Agilysys Inc (AGYS) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Agilysys Fiscal 2024 Second Quarter Conference Call. As a reminder, today's conference may be recorded.

女士們、先生們，美好的一天，歡迎參加 Agilysys 2024 財年第二季電話會議。提醒一下，今天的會議可能會被錄音。

I would now like to turn the conference over to Jessica Hennessy, Senior Director of Corporate Strategy and Investor Relations at Agilysys. You may begin.

現在我想將會議交給 Agilysys 企業策略和投資者關係高級總監 Jessica Hennessy。你可以開始了。

Thank you, Victor, and good afternoon, everybody. Thank you for joining the Agilysys Fiscal 2024 Second Quarter Conference Call. We will get started in just a minute with management's comments. But before doing so, let me read the safe harbor language.

謝謝你，維克多，大家下午好。感謝您參加 Agilysys 2024 財政年度第二季電話會議。我們將在一分鐘內開始聽取管理層的評論。但在此之前，讓我先讀一下安全港語言。

Some statements made on today's call will be predictive and are intended to be made as forward-looking within the safe harbor protections of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial guidance. Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause results to differ materially.

今天的電話會議上所做的一些陳述將具有預測性，並且旨在在 1995 年《私人證券訴訟改革法案》的安全港保護範圍內做出前瞻性陳述，包括有關我們的財務指導的陳述。儘管該公司認為其前瞻性陳述是基於合理的假設，但此類陳述存在可能導致結果出現重大差異的風險和不確定性。

Important factors that could cause actual results to vary materially from these forward-looking statements include the effects of global economic factors on our business, the hospitality industry's need for technology solutions, our ability to drive sales, our ability to increase profitability and our ability to improve services margins and manage increased cost investments. And the risks set forth in the company's reports on Form 10-K and 10-Q and other reports filed with the Securities and Exchange Commission.

可能導致實際結果與這些前瞻性陳述有重大差異的重要因素包括全球經濟因素對我們業務的影響、酒店業對技術解決方案的需求、我們推動銷售的能力、我們提高盈利能力的能力以及我們提高服務利潤並管理增加的成本投資。以及公司向美國證券交易委員會提交的 10-K 表格和 10-Q 表格報告以及其他報告中列出的風險。

As a reminder, any references to record financial and business levels during this call refer only for the time period after Agilysys made the transformation to an entirely hospitality focused software solutions company in fiscal year 2014.

需要提醒的是，本次電話會議中提到的創紀錄的財務和業務水平僅指 Agilysys 在 2014 財年轉型為一家完全專注於酒店業的軟體解決方案公司之後的時期。

With that, I'd now like to turn the call over to Mr. Ramesh Srinivasan, President and CEO of Agilysys. Ramesh, please go ahead.

現在，我想將電話轉給 Agilysys 總裁兼執行長 Ramesh Srinivasan 先生。拉梅什，請繼續。

Thank you, Jess. Good evening. Welcome to the fiscal 2024 second quarter earnings call. Joining Jess and me on the call today at our Alpharetta, Atlanta Headquarters is Dave Wood, CFO.

謝謝你，傑西。晚安.歡迎參加 2024 財年第二季財報電話會議。今天，財務長 Dave Wood 與 Jess 和我一起在亞特蘭大阿爾法利塔總部參加了電話會議。

As has become the regular practice in our earnings calls. Let me cover the selling success summary first before moving on to revenue and other details.

這已成為我們財報電話會議的常規做法。讓我先介紹銷售成功總結，然後再介紹收入和其他細節。

We measure sales of selling success in net annual contract value, ACV, of sales agreements won and signed. Fiscal 2024, Q2, July to September was one of our best ever sales success quarters. Overall, fiscal 2024 April to September was our best first half of fiscal year sales, comfortably better than the first half last year.

我們以贏得和簽署的銷售協議的年度淨合約價值（ACV）來衡量銷售成功的銷售。 2024 財年第二季（7 月至 9 月）是我們有史以來銷售最成功的季度之一。整體而言，2024 財年 4 月至 9 月是我們上半年銷售最好的財年，明顯好於去年上半年。

Fiscal 2023 last year was, of course, our best ever full year of sales, and we are off to a significantly better start halfway through this year. July to September was a good sales quarter for virtually all the sales verticals across gaming casinos, resorts, cruise ships, hotels, managed food service providers and international regions.

當然，去年的 2023 財年是我們有史以來銷售最好的一年，今年上半年我們的開局明顯更好。 7 月至 9 月對於博彩賭場、度假村、遊輪、酒店、管理食品服務提供商和國際地區的幾乎所有銷售垂直行業來說都是一個良好的銷售季度。

Sales from non-gaming resorts, hotels and cruise ships were particularly stellar and encouraging because our market share levels in these areas are still low with major growth possibilities ahead. April to September was also our best first half thus far, for international sales across Europe and APAC.

非博彩度假村、飯店和遊輪的銷售尤其出色且令人鼓舞，因為我們在這些領域的市場份額水平仍然較低，但未來仍有很大的成長潛力。 4 月至 9 月也是我們迄今為止在歐洲和亞太地區國際銷售中表現最好的上半年。

As of the end of September, year-to-date APAC sales was already close to the full year sales level reached across all of last fiscal year. Our competitive positioning strength is increasing with every passing month, an end-to-end ecosystem of software solutions, the breadth and depth of feature sets offer with more getting added at increasing rates, now that most of the product reengineering efforts are done and over with, all based on state-of-the-art cloud-native technology, which can also work well in on-premise installations, which several hospitality customers still prefer. All that is becoming increasingly compelling value creators and unique selling propositions for us.

截至 9 月底，亞太地區年初至今的銷售額已接近上一財年全年的銷售額水準。我們的競爭定位優勢逐月增強，軟體解決方案的端到端生態系統、功能集的廣度和深度都在以越來越快的速度增加，現在大部分產品重新設計工作已經完成並結束所有這些都基於最先進的雲端原生技術，該技術也可以在本地安裝中運行良好，這是一些酒店業客戶仍然喜歡的。所有這些都成為我們越來越引人注目的價值創造者和獨特的銷售主張。

The significant pickup in selling success, which started around the month of August calendar 2022, has continued unabated through the recent July to September period, 13 months later. We've not seen any noticeable negative effects of macroeconomic challenges. The hospitality industry is global, huge and has a high need for technology and innovation to help with growing needs, to improve operational efficiencies, enable ease of use for staff users and help create far better guest experiences than are possible today.

銷售成功率從 2022 年 8 月左右開始顯著回升，並在 13 個月後的 7 月至 9 月期間持續有增無減。我們沒有看到宏觀經濟挑戰產生任何明顯的負面影響。酒店業是一個全球性的、規模龐大的行業，對技術和創新的需求很高，以幫助滿足不斷增長的需求、提高營運效率、方便員工用戶使用，並幫助創造比現在更好的賓客體驗。

We cannot say the technology providers of this industry have done too well keeping up with innovation needs due to among other reasons, a lack of focus on end-to-end hospitality needs. And far less than needed research and development investments. In the meanwhile, the digital transformation revolution around hospitality is accelerating, raising the expectations of property, employees and guests.

我們不能說該行業的技術供應商在滿足創新需求方面做得太好，原因之一是缺乏對端到端飯店需求的關注。並且遠低於所需的研發投資。同時，圍繞酒店業的數位轉型革命正在加速，提高了酒店、員工和客人的期望。

We think we have done well, executing on our strategy to fill that gap and expect our escalating product and technology-driven competitive advantages to continue to drive good business momentum in this huge total addressable market space. We think that momentum will have good staying power even in a possible challenging macroeconomic environment. In line with that assessment thus far, we are not seeing any growth threatening clouds in the sky.

我們認為我們做得很好，執行了我們的策略來填補這一空白，並期望我們不斷升級的產品和技術驅動的競爭優勢將繼續在這個巨大的總可尋址市場空間中推動良好的業務勢頭。我們認為，即使在可能充滿挑戰的宏觀經濟環境中，這種勢頭也將具有良好的持久力。根據迄今為止的評估，我們沒有看到天空中有任何威脅雲層增長的情況。

Our sales win loss ratios continue to be at impressive levels. One of the highlights of sales success during the first half of fiscal 2024, was a rapidly increasing sales productivity of quota carrying sales personnel hired during the past couple of years post-COVID. To place this in context, the average Agilysys tenure of our quota carrying sales personnel is around 7.5 years now. Of them, slightly less than half the personnel have joined us after COVID. And the average Agilysys tenure of this group is only about a year.

我們的銷售損益率持續保持在令人印象深刻的水平。 2024 財年上半年銷售成功的亮點之一是新冠疫情後過去幾年僱用的配額銷售人員的銷售效率迅速提高。考慮到這一點，我們的配額銷售人員目前 Agilysys 的平均任期約為 7.5 年。其中，不到一半的人員是在新冠疫情之後加入我們的。而這個族群的Agilysys平均任期只有一年左右。

During the first half of fiscal 2024, this group of sales personnel have already won sales measured in annual contract value, amounting to close to twice as much as they did all of last fiscal year.

在2024財年上半年，這群銷售人員已經贏得了以年度合約價值衡量的銷售額，相當於上一財年全年銷售額的近兩倍。

While we continue to make prudent and appropriate decisions, with respect to increasing sales force strength. Current sales staff still have additional capacity to not only maintain momentum but also grow sales from current levels. In addition, the number of marketing generated sales accepted opportunities, focused on new customers and new properties generated by innovative and effective marketing efforts continues to improve. During recent months, this number has been twice as high as it was at the same time last year.

同時，我們繼續在增強銷售團隊實力方面做出審慎和適當的決定。目前的銷售人員仍有額外的能力，不僅可以保持勢頭，還可以在當前水準上提高銷售額。此外，行銷所產生的銷售接受機會、專注於新客戶和新物業所產生的創新有效的行銷努力的數量不斷提高。最近幾個月，這個數字是去年同期的兩倍。

While our competitive strength with point-of-sale, POS solutions continues to improve by leaps and bounds and remains our mainstay. Sales wins during the first half of fiscal 2024, have also included several significant property management system, PMS, wins.

儘管我們在銷售點方面的競爭優勢不斷突飛猛進，但 POS 解決方案仍然是我們的支柱。 2024 財政年度上半年的銷售成果還包括多項重要的物業管理系統 PMS 成果。

A notable win during Q2 was Black Rock Oceanfront Resort on the Western Coast of Vancouver Island in British Columbia, Canada. This iconic property selected Agilysys PMS and several experience enhanced their add-on software modules for their stunning multi-amenity oceanfront resort.

第二季的一個顯著勝利是位於加拿大不列顛哥倫比亞省溫哥華島西海岸的黑岩海濱度假村。這家標誌性酒店選擇了 Agilysys PMS，並透過多項經驗增強了其令人驚嘆的多功能海濱度假村的附加軟體模組。

There are now close to 20 properties live on the modernized ground-up reengineered Visual One PMS, rebranded as Versa and released for production deployment about 18 months ago. We are still in the early stages of establishing our state-of-the-art technology-based cloud-native PMS value proposition in the field. There is a long runway of PMS and related modules growth ahead of us.

現在，有近 20 個屬性正在現代化的重新設計的 Visual One PMS 上運行，該 PMS 更名為 Versa，並在大約 18 個月前發布用於生產部署。我們仍處於在該領域建立基於最先進技術的雲端原生 PMS 價值主張的早期階段。 PMS 和相關模組的成長還有很長的路要走。

During Q2 fiscal 2024 July to September, we added 17, 1-7, 17 new customers, of which 76% were fully subscription agreements. 17 new customers is within the 15 to 20 new customers per quarter range, which has been one of the drivers of our revenue growth in the recent past. New customer deal sizes remains at impressively high levels.

在 2024 年第二季 7 月至 9 月期間，我們增加了 17 個、1-7 個、17 個新客戶，其中 76% 是完全訂閱協議。 17 個新客戶處於每季 15 至 20 個新客戶的範圍內，這一直是我們最近營收成長的驅動力之一。新客戶交易規模仍然保持在令人印象深刻的高水準。

We also added 70, 7-0, 70 new properties which did not have any of our products before, but the parent company was already our customer. The average deal size of new property deals this quarter was about 25% higher than the previous couple of quarters.

我們還增加了 70、7-0、70 個新物業，這些物業之前沒有我們的任何產品，但母公司已經是我們的客戶。本季新房地產交易的平均交易規模比前幾季高出約 25%。

Of the 87 new properties added during the quarter across new customers and new properties of current parent customers more than 90%, 9-0 -- more than 90% were either partially or fully subscription-based. In addition, there were 67 instances of selling at least 1 additional product to properties which already had one of our other products. These 67 instances involved a total of 142 new products sold to current customer properties.

在本季新增的 87 個新物業中，包括新客戶和目前母客戶的新物業，其中超過 90%（9-0）—超過 90% 是部分或完全基於訂閱的。此外，還有 67 起向已經擁有我們其他產品之一的物業出售至少 1 種額外產品的情況。這 67 起事件涉及向現有客戶物業出售的總共 142 種新產品。

The average deal size across the 67 instances of new product sales was about 40, 4-0, 40% higher than the sequentially preceding Q1 quarter.

67 個新產品銷售實例的平均交易規模比第一季環比高出約 40%、4-0%、40%。

Now on to revenue. Fiscal 2024 Q2 revenue was a record $58.6 million, the seventh consecutive record revenue quarter, close to 23% higher than the comparable prior year period. The year-over-year quarter revenue increase of $10.9 million is the highest we've ever seen. Overall revenue during the first half of fiscal 2024 was 20% higher than revenue during the first half of fiscal 2023.

現在談談收入。 2024 財年第二季營收達到創紀錄的 5,860 萬美元，連續第七個季度營收創紀錄，比去年同期成長近 23%。該季度營收年增 1,090 萬美元，是我們見過的最高增幅。 2024 財年上半年的總收入比 2023 財年上半年的收入高出 20%。

Fiscal 2024 Q2 recurring revenue grew 18%, 1-8, 18% year-over-year and 6.6% sequentially quarter-over-quarter to a record $34.2 million, driven by a 29% year-over-year increase in subscription revenue. Subscription revenue constituted 53.6% of total recurring revenue compared to 48.9% Q2 of last year.

受訂閱營收年增 29% 的推動，2024 財年第二季經常性營收年增 18%、1-8、18%，季增 6.6%，達到創紀錄的 3,420 萬美元。訂閱收入佔經常性總收入的 53.6%，去年第二季為 48.9%。

The year-over-year growth in quarter subscription revenue compared to Q2 of last year was a record $4.1 million, consisting of record year-over-year increases in both POS and PMS and related modules. Quarter-over-quarter sequential growth of subscription revenue of $1.6 million and overall recurring revenue of $2.1 million where both are best such sequential increases.

與去年第二季相比，本季訂閱營收年增創紀錄的 410 萬美元，其中 POS 和 PMS 及相關模組的年成長創紀錄。訂閱收入環比增長 160 萬美元，整體經常性收入環比增長 210 萬美元，兩者都是此類環比增長最好的。

Subscription revenue generated from add-on experience enhancement software modules, most of which were developed during the past few years, grew at a slightly better rate year-over-year than the overall subscription growth of 29%. The value of these models and the modules and the end-to-end ecosystem we have built over the past few years goes far beyond such numbers. These add-on modules working in conjunction with each other and with the core POS and PMS products. are helping customers make tangible measurable improvements in their operations.

附加體驗增強軟體模組產生的訂閱收入（其中大部分是在過去幾年中開發的）的年成長率略高於整體訂閱成長率 29%。我們過去幾年建立的這些模型和模組以及端到端生態系統的價值遠遠超出了這些數字。這些附加模組相互協同工作，並與核心 POS 和 PMS 產品協同工作。正在幫助客戶對其營運進行切實可衡量的改進。

We heard several such customer stories about positive measurable impact on hotel operations during to recent gaming show and in customer advisory board meetings held in Las Vegas and these stories were shared with other attending customers. Each of these modules are competing on their own as best-of-breed solutions and bringing tremendous value when used, enhanced and innovated together.

在最近的博彩展和在拉斯維加斯舉行的客戶顧問委員會會議上，我們聽到了幾個這樣的客戶故事，這些故事對酒店運營產生了積極的可衡量的影響，並且這些故事與其他出席的客戶分享了。這些模組中的每一個都作為最佳解決方案相互競爭，並在共同使用、增強和創新時帶來巨大的價值。

Services revenue was a record $11.7 million, 44% higher than the comparable prior year quarter. The increasing pace of implementations being handled by services teams augurs well for upcoming recurring revenue growth. We continue to make good progress with implementing relatively newer software products and modules at a quicker pace now, handling complex multiproduct implementations and managing the balance between majority cloud and several on-premise installations.

服務收入達到創紀錄的 1,170 萬美元，比去年同期成長 44%。服務團隊處理的實施速度不斷加快，這預示著即將到來的經常性收入成長。我們現在繼續取得良好進展，以更快的速度實施相對較新的軟體產品和模組，處理複雜的多產品實施並管理大多數雲端和多個本地安裝之間的平衡。

Services margins improved to 23.6%, but still fell short of our 25% expectation. Improving services margins from current levels remains one of the few business objectives. We are falling short off currently. We remain focused on taking all necessary steps to improve services margins without affecting customer satisfaction levels.

服務利潤率改善至 23.6%，但仍低於我們 25% 的預期。在當前水準上提高服務利潤仍然是少數的業務目標之一。目前我們還不夠。我們仍然致力於採取一切必要措施來提高服務利潤而不影響客戶滿意度。

Onetime revenue consisting of product and services revenue added up to a record $24.4 million, about 30%, 3-0, 30% higher than the comparable prior year quarter.

由產品和服務收入組成的一次性收入總計達到創紀錄的 2,440 萬美元，比去年同期高出約 30%、3-0、30%。

Revenue levels during the first half exceeded our initial expectations, and we are now happy to be in a position to raise full year fiscal year 2024 revenue guidance range to $235 million to $238 million.

上半年的營收水準超出了我們最初的預期，我們現在很高興能夠將 2024 財年全年收入指引提高至 2.35 億美元至 2.38 億美元。

The rate of project implementations has picked up well and subscription revenue growth during the first half of the year was better than we anticipated. We think subscription revenue growth during full year fiscal 2024 will be 28%. Significantly better than the previous guidance of 25%.

專案實施率明顯回升，上半年訂閱收入成長優於我們的預期。我們認為 2024 財年全年訂閱營收成長將為 28%。明顯優於之前 25% 的指導。

Adjusted EBITDA for the quarter was $8.1 million and 13, 1-3, 13.7% of revenue a couple of percentage points better than the sequential prior Q1 quarter and ahead of our expectations going into the fiscal year.

本季調整後 EBITDA 為 810 萬美元，佔營收的 13%、1-3%、13.7%，比上一季的環比高出幾個百分點，並且超出了我們對進入本財年的預期。

We've done well managing through a difficult period of increased cost investments which were required to drive medium-term revenue growth. Increasing revenue and stabilizing cost levels should help us improve profitability consistently going forward.

我們在成本投資增加的困難時期做得很好，這是推動中期收入成長所必需的。增加收入和穩定成本水準應該有助於我們持續提高獲利能力。

We now expect EBITDA revenue to be 14, 1-4, 14% for full year fiscal 2024, 1 percentage point higher than the 13% guidance provided at the beginning of the year.

我們目前預計 2024 財年全年 EBITDA 收入將為 14%、1-4%、14%，比年初提供的 13% 指導值高出 1 個百分點。

With that, let me hand over the call to Dave for further color.

接下來，讓我將電話轉交給戴夫以進一步了解情況。

Thank you, Ramesh. Taking a look at our financial results, beginning with the income statement. Second quarter fiscal 2024 revenue was a quarterly record of $58.6 million. a 22.8% increase from total net revenue of $47.7 million in the comparable prior year period.

謝謝你，拉梅什。從損益表開始看一下我們的財務表現。 2024 財年第二季營收達 5,860 萬美元，創下季度紀錄。與去年同期 4,770 萬美元的總淨收入相比，成長了 22.8%。

All 3 product lines increased compared to the prior year period, with product revenue up 19.8% and professional services up 43.8%. Recurring revenue was also up 18% with subscription up 29.1% over the prior year period.

3條產品線均較去年同期成長，產品收入成長19.8%，專業服務成長43.8%。經常性收入也比去年同期成長了 18%，其中訂閱收入成長了 29.1%。

Sales momentum continued throughout Q2 with total exit backlog remaining strong and near-record levels despite revenue being above our expectations. We are also -- we also remain pleased to see our professional services backlog remain about the same for the second quarter in a row despite strong sales as implementation, efficiencies and effectiveness of the services team have continued to improve.

儘管收入高於我們的預期，但整個第二季度的銷售勢頭仍在持續，退出積壓總量仍然強勁並接近歷史記錄水平。我們也很高興地看到，儘管銷售強勁，但我們的專業服務積壓工作連續第二季度保持不變，因為服務團隊的實施、效率和有效性不斷提高。

Product revenue increased 19.8% over the prior fiscal year to $12.6 million. Our point-of-sale business continues to perform better than expected, which is increasing our product revenue expectations for the year. We now expect product revenue to stay north of $12.5 million during the last 2 quarters of the fiscal year.

產品營收比上一財年成長 19.8%，達到 1,260 萬美元。我們的銷售點業務的表現持續優於預期，這提高了我們今年的產品收入預期。我們現在預計本財年最後兩季的產品收入將維持在 1,250 萬美元以上。

Professional services increased 43.8% over the prior fiscal period to a record $11.7 million. As previously mentioned, we are pleased that implementations are keeping pace with sales velocity and backlog levels have begun to stabilize at near record levels.

專業服務比上一財年成長 43.8%，達到創紀錄的 1,170 萬美元。如前所述，我們很高興看到實施與銷售速度保持同步，並且積壓水平已開始穩定在接近歷史記錄的水平。

We expect professional services to continue to increase sequentially throughout the year and should grow north of 30% for the full fiscal year.

我們預計專業服務全年將持續較上季成長，整個財年成長應超過 30%。

Most of our professional service revenue is related to projects contributing to the acceleration of fiscal year '24 subscription revenue. Development for large projects the corresponding subscription revenue happening in future years has been less than 10% of revenue.

我們的大部分專業服務收入都與有助於加速 '24 財年訂閱收入成長的項目有關。對於大型專案的開發，未來幾年發生的相應訂閱收入已不足收入的10%。

Total recurring revenue represented 58.4% of total net revenue for the fiscal second quarter compared to 60.8% of total net revenue in the second quarter of fiscal 2023. Recurring revenue as a percentage of total revenue decreased slightly because of a 30.3% increase in onetime revenue consisting of products and professional services.

經常性收入總額佔第二財季淨收入總額的 58.4%，而 2023 財年第二季佔淨收入總額的 60.8%。由於一次性收入增長 30.3%，經常性收入佔總收入的百分比略有下降包括產品和專業服務。

Subscription revenue grew at 29.1% for the second quarter of fiscal 2024. Subscription revenue now comprises higher than 50% of total recurring revenue at 53.6% compared to 48.9% of total recurring revenue in the second quarter of fiscal 2023.

2024 財年第二季訂閱營收成長了 29.1%。訂閱營收目前佔經常性總營收的 50% 以上，達到 53.6%，而 2023 財年第二季佔經常性總營收的 48.9%。

Subscription revenue increased sequentially $1.6 million and was better than the FY '24 expectation for sequential revenue increases. The subscription backlog remains strong and we expect subscription revenue to continue to increase between $0.9 million and $1.2 million sequentially each quarter for the rest of the fiscal year.

訂閱營收季增 160 萬美元，優於 24 財年營收季增預期。訂閱積壓依然強勁，我們預計本財年剩餘時間內每季的訂閱營收將持續增加 90 萬美元至 120 萬美元。

Q2 was higher than normal due to timing of completion of a couple of large multiproduct implementations, which were in the backlog and were being worked on during prior quarters.

第二季的業績高於正常水平，原因是幾個大型多產品實施的完成時間，這些實施處於積壓工作中，並且在前幾個季度正在進行中。

Moving down the income statement. Gross profit was $35.1 million compared to $29.4 million in the second quarter of fiscal 2023. Gross profit margin was 59.9% compared to 61.5% in the second quarter of fiscal 2023. As expected, gross margin was affected in the first half of the year as we continue to ramp up the services team. Second half gross margin should get back into the 60% range.

將損益表向下移動。毛利為 3,510 萬美元，而 2023 財年第二季為 2,940 萬美元。毛利率為 59.9%，而 2023 財年第二季為 61.5%。正如預期的那樣，今年上半年毛利率受到以下影響：我們持續加強服務團隊。下半年毛利率應該會回到60%左右。

Combined, the 3 main operating expense line items, product development, sales and marketing and general and administrative expenses, excluding stock-based compensation, were 46.2% of revenue compared to 46.1% of revenue in the prior year quarter. Product development increased slightly to 22.8% due to previously discussed additional investments made to prepare for large future deployments compared to 21.9% of revenue in the prior fiscal year.

合計起來，產品開發、銷售和行銷以及一般和管理費用（不包括股票薪酬）這 3 個主要營運費用項目佔收入的 46.2%，而去年同期佔收入的 46.1%。由於先前討論過為未來大規模部署做準備而進行的額外投資，產品開發小幅增長至 22.8%，而上一財年的收入為 21.9%。

General and administrative expenses decreased to 12.7% compared to 13.7% of revenue in the second quarter of fiscal 2023.

2023 財年第二季度，一般及管理費用佔營收的比例從 13.7% 下降至 12.7%。

Sales and marketing increased slightly from 10.5% of revenue to 10.8% of revenue, mostly due to timing of expenses.

銷售和行銷佔收入的比例從 10.5% 略有增加至 10.8%，這主要是由於支出的時間表。

Operating income for the second quarter of $3.6 million, net income of $4.1 million and gained per diluted share of $0.16 all increased compared to the prior year's second quarter gain of $2.9 million, $3.1 million and $0.12.

第二季營業收入為 360 萬美元，淨利為 410 萬美元，稀釋後每股收益為 0.16 美元，與去年第二季收益 290 萬美元、310 萬美元和 0.12 美元相比均增加。

Adjusted net income normalizing for certain noncash and nonrecurring charges of $6.6 million was slightly higher than adjusted net income of $6.3 million in the prior year second quarter and adjusted diluted earnings per share of $0.25 was slightly more than $0.24 in the prior year period.

某些非現金和非經常性費用正常化後的調整後淨利潤為660 萬美元，略高於去年第二季度調整後淨利潤630 萬美元，調整後攤薄每股收益為0.25 美元，略高於去年同期的0.24 美元。

For the 2024 second quarter, adjusted EBITDA was $8.1 million compared to $7.4 million in the year ago quarter. Adjusted EBITDA in Q2 FY '24 was 13.7% of revenue.

2024 年第二季度，調整後 EBITDA 為 810 萬美元，而去年同期為 740 萬美元。 2024 財年第二季調整後 EBITDA 佔營收的 13.7%。

Profitability for the quarter was better than previous guidance of high single digits, largely due to higher-than-expected revenue levels. Profitability levels remained comfortably ahead of our prior FY '24 guidance of adjusted EBITDA as a percentage of revenue of 13%.

該季度的獲利能力優於先前高個位數的指引，這主要是由於高於預期的收入水平。獲利水準仍遠高於我們先前 24 財年的指引（調整後 EBITDA 佔營收的 13%）。

Moving to the balance sheet and cash flow statement. Cash and marketable securities as of September 30, 2023, was $107.4 million compared to $112.8 million on March 31, 2023. We remain comfortable with our current levels of cash.

轉到資產負債表和現金流量表。截至 2023 年 9 月 30 日，現金和有價證券為 1.074 億美元，而 2023 年 3 月 31 日為 1.128 億美元。我們對目前的現金水準仍然滿意。

Free cash flow in the quarter was a gain of $2.5 million, slightly above $2.3 million in the prior year quarter. For the year, we still believe adjusted EBITDA less CapEx will be a good proxy for free cash flow.

本季自由現金流增加 250 萬美元，略高於去年同期的 230 萬美元。今年，我們仍然認為調整後的 EBITDA 減去資本支出將是自由現金流的良好代表。

For our fiscal year 2024, we are raising our revenue guidance range to $235 million to $238 million, inclusive of an increased expectation of 28% subscription revenue growth. We are also raising our profitability guidance from 13% to 14% adjusted EBITDA as a percentage of revenue for the year.

對於 2024 財年，我們將營收指引範圍提高至 2.35 億美元至 2.38 億美元，其中包括訂閱營收成長 28% 的預期。我們也將調整後 EBITDA 佔本年度營收的百分比從 13% 提高到 14%。

In closing, we are pleased with the sales momentum, professional service improvements and revenue growth during the first half of the year.

最後，我們對上半年的銷售動能、專業服務的改善和收入成長感到滿意。

With that, I will now turn the call back over to Ramesh.

現在，我將把電話轉回拉梅什。

Thank you, Dave. In summary, we do understand the macroeconomic headlines and the drumbeat of predictions of possible expected headwinds. We do not want to sound tone deaf to what we are hearing each day when we listen to the news and read what the economy pandits are saying. However, we can only report what our reality is. The truth is, we are not seeing any signs of slowdown in business momentum.

謝謝你，戴夫。總之，我們確實了解宏觀經濟頭條新聞以及對可能出現的不利因素的預測。當我們每天聽新聞和閱讀經濟專家的言論時，我們不想對自己所聽到的內容充耳不聞。然而，我們只能報告我們的現實情況。事實是，我們沒有看到任何業務勢頭放緩的跡象。

To use a crude example, we are a relatively small fishermen, now operating with state-of-the-art modern equipment, with huge growth potential in a large total addressable market pond with a lot of fish around of all possible sizes. It is possible that we may not feel any negative effects, even if there are any ripples or the level of the water shrinks a bit unless it becomes an enormous drought that overwhelms everything.

舉個簡單的例子，我們是一個相對較小的漁民，現在使用最先進的現代化設備進行作業，在一個巨大的總可尋址市場池塘中擁有巨大的增長潛力，周圍有大量各種尺寸的魚。即使有任何漣漪或水位下降一點，我們可能不會感受到任何負面影響，除非它變成一場壓倒一切的大乾旱。

We have met and spent time with many customers during recent trade shows and other meetings and have not heard of or seen signs of any reluctance on their part to make the required appropriate technology investments to meet their short-term and long-term business needs.

我們在最近的貿易展覽和其他會議上與許多客戶會面並進行了交流，沒有聽說或看到他們有任何不願意進行所需的適當技術投資來滿足其短期和長期業務需求的跡象。

In addition, the massive levels of product innovation we have worked through during recent years, including the creation of around 25 high-value-creating additional experience enhancer modules. The real tangible value, the modular and integrated solutions are beginning to create for customers. All of that is also providing an additional blanket around us that should protect our growth prospects for the foreseeable future. And we will ensure we remain disciplined managing growth, never getting too far ahead of ourselves.

此外，我們近年來進行了大量的產品創新，包括創建了大約 25 個高價值創造的附加體驗增強模組。真正有形的價值，模組化和整合的解決方案正在開始為客戶創造。所有這些也為我們提供了額外的保障，可以保護我們在可預見的未來的成長前景。我們將確保我們在管理成長方面保持自律，永遠不會超出自己太多。

While our implementation services effectiveness and efficiencies have improved significantly during the April to September, first half period of this year, the continuing sales success has kept aggregate recurring revenue, services and product backlog total at a near record level, giving us confidence in the raised revenue guidance provided. We will also continue to increase our sales and marketing investments as necessary to keep business momentum moving along.

雖然我們的實施服務有效性和效率在今年上半年的4 月至9 月期間顯著提高，但持續的銷售成功使經常性收入、服務和產品積壓總額保持在接近歷史記錄的水平，這使我們對提高的收入充滿信心提供收入指導。我們還將繼續根據需要增加銷售和行銷投資，以保持業務發展勢頭。

To repeat what we said last quarter, our overall business remains in excellent shape, and we are well positioned for all-round progress and growth.

重申我們上季度所說的，我們的整體業務仍然保持良好狀態，並且為全面進步和成長做好了充分準備。

With that, let's open the call up for questions. Victor?

接下來，讓我們開始提問。勝利者？

(Operator Instructions) And our first question will come from the line of Mayank Tandon from Needham.

（操作員說明）我們的第一個問題將來自來自 Needham 的 Mayank Tandon。

Well, first, congrats on the quarter and great to hear about the record sales performance.

好吧，首先，恭喜本季度，很高興聽到創紀錄的銷售業績。

Let me ask you more just in terms of the growth rate, as you look ahead, how do you break that down between new logo wins, expansion with existing clients and ARPU expansion. Could you maybe just parse it out between the 3 components as we think about growth going forward?

讓我問您更多關於成長率的問題，當您展望未來時，您如何分解新標誌的獲勝、現有客戶的擴展和 ARPU 擴展之間的關係。當我們考慮未來的成長時，您能否在這三個組成部分之間進行解析？

Yes. So when we think about the first half, Mayank, the sales from new customers, that is internally, we refer to it as new logos, new customer sales. When you compare the first half of this year versus the first half of last year, this year's new customer sales success was far higher, was significantly higher than last year. So that remains a big driver of growth for us. More new customers signing up with us is definitely a significant driver of growth.

是的。因此，當我們考慮上半年時，Mayank，來自新客戶的銷售，即在內部，我們將其稱為新徽標、新客戶銷售。當你把今年上半年和去年上半年做比較時，今年的新客戶銷售成功率要高得多，明顯高於去年。因此，這仍然是我們成長的一大推動力。更多新客戶與我們簽約無疑是成長的重要推手。

The other driver of growth is whether it is new products, meaning current properties signing up for new products or new customers signing up. Our deal sizes are giving us a big advantage now. Typically, customers sign up for multiple products compared to a few years ago. So deal size is the fact that customers sign up for multiple products instead of just one that remains a good growth driver for us.

成長的另一個驅動力是新產品，即現有酒店簽約新產品或新客戶簽約。我們的交易規模現在為我們帶來了很大的優勢。通常，與幾年前相比，客戶會註冊多種產品。因此，交易規模意味著客戶註冊了多種產品，而不僅僅是一種產品，這仍然是我們良好的成長動力。

The other growth driver that we expect to get better and better with every quarter is our PMS presence now. Property management systems, where we still have market share is still very low. We are becoming an increasing presence in all major PMS RFPs, and the products are also a lot more impressive now. That also is driving our growth forward, while the point-of-sale POS strength continues to remain and continues to drive forward.

我們預計每季都會變得越來越好的另一個成長動力是我們現在的 PMS 業務。我們仍然擁有的物業管理系統市佔率仍然很低。我們在所有主要 PMS RFP 中的影響力越來越大，而且產品現在也更加令人印象深刻。這也推動了我們的成長，同時銷售點 POS 的優勢繼續保持並繼續向前發展。

Our current customers also continue to make a lot more investments in us, whether it is new sites, our existing customers signing up for services and other existing product purchase expansions that is driving us as well. But above all, win-loss ratios, right, with -- without increasing our sales efforts way too much and spending too much, when we participate in an effort, the chances of winning is also much better now than what it used to be in the past. So I would say all that together is driving our growth forward now. And it is all product and innovation driven for now, and our marketing efforts are also getting a lot more opportunities to the door now. So I would say it's a combination of all those factors, Mayank.

我們現有的客戶也持續對我們進行更多投資，無論是新站點、現有客戶簽約服務或其他現有產品購買擴張，這也推動了我們。但最重要的是，贏負率，對，在不增加太多銷售力度和花費太多的情況下，當我們參與一項努力時，現在獲勝的機會也比以前好得多。過去。所以我想說，所有這些共同推動了我們的發展。目前一切都是產品和創新驅動的，我們的行銷工作現在也獲得了更多的機會。所以我想說這是所有這些因素的結合，Mayank。

That's very helpful color. And as a quick follow-up question, I wanted to focus on the margins. So the outperformance that you saw this quarter and then that you're guiding to for the remainder of the year, how does that break down between gross margin expansion and leverage on the operating cost line?

這是非常有用的顏色。作為一個快速的後續問題，我想關注利潤。那麼，您在本季度看到的優異表現以及今年剩餘時間的指導，毛利率擴張和營運成本線槓桿之間如何分解？

Yes. So gross margins were about one point ahead of expectations, largely just like we talked about, due to the higher revenue levels. Certainly, the sequential subscription increase of $1.6 million was pretty accretive to the gross margin expansion. So think of it as kind of one -- a point or two ahead on the gross margins. And then our cost was pretty much settled coming into Q2. I mean most of our investments for the rest of the year would be incremental. So the higher revenue, obviously, we didn't incur additional OpEx costs. So most of it was the revenue overachievement and the expansion of the subscription revenue.

是的。因此，由於收入水平較高，毛利率比預期高出約一個百分點，很大程度上就像我們談到的那樣。當然，160 萬美元的連續認購增加對毛利率的擴張相當有幫助。因此，可以將其視為一種——毛利率領先一兩個百分點。然後我們的成本在第二季就基本穩定了。我的意思是，我們今年剩餘時間的大部分投資將是增量的。因此，顯然，更高的收入，我們沒有產生額外的營運支出成本。所以大部分是收入的超額完成和訂閱收入的擴大。

And Mayank, what you should expect, like I mentioned in my comments, is margins, we typically measure our profitability as EBITDA by revenue to improve consistently from here. We've gone through the tough phase when we had to make significant cost investments in order to drive medium-term growth and you're aware of that. So starting now, you should see a consistent improvement in profitability during the second half of the year and into the next fiscal year as well.

Mayank，正如我在評論中提到的，你應該期望的是利潤率，我們通常透過收入來衡量我們的獲利能力（EBITDA），以從這裡開始持續改善。我們已經經歷了艱難的階段，當時我們必須進行大量成本投資才能推動中期成長，您也知道這一點。因此，從現在開始，您應該會看到下半年和下一財年的獲利能力持續改善。

That's great to hear. Again, congrats on the quarter.

聽到這個消息我很高興。再次恭喜本季。

Our next question comes from the line of Matthew VanVliet from BTIG.

我們的下一個問題來自 BTIG 的 Matthew VanVliet。

I guess when you made a couple of comments around, one, your win rates continue to be very strong. And then also the deals, especially in Europe and APAC that you mentioned strength there. So I guess as you think about sort of the big drivers there, and I know you went through a couple on the last question, but curious on how much, if at all, it's been mentioned that the win of the Marriott contract to sort of brought Agilysys, more top of mind for potential customers, how much that's helping versus the replatform product and then the sales investments, especially in the international markets driving that. Anything sort of additional on the international side that you would highlight that might be a little bit of a diverging or, I guess, at least a different driver than in the U.S.?

我想當你發表一些評論時，第一，你的勝率仍然非常高。然後還有交易，特別是您提到的歐洲和亞太地區的交易實力。所以我想當你想到那裡的一些大推動因素時，我知道你在最後一個問題上經歷了一些，但很好奇有多少人提到，如果有的話，贏得萬豪合約對Agilysys 帶來了潛在客戶更關心的問題，即與平台重組產品相比，它有多大幫助，然後是銷售投資，尤其是在推動這一目標的國際市場上。在國際方面，您有什麼需要強調的可能與美國有所不同的額外因素，或者我想，至少是與美國不同的驅動因素？

Yes. So whether it is international or even domestic areas where our market share is a bit low, I mean, actually very low. What is driving us to get the opportunities are superior marketing efforts compared to where we were 1 and 2 years ago. So those are -- the marketing efforts are definitely opening up opportunities for us. And the product -- the impressiveness of the product demos is definitely keeping us in contention. Now what we need to do is get more reference customers. There are many countries in the world where we have to establish ourselves more because apart from the product superiority and the ecosystem superiority, they also require customers who will give them the comfort feel that, yes, we went with these products, and we are doing well. That's what we are building now.

是的。所以無論是國際還是國內，我們的市佔率是有點低的，我的意思是，實際上非常低。與一兩年前相比，推動我們獲得機會的是卓越的行銷努力。所以這些——行銷工作肯定為我們帶來了機會。而產品—令人印象深刻的產品演示無疑讓我們處於競爭之中。現在我們需要做的是獲得更多的參考客戶。世界上有很多國家，我們必須更多地建立自己，因為除了產品優勢和生態系統優勢之外，他們還要求客戶能給他們一種舒適的感覺，是的，我們使用了這些產品，我們正在做出色地。這就是我們現在正在建造的。

The product work is more or less done, Matt, and now it is the field work that is beginning in many international regions and even in some domestic areas. So now we are focused on establishing these products, establishing these integrations within our ecosystem in the field and creating more reference customers and then the ball will really start rolling.

馬特，產品工作或多或少已經完成，現在是許多國際地區甚至國內一些地區正在開始的實地工作。因此，現在我們專注於建立這些產品，在我們的現場生態系統中建立這些集成，並創造更多的參考客戶，然後球才會真正開始滾動。

So the win-loss ratios are very good when customers look at our product demos and nobody else is doing this kind of end-to-end ecosystem innovation. But what we are focused on now is generating more presence in the field, more customers saying great things about our products. That's what we are focused on now.

因此，當客戶觀看我們的產品演示並且沒有其他人在進行這種端到端生態系統創新時，盈虧比非常好。但我們現在的重點是在該領域擴大影響力，讓更多客戶對我們的產品讚譽有加。這就是我們現在關注的重點。

Very helpful. And Dave, your comments seem to sort of imply that the majority of head count additions for the full year have more or less been made here. So one, wanted to just sort of confirm that's what your comments implied. But maybe more importantly, what would give you the confidence or the rationale to add additional head count in the back half especially as we think about the continued success of new business wins, do you need some additional capacity potentially on the services delivery team, especially as the Marriott project ramps up, or where do you stand in terms of total capacity on the delivery team in light of the better bookings performance of late.

很有幫助。戴夫，你的評論似乎暗示全年的大部分員工數量增加或多或少都是在這裡進行的。因此，我想確認一下您的評論所暗示的內容。但也許更重要的是，什麼能讓您有信心或有理由在後半段增加額外的人員數量，特別是當我們考慮新業務的持續成功時，您是否需要服務交付團隊中的一些額外能力，特別是隨著萬豪專案的推進，或者鑑於最近更好的預訂業績，您在交付團隊的總能力方面處於什麼位置。

Yes. So starting with the services team, I mean, we still have ramp left on the services team. I mean, they've done a tremendous job with revenue through the first half of the year, but there's still a ramp left on that team, which their gross margin could continue to increase. But certainly, I think we're pretty settled and we're pretty -- from a headcount, whether it's OpEx or delivery, we're pretty settled on head count and certainly for the revenue guidance we've given. But that's not to say that we wouldn't make more incremental investments as we see fit, right? If other parts of the market start to open up or there's something we wouldn't be bullish over that. But we feel pretty settled on where we sit from a head count perspective at the moment.

是的。因此，從服務團隊開始，我的意思是，我們的服務團隊仍然有剩餘。我的意思是，他們在今年上半年的收入方面做得非常出色，但該團隊仍然有上升空間，他們的毛利率可能會繼續增加。但當然，我認為我們已經相當確定了，而且我們已經相當確定了——從人員數量來看，無論是運營支出還是交付，我們都已經相當確定了人員數量，當然也包括我們給出的收入指導。但這並不是說我們不會進行更多我們認為合適的增量投資，對吧？如果市場的其他部分開始開放或有什麼事情我們不會看好。但從目前的人數角度來看，我們對自己的位置已經很確定了。

Next question will come from the line of George Sutton from Craig-Hallum.

下一個問題將來自 Craig-Hallum 的 George Sutton。

Ramesh, I appreciate the fishing analogy in particular. So you and I have talked about increasingly, you are playing offense versus playing defense, particularly when you're out at a large trade show. I just wondered if you could walk through what exactly you mean by that? And help translate that to a part of why you're seeing the sales success and the increased guidance.

拉梅什，我特別欣賞釣魚的比喻。所以你和我越來越多地談論，你是在進攻而不是防守，特別是當你參加大型貿易展時。我只是想知道你是否能解釋一下你的意思是什麼？並幫助將其轉化為您看到銷售成功和增加指導的部分原因。

Yes. So that comment about offense was a defense. Like when you compare us to a few years ago, right, when during my initial days here and even a couple of years after we got here as we started improving the products, Whenever you meet customers in trade shows, the success of implementations tends to be measured by the low number of pending issues, pending technical issues. So there are only 10 issues pending to be resolved. That's how they tend to be measured, and you are constantly playing defense with customers, making sure they stay with you despite the technical issues that are there and all that.

是的。所以關於進攻的評論是一種防守。就像當你將我們與幾年前進行比較時，對吧，當我剛來這裡的時候，甚至在我們到達這裡的幾年後，我們開始改進產品時，每當你在貿易展覽中見到客戶時，實施的成功往往是透過懸而未決的問題和懸而未決的技術問題的數量較少來衡量。因此，只有 10 個問題有待解決。這就是衡量他們的方式，你不斷地與客戶進行防禦，確保他們在技術問題的情況下留在你身邊。

In recent shows, especially this year in the various shows we have attended, there were more and more stories and some of these stories were shared publicly in publicly attended sessions where they were talking about we moved from a competing system to Agilysys. We implemented their core PMS product and these two or three additional modules. And these business parameters went up from this percentage to that. So they were actually happy to share those details with other customers. So that's what I mean by playing offense that we no longer go into trade shows expecting to play defense like many enterprise software companies do, where customers are going to come and complain and you're going to defend with them. Now we are looking for the positive stories that can be shared with other customers.

在最近的展會中，尤其是今年我們參加的各種展會中，有越來越多的故事，其中一些故事在公開參加的會議上公開分享，他們在談論我們從競爭系統轉向 Agilysys。我們實作了他們的核心 PMS 產品和這兩個或三個附加模組。這些業務參數從這個百分比上升到那個百分比。所以他們實際上很樂意與其他客戶分享這些細節。這就是我所說的進攻的意思，我們不再像許多企業軟體公司那樣參加貿易展覽，期望進行防守，客戶會過來抱怨，而你將與他們一起防守。現在我們正在尋找可以與其他客戶分享的正面故事。

So more and more, we are switching to offense from the defense we used to be many years ago. And the products are supporting that and our implementation services staff are supporting that. Our support is becoming better as we go along. So there are more positive stories for customers to share with others that provides an incentive for other customers to buy the products as well. That's what I meant, George.

因此，我們越來越多地從多年前的防守轉向進攻。產品支援這一點，我們的實施服務人員也支持這一點。隨著我們的前進，我們的支持變得越來越好。因此，客戶可以與其他人分享更多正面的故事，激勵其他客戶也購買這些產品。這就是我的意思，喬治。

That's great. So there were clearly some big large operators, particularly in the gaming space that have had some cybersecurity issues. I know you've made a big investment in your capabilities on the cybersecurity side. Can you talk about any impacts that those have had to you? And what happens when cybersecurity becomes part of a sales cycle, which I know is increasingly important. How are you doing in those situations?

那太棒了。因此，顯然有一些大型運營商，特別是在遊戲領域，存在一些網路安全問題。我知道您在網路安全方面的能力方面進行了大量投資。您能談談這些對您產生的影響嗎？當網路安全成為銷售週期的一部分時會發生什麼，我知道這變得越來越重要。在這些情況下你表現如何？

Yes. So a number of questions there, let me make sure I cover all of them. Number one, no impact directly. There a couple of news that you have heard recently. No direct impact. Our knowledge of the incidents and our overall understanding of the incidents is nothing more than what has been reported publicly. So not impacted directly, and we are not directly involved in it, though we were there to help the customers with bringing up the various products back up again. To the extent they asked us for help, of course, we were absolutely always there to help them.

是的。這裡有很多問題，讓我確保我涵蓋了所有這些問題。第一，沒有直接影響。您最近聽到了一些消息。無直接影響。我們對這些事件的了解以及對這些事件的整體了解只不過是公開報導的內容。因此，沒有受到直接影響，我們也沒有直接參與其中，儘管我們在那裡幫助客戶重新恢復各種產品。當然，如果他們向我們尋求幫助，我們絕對會隨時為他們提供幫助。

So a couple of things to keep in mind here, George. As you think through this. Number one, cybersecurity incidents are not new in hospitality. If you just go look up in the last, say, 5 years or so, there's quite a list of hospitality customers, our customers who have been affected by this because they tend to deal with a lot of guests, a lot of consumers. So hospitality tends to be like a magnet, right, it attacks the hackers and cybersecurity incidents tend to happen. So number one, what happened a few months ago is not new. It has happened many times before. So that is one thing to keep in mind.

喬治，這裡有幾件事要記住。當你思考這個問題。第一，網路安全事件在飯店業並不新鮮。如果你去查過去，比如說，五年左右的時間，就會發現有相當多的飯店客戶，我們的客戶受到了影響，因為他們往往會與很多客人、很多消費者打交道。所以熱情好客往往就像一塊磁鐵，對吧，它會攻擊駭客，網路安全事件往往會發生。所以第一，幾個月前發生的事情並不新鮮。以前已經發生過很多次了。所以這是需要記住的一件事。

The other thing to keep in mind is our revenue growth now is broad-based. Our sales and revenue growth -- sales growth, revenue growth is broad-based and not too dependent on 1, 2 or 3 customers, right, right across the chain, only in enterprise software. So we are not in the SMB space. But in that enterprise software, the size doesn't matter, there's just a lot of fish in the pond to use that analogy.

另一件要記住的事情是我們現在的收入成長是廣泛的。我們的銷售和收入成長——銷售成長、收入成長是基礎廣泛的，不太依賴 1、2 或 3 個客戶，對的，對整個鏈條來說，只在企業軟體領域。所以我們不屬於中小企業領域。但在企業軟體中，規模並不重要，用這個比喻來說，池塘裡有很多魚。

Some decisions do get postponed, George but none of them get canceled and those kinds of decisions being postponed because they are focused on getting themselves back or tightening cybersecurity around themselves does not too badly affect our sales or anything. The decisions get postponed and then they tend to happen a few months later. So it's not any direct impact or something we are too worried about from a sales or revenue growth standpoint.

有些決定確實被推遲了，喬治，但沒有一個被取消，而那些因為專注於讓自己恢復健康或加強自身周圍的網路安全而被推遲的決定並不會嚴重影響我們的銷售或其他任何事情。決定會被推遲，然後往往會在幾個月後做出。因此，從銷售或收入成長的角度來看，這並不是任何直接影響，也不是我們過於擔心的事情。

But what we are worried about is making sure we are there to help the customers whenever required. And we do help several customers during the year. This is sort of a regular thing and reasonably frequently, and we are always there to help customers. We have security specialists with us and all that. So we are always involved in helping. But I wouldn't be worried about these from a sales and revenue growth standpoint.

但我們擔心的是確保我們在客戶需要時隨時為他們提供協助。我們在這一年中確實幫助了幾位客戶。這是一件很常見的事情，而且相當頻繁，我們總是在那裡為客戶提供幫助。我們有安全專家等等。所以我們總是參與幫助。但從銷售和收入成長的角度來看，我不會擔心這些。

So we have protected ourselves very well as best as we can. There is no perfection in cybersecurity, multiple layers within the company, very severe training of employees, very stringent training of employees, protecting various layers of our business. And even if a hacker gets through to 1 layer, making sure they cannot reach much. So we have worked with several great vendor partners to do increasing investments to make sure that we are absolutely about as well protected as you can be.

因此，我們已盡最大努力保護自己。網路安全並不完美，公司內部有多層，對員工的培訓非常嚴格，對員工的培訓非常嚴格，保護我們業務的各個層面。即使駭客進入了第一層，也確保他們無法到達太多地方。因此，我們與幾家優秀的供應商合作夥伴合作，增加投資，以確保我們絕對得到與您一樣好的保護。

And also in application design and the applications we create, our information security personnel are always involved. Now it's a joint exercise among IT, information security and product development. to make sure that the products we are creating cannot be used as a weapon later on. Again, there's no perfection there, but we are absolutely doing our best to both protect ourselves and the customers.

在應用程式設計和我們創建的應用程式中，我們的資訊安全人員也始終參與其中。現在它是IT、資訊安全和產品開發之間的聯合演習。確保我們正在創造的產品以後不會被用作武器。再說一次，世界上並不存在完美，但我們絕對會盡最大努力保護自己和客戶。

Apologies, I'd love to just squeeze one more in. You haven't said a favorable thing necessarily about managed food service for a while, and this sounds like it was a pretty good quarter. Could you -- just give us a little bit more specificity in that specific area?

抱歉，我很想再插一句。您已經有一段時間沒有對管理食品服務說過任何有利的話了，這聽起來像是一個相當不錯的季度。您能否在該特定領域為我們提供更多具體資訊？

Yes. So the FSM, George, continues to recover and progress well from COVID time. But if there is a star in this particular first half of sales and Q2 sales, it is definitely resorts and cruise ships. So what we refer to as HRC internally, hotels, resorts, cruise ships was definitely the star performer compared to how much things have improved over the last couple of years. FSM, I would say, continues to show a steady improvement from the depth of the COVID days.

是的。因此，喬治，密克羅尼西亞聯邦繼續從新冠疫情時期恢復並取得良好進展。但如果說上半年銷售和第二季銷售中有一顆明星的話，那肯定是度假村和遊輪。因此，與過去幾年的改善相比，我們內部所說的 HRC、飯店、度假村、遊輪絕對是表現最好的。我想說的是，密克羅尼西亞聯邦自新冠肺炎疫情最嚴重時期以來，繼續表現出穩步改善的勢頭。

Thank you, and our next question will come from the line of Brian Schwartz from Oppenheimer.

謝謝，我們的下一個問題將來自奧本海默的布萊恩·施瓦茨 (Brian Schwartz)。

This is Ari Friedman sitting in for Brian Schwartz. Congrats on the quarter. I remember speaking about management companies, midsized management companies and like the opportunity there. And I was wondering what's like the usual product or module that they land with? And how does this compare to you, say, like your other customers you currently have? And where do you see the opportunity ahead there?

這是阿里·弗里德曼 (Ari Friedman) 代替布萊恩·施瓦茨 (Brian Schwartz)。恭喜本季。我記得談到管理公司、中型管理公司，並且喜歡那裡的機會。我想知道他們通常使用的產品或模組是什麼樣的？與您目前擁有的其他客戶相比，這又如何？您認為未來的機會在哪裡？

Yes. Ari. So as far as midsized management companies, that is one area we continue to make good progress. I would say a good majority of the sales deals we are involved in with such companies tends to be on the point-of-sale POS side, and they tend to use the PMS that is suggested or recommended by the various brand names who are -- whose brand name tends to be used in those properties. So the best way I would describe it is our progress with midsized management companies continues to improve. We are talking to more and more of them who are keen on looking at our latest product versions. It tends to be more on the POS side at the moment and the PMS side continues to improve.

是的。阿里。就中型管理公司而言，這是我們持續取得良好進展的領域。我想說，我們與這類公司進行的大部分銷售交易往往是在銷售點 POS 端，他們傾向於使用由各個品牌建議或推薦的 PMS，這些品牌是 - - 這些房產中往往使用其品牌名稱。因此，我描述它的最好方式是我們與中型管理公司的進展不斷改善。我們正在與越來越多的熱衷於查看我們最新產品版本的人進行交談。目前更多的是POS端，PMS端也在不斷改進。

Got it. And then I guess like one other question is you guys talked about strength in POS as well this quarter and last. I was wondering if you could like compare to like maybe like a baseball analogy, what inning would you say we are in terms of like the growth and how much is left for POS?

知道了。然後我想就像另一個問題一樣，你們在本季和上一季也談到了 POS 的優勢。我想知道您是否可以像棒球類比一樣進行比較，您認為我們在增長方面處於哪一局以及 POS 還剩多少？

Yes. I mean there's a lot of growth, Ari, left for POS. We are doing well with POS. The competitive advantages of POS had been established with all the rewriting and reengineering we have done. We seem to be ahead of the competitors as far as POS is concerned, because we've had a long track record with it. Well-established product, a lot of good stories in the field.

是的。我的意思是，Ari，POS 仍有很大的成長空間。我們在 POS 方面做得很好。 POS 的競爭優勢是透過我們所做的所有重寫和再設計而確立的。就 POS 而言，我們似乎領先於競爭對手，因為我們在這方面擁有長期的記錄。成熟的產品，該領域有很多好故事。

So POS has been a strength of ours, and it continues to improve. But market share-wise, our POS market share is still very low in many areas. So there's just a lot of growth ahead on the POS side. Though we are a bit more mature in how we compete in the market.

因此，POS 一直是我們的優勢，而且還在不斷改進。但從市佔率來看，我們的POS在許多領域的市佔率仍然很低。因此，POS 方面還有很大的成長空間。儘管我們在市場競爭方面更加成熟。

On the PMS side, all the product reengineering work is done. We've also created like 20 additional modules that are adding a lot of value, but we still have more field work to get done. The product work is done, but as far as establishing the PMS products in the field, having more customers sing the praises of the products that I would say we are very early in the baseball game. We are in the first or second inning there. And that still has to improve.

在PMS方面，所有的產品再造工作都完成了。我們還創建了大約 20 個附加模組，這些模組增加了很多價值，但我們仍然有更多的現場工作要做。產品工作已經完成，但就在該領域建立 PMS 產品而言，讓更多的客戶對產品讚不絕口，我想說我們還處於棒球比賽的早期階段。我們正處於第一或第二局。這仍然需要改進。

POS were well established, high competitive strength, but still low market share in many areas, both geographical and sales verticals. PMS, all the product work is done. We are in the early stages of establishing ourselves in the field.

POS 已發展成熟，競爭實力較高，但在許多領域（無論是地理還是銷售垂直領域）的市佔率仍然較低。 PMS，所有產品工作都完成了。我們正處於在該領域立足的早期階段。

And our next question will come from the line of Nehal Chokshi from Northland Capital Markets.

我們的下一個問題將來自 Northland Capital Markets 的 Nehal Chokshi。

Great quarter, nice business, big revenue and EBITDA guidance uptick. It sounds like this is being driven by an earlier than expected turn of some large implementations rather than better-than-expected ACV in the September quarter. Is that correct?

出色的季度、良好的業務、巨大的收入和 EBITDA 指引的上升。聽起來這是由於一些大型實施的轉變早於預期，而不是九月季度的 ACV 好於預期。那是對的嗎？

No, Nehal. I would not say that is correct. The subscription revenue growth was driven by a couple of large projects that went live, and our revenue recognition -- we only recognize the revenue after they go live. But that has got nothing to do with the sales progress we talked about. The sales progress has been broad-based. It has been particularly high in the resorts and cruise ships and hotels in that space. But gaming casinos continues to do very well. FSM continues to improve, and we had our best half of sales internationally ever before -- than ever before.

不，內哈爾。我不會說這是正確的。訂閱收入的成長是由幾個上線的大型專案以及我們的收入確認所推動的——我們只有在它們上線後才確認收入。但這與我們談論的銷售進度無關。銷售進展廣泛。在該領域的度假村、遊輪和酒店中，這一比例尤其高。但博彩賭場仍然表現出色。 FSM 不斷改進，我們的國際銷售額達到了有史以來最好的一半——比以往任何時候都要多。

So sales is broad-based across all our verticals, but subscription revenue growth, the sequential growth this quarter was driven by a couple of large implementations that went live that we have been working on for quite some time.

因此，我們所有垂直領域的銷售基礎都很廣泛，但訂閱收入的成長以及本季的環比成長是由我們已經投入相當長一段時間的幾個大型實施所推動的。

Okay. So to be clear, the main reason why you're raising guidance is that you did have a really strong ACV bookings quarter within September quarter.

好的。因此，需要明確的是，您提高指引的主要原因是您在 9 月季度的 ACV 預訂季度確實非常強勁。

Yes, Nehal, we had a strong sales quarter. And even despite the large revenue increase, I mean, keep in mind, our backlog is still at near record levels. I mean, it's for most of our product lines, it's within the -- it's either #1, #2 or #3 as far as record levels. So despite the good revenue quarter, there wasn't a depletion in the backlog, which sales is going really well as well.

是的，Nehal，我們的銷售季度表現強勁。我的意思是，儘管收入大幅增長，但我們的積壓訂單仍接近創紀錄水平。我的意思是，對於我們的大多數產品線來說，就創紀錄的水平而言，它要么是#1，#2，要么是#3。因此，儘管季度收入不錯，但積壓訂單並沒有減少，銷售情況也非常好。

Okay. So maybe an additional factor is that the rate of implementations have improved better than expected, and that's also a factor in the raise guidance?

好的。那麼，也許另一個因素是實施率的改善比預期，這也是加薪指導中的一個因素？

Yes. In the revenue you're doing well. Subscription revenue doing well, recurring revenue doing well. The fact that implementation efficiencies are increasingly, Nehal, because we had a lot of new products to establish on the field. We are getting more fluent with implementing those new products. We are also getting more adept at dealing with multiproduct complex implementation. So yes, all that is contributing to recurring revenue. But us increasing the guidance of revenue also has to do with our sales doing very well and winning new opportunities at a faster pace.

是的。在收入方面，你做得很好。訂閱收入表現良好，經常性收入表現良好。事實上，實施效率越來越高，Nehal，因為我們有許多新產品需要在現場建立。我們越來越流暢地實施這些新產品。我們也越來越擅長處理多產品的複雜實作。所以是的，所有這些都有助於經常性收入。但我們提高收入指引也與我們的銷售表現良好並以更快的速度贏得新機會有關。

Okay. And can you give a little bit more color as far as how did ACV bookings actually trend in the September quarter more than just simply saying one of the best several quarters and for fiscal 1 half best ever because when you're growing 20-plus percent year-over-year, it's kind of like an expectation that every quarter is going to be kind of the best ever.

好的。您能否提供更多關於9 月份季度的ACV 預訂實際趨勢的信息，而不僅僅是簡單地說是最好的幾個季度之一以及1 財年上半年最好的季度之一，因為當您的成長率超過20% 時與去年同期相比，這有點像預期每季都將是有史以來最好的。

As first -- I mean revenue, I understand what you're saying, Nehal. Every quarter is generally expected to be our best ever when we are a growing company and doing well. As far as sales is concerned, when you finish a quarter, every quarter, you start from 0 and you have to build it back again. Our sales continuing to do well, has a lot to do with our product strength and has a lot to do with the fact we have a lot more products to sell. And in many geographical areas, our market share is low. So that's one of the reasons why sales should continue to do well.

首先，我指的是收入，我理解你的意思，Nehal。當我們是一家成長中的公司並且表現良好時，通常預計每個季度都會是我們有史以來最好的季度。就銷售而言，當你完成一個季度時，每個季度你都從0開始，你必須重新建構它。我們的銷售持續表現良好，這與我們的產品實力有很大關係，也與我們有更多產品可供銷售這一事實有很大關係。在許多地理區域，我們的市佔率很低。這就是銷售繼續表現良好的原因之一。

And some of the color we have given, if this quarter was one of our best, but the first half of the year was our best first half of the year of any year as far as sales is concerned and comfortably higher than last year.

我們給出的一些顏色，如果這個季度是我們最好的季度之一，但就銷售額而言，今年上半年是我們今年上半年最好的，並且明顯高於去年。

Now when you take last full year fiscal 2023, it was a record sales year for us. So this year, first half, we made a much better start to the year than even last year.

現在，當你回顧 2023 財年全年時，這對我們來說是創紀錄的銷售年。所以今年上半年，我們的開局比去年好很多。

Okay. All right. Finally, you made a comment last quarter sharks and dolphins are in the pipeline, how is that -- how is the shark and dolphin pipeline looking this quarter, September quarter relative to the June quarter? Has it continue to traject up at a rapid rate. Do you have any graduation of those within the September quarter? Any detail on the sharks and dolphins narrative would be great.

好的。好的。最後，您在上個季度發表了評論，鯊魚和海豚正在籌備中，情況如何——本季度（9 月季度）相對於 6 月季度，鯊魚和海豚的籌備情況如何？它是否繼續快速上升。你們有在九月季度內畢業的嗎？任何關於鯊魚和海豚敘述的細節都會很棒。

Yes. I mean, George will also like this analogy, Nehal. So sharks and dolphins continue to play a big part of our sales. So we do have the entire gamut of sales opportunities in terms of size of customers. But during the first half of the year, April through September, there were several sizable sales wins that we had, which were the resort or the cruise ship, they were sizable companies, and they also bought multiple products from us with good deal sizes. And that trend, I don't think there is going to be any slowdown of that trend.

是的。我的意思是，喬治也會喜歡這個比喻，內哈爾。因此，鯊魚和海豚繼續在我們的銷售中發揮重要作用。因此，就客戶規模而言，我們確實擁有全部銷售機會。但在今年上半年，從四月到九月，我們取得了幾項相當大的銷售勝利，其中包括度假村或遊輪，他們都是規模較大的公司，他們還以良好的交易規模從我們這裡購買了多種產品。我認為這種趨勢不會有任何放緩。

When we look at our sales pipeline, there are quite a few doubles and triples that are possible in that sales pipeline. So yes, we do have sizable opportunities, whether you refer to them as doubles and triples or sharks and dolphins. They are there. They were there in the April through September first half, and they continue to be in our pipeline going forward.

當我們查看我們的銷售管道時，該銷售管道中可能存在相當多的雙倍和三倍。所以，是的，我們確實有相當大的機會，無論你稱它們為雙打和三打還是鯊魚和海豚。他們就在那裡。它們在 4 月到 9 月的上半月期間就已經存在，它們將繼續在我們的管道中。

And they've increased in and out in terms of numbers?

他們的數量也有增加和減少嗎？

More and more, yes, increasing significant opportunities, mostly because the opportunity sizes are bigger, Nehal, mostly because they tend to buy multiple products from us. The deal sizes are higher.

是的，越來越多的重要機會增加，主要是因為機會規模更大，Nehal，主要是因為他們傾向於從我們這裡購買多種產品。交易規模更大。

Congrats.

恭喜。

Thank you. And with that, I would now like to turn the conference back to Ramesh for closing marks.

謝謝。說到這裡，我現在想把會議轉回拉梅什做總結。

Thank you, Victor. Thank you all for your interest and participation. Enjoy the holiday season. We look forward to talking to you again in about 3 months when we will be reporting fiscal 2024 3rd quarter results. Thank you.

謝謝你，維克多。感謝大家的關注與參與。享受假期。我們期待在大約 3 個月後再次與您交談，屆時我們將報告 2024 財年第三季業績。謝謝。

And this concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。大家，祝你有美好的一天。