So we're going to get started. We're really glad to have glue here. It's not often I get to work with people of their caliber. My focus has always been small to micro cap sort of companies. Usually by the time someone's had the successes that you two gentlemen have had, you're not in my world. So it's really extraordinarily pleased to have you with us today. So why don't maybe we start with both of you introducing yourself and give us a little bit of your background and try not to be too humble. Because I think it really matters to the company how much background you have and experience you both bring to the table. It's very unusual. So let's let our investors really kind of understand how much firepower you bring to the scale.

Great, we'll do that. Rich, thanks for having us. I'm Scott Beck, co-founder of Glue. We've been around almost 15 years now. We'll talk a little bit more about that. Before I was running Glue, I had the privilege of being involved with Blockbuster Video as president and chief operating officer from store one to store 5,000, Einstein Bagels as chairman and CEO, Home Advisors, which is now Angie's, Ancestry.com, a number of different businesses. but during and always in either the founder or ceo uh position in those those businesses before uh however when we sold blockbuster to viacom in 93 like a billion years ago when we sold uh blockbuster to viacom we made pretty good money and so then what we did is we

created a family office and we started doing a lot of donative funding into the faith and human flourishing ecosystem which is the system that we serve at glue and we'll talk a little bit more about that yeah Pat Gelsinger so I've been in technology this is year 46 for me in tech so I started when I was four years old but you know literally i started at intel at 18 years old so 34 years at intel rose to be ceo uh ceo of vmware uh president of emc so uh you know extraordinary uh career so if you've used usb wi-fi microprocessors or cloud i helped create them uh when my granddaughter plugs into the usb stick she says thank you papa so you know it's been uh you know pretty extraordinary tech journey you know I've been associated with glue for about a decade as investor board board chair and post my Intel retirement became head of technology for glue and somewhat like Scott you know I've been investing in the faith ecosystem you know I've started the number of charities and philanthropy work but also found their technology sucks right and glue is fixing that right so every time you give a dollar to a charity you're getting like 80 cents worth of value because their technology sucks if we turn that into a dollar dollar 20 dollar 30 you know we're creating extraordinary leverage right on hundreds of billions of dollars right and you know over a trillion dollars of economic impact in the world today right in the US alone right going through philanthropic organizations and when you look at glue if we go to the next slide you know it is an enormous TAM right that we are reaching into and we break the ecosystem in the two sides what we call the network side and the organization side on the network side you know these are organizations that literally could be you know a billion plus large right you know organizations campus ministries worldwide relief organizations you know large organizations that are not tech orgs but need tech right for it and that side of the ecosystem we estimate 130 billion of tam you know most of our businesses on that side of the ecosystem about 70 percent on the other side is many of these individual organizations that are being serviced by the network partners And this could be your local church, your local parish, your local recovery organization as well. And there's a large TAM on that side. On the network side, this is a sales-led motion that we have. We are selling to these organizations our capabilities, which we'll describe a bit more in a second. On the other side, this is a product-led motion. And these could be small churches. It's a reasonable-sized organization, but it needs to be a digital motion to effectively sell. Overall, as you see on the slide, well over $200 billion of TAM. This year, we're a $185 million revenue organization reaching into over $200 billion of TAM. We have lots of market in front of us, and we're essentially uncompeted in serving this market. It's built on trust. You have to have long-term trusted relationships to sell to these organizations.

We don't compete with McKinsey's, Tata's, or anybody like that. we compete with do-it-yourself right and in the ai boom these organizations can't keep up and that's what we're stepping into and we're seeing our business accelerate you know like pat was saying it's it's so important because you know people will say oh wow you know that little church down the street how can that be a big business well the reality is that there's over 250 billion a year of donative capital coming into this ecosystem. And as Pat also said, the left-hand side, those are the network capability providers. Those are the denominations. Last month, we closed the Assemblies of God, one of the largest denominations in the world. We took over all of their infrastructure. The same month, we also closed the Archdiocese of Kansas City. ones taking over their infrastructure. Now, you know, those are both denominations, right? But it's also important to realize they're about as far on the theological spectrum as you can get. The Assemblies of God, those are speaking in tongues and prophecies. And, you know, you've got high mass at the Catholic Church in Kansas City and that archdiocese. We're also covering things like Bible translators. There's close to $4 billion a year in the United States going into Bible translation right now. That concentrates into about 12 different organizations. A year ago, we got our first organization, Whitcliffe, $5 million a year ARR customer for us. Since then, we've gone from having one Bible translators to 10 out of the 12. We've closed 10 out of the 12. So what happens in this ecosystem is when you get one of those, you tend to get the rest. They work together. Yes, they're somewhat competitive, but in reality, they're way more collaborative than they are competitive, and we use that to our advantage to be able to use our trust, our success, and be able to do more. Campus ministries, humanitarian aid, universities. Pat, talk about what we just got done with universities.

Yeah, universities, there's 900 faith-based universities in the United States, right? You know, of it, you know, an average revenue is over $50 million for those organizations, right? If you just say they're spending 4% or 5% on IT, you know, they have real IT budgets, but they're not keeping up. And as we start to win those organizations, and we just won our first one, you know, a few months ago, now we have a pipeline of over 10 of them, right? They can't keep up with technology. we're stepping in to be their technology, their AI, and their marketing partner. If we go to the next slide, the two things that we fundamentally do for these organizations are power tech and power reach. Power technology, they can't keep up. They can't run their databases. They can't run their ERP, CRMs, et cetera, and they have no hope of getting in front of the AI wave. Power and reach, for the most part, these organizations are donor-fed, right? Their revenues come from donors who are supporting those missions and causes. And our biggest business today is actually marketing services that we provide to these customers, enabling them to more effectively reach their audiences. Underneath both of them is an increasingly AI-driven digital platform that's enabling them to have more refined reach into the market, more agentic tools to transform their IT infrastructure. You know, we take over, we become technology, so we might take 30, 40 people that used to work for a Bible translator, they become a glue employee, they become 20 technology, now infused capabilities, and tens of agents running those services. And every day we turn a person into an agentic workflow, we improve margin, and we improve the customer experience. And this is what we're now doing at scale on a very repeatable way. So powering reach, powering technology on an AI platform that's values-based. Our customers want to know they're doing things that align with their values, new data stores, new chat services, and increasingly agentic workflows.

And as we said on the network capability providers, it's getting closer to 75% of our revenue is on that side. and 30% to 25% of the revenue is on the churches and the frontline organizations. We use a sales motion on the network capability providers and we have a product-led motion on the churches as they're smaller sales, so that's a product-led motion. If you look at what we're getting done financially, it's pretty staggering. Two years ago, we were at $23 million in revenue. We just gave guidance. We pre-announced Q4 around $93 million up from 2023 last year, or 23 in 2024, $25 million, $90 million, and we've given guidance to $185 million for 2026. Of that growth, about half of that, 40% growth rate on the $100 million run rate at the end of the year, will be organic growth this year. So we're organically growing at about 40%, and then we have a couple acquisitions that we'll do this year, which will basically take us to 185. The analysts have us at $300 million for 2027. And, you know, we're pushing hard toward those numbers. And then likewise, from a profitability standpoint, we just gave guidance on Q1. We told them that we would be at the better end of the range for Q4. So that might put us at, you know, 18.5 or something negative, but then you'll see a very significant improvement to maybe 12 million of negative EBITDA, crossing over, approaching profitability in Q3, and solidly profitable in Q4. So we're making great progress, leveraging revenue, leveraging AI, leveraging the cost, getting the cost out of the system, and then just, you know, improving margins. so that's a high level review of where we're at with glue and you know the bottom line is that we have two bottom lines one is you know we're very serious about building a great business both of us are intense business guys but we also have trust in the system and we believe in the system, and we've got the commitment to serving this ecosystem with the best technology, with the best reach, so that they can do more in terms of changing the lives that they're all committed to changing.

Over to you, Rich. Now it's your turn to do the job.

My nerves will probably hopefully carry us through this. Let's start with M&A. M&A has been really important to the company. And, you know, when you showed the slides, the network capability providers, obviously a very natural place for you to go. So how do you decide, you know, prioritize, pick, you know, what you need to do and who you think is the most attractive targets?

Yeah, so first of all, you know, we've done M&A of organizations that have been on our platform. So one, we know them, okay? The second one is they're best in class. So whether it's donor services, Masterworks is, you know, a great, they've been around 35 years. Donor services, they're really great at. Westfall Gold, we just added here at the end of the year. they're the cream to cream for the top-end donors. If you want to pull together events and if you want to pull together data-driven strategies for million-dollar donors, that would be Westfall Gold. Everyday donors, that would be Masterworks. So that's a good example. And we've been working with both of those organizations, Westfall Gold for seven years before we bought them, Masterworks for probably five years before we bought them. Another good example is Barna. Barna is the gallop of the faith ecosystem. You wouldn't know Barna, but if you're in this ecosystem, you know Barna and you revere Barna and their research. We've been working with Barna for five years. That also helps us on the donor side. Why don't you talk a little bit about what we've done on the tech side.

And, you know, we integrate companies to also build out the technology platform. And companies that we require last year, one was XRI, which happens to be the best AI language company in the industry. And our ecosystem has been worried about language since it began, right? Translating the Bible, reaching educational materials content, and they are the leading provider of long-tail languages. There are 7,000 languages, 20,000 total dialects. Only about 100 of them are digitally conquered today. We've got a long way to go. They're the leading technology, and they're now fully integrated into the Glue AI capabilities. So we're acquiring for revenue. We're acquiring for market reach for credibility, but we're also acquiring for technology. Now, overall, our acquisitions are uncompeted, right? There was a period 15 years ago where PEs were acquiring some of these companies that was seen as not successful for the PEs, not successful for the mission alignment. So for the most part, we're able to be very effective using cash, low multiples, high stock components to keep those companies highly motivated. for glue success so very effective right at our multiples for acquisition uncompeted and they want to continue executing their mission furthermore this year is a year to be less focused on acquisitions and more focused on profitability so we'll be doing a couple one of those is already done westfall gold second one is well in sight now it's much more about you know consolidating getting the profitability, getting the platform really well integrated, even as we'll continue to use acquisitions to accelerate the growth rate. But fundamentally, the foundational business rich, you know, we want to build a great foundational business. I see the organic business being a rule of 40 business going forward, right? We're able to have high organic growth rates, we get to profitability, we'll sustain profitability, and then we add to those capabilities with M&A.

So what I think is interesting, too, is in almost every case, the founders stay with Clue. Can you talk about how that's helped you sort of, you know, build a leadership team and your culture by keeping that?

Yeah, and, you know, when the founder, you know, they're on mission. You know, yeah, they want to create a company, they want to create an organization, but what they really want to do is execute a mission. You know, and that mission, you know, might be associated with child trafficking. That mission might be associated with donors, et cetera, they go across. So if we enable them to execute their mission more effectively and we bring them capital, we bring them market reach and better technology, to them, this is the best day of their lives because now they're able to accelerate their life purpose. So we have essentially all of the founders are still part of Glue today. and we're giving them the platform to accelerate their missions, and that really enables high retention rates of personnel. It also enables us to be, I'll say, the employer of choice in the category as well because in many cases they didn't have good tech tools before. Now they do. They didn't have good market reach. Now they do. We've also given them some equity liquidity, right? So they're bought in for the long term, but they also see some ability to see wealth generation as well.

Can't overstate how important trust is in this ecosystem. Everybody knows that relationships make a lot of things go and work, but this ecosystem is a whole other level. And so not only Pat, myself, we've both been 40 years donors and investors and board members and catalytic leaders in this ecosystem from a foundation, our own family capital. But when we do these acquisitions, we're basically bringing in a massive trust network. David Kinnaman has been, Barn has been out there for 40 years, as I said, the gallop of this ecosystem. I mean, the tentacles of trust and relationship. You know, Steve and Brian from Masterworks, 35 years they've been building that business. You know, so the trust transfer that we're layering in is really what makes this ecosystem very unique and gives us a massive competitive advantage in terms of being able to do not only uncontested M&A, but uncontested, you know, service providing into this ecosystem. I mean, when we're providing, doing GLUE 360, you know, we're not responding to an RFP. We're going in. We're basically being able to, on an uncontested basis, make a presentation to a board, get it closed in a really short period of time. Can we talk a little bit more about GLUE 360?

I don't think everyone necessarily understands what it can do.

And what GLUE 360 is, essentially, we are forward deploying our resources to become the IT and technology infrastructure of the customer. Let's take one of these Bible Society organizations that we've already completed this with. They had 30 people doing their tech department. On day one, they became Glue employees. So we literally have taken over their technology department. And then we begin the journey of stabilizing what they have and transforming what they Some of those personnel were past their expiration date, right? So we handle managing the people aspects. We then upskill them. We give them modern, you know, centers of excellence for their, you know, services for ERP, CRM, technology for security, right, et cetera. So we are modernizing their environment, but then we begin a transformation journey with We're returning it increasingly into agentic workflows, you know, to enable their mission. You know, one of the Bible societies, we ran their marketing campaign on exactly the same dollars year on year as the prior year, and we had 10x return, right? So imagine somebody who's, you know, essentially seeing 10x return of the same marketing campaign they ran the year prior, right, the same expenses for that, with 10x return of their response rates for people to support their ministry. Extraordinary results. These organizations are not able to keep up with technology. AI has been this accelerant. We're coming into that gap in substantial ways. And Glue 360 is becoming sort of that beachhead service. But once we win one Bible translator, they all want to move on the same platform because they're all working together. So we get good cross-sell within the category. But then we're also able to introduce them to the other services, you know, like our marketing services, like our consultative services as well, because we have become so deeply embedded into those organizations, so deeply trusted. You know, this design, as I say, when we win one of these customers, they're not going anywhere for decades because we truly have become their technology partners. So very sticky and uncontested.

I want to circle back just briefly, but you touched on how long you've known some of these companies, too. So when companies are very M&A-driven, a lot of times, you know, they have a white paper, they put a lot of logos on it, But there's no affinity. No one's known. You don't even know if they're for sale. It feels very ad hoc. You're very different because you have worked with a lot of these companies for decades. So talk about how important those relationships are to your ability to bring them into the glue family.

Yeah, no, that trust has been developed over a long period of time. And not only that, but functionality. Like Pat said, we're, you know, with Barna, delivering them reach, powering them with reach, powering them with tech. All right, so we're already working together. We know each other.

We trust each other.

You know, it's clearly that it's going to be synergistic for us and for the other partners. We have a conversation. You know, Barna is an example. We own 51% of. Masterworks, 100%. You know, Westfall Gold, 100%. So sometimes we'll own a controlling interest, always a consolidatable controlling interest. But sometimes we'll leave, you know, some minority interest out there in order to, you know, they want to keep running and have that ownership. And we're flexible in terms of how we do that. So, yeah, it's really important.

Yeah, and the way that that trust network gets then leveraged into customer sales is very powerful. You know, we mentioned Westfall Gold. We had a customer call with the next university that we wanted to bring on to the platform. Well, Westfall Gold's had a trusted relationship. And in fact, one of their members is becoming a board member of that university. So that easily becomes a sales for 360, which easily become a sale for Masterworks. So the cross-sell, the trusted relationship, all of these create an ecosystem of momentum that we're now just really starting to see that accelerate. and the revenue numbers are starting to demonstrate that significant acceleration.

So I'm talking every day with investors and everyone about AI all the time. It's such a transformative time we're in. Your ability to bring that into this system, I think, is really impressive. So let's have a few questions to talk about here. So how will you institute AI internally to help the company? We'll start there. We'll go to how you can help externally. But internally, how do you see it changing the company, which you're building in real time as we go?

And the first thing would be, even before we layer AI internally, where we've described Glue 360, where essentially we become the IT department for these organizations. So the first thing we're doing is running Glue on Glue. So Glue is becoming a customer of Glue 360 as well. So it's even more foundational than that. And the more that we're running that way, it's becoming essentially the pipe cleaner for how we're transforming our customers. Now within that, we're seeing in particular agentic workflows as transformational, where we can turn people processes into agentic workflows today. And to me, that is the massive unlock. But the only way that agentic workflows are possible is if you have a common data infrastructure. right if you don't have data repositories that are able to be interacting and leveraging with each other you can't do any of those kind of use cases so data you know has always been the foundation so we've built data right we have a full set of apis and services now right on top of that we're building uh these agentic workflows we're applying that against our business processes right you know so we're essentially you know our sales people are now getting ai generated customer portfolios, both priorities of customers for cross-sell as well as AI generated documentation for sales call. Introduce this. This was a reference. This is what they're doing over here. This is probably the highest need of those customers, so it's transforming how we're running our IT, but also how we're running sales operations. We just launched internally, for instance, our first finance agent. We're now trying to say, can we transform how we do audit and finance close using agentic workflows internally. So a lot of these and of course every one of our coders is now being given a token quota and a set of agentic coding tools. The productivity of our developers is exploding right in the face of what's been well documented across the industry. But in our ecosystem very few have the competency to do that.

Yeah. Our ability we, you know, Pat, you know, said clearly, you know, as we take over infrastructures and we replace people with agents, that's massive margin expansion, and, you know, gives us great leverage into the next, into the next, into the next. But in addition to that, what's happening with AI is it's the camel, it's the straw that has broken the camel's back. These large ministries, you know they're not for profits they already can't afford the tech talent and now you know you throw ai on top of that that's really why glue 360 is exploding in its growth because they're just waving a white flag of surrender they just can't keep up anymore and so it's not only are we using it in our infrastructures but it's actually driving a lot of the pipeline because they just can't keep up and and so you can use a lot of AI that let's call it off the shelf for some of these agenda processes but what you can also bring to your ecosystem is a safe AI engine

that it works talk about how that's different than what you know comes off the shelf from other yeah you know and you can imagine you know that we have uh you know we leverage the many models of the industry. And, you know, if you come to the developer studio that we released a few weeks ago, you know, for our ecosystem, you can have an Opus model, you can have a open AI model, etc. are all there.

Yeah, 20 models that you can use.

But we also then offer that with full guardrails, right? What are guardrails? Well, our ecosystem cares about things like suicide prevention, cares about things like theological accuracy, cares about things like scripture referencing. So we've built a full harness that they can say, great, we can become your Crusoe that enables you to access all of those models, but we also enable a full set of services to have all of the guardrails that this ecosystem cares about. And with that, then they can have an API that simply says, give me your model with the guardrails appropriate to my use cases and that's becoming a meaningful differentiator and imagine that you're a christian university and that you're excited about making open ai available to your students and they've just released adult mode right you know on campus for open ai i can now make open ai safe for those universities to deploy because we've built a full guardrail system. Imagine that your YouVersion, which is now a billion devices have the Bible app on it. One billion and accelerating growth rate at this point. And they're having people for Bible engagement. Do they care about Bible accuracy? That's the heart and soul of what they do. If you go to any of the major models, they're only 50 to 60 percent accurate on scripture quotations. So we've taken that and we have a system that enables the insertion of biblically accurate Bible verses in the workflows of the standard models. Our ecosystem cares about biblical accuracy, theological scoring and accuracy. Our ecosystem cares, right? I'm a Baptist. I want to know a theological answer consistent with the Baptist view, the Catholic view, the Anglican view, all of those things we take care of in the context of leveraging the best open source and the best commercially available models for the ecosystem. That's all part of what Glue AI provides in a unique and powerful way to this ecosystem.

The reason I talk to investors so much about it is we've seen valuations in the software and software-driven world have really come under fire because there's a worry that AI can replace these products so quickly and easily. You could vibe code your way into things. So I think you both have a lot of experience with the challenges of building platforms. Talk about how hard it is to actually build those things, what the sort of moats are that make it really a ridiculous concept that AI could just replace what you do.

Yeah, you know, in at least three or four different dimensions of that that are super defensible for us. One is data, right? You know, we just have more data assets. You know, we have pastor sermons coming in every week. We have more books and titles, right, you know, and things that are flowing into our platform every day. And we're by far the biggest data moat for the Facebook flourishing ecosystem today. and that's that gap is getting bigger by the day right you know for it you know we're also becoming more language you know we have more languages more reach into a broader set of the long tail languages the first hundred are well conquered everybody needs the next 7,000 you know over time so you know we're creating more language unique capabilities there's also the trust mode do you trust open AI for your teenager right do you think your teenager can get around the age requirement notification in OpenAI, right? Any good teenager has hacked that before you even know how to log into that agent. This is not safe. And that trust relationship that we've built by decades of investment is enormous. And to reinforce that, we've released things like the flourishing AI benchmarks that we are benchmarking on a regular basis all of the public models against the flourishing metrics from Harvard, Baylor, and Gallup that say this is human flourishing. We've created the Christian version of those flourishing benchmarks. All of those create a trust mode. We have a data mode. We have a language mode. We have a trust mode, a values mode that we're building. Against that, we're saying these AI services, they can't be mediocre.

They have to be world class. right so you're going to come to glue because its values align and it's best of breed and competitive with best of breed and when you take all that you end up with the network right so we have the network we have 140,000 churches okay that's 40 percent of all the churches in the country we have that we have that map to all these network capability providers the denominations the denominations come to us to tell them about their own churches okay the denominations come to us to tell them about their own churches because we have more data on their churches than they do we have that digital connectivity you know i said earlier that you know we just got assemblies of god and the archdiocese of kansas city you know at the same time well when you get them you get their churches okay so we have 17 500 churches from the assemblies of god that are now part of the network well do those those churches do they have campus ministries that work with then the campus ministries from intervarsity or campus crusade for christ or those yep we work with those guys we run all the infrastructures for intervarsity christian fellowship um campus ministries does that tie into all the churches does that tie into the denominations, the network is just amazing in terms of what's being built and how we allow them to get the benefit of scale with each other and we give them the benefit of interoperability with each other. So the network itself is a massive moat.

There's another level of trust that we haven't talked about with your company too and I would say that you've attracted some investors from across the spectrum as well. And your board of directors has some very strong participants from the sector. So maybe talk about both of those factors and how that helps also give you enormous credibility boost in your chosen market.

Yeah, I mean, well, first of all, performance meet beat raise, right? So we're out there, we're performing, we're going to continue to perform. That's super important. And, you know, that's just at an executional level, and that attracts the right talent. That attracts the right shareholder base. But we have the Southern Baptists, our investors in our company. The Lutherans, our investors in our company. The Wesleyans, our investors. The Catholics, our investors. These are shareholders. I mean, it's hard to get those folks in one room, let alone in one cap table, right? And all of that, you know, sort of adds into what it is. And then, you know, the rest of our investor base, we have, you know, a family called the Green family. They have Hobby Lobby, a very faith-forward organization. You know, their investors, Derek Green, is on our board. You know, they also, you know, run the Museum of the Bible, Washington, D.C., all sorts of partnerships there. I could go on and on, but we have over 300 investors when we were, you know, raising capital as a private company, all with faith and missional alignment all with relationships The board of directors is a world class board as well.

The Green family is on it but Bobby Grunwald who runs YouVersion the billion Bible app organization maybe the only other great technology organization today beyond glue in the faith ecosystem and he's on our board of directors. We have, you know, some of the key denominations are represented on our board of directors. You know, we also have, you know, individuals, you know, for instance, the former head of McKinsey's AI practice, now a lawyer at Simpson Thatcher, right, is on our board of directors. So, you know, a really quality team of people because they're aligned to the mission, right, and they're aligned to building a great company.

Yeah. Let's circle back to the P&L for a minute. You showed that it's moving very rapidly in that direction. When you talk about getting to fourth quarter positive, walk through some of the pieces you have that can help you get from here to there that are in your control. Some people would say, well, maybe that's just based on if they can get certain contracts, then they might be able. I think you have a lot more certainty than that.

Yeah, and, you know, when we look at this picture, right, it's, you know, improve the bottom line, improve the top line. So, right, you know, you win more business and we have a very healthy pipeline of the revenue growth, and we'll see increasing amounts of that fall to the bottom line, right? So we feel very comfortable. You know, we have said that we have one acquisition, that one's done. We have a second one that's well advanced to contribute to the top line growth, so we feel very comfortable about that but we believe we'll hit our revenue number even if we don't finish another acquisition this year so we're feeling quite confident that we have enough levers to meet beat raise the revenue number and then on the other side cost management that's coming two ways one we're just getting more cost discipline we're growing into our cost base as revenues grow many of the fixed costs of the businesses scale You know, do not scale with revenue, you know, are fairly fixed in that, you know, so we're able to start getting better cash flow through into the business. And a piece of that, of course, is deployment of AI, you know, glue on glue, right, and using more of the agentic services that enable us to, you know, drive margin out of those, you know, businesses like 360 where we're acquiring businesses, you know, that may be day one. It's a 30% margin deal that we've done. And we said our target margin is 50%, right? And we're using AI to drive those customers with more agentic workflows to the 50% and beyond.

So one of the things I think is underappreciated to date, but will be soon, I think, is how fast your organic growth really is. Not a lot of people at the scale you're at now, because you've created some good scale, can talk about 40% organic growth rates. They talk about the pieces of the business and how they're managing to grow that fast. This isn't a new space, necessarily, but what you bring to it that's helping that organic growth be as good as it is.

Yeah, and this repeatability of sale, right? Clearly, like we said, we had one Bible translator. Now we have 10 of the 12, right? So there is this ability to accelerate sales within a category, moving to universities. Now we're closing sales more rapidly, so the ability to sell within a category, but then we're able to cross-sell of other services as well. For instance, when we closed Westfall Gold, the acquisition, immediately we turned to AI agents loose on their customer list. Where do we have cross-sell opportunities for Masterworks or for 360? So we see the cross-sell within customers. On our last earnings call, we said we have 20 customers now over a million dollar ARR. We expect that we'll be updating that regularly on earnings call. We have our first customer closing in on 10. So we're now starting to see some of these cross-sell opportunities become very large customer relationships going forward. You know, so the ability to take, you know, $100 million organization, right, be able to, you know, be delivering them a couple of million dollars worth of IT, you know, value, you know, thinking that 4% to 5% range, right, is available for us in $100 million, you know, account. So just on IT, we can get close to $4 or $5 million. But then when we start selling marketing and other revenue-producing services as well, you can see that account becoming $5, maybe even $10 million over time as we have more of these other services that come into it. And any time you're cross-selling a different offering into an account, that's a more efficient sale. Cost of sales is declining. and the stickiness that you have in the relationship portends to better margin in those accounts over time.

As Pat said, we were at YouVersion yesterday. YouVersion is the Bible app. A billion have already been downloaded. Definitely the biggest additional tech company in the ecosystem. They're a not-for-profit. We're for-profit. We work very well together, but when we were there yesterday, we're going through that. They're working with Glue AI. We're doing a bunch of things with them on trust they're working with Midwestern they're working with Servant they're working with Westfall Gold okay you've got independent contracts on all these things and we just yesterday they said hey please give us a proposal on masterworks so that we can see what we can do so this is like one of the most sophisticated other tech companies in this ecosystem we're working with them across all those different brands so you've in under you think 18 months scaled the business up almost 6x that it's an extraordinarily you know fast scaling talk about maybe some of the challenges of that and and how you've managed to do it and at the same time

accelerated organic growth it's hard to believe you can kind of do both at once so yeah so with much pain suffering and agony right right and you know I you know none of us should be trivial right you know with regard to you know integrating multiple businesses getting them on common systems you know i mean some of the you know uh you know from my uh you know vmware days one of my worst you know two quarters in a row was when we moved to 606 accounting right you know just dreadful right kind of stuff well you know we have a bunch of businesses that were you know right not-for-profit private companies etc getting them the 606 accounting oh right you know just dreadful but you know you go do the work right As you get them there, every quarter they get better. The revenue recognition gets better. We're dealing with sales systems. How do you get them on good, proper sales systems? How do you get contractual consistency and leverage so that you're getting sales repeatability from an enterprise sales capability? How do you get better financial close and rigor under the financial? Some of this is just work at the end of the day. But also the other side of it is some of this is the value prop is there, right? And, you know, one of the, you know, I think that I'm probably most startled by, and I think Scott has said the same thing, is our sales cycles are accelerating. You know, and if you can, you know, having run, you know, significant enterprise sales organizations, you know, in my, you know, as I finished VMware, I had 25,000 people in my customer-facing organization, right? enterprise sales at scale right you know we're now seeing pretty you know common that we're closing sales in 90 days right you know for an enterprise sales motion which any enterprise sale that's less than nine months is pretty you know extraordinary you know so now we're seeing you know deals come into the pipeline and close in 90 days so we're seeing that acceleration of the value proposition you know that we're bringing to you know this ecosystem and if your

sales cycles are accelerating okay that says that you continue those kind of growth rates and being able to say hey we're going to be a rule of 40 company you know for multiple years into the future okay yeah we see that easily in the pipeline because the market's so big and the value proposition is increasing so when i think about this from a very high level i often think of it as almost like a franchise model where you're the corporate head office and you can provide the services out to the network capability providers a lot talk about how much how important it is that your portfolio of services is growing so that you can be more of a one-stop vendor to those do you think you've reached sort of critical mass in that do you think that's ahead still as

you maybe acquire another you know several more companies to flush out the the suite of offerings the you know the ability you know we have critical mass right so if we acquire nothing else right we're already a critical mass to adjudicate an extraordinary TAM right at that level we see lots of areas to add things to the portfolio right you know there's not you know it's not very hard to think about what should be next right in the number of the cases hey you know right now we're supporting enterprise applications. Well, if we've become the reseller of those applications, I've eliminated procurement on the part of my customers, giving them a value proposition, and increased our top line and margin capacity for doing that. Okay, that was not that hard to go do it. We're not doing anything in the financial today. We're interfacing with financial systems, but hey, if we're in the revenue flow more directly, that's another value that we can be giving to these customers over time. So there's plenty of areas that we can layer more value into the platform. You know, but fundamentally, we're already a critical mass. You know, when you're growing this rapidly, you don't have to worry too much about the incremental things that you put into the platform. But we do see those opportunities just further cementing our position, right, increasing our revenue, and most importantly, increasing our margin opportunity.

Yeah, and as Pat said, if you look on the left-hand side of the screen here, donor services, We have a lot more to go there, and that's the heartbeat of this ecosystem. Helping them with marketing and research, that's part of that reach, power and reach. But you start moving down into more content, more AI capabilities. We've made some very good acquisitions from an AI standpoint. We'll continue to do that. And you get down into financial products. This may end up being our biggest area, ultimately, is what happens in financial products. Everything from church loans to, you know, values-based investing on behalf of the congregants. This is an enormous ecosystem. Highly, highly motivated.

We're starting to run down, but I'd like to talk about not just who you select for acquisitions, but sort of the metrics you want to look at and understand and how, in the long run, you choose to use either cash flow, debt, or equity in structuring deals so that people can understand as you scale up what your financial profile should look like.

So a couple things. Number one, non-competed deals. We don't compete. These people are not in a process. We typically have been paying one to one and a half times revenue, call it five times EBITDA, before synergies, okay, before we can accelerate growth, before we can take out costs. So very reasonable. And then, you know, from composition, we're typically wanting to make sure that we're somewhere between 20% and 30% cash. We don't like to go above that cash. and then the rest is either going to be a little bit of seller financing. You know, stock price is down right now. We don't want to put out a lot of stock. So the last couple of deals that we've done, we then did more seller financing. So, you know, they put in seller financing on some subordinated notes and we give them some stock. So, you know, you can sort of think of it maybe a third, a third, a third is the way that we've been structuring these deals. Very cash efficient. And as Pat said, we don't need to do any more M&A. We will do it absolutely opportunistically when it really totally makes sense from a strategy standpoint and an economic standpoint.

And, you know, so you've been public less than a year. How has that transition sort of changed the market perception of Glue?

You know, it's helped to, you know, bring more visibility, you know, to the company. You know, generally, I think, you know, the market doesn't understand this ecosystem. right you know when you start when you talk about you know faith and flourishing you know it's the 50 person church down the street right you know that has half a pastor and is broke right how do you make a business right you know servicing them right you know and one of the things is just helping people understand the sheer massiveness of this ecosystem you know there's 300,000 plus churches some of those churches are over a hundred thousand members right here these aren't small organizations right you know the biggest network you know providers you know that we have over five billion in revenue right these are large organizations with large tech needs you know together they represent over a trillion dollars of economic capacity in the nation today growing faster than GDP right if you think about that you know churches you know are they growing or shrinking. The economic capacity of this is 5.5% to 6% versus GDP. This is big. It's highly fragmented at that level. And there's nobody who's in the middle of servicing that other than glue. We're the unique company who spent decades building that relational trust, as we've talked about, that's in a situation to service that ecosystem at scale. And AI has provided that unique inflection point that now is, okay, I give up. I need help. So we're seeing this acceleration of our business as a result. But when you think about that at scale, it's sort of like, wow, this is a great business. And getting public was helpful in that. Obviously, it allowed us to clean up the balance sheet. We have minimal debt left. It's a clean play at this point. There's lots of stuff going on, whether we have Iran war, SAS sell-off in the face of AI, markets being closed for government shutdowns, but lots of reasons that the stock ain't traded well. Plus, we're not profitable yet. So how could, I mean, the normal multiples and matrices, but all of this comes together.

In the second half of this year, as we break through to profitability, rule of 40 kind of growth rates and profitability going forward this is a pretty stunning company sitting in a large fragmented ecosystem with no competition and the leaders in applied ai for this ecosystem not contested right yeah so what our core belief is that on the other side of the sas apocalypse we're we're going through that we believe that for complex mission critical companies which you're building we think ai is a is a boon to the industry we think it can cut your costs increase your revenue opportunities so if you can be more profitable and larger

it should be a renaissance for the software world for leaders who have mission critical complex systems yeah there's a lot of sass companies that are going to have their businesses beat up yep right you know associated with it we're not one of them yeah right you know right Because it's not like we have a bunch of SaaS revenue that's at risk. We only have SaaS revenue that is leveraging that AI tailwind. We're going to be the ones figuring out how to have this ecosystem do less of the traditional SaaS vendors and more of the agentic future. That's our role, and that's a powerful position where AI is an accelerant to what we do every day.

At the end of the day, you're really helping shape the world in a better way, which is nice to have that extra spin-off benefit of being who you are and what you've targeted.

Make money, do good.

We wish you all the success in the world. Thanks for your time. Thanks, everybody.