Appian Corp (APPN) 2024 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Appian second quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Appian 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Jack Andrews please go ahead?

我現在想把今天的會議交給你的發言人，傑克安德魯斯，請繼續吧？

Thank you, operator. Good morning and thank you for joining us. Today we will review Appian's second quarter 2024 financial results. With me are Matt Calkins, Chairman and Chief Executive Officer; and Mark Matheos, Chief Financial Officer. After prepared remarks, we will open the call for questions.

謝謝你，接線生。早安，感謝您加入我們。今天我們將回顧Appian 2024年第二季的財務表現。和我在一起的有董事長兼執行長 Matt Calkins；和財務長馬克·馬修斯。準備好發言後，我們將開始提問。

During this call, we may make statements related to our business that are forward-looking under federal securities laws and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

在本次電話會議中，我們可能會根據聯邦證券法做出與我們業務相關的前瞻性聲明，並根據 1995 年《私人證券訴訟改革法案》的安全港條款作出。

These include comments related to our financial results, trends and guidance for the third quarter and full year 2024 the benefits of our platform industry and market trends, our go-to-market and growth strategy, our market opportunity and ability to expand our leadership position, our ability to maintain and upsell existing customers and our ability to acquire new customers.

其中包括與我們的財務表現相關的評論、2024 年第三季和全年的趨勢和指導、我們平台產業的優勢和市場趨勢、我們的上市和成長策略、我們的市場機會以及擴大我們領導地位的能力，我們維護和追加銷售現有客戶的能力以及我們獲取新客戶的能力。

The words anticipate, continue, estimate, expect, intend, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. These statements reflect our views only as of today, they do not represent our views as of any subsequent date. They are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

預期、繼續、估計、期望、打算、將以及類似的表達方式旨在識別前瞻性陳述或未來預期的類似指示。這些聲明僅反映我們今天的觀點，並不代表我們以後任何日期的觀點。它們面臨各種風險和不確定性，可能導致實際結果與預期有重大差異。

For a discussion of the material risks and other important factors that could affect our actual results, refer to our 2023 10-K, our Q2 2024 10-Q filing and other periodic filings with the SEC. These documents are available on the Investors section of our website.

有關可能影響我們實際結果的重大風險和其他重要因素的討論，請參閱我們向 SEC 提交的 2023 年 10-K、2024 年第二季 10-Q 備案文件和其他定期文件。這些文件可在我們網站的投資者部分找到。

Additionally, non-GAAP financial measures will be discussed on this conference call refer to the tables in our earnings release for reconciliation of these measures to their most directly comparable GAAP financial measures.

此外，本次電話會議將討論非 GAAP 財務指標，請參閱我們收益發布中的表格，以便將這些指標與其最直接可比較的 GAAP 財務指標進行核對。

And with that, I'd like to turn the call over to our CEO, Matt Calkins. Matt?

說到這裡，我想將電話轉給我們的執行長 Matt Calkins。馬特？

Thanks, Jack. For the second quarter of 2024 Appian's cloud subscription revenue grew 19% year-over-year to $88.4 million. Subscription revenue grew 20% to $113 million. Total revenue grew 15% year-over-year to $146.5 million. Our cloud subscriptions revenue retention rate was 118%. As of June 30, adjusted EBITDA was a loss of $10.5 million.

謝謝，傑克。2024 年第二季 Appian 的雲端訂閱營收年增 19% 至 8,840 萬美元。訂閱營收成長 20%，達到 1.13 億美元。總營收年增 15%，達到 1.465 億美元。我們的雲端訂閱收入保留率為 118%。截至 6 月 30 日，調整後 EBITDA 虧損 1,050 萬美元。

Appian is a growth company, revenue growth continues to be our top priority. We are not indifferent to efficiency. We've applied more scrutiny to our investments and steadily improved our profitability. This quarter, we took action to reduce non-strategic go-to-market expenditures with these moves, we now expect to breakeven on adjusted EBITDA for the full year 2024. Mark will provide more details in his prepared remarks.

Appian 是一家成長型公司，營收成長仍然是我們的首要任務。我們對效率並非漠不關心。我們對投資進行了更嚴格的審查，獲利能力穩步提高。本季度，我們採取行動減少非策略性上市支出，目前我們預計 2024 年全年調整後 EBITDA 將達到損益兩平。馬克將在他準備好的演講中提供更多細節。

Recently, I've immersed myself in our sales and marketing functions. I've spoken extensively with hundreds of customers, prospects, partners and Appian staff. Together, we've discovered ways we can better allocate resources and align energy behind our business strategy. We're leaning into areas where the return on investment is the strongest, specifically large transactions and our best industry verticals.

最近，我全心投入我們的銷售和行銷職能。我與數百名客戶、潛在客戶、合作夥伴和 Appian 員工進行了廣泛的對話。我們共同發現了更好地分配資源並調整業務策略背後的能量的方法。我們傾向於投資回報率最高的領域，特別是大型交易和我們最好的垂直行業。

Appian’s particular advantages at the high end of our market where we've experienced our most success Appian appeals to the C-suite, the large enterprise and the mission critical use case. Here we have some of our highest win rates, highest expansion rates and highest retention rates. And for good reason, our platform delivers the greatest impact to the most discerning customers. Our gross retention rate of 99% best-in-class and enterprise software. Many of our largest customers save millions of dollars and thousands of labor hours every year with Appian.

Appian 在高端市場具有獨特的優勢，我們在高端市場取得了最大的成功，Appian 對 C 級主管、大型企業和關鍵任務用例具有吸引力。在這裡，我們擁有一些最高的獲勝率、最高的擴張率和最高的保留率。我們的平台可以為最挑剔的客戶帶來最大的影響，這是有充分理由的。我們一流的企業軟體總保留率為 99%。我們許多最大的客戶每年透過 Appian 節省數百萬美元和數千工時。

Our key verticals continue to be our growth engine over 70% of Appian's revenue comes from financial services, life sciences and public sector, roughly half of the world's largest companies and US agencies. These verticals are Appian customers. We have decades of specialized industry expertise and a proven track record of automating the most complex processes for these organizations.

我們的關鍵垂直產業仍然是我們的成長引擎 Appian 超過 70% 的收入來自金融服務、生命科學和公共部門，其中約一半來自全球最大的公司和美國機構。這些垂直產業是 Appian 客戶。我們擁有數十年的專業行業專業知識以及為這些組織實現最複雜流程自動化的良好記錄。

Public sector is one of our most successful verticals. We have momentum with our GAM suite. Government acquisition management GAM suite. Agencies use GAM to manage their detailed processes for procuring goods and services. We are broadening our investment in the suite because adoption has been strong. GAM bookings, more than doubled in the first half of this year compared to the same period last year.

公共部門是我們最成功的垂直產業之一。我們的 GAM 套件勢頭強勁。政府採購管理 GAM 套件。各機構使用 GAM 來管理其採購商品和服務的詳細流程。由於採用率很高，我們正在擴大對該套件的投資。今年上半年 GAM 預訂量與去年同期相比增加了一倍多。

To build on this momentum, we launched a service this spring to complement GAM procure site isn't AI driven website that consolidates major public procurement datasets. Government professionals can use it to synthesize past procurements and generate new procurement documents. Dozens of federal agencies use procure site today.

為了鞏固這一勢頭，我們今年春天推出了一項服務來補充 GAM 採購網站，該網站不是人工智慧驅動的網站，它整合了主要的公共採購資料集。政府專業人員可以使用它來綜合過去的採購並產生新的採購文件。目前有數十個聯邦機構使用採購網站。

For example, one agency that manages emergency responses to natural disasters, purchased a seven figure software deal and became a new Appian customer in Q2. Given the rise in wildfires, the agency needs to respond to incidents faster. It will use our full GAM suite. To reduce the time it takes to procure firefighting resources. Before Appian the agency ran procurement operations across a combination of disparate systems and physical paper forms. Now it will manage billions of dollars of annual procurements on Appian.

例如，一家負責管理自然災害緊急應變的機構購買了一筆價值七位數的軟體交易，並在第二季度成為了 Appian 的新客戶。鑑於野火的增加，該機構需要更快地對事件做出反應。它將使用我們完整的 GAM 套件。減少採購消防資源所需的時間。在阿皮安之前，該機構透過不同的系統和紙本表格的組合來運作採購業務。現在它將在 Appian 上管理每年數十億美元的採購。

Another federal agency that supports national security and defense, national security defense became an Appian customer this quarter. It wants to replace an inflexible procurement system. It's costly to maintain. The agency has strict application hosting requirements because its data is sensitive. In Q2 it purchased a seven figure software deal for GAM, and we'll deploy it onto the Appian government cloud.

另一個支持國家安全和國防的聯邦機構國家安全防禦部門本季成為 Appian 客戶。它希望取代不靈活的採購系統。維護成本很高。該機構有嚴格的應用程式託管要求，因為其資料很敏感。在第二季度，它為 GAM 購買了價值七位數的軟體，我們將其部署到 Appian 政府雲端。

As a reminder, Appian was one of the first dozen or so companies to receive a provisional authorization and impact Level 5. Now the agency can securely deploy GAM to the cloud and maintain a low total cost of ownership for its Appian applications.

提醒一下，Appian 是首批獲得臨時授權並影響 5 級的十幾家公司之一。現在，該機構可以將 GAM 安全地部署到雲端中，並保持其 Appian 應用程式的較低總擁有成本。

Within Life Sciences, we signed a top global clinical research organization as a new customer this quarter. Our platform will manage the organization's process for selecting clinical study sites. Appian data fabric will bring together data from many systems into a single application site investigators and project managers can select locations based on the studies criteria, resource and capacity and countries regulations. The company used to mainly manage this complex process manually across systems. Now it aims to make selections 80% faster using Appian.

在生命科學領域，我們本季簽署了一家全球頂級臨床研究組織為新客戶。我們的平台將管理組織選擇臨床研究地點的流程。Appian 資料結構將把來自多個系統的資料匯集到一個應用程式網站中，研究人員和專案經理可以根據研究標準、資源和能力以及國家/地區法規來選擇位置。該公司過去主要跨系統手動管理這個複雜的流程。現在，它的目標是使用 Appian 將選擇速度提高 80%。

We continued to sign large expansion deals within Appian's financial services, vertical earlier this year, we launched new pricing structure. A new pricing structure to upsell our existing customers and monetize our latest features like Appian AI.

今年早些時候，我們繼續在 Appian 的垂直金融服務領域簽署大型擴張協議，推出了新的定價結構。一種新的定價結構，用於追加銷售我們現有的客戶並透過 Appian AI 等最新功能獲利。

Here's an example of this upsell strategy. In Q2, an international insurance company increased its annual Appian software spend by more than 50%. The insurer has been a customer for a few years and uses our platform to manage claims disputes this quarter purchased a seven figure software deal to upgrade to our new pricing and access our latest features that will add thousands more users to the process and deploy Appian AI to categorize millions of claims. We won this deal because AI is a native feature of our platform and easy to adopt.

以下是此追加銷售策略的範例。第二季度，一家國際保險公司將其年度 Appian 軟體支出增加了 50% 以上。該保險公司已經成為我們的客戶幾年了，並使用我們的平台來管理索賠糾紛，本季度購買了七位數的軟體交易，以升級到我們的新定價並訪問我們的最新功能，這將使數千名用戶加入流程並部署Appian AI對數百萬索賠進行分類。我們贏得這筆交易是因為人工智慧是我們平台的原生功能且易於採用。

Appian AI enhances worker productivity by, among other things, generating code based on a prompt summarizing large amounts of data and recommending user responses. Our AI is powerful because as the context of the customers' processes and data. It has the context, our AI is also private because we use Data Fabric and Retrieval Augmented Generation or RAG to avoid training and AI algorithm. We don't train them. This quarter usage of Appian AI doubled compared to last quarter.

Appian AI 可根據提示產生程式碼，匯總大量資料並推薦使用者回應，從而提高員工的工作效率。我們的人工智慧非常強大，因為它是客戶流程和數據的背景。它有上下文，我們的人工智慧也是私有的，因為我們使用 Data Fabric 和檢索增強生成或 RAG 來避免訓練和人工智慧演算法。我們不訓練他們。本季 Appian AI 的使用量比上季增加了一倍。

Here's an example. In Q2, a medical transportation and emergency response company, automated claim dispute processes with Appian under new government regulations. The company has 20 days to appeal disputes now case workers respond more efficiently using our automation capabilities. First Appian AI classifies and ingests payer disputes then Appian RPA bots retrieve data for the user from various systems about the medical incident with Appian, our customer expects to handle disputes faster, increasing revenue by tens of millions of dollars annually.

這是一個例子。第二季度，一家醫療運輸和緊急應變公司根據新的政府法規，與 Appian 實現了自動索賠糾紛流程。該公司有 20 天的時間對爭議提出上訴，現在案件工作人員可以利用我們的自動化功能更有效地做出反應。首先 Appian AI 對付款人糾紛進行分類和處理，然後 Appian RPA 機器人從各個系統中為用戶檢索有關 Appian 醫療事件的數據，我們的客戶希望更快地處理糾紛，每年增加數千萬美元的收入。

Appian is a leading process automation platform. The completeness of our platform is appreciated by users and recognized by analysts. Analysts call us leaders in enterprise low-code application development, business workflow automation, digital process automation, and process orchestration.

Appian 是領先的流程自動化平台。我們平台的完整性得到了用戶的讚賞和分析師的認可。分析師稱我們為企業低程式碼應用程式開發、業務工作流程自動化、數位流程自動化和流程編排的領導者。

In Q2, Appian was named a leader in the Gartner Magic Quadrant for Process Mining platforms for the first time. We were included because of Appian Process HQ, which we just released in April. Process HQ is a real-time, actionable Process Mining, tracking the health of processes and using AI to recommend improvements.

第二季度，Appian 首次被評為 Gartner 流程​​挖掘平台魔力像限的領導者。我們之所以被納入，是因為我們四月剛剛發布了 Appian Process HQ。Process HQ 是一種即時、可操作的流程挖掘，追蹤流程的健康狀況並使用人工智慧提出改進建議。

A tough medical insurance provider manages claim disputes and payouts on Appian this quarter and analyze the process with Process HQ because they wanted to be more efficient. The company discovered members were submitting tens of thousands of duplicate claims. Now can work to optimize the process to eliminate unnecessary submissions and save millions of hours annually.

一家強硬的醫療保險提供者本季在 Appian 上管理索賠糾紛和付款，並與 Process HQ 一起分析流程，因為他們希望提高效率。該公司發現會員提交了數萬份重複索賠。現在可以努力優化流程，消除不必要的提交，每年節省數百萬小時。

Earlier this week, the Court of Appeals of Virginia, the state’s intermediate appellate court, rendered an opinion on our trade secrets case against Pegasystems. We look forward to appealing this week’s decision and are hopeful that the state’s highest court, the Virginia Supreme Court, will reinstate in full the jury’s verdict, including its award of over $2 billion against Pegasystems for will fully and maliciously misappropriating Appian’s trade secrets.

本週早些時候，維吉尼亞州上訴法院（該州​​中級上訴法院）就我們針對 Pegasystems 的商業機密案發表了意見。我們期待對本週的裁決提出上訴，並希望該州最高法院弗吉尼亞最高法院能夠全面恢復陪審團的裁決，包括因意願而判給 Pegasystems 超過 20 億美元的裁決完全惡意盜用阿皮安的商業秘密。

Nothing in this week’s opinion changes the fact that Pegasystems was found to have committed computer fraud in violation of the Virginia Computer Crimes Act. That unanimous finding by the jury was not disturbed by this week’s decision, and Pegasystems did not even attempt to contest its violation of the Virginia Computer Crimes Act on appeal.

本週的意見並沒有改變這樣一個事實：Pegasystems 被發現犯有違反弗吉尼亞計算機犯罪法的計算機欺詐行為。本週的裁決並沒有影響陪審團的一致裁決，Pegasystems 甚至沒有在上訴中對其違反《維吉尼亞電腦犯罪法》的行為提出質疑。

For Appian’s full perspective on this sordid affair, I refer you to a special page on our website, appian.com/pega. I’m optimistic about Appian’s future, we deliver our customers a great product and a great experience. Appian’s commitment to efficient growth will allow us to continue innovating while delivering value to our stakeholders.

為了了解阿皮安對這起骯髒事件的全面看法，我建議您訪問我們網站上的一個特殊頁面：appian.com/pega。我對 Appian 的未來持樂觀態度，我們為客戶提供出色的產品和出色的體驗。Appian 對高效成長的承諾將使我們能夠繼續創新，同時為利害關係人創造價值。

Now, I’ll hand the call over to Mark for a deeper discussion of the financials. Mark?

現在，我將把電話轉給馬克，以便對財務狀況進行更深入的討論。標記？

Thanks, Matt, and thank you to everyone for joining us today. I'll review the financial highlights for the quarter, and then we'll provide guidance for the third quarter and full year 2024, our key metrics of cloud revenue, total revenue and adjusted EBITDA all came in above the high end of our guidance ranges.

謝謝馬特，也謝謝大家今天加入我們。我將回顧本季的財務亮點，然後我們將提供第三季和 2024 年全年的指導，我們的雲端收入、總收入和調整後 EBITDA 的關鍵指標均高於我們指導範圍的高端。

Cloud subscription revenue was $88.4 million, an increase of 19% year-over-year. Our cloud subscription gross renewal rate remained stable at 99%, up slightly from 98% a year ago and consistent with the prior quarter. Our cloud subscription revenue retention rate was 118% as of June 30, 2024, compared to 115% a year ago and 120% in the prior quarter.

雲端訂閱收入為 8,840 萬美元，較去年同期成長 19%。我們的雲端訂閱總續訂率穩定在 99%，略高於去年同期的 98%，與上一季持平。截至 2024 年 6 月 30 日，我們的雲端訂閱營收保留率為 118%，而一年前為 115%，上一季為 120%。

We continue to target a cloud subscription revenue retention rate of 110% to 120% on a quarterly basis, approximately 82% of our total net new software bookings in the quarter was for the cloud compared to 84% in the prior year second quarter. Total subscriptions revenue was $113 million, an increase of 20% year-over-year. Professional services revenue was $33.5 million down 1% year-over-year.

我們繼續以季度雲訂閱營收保留率為 110% 至 120% 為目標，本季新軟體淨預訂總量中約 82% 來自雲，而去年第二季這一比例為 84%。總訂閱收入為 1.13 億美元，較去年同期成長 20%。專業服務收入為 3,350 萬美元，年減 1%。

As we stated previously, professional services revenue can fluctuate quarter-to-quarter due to the timing of large projects. We leverage our professional services to enable partners and drive customer success. Over the long term, we expect professional services revenue to continue to decline as a percentage of total revenue. Total revenue was $146.5 million, an increase of 15% year-over-year.

正如我們之前所說，由於大型專案的時間安排，專業服務收入可能會出現季度波動。我們利用我們的專業服務來幫助合作夥伴並推動客戶成功。從長遠來看，我們預計專業服務收入佔總收入的比例將持續下降。總收入為 1.465 億美元，年增 15%。

Subscription revenue represented 77% of total revenue as compared to 73% in the year-ago period. And 79% in the prior quarter. We continue to see global demand for our platform with our international operations contributing 38% of total revenue, consistent with the year-ago period. Foreign exchange movements provided a modest revenue headwind of slightly less than 1% this quarter.

訂閱收入佔總收入的 77%，而去年同期為 73%。上一季為 79%。我們繼續看到全球對我們平台的需求，我們的國際業務貢獻了總收入的 38%，與去年同期一致。外匯波動對本季的收入造成了略低於 1% 的輕微阻力。

Turning to profitability metrics. Non-GAAP gross margin was 75% compared to 73% in the year-ago period and 76% in the prior quarter. Subscriptions non-GAAP gross profit margin was 89%, consistent with the year-ago period and 90% in the prior quarter. Professional services non-GAAP gross margin was 30% compared to 28% in the year ago period and up from 25% in the prior quarter.

轉向盈利指標。非 GAAP 毛利率為 75%，去年同期為 73%，上一季為 76%。訂閱業務非 GAAP 毛利率為 89%，與去年同期一致，上一季為 90%。專業服務非 GAAP 毛利率為 30%，去年同期為 28%，上一季為 25%。

Our goal is to enable our customers to achieve positive business outcomes and increase adoption of our technology platform. To help accomplish this goal, we continue to invest in non-billable areas of our services organization. As stated previously, we expect professional services non-GAAP gross margin to decline the low 20% range in 2024 and beyond. Total non-GAAP expenses were $123.2 million, up 3% from $119.7 million in the year ago period.

我們的目標是使我們的客戶能夠取得積極的業務成果並提高我們技術平台的採用率。為了幫助實現這一目標，我們繼續投資於我們服務組織的非計費領域。如前所述，我們預計 2024 年及以後專業服務非 GAAP 毛利率將下降至 20% 的低水準。非 GAAP 支出總額為 1.232 億美元，比去年同期的 1.197 億美元增加 3%。

Adjusted EBITDA loss was $10.5 million for the quarter, well ahead of our second quarter guidance of a loss between $17 million and $13 million and significantly improved from an adjusted EBITDA loss of $24.7 million in the year ago period.

本季調整後 EBITDA 損失為 1,050 萬美元，遠高於我們第二季指導的 1,700 萬至 1,300 萬美元損失，較去年同期調整後 EBITDA 損失 2,470 萬美元顯著改善。

In the second quarter, we had approximately $200,000 of foreign exchange losses compared to $1.2 million in foreign exchange gains in the same period a year ago. As a reminder, we do not forecast movements in FX rates. Therefore, FX movements are not considered in our guidance. Our non-GAAP net loss was $19.1 million or $0.26 per share compared to a non-GAAP net loss of $28.5 million or $0.39 per diluted share for the second quarter of 2023.

第二季度，我們的外匯損失約為 20 萬美元，而去年同期的外匯收益為 120 萬美元。提醒一下，我們不預測外匯匯率的變動。因此，我們的指導中沒有考慮外匯波動。我們的非 GAAP 淨虧損為 1,910 萬美元，即每股 0.26 美元，而 2023 年第二季的非 GAAP 淨虧損為 2,850 萬美元，即每股攤薄虧損 0.39 美元。

Turning to our balance sheet. As of June 30, 2024, cash, cash equivalents and investments were $149.1 million. This provides us with significant liquidity to operate and invest in our business. For the second quarter, cash used by operating activities was $17.6 million versus cash used by operating activities of $11.9 million for the same period last year. The increase in cash usage was driven primarily by the timing of facilities and vendor payments.

轉向我們的資產負債表。截至 2024 年 6 月 30 日，現金、現金等價物及投資為 1.491 億美元。這為我們提供了大量的流動資金來運作和投資我們的業務。第二季經營活動使用的現金為 1,760 萬美元，而去年同期經營活動使用的現金為 1,190 萬美元。現金使用量的增加主要是由於設施和供應商付款的時間表所致。

Finally, total deferred revenue was $222.9 million as of the second quarter of 2024, an increase of 14% from the year ago period. As a reminder, while the majority of our customers are invoiced on an annual upfront basis, we also have some large customers that are billed quarterly or monthly. Consequently, we continue to believe cloud subscription revenue is a better indicator of our business momentum than deferred revenue, billings or remaining performance obligations.

最後，截至 2024 年第二季度，遞延收入總額為 2.229 億美元，比去年同期成長 14%。提醒一下，雖然我們的大多數客戶按年度預付費用，但我們也有一些大客戶按季度或按月計費。因此，我們仍然認為，與遞延收入、帳單或剩餘履約義務相比，雲端訂閱收入更能反映我們的業務動能。

These latter metrics can fluctuate based on the timing of invoicing seasonality of on-prem license revenue and the duration of customer contracts. The true scale of Appian's business is represented by subscriptions revenue, which includes support and all software subscription revenue, regardless of whether the customer deploys to the Appian Cloud, they're private cloud or on-prem.

後面這些指標可能會根據本地許可證收入的發票季節性和客戶合約期限而波動。Appian 業務的真實規模由訂閱收入代表，其中包括支援和所有軟體訂閱收入，無論客戶是否部署到 Appian Cloud、私有雲還是本地雲。

As Matt mentioned, we have made adjustments to our expenses to align with our strategy. These include a reduction in personnel and some consolidation of facilities. Looking ahead to the second half of 2024, we believe these actions will accelerate our path to profitability. We've previously forecasted adjusted EBITDA breakeven in 2025. Now we expect to achieve this milestone for the full year 2024.

正如馬特所提到的，我們對費用進行了調整，以符合我們的策略。其中包括人員的減少和一些設施的整合。展望 2024 年下半年，我們相信這些行動將加速我們的獲利之路。我們先前預測 2025 年調整後 EBITDA 損益平衡。現在，我們期望在 2024 年全年實現這一里程碑。

Let's turn to the specifics of our guidance. For the third quarter of 2024, cloud subscription revenue is expected to be between $89 million and $91 million, representing year-over-year growth between 15% and 18%. Total revenue is expected to be between $149 million and $153 million, representing year-over-year growth between 9% and 12%.

讓我們來看看我們的指導的具體內容。2024年第三季度，雲端訂閱收入預計將在8,900萬美元至9,100萬美元之間，年增15%至18%。總收入預計在 1.49 億美元至 1.53 億美元之間，年增 9% 至 12%。

Adjusted EBITDA for the third quarter of 2024 is expected to range between breakeven and positive $3 million. Non-GAAP net loss per share is expected to range between $0.10 to $0.06. This assumes $72.4 million diluted weighted average common shares outstanding. For the full year 2024, we're slightly reducing our cloud revenue and total revenue guidance. We believe it is prudent to factor in some potential uncertainty into our near term outlook, given the personnel changes we discussed earlier.

2024 年第三季調整後 EBITDA 預計將在損益兩平至正 300 萬美元之間。非公認會計準則每股淨虧損預計在 0.10 美元至 0.06 美元之間。假設稀釋後加權平均已發行普通股價值為 7,240 萬美元。對於 2024 年全年，我們將略微降低雲端收入和總收入指引。鑑於我們之前討論的人事變動，我們認為，在我們的近期前景中考慮一些潛在的不確定性是謹慎的做法。

At the same time, we're significantly improving our full year adjusted EBITDA guidance. Cloud subscription revenue is now expected to be between $350 million to $360 million, representing year-over-year growth of 18%. Total revenue is now expected to be between $610 million to $615 million, representing year-over-year growth between 12% and 13%. We now expect adjusted EBITDA to range from negative $3 million to positive $3 million. This is an improvement of $20 million from the midpoint of our previous guidance range. We are also updating our full year 2024 non-GAAP net loss per share to range between $0.61 to $0.52. This assumes $72.6 million diluted weighted average common shares outstanding.

同時，我們正在顯著改善全年調整後 EBITDA 指導。目前，雲端訂閱收入預計在 3.5 億至 3.6 億美元之間，年增 18%。目前預計總收入將在 6.1 億美元至 6.15 億美元之間，年增 12% 至 13%。我們現在預計調整後的 EBITDA 範圍為負 300 萬美元到正 300 萬美元。這比我們之前指導範圍的中位數提高了 2000 萬美元。我們也將 2024 年全年非 GAAP 每股淨虧損更新為 0.61 美元至 0.52 美元。假設稀釋後加權平均已發行普通股價值為 7,260 萬美元。

Our guidance assumes the following. First, as previously disclosed, the variability in our services revenue can be swung by one or two large transactions. We expect professional services revenue to be flat to down sequentially in Q3. Second, we expect on-prem license revenue in Q3 will increase sequentially and track to seasonality that is consistent with prior periods.

我們的指導假設如下。首先，如同先前所揭露的，我們的服務收入的變化可能會受到一兩筆大型交易的影響。我們預計第三季專業服務收入將持平或季減。其次，我們預計第三季的本地授權收入將連續成長，並遵循與前期一致的季節性。

Third, total other income and interest expenses are expected to be between $4 million and $5 million in Q3 and between $17 million and $18 million for the full year 2024. Fourth, capital expenditures are expected to be between $1 million and $2 million in Q3 and between $5 million and $7 million for the full year 2024. And fifth, our guidance assumes FX rates as of July 29, 2024.

第三，預計第三季其他收入和利息支出總額將在 400 萬美元至 500 萬美元之間，2024 年全年將在 1,700 萬美元至 1,800 萬美元之間。第四，預計第三季的資本支出將在 100 萬美元至 200 萬美元之間，2024 年全年的資本支出將在 500 萬美元至 700 萬美元之間。第五，我們的指導假設匯率截至 2024 年 7 月 29 日。

In closing, we're pleased about our commitment to accelerating adjusted EBITDA breakeven on a non-GAAP basis from 2025 to this year. We'll continue to focus on growth while driving greater efficiencies in the business. We believe that the unique capabilities of our platform position us well to capture the large market opportunity ahead of us.

最後，我們對從 2025 年到今年加速實現非 GAAP 調整後 EBITDA 損益平衡的承諾感到高興。我們將繼續專注於成長，同時提高業務效率。我們相信，我們平台的獨特功能使我們能夠很好地抓住眼前的巨大市場機會。

And with that, we will open up the line for questions. Operator?

至此，我們將開放提問專線。操作員？

(Operator Instructions)

（操作員說明）

Sanjit Singh, Morgan Stanley.

桑吉特辛格，摩根士丹利。

Thank you for taking the questions. Matt, I wanted to start off with the decision to accelerate the path to profitability. I think a few quarters ago, you sounded, I would characterize it as still in pretty firm investment mode, so I’d just like to get your thoughts behind the decision to accelerate the path to profitability.

感謝您提出問題。馬特，我想從加速獲利之路的決定開始。我認為幾個季度前，您聽起來，我將其描述為仍處於相當堅定的投資模式，所以我只想了解您對加快盈利之路的決定的看法。

And then, Mark, in terms of the outlook, the outlook does come in the second half, as you said, with the cloud subscription revenue guidance. Is that just driven by, like, sort of derisking any potential sales execution issues or did you see a weaker pipeline? Are you seeing a weaker pipeline or weaker close rates in terms of just the demand environment? Thanks.

然後，馬克，就前景而言，正如您所說，隨著雲端訂閱收入的指引，前景確實會在下半年出現。這是否只是出於消除任何潛在銷售執行問題的風險，或者您是否看到管道較弱？僅就需求環境而言，您是否看到管道較弱或成交率較弱？謝謝。

Hey. With regards to that second question, Sanjit, I'd like to jump in even though you directed that to Mark, I insisted on this adjustment. I feel strongly about it. We made a move this quarter of a cost reductive move that could have temporary disruptive effects I say could have not we'll have, but could and I wanted to get out ahead of that. I felt it would be prudent if we were just to adjust for that possibility.

嘿。關於第二個問題，桑吉特，我想插話，儘管你把這個問題交給了馬克，但我堅持要進行這種調整。我對此有強烈的感受。我們本季採取了一項削減成本的舉措，這可能會產生暫時的破壞性影響，我說可能不會，但可以，而且我想提前退出。我覺得如果我們只是針對這種可能性進行調整，那將是謹慎的做法。

As for the overall decision, we saw an opportunity, basically. In applying scrutiny to the cost structure of the organization, we saw an opportunity. We didn’t feel like we had to make this move, but we saw that we could make this move. And in light of the possibility and in light of the fact that we felt that we could grow through it and that any effects, if any, would be short-term, we decided to make that move. But we, as I mentioned in the remarks, we are focused on growth. This is not a pivot away from growth.

至於整體決定，我們基本上看到了一個機會。在對組織的成本結構進行審查時，我們看到了機會。我們並不覺得我們必須採取這項舉措，但我們看到我們可以採取這項舉措。考慮到這種可能性，也考慮到我們可以透過它實現成長，而且任何影響（如果有的話）都是短期的，我們決定採取這項措施。但正如我在發言中提到的，我們專注於成長。這並不是放棄成長。

Understood. That’s super helpful context. And one follow-up, if I may Matt. As it relates to the decision by the court this week. If we could tie the sort of insurance policy that you had written that sort of underwrote the verdict, remind me if I think it was like $60 million to guarantee at least $500 million of the original $2 billion. How does that tie in? how does those two? How does the decision this week impact the insurance policy that you guys signed up for last year?

明白了。這是非常有用的背景。還有一個後續行動，請允許我馬特。因為這與法院本週的判決有關。如果我們可以將您所寫的保險單與您為判決提供承保的保險單聯繫起來，請提醒我，如果我認為擔保最初 20 億美元中的至少 5 億美元需要 6,000 萬美元。這是如何連結起來的？那兩個怎麼樣？本週的決定對你們去年簽署的保險有何影響？

Yeah. With regards to that insurance, policy. I want to be -- it's very important to us that we get the details and convey them to you exactly correctly right? And so instead of answering the question verbally, I just wanted to direct you to the document because it's so important to get to precisely correct.

是的。關於保險、保單。我想——對我們來說非常重要的是，我們獲取詳細資訊並將其準確無誤地傳達給您，對吧？因此，我不想口頭回答​​這個問題，而是想引導您查看該文檔，因為精確糾正非常重要。

Yeah. It was filed as an 8-K in September of 2023. So you can easily find, go to the SEC website and go to September of 2023, our 8-K. There’s five scenarios and that’s the policy report.

是的。它於 2023 年 9 月作為 8-K 提交。所以你可以很容易找到，去SEC網站，去2023年9月，我們的8-K。有五種情景，這就是政策報告。

All right. Thank you very much.

好的。非常感謝。

Raimo Lenschow, Barclays.

雷莫‧倫肖 (Raimo Lenshow)，巴克萊銀行。

Perfect. Thank you. Matt, going back to the guidance again. So I get the prudence and well done on that on the guidance because there likely will be kind of implications. But is this just purely -- just to kind of clarify it one more time, is this purely on the action that you saw or is there also other things in the economy that you kind of want to make sure that the second half is covered? And then I’m asking because like there’s quite a few other companies like Salesforce, et cetera, that kind of talked about the slightly weaker economy? Just a clarifying question here and then I have one follow-up.

完美的。謝謝。馬特，再次回到指導。因此，我在指導方針上表現得很謹慎，而且做得很好，因為可能會產生某種影響。但這純粹是為了再次澄清一下，這純粹是基於你所看到的行動，還是經濟中還有其他事情你想確保下半年得到涵蓋？然後我問這個問題是因為像 Salesforce 等其他很多公司一樣，都在談論經濟稍微疲軟的情況？這裡只是澄清一個問題，然後我有一個後續行動。

Thanks, Raimo. I am and we are not reacting to macro effects. But with this move it is not about macro.

謝謝，雷莫。我是，我們也沒有對宏觀影響做出反應。但此舉與宏觀無關。

Perfect. Okay. Thank you. And then you discussed the move as an opportunity and can you talk a little bit about the puts and takes here. Like, historically you’ve been more a growth-focused management team and you probably got kind of pushback from other sides that maybe we should think about more profitability. Like, being a profitable company quicker, what does it mean for you as a management team and as a company? Thank you.

完美的。好的。謝謝。然後您討論了此舉是一個機會，您能談談這裡的看跌期權和持倉嗎？就像，從歷史上看，你們是一個更注重成長的管理團隊，你們可能會受到其他方面的反對，也許我們應該考慮提高獲利能力。例如，更快成為一家盈利的公司，這對您作為管理團隊和公司意味著什麼？謝謝。

Yeah. Let me say that the primary thing we’re doing here is transferring energy from places that it is not as productive to places where it’s more productive. And to do that under a commitment to profitability means to remove some investments in order that we can grow others.

是的。我想說的是，我們在這裡所做的首要事情是將能源從生產力較低的地方轉移到生產力較高的地方。在對獲利能力的承諾下做到這一點意味著取消一些投資，以便我們能夠發展其他投資。

So I believe that profitability is just good for management generally. Operating under a stricture is just a positive thing. It’s how Appian’s run most of its lifetime. It’s how I prefer to run. So that’s just a bonus that we can stretch for and we saw the opportunity to stretch for it here. But this is also a moment of reallocation, of reassessment of where energy belongs in this enterprise, and I think that that’s the most effective.

所以我相信獲利能力總體上對管理階層來說是有利的。在限制下工作是一件正面的事情。這就是阿皮安一生中大部分時間的運作方式。這就是我更喜歡的跑步方式。所以這只是我們可以爭取的額外獎勵，我們在這裡看到了爭取它的機會。但這也是一個重新分配的時刻，重新評估能源在這個企業中的歸屬，我認為這是最有效的。

I talk about some things here that we’re increasing on, right? I talk about solutions and public sector and large deals and there’s others as well. There’s places where energy is flowing into, and that’s, of course, enabled by the fact that we’re willing to flow energy both in and out.

我在這裡談論一些我們正在增加的事情，對吧？我談論解決方案、公共部門和大型交易，還有其他問題。能量會流入某些地方，當然，這是因為我們願意讓能量流入和流出。

Thank you. Congrats.

謝謝。恭喜。

Steve Enders, Citi.

史蒂夫恩德斯，花旗銀行。

Okay, great. Thanks for taking the questions here. I guess maybe just want to get a better understanding for why is now the right time to go through this initiative on the go-to-market side and I guess what's leading to this decision being made and this quarter versus down the road or, I guess, even doing this at all?

好的，太好了。感謝您在這裡提出問題。我想也許只是想更好地理解為什麼現在是在進入市場方面實施這一舉措的正確時機，我想是什麼導致了這一決定的做出，以及本季度與未來的決定，或者，我你猜，甚至這樣做嗎？

That’s a great question. And, of course, we plan to do it next year, as you know. As we’ve been forecasting for years now, we’ve said that the next year was going to be our year. But we’ve had an ongoing scrutiny process across the organization for a couple years, and Mark, gets big credit for that. He’s been right at the forefront and it has revealed some truths about the organization. And you bring some of these truths into focus, and I just felt like, why wouldn’t we act on it right away. We want to make some strategic moves. This is a natural complement to them. Yeah, that’s it. We just saw clearly the opportunity, that’s all.

這是一個很好的問題。當然，如您所知，我們計劃明年這樣做。正如我們多年來一直預測的那樣，我們說過明年將是我們的一年。但幾年來，我們在整個組織內進行了持續的審查流程，馬克因此獲得了巨大的讚譽。他一直站在最前沿，揭示了有關該組織的一些真相。當你讓其中一些真相成為焦點時，我只是覺得，為什麼我們不立即採取行動？我們想要採取一些策略性舉措。這是對他們的自然補充。是的，就是這樣。我們只是清楚地看到了機會，僅此而已。

Okay. All right. That’s helpful. I guess maybe switching gears a little bit, just on the success with Appian AI and seeing that double this quarter, I guess, can you maybe provide a little bit more clarity on kind of like what’s resonating in the value proposition, for Appian specifically in the market, and is there kind of any underlying functionality that’s helping contribute to the adoption here?

好的。好的。這很有幫助。我想也許要稍微改變一下態度，就 Appian AI 的成功以及本季度的翻倍而言，我想您能否提供一些更清晰的信息，例如在價值主張中引起共鳴的內容，例如Appian 特別是在市場上，是否有任何潛在功能有助於促進此處的採用？

Yeah. Well, we’re definitely rolling out new AI functionality all the time and we’re also encouraging its usage, and we’re seeding the market with a little bit of free AI usage to tempt them into buying our advanced tier. Little bit of background for you on how that works. We priced AI at the advanced tier of license pricing, which is to say that customers will have to pay more to be full AI users and we feel that’s a pretty important incentive that would give them a reason to prefer advanced licenses over standard licenses.

是的。嗯，我們確實一直在推出新的人工智慧功能，我們也鼓勵其使用，我們正在向市場播種一些免費的人工智慧使用，以吸引他們購買我們的高級產品。為您提供一些有關其工作原理的背景知識。我們將人工智慧定價為高級許可證定價，也就是說，客戶必須支付更多費用才能成為完整的人工智慧用戶，我們認為這是一個非常重要的激勵因素，使他們有理由選擇高級許可證而不是標準許可證。

But of course, we also want them to understand how powerful it is, so we’ve been offering a small amount of AI usage gratis and then if they want to use it at scale, then they have to pay. So I think that between the new features and the emphasis on the advanced tier and the start up allotment, you have in combination the rationale for why that usage jump.

當然，我們也希望他們了解它有多強大，所以我們一直免費提供少量的人工智慧使用，如果他們想大規模使用它，那麼他們就必須付費。因此，我認為，在新功能以及對高級層和啟動分配的重視之間，您可以結合使用率跳躍的基本原理。

Okay, perfect. Thanks for taking the question.

好的，完美。感謝您提出問題。

Derrick Wood, TD Cowen.

德里克·伍德，TD·考恩。

Great. Thanks for taking my questions. I’m hoping to get a little bit more color around the restructuring efforts you’re taking. Where are you looking to take costs out, how much headcount reduction is expected and what kind of restructuring charges should we be modeling?

偉大的。感謝您回答我的問題。我希望能夠為您正在採取的重組工作提供更多的色彩。您希望在哪些方面削減成本，預計裁員多少以及我們應該對什麼樣的重組費用進行建模？

Shall I start on that? We’re not going to talk about headcount. I will say that we are analyzing all of our go-to-market expenditures according to the amount of net new ACV that they drive or that we can infer that they drive. We want to be efficient in the way we spend our go-to-market dollar. And so that analysis revealed that we had a mixed bag of efficiency and that there were places that we wanted to shift energy towards. Do you want to say anything about a charge?

我要從那裡開始嗎？我們不會談論員工人數。我想說的是，我們正在根據它們驅動的或我們可以推斷它們驅動的淨新ACV數量來分析我們所有的上市支出。我們希望有效率地投入市場資金。因此，分析表明，我們的效率參差不齊，我們希望將精力轉移到某些地方。您想對收費說些什麼嗎？

Yeah. So we actually recorded this charge in our second quarter and you can see it in the 10-K that will be filed later today. But we did have in our disclosure that we reduced the workforce by approximately 150 employees and took a charge of around $5 million.

是的。因此，我們實際上在第二季度記錄了這筆費用，您可以在今天稍後提交的 10-K 中看到它。但我們確實在披露中透露，我們裁減了大約 150 名員工，並收取了約 500 萬美元的費用。

Okay. I mean, Matt, I’m hearing you talk about efforts with large enterprises. It sounds like perhaps you’re shifting some focus away from the mid-market and prioritizing up-market. I don’t know, can you give us a sense of what that mix of business has been historically. If that’s the case, how that may change kind of mix of bookings between cloud and on-premise going forward?

好的。我的意思是，馬特，我聽到你談論與大型企業的合作。聽起來您可能正在將一些注意力從中端市場轉移到優先考慮高端市場。我不知道您能否讓我們了解一下這種業務組合的歷史情況。如果是這樣，這將如何改變未來雲端和本地預訂之間的混合方式？

Yeah. All right. I think that Appian was spending too much of its energy on small transactions. I’m not against small transactions. I think there’s a place for them, but they have to be performed quickly and there has to be upside so that they lead to the kind of transaction where Appian’s unique advantages shine and differentiate us most clearly.

是的。好的。我認為阿皮安在小額交易上花費了太多的精力。我並不反對小額交易。我認為它們有一席之地，但它們必須快速執行，並且必須有優勢，這樣它們才能促成阿皮安獨特優勢閃耀的交易，並使我們最明顯地脫穎而出。

And so I want to do transactions where we have a path to differentiative functionality and an advantaged value proposition. And when those deals are smaller, then I want to execute that deal rapidly. So it’s just a change in emphasis. We’re not abandoning any markets, but we want to have a different posture. In relation to specific markets and I’d like to see more of our aggregate energy directed at more differentiated opportunities.

因此，我希望在交易中能夠提供差異化功能和優勢價值主張。當這些交易規模較小時，我想快速執行該交易。所以這只是重點的改變。我們不會放棄任何市場，但我們希望採取不同的姿態。就特定市場而言，我希望看到我們更多的整體精力投入更具差異化的機會。

Understood. Great. Thanks for taking my questions.

明白了。偉大的。感謝您回答我的問題。

Kevin Kumar, Goldman Sachs.

凱文庫馬爾，高盛。

Hi. Thanks for taking my questions. I want to ask about international growth. I know the revenue metrics can be a little noisy, but anything you can share in terms of overall international ARR and maybe how that’s growing relative to domestic and maybe what’s beyond the strength that you’re seeing there, any differences in the types of sectors where you’re gaining traction internationally that would be helpful?

你好。感謝您回答我的問題。我想問一下國際成長的情況。我知道收入指標可能有點嘈雜，但您可以分享總體國際 ARR 方面的任何內容，也許它相對於國內的增長方式，也許是什麼超出了您在那裡看到的實力，您在國際上獲得關注的行業類型有何差異，這對您有幫助？

Yeah. In this regard, not much has changed this quarter, or for that matter, this year. I see the ratios between North America and Europe and Asia about the same as they were six months ago, for example. So I don’t believe there’s anything notable there.

是的。在這方面，本季或今年沒有太大變化。例如，我看到北美、歐洲和亞洲之間的比率與六個月前大致相同。所以我不認為那裡有什麼值得注意的地方。

Got it. And then maybe, Matt, you talked about GAM and kind of just the strength in government. So I’m curious maybe some of your other vertical solutions, especially like financials and insurance. Can you talk about maybe kind of the trends that you’re seeing there and the traction, the rate of adoption and just how you think about kind of the broader opportunity for some of those solutions in other verticals? Thank you.

知道了。馬特，也許你談到了 GAM 以及政府的力量。所以我很好奇你們的其他一些垂直解決方案，尤其是金融和保險領域。您能否談談您在那裡看到的趨勢、吸引力、採用率以及您如何看待其中一些解決方案在其他垂直領域的更廣泛機會？謝謝。

I feel great about solutions in other verticals. GAM, of course, doubling year-over-year. I’ve long loved the solutions opportunity for Appian. I want to invest more in it, it’s part of what we’re doing right now is freeing up energy so that we can invest more in it. It’s not exclusively going to be public sector. It’s going to be insurance, pharmaceutical.

我對其他垂直領域的解決方案感覺很好。當然，GAM 逐年翻倍。我一直很喜歡 Appian 的解決方案機會。我想在這方面投入更多，這是我們現在正在做的事情的一部分，就是釋放能量，以便我們可以在這方面投入更多。它不僅僅屬於公共部門。它將是保險業、製藥業。

We have great places to put attention. By the way, we don’t have to write all those solutions ourselves. We can have motivated partners who write it. We market it together. We sell it together. This is a major opportunity for us. This is the future and we’re making those investments in all seriousness now.

我們有值得關注的好地方。順便說一句，我們不必自己編寫所有這些解決方案。我們可以有積極主動的合作夥伴來寫它。我們一起行銷它。我們一起賣。這對我們來說是一個重大機會。這就是未來，我們現在正在認真地進行這些投資。

Got it. That's helpful.

知道了。這很有幫助。

(Operator Instructions) Jake Roberge, William Blair.

（操作員說明）Jake Roberge、William Blair。

Hey. Thanks for taking the questions. Just from a timing perspective, how long do you think the go-to-market changes will take to focus on those customers further up market and the key industries like financial services and government? And then I know you’ve also had a few leadership changes recently for that organization. Do you anticipate hiring a new CRO, or, Matt, will you continue to lead that organization moving forward?

嘿。感謝您提出問題。僅從時間角度來看，您認為進入市場的變化需要多長時間才能專注於更高端市場的客戶以及金融服務和政府等關鍵產業？然後我知道該組織最近也發生了一些領導層變動。您預計會聘用一名新的 CRO，或者 Matt，您會繼續領導組織向前發展嗎？

Yeah. Well, I’m staying really close. Let’s put it that way. I’m staying very, very close to the sales organization, but we’re also empowering Mike Mayer, who many of you met at our Investment Day. He’s taking more control. And as a team, we’re working great, and we will, as you say, you want to know how long it’s going to take to make changes.

是的。嗯，我真的很接近。這麼說吧。我與銷售組織保持非常非常密切的聯繫，但我們也向邁克·梅耶爾（Mike Mayer）提供支持，你們中的許多人在我們的投資日認識了他。他正在採取更多控制措施。作為一個團隊，我們工作得很好，正如您所說，我們會想知道需要多長時間才能做出改變。

Well, we need an agile organization. We need an organization that makes changes quickly. And so staying close to it is a good way to be sure that we have that. And just I hesitate to say anything concrete about exactly when, because, you know, it’s a continuum. It’s a change over time. But we’re intensively attending these changes in Q3 and surely will also in Q4.

嗯，我們需要一個敏捷的組織。我們需要一個能夠快速做出改變的組織。因此，保持密切關注是確保我們擁有這一點的好方法。只是我猶豫是否要具體說明具體時間，因為，你知道，這是一個連續體。這是隨著時間的推移而發生的變化。但我們將在第三季集中關注這些變化，並且肯定也會在第四季度進行。

Okay. Helpful. And then great to hear that Appian AI usage doubled in the quarter. You talked about seeding the market with some free usage to get people to adopt that advanced tier over time. But how should we think about the path to get that doubling of usage into true revenue monetization?

好的。有幫助。很高興聽到 Appian AI 使用量在本季翻了一番。您談到了透過一些免費使用來培育市場，讓人們隨著時間的推移採用該高級層。但我們該如何思考如何將使用量翻倍轉化為真正的收入貨幣化呢？

Yeah. Well, I think, we have a much better revenue monetization or feature monetization story this year, because we created the up tier of pricing. And now when we release new functionality, we can place it in the up tier and ask customers to pay more to get it. So we’re much more direct about the way we translate feature advantage into revenue. And that’s the play also with AI. Just establish the value.

是的。嗯，我認為，今年我們的收入貨幣化或功能貨幣化故事要好得多，因為我們創造了更高的定價層。現在，當我們發布新功能時，我們可以將其放在上層，並要求客戶支付更多費用才能獲得它。因此，我們更直接地將功能優勢轉化為收入。這也是人工智慧的玩法。只需建立該值即可。

We’ve got a unique advantage, you know, in AI. We have private AI, we are the champions of preserving the sanctity of an organization’s private data, not training someone else’s AI algorithm with it, not disclosing it, not consolidating it in someone else’s database. We are champions for the customer’s existing data, preserving it and existing architecture, allowing it to be the way it is.

你知道，我們在人工智慧方面擁有獨特的優勢。我們擁有私人人工智慧，我們是保護組織私人資料神聖性的擁護者，而不是用它來訓練別人的人工智慧演算法，不透露它，不將它整合到別人的資料庫中。我們是客戶現有資料的擁護者，保護其和現有架構，使其保持原來的樣子。

In this way, we’re the anti-big tech and I believe that this market has room for an anti-big tech, for a pure play champion. An emphasis on champion because we’re championing the priorities and the preferences of the customer. Against the power of the vendor, so there’s room for us.

這樣，我們就是反大型科技公司，我相信這個市場有空間容納反大型科技公司、純粹的遊戲冠軍。強調支持，因為我們支持客戶的優先事項和偏好。對抗供應商的力量，所以我們有空間。

We’re excited about offering this functionality that gives our users a better option and so we will continue to chart a unique course, a course that contrasts with that of our competitors and to explain to customers that not all vendors are going to make the same demands and constrain their enterprise and the privacy of their information in the same way.

我們很高興能夠提供此功能，為我們的用戶提供更好的選擇，因此我們將繼續制定獨特的路線，與競爭對手的路線形成鮮明對比，並向客戶解釋並非所有供應商都會提供相同的要求並以相同的方式約束他們的企業及其資訊的隱私。

I think that for a lot of people, it’s a foregone conclusion, the big tech owns the customer’s data. I feel like valuations have reflected that assumption. But customers don’t like that idea. And when I mention it to them, they bristle. They say, look, that’s still our data. We don’t want to share it. We don’t want to train on it. We don’t want to consolidate it somewhere else. That’s ours -- that’s our primary asset.

我認為對很多人來說，這是一個已成定局：大型科技公司擁有客戶的數據。我覺得估值已經反映了這個假設。但顧客不喜歡這個想法。當我向他們提起這件事時，他們勃然大怒。他們說，看，那仍然是我們的數據。我們不想分享它。我們不想對此進行訓練。我們不想將其整合到其他地方。這是我們的——這是我們的主要資產。

There’s a lot of energy in favor of preserving data and architecture. I know I’m getting a little bit off the center of the question here. But I think it’s an important thing to mention that this constitutes an angle for us. It constitutes an advantage.

人們投入了大量精力來保護資料和架構。我知道我有點偏離問題的中心。但我認為值得一提的是，這對我們來說是一個角度。它構成了一個優勢。

Our business play is different and our requests to a customer are different, and that will continue to answer in our favor. When the customer worries about their privacy and the disruption they cause on their enterprise, we’re going to continue to have a very divergent offering in these regards.

我們的業務模式不同，我們對客戶的要求也不同，這將繼續對我們有利。當客戶擔心他們的隱私以及他們對企業造成的破壞時，我們將繼續在這些方面提供非常不同的產品。

Very helpful. Thanks for taking the questions.

非常有幫助。感謝您提出問題。

Thank you. I'm showing no further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。我目前沒有提出任何進一步的問題。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。