Gloo Holdings (NASDAQ:GLOO) released second-quarter financial results and hosted an earnings call on Monday. Read the complete transcript below.
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Summary
Gloo Holdings reported Q1 2026 revenue of $41.5 million, a 238% increase year-over-year and 23.5% sequential growth, exceeding guidance and street consensus.
The company expects adjusted EBITDA to approach break-even in Q3 2026 and reach profitability in Q4 2026, with significant sequential improvement noted in Q1.
Strategic acquisitions, including EMD and Midwestern, are expanding Gloo Holdings’ capabilities in powering technology and reach, contributing to revenue growth and improved operational efficiencies.
Gloo Holdings is leveraging applied AI to enhance its platform, particularly in the faith and flourishing ecosystem, with initiatives like Glue AI Studios and partnerships with educational institutions.
Management expressed confidence in the company’s strategic direction and growth potential, citing strong customer demand, particularly in technology modernization and donor development.
Full Transcript
OPERATOR
Thank you for standing by and welcome to Glu’s fiscal first quarter 2026 earnings conference call. Currently, 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 during the session, you will need to press Star 11 on your telephone to remove yourself from the queue. You may press star 11 again. I would now like to hand the call over to Oliver Roll, Chief Marketing and Communications Officer.
Please go ahead. Thank you Operator and thank you to all of you for joining our fiscal first quarter earnings conference call. We will be discussing Gloo Holdings’ performance for the first quarter ended April 30, 2026 as well as providing guidance for our Q2 and full year 2026. Joining me on today’s call are 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 and 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 Q2 and fiscal year 2026. These statements are based on Blue’s current expectations, but are subject to risks and uncertainties relating to future events and or the future financial performance of Gloo Holdings. GLUE 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 to 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 10K for the fiscal year ended January 31, 2026.
Our SEC filings are also available on Glue’s investor relations website at investors.Gloo Holdings.com and the SEC’s website. In addition, during today’s call we will discuss certain non GAAP financial measures, including adjusted EBITDAs. 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 10Q to be filed for the quarter ended April 30, 2026 and now I’ll turn the call over to Scott.
Scott Beck (Co Founder & CEO)
Thanks Oliver and thank you for joining our 2026 first quarter earnings call. Q1 was another strong quarter for Gloo Holdings. We exceeded our Guidance and Street Consensus on both revenue and adjusted EBITDA. Revenue came in at 41.5 million, growing 3x over the prior year. This was also 13% above guidance and street consensus. Adjusted EBITDA was negative 11.5 million, also ahead of Guidance and Street Consensus and representing more than a $7 million sequential improvement from Q4 2025.
This represented our third consecutive quarter of sequential adjusted EBITDA improvement. This progress reinforces our confidence in delivering against our adjusted EBITDA profitability goals. With adjusted EBITDA expected to approach break even in Q3 of 2026 and reach profitability in Q4 2026, our Q1 results demonstrated that our strategy is working. We’re seeing growing demand from large strategic customers, our current acquisitions are delivering compounding value, and AI is becoming an increasingly important accelerator across the business.
Before turning to the specific drivers for the quarter, I want to connect our results to the broader opportunity. Gloo Holdings is building the leading technology platform for the faith and flourishing ecosystem, with applied AI becoming a defining capability across the platform. This is a large, durable and highly fragmented ecosystem spanning education, social impact, Bible translation, churches and the denominations that serve them. Donations remain the economic engine of the ecosystem, funding the mission driven work of Faith and flourishing organizations.
In 2025, revenues for faith based organizations grew 8.2% to more than $265 billion, underscoring both the scale of the opportunity and the importance of donor development. Across these segments, organizations consistently need two things they need to modernize technology and they need to expand marketing reach to attract more donors and more constituents. That is how we have organized the Gloo Holdings platform. Powering Technology and Powering Reach Applied AI has become an increasingly important capability of the platform.
Our powering technology business is designed to take over the customer’s technology operations, modernize them, and then apply agentic AI to deliver significantly better outcomes at lower cost for our customers while creating higher margins and durable revenue streams for Gloo Holdings. With Powering Reach, Applied AI helps customers better understand their audiences, personalize engagement, and strengthen donor development. That combination is what makes Gloo Holdings distinct.
We are not simply providing software or services. We are bringing applied AI into the workflows that matter most to the organizations that we serve. We can do this because Gloo Holdings has earned a position of trust within the faith and flourishing ecosystem. Over decades, we have built the relationships and credibility needed to convene leaders, understand their most important workflows, and apply AI in ways that are practical and mission aligned.
In Q1 we saw strong momentum across the platform. On the powering reach side, masterworks, Barna and Westfall delivered one of their best revenue quarters ever. That performance demonstrates the value of combining donor engagement with media, research and the fundraising capabilities all on one platform. On the powering technology side, customers are increasingly selecting Gloo Holdings to take over, modernize and transform core technology operations through offerings like Lou360.
In Q1, that momentum showed up in larger strategic wins, including five new customers contributing more than 1 million in annual contract revenue. These larger strategic wins show growing traction across both existing and new segments of the Faith and Flourishing ecosystem. Assemblies of God is a strong example of a denomination choosing Gloo Holdings. They are leveraging Gloo Holdings 360 across their enterprise by modernizing legacy systems to better serve their 13,000 churches within the United States.
Indiana Wesleyan University is another important example. We’re partnering with Wesley Seminary at IWU to build Via Journeys, an AI powered ministry lifecycle ecosystem that connects ministry leaders with personalized resources and mentors. We believe this points to a broader transformation in how universities will equip students and the communities where they lead. For example, our work with Jessup University, announced earlier this year, is progressing extremely well and running ahead of schedule.
Beyond the customer examples, we continue to build broader ecosystem momentum around applied AI. Our 2026 4th annual Glu Hackathon will bring together more than 700 developers, engineers and mission driven builders in Boulder this October for 48 hours of hacking and building mission aligned apps and technology. This quarter we announced the general availability of Gloo Holdings AI Studios, a comprehensive set of AI tools and capabilities for developers in the faith and flourishing ecosystem.
This release includes Support for over 80 LLM models. It includes new safety capabilities, varied subscription options to pay for token usage, and a free sandbox for developers to experience our values aligned guardrails. The goal is to accelerate practical AI solutions that advance human flourishing. Moving now to acquisitions, which remain a key part of how we’re strengthening the Gloo Holdings platform, our strategy is to add best in class providers that expand our ability to power tech and to power reach.
Q1 provided strong evidence that that strategy is working. Westfall Group and Masterworks both delivered one of their best quarters ever. That validates the strength of those businesses and the compounding value of bringing them onto the Gloo Holdings platform. During Q1 we signed a purchase agreement to acquire EMD, which we closed at the beginning of Q2 EMD expands our powering technology portfolio with with workday consulting, implementation and support capabilities for not for profit, small and mid market organizations.
EMD also aligns directly with our broader strategy that I mentioned earlier. We take on and modernize critical customer workflows, then apply specialized engineering talent and agentic AI to deliver them better outcomes at a lower cost over time. This creates a strong customer value proposition while also improving Glue’s margin profile. Today we’re also announcing the acquisition of the remaining stake in Midwestern Holdings, bringing our ownership to 100%.
Midwestern Holdings increases our investment in the cost effective global talent capability area. We believe this will continue to be a significant growth opportunity as we combine lower cost delivery capabilities with agentic AI. This also eliminates the call option which will result in a one time improvement by removing the associated $12.1 million liability from Glue’s balance sheet. Together, these acquisitions strengthen the platform, expand customer value and reinforce the flywheel that we’re building.
Our approach with acquisitions is always disciplined. We continue to see a strong pipeline, but we will only pursue opportunities that are best in class, strategically aligned and accretive to the Glue platform. Even though we have a strong pipeline as we previously stated, our current plan does not depend on additional acquisitions to achieve our revenue or or adjusted EBITDA profitability guidance. As we look ahead, our priorities remain clear.
We’re focused on deepening strategic customer relationships, scaling our platform and applying AI in ways that improve outcomes for our customers while creating durable value for Gloo Holdings. At the same time, we will keep integrating acquisitions with discipline and executing against our path to profitability. Q1 was a strong start of the year. We remain confident in our strategy, our 2026 plan and the long term opportunity to build the category defining technology platform for the faith and flourishing ecosystem.
Paul, I’ll turn it over to you to walk through the numbers in more detail.
Paul Seaman
Thank you Scott. We delivered strong first quarter results with both revenue and adjusted EBITDA beating guidance. This performance reflects solid business momentum and disciplined execution, giving us a solid financial start to the year. Q1 revenue was $41.5 million, an increase of 238% compared to the same period last year and 23.5% sequential growth compared to Q4 year over year. Revenue growth was driven by momentum in several business lines, most notably Gloo Holdings 360 as well as the acquisitions of capital partner businesses such as Masterworks and Midwestern Holdings.
Platform revenue totaled $24.1 million, an increase of $15.6 million from Q1 of last year and up 19.9% over Q4 2025 Platform Solutions revenue was $17.4 million, up $13.6 million from the same period in 2025 and about 29% sequentially. Cost of revenue in the quarter was 67.7% of total revenue, an improvement from 72.1% in the prior year period. That increase was driven by improvements in margins at our workspace and Outreach business lines as well as a full quarter of Westwell Group.
We expect improvement to continue through the year. Adjusted EBITDA improved $7.1 million sequentially to negative $11.5 million. This significant improvement reflects the impact of our cost saving actions implemented in Q4 along with the growth already mentioned. In particular, our operating expenses decreased $8.4 million sequentially while revenue grew 24%. Also note that general administrative expenses include acquisition costs related to the EMD acquisition which closed in the second quarter.
We do not adjust for these costs in our non GAAP results. We expect continued sequential improvement in Q2 as we aim to achieve adjusted EBITDA profitability in Q4. As Scott described earlier, we recently agreed to purchase the remaining 20% of Midwestern Holdings that we did not previously own as well as eliminate the call option, permitting the holder the remaining 20% from reacquiring and controlling interest of Midwestern Holdings from us. We anticipate closing on the transaction later this quarter.
The elimination of the call option will result in no longer having large swings in the Financial Statement reporting line titled Gain or Loss from Change in Fair Value of Financial instruments. As of April 30, 2026, we had $33 million of cash and cash equivalents. We believe that we have the liquidity to reach positive adjusted EBITDA in Q4, which we expect will put us on a path of sustainable positive free cash flow growth in future quarters with significant momentum across the business.
We also believe we have multiple options to further strengthen the balance sheet, fund our growth and support future acquisition opportunities should we choose to pursue them. I’d like to now turn to our full year 2026 and Q2 outlook. For full year 2026 revenue, we’re increasing our outlook $5 million to $195 million in the second quarter. We expect revenue to be $44 million and adjusted EBITDA loss to narrow to a negative $8.5 million. We continue to expect adjusted EBITDA to approach break even in Q3 2026 and reach profitability in Q4 2026.
For Q2, we expect a weighted average share count of approximately 81 million shares. With that, I’ll turn this call back to Scott.
Scott Beck (Co Founder & CEO)
Thanks, Paul. With that operator, we’re ready to take the first question.
OPERATOR
As a reminder. To ask a question, you will need to press Star 11 on your telephone to remove yourself from the queue. You may press star 11 again. Please limit yourself to one question and one follow up to allow everyone the opportunity to participate. Please stand by while we compile the Q and A roster. Our first question comes from the line of Dan Kernos, a benchmark. Your line is open, Dan.
Dan Kernos (Equity Analyst)
Yeah, great, thanks. Good afternoon, Scott. Paul, congrats on another great quarter. I guess first question, the revenue cadence implies a bit of a reacceleration in the back half. Not to say that the growth hasn’t been impressive. And I just want to get a sense from you guys. I know you said in the last call, starting to see larger customer wins. You flagged the $5 million annualized contracts this quarter. How much line of sight do you have into stuff like that and how much is coming from, you know, let’s call it the more recently acquired business.
And has that mix changed since the April guidance?
Scott Beck (Co Founder & CEO)
Yeah, thanks. Good to hear from you, Dan. You know, we definitely have been able to have continued acceleration. I wouldn’t say that it is accelerating any different than it has been. We’ve been super pleased with the growth and the growth has been a combination of, you know, scaling, you know, some of the core Gloo Holdings offerings like 360 and Gloo Holdings AI at the same time. It’s also been able to continue to scale and get synergies across the different capital partners that we’ve acquired.
You know, over the years as well, we’ve been able to drive really strong organic growth in our core offerings as well as really strong organic growth in the offerings from the different capital partners. One of the great things that we’re excited about is being able to see the synergies that are taking place in the cross sell. More and more of the organizations that we’re serving, they have one offering, but when we see them get to that second offering, we see a significant step up, almost two times the revenue.
When they get to three or more offerings. We’re now then seeing that to be, you know, closer to sometimes five to ten times the volume of what just a single offering should be. So it’s really a combination, a combination of the two.
Dan Kernos (Equity Analyst)
And overall, you know, we’re seeing more than 30%, you know, sort of coming from a lot of these organic growth and the organic growth of the new acquisitions And Scott, that’s a great segue into kind of my next question. I’m just trying to understand, like when you, you talked about land and expand, right? And you just kind of outlined the way that you guys attack that. And I just want to get a sense from you, when you win one of these larger contracts, are they taking multiples at once as it dip the toe in the water and then all of a sudden you think that that contract can be 10x over time?
I just want to get a sense from you how much. We know that this is a massive TAM and you guys are the undisputed leader with really no competition out there. But I’m just trying to get a sense of how quickly some of these major deals can expand because you guys have had a lot of very early success, even earlier than I think most of us anticipated.
Pat Gelsinger (Executive Board Chair and Head of Technology)
Yeah, thanks, Dan. This is Pat. I’ll just say that as we, I think noted in the formal comments, 30% of our customers over a million dollars now are more than one, which means the large majority are only one. And typically a sale will be a single product area that we then expand one or two quarters later over time. But most of them start with one. Right. And some of our sales strategies to keep things simpler and moving forward.
But I will say we have had a couple that we’ve landed more than one product area at the same time for them. And I expect that that will become a larger aspect of our sales motion as each of the sales offerings becomes more mature. We have more customers in the land expand, and then we’ll be able to land expand, expand over time. But so far it’s mostly one landing in a quarter and then we’re following it with a subsequent offer later in time.
OPERATOR
Got it. Thank you, Pat. That’s super helpful. And I mean, you’re already putting up the numbers. So excited to see what you guys do next. Thanks, guys. Thank you. Thank you. Our next question comes from the line of Richard Baldry of Roth Capital. Your line is open, Richard.
Scott Beck (Co Founder & CEO)
Thanks. When we look from Q4 to Q1, the revenue increase had about a 70% gross margin contribution in the quarter. I’m kind of curious if you can look into that and talk about how much would be because of the organic growth and how much might have been sort of cost realignment. That’s, you know, it’s 2x where your normal gross margins are sitting today. I’m sort of curious how sustainable that sort of drop down could be as we move forward. Great question, Richard.
Thanks for chiming in. You know, I think there’s a balance between the two in the quarter. We definitely got some significant benefit from overall reduction in our operating expenses that you saw that flow through in terms of contribution to adjusted ebitda, which was obviously very significant relative to the revenue increase. But I would say that you’ve got somewhere between 50 and 60% of that probably came from the operating expense and the remainder came from just continuing to get leverage across the cost basis associated with what you would think of as the cost of goods sold or contribution margin.
Thanks. You’re still early into some of the larger deals on the glue360 side, but I’m curious as those are under your umbrella a little bit longer, are you seeing incremental headcount synergies? Are you starting to see early cross selling or upselling opportun? How are the earlier large deals playing out?
Pat Gelsinger (Executive Board Chair and Head of Technology)
Yeah, and every one of them is causing us to just get more mature Rich. This is pat again where we’re getting more proof points of different offerings as we get more and more customers. Hey, we already have some level of expertise on some of the tools that we’re picking up from them. We already have more maturity in some of the agentic workflows that we’re applying to them.
And of course our HR systems are getting more mature of being able to bring them in, onboard them and make the best application of good HR disciplines to those as well. So I’ll say every one of these is making us better. We still, I’d say, are not fully mature in those offerings because several of them are ones that we’re still picking up and learning.
So I think we still have a lot of margin improvement, you know, to get as well as rapidity of the motions in the ability to onboard and then to be able to commercialize. But the good aspect of this is that every one of those that we do, we’re now creating the agentic workflows that the next one is just easier and faster. So we just see this as an engine that we’re going to be able to rinse and repeat over and over again.
And each one of those is showing more maturity in the offering. So a long way to go. The ecosystem is large, but we’re now having more and more proven capabilities that can be applied against them.
If I can squeeze one last one in. When you look at the five deals over a million dollars, can you talk about are there any commonalities across those or are there multiple entry points? You can do those in now just so we can sort of see how Extensible that is going forward. Thanks. Yeah, maybe Scott, you can add as well. But we are starting to see a lot more pipeline in the universities segment in particular, which is one that we’ve highlighted. William Jessup was our first major example.
We’re now closing more of those offerings. So that’s an area that, as you said, there’s over 900 faith based universities in the US so we have a long path to go. We’re clearly a critical mass in some sectors such as Bible translation, campus ministry and other areas like rescue mission is an area that our work that we have specifically on reach as well proven. So there’s a lot more opportunities there. And then finally, I think as we noted in our formal comments, we have had start to have some success in the Catholic segment, which is very large space for us that we’re just getting started.
So I think more replicable big opportunities and we see the land expand, expand just as enormous pathway in front of us. Scott, anything else you would add?
Scott Beck (Co Founder & CEO)
Yeah, thanks, Pat. You know, I really like, you know, what you’ve coined there in terms of land expand and expand because we’re landing and expanding within a specific county. But when we find ourselves into a category like, you know, campus ministries or a category like faith based universities or rescue missions, when we find ourselves getting into a different segment, that segment also has a dynamic of expand as well. And so we’ve got really the power of landing and expanding within an account and expanding again within, you know, a category.
And we’ve been adding categories extremely quickly. Really sort of surprising in terms of how quick the categories are expanding. Now. One of the things I would like to, you know, anchor us back in
OPERATOR
is they are looking for the same thing. Okay. There’s a commonality in terms of, hey, help me power tech, help me get, get more reach so I can have more donors, more constituents, more students, more volunteers, you name it. They’re really powering tech, power and reach and you know, just being able to then apply AI to be able to give them the lower cost, better benefit and give us, you know, a ever increasing margin as we bring more AI executed work into, into the program.
Got it. Congrats on a great quarter. Thank you. Thank you. Our next question comes from the line of Young Kim of Loop Capital Markets.
Young Kim (Equity Analyst)
Your line is open Young. Okay, great. Thank you. Congrats on a strong quarter. So on the EMD business, can you update us on the progress that you have made since the acquisition closed? And for the EMD customers, I know there’s some who are not faith based customers or organizations. Do you expect the non faith based customer base to show growth there or is your near term go to market primarily focused on faith based organizations?
Scott Beck (Co Founder & CEO)
Yeah, so as you’re aware they do. They have both faith based and not faith based and we’re growing them both. You know, obviously we’ve got some obvious synergies within, you know, the faith based where we can do a lot of cross selling immediately, but also in the non faith based that’s on its own growth plan as well, you know, relatively new. Right. It’s just closed at the beginning of this quarter. So we’re, you know, five or six weeks in now. But we’re liking what we’re seeing Additionally, you know, Midwestern Holdings, you know, which we just went to 100% ownership from 80.
You know, those guys have pretty much the same profile. They have a significant amount of, a significant amount of Midwestern Holdings is also non faith based at pretty much about the same percentage, about a third faith based and about 2/3 not faith based. So it’s nice to be able to see some of the synergies there between let’s say a Midwestern Holdings and an EMD on the non faith based side. So yeah, they’re both growing. We’re committed to growing them both.
And for the last few years at Midwestern Holdings we’ve grown both sides of it as well.
Is there an opportunity to cross sell glue 360 to the non faith based organization customers of EMD? Yeah, there are. There’s no question that the small to mid sized organizations are coming up against the same set of issues which is, hey, help me with my tech, help me with my reach, you know, and that those, those are common, common concerns, common value propositions, whether they’re faith based, non faith based organization and everybody needs help applying AI into their specific organizational workflows.
And likewise, you know, when you’ve got a workflow that you know, helps somebody, you know, engage with employees on an ongoing basis, that workflow is, is the same whether it’s a faith based or a non faith based workflow. So there’s a lot of commonality against that as well.
Pat Gelsinger (Executive Board Chair and Head of Technology)
Okay, great. And then maybe this question is for Pat, but I know it’s very early, but what’s been the early feedback on Glue AI Studio? Was that part of your hackathon at all? Thanks. Yeah. And you know, the early feedback is strong and obviously as you open a new service like that, there’s lots of learnings as developers come on and we’re getting more efficient at bringing Developers on bringing the billing systems up and operating for them. And we did have a big customer hello Bible that does a consumer chat service.
Move over to Glue Studio. They were public on LinkedIn or one of the other social channels about that and the good experience that we’re having. So we’re now starting to have, I’ll say, real customers who are bringing their workloads onto the platform. We also, as a result of Studio we will have more to talk about as we go through our virtual Hackathon event and then our big hackathon in the fall. So they will be very heavily featured and announcements of new capabilities, new services, new customers coming on the platform as part of the hackathon is a big thing when we come up on that in the fall.
So overall we’re happy with the momentum that we’re seeing. Thousand plus developers now on platform, but we have to grow this much faster, much larger and we believe that we now have a mature offering that will enable us to do exactly that.
OPERATOR
Okay, great. Looking forward to it. Thank you very much. Thank you. Our next question comes from the line of Jason Pryor. Craig Hollum, your line is open. Jason.
Jason Pryor
Great. Thank you guys. Scott, great to hear the early success with cross sell here in the first quarter. Wanted to ask just about the go to market for cross selling these new solutions to existing customers. If we think about a Westfall or an emd, how quickly can you get customers interested in the new solutions? How quickly can you get them up and running and just what that upsell process looks like.
Scott Beck (Co Founder & CEO)
Yeah, and generally there’s a strong effort and you know our chief revenue officer Rebecca runs a very aggressive process across the different sales teams to drive exactly that. We’re seeing a good effect from that already and I’ll say we’re pleasantly surprised how easy it is to get that process underway. So we do see that Westfall gold with masterworks 360 into masterworks accounts, servant into our 360 accounts.
These motions are ones that we think have a lot of replicability, a lot of scale and overall we’re just building more sales capacity. We’re bringing sales teams on, we’re getting more rigorous in our processes to manage large account pipelines and then building more cross sell mechanisms across the portfolio. So we just see ourselves at the beginning of the cycle and every element of the portfolio gives us more opportunity to cross sell.
Pat Gelsinger (Executive Board Chair and Head of Technology)
Perfect one Follow up just on M and A has continued to expand your addressable market when you think about the bigger customers that you have today. Curious what you think your penetration is into the existing base. And really I’m trying to figure out how much Runway is there ahead with such a large customer base into a large addressable market. Yeah, the Runway is truly enormous. That’s why we somewhat easily talk about TAMS in excess of 100 billion.
This is just a large market for it. And we talk about universities. We now have several closed 900 to go. And even where we’re pretty well penetrated in a few accounts at this point, we’re not well penetrated across the portfolio. So we even in our land, expand into the account, have room to grow. So we would consider our effective som to be in very low percentages at this point. And the TAM is enormous. The sam that’s reachable is very large. And we don’t see ourselves as anywhere close to saturation on any dimension of the business.
OPERATOR
Wonderful. Thank you. Thank you. Our next question comes from the line of Ryan Myers of Lake Street Capital Markets. Please go ahead, Ryan.
Ryan Myers (Equity Analyst)
Hey, guys, thanks for taking my questions. First question here. Have you seen any changes in customer budgets or any other major changes across the ecosystem in terms of appetite for more digital offerings?
Scott Beck (Co Founder & CEO)
Yeah, thanks, Ryan. Yeah, for sure. I mean, you know, as I said in my, in my prepared remarks, you know, the revenue in this ecosystem grew at 8.2% last year. I mean, you think for a very significant. What is an old ecosystem, to be able to have that kind of growth is remarkable. And as a result of that, you get more budget dollars to work with.
There’s no question that that kind of growth in the core donations that are funding this ecosystem definitely allows us to be able to have more dollars to work with, and we feel it. I would say there’s another thing too, and that is that younger people are re engaging at a much bigger and higher number than others in spirituality and faith. That bodes really well for where we’re at in the overall cycle.
Because the growth, if you look at that growth and you were to segment that, I would imagine that you’ll definitely see the younger people having a very significant positive influence on the market. Not only in terms of, you know, there’s more dollars to be worked with, no question, but it’s just encouraging. Right. Our market is encouraged. You know, they’re seeing a lot of opportunity to serve in their communities.
And when you have younger people starting to show up, that’s a very big encouragement. Got it.
Thank you. And then second question here. You mentioned 30% organic growth. How much of this do you think will come from new customer wins versus new customers expanding their spend. Yeah, it’s a 30% plus. I mean, we’re above that, but we’re very comfortable with that continued organic growth. But our big driver is new customers. That is what’s really driving our growth in terms of, you know, the within that organic growth. So much of it is new people that are getting introduced to glue360glue, AI masterworks, you know, Barna, you know, across the board.
It is really about attracting new into that and then growing the ones that we currently have. Both are happening, but absolutely, new names is super important. Pat, what would you add to that?
Pat Gelsinger (Executive Board Chair and Head of Technology)
Yeah, not, not too much to add. The opportunity for us as we build our sales force is one that we just get more and more account coverage over time and we’re regularly adding more salespeople to 360, to Masterworks, to our Westfall Gold. Every one of our offerings is getting more sales capacity and we’ll be able to invest more into it.
We do not see that there’s budget limitations, even though we don’t really fundamentally view that tighter budgets as a bad thing for us. Right. Because you know, fundamentally they’re looking for cost savings and we also present cost savings to them as well. So we do see ourselves in many respects as not particularly vulnerable to cost issues. But this is a good time for our ecosystem. As Scott has said, it’s a good time for our offering.
And as we build more capacity to sell and deliver, we do think that we see a very clean line of sight to a rapidly growing revenue customer base and land. Expand, expand for many quarters to come.
OPERATOR
Alright, thanks so much. That was super helpful. Thank you. Our last question comes from the line of Matthew Harrigan of Benchmark Stonex. Your line is open, Matthew.
Matthew Harrigan (Equity Analyst)
Thank you. Good to bookend the call. You made a reference at the end of one of your answers to getting traction with the Catholics and clearly you’ve been focused on evangelicals relative to Catholics or Anglicans. It’s interesting. I mean, the Catholic Church certainly was arguably the most successful hierarchical global organization for a long time. And obviously it’s unique on the educational side, both on secondary schools and a lot of universities, although they’re becoming, I guess, increasingly secularized.
If you really get traction on the Catholic side or some of the other denominations where you’re not as penetrated, could you hit a pretty fast tipping point where at a higher level you could have a lot of acceptance of a broad bouquet of products relative to, I think some of the denominations you’re dealing with, maybe more on a grassroots basis where you get really good word of mouth, but you kind of have to convince a lot of people to get momentum.
Scott Beck (Co Founder & CEO)
Thanks. And congratulations on the results, clearly. Yeah, thank you. Well, I think first I’d say that we’re probably not far enough along to know the repeatability of the sales patterns yet in the Catholic segment. So I’d say we’re. You know, it’s a great question for us to come back to in future quarters. As we have more Catholic customers, we see more of the sales motion. That said, given the hierarchical nature that you point to, we think that you actually have very referenceable relationships across them.
And as you get success in one, it will be very repeatable across others. So we do, for that very reason, think that we will have good sales productivity as we engage. We have also had the most success so far empowering tech in that sector, but we do see that the full range of our offerings could be applicable there at scale. We’ve also had good affinity for some of the AI opportunities that we uniquely have and gaining more momentum with customers there.
So overall, I say it’s very early for us, but we’re super happy because of the size. And when you look at the size of that portion of the marketplace, Archdiocese across the nation are large. They have large technology needs. And as you say, they’re structured, organized, and we believe will be very repeatable.
Matthew Harrigan (Equity Analyst)
And could that extend into the university side as well, or is that kind of a different animal? No, we do. We see it as very replicable in the university side. And of the 900 that we’ve coded a little bit, sort of 2/3, 1/3 that 2/3 are evangelically oriented and one third Catholic oriented. But we do hope to have several successes in the university side of the Catholic community as well.
OPERATOR
Great, thank you. Thank you. I would now like to turn the conference back to Scott Beck for closing remarks.
Scott Beck (Co Founder & CEO)
Sir? Yeah, thanks a lot. Appreciate that. You know, as you can tell in the call, we’re super excited about the performance, but we’re also really excited about the progress this faith and flourishing ecosystem needs. What glue is providing the technology and the marketing reach and then all being powered by AI, it is just incredibly good timing for us to be sort of at the point that we’re at. But it’s still early. We’re still early on our journey as a public company, but the momentum is strong and it’s growing.
We really do have an opportunity to build a category defining technology platform for this ecosystem. And in doing that, one of the things that excites us the most is that we can actually be engaged in shaping technology as a force for good. And if you think about it, the time and the intensity of the technology changes that are taking place right now is one of the most consequential periods of change in our lifetime. And to be able to be there and to be able to be on the front lines with these organizations is super encouraging to our organization.
But as we’re doing this, we always have to remember that we’re serving those who serve. That’s the ministers, the campus ministries, the rescue missions, the World Child Development Organization, the Global Water organization, the faith based universities, the churches and the denominations that serve them. And in doing that, they’re out on the front line and they’re out there changing lives for real people. They’re changing families, they’re changing cities.
And as we pursue this all together, we’re pursuing it so that we can accomplish the vision that we have. And that’s a world where every person can flourish and be all that they were born to be. I mean, that’s what fires us up. That’s what gets us out of bed in the morning and gets us pressing so hard. And you know, you all as shareholders are part of that. You’re making a difference in these organizations. You’re being able to give them access to capabilities and capital that allow them to scale what they love to do and what they’re called to do.
So we’re grateful. We’re grateful for the champions that we serve and we’re grateful for the shareholders that are serving on behalf of them with us. So on behalf of all of us, we say thank you. Thanks for tuning in today. You know, God bless you. God bless you and all your efforts and Glue and its efforts as well. Thank you.
OPERATOR
This concludes today’s conference call. Thank you for participating. You may now disconnect.
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