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Render raises funding at US$1.5bn valuation
Cloud startup Render has raised US$100 million at a $1.5 billion valuation. The company is benefitting from the people asking AI models to write software for them, and seeking advice on where to run new programs in a cloud computing world dominated by Amazon, OpenAI, Microsoft, Alphabet and Nvidia. Render’s co-founder and CEO, Anurag Goel, told CNBC that the company’s revenue growth is well over 100%, and more than 4.5 million developers use its tools. Goel also said that the company has benefited from a generational shift in how developers choose cloud developers. “Hyperscalers are no longer the default for teams that want to move fast. AI-assisted coding means developers can build faster than ever, and they need a cloud that can keep up. That's what Render delivers,” Goel said in a media release. Render was founded in 2018 and is San Francisco-based with around 100 employees. Investors include 01A, Addition, Bessemer Venture Partners, General Catalyst and Georgian Partners. With the new capital, Render will hire additional technical staff members to build features. The cloud startup runs its software on Amazon Web Services and Google Cloud Platform but is testing the use of its own servers. Expanding the
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Shopify stocks drop despite strong guidance
Shopify's stock fell despite beating the top line and giving strong guidance to start the year in its latest earnings. Revenue for the final quarter of 2025 grew 31% to US$3.67 million, beating expectations of $3.59 million. The e-commerce company also reported earnings of 48 cents per share. This was below analysts' expectations of 51 cents per share. Shopify also announced that it expects first-quarter revenue to expand at a “low-thirties percentage range” year-over-year, which is higher than the 25.1% growth forecast by analysts, according to FactSet. “2025 was Shopify at full throttle - driving compounding growth, while laying the rails for the new era of AI commerce,” Harley Finkelstein, President of Shopify, said. “2026 will be the year of the builders, and we’ll be powering them - from first sale to full scale.” The company’s board of directors also approved $2 billion in share buybacks. Shares of software companies have sold off heavily in recent weeks as investors grew increasingly concerned about the potential threat of artificial intelligence tools. The company has adopted AI technology and was an early partner of OpenAI when it launched its Instant Checkout feature. It also helped Google deve
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WorkDay CEO steps down, replaced by company co-founder
CEO of Workday, Carl Eschenbach, has stepped down from the top job, after just three years in the role. Co-founder Aneel Bhusri had stepped into the role effective immediately, his second tenure as CEO, having preceded Eschenbach prior to 2024. Workday, which offers financial software and management, student information services for universities and HR services, announced at the start of last year it would be cutting jobs equal to 8.5% of staff, as part of a restructuring plan pushed forward by AI investment. Now, this week, it has announced further cuts again, around 2% of staff, with Eschenbach stepping down shortly after, saying it had “been a privilege to serve as CEO". “I’m deeply grateful to Carl for leading Workday through an important chapter — scaling the company, building on our foundation, and positioning us well for what’s ahead,” said Bhusri. “We’re now entering one of the most pivotal moments in our history. AI…will define the next generation of market leaders.
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Databricks announces US$5 billion in funding
Data analytics company Databricks announced that it raised US$5 billion (A$7.09 billion) in funding and $2 billion in new debt capacity at a $134 billion valuation. The private company also revealed that its revenue run-rate rose 65%, exceeding $5.4 billion for the January quarter and delivering free cash flow over the past year. Databricks also said AI products now generate $1.4 billion in revenue run-rate. In June, it also forecast 50% growth. “With this new capital, we’ll double down on Lakebase so developers can create operational databases built for AI agents,” co-founder and CEO Ali Ghodsi said. “At the same time, we’re investing in Genie to let every employee chat with their data, driving accurate and actionable insights.” Ghodsi also told CNBC that it would consider going public “when the time is right”. This comes as Databricks surpasses its rival Snowflake, which reported $1.21 billion in revenue for the October quarter. Snowflake’s market cap is $60.21 billion. Snowflake (NYSE: SNOW) stocks have also risen 4.46% to $175.95. Other fast-growing AI labs like Anthropic and OpenAI are also considering 2026 initial public offerings, according to people familiar with the matter. Elon Musk also said t
Software
Monday.com tanks after lower than expected outlook
Monday.com's stock shed around 20.8% after the company’s revenue outlook came in below estimates. The estimated revenue is between US$388 million and $340 million in the current quarter, below the $343 million expected by analysts. For the full year, the company expects revenues between $1.452 and $1.462, while estimates expect $1.48 million. This comes as software stocks have sold off in recent weeks amid rising fears of AI disruption and worries that new agentic tools could replace them. So far this year, the iShares Expanded Tech-Software Sector ETF (IGV) has plummeted 22%, and Monday.com has already lost about half its value. The company has also shed over three-quarters of its market value from its November 2021 high. Management defended the company’s market position and highlighted new AI capabilities being implemented, such as agents and a vibe feature, to improve conversion and engagement. “We don’t see any impact currently from any AI company, and we’re shifting our product, regardless, to be more AI native,” co-CEO and co-founder Eran Zinman said during an earnings call. Zinman also said the company has pivoted messaging around ads and on its homepage to become more AI-focused. Despite this, the c

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Adobe results beat estimates for Q4 on record revenue
Adobe has come out ahead of estimates for its Q4 earnings, released in a report today. The tech giant Adobe achieved record revenue of US$6.19 billion, demonstrating 10% year-over-year growth, and ahead of the consensus estimate of $6.11 billion. Earnings per share were ahead of analysts' forecasts too, landing at $5.50 versus the estimate of $5.40. Cash flows from operations were also at a record level of US$3.16 billion. Adobe’s stock price closed at $343.13, down 0.4%, but recovered those losses in after-hours trade. The company credited a “strong global demand for our AI solutions” for the successful quarter. “Adobe’s record FY2025 results reflect our growing importance in the global AI ecosystem and the rapid adoption of our AI-driven tools,” said Shantanu Narayen, chair and CEO, in a press release. “By advancing our innovative generative and agentic platforms and expanding our customer base, we are excited to target double-digit ARR growth in FY2026.”
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Shopify experiences hours-long outage on Cyber Monday
E-commerce company Shopify was hit with an hours-long outage on Cyber Monday, leaving businesses unable to manage transactions on one of the biggest shopping days of the year. On its status page, Shopify said there have been some fixes to the issues, but that they are still monitoring the recovery of the issue. “We are still continuing to monitor the recovery of the issue,” Shopify’s most recent update said. “The Help Center is experiencing longer than normal wait times for Support while we update merchants regarding the status of the issue.” According to the Downdetector website, thousands of users reported issues with Shopify at around 1:15 pm EST after around 4,000 cases were reported by users at its peak at 11:00 am EST. Shopify sells software for merchants running online businesses as well as other services including advertising and payment processing. The e-commerce company also claims that it handles more than 10% of all e-commerce transactions in the U.S.. The outage coincided with one of the largest online sales days in the U.S., Cyber Monday. According to Adobe analytics, U.S. shoppers were expected to spend US$14.2 billion online on Cyber Monday, up 6.3% from last year, and spent US$11.7 billion
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Workday shares drop 8% on middling guidance
Software company Workday beat earnings estimates last quarter, but shares fell by 7.9% after it issued weaker-than-expected full-year guidance. Earnings per share were US$2.32, rising from $1.89 year-over-year and passing LSEG estimates of $2.18. Revenue was $2.43 billion, up 13% year-over-year and just above estimates of $2.42 billion. “Workday delivered another solid quarter, fueled by the strength and diversity of our business and the momentum we're seeing across our AI portfolio," said Workday CEO Carl Eschenbach. "By unifying people, money, and AI agents on one trusted platform, we're giving customers a real edge — helping them empower their people, simplify how work gets done, and drive results that truly matter.” “Our Q3 results were driven by continued progress across several key growth initiatives, as we accelerate innovation across the platform and bring exciting AI solutions to market,” said Workday CFO Zane Rowe. Its guidance projects subscription revenue of $8.828 billion across the fiscal year ending on 31 January. While its latest full-year outlook includes the impact of new contracts with the United States Defense Intelligence Agency, it was raised by just $13 million from August. Next quarter, it ex
Software
Block expects strong profit growth in 3yr outlook
Payment services company Block has projected its gross profit will grow in the mid-teens percentage range each year to 2028, sending shares up 7.6%. Gross profit will likely reach around US$15.8 billion in 2028, it said at its first investor day event since 2022. It also expects 17% gross profit growth to $11.98 billion across 2026. “We’re moving faster with greater scale and efficiency, driving product velocity across Square and Cash App to serve more customers and help them participate in the modern economy,” said Block CFO and COO Amrita Ahuja. “Our guidance reflects the strength of our connected ecosystems and our ability to deliver compounding growth while expanding margins. We’ll continue to invest in innovation across our networks to sustain performance and create long-term value for our customers and shareholders.” Adjusted earnings per share are expected to increase in the low thirties percentage range annually, reaching $5.50 by 2028, according to the company's prediction. Its adjusted operating income would also grow by around 30% each year to $4.6 billion in 2028. Block missed estimates on both revenue and earnings per share in its earnings report this month despite an increase in its Square business’