now. So it really crosses the spectrum of recent to long-term customers. But what you're seeing very systematically is we're able to increase the size of the relationship.

And we're doing that by doing it more with them in 1 product area than being able to cross sell and this quarter we've formalized our sales compensation programs so cross selling across all of our sellers, you know, to further incent and we're seeing good momentum from that cross selling already. So we do believe there's a lot more to do there. And as Scott said in his formal remarks, we call it land, expand, expand. And we're able to then also move into other customers in similar verticals. And for instance, 40 universities now, and I think it was maybe 2 quarters, maybe 3 quarters ago, we talked about our first university win, and now we're having very broad success across that category. So overall, land, expand, expand, and seeing that quite consistently now across the portfolio. And now with 30 plus at $1 million, we're certainly going to be giving periodic updates on the next milestone. You know, for them, we're looking forward, and several of them are approaching $10 million, so we definitely see that there'll be updates there.

So overall, our sales momentum is strong, and we see that we have many synergies to harvest in the future.

Jason Kreyer

I look forward to a continuation of those trends. Um, I'm going to kick it over to Paul just on the numbers. Um, great to see the leverage in the model. As we get closer to Q4, pivoting into EBITDA profitability, talk about any aspirations beyond that. Should we be expecting like some seasonal dips in confidence? Profitability or do you anticipate continuing to drive that positive EBITDA into future quarters? Thanks.

Paul Seamon

Thanks, Jason. To start out, we expect the third quarter to be the strongest sequential growth in terms of quarter to quarter, and that's driven by Westfall Gold and Masterworks. Seasonally, it's very strong for them in advertising and in fundraising. And then as we think about moving into fourth quarter, that has more moderate growth given that we have both Christmas and January falling in our fiscal year, which ends January 31st. And that's the seasonality we'd expect to see going forward with the business mix. So that'll carry over into next year. So there will be some up and downs quarter to quarter with third quarter generally being the strongest sequential growth. Also moving into the year for 2027, as we think about moving beyond adjusted EBITDA, our focus is also getting to pre-cash flow positives in the back half of the year.

So the combination of momentum and revenue, cost efficiency, being careful with the top and bottom line, sets us up for a good 2027.

Operator

One moment for our next question. It comes from Yun Suk Kim with Loop Capital Markets. Please proceed.

Yun Suk Kim

All right, thank you. Congrats on a strong quarter again. Scott, since you mentioned it, if you can talk about the cross-sell motion, maybe more details. Obviously, you have a lot of products and service offerings, so a lot of different entry points for a customer to your platform, but also, obviously, expand once you land. Thank you. How much of their business today is driven by existing customers versus new customers? And, you know, I think Pat alluded to it a little bit, but is there a specific sales incentive to drive cross-sell? And how is the sales organization structure to drive that cross-sell versus, you know?

Patrick Gelsinger

Customer acquisition thing. Thank you. And just adding a little bit to my earlier comments, clearly, you know, we do see cross-sell as a important aspect of our organic growth and leveraging, and maybe I'll ask Scott when I finish here to talk a little bit about Cedarstone, because part of that acquisition was very much driven by the cross-sell opportunities that we saw there. We did roll out a formal sales compensation program this quarter, crossing all of the Gloo sellers across all of our businesses. We have a distributed sales force, and now they're being compensated to drive cross-sell, and and we're already seeing good momentum from that. So we do see that we're already seeing good introductions and good pipeline creation, but with the sales incentive now, we're formalizing that, tracking it more aggressively, and seeing good momentum from that. So the bulk of our revenue growth comes from existing customers, but we're being very focused on continuing to expand the opportunities within those customers and within the verticals like the university one that we talked about that we're seeing momentum in. And the acquisitions are clearly giving us additional customers that were then having the opportunity to cross sell.

Scott Beck

Into and maybe Scott maybe talk a little bit more about Cedarstone there. Sure, thanks Pat. Um. You know, as we said before, every capital partner that we add, you know, brings capabilities, but they also bring trusted relationships and trusted, you know, trusted, yes, relationships. You know, Cedarstone specifically, super excited about it. It's a great business with really awesome leaders. It's about 20 years old. Been big, massive growth opportunity from our standpoint in cross-selling as a result of the core businesses that they're in. First, they do the accounting, right? They actually close the books. And we love this. We're actually taking over responsibility to deliver the work because then as we have improvements in technology, improvements in AI, improvements in genetics, we can deliver that work more effectively, give them better results, do it with better margins for ourselves. And then in addition to the accounting, they're also doing what we call donor services.

So they're providing donor services and accounting into these organizations. And there's over 250 new names, okay? These are new names that are being served by Cedarstone. And I can tell you, you know, I had the opportunity to personally meet and have conversations with over 20 of Cedarstone's larger customers. I was amazed at the the the depth of the relationship, the commitment, um, the long term nature of these relationships and uh, super excited. Uh, almost every 1 of those is a potential Masterworks customer or Masterworks partner and likewise many, many of the Masterworks partners are potential Cedarstone customers. So we're actually seeing that in spades with Cedarstone. And just like to say welcome, Cedarstone, to being part of the Gloo family here.

Yun Suk Kim

Okay, great. My second question, congrats on introducing the Glue Code today or yesterday. I lose track of days nowadays. So obviously, that's a sign that Gloo AI Studios gaining traction out there, continuing success with your hackathon events and whatnot. So if you can just give us an update on the kind of traction that you are seeing with developer community out there on the Gloo platform. Are these development efforts coming from established partners, like, you know, including your capital partners, or are you also seeing momentum with smaller startups and individual developers?

Patrick Gelsinger

Yeah, and the answer is yes to the question. We're able to go back into existing customers and be able to have them start to take advantage of Studio. We have a defined focus on our capital partners to have them become Studio partners as well and we're using it for our own internal purposes as well and we're measuring every 1 of the internal users as well as they're building more and more their applications using Gloo Studio. As you comment, you know, Glue Code exciting new offering really bringing a Gen AI workflows to the coding process. When you think about Cloud Code, Cursor, Copilot, Codex, each 1 of those is clearly seen, you know, the coding application create significant momentum for the platform. And having just rolled it out yesterday, we're anxious to see the market response, but already we have quite a number of new sign-ups coming on to the platform. And obviously, we timed that concurrent with the start of the hacking window for our coming hackathon next month. So clearly, Glue Code being available with the hackathon, we clearly want to drive many of the, I'll call it more retail developers who are individuals coming on to the platform as well.

So, Studio covers the full spectrum of our internal, our customers, and the individual user that are aligned. Clearly, part of the Glue Code value proposition is a cost-effective development platform that preserves you know a differentiator for us versus many of the broad market offerings. And we do think that will be a very sustainable value proposition for us. And overall, you're going to see us continue to add capabilities to Gloo Studio going forward as we're just going to increment keep putting more and more value into the platform. We hope to have many joining for the Hackathon as the hacking window is now open and we're super excited about the partnership with YouVersion, who's come along to be our lead partner for the Hackathon. And that relationship is 1 that's really continues to gain great value for us and YouVersion across many of the portfolio offerings. So look forward to giving updates next quarter on the adoption of Glue Code, as well as the results of the hackathon.

Operator

Okay, great. Thank you so much. Our next question comes from the line of Matthew Harrigan with Benchmark StoneX. Please proceed.

Matthew Harrigan

Oh, thank you. I'd like to take credit for this, but there's an executive at IBM, I think, who recently said you don't need your HR chatbot to understand quantum mechanics with respect to optimizing the use of models and constraining token costs. I mean, some of what you do really seems to be kind of industrial AI where you can really identify the ROI is pretty discrete, but how do you balance once the cost of using those models with the excitement of really being at the cutting edge that I know Pat especially can relate to since he was probably a teenager.

Patrick Gelsinger

Yeah, and I wasn't using AI when I was a teenager, but the opportunity, and this is what we do, and essentially when you think about studio, we're acting like an open router, a guard rails, a coding environment, all together rolled into 1, and thus we're picking the lowest cost models, often open source models, to give the cost-effective platform, but where appropriate or where the customer would pick a certain model, we reflect that choice or a better model for their use for specific activities. So we are managing as part of the Studio offering, I'll say, the picking the best model for whatever the particular task would be that the customer, the developer is utilizing. So in that way, we're able to potentially manage costs on their behalf, still produce for us and deliver superior experiences. And you know highly automated now, so as new models become available, we're immediately reflecting them into the Studio offering, updating pricing for customers as they flow through quite quickly in that regard. And operating as a, you know, leading developer platform and studio environment. We're also increasingly then being able to turn work into agents. And for that Gloo 360, you know, like help desk is now highly run as an agentic workflow. Our marketing offerings from Midwestern are now agentic workflows and increasingly we're able to replace work with agents and, as I already said, we're optimizing the costs and operational environments of those agents.

So it's producing great work at increasingly lower costs, which is a key market and driver for us over time.

Matthew Harrigan

There's been some interesting discussion in The Economist, and I think The Telegraph, on some of the sophistication of the LLMs, Magisterium AI, I guess, out of the Vatican, literally trying to make answers to moral questions, more religion-based versus very reductive and secular, you know, I know that's not a huge priority. And I know it can get, you know, kind of, you know, Joseph Ratzinger complicated, probably if you go into some depth. I mean they're talking about like putting you know Greek and Latin texts on online and everything like that. Is that something you're looking at as well? I mean you're more Evangelically or Protestant oriented, but is that kind of abstract? Or is that something you're really actively engaged in now? Yes, maybe a customer example.

Patrick Gelsinger

That Hello Bible is an example. They were running on OpenAI and they've moved over to Gloo now, Gloo Studio. And they are specifically doing a chat service that's evangelical. So, you know, there would be a strike zone to the question that you would have. You know, we're very familiar with Magisterium. We hope to win their business over time. And really, I'll say any values-oriented user, and we think of them as B2B2C.

You know, we don't focus on C as much directly, but we focus on B2C. Focus on businesses that are focusing on consumers and supporting them. And for instance, the hackathon, quite a few of those applications that will be created as part of the hackathon will become the future Hello Bippies that are doing exactly what you described. So from our purpose, very much the strike zone of the kind of developers, applications and users that we want to be supporting across all of the Gloo customers as well. Sometimes those are going to be using for very specific ministry purposes. Sometimes they'll be broadly consumer available, but all of those will be part.

Scott Beck

Of the Gloo platform and Gloo Studio target audience. Great. Hopefully we'll get to your hackathon this year. Thanks. Very good. Thank you. You know, and all of that ties into just the fundamental thought of, you know, 1 of our core concepts is to shape technology as a force for good. Because that technology is out there, it's being evolved and improved at amazing lightning speed and how do we keep shaping that so that it can be used for good.

Operator

Thank you. Our next question comes from Dan Kurnos with StoneX. Please proceed.

Daniel Kurnos

Great, thanks. Before I get my question, Scott, that's obviously a good point, given some of the news we've seen about people fleeing Anthropic for some pretty negative use cases. Um, but Pat, I do want to double down a little bit on Matt's first question. You kind of alluded to this. I mean, we've seen LLM token prices fall by 60%-ish or so since May. And I think people kind of lose sight of the ramifications of that. You guys benefited multiple multiple ways from that. So maybe just talk through that as well as how you think about kind of widening your competitive moat through the multi-agent strategy.

And do you see people or already seeing people increase platform usage as token prices continue to come down and you keep building out those use cases for the community?

Patrick Gelsinger

Yes, it's pretty amazing. We're seeing token prices go up and we've seen them come down. Because more sophisticated reasoning models, right, you've seen those become more expensive. At the same time, as more open source models are becoming available, you're seeing the lowering of that. It is 1 of those environments where you just got to ride the wave. And for us, we're going to keep riding this wave. And every time token prices come down, we're going to benefit. We're going to benefit directly, right, because it's going to be lowering our costs.

And in many cases, we'll be reflecting that through our customers as well, which we're drive more customers onto the platform, right, and as we scale it. We're definitely seeing that behavior as our token usage continues to rise and we're monitoring that and running metrics on that quite regularly. You know, if there's a single day that token usage isn't going up, I'm asking the team what's going on, right? I mean, we really are building very good effectiveness in managing our Studio environment. But this is something where when you start thinking about these broad agentic workflows, somewhat the sky's the limit. And as I've said separately, we see no end to the demand for tokens going forward. It really is an unlimited capacity. They're way too expensive today. Even as you said, prices have come down.

We're still far, far from where we see they need to get to over time. And obviously, as Scott said, tech for good. We're uniquely pursuing many of these use cases that really are so aligned with technology for good. Bible translations, conquering languages, many other places of the world, enabling ministries to take, I call it, any $ that's given to a ministry that isn't going to be used. Ministry purposes is a bad dollar. We see that generative AI gives us enormous opportunity to give leverage to every 1 of those customers that are serving others in more effective ways.

Daniel Kurnos

Got it. No, that makes sense. And then I know you guys spent a lot of time talking about the cross-sell motion and really. Incremental color there. I'm just curious, are we sort of to this scale yet when you guys have new enterprise conversations that were, and I know you just, when you guys do acquisitions, you pick up customers, but say you're picking up somebody who's tangential or just outside the ecosystem in your pipeline or you're looking at now, are you able to now bring them on with a multiprocess? Product sales strategy or are we still kind of in the 1 and then land, expand, expand type phase?

Patrick Gelsinger

Most of them start with 1, but almost every customer engagement is presenting the full portfolio. Where is the interest the highest and that will become the first follow-up for it. But in some cases, we've had customers come on to a multi uh offering relationship from day 1. And uh a couple of the university customers come to mind specifically that way, you know, where we were on day 1, bringing them on multiple offerings on the platform. So most end up starting somewhere, right? And we think that's just good management of the relationship. But we're always presenting the portfolio and finding more and more interest across different offerings. So it portends well to the future of accelerating of the cross-sell motion. Scott, anything you'd add?

Scott Beck

Yes, I would say plus 1 to everything that Pat just said. And, you know, but as you noted, when we do an acquisition, they already have an installed base. And so obviously that installed base already starts with that 1. And we're super excited about that because they've got then, you know, you know, long-term, you know, very, very substantive relationships already in place. And then when we're doing acquisitions, we're also doing a crossover analysis. And we're typically finding when we do an acquisition that we're going to have 10% or 15% crossover analysis in terms of where we already have multiple value props serving that customer even before the acquisition. So we see it as an opportunity to add in both ways.

Daniel Kurnos

Got it. And if I could just tie it all together, because I just don't want this to get lost in the wash. I know, Paul, you mentioned that there is clearly some seasonality in Q3, but I think if I directionally strip that out and then adjust for the acquisitions, you can see both from a revenue and profitability perspective that the growth is accelerating as is the margin power in Q3. I just don't want that to get lost in the noise.

Paul Seamon

It is accelerating in Q3 where we'll have a nice step up sequentially on the revenue side as well as we've got it on the adjusted EBITDA side. And then, like we said, it moderates in the fourth quarter with some of the seasonality.

Daniel Kurnos

Okay. Well, thanks, guys, and it's nice to see the continued progress. Appreciate all the color.

Operator

Thank you. Our next question comes from Ryan Myers with Lake Street Capital Markets. Please proceed.

Ryan Meyers

Okay, guys, thanks for taking my questions. Just sort of as a follow-up to the last 1, I mean, can you give us what the organic growth was in the second quarter and then how we should think about that the rest of the year?

Scott Beck

You know, we've got very strong organic growth. We've benefited from it all year long. We'll continue to benefit from it. But in addition, you're seeing not only the organic growth, but you're seeing the benefit of being able to do the M&A with new organizations. And then as they come on, they basically help organic growth in 2 different ways. Number 1, we get them into our organization. Organic growth um motion to be able to help them scale what they're already doing. But the second 1 is that then that's new offerings for our current customers, which also gives us a next level of organic growth.

So yes, organic growth continues to be very strong. It's an important part of what we're doing. And you'll continue to see that flow through the P&L in terms of better margin and increased revenue growth.

Ryan Meyers

Okay, got it. And then obviously a lot of questions today on AI. So I just, you know, more directly, where is AI having the biggest financial impact for you guys? Is it just helping win customers, increasing customer spend, is it lowering delivery costs, or is it just, you know, generally reducing your guys' internal expenses just so we kind to encapsulate everything you guys have said.

Patrick Gelsinger

Yeah, we would say probably the biggest impact is accelerating the offerings to customers today. And this would be examples like Masterworks and 360, where it's accelerating. As those efforts turn people into agents, it's lowering costs. Sort of the second benefit that we're getting. And then it's increasing the offering value itself as we're able to essentially turn, you know, help desk into an immediate response or being able to fully automate marketing flows for customers. So it's finally, it's improving the attractiveness of the product options themselves. So I'd say it's somewhat in that order, but to us they're actually pretty tied together, right? Because you know it really is all of them coming together that what AI is enabling for us. So we see it across the board but driving more customer offerings, right, driven by cost savings and improving the offering itself.

All 3 of those are largely being done as a result of the AI capabilities that we're increasingly building into the offerings. Over time, you're going to see us just bring more and more of that value to bear. And for it, we meet every week with our leadership team. We're reviewing different AI offerings that are being pursued, driving more accountability toward how We're driving the cost and the benefits of those, getting more disciplined with the sales enablement for those, we're finding areas like data in particular, being an extremely interesting way to get started with customers around AI, because most AI projects because you don't have good access and good consolidation of data. So that in particular is becoming a great offering for us, starting with customers with data, which is the enabling enablement pathway for almost every AI use case. Starts with the data. So it's really across the board of our offerings and we look forward to updating you more particularly after the hackathon next month.

Ryan Meyers

Got it. Thanks for taking my questions.

Operator

Thank you. Our next question comes from Tim Wong with Citizens JMP. Please proceed.

Unknown Speaker

Hi, thanks for taking my questions. I wanted to ask about FDEs. You completed the acquisition of EMD and are acquiring the remaining stake in Midwestern, both of which expands your forward deployed capacity. I'm curious how you think about deployment and implementation as the bottleneck on AI and how much would you say you're winning because you have FDEs?

Patrick Gelsinger

Yes, it clearly is a key element of the uh offering for us. Midwestern is a great complement, because in many cases people just don't have the talent. And we have 1 of the best talent pathways, literally in the industry, much less in the faith and flourishing community. So having talent is a powerful enabler for us and we're finding more and more value. So if anything that business area is finding more attractive this to us, we have now added the international component. Brazil is another area, so we get lower costs, also co-locating with our customers in those locations. And then our 360 offering is entirely based on forward deployed engineering, where we are essentially becoming their CIO and CTO for those organizations, which, you know, them a skilling level they'd never be able to achieve themselves, which further accelerates their ability to drive their AI transformation.

So I'd say for Midwestern and 360 in particular, those are probably the most powerful areas. But then even areas like Servant are high-end consulting options. Is transformational for customers where literally we're like McKinsey for this ecosystem of being able to guide the transformative process, which today it's almost always driven by an AI model of how they can change their business operations in a pretty fundamental way. So those would be some of the examples, but, you know, forward deployed engineering is a key theme across all of those 3.

Unknown Speaker

Great. And as a follow-up, as you look at your M&A pipeline, I wonder if there's a piece of the full solution that isn't there yet. You spoke to an opportunistic approach, but, I'm curious whether that has to do more with the people and the relationships you can bring on board or if there are customers who maybe stop at 1 offering and don't go to 2 or have 2 offerings and don't go to 3, if there are reasons or gaps in your product solution that you think you could fill. Thank you.

Scott Beck

Yes, as we're looking at M&A pipeline, we're evaluating all those different components. We're looking at a number of different things. You know, 1 are capabilities. Are these incremental capabilities that we don't currently have that would be good capabilities to add? Definitely, number 1. Number 2, we're also looking at like... the customer base? You know, where are we at from a customer base standpoint? And is that a customer base that's important, you know, to be able to draft in? You know, you'll also find that certain of these organizations have, you know, more expertise, let's say in 1 area of um 1 of the denominational areas versus another. You may find somebody that's stronger in the Catholic market or stronger in more of a Southern Baptist market. So we're looking at it really from a number of different perspectives, capabilities, customer base, and then also what are the areas where they've they've found favor and how do those fit together and create greater synergies and further advance the flywheel that we find with M&A.

Patrick Gelsinger

Yes, maybe if I just add to that, the 2 examples that we touched on, I think really clarify your comments nicely, Scott. You know, EMD, we saw Workday and many of our customers. So we saw a Workday capability. And EMD was a perfect fit for Cedarstone. As we looked at that, we saw a huge synergy potential, particularly, you know, with our marketing offerings. So those 2 were driven by different reasons, but ones that, again, fit exactly what we said. We're enhancing our platform offerings and we're driving more synergy in the marketplace.

Operator

Thanks so much. Thank you. Ladies and gentlemen, this will conclude our Q&A session. I will pass it back to the CEO, Scott Beck, for closing remarks.

Scott Beck

Thank you, Operator. And thanks everybody for joining in today's call. I just want to make a few final comments before we close. First, super pleased with the progress that we're making. Just across the board, the maturity of the organization, the organizations that we're being able to acquire, just super pleased with the progress that we're making with that progress. And just a reminder, this is such a large fragmented market. Now, as I said earlier, it remains significantly underserved by technology. You know, our existing customers are growing and our verticals are continuing to expand.

The universities are a great example, you know. Now we're up to 40 that we're serving there. A lot of the expansion is being accelerated by these great capital partners that we've got out there. We couldn't be more proud of the capital partners in the organizations. We named quite a few today, but there's 15 more that are just doing a great job. They bring great expectations and trusted relationships. So from a business standpoint, the opportunity in front of us is really significant.

But there's another bottom line that matters to us as well. And that's the missional impact that these organizations that we work with are serving and helping every day. These organizations that we serve their changing lives every day. And it's really an honor to serve them. I can't say enough about the work that they do. In fact, if you look at it, faith aligned organizations are estimated to provide about 40% of the vital human services across large U.S. cities. A few examples the organizations that we serve.

The rescue missions that we serve had served over 10 million meals last year alone. These rescue missions, we serve some of the largest rescue missions in the United States. In addition, those same rescue missions are helping people escape from human trafficking. These are real stories of life change based on the organizations that we serve. The campus ministries that we serve are active on thousands of campuses throughout the United States, and they're reaching hundreds of thousands of students each year, being able to help them. The churches that we're serving are active in their communities as well. You know, it's not well known, but there's over 100,000 churches in the United States that have embedded recovery programs helping people find freedom from addiction.

And that's addictions all across the board. And that's why I'm so excited about what's happening here is both of the bottom lines. We have an opportunity to build a powerful, durable economic enterprise that creates great long-term value for our shareholders. And at the same time, we get to strengthen organizations that are transforming lives and making changes in communities every day. That's ultimately what Gloo is about, is building a strong economic enterprise that helps people flourish and helps these organizations thrive so that they can do more of what they're uniquely called to do. Thanks for taking time to join us today. May God bless you. May God bless the people that we serve and the organizations that we serve and also the work ahead of us.

Thank you for joining us today, and thank you, operator.

Operator

Thank you and this will conclude our conference. You may now disconnect.

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