AudioCodes Ltd (AUDC) 2023 Q2 法說會逐字稿

Greetings. Welcome to AudioCodes Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, Roger Chuchen, VP of Investor Relations. You may begin.

問候。歡迎參加奧科 2023 年第二季度收益電話會議。 （操作員說明）請注意，本次會議正在錄製中。現在我將會議交給東道主投資者關係副總裁 Roger Chuchen。你可以開始了。

Thank you, Holly. Hosting the call today are Shabtai Adlersberg, President and Chief Executive Officer; and Niran Baruch, Vice President of Finance and Chief Financial Officer.

謝謝你，霍莉。今天主持電話會議的是總裁兼首席執行官 Shabtai Adlersberg；以及財務副總裁兼首席財務官 Niran Baruch。

Before we begin, I'd like to remind you that the information provided during this call may contain forward-looking statements relating to AudioCodes business outlook, future economic performance, product introductions, plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are forward-looking statements as the term is defined under U.S. Federal securities law.

在我們開始之前，我想提醒您，本次電話會議中提供的信息可能包含與奧科業務前景、未來經濟表現、產品介紹、相關計劃和目標有關的前瞻性陳述，以及有關所做假設或期望的陳述關於任何未來事件、條件、業績或其他事項的陳述均屬於美國聯邦證券法定義的前瞻性陳述。

Forward-looking statements are subject to various risks and uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets, in particular, shifts in supply and demand, market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes and its customers, products and markets.

前瞻性陳述受到各種風險和不確定性以及其他因素的影響，這些因素可能導致實際結果與此類陳述中所述的結果存在重大差異。這些風險、不確定性和因素包括但不限於全球經濟總體狀況以及奧科行業和目標市場狀況的影響，特別是供需變化、市場對新產品的接受度以及對奧科產品的需求。現有產品；競爭產品和定價對奧科及其客戶、產品和市場的影響。

Timely product and technology development, upgrades and the ability to manage changes in market conditions as needed, possible need for additional financing, the ability to satisfy covenants in the company's loan agreements, possible disruptions from acquisitions, the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes business; possible adverse impact of the COVID-19 pandemic on our business and results of operations; and other factors detailed in AudioCodes filings with the U.S. Securities and Exchange Commission.

及時的產品和技術開發、升級以及根據需要管理市場條件變化的能力、可能需要額外融資、滿足公司貸款協議中的契約的能力、收購可能造成的干擾、奧科成功整合產品的能力以及將收購公司的業務納入奧科業務； COVID-19 大流行可能對我們的業務和經營業績產生不利影響；以及奧科向美國證券交易委員會提交的文件中詳細說明的其他因素。

AudioCodes assumes no obligation to update this information. In addition, during the call, AudioCodes will refer to non-GAAP net income and net income per share. AudioCodes has provided a full reconciliation of the non-GAAP net income and net income per share to its net income and net income per share according to GAAP in the press release that is posted on its website.

奧科不承擔更新此信息的義務。此外，在電話會議期間，奧科將提及非 GAAP 淨利潤和每股淨利潤。奧科在其網站上發布的新聞稿中提供了非 GAAP 淨利潤和每股淨利潤與其根據 GAAP 的淨利潤和每股淨利潤的全面調節表。

Before I turn the call over to management, I would like to remind everyone that this call is being recorded. An archived webcast will be made available on the Investor Relations section of the company's website at the conclusion of the call. With all that said, I'd like to turn the call over to Shabtai. Shabtai, please go ahead.

在將通話轉交給管理層之前，我想提醒大家，此通話正在錄音。電話會議結束後，公司網站的投資者關係部分將提供存檔的網絡廣播。話雖如此，我還是想把電話轉給 Shabtai。沙巴泰，請繼續。

Thank you, Roger. Good morning, and good afternoon, everybody. I would like to welcome all to our second quarter 2023 conference call. With me this morning is Niran Baruch, Chief Financial Officer and Vice President of Finance of AudioCodes. Niran will start off by presenting a financial overview of the quarter. I will then review the business highlights and summary for the quarter and discuss strengths and developments in our business and industry. We will then turn it into the Q&A session. Niran?

謝謝你，羅傑。大家早上好，下午好。我謹歡迎大家參加我們的 2023 年第二季度電話會議。今天早上與我在一起的是奧科首席財務官兼財務副總裁 Niran Baruch。尼蘭將首先介紹本季度的財務概況。然後，我將回顧本季度的業務亮點和摘要，並討論我們業務和行業的優勢和發展。然後我們將把它變成問答環節。尼蘭？

Thank you Shabtai. And hello, everyone. Before I start my formal remarks, I would like to remind everyone that in conjunction with our earnings release this morning, we will post shortly on our Investor Relations website and earnings supplemental deck.

謝謝沙巴泰。大家好。在開始正式發言之前，我想提醒大家，結合今天早上發布的收益報告，我們將很快在投資者關係網站和收益補充平台上發布。

On today's call, we will be referring to both GAAP and non-GAAP financial results. The earnings press release that we issued earlier this morning contains a reconciliation of the supplemental non-GAAP financial information that I will be discussing on this call. We will be comparing our second quarter 2023 results to the prior quarter as we believe it provides a better gauge of our financial performance.

在今天的電話會議上，我們將提及 GAAP 和非 GAAP 財務業績。我們今天早上早些時候發布的收益新聞稿包含了我將在本次電話會議上討論的補充非公認會計準則財務信息的核對錶。我們將把 2023 年第二季度的業績與上一季度進行比較，因為我們相信這可以更好地衡量我們的財務業績。

Revenues for the second quarter were $60 million, an increase of 1.4% over the $59.2 million reported in the first quarter of the current year. Services revenues for the second quarter were $28.5 million, accounting for 47.4% of total revenues. The amount of deferred revenues as of June 30, 2023, was $77.7 million compared to $77.6 million as of March 31, 2023.

第二季度收入為 6000 萬美元，比今年第一季度的 5920 萬美元增長 1.4%。第二季度服務收入為2850萬美元，佔總收入的47.4%。截至 2023 年 6 月 30 日，遞延收入金額為 7,770 萬美元，而截至 2023 年 3 月 31 日，遞延收入金額為 7,760 萬美元。

Revenues by geographical region for the quarter were split as follows: North America, 47%; EMEA, 34%; Asia Pacific, 13%; and Central and Latin America, 6%. Our top 15 customers represented an aggregate of 55% of our revenues in the second quarter, of which 43% was attributed to our 11th largest distributor.

本季度按地理區域劃分的收入分佈如下：北美，47%；歐洲、中東和非洲地區，34%；亞太地區，13%；中美洲和拉丁美洲，6%。我們的前 15 位客戶總計占我們第二季度收入的 55%，其中 43% 來自我們的第 11 大分銷商。

GAAP results are as follows: gross margin for the quarter was 64.1% compared to 61.7% in Q1 2023. Operating income for the second quarter was $2.3 million or 3.8% of revenues compared to an operating loss of $0.8 million or 1.4% of revenues in Q1 2023.

GAAP 結果如下：本季度的毛利率為 64.1%，而 2023 年第一季度為 61.7%。第二季度的營業收入為 230 萬美元，佔收入的 3.8%，而 2023 年第二季度的營業虧損為 80 萬美元，佔收入的 1.4%。 2023 年第一季度。

Net income for the quarter was $1.1 million or $0.03 per diluted share compared to an operating loss of $0.2 million or $0.01 per diluted share for Q1 2023. Non-GAAP results are as follows. Non-GAAP gross margin for the quarter was 64.5% compared to 62.1% in Q1 2023.

本季度淨利潤為 110 萬美元，即稀釋後每股 0.03 美元，而 2023 年第一季度的運營虧損為 20 萬美元，即稀釋後每股 0.01 美元。非 GAAP 業績如下。本季度非 GAAP 毛利率為 64.5%，而 2023 年第一季度為 62.1%。

Non-GAAP operating income for the second quarter was $5.7 million or 9.5% of revenues compared to $2.9 million or 4.9% of revenues in Q1 2023. Non-GAAP net income for the second quarter was $5.1 million or $0.16 per diluted share compared to $2.7 million or $0.08 per diluted share in Q1 2023.

第二季度非 GAAP 營業收入為 570 萬美元，佔收入的 9.5%，而 2023 年第一季度為 290 萬美元，佔收入的 4.9%。第二季度非 GAAP 淨利潤為 510 萬美元，佔稀釋每股收益 0.16 美元，而 2023 年第一季度為 2.7 美元。 2023 年第一季度的利潤為 100 萬美元或稀釋後每股 0.08 美元。

At the end of June 2023, cash, cash equivalents, bank deposits, marketable securities and financial investment totaled $118.5 million. Net cash provided by operating activities was $2.2 million for the second quarter of 2023.

截至2023年6月末，現金、現金等價物、銀行存款、有價證券和金融投資總額為1.185億美元。 2023 年第二季度經營活動提供的淨現金為 220 萬美元。

Days sales outstanding as of June 30, 2023, were 95 days. In June 2023, we received court approval in Israel to purchase up to an aggregate amount of $25 million of additional ordinary shares. The court approval also permits us to declare a dividend of any part of this amount. The approval is valid through December 27, 2023.

截至 2023 年 6 月 30 日，應收賬款天數為 95 天。 2023 年 6 月，我們獲得以色列法院批准購買總額高達 2500 萬美元的額外普通股。法院的批准還允許我們宣布該金額的任何部分的股息。該批准有效期至2023年12月27日。

We declared a cash dividend of $0.18 per share, the aggregate amount of the dividend is approximately $5.7 million. The dividend will be paid on August 31, 2023, to all of our shareholders of record at the close of trading on August 17, 2023.

我們宣布派發現金股息每股0.18美元，股息總額約為570萬美元。股息將於 2023 年 8 月 31 日支付給 2023 年 8 月 17 日交易結束時在冊的所有股東。

Regarding headcount. As discussed last quarter, we undertook actions to reduce head count to better align our cost structure to the current business environment. These measures were partially reflected in our second quarter head count figures, ending the quarter with 946 employees, down from 978 in the first quarter. We expect full amount of head count reduction and associated cost savings to be reflected in our third quarter.

關於人數。正如上季度所討論的，我們採取了減少員工人數的行動，以便更好地調整我們的成本結構以適應當前的業務環境。這些措施部分反映在我們第二季度的員工人數中，本季度末員工人數為 946 人，低於第一季度的 978 人。我們預計員工總數的減少和相關成本的節省將在第三季度得到體現。

Now to providing an update on our guidance. We reiterate our guidance for revenues for 2023 to be in the range of $240 million to $250 million. We're now raising our guidance for non-GAAP diluted earnings per share to be in the range of $0.55 to $0.70 compared to the original range of $0.50 to $0.70.

現在提供我們的指導的最新信息。我們重申 2023 年收入指引為 2.4 億至 2.5 億美元。我們現在將非 GAAP 攤薄每股收益指引從原來的 0.50 美元到 0.70 美元提高到 0.55 美元到 0.70 美元。

I will now turn the call back over to Shabtai.

我現在將把電話轉回給沙巴泰。

Thank you, Niran. I'm pleased to report second quarter 2023 results with meaningful business activity improvement relative to the prior quarter in our key strategic areas.

謝謝你，尼蘭。我很高興地報告 2023 年第二季度的業績，與上一季度相比，我們的關鍵戰略領域的業務活動取得了有意義的改善。

We executed well in a challenging macro environment, with key growth engines, namely Microsoft, customer experience and voice AI growing nicely. We have also seen bookings experiencing measurable improvements relative to the last quarter.

我們在充滿挑戰的宏觀環境中表現良好，關鍵增長引擎，即微軟、客戶體驗和語音人工智能，增長良好。我們還發現，與上季度相比，預訂量有了顯著改善。

Importantly, core business leading indicators such as pipeline remain robust, and we saw relative stabilization in noncore lines such as the service provider and IP phones, which was the line contributing the most to the drop in the revenue in the first quarter of 2023.

重要的是，管道等核心業務領先指標仍然強勁，服務提供商和IP電話等非核心業務相對穩定，這是對2023年第一季度收入下降貢獻最大的業務。

These factors, coupled with incremental OpEx savings from cost-cutting actions announced last quarter provide us with increasing confidence to deliver on our commitment of delivering significant improvements in operating leverage over the rest of 2023 and beyond. We made good progress in our enterprise business, now reaching 88% of our company revenue. Microsoft-related business in the quarter grew 12% year-over-year and 16% sequentially.

這些因素，加上上季度宣布的成本削減措施帶來的運營支出增量節省，使我們更有信心兌現我們的承諾，即在 2023 年剩餘時間及以後實現運營槓桿率的顯著改善。我們的企業業務取得了良好進展，目前已達到公司收入的88%。本季度微軟相關業務同比增長 12%，環比增長 16%。

Core to this growth was Microsoft Teams business, which grew 18% year-over-year. Strong ongoing momentum of our AudioCodes Live managed services continued with annual recurring revenue exiting the quarter at $40 million and growing over 60% year-over-year. Live total contract value generated in the second quarter grew 75% over the previous quarter.

這一增長的核心是 Microsoft Teams 業務，該業務同比增長 18%。我們的 AudioCodes Live 託管服務繼續保持強勁勢頭，本季度的年度經常性收入達到 4000 萬美元，同比增長超過 60%。第二季度產生的實時合同總價值比上一季度增長了 75%。

Strong Live performance to date puts us on track to achieve our target of $46 million to $50 million objective for 2023, representing approximately 50% year-over-year growth.

迄今為止，Live 的強勁表​​現使我們有望實現 2023 年 4600 萬至 5000 萬美元的目標，同比增長約 50%。

Zoom related business grew over 20% year-over-year. We also executed well in our customer experience and conversational AI business with CX delivering 7% growth year-over-year.

Zoom相關業務同比增長超過20%。我們在客戶體驗和對話式 AI 業務方面也表現出色，CX 同比增長 7%。

Overall, we executed well this core in our burgeoning success particularly in Live puts us on an accelerated path in our long-term transformation to software and services. Talking about the broad-based improvement in business trends that we saw in second quarter, this clearly a validation of the strong competitive moat that we have built in our Voice business.

總體而言，我們在迅速取得成功的過程中很好地執行了這一核心，特別是在 Live 方面，這使我們走上了向軟件和服務的長期轉型的加速之路。談到我們在第二季度看到的業務趨勢的廣泛改善，這顯然證明了我們在語音業務中建立的強大競爭護城河。

Even in the tight budget environment that we are in, enterprises continue to turn to industry leaders such as AudioCodes for voice connectivity services and unified communication and customer experience sectors.

即使在預算緊張的環境下，企業也會繼續向奧科等行業領導者尋求語音連接服務以及統一通信和客戶體驗領域的幫助。

What best exemplifies the competitive differentiation we have in our software and services solution is our recent Live Cloud hosted Pro contract win with a Tier 1 service provider. This deal enables migration of the carriers and customers to next-gen UC platforms, starting initially with Microsoft Teams PSTN Voice and then to other leading UC platform over time.

最能體現我們在軟件和服務解決方案中的競爭優勢的是我們最近與一級服務提供商贏得的 Live Cloud 託管 Pro 合同。這項交易使運營商和客戶能夠遷移到下一代 UC 平台，首先從 Microsoft Teams PSTN Voice 開始，然後隨著時間的推移遷移到其他領先的 UC 平台。

As a reminder, Live Cloud Pro is a white label AudioCodes solution, consisting of managed SBC service along with service delivery portal for value -- I'm sorry, for value add voice services, such as contact center, recording, interaction analytics of meetings for enterprises, tenants and user management.

提醒一下，Live Cloud Pro 是一個白標奧科解決方案，由託管 SBC 服務以及價值服務交付門戶組成 - 抱歉，是增值語音服務，例如聯絡中心、錄音、會議交互分析用於企業、租戶和用戶管理。

Important to know that this carrier has conducted a thorough competitive bake-off process of the leading SBC vendors in the market before deciding to standardize on AudioCodes solution. Why did we come out on top. We won based on our best-in-class voice connectivity SaaS solution in our broad portfolio of service of devices, software application and services that is unparalleled in the industry. Partners and end customers alike have a strong preference for reducing complexity in our unique end-to-end unified communications and customer experience platform approach provides us with a significant leg up on our competition.

重要的是要知道，在決定對奧科解決方案進行標準化之前，該運營商已經對市場上領先的 SBC 供應商進行了徹底的競爭烘烤過程。為什麼我們能脫穎而出。我們之所以獲勝，是因為我們在廣泛的設備、軟件應用程序和服務組合中提供了一流的語音連接 SaaS 解決方案，這在業內是無與倫比的。合作夥伴和最終客戶都強烈傾向於降低我們獨特的端到端統一通信和客戶體驗平台方法的複雜性，這為我們在競爭中提供了顯著的優勢。

While the initial value of this contract award size is small, the long-term revenue opportunity is large. S1, this carrier operates in a market that is the very early stage of Cloud transformation. And second, significant upsell potential for our broader portfolio for solutions. We are grateful for this trust that this Tier 1 carrier is placing us as well as others that have made a Live and Live Cloud Managed services offering a rousing success.

雖然該合同授予規模的初始價值較小，但長期收入機會很大。 S1，該運營商所處的市場處於雲轉型的早期階段。其次，我們更廣泛的解決方案組合具有巨大的追加銷售潛力。我們非常感謝這家一級運營商對我們以及其他已經使 Live 和 Live Cloud 託管服務取得巨大成功的人的信任。

We look forward to providing ongoing update on the progress in our long-term transformation to software and services revenue stream. Before turning to detailed business segment discussions, let's quickly shift to profitability metrics and guidance.

我們期待不斷提供有關軟件和服務收入流長期轉型進展的最新信息。在開始詳細討論業務部門之前，讓我們快速轉向盈利指標和指導。

Our second quarter 2023 non-GAAP Earnings per share was $0.16 in the quarter, exceeding our internal budget. We estimate roughly half of the earnings upside to the higher non-GAAP gross margins and the balance to the lower OpEx in the quarter.

我們 2023 年第二季度非 GAAP 每股收益為 0.16 美元，超出了我們的內部預算。我們預計，本季度盈利增長的大約一半來自非公認會計原則毛利率的提高，其餘則來自運營支出的降低。

Second quarter non-GAAP gross margin was 64.5%, which improved from 62.1% in the previous quarter, driven primarily by more favorable product mix. Second quarter OpEx was $33 million, down from $33.9 million in the prior quarter, with the decline attributable to earlier than expected implementation of the cost-cutting measures announced last quarter.

第二季度非 GAAP 毛利率為 64.5%，較上一季度的 62.1% 有所改善，這主要得益於更有利的產品組合。第二季度運營支出為 3300 萬美元，低於上一季度的 3390 萬美元，下降的原因是上季度宣布的成本削減措施的實施早於預期。

Regarding headcount, accordingly, we ended the quarter with head count of 946 full-time employees, down from 978 employees in the first quarter. We expect our OpEx to continue to step down to $32 million in third quarter 2023, down approximately $2 million from the first quarter 2023 levels.

因此，就員工人數而言，本季度末我們的全職員工人數為 946 人，低於第一季度的 978 人。我們預計我們的運營支出將在 2023 年第三季度繼續下降至 3200 萬美元，比 2023 年第一季度的水平減少約 200 萬美元。

On the guidance front, as Niran already stated, we are reiterating our 2023 revenue guidance. While we adjust our non-GAAP earnings per share guidance to $0.55 to $0.70 to reflect better-than-expected second quarter earnings results.

在指導方面，正如 Niran 所說，我們重申 2023 年收入指導。同時我們將非 GAAP 每股收益指引調整至 0.55 至 0.70 美元，以反映好於預期的第二季度收益結果。

This outlook builds in continued conservative enterprise spending environment in our previously announced cost optimization.

這一前景建立在我們之前宣布的成本優化中持續保守的企業支出環境中。

Now to specific business line operations. First is the Microsoft business. Microsoft business increased 12% year-over-year in the second quarter, which compares with down 3% in the first quarter. That's a very nice improvement. In terms of second quarter, Microsoft business, Teams increased 18% year-over-year and 20% sequentially, while Skype for Business was down over 50% year-over-year and 33% sequentially. We are now towards the end of the transition of Microsoft business from Skype for Business to Teams.

現在來具體業務線操作。首先是微軟業務。微軟第二季度業務同比增長12%，而第一季度則下降3%。這是一個非常好的改進。第二季度，微軟業務Teams同比增長18%，環比增長20%，而Skype for Business同比下降超過50%，環比下降33%。 Microsoft 業務從 Skype for Business 到 Teams 的過渡現已接近尾聲。

And as such, the negative impact from Skype for Business declined over the past 3.5 years becomes negligible going forward. Microsoft business has shown strength mainly in North America and Asia Pacific were roughly flat in EMEA. In terms of bookings of new Microsoft business, we continue to see stronger performance in 2023 compared to 2022.

因此，Skype for Business 在過去 3.5 年中下降的負面影響在未來變得可以忽略不計。微軟業務主要在北美地區表現強勁，而在歐洲、中東和非洲地區則大致持平。就微軟新業務的預訂而言，我們繼續看到 2023 年的表現比 2022 年更強。

Hence, the greater number of sizable live deals that we closed in second quarter. In North America and Asia Pacific, while EMEA region remains subdued. Overall, we added 282 new Teams accounts in the quarter, up from 250 accounts in the first quarter. On its earnings call last week, Microsoft disclosed over 17 million PSTN users, representing 45% growth year-over-year.

因此，我們在第二季度完成了更多規模的實時交易。在北美和亞太地區，歐洲、中東和非洲地區依然低迷。總體而言，我們在本季度新增了 282 個 Teams 帳戶，高於第一季度的 250 個帳戶。在上週的財報電話會議上，微軟披露 PSTN 用戶數量超過 1700 萬，同比增長 45%。

The healthy stream of Teams PSTN Voice adds in a tightly enterprise budget environment, further underscores the value proposition of adding Teams phone to the overall Teams experience.

Teams PSTN 語音的健康發展增加了企業預算緊張的環境，進一步強調了將 Teams 電話添加到整體 Teams 體驗中的價值主張。

Importantly, the 17 million-plus PSTN users represent just a fraction of the overall 300 million teams users -- monthly active users, providing us with ample multiyear runway to drive ongoing penetration gain. One key area for us in the Microsoft business is the Team's Live deals, which represents each a high Total Contract Value. I'm glad to inform that in the second quarter, we were able to sign close to 10 accounts with a Total Contract Value of above $0.5 million, roughly $0.5 million to $1 million, which helps to build for us a very stable growing backlog of monthly recurring revenues for the next 36 months and beyond.

重要的是，超過 1700 萬的 PSTN 用戶僅佔 3 億團隊用戶總數（每月活躍用戶）的一小部分，這為我們提供了充足的多年跑道來推動持續的滲透率增益。我們在微軟業務中的一個關鍵領域是團隊的實時交易，它代表著每筆高總合同價值。我很高興地通知您，在第二季度，我們簽署了近 10 個賬戶，合同總價值超過 50 萬美元，大約為 50 萬至 100 萬美元，這有助於為我們建立非常穩定增長的積壓訂單。未來 36 個月及以後的每月經常性收入。

Now to our Contact Center Business. Contact Center Business grew 7% year-over-year in the quarter, and strengths in North America and Asia Pacific. After several quarters of lumpiness in this area, we believe we may be approaching an inflection point in CX bookings growth and more so in Live CX deals.

現在談談我們的聯絡中心業務。本季度聯絡中心業務同比增長 7%，並且在北美和亞太地區表現強勁。在該領域經歷了幾個季度的波動之後，我們相信我們可能正在接近 CX 預訂增長的拐點，尤其是 Live CX 交易。

Live CX deals show great potential for the future as they relate to the migration of mega contact center accounts from legacy on-prem vendors onto new cloud-based contact center implementation and the need to substantially transform and switch the Voice access network between different CX vendors is a result of an on-prem to cloud migration disruption.

Live CX 交易顯示出未來的巨大潛力，因為它們涉及將大型聯絡中心帳戶從傳統本地供應商遷移到新的基於雲的聯絡中心實施，以及在不同 CX 供應商之間大幅改造和切換語音接入網絡的需要是本地到雲遷移中斷的結果。

Underlying this growing confidence is a maturation of the deals within healthy pipeline built over the past 12 months, consisting of Core SBC, Voca CIC, entry-level Microsoft Teams, Contact Center Solution and other Voice AI application opportunities.

這種不斷增長的信心背後是過去 12 個月建立的健康管道中交易的成熟，包括 Core SBC、Voca CIC、入門級 Microsoft Teams、聯絡中心解決方案和其他語音 AI 應用機會。

I would like to give you an example of a recent Live CX contract we signed with a Tier 1 global system integrator in support of a multinational logistics firm. We believe that this deal brings to bear the broad capabilities of our Live CX and Conversational AI portfolio.

我想向您舉一個我們最近與一家一級全球系統集成商簽署的 Live CX 合同的例子，該合同旨在支持一家跨國物流公司。我們相信，這筆交易可以發揮我們的 Live CX 和對話式 AI 產品組合的廣泛功能。

Just a brief background, this large global customer intends to migrate over a multiyear period, tens of thousands of contact center agents spread over 200 locations in over 100 countries from a large incumbent on-prem Contact Center vendor to a CCaaS vendor.

簡單介紹一下背景，這家大型全球客戶打算在多年的時間內將分佈在 100 多個國家/地區 200 多個地點的數万名聯絡中心代理從現有的大型本地聯絡中心供應商遷移到 CCaaS 供應商。

AudioCodes was selected as the SBC vendor of choice for the following reasons. One, our SBC Managed Service saved the customer valuable time and [costly] internal IT resources that are required for such a large complex migration project.

奧科被選為 SBC 供應商的原因如下。第一，我們的 SBC 託管服務為客戶節省瞭如此大型複雜遷移項目所需的寶貴時間和[昂貴]內部 IT 資源。

Second, our custom design business continuity solution, leveraging our Voca Conversational IVR SmartTAP compliance recording and WebRTC client. In the event of a service outage in the cloud solution, and in the CCaaS platform, incoming calls would be seamlessly diverted to our solution, to our system, thereby ensuring service continuity.

其次，我們的定制設計業務連續性解決方案，利用我們的 Voca Conversational IVR SmartTAP 合規性記錄和 WebRTC 客戶端。如果雲解決方案和CCaaS平台出現服務中斷，來電將無縫轉移到我們的解決方案、我們的系統，從而確保服務連續性。

Third, having this extra layer of insurance is of paramount importance to this customer and is a key factor in its decision to move to a CCaaS platform.

第三，擁有這一層額外的保險對於該客戶來說至關重要，也是其決定轉向 CCaaS 平台的關鍵因素。

Note our custom-built architecture has been approved by the corporate division of the customer and could be purchased at individual contact center site levels. This contract carries a multiyear deployment schedule and full -- and a powerful ramp, annual recurring revenue is expected to reach $1 million without accounting for incremental revenues associated with expected uptake of our business continuity service.

請注意，我們的定制架構已獲得客戶公司部門的批准，並且可以在各個聯絡中心站點級別購買。該合同包含多年部署計劃和全面且強大的增長，每年經常性收入預計將達到 100 萬美元，而不考慮與我們的業務連續性服務的預期採用相關的增量收入。

Now to services. Services accounted for 47.5% of revenue and grew 2.7% year-over-year compared to 10.8% in the previous quarter. With the deceleration in growth rate primarily related to timing of professional services completion. Notably, our professional services bookings remained strong, up 18% in the quarter, implying healthy growth over the balance of the year. While -- our ongoing momentum in services, primarily in our Live subscriptions business, which ended second quarter at $40 million ARR up from over $36 million last quarter.

現在到服務。服務佔收入的 47.5%，同比增長 2.7%，而上一季度為 10.8%。增長率放緩主要與專業服務完成的時間有關。值得注意的是，我們的專業服務預訂量依然強勁，本季度增長了 18%，這意味著今年剩餘時間的健康增長。同時，我們在服務方面的持續發展勢頭，主要是我們的直播訂閱業務，第二季度末的 ARR 為 4000 萬美元，高於上季度的 3600 萬美元。

Additionally, we ended the quarter with Total Contract Value for Live subscription signed from inception of this program, exceeding $120 million, up from over $110 million last quarter, providing us with increasing level of revenue visibility.

此外，本季度結束時，我們自該計劃開始以來簽署的直播訂閱合同總價值超過 1.2 億美元，高於上季度的 1.1 億美元，這為我們提供了不斷提高的收入可見性。

At this stage, the backlog of managed services projects recurring revenue grows steadily and has shown growth of well over 50% in the second quarter. We expect strong momentum in Live services to continue in 2023 and beyond and reiterate our annual recurring revenue target of $46 million to $50 million by the end of 2023.

現階段，託管服務項目積壓的經常性收入穩步增長，第二季度的增長遠超50%。我們預計直播服務將在 2023 年及以後繼續保持強勁勢頭，並重申到 2023 年底我們的年度經常性收入目標為​​ 4600 萬至 5000 萬美元。

Now to Voice AI. Voice AI business grew over 15% year-over-year. As presented already in the past, we have identified the potential of applying AI technologies to the world of Voice back in 2018 when we established the Voice AI Group.

現在來談談語音人工智能。語音AI業務同比增長超過15%。正如過去所介紹的，早在 2018 年我們成立語音人工智能小組時，我們就發現了將人工智能技術應用於語音世界的潛力。

Now employing close to 100 R&D employees in which have since engaged in the development of technology and solutions for several advanced AI applications. What's unique in these major investments of ours is the fact that this is in a sense, a departure from our traditional world of voice networking and connectivity to a new world of Voice application, which are based on software and application.

目前擁有近 100 名研發員工，一直致力於多種先進人工智能應用的技術和解決方案的開發。我們這些重大投資的獨特之處在於，從某種意義上說，這脫離了傳統的語音網絡和連接世界，進入了基於軟件和應用程序的語音應用程序的新世界。

Going to be software and services centric. We have since developed several applications, one of which we announced yesterday. Voca Conversational Interactive Center, which is an AI first CCaaS solution in which we target to grow into meaningful new business line for us, which will generate tens of millions of dollars in the next couple of years.

以軟件和服務為中心。此後我們開發了多個應用程序，我們昨天宣布了其中之一。 Voca 對話互動中心，這是一個人工智能優先的 CCaaS 解決方案，我們的目標是發展成為對我們有意義的新業務線，這將在未來幾年內產生數千萬美元的收入。

In fact, adding Voca CIC to our already existing business of SBC and Live CX services and adding in the future a new evolving application of interactive analytics, we believe we are creating a very strong second leg of the CX business side-by-side with our successful business of voice solutions for the Unified Communication as a Service line.

事實上，將 Voca CIC 添加到我們現有的 SBC 和 Live CX 服務業務中，並在未來添加新的不斷發展的交互式分析應用程序，我們相信我們正在與我們成功的統一通信即服務系列語音解決方案業務。

Voca Conversational Interactive Center, our entry-level Microsoft Teams native AI first Contact Center is garnering significant customer interest in 2023. As enterprises are increasingly looking to leverage teams for true consolidation of UCaaS and CCaaS.

Voca 對話互動中心是我們的入門級 Microsoft Teams 原生 AI 優先聯絡中心，將在 2023 年贏得客戶的極大興趣。隨著企業越來越多地尋求利用團隊來真正整合 UCaaS 和 CCaaS。

As announced yesterday, Voca CIC is now officially certified by Microsoft as Microsoft Teams Contact Center Solution. We also made significant progress in our conversational AI lines. We made good progress on other lines, we'll touch them immediately.

正如昨天宣布的那樣，Voca CIC 現已獲得 Microsoft 正式認證為 Microsoft Teams 聯絡中心解決方案。我們在對話式人工智能產品線上也取得了重大進展。我們在其他方面取得了良好進展，我們將立即進行處理。

So let's talk about the different lines. Let's talk about Voice AI Connect. This is a connectivity service supporting voice bots, use cases such as virtual agents and agent assist.

那麼讓我們來談談不同的線路。我們來談談語音人工智能連接。這是一項支持語音機器人、虛擬代理和代理協助等用例的連接服務。

Voice AI Connect made good progress in the quarter. Second quarter bookings nearly doubled from first quarter, helped by expansion purchases by multiple customers, which speaks for the efficacy of our solutions and the growing adoption of conversational AI particularly amongst large enterprises.

Voice AI Connect 在本季度取得了良好進展。在多個客戶擴大購買的幫助下，第二季度的預訂量比第一季度增長了近一倍，這說明了我們解決方案的有效性以及對話式人工智能的日益普及，尤其是在大型企業中。

Voca CIC, we have contracts, awards nearly doubled sequentially in the quarter and created opportunities pipeline remained robust, growing over 3x on a year-by-year basis. What has been fueling our burgeoning success here is a strong position in Teams' Voice ecosystem, giving us an attractive installed base from which we can upsell our entry-level CCaaS solution. Enterprise customers increasingly look to leverage Teams for both consolidated UC and CX environment.

Voca CIC，本季度我們的合同、獎項幾乎增加了一倍，創造的機會管道仍然強勁，同比增長超過 3 倍。推動我們迅速取得成功的是在 Teams 語音生態系統中的強大地位，為我們提供了一個有吸引力的安裝基礎，我們可以從中追加銷售我們的入門級 CCaaS 解決方案。企業客戶越來越希望利用 Teams 來實現整合的 UC 和 CX 環境。

Now let's mention Meeting Insights. This is our meeting room solution. Basically, we have completed the integration of GPT-4, making officially available to end customers productivity enhancement services such as auto generating, meeting summary, outline and action items, leveraging the power of generative AI.

現在我們來談談會議見解。這是我們的會議室解決方案。基本上，我們已經完成了GPT-4的集成，正式向最終客戶提供自動生成、會議摘要、大綱和行動項目等生產力增強服務，利用生成式AI的力量。

We are not stopping there as we are making investment to build new products to drive more actionable insights for our users and towards the development for own LLM technology.

我們不會就此止步，因為我們正在投資開發新產品，為我們的用戶帶來更多可行的見解，並開發自己的法學碩士技術。

To wrap up, we have executed well in a challenging macro environment with key growth engine in our core business, namely Microsoft, customer experience and Voice AI bookings experiencing measurable improvements relative to the last quarter.

總而言之，我們在充滿挑戰的宏觀環境中表現良好，我們的核心業務中的關鍵增長引擎，即微軟、客戶體驗和語音人工智能預訂，相對於上季度有了可衡量的改進。

Importantly, core business leading indicators, such as pipeline remain robust while noncore service provider and IP phone business lines seem to have stabilized. These factors coupled with incremental OpEx savings from cost-cutting actions announced last quarter provide us with increasing confidence in our ability to deliver on our commitment of delivering significant improvements in operating leverage over the rest of 2023 and beyond.

重要的是，管道等核心業務領先指標仍然強勁，而非核心服務提供商和IP電話業務線似乎已經穩定。這些因素加上上季度宣布的成本削減措施帶來的運營支出增量節省，使我們對履行在 2023 年剩餘時間及以後實現運營槓桿率顯著改善的承諾的能力越來越有信心。

With that, I would like to turn the call back to the operator for the Q&A session. Operator?

這樣，我想將電話轉回給接線員進行問答環節。操作員？

(Operator Instructions) Your first question for today is coming from Mason Marion at Jefferies.

（操作員說明）今天您的第一個問題來自 Jefferies 的 Mason Marion。

So I want to start on product revenues. Can you further elaborate what's driving the continued declines here? And then how are your inventory levels within the channels? And how does that inventory dynamic look for the back half of the year?

所以我想從產品收入開始。您能否進一步詳細說明是什麼推動了持續下降？那麼你們渠道內的庫存水平如何？今年下半年的庫存動態如何？

Yes. First, with regards to product, indeed, year-over-year, there was a decline, a double-digit decline. But what's encouraging is that sequentially, we had 10% growth in product in the second quarter compared to the first quarter. With regards to inventory, it -- mainly related -- the increase in inventory mainly relates to one business line or product line, which is the IP phone and also relates to the weakness at the service provider CPE business. We believe effective next quarter, we will start to see a decrease in the inventory level.

是的。首先，就產品而言，確實同比下降了，下降幅度是兩位數。但令人鼓舞的是，與第一季度相比，我們第二季度的產品增長了 10%。關於庫存，主要是相關的，庫存的增加主要與一條業務線或產品線有關，就是IP電話，也與服務提供商CPE業務的疲軟有關。我們相信從下個季度開始，我們將開始看到庫存水平下降。

Okay. That's good to hear. And for my second one, I want to -- I'm interested in the Voca Contact Center Solution with Teams. Can you just tell us more about this product, what's the size of this opportunity that you believe you're attacking? And then what kind of customers is this targeted towards? You're focusing on SMBs, mid-market enterprises.

好的。聽起來還不錯。對於第二個，我想 - 我對 Voca 聯絡中心解決方案與 Teams 感興趣。您能否告訴我們有關該產品的更多信息，您認為您正在攻擊的機會有多大？那麼它針對的是什麼樣的客戶呢？您關注的是中小企業、中端市場企業。

Right. So basically, the Voca CIC targets entry-level CCaaS Solution. We basically target both customer experience and enterprise experience agents. If you think about desk that would be used in IT environments, HR desk, sales, travel desk, legal et cetera. It would be very useful.

正確的。所以基本上，Voca CIC 的目標是入門級 CCaaS 解決方案。我們基本上以客戶體驗和企業體驗代理為目標。如果您考慮在 IT 環境中使用的辦公桌，人力資源辦公桌、銷售、旅行辦公桌、法律等。這將非常有用。

Usually, we target in the initial phase, a level of sense of agents. However, the product is designed at this stage to be able to answer with customers that have up to, let's say, 500 agencies.

通常，我們在初始階段的目標是代理人的意識水平。然而，該產品現階段的設計目的是能夠回答最多擁有 500 個代理機構的客戶。

Your next question is coming from Ryan MacWilliams with Barclays.

您的下一個問題來自巴克萊銀行的 Ryan MacWilliams。

This is (inaudible) calling in for Ryan MacWilliams. What are you driving commentary around future large enterprise contact center deals? And did you see any of those deals close in the second quarter?

這是（聽不清）呼叫 Ryan MacWilliams 的電話。您對未來大型企業聯絡中心交易有何評論？您是否看到這些交易中有任何交易在第二季度完成？

So we are actually already active in this market. And we've -- as I've mentioned on our call, we already have the bookings growing substantially in the first half of the year. We definitely look, we just delivered a deal -- well, we just signed a deal close to $1 million with a large U.S. based organization.

所以我們實際上已經活躍在這個市場上。正如我在電話中提到的，我們的預訂量在今年上半年已經大幅增長。我們確實看到了，我們剛剛達成了一項協議——嗯，我們剛剛與一家美國大型組織簽署了一項接近 100 萬美元的協議。

And we are fairly competitive. We get all kind of indication that we are able to replace known and incumbent players due to the fact that the solution is very advanced native to the Microsoft Azure and Teams environment. And once we are able to consolidate UCaaS and CCaaS in a single solution, that seems to be quite attractive to the customer base that intends to use teams as its UC platform.

而且我們具有相當的競爭力。我們得到各種跡象表明我們能夠取代已知的和現有的參與者，因為該解決方案對於 Microsoft Azure 和 Teams 環境來說是非常先進的。一旦我們能夠將 UCaaS 和 CCaaS 整合到一個解決方案中，這似乎對打算使用團隊作為其 UC 平台的客戶群非常有吸引力。

Your next question for today is coming from Greg Burns with Sidoti & Company.

今天的下一個問題來自 Sidoti & Company 的 Greg Burns。

The large service provider that is going to be deploying using you for Teams Live. Can you just talk about that opportunity in that channel? Is that the first large service provider using you in that capacity and what the pipeline of maybe other opportunities look like for you there?

將使用您進行 Teams Live 部署的大型服務提供商。您能談談該頻道中的機會嗎？這是第一個使用您擔任該職位的大型服務提供商嗎？那裡對您來說可能還有其他機會？

Yes. So actually, we're talking about a derivative of the Live services, which we called Team Live Cloud, Live Cloud target service providers that typically will sell the live services to their own business customers.

是的。實際上，我們談論的是 Live 服務的衍生產品，我們將其稱為 Team Live Cloud，Live Cloud 目標服務提供商通常會將實時服務出售給自己的企業客戶。

We already have a pack of more than 50 such service provider, although some are smaller in size. We are active in that area for the past 18 months already generating monthly revenues in the order of a few hundreds of thousands of dollars and basically, the idea if you take a name in the first tier or second tier service provider, each of them would be basically looking to empower its business customers with Live services, Live Club services from us and it should grow.

我們已經擁有 50 多家此類服務提供商，儘管其中一些規模較小。過去 18 個月，我們在該領域很活躍，每月收入已達到數十萬美元，基本上，如果您在第一級或第二級服務提供商中取名，他們每個人都會基本上是希望通過我們的 Live 服務、Live Club 服務為其商業客戶提供支持，並且它應該會增長。

I mean, we're just in the first innings of that product, but quite advanced. The product, by the way, supports not only Teams, but also will support shortly also Zoom solution and probably also WebEx solutions. So all in all, it's the only true multi-platform solution out there that should be able to get on board fairly quickly smaller accounts into a very powerful UC service.

我的意思是，我們正處於該產品的第一局，但已經相當先進了。順便說一句，該產品不僅支持 Teams，而且很快還將支持 Zoom 解決方案，可能還支持 WebEx 解決方案。總而言之，它是唯一真正的多平台解決方案，應該能夠相當快地讓較小的帳戶加入非常強大的 UC 服務。

Okay. And then the improvement you saw in the Microsoft business this quarter sequentially. Have you seen that continue into this quarter? Are you seeing businesses more willing to move forward with maybe projects that were delayed? What's the market environment look like there around Microsoft? And then looking forward, should we just expect the growth of Microsoft now just to line up with Teams at this point?

好的。然後是本季度微軟業務的連續改善。您是否看到這種情況持續到本季度？您是否發現企業更願意推進可能被推遲的項目？微軟周圍的市場環境如何？然後展望未來，我們是否應該僅僅期望微軟現在的增長能夠與 Teams 保持一致？

Sure. Yes. Well, the environment is really -- we saw improvement in the second quarter. I think the question that hoovered in the first quarter, whether we're going into a recession or not. I think in the second quarter that went a bit away. So businesses are willing to invest more moving forward with their projects.

當然。是的。嗯，環境確實是——我們在第二季度看到了改善。我認為第一季度出現的問題是我們是否會陷入衰退。我認為在第二季度，這種情況就有點消失了。因此，企業願意投入更多資金來推進他們的項目。

So all in all, yes, regarding the split between Teams and Skype for Business, yes, we are glad to say that we are really at the end of the decline in Skype for Business, which hurt the Team's growth. So yes, going forward, the main business is Teams and it's growing nicely. I would expect that business to continue to grow in the range of 15% to 20% year-over-year.

總而言之，是的，關於 Teams 和 Skype for Business 之間的分裂，是的，我們很高興地說，我們確實處於 Skype for Business 衰退的末期，這損害了團隊的增長。所以，是的，展望未來，主要業務是 Teams，並且增長良好。我預計該業務將繼續同比增長 15% 至 20%。

Okay. And then just lastly, how much revenue you're generating from your Voice AI suite of products now? And how much do you expect that to grow this year?

好的。最後，您現在從語音 AI 產品套件中獲得了多少收入？您預計今年這一數字會增長多少？

So I think I gave some numbers in the past. Last year, we did close to $6 million. We plan this year to grow at least 50%. But as several of our applications are maturing this year, we do expect even larger growth to start next year. So next year, I would count on a 50% to 70% growth.

所以我想我過去給出了一些數字。去年，我們的收入接近 600 萬美元。我們計劃今年至少增長 50%。但隨著今年我們的一些應用程序日趨成熟，我們預計明年將出現更大的增長。所以明年，我預計會有 50% 到 70% 的增長。

All in all, we have just to give you an idea, we have 4 different areas of activities. I've mentioned Voice AI Connect, which is already selling in several millions a year. We just started out with Meeting Insight. We do have SmartTAP, is a compliance solution. We have the Voca CIC, which again shows very strong ramp-up in bookings. And we will plan on adding interaction analytics going forward. So as I've mentioned on the call, we believe that these many different activities in the CX, the customer experience market will definitely help us grow conversational AI rapidly over the next few years.

總而言之，我們只是給您一個想法，我們有 4 個不同的活動領域。我提到了 Voice AI Connect，它的年銷量已經達到數百萬美元。我們剛剛開始使用 Meeting Insight。我們確實有SmartTAP，是一個合規性解決方案。我們有 Voca CIC，它再次顯示出預訂量的強勁增長。我們將計劃未來添加交互分析。正如我在電話會議中提到的，我們相信 CX、客戶體驗市場中的這些不同活動肯定會幫助我們在未來幾年內快速發展對話式人工智能。

Your next question is coming from Ryan Koontz at Needham & Company.

您的下一個問題來自 Needham & Company 的 Ryan Koontz。

First, a clarification on my interpretation as we think about the Live subscription, $40 million ARR and new product revenue at $30 million. Is it fair to interpret that with the transition from license to subscription for new footprint going out the door right now is around 25% subscription. Is that a fair assessment?

首先，澄清我的解釋，因為我們考慮的是 Live 訂閱、4000 萬美元的 ARR 和 3000 萬美元的新產品收入。公平地解釋一下，隨著新足跡從許可到訂閱的轉變，現在大約有 25% 的訂閱率。這是一個公平的評價嗎？

Pretty much, yes, at this stage, I think we have gone pretty upward with our Live subscription. I believe that in terms of bookings that's close to 25% of our overall Teams business.

是的，在這個階段，我認為我們的實時訂閱量已經大幅上升。我相信就預訂而言，它接近我們整個 Teams 業務的 25%。

That's great. And then circling back to contact centers. Can you update us on any of your strategic kind of partner developments in this space be it some of the big players like Genesys and Five9 or any other pure CCaaS players, including Amazon progress with there? Any updates on your kind of strategic plans with your contact center partners would be helpful.

那太棒了。然後繞回聯絡中心。您能否向我們介紹一下您在該領域的戰略合作夥伴發展情況，無論是 Genesys 和 Five9 等大型參與者，還是任何其他純粹的 CCaaS 參與者，包括亞馬遜在這方面的進展？您與聯絡中心合作夥伴的戰略計劃的任何更新都會有所幫助。

Right. So yes, actually, we enjoy quite a success in the second quarter. We won and have described -- we own a multimillion deal of 7, 8 years with a large system integrator moving a large logistics company from an on-prem vendor who seems to be losing steam into a Cloud Contact Center Solution. Or - our fame is our voice capabilities. We -- well providing a solution to a fairly complex voice network that may include 200 different sites in 100 different countries, different locations, different -- that's definitely a difficult task. And yes, I think that capability of ours has not gone undiscovered by some of the large contact center names that you have mentioned.

正確的。所以，是的，實際上，我們在第二季度取得了相當的成功。我們贏得了勝利，並描述了——我們與一家大型系統集成商簽訂了一份為期七、八年的數百萬美元協議，將一家大型物流公司從似乎正在失去動力的本地供應商轉移到雲聯絡中心解決方案。或者 - 我們的名氣是我們的聲音能力。我們將為相當複雜的語音網絡提供解決方案，該網絡可能包括 100 個不同國家、不同地點、不同地點的 200 個不同站點，這絕對是一項艱鉅的任務。是的，我認為您提到的一些大型聯絡中心名稱並沒有沒有發現我們的能力。

So yes, we do have a fairly close discussion with some of these partners that see us as a strong partner who can help them in solving all kind of issues. I've mentioned business continuity solution. There are some switching and first-mile solutions. So yes, we are in a very strong discussion with players in the field.

所以，是的，我們確實與其中一些合作夥伴進行了相當密切的討論，他們將我們視為可以幫助他們解決各種問題的強大合作夥伴。我已經提到了業務連續性解決方案。有一些轉換和第一英里解決方案。所以，是的，我們正在與該領域的參與者進行非常深入的討論。

Your next question is coming from Tal Liani at Bank of America.

你們的下一個問題來自美國銀行的塔爾·利亞尼。

I hope you can hear me -- I want to ask you about the environment in the context of last quarter, Microsoft was weaker. This quarter, Microsoft is better. Does it mean that the environment is getting better, meaning the visibility has improved or any better signed deals, did they work through inventories?

我希望你能聽到我的聲音——我想問你關於上季度微軟表現疲軟的環境。本季度，微軟表現更好。這是否意味著環境正在變得更好，意味著可見性有所提高，或者是否有更好的簽署交易，他們是否通過庫存進行了工作？

Kind of when you look at last quarter that was pretty dire and this quarter, when you look beneath surface, you can see some signs of I don't know if it's stability or even some growth. I want to understand if it means something or it's not just if you can tell us about spending.

當你看到上個季度的情況相當可怕時，而這個季度，當你看到表面之下時，你可以看到一些跡象，我不知道它是穩定還是增長。我想知道這是否意味著什麼，或者不僅僅是您可以告訴我們有關支出的情況。

Sure. So I've mentioned that we feel second quarter was better in terms of the overall environment and willingness, I would say, of management of cooperations to start spending more on modernizing their communication and collaboration solutions.

當然。因此，我提到，我們認為第二季度的整體環境和合作管理意願更好，我想說的是，合作管理開始投入更多資金來實現通信和協作解決方案的現代化。

And in that regard, I've mentioned that Teams users, we have overall worldwide 300 million, Voice have been applied to less than 20 million at this stage. I mean, Teams phone. So there's huge, huge runway in front of us. And I think that once the climate is better economically, we do see the environment better. So yes, we see it quite stable and we build on further grow in coming quarters and years.

在這方面，我提到Teams用戶，我們在全球範圍內總共有3億，現階段Voice的應用不到2000萬。我的意思是，團隊電話。所以我們面前有一條非常非常大的跑道。我認為，一旦氣候在經濟上有所改善，我們確實會看到更好的環境。所以，是的，我們認為它相當穩定，並且我們將在未來幾個季度和幾年內進一步增長。

There is expected acceleration in the second half. Is it based on contracts you already have? Or is it just normal seasonality? I'm trying to understand the risk in the acceleration.

預計下半年將加速。是基於您已有的合同嗎？還是只是正常的季節性？我試圖了解加速的風險。

Well, so far, we have not met any such risk. If you take our annual recurring revenue, which basically tells you that is the most important parameter for us. We're stepping fairly steadily. Just like an ARR solutions growth, we grew 100% a year, then declined to 80%. This year, we will grow 60%. We're talking about tens of different projects.

嗯，到目前為止，我們還沒有遇到任何這樣的風險。如果你看我們的年度經常性收入，這基本上告訴你這是我們最重要的參數。我們的步伐相當穩健。就像 ARR 解決方案的增長一樣，我們每年增長 100%，然後下降到 80%。今年，我們將增長60%。我們正在談論數十個不同的項目。

So all in all, the statistic is there. The coverage is nice. By the way, one very important thing is that we're starting to see, as I've mentioned on the call, some very high Total Contract Value projects, which could range from $1 million to $3 million over 36 months. All in all, very stable and promising environment for Live deals in Microsoft Teams environment.

總而言之，統計數據就在那裡。覆蓋範圍很好。順便說一句，一件非常重要的事情是，正如我在電話會議上提到的，我們開始看到一些合同總價值非常高的項目，在 36 個月內可能從 100 萬美元到 300 萬美元不等。總而言之，Microsoft Teams 環境中的實時交易環境非常穩定且有前途。

Got it. Last question. Sorry, I'm taking too much time. I think there was a question about it before me, but maybe it wasn't -- one of the problems we have in the industry is two things. Number one is channel inventory that companies just bought too much. And number two is too much backlog. So even when you see growth, it's coming from backlog, it's not coming from orders. Can you refer to these 2 things?

知道了。最後一個問題。抱歉，我花了太多時間。我認為我面前有一個關於它的問題，但也許不是——我們這個行業面臨的問題之一是兩件事。第一個是公司購買過多的渠道庫存。第二是積壓太多。因此，即使你看到增長，它也來自積壓，而不是來自訂單。你能參考一下這2件事嗎？

Yes. Actually, we've been on the opposite side of defense, right? I mean, in the first quarter, we dropped simply because partners who used to buy a product and sell them to their customers stop buying due to the higher cost of money. So we see -- we saw in the second quarter that some of them probably emptied already their inventory.

是的。事實上，我們一直站在防守的對立面，對吧？我的意思是，在第一季度，我們下降的原因僅僅是因為過去購買產品並將其出售給客戶的合作夥伴由於資金成本上升而停止購買。所以我們看到——我們在第二季度看到，其中一些人可能已經清空了庫存。

So we started to see some growth in the second half of the quarter. And going forward, we're already -- we are past July, and we see that trend continuing. So I believe that in the second half, we will see, at least for us, more orders that would use to fill up those inventories.

因此，我們在本季度下半年開始看到一些增長。展望未來，我們已經過了七月，而且我們看到這種趨勢仍在繼續。因此，我相信，在下半年，我們將看到，至少對我們來說，更多的訂單將用於填補這些庫存。

We have reached the end of the question-and-answer session, and I will now turn the call back to Shabtai for closing remarks.

問答環節已經結束，我現在將電話轉回給沙布泰，讓其作結束語。

Thank you, operator. I would like to thank everyone who attended our conference call today. On the heels of good second quarter and with more focused planning and better control of expenses for the rest of 2023, we have high confidence in our ability to expand our business this year and in coming years. We look forward to your participation in our next quarterly conference call. Thank you all. Have a nice day.

謝謝你，接線員。我要感謝今天參加我們電話會議的所有人。繼第二季度的良好表現以及 2023 年剩餘時間更加集中的規劃和更好的費用控制之後，我們對今年和未來幾年擴大業務的能力充滿信心。我們期待您參加我們的下一個季度電話會議。謝謝你們。祝你今天過得愉快。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。