1、Barclays Capital Inc.and/or one of its affiliates does and seeks to do business with companiescovered in its research reports.As a result,investors should be aware that the firm may have aconflict of interest that could affect the objectivity of this report.Investors should consider thisreport as on

2、ly a single factor in making their investment decision.Please see analyst certifications and important disclosures beginning on page 16.U.S.SoftwareRaimos Roundup:Taking Stock ofSoftware Most Exposed to SearchTraffic HeadwindsQ2 earnings highlighted the impact that search trafficchanges are having a

3、cross the software universe.This week,we are taking a look at the names most exposed to paid andorganic traffic,with these most likely to see headwinds tolead generation as the market shifts further toward AI search.What Happened?We published our Q2 off-cycle previews,noting that software remains in

4、 a difficult position dueto GenAI debate overhangs.Checks were slightly better vs.on-cycle results,and we highlightSalesforce and Elastic as names with favorable setups into the print.For more,please see ournote here.Dayforce announced it signed a definitive agreement with Thoma Bravo to go private

5、for$70/share($12.3bn EV),subject to shareholder and regulatory approval(see note here).We hosted an expert call with an Elite Status Snowflake partner,which discussed favorabletrends around IT budget priorities for modern data&analytics players like SNOW and thecompanys progress around its AI/ML sol

6、utions compared to peers(see note here)We hosted an expert call with an Elastic and broader observability reseller,which discussed astable underlying backdrop for observability workloads,and improving y/y growth trends forElastic(ahead of FY26 guidance numbers)headlined by ongoing search strength(se