What is Navan's gross profit margin?

What guidance did Navan's management provide for the next earnings period?

What factors drove the changes in Navan's revenue and profit?

What were the key takeaways from Navan’s earnings call?

What is the revenue and EPS growth rate for Navan year over year?

What is Navan's latest dividend and current dividend yield?

What does Navan do and what are its main business segments?

What were the key takeaways from Navan's earnings call?

- **Record Q3 Growth**: $195M revenue (+29% YoY), 74% gross margin (200bps YoY expansion), 13% operating margin. FY26 guidance: $685M-$687M revenue (+28%).
- **AI-Driven Efficiency**: Ava handles 54% customer interactions, driving 74% gross margin. Navan Edge AI-first platform set to launch in 2027.
- **Enterprise Wins**: Signed largest European deal, Visa, ENGIE. NPS 45 vs. industry 5, 97% satisfaction. 15% median savings vs. legacy.
- **Balance Sheet Strength**: $809M cash post-IPO. FY27 free cash flow positive. Payments expansion and Edge development key investments.
- **CFO Transition**: Amy Butte departing; Anne Giviskos interim CFO. Transition seen smooth with strong team retention.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue reached $195 million, up 29% YoY, driven by enterprise wins (e.g., CAC40 European deal, Visa, ENGIE) and AI-driven efficiency. Gross margin hit 74%, a 200bps YoY expansion.
- **AI Differentiation**: Navan Cognition, the company's proprietary AI framework, powers Ava (54% customer support interactions) and Navan Edge (AI-first travel experience for frequent travelers). Q3 gross margin expansion reflects automation and scale.
- **Customer Satisfaction**: NPS of 45 vs. industry average of 5, with 97% customer satisfaction. Average booking time reduced to 7 minutes.
- **Future Focus**: 2027 priorities include payments expansion, AI innovation (Navan Edge), and maintaining growth-profitability balance. Free cash flow positive by FY27.

**【CFO Financial Commentary】**
- **Top Line**: Usage revenue +29%, subscription +26%. Gross booking volume ($2.62B) up 40% YoY. International revenue 37% of total.
- **Profitability**: Non-GAAP operating margin 13% (vs. 4.3% YoY). Free cash flow (-$11M) improved 30% YoY. FY26 guidance: $685M-$687M revenue (+28%), non-GAAP op income $21M-$22M.
- **Seasonality**: Q4 expected to be seasonally lower (15-16% revenue YoY vs. Q3's 29%). Gross margin may compress 300-400bps.
- **Balance Sheet**: $809M cash, $207M debt. IPO proceeds to fund payments expansion and Edge development.

**【Q&A Highlights】**
- **Enterprise Momentum**: 3 drivers—customer advocacy, industry consolidation, AI superiority. Recent wins include CAC40 European deal, Axel Springer, and health care F500.
- **Gross Margin Sustainability**: Ava deflects 54% support interactions. Q3 gross margin peak due to seasonal volume; FY26 gross margin 73% (year-to-date). FY27 focus on disciplined spending vs. 2026's 17% OpEx growth vs. 29% revenue growth.
- **Navan Edge**: Expected to launch in 2027, targeting non-managed travel market. Will use same booking fee model as core business. Early payments attach rate in enterprise (36% multi-product adoption) supports long-term yield stability.
- **CFO Transition**: Amy Butte departing January 9 after 1.5 years; Anne Giviskos interim CFO. Transition seen as orderly with strong finance team retention.
- **Competitive Landscape**: Legacy players' consolidation (e.g., CWT-SAP Concur) creates opportunities. Navan's AI-first, integrated platform (travel + expense) offers 15% savings vs. legacy solutions.

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