01:27:25 · John Coogan, Eric Glyman, Luca Ferrari
[01:27:25] S0: How do you, how do you feel like CFOs are ranking, like, AI enabled software on their list of priorities when they're making a decision in this category? Is it because it feels like there is some great stuff. There's some stuff that's commoditized, some stuff that you've built that's differentiated. But are are CFOs as a class sort of like, okay. I've checked the box. I'm exhausted with the narrative, or I'm just ramping up, and I feel like I'm just starting to get value and I actually understand it? Or are they just learning what AI is for the first time tomorrow or today? [01:28:04] S7: This is this is a fun one. So I I would say there's a few different types. I mean Sure. I would say small and mid midsize businesses just as like, look. I wanna run, you know, same business for less. I I wanna grow, meet my goals, be more profitable. And I think for us, it's just, hey. It's an easier to use expense report. Or or or, like, you won't need to do expensive more. Your card will do it for you. [01:28:24] S5: Sure.
01:28:24 · Luca Ferrari, Eric Glyman, Jordi Hays, John Coogan
[01:28:24] S5: Sure. [01:28:25] S7: You don't need five tools to pay bills, run procurements, earn yield on your treasury. Yeah. Ramp will simplify that. But I think that for large customers, look, I I think it's, like, 80% plus of the earnings calls of of the S and P 500 mentioned AI about six months ago. I think it was 95 over the most recent quarter. It is a 100% on the mind of CEOs and CFOs. What they're wrestling with is, you know, there's a great study at MIT in the fall that went fairly viral where 95% of enterprise deployments are not creating return on investment. And I think part of why CFOs have been so enamored with RAMP is, you know, we can demonstrate very, very clearly, a, for most customers, it's it's a product that pays you to use it in the form of a cashback. B, it helps reduce your spend. And c, when you have all this time back for your Salesforce to go and sell and not do low value tasks, it's a very easy business case. And so I I think this this ultimately, like, our focus is on saving people money, and that ROI focus makes it easy for them to buy. I think it's it's it's very important. [01:29:36] S1: That MIT study, how does that track with what you guys have seen from various AI pilots? Because I think if [01:29:43] S0: ramp you're doesn't even count on either side. I I wouldn't think of, like, bringing a ramp into a company as, like, an AI pilot. I would see it as, like, a completely different thing. But are you the five percent that's successful, or are you just not even counting?
01:29:43 · John Coogan, Jordi Hays, Stacy Rasgon, Eric Glyman
[01:29:43] S0: ramp you're doesn't even count on either side. I I wouldn't think of, like, bringing a ramp into a company as, like, an AI pilot. I would see it as, like, a completely different thing. But are you the five percent that's successful, or are you just not even counting? [01:29:56] S1: If you were looking if you were talking with the team Yeah. And the team's like, 95% of our pilots haven't panned out, you'd probably be like, what were you guys doing? [01:30:04] S6: Yeah. Yeah. [01:30:05] S7: Yeah. It it it is you nailed it. So one, I think that a lot of you hit this first phase of people who were, like, told they need to buy AI. They're like, fine. I'll give you some external budget. You're good to have people tried a bunch of stuff. And I think you end up and and I think this speaks to the importance of design where you'd end up with, like, disconnected tools. Totally. Like, thoughtful chat like, great chatbot here. [01:30:26] S0: Yep.
01:30:26 · John Coogan, Eric Glyman
[01:30:26] S0: Yep. [01:30:26] S7: This thing that kinda plugged into some of your code base and others. And if you look at I think part of what's made ramps so effective is, you know, it's just a smarter card that happens to use AI. It's not telling you, hey. This is an LLM that categorized your transaction. This is an LLM that's read this 30 page invoice, detected it was fraud, told you not to pay for this. This is an LLM that detected you could be earning higher yield and moved it for you. It's just part of how it works. And I think this next phase and the AI native companies that are working very, very well have these deeply integrated products where it's not like some, you know, AI tool. It's just how it works. And so I think that's the distinction. And you're right. For a lot of CFOs, it's, hey. We have this tool. It's gonna help help us cut out waste and pay us cash back. Should we use it or not? And it's a pretty easy decision. So yeah. [01:31:20] S0: Yeah. Yeah. It might not even be in the category, but it's still delivering AI properly. And I just love that that's I I like there's something very valuable about just using every possible tool, AI or not, or linear regression, if that's the best tool for the job, behind the scenes, and then just delivering the actual value to the customer, solving the problem. Because customers, they don't necessarily want technologies. They want solutions. Right? Yeah.
01:31:20 · John Coogan, Eric Glyman, Jordi Hays
[01:31:20] S0: Yeah. Yeah. It might not even be in the category, but it's still delivering AI properly. And I just love that that's I I like there's something very valuable about just using every possible tool, AI or not, or linear regression, if that's the best tool for the job, behind the scenes, and then just delivering the actual value to the customer, solving the problem. Because customers, they don't necessarily want technologies. They want solutions. Right? Yeah. [01:31:46] S7: Yeah. And you it's one of our our customers and, someone I look up to quite a bit. He's, Brett, Taylor Yeah. Started a company called Era, Terminator OpenAI, and he was on it, a week or two ago. In one of the things he said is, like, look. I I don't want anyone at Sierra spending, like, time on expense reports or invoices. Yeah. And and Ramp is automated categories of work that used to slow us down, and we actually can work on the things that makes us great, building great products for the business. And so I I I think you nailed it. It's it's solutions, not [01:32:19] S0: Not actual technologies because most of the customers just just they they just don't have a strong opinion about the the underlying technology. They care about saving time, saving money. That's what matters. Well, congratulations. Thank you so much for taking time. Milestone. Day to Fourth of the year. Fourth of the year. I'll be back next week. You're always welcome. That's why we bought these suits. We don't rent them. We buy we bought them. [01:32:45] S1: Tailored. Because we [01:32:45] S0: knew we were
01:32:45 · John Coogan, Jordi Hays, Eric Glyman, John Tennant, Keller, Stacy Rasgon
[01:32:45] S0: knew we were [01:32:46] S1: gonna be using them a lot. [01:32:47] S0: We're gonna be using them a lot. [01:32:49] S7: Guys, it's it's so good to see you. Thank you so much. [01:32:52] S4: Have a good rest [01:32:53] S1: of your day. Yeah. Incredible milestone. [01:32:55] S0: We'll talk to you soon, Eric. Bye. Cheers. Quickly, before we bring in our next guest, let me tell you about Turbo Puffer, Search Every Byte, Serverless Vector, and Full Text Search. Built from first principles on object storage, fast, 10 x cheaper, and [01:33:08] S1: scale By the way, median public SaaS company growing at 12 to 17% a year. Yes. They're growing at 10 times that rate. [01:33:15] S0: Fantastic. [01:33:17] S1: Well. [01:33:18] S0: We our next guest is, Stacy Raxon. Welcome to the show. Thank you so much for [01:33:22] S8: stopping by. [01:33:24] S0: To meet you, guys. We'll have you sit down here. And while you're sitting down, I'll tell everyone about ProFound. Get your man mentioned in ChatGPT. Reach millions of consumers who are using AI to discover new products and brands. Are we in a bubble? What's going on? Introduce yourself for a second. [01:33:40] S6: Sure. My name is Stacy Rasgon. I'm a stock analyst and equity analyst. I'm a managing director and analyst senior analyst at Bernstein Research [01:33:49] S4: Sure. [01:33:49] S6: Where I look at The U. S. Semiconductor and semiconductor capital equipment space. Thank you. Clearly, AI has been the only for a couple of years now. [01:33:59] S0: Yes. Yes. Want you to react to this Suttrini post here.