Avid Technology Inc (AVID) 2023 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen. Welcome to Avid Technologies First Quarter 2023 Earnings Conference Call. My name is Whit Rappole, Avid's Vice President for Corporate Development and Investor Relations.

女士們、先生們，午安。歡迎參加 Avid Technologies 2023 年第一季財報電話會議。我叫 Whit Rappole，是 Avid 公司發展和投資人關係副總裁。

Please note that this call is being recorded today, May 4, 2023 at 5:30 p.m. Eastern Time.

請注意，本次通話是在今天（2023 年 5 月 4 日）下午 5:30 錄製的。東部時間。

With me this afternoon are Jeff Rosica, our Chief Executive Officer and President; and Ken Gayron, our Chief Financial Officer and EVP.

今天下午與我一起的有我們的執行長兼總裁 Jeff Rosica；以及我們的財務長兼執行副總裁 Ken Gayron。

In their prepared remarks, Jeff will provide an overview of our business, and then Ken will provide a detailed review of our financial and operating results, followed by time for questions.

在他們準備好的演講中，傑夫將概述我們的業務，然後肯將詳細回顧我們的財務和營運結果，然後是提問時間。

We issued our earnings release earlier this afternoon, and we have prepared a slide presentation that we will refer to on this call. The press release and presentation are currently available on the Events and Presentations page of our Investor Relations website at ir.avid.com. And shortly following the conclusion of this call, a replay will be available on our IR website for a limited time.

我們在今天下午早些時候發布了收益報告，並準備了一份幻燈片演示，將在本次電話會議上參考。新聞稿和簡報目前可在我們投資者關係網站 ir.avid.com 的活動和簡報頁面上查閱。本次電話會議結束後不久，我們將在有限的時間內在我們的 IR 網站上提供重播。

During today's call, management will reference certain non-GAAP financial metrics and operational metrics. In accordance with Regulation G, both the Appendix to our earnings release today and our Investor website contain a reconciliation of the most closely associated GAAP financial information to the non-GAAP measures and also definitions for the operational metrics used on this call and in the presentation. Unless otherwise noted, all figures noted by management during the call are non-GAAP figures, except for revenue, which is always GAAP.

在今天的電話會議上，管理階層將參考某些非 GAAP 財務指標和營運指標。根據 G 規則，我們今天的收益報告附錄和我們的投資者網站均包含最密切相關的 GAAP 財務資訊與非 GAAP 指標的對賬，以及本次電話會議和簡報中使用的營運指標的定義。除非另有說明，管理層在電話會議中記錄的所有數字均為非 GAAP 數據，收入除外，而收入始終為 GAAP。

In addition, certain statements made during today's presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our comments and answers to your questions on this call as well as the accompanying slide deck may include statements that are forward-looking and that pertain to future results or outcomes. These forward-looking statements are based on our current beliefs and information available as of today. Actual future results or occurrences may differ materially from these forward-looking statements. For more information, including a discussion of some of the key risks and uncertainties associated with these forward-looking statements, please see our press release issued today and our most recent annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC.

此外，今天的簡報中所做的某些陳述包含《1995 年私人證券訴訟改革法案》所定義的前瞻性陳述。 我們在本次電話會議上對您提出的問題的評論和回答以及隨附的幻燈片可能包括前瞻性的、與未來結果或成果有關的陳述。這些前瞻性陳述是基於我們目前的信念和截至今天可用的資訊。實際的未來結果或事件可能與這些前瞻性陳述有重大差異。欲了解更多信息，包括與這些前瞻性陳述相關的一些關鍵風險和不確定性的討論，請參閱我們今天發布的新聞稿以及我們向美國證券交易委員會提交的最新 10-K 表年度報告和 10-Q 表季度報告。

With that let me turn the call over to our CEO and President, Jeff Rosica, for his remarks.

接下來，請容許我把電話轉給我們的執行長兼總裁傑夫‧羅西卡 (Jeff Rosica)，請他發表評論。

Thanks Whit, and my thanks to everyone who is joining us today to review Avid's first quarter results. Let me get started right away by offering a summary of the 3 big takeaways for the quarter before I dive a bit into each of these points.

感謝 Whit，也感謝今天與我們一起回顧 Avid 第一季業績的所有人。讓我先對本季的三大要點進行總結，然後再深入探討每個要點。

First and foremost, we're quite pleased with the performance of the strategic recurring revenue portion of the business in Q1 with our subscription and SaaS business continuing to perform very well. Subscription revenue was up nicely year-over-year, with subscription ARR up over 31% year-over-year on a constant currency basis, and we continue to consistently add to our overall subscriber base in the quarter.

首先，我們對第一季策略經常性收入部分的表現感到非常滿意，我們的訂閱和 SaaS 業務繼續表現良好。訂閱收入年增率大幅成長，以固定匯率計算，訂閱 ARR 年增超過 31%，並且我們在本季度繼續穩步增加整體訂閱用戶群。

Next, we continue to see strong overall customer demand and bookings for our Integrated Solutions. Though as we work through resolving the ongoing supply chain issues, we did face more significant temporary challenges and costs in the quarter specific to our audio hardware products than we had anticipated. This created substantial and unexpected gross margin headwinds for audio hardware, which impacted overall profitability and free cash flow in the quarter.

接下來，我們繼續看到客戶對我們的整合解決方案的強勁的整體需求和預訂。儘管我們正在努力解決持續存在的供應鏈問題，但本季我們在音訊硬體產品方面面臨的臨時挑戰和成本確實比我們預期的要大。這給音頻硬體帶來了巨大且意想不到的毛利率阻力，從而影響了本季度的整體盈利能力和自由現金流。

We firmly believe that these issues are transitory as we work through resolution of these issues caused by the impacts from the macro supply chain situation. And our teams have good line of sight to resolve the majority of the issues we're currently seeing as we proceed through the balance of the year, and we expect to normalize hardware gross margins by the second half of 2023.

我們堅信，這些問題是暫時的，因為我們正在努力解決受宏觀供應鏈狀況影響而導致的這些問題。我們的團隊有很好的眼光來解決我們目前看到的大多數問題，因為我們將在今年餘下的時間裡繼續努力，我們預計到 2023 年下半年硬體毛利率將恢復正常。

Also, we are taking further proactive cost savings measures to help mitigate these near-term headwinds that we're managing through, which Ken and I will both discuss further in our prepared remarks.

此外，我們正在採取進一步的主動成本節約措施，以幫助緩解我們正在應對的這些短期不利因素，肯和我都將在準備好的發言中進一步討論這些問題。

And lastly, with the continued strong subscription performance, ARR growth and bookings trend, combined with our proactive measures in managing cost to protect against near-term macro headwinds, which continue to have full confidence in our long-term growth strategy and the outlook for the year. And as such, we are reaffirming our guidance for the full year.

最後，憑藉持續強勁的訂閱表現、ARR 成長和預訂趨勢，加上我們採取主動措施管理成本以抵禦短期宏觀逆風，我們繼續對我們的長期成長策略和今年的前景充滿信心。因此，我們重申全年業績預期。

Now let me dig in a bit more and provide some specifics on each of these areas. We continue to see strong adoption of our Creative Tool subscriptions and Enterprise subscription and SaaS offerings, which resulted in quite solid growth in our overall subscription business in the quarter. Subscription ARR grew year-over-year at over 31% at constant currency to $150 million, which helped drive total ARR to $247 million, representing growth over 9% year-over-year at constant currency.

現在讓我深入挖掘並針對每個領域提供一些具體資訊。 我們繼續看到創意工具訂閱、企業訂閱和 SaaS 產品的強勁採用，這使得我們本季的整體訂閱業務實現了相當穩健的成長。以固定匯率計算，訂閱 ARR 年成長超過 31% 至 1.5 億美元，推動總 ARR 達到 2.47 億美元，以固定匯率計算，年成長超過 9%。

Our subscriber base continued to grow nicely with us adding approximately 20,700 active paid software subscriptions, which brings our total to over 526,700 at the end of the quarter, representing an increase of 22% year-over-year.

我們的用戶群繼續保持良好的成長勢頭，新增了約 20,700 個活躍付費軟體訂閱，使得本季末的用戶總數超過 526,700 個，較去年同期成長 22%。

Our Creative Tools are an essential part of our subscription growth, and we continue to see strength in this area, especially for the key products, Pro Tools and Media Composer. As part of our growth strategy in the music creation segment, we continue to innovate and further grow the Pro Tool subscription business with current customers and also attracting more of the next-generation music creatives.

我們的創意工具是我們訂閱成長的重要組成部分，我們繼續看到該領域的優勢，尤其是對於關鍵產品 Pro Tools 和 Media Composer。作為我們音樂創作領域成長策略的一部分，我們將繼續創新，與現有客戶一起進一步發展 Pro Tool 訂閱業務，同時吸引更多的下一代音樂創意人員。

As we continue to ramp up our strategic focus on the music creation space and are gearing up for a very important product release planned for the second half, we announced a new Pro Tools program called Sonic Drop, which provides subscribers access to a monthly mix of new samples, loops and instrument presets.

隨著我們繼續加強對音樂創作領域的戰略重點，並為計劃於下半年發布的一款非常重要的產品做準備，我們宣布了一款名為 Sonic Drop 的新 Pro Tools 程序，該程序為訂閱者提供每月新樣本、循環和樂器預設的混合版本。

I'm really excited about the new Pro Tools innovation that is coming from music creators and we look forward to unveiling it later this year as we strongly believe that extending Pro Tools deeper and wider into the music creation space should drive meaningful acceleration in subscriber growth.

我對音樂創作者的全新 Pro Tools 創新感到非常興奮，我們期待在今年稍後推出它，因為我們堅信將 Pro Tools 更深更廣地擴展到音樂創作領域將推動用戶成長的顯著加速。

Adoption of enterprise subscriptions continues to trend very well, increasing our confidence in the growth trajectory of our overall subscription business. And ARR per subscription seat continued to improve as enterprise subscriptions becomes a larger portion of the business.

企業訂閱的採用持續呈現良好的趨勢，增強了我們對整體訂閱業務成長軌跡的信心。隨著企業訂閱在業務中所佔比例越來越大，每個訂閱席位的 ARR 也持續提高。

2 weeks ago at the NAB Show in Las Vegas, we announced a new agreement with TelevisaUnivision to collaborate on moving the content production workflows across their portfolio of international media properties to Google Cloud as part of their strategic innovation plans, enabling them to meet spikes in content demand and maximize cost efficiency by leveraging our Flex subscription offerings in the cloud. I believe that this announcement offers another proof point of our market leadership and first-mover advantage as the media industry is starting to move to cloud-based workflows and SaaS solutions.

兩週前，在拉斯維加斯舉行的 NAB 展會上，我們宣布與 TelevisaUnivision 達成新協議，作為其戰略創新計劃的一部分，我們將合作將其國際媒體資產組合的內容製作工作流程遷移到 Google Cloud，使他們能夠滿足內容需求的激增，並通過利用我們在雲端的 Flex 訂閱產品最大限度地提高成本效率。我相信，隨著媒體產業開始轉向基於雲端的工作流程和 SaaS 解決方案，這項聲明再次證明了我們的市場領導地位和先發優勢。

As I mentioned earlier, we did continue to see good customer demand and bookings for integrated solutions in Q1. While Integrated Solutions revenue increased slightly this quarter to $28.7 million, our backlog does remain elevated due to the remaining supply chain constraints and continued good demand. And we ended the first quarter with a backlog of over $20 million. We still expect to resolve the current situation over the next couple of quarters and expect to end 2023 in a more normalized state. And as I highlighted before during the first quarter, we did experience greater gross margin headwinds than we anticipated with our audio hardware products. Specifically, gross profit on audio hardware was adversely impacted by temporary higher cost of producing these products as we work through resolving the impacts of the macro supply chain situation on this specific portion of our business. The impact on the audio hardware gross profits did have a flow-through impact to EBITDA, EPS and free cash flow in the quarter.

正如我之前提到的，我們確實在第一季繼續看到客戶對整合解決方案的良好需求和預訂。雖然本季整合解決方案收入小幅增加至 2,870 萬美元，但由於剩餘的供應鏈限制和持續良好的需求，我們的積壓訂單仍然很高。第一季結束時，我們的積壓訂單量超過 2,000 萬美元。我們仍預計未來幾季內當前局勢將得到解決，並預計 2023 年底將以更正常化的狀態結束。正如我在第一季強調的那樣，我們的音頻硬體產品確實遭遇了比預期更大的毛利率阻力。具體而言，由於我們正在努力解決宏觀供應鏈狀況對我們業務這一特定部分的影響，音頻硬體的毛利受到生產這些產品的暫時較高成本的不利影響。對音頻硬體毛利的影響確實對本季的 EBITDA、EPS 和自由現金流產生了傳導影響。

As I discussed previously, we are currently taking further proactive cost savings measures and working diligently to mitigate the effects of the global supply chain situation on our business and drive the financial performance of the company.

正如我之前所討論的，我們目前正在採取進一步積極的成本節約措施，並努力減輕全球供應鏈狀況對我們業務的影響並推動公司的財務表現。

Also back in April, we announced the MTRX II audio interface that was very well received by the market, which replaces the current MTRX interface that has been one of the products that has had significant component supply issues. The new MTRX II, which utilizes newer FPA technology that is less expensive and has better availability is expected to begin shipments during Q2 and should improve volumes and margins in this important product area.

同樣在四月份，我們發布了受到市場熱烈歡迎的 MTRX II 音頻接口，它取代了當前的 MTRX 接口，後者是存在嚴重零件供應問題的產品之一。新款 MTRX II 採用了價格更低、可用性更好的新型 FPA 技術，預計將於第二季開始出貨，並將提高這一重要產品領域的銷售和利潤率。

While we experienced issues with our audio hardware, we saw continued success and solid financial performance with our storage business. New product offerings to new markets as well as the cloud and on-prem software subscription options that we now offer have driven sustained success in this area of the Integrated Solutions business.

雖然我們的音訊硬體遇到了問題，但我們的儲存業務繼續取得成功並取得穩健的財務業績。我們向新市場推出的新產品以及目前提供的雲端和本地軟體訂閱選項推動了整合解決方案業務這一領域的持續成功。

Last month, we announced the availability of Avid NEXIS Cloud Nearline Storage for our Edit On Demand SaaS offering, bringing highly cost-efficient nearline storage to cloud-based content creation workflows as well as unveiling the new NEXIS F2 SSD storage solution for ultra-high resolution and ultra high-performance video workflows, both of which were very well received by customers and prospects at the recent NAB Show.

上個月，我們宣佈為我們的按需編輯 SaaS 產品推出 Avid NEXIS 雲近線存儲，為基於雲的內容創建工作流程帶來極具成本效益的近線存儲，同時還推出了用於超高分辨率和超高性能視頻工作流程的全新 NEXIS F2 SSD 存儲解決方案，這兩項產品在最近的 NAB 展會上都受到了客戶和潛在客戶的好評。

Our enterprise subscription agreements are quite valuable for the company, especially with a multiyear contractual commitment as well as the resulting uplift and increase in ARR that we are realizing. This has motivated us to accelerate the end of life of our remaining perpetual software license options, which is the right business decision for the company, though it does create a bit of a near-term comparative headwind for us.

我們的企業訂閱協議對公司來說非常有價值，尤其是多年的合約承諾以及由此實現的 ARR 的提升和增加。這促使我們加速終止剩餘的永久軟體授權選項，這對公司來說是正確的商業決策，儘管它確實為我們帶來了一些短期的相對阻力。

As a management team that is quite experienced and proven at navigating various macro headwinds over the past few years, we remain hyper-focused on delivering improved earnings and free cash flow in 2023 and as such are proactively managing our cost structure.

作為一支經驗豐富且在過去幾年中成功應對各種宏觀逆風的管理團隊，我們仍然高度專注於在 2023 年實現盈利和自由現金流的提高，因此我們正在積極管理我們的成本結構。

As previously mentioned, we offered a voluntary early retirement program during the first quarter. And along with other significant cost-savings initiatives that we're executing on this quarter, we have confidence that we can offset the temporary margin shortfalls that we're currently experiencing to help ensure that we stay on track to deliver on our profitability and cash flow targets for the year. And we're making the right cost decisions to also protect and help self-fund our strategic innovation and digital transformation as part of our long-term growth plan.

如前所述，我們在第一季推出了一項自願提前退休計劃。加上我們本季實施的其他重大成本節約舉措，我們有信心彌補目前遇到的暫時利潤率不足，以幫助確保我們繼續實現今年的盈利和現金流目標。我們正在做出正確的成本決策，以保護和幫助自籌資金進行我們的策略創新和數位轉型，這是我們長期成長計畫的一部分。

Ken will offer some specific financial details on the additional cost savings plans that we're currently implementing during his comments.

肯將在他的評論中提供我們目前正在實施的額外成本節約計劃的一些具體財務細節。

Extending on my earlier remarks, we are seeing sustained strength in our opportunity funnel and sales pipeline and continued to see strength in our overall bookings in the quarter, which were up more than 20% year-over-year. One of our global routes to market is through our channel partners. And as we've talked about previously, we have established an agreement called the Strategic Purchase Agreement, or SPA, as a premium level of the Avid Reseller program, which is only available to our highest performing, most engaged and invested partners.

延續我先前的評論，我們看到機會漏斗和銷售管道持續強勁，並且本季整體預訂量繼續保持強勁，同比增長超過 20％。我們進入全球市場的途徑之一是透過我們的通路合作夥伴。正如我們之前所討論的，我們已經建立了一項名為戰略購買協議（SPA）的協議，作為 Avid 經銷商計劃的高級版本，僅適用於我們表現最佳、參與度最高和投入最多的合作夥伴。

As of the first quarter of 2023, we now have over 70 channel partners around the globe who are on SPAs, and these strategic partners are playing a key role in helping drive strong bookings growth.

截至 2023 年第一季度，我們在全球已擁有超過 70 個加入 SPA 的通路合作夥伴，這些合作夥伴在協助推動強勁的預訂量成長方面發揮關鍵作用。

Now let's talk about where we see things going forward from a business perspective. We expect continued strength in subscription and an increase in ARR going forward. As I mentioned on the call last quarter, we believe ARR is really the right metric for investors to understand the real underlying growth trajectory of our subscription and SaaS business. With our shift to subscription in SaaS, we do expect maintenance revenue to trend down over time; however, we do expect increased hardware shipments, planned pricing adjustments and solid renewal rates to contribute to stabilizing maintenance revenue during the remaining quarters of 2023.

現在讓我們從商業角度來談談我們對未來發展的看法。我們預計未來訂閱量將持續保持強勁，ARR 也將上升。正如我在上個季度的電話會議上提到的，我們相信 ARR 確實是投資者了解我們的訂閱和 SaaS 業務的真正潛在成長軌蹟的正確指標。隨著我們轉向 SaaS 的訂閱服務，我們確實預期維護收入會隨著時間的推移而下降；不過，我們確實預期硬體出貨量的增加、計畫中的價格調整和穩定的續訂率將有助於穩定 2023 年剩餘季度的維護收入。

We will continue investing in innovation and digital transformation, which are important to our strategic growth plan while very carefully managing our overall cost structure. As I mentioned earlier, we will focus on self-funding our growth initiatives through specific restructuring efforts and proactive cost management and controls.

我們將繼續投資於創新和數位轉型，這對我們的策略成長計畫至關重要，同時我們也會非常謹慎地管理我們的整體成本結構。正如我之前提到的，我們將專注於透過特定的重組措施和積極的成本管理和控制來為我們的成長計劃籌集資金。

As this management team has done multiple times previously, we are committed to taking the appropriate actions to deliver profitability throughout business cycles, and we're taking the actions to do so again as we navigate the current macro environment.

正如該管理團隊之前多次所做的那樣，我們致力於採取適當的行動，在整個業務週期中實現盈利，並且在我們應對當前宏觀環境時，我們將再次採取行動。

With an improving line of sight to resolving the current supply chain challenges, which admittedly have been a bit more stubborn to resolve than we anticipated, we do fully expect the supply chain conditions temporarily impacting audio hardware shipments and margins to gradually improve starting in Q2 and through the second half.

隨著解決當前供應鏈挑戰的視線不斷改善，誠然，這些挑戰比我們預期的要難一些，我們完全預計，暫時影響音頻硬體出貨量和利潤率的供應鏈狀況將在第二季度開始並持續到下半年逐步改善。

With the planned cost savings measures, along with planned price actions to address our audio hardware concerns, I am confident we have the necessary action plans in place to mitigate these issues by the second half of 2023.

透過計劃中的成本節約措施以及解決音訊硬體問題的規劃價格行動，我相信我們已經制定了必要的行動計劃，以在 2023 年下半年之前緩解這些問題。

While we are taking a cautious stance for Q2, we remain confident in the overall performance trajectory of the business. And with the continued strength of our subscription business and bookings trend, combined with the proactive measures we're taking to manage costs in order to protect against near-term macro headwinds, we continue to have full confidence in our long-term growth strategy and the outlook for the year. And as I mentioned in my opening comments, we are reaffirming guidance for the full year.

雖然我們對第二季度持謹慎態度，但我們對業務的整體業績走勢仍然充滿信心。隨著我們的訂閱業務和預訂趨勢持續強勁，再加上我們為管理成本以防止短期宏觀逆風而採取的主動措施，我們對我們的長期成長策略和今年的前景仍然充滿信心。正如我在開場白中提到的，我們重申全年業績指引。

So with that, let me now turn the call over to Ken to review some of the financial details. Take it away, Ken.

因此，現在讓我將電話轉給肯來審查一些財務細節。把它拿走吧，肯。

Thank you, Jeff, and good afternoon, everyone. In the first quarter, we continued our strong performance in our core subscription business and growing our recurring revenue. Our focus for the remainder of 2023 will build to further build our high-margin subscription revenue, proactively manage our costs and continue to stay on track with our long-term model. We expect these efforts to result in improving profitability as we move through 2023. Given this, we are reaffirming our annual guidance for fiscal year '23.

謝謝傑夫，大家下午好。第一季度，我們的核心訂閱業務持續保持強勁表現，並且經常性收入不斷增長。 2023 年剩餘時間我們的重點將是進一步提高高利潤的訂閱收入，主動管理成本，並繼續保持我們的長期模式。我們預計，這些努力將在 2023 年提高我們的獲利能力。

With that, let's now turn to the details of our first quarter financial results. Annual recurring revenue based on the annualization of subscription and maintenance bookings was $247 million in the first quarter, an increase of $19 million or 8% year-over-year and 9% year-over-year at constant currency.

現在讓我們來看看第一季財務表現的具體細節。第一季基於訂閱和維護預訂年化的年度經常性收入為 2.47 億美元，比去年同期增加 1,900 萬美元或 8%，以固定匯率計算則增長 9%。

Growth in ARR was due to subscription ARR growth of 30% as we continue to convert maintenance customers to subscription revenue at healthy uplifts while adding new customers. At constant currency, subscription ARR increased 31% year-over-year.

ARR 的成長是由於訂閱 ARR 成長了 30%，因為我們在增加新客戶的同時，繼續將維護客戶轉化為訂閱收入，並且實現了健康的成長。以固定匯率計算，訂閱 ARR 年增 31%。

Additionally, the unshipped Integrated Solutions backlog, which was $20 million at March 31, negatively impacted the maintenance ARR as the unshipped orders would have contributed about $2 million to maintenance ARR negatively impacting ARR growth by 1%. Absent this, our ARR growth would have been in excess of 10% year-over-year at constant currency.

此外，截至 3 月 31 日，未發貨的綜合解決方案積壓訂單為 2000 萬美元，這對維護 ARR 產生了負面影響，因為未發貨的訂單將為維護 ARR 貢獻約 200 萬美元，從而對 ARR 增長產生 1% 的負面影響。如果沒有這個，以固定匯率計算，我們的 ARR 成長率將超過 10%。

We continue to focus on growing our recurring revenue from subscription, maintenance and other revenue under long-term agreements to drive greater predictability in our business. As of the end of the first quarter, LTM recurring revenue was 85% of total revenue, up from 79% a year ago and in line with our long-term model.

我們繼續專注於增加來自長期協議下的訂閱、維護和其他收入的經常性收入，以提高我們業務的可預測性。截至第一季末，LTM 經常性收入佔總收入的 85%，高於一年前的 79%，與我們的長期模型一致。

Now let us look at the results of the first quarter of 2023, beginning with subscription. We are encouraged by the continued growth of our subscription base. Our total active paid software subscription count reached approximately 526,700 at the end of the first quarter, an increase of 22% year-over-year.

現在讓我們來看看 2023 年第一季的結果，從訂閱開始。我們的訂閱用戶群持續成長令我們感到鼓舞。截至第一季末，我們的活躍付費軟體訂閱總數達到約526,700，年成長22%。

Creative subscription growth was healthy and solid, and enterprise subscription performance in the first quarter continued to exceed our expectations.

創意訂閱成長健康穩健，第一季企業訂閱業績持續超越我們的預期。

We added approximately 13,300 new creative subscriptions for a growth of 14.8% year-over-year, led by a sequential increase in both Pro Tools and Media Composer net adds and continued growth in Sibelius. We now have over 100,000 Media Composer subscriptions, an important milestone for the company.

我們增加了約 13,300 個新的創意訂閱，比去年同期成長 14.8%，其中 Pro Tools 和 Media Composer 的淨增量均連續增加，Sibelius 也持續成長。我們目前擁有超過 100,000 個 Media Composer 訂閱，這對公司來說是一個重要的里程碑。

Overall, we are highly confident in the consistent growth of our Creative Tools subscription business, but expect to see strong improvement in license growth in revenue in the second half with the introduction of our music creation applications and Pro Tools that Jeff mentioned earlier.

總體而言，我們對創意工具訂閱業務的持續成長非常有信心，但隨著 Jeff 之前提到的音樂創作應用程式和 Pro Tools 的推出，我們預計下半年授權收入的成長將強勁提升。

Moving to our Enterprise business. MediaCentral subscriptions grew to approximately 53,300, an increase of about 7,400 during the first quarter, representing year-over-year growth of 176%. The increase in Enterprise subscriptions furthers our confidence in the transition of our existing customer base to subscription. We believe we have converted about 40% of MediaCentral maintenance customers to subscription as of March 31 and still have a large opportunity in MediaCentral ahead of us, plus over $40 million of storage, video server and graphics maintenance that will move to subscription over time.

轉向我們的企業業務。 MediaCentral 訂閱量成長至約 53,300 份，較第一季增加約 7,400 份，較去年同期成長 176%。企業訂閱量的增加增強了我們對現有客戶群轉向訂閱的信心。我們相信，截至 3 月 31 日，我們已經將大約 40% 的 MediaCentral 維護客戶轉為訂閱客戶，並且 MediaCentral 仍然有很大的發展機會，另外還有超過 4000 萬美元的儲存、視訊伺服器和圖形維護業務，這些業務將隨著時間的推移轉為訂閱業務。

As our enterprise subscription business continues to become a more meaningful part of our subscription mix, it is continuing to positively impact our overall price per seat as the price of our enterprise seat is a multiple of the price per seat of a creative seat. The impact is helping to drive a 6.7% year-over-year increase in subscription ARR per active paid software subscription.

隨著我們的企業訂閱業務繼續成為我們訂閱組合中更有意義的一部分，它繼續對我們的整體每席價格產生積極影響，因為我們的企業席位價格是創意席位每席價格的倍數。這一影響有助於推動每個活躍付費軟體訂閱的 ARR 年成長 6.7%。

The consistent growth in the number of paid subscriptions drove continued growth in subscription revenue during the first quarter, which reached $39.4 million, an increase of 19.5% year-over-year and 21.2% on a constant currency basis.

付費訂閱數量的持續成長推動第一季訂閱收入持續成長，達到 3,940 萬美元，年增 19.5%，以固定匯率計算成長 21.2%。

Now moving to subscription plus maintenance. During the first quarter, maintenance revenue was $22.6 million, down 20% year-over-year. Many maintenance contracts are renewed around year-end. We have seen an associated decline in software maintenance from Q4 to Q1.

現在轉向訂閱加維護。第一季度，維護收入為2,260萬美元，年減20%。許多維護合約都是在年底續約的。我們發現從第四季到第一季軟體維護量有所下降。

As we continue to successfully convert our enterprise customers to subscription offerings at healthy uplifts in excess of 150%, we expect to see a reduction in the related software maintenance revenue from those customers. However, we expect hardware maintenance revenue to improve due to the price increases plus expected higher hardware revenue and associated maintenance beginning in the second quarter as we expect our backlog will be depleted to normal levels by year-end. As a result, we believe total maintenance revenue will be stable at $22 million to $23 million per quarter for the remainder of 2023 supported by the current $97 million in maintenance ARR at the end of Q1.

隨著我們繼續成功地將企業客戶轉換為訂閱產品，且增幅超過 150%，我們預計這些客戶的相關軟體維護收入將會減少。然而，我們預計硬體維護收入將會因價格上漲而改善，加上預計從第二季開始硬體收入和相關維護將會增加，因為我們預計我們的積壓訂單將在年底前耗盡至正常水平。因此，我們相信，在第一季末 9,700 萬美元的當前維護 ARR 的支持下，2023 年剩餘時間的總維護收入將穩定在每季 2,200 萬至 2,300 萬美元。

Total subscription and maintenance revenue increased year-over-year by 1.2% in the first quarter and 4.1% on a constant currency basis, driven by the strong subscription performance, offset by the decline in maintenance software and temporary headwinds on maintenance hardware that should reverse going forward.

第一季總訂閱和維護收入年增 1.2%，按固定匯率計算增長 4.1%，這得益於強勁的訂閱表現，但被維護軟體的下滑和維護硬體的暫時阻力所抵消，但這種趨勢未來應該會逆轉。

Our subscription and maintenance gross margin was 85.9% in the first quarter, up 320 basis points year-over-year.

我們第一季的訂閱和維護毛利率為85.9%，較去年同期成長320個基點。

Now let's look at our Integrated Solutions performance. In the first quarter, Integrated Solutions revenue was $28.7 million, an increase of 1.8% year-over-year as we continue to work through the remaining supply chain issues that have hindered our audio hardware production capacity.

現在讓我們來看看我們的整合解決方案的表現。第一季度，整合解決方案營收為 2,870 萬美元，年成長 1.8%，因為我們繼續解決阻礙我們音訊硬體生產能力的剩餘供應鏈問題。

We ended the first quarter of 2023 with $20 million of contractually committed backlog at March 31. Our Integrated Solutions gross margin was 29.2% in the first quarter, down 1,200 basis points year-over-year. As Jeff said, although we made some progress in resolving the supply chain challenges, we did see an impact on audio hardware gross margins in the first quarter.

截至 2023 年第一季度，我們截至 3 月 31 日的合約承諾積壓訂單金額為 2,000 萬美元。正如傑夫所說，儘管我們在解決供應鏈挑戰方面取得了一些進展，但我們確實看到第一季音訊硬體毛利率受到了影響。

Approximately $1.5 million of the year-over-year gross profit decline was due to purchase price variation in the cost of components for audio hardware. $1.1 million was due to the shipments of audio hardware in the quarter from aged backlog at old sale prices, but higher components costs and $900,000 was due to a higher mix of lower-margin audio products in the quarter and higher production costs. Together, these impacts caused a $3.5 million year-over-year gross profit decline in the quarter, which flowed directly to operating income and EBITDA.

與去年同期相比，毛利下降約 150 萬美元，是由於音頻硬體零件成本的採購價格變化造成的。 110 萬美元是由於本季度以舊銷售價格出貨的積壓音頻硬件，但零部件成本較高，而 90 萬美元是由於本季度利潤率較低的音頻產品組合較高以及生產成本較高。這些影響共同導致本季毛利年減 350 萬美元，直接影響營業收入和 EBITDA。

We are driving additional price increases to recapture margins, including surcharges on aged backlog, and we expect to see an improvement in our key component costs. As a result, we're highly confident that our Integrated Solutions gross margins will improve in Q2 '23 and get back to more normal levels of 40% plus in the second half of the year.

我們正在推動進一步的價格上漲以重新獲得利潤，包括對陳舊積壓訂單徵收附加費，我們預計關鍵零件成本將有所改善。因此，我們非常有信心，我們的整合解決方案毛利率將在23年第二季度有所改善，並在下半年恢復到40％以上的正常水平。

Now moving to the rest of our revenue. Perpetual license revenue was $0.5 million in the first quarter of '23, a decrease of 89.5% year-over-year as we continue to deemphasize perpetual software and move to subscription software as we execute our plan to end-of-life perpetual solutions.

現在談談我們剩餘的收入。 23 年第一季的永久授權收入為 50 萬美元，年減 89.5%，因為我們在執行終止永久解決方案的計畫時，繼續不再強調永久軟體並轉向訂閱軟體。

The large amount of perpetual revenue in the prior year made our year-over-year comparison more challenging in Q1 '23, but moving forward, the amount of perpetual revenue in our prior year periods will be much less of an issue for year-over-year comparisons going forward.

上一年的大量永久收入使得我們 23 年第一季的年比比較變得更具挑戰性，但展望未來，上一年期間的永久收入數額對於未來同比比較的影響將不再那麼大。

In the first quarter, our professional services and training revenue was $6.5 million, an increase of 9.4% year-over-year and 12.5% year-over-year on a constant currency basis.

第一季度，我們的專業服務和培訓收入為 650 萬美元，年增 9.4%，以固定匯率計算年增 12.5%。

During the first quarter, we also continued to make progress with our projects to make our solutions available on AWS and Google Cloud, which continues to track to our plan.

在第一季度，我們也繼續推進我們的項目，使我們的解決方案可以在 AWS 和 Google Cloud 上使用，這繼續按照我們的計劃進行。

Now let's look at the rest of our results for the first quarter of 2023. Total revenue in the first quarter was $97.8 million, down 2.8% year-over-year and flat at constant currency, reflecting the strong performance across subscription as well as the perpetual decline.

現在讓我們來看看 2023 年第一季的其他業績。

Non-GAAP gross margin was 64% for the first quarter, down 280 basis points year-over-year and down 180 basis points at constant currency. This was due to a decline in Integrated Solutions gross margin despite strong margin improvement from our strategic subscription and maintenance revenue as discussed previously.

第一季非美國通用會計準則毛利率為 64%，較去年同期下降 280 個基點，以固定匯率計算下降 180 個基點。這是由於儘管如前所述，我們的策略訂閱和維護收入的利潤率大幅提高，但整合解決方案的毛利率卻下降了。

Non-GAAP operating expenses were $52.2 million in the first quarter, a $2.5 million increase year-over-year. As part of our efforts to control our spending while preserving our ability to invest in high-growth areas, we have taken several actions. During the first quarter, we implemented a voluntary early retirement program, which is expected to reduce costs by approximately $2 million in fiscal year '23. And in the second quarter, we are implementing a restructuring, which is expected to reduce costs by an additional $13 million in fiscal year '23. As a result of these actions and other cost savings efforts, we expect our operating expenses to decline in the second half of 2023, resulting in operating expenses of approximately $215 million for fiscal year '23.

第一季非公認會計準則營業費用為 5,220 萬美元，較去年同期增加 250 萬美元。為了控制支出並維持在高成長領域的投資能力，我們採取了多項措施。第一季度，我們實施了一項自願提前退休計劃，預計該計劃將在23財年減少約200萬美元的成本。而第二季度，我們正在實施重組，預計23財年的成本將再減少1,300萬美元。由於這些行動和其他成本節約措施，我們預計我們的營運費用將在 2023 年下半年下降，導致 23 財年的營運費用約為 2.15 億美元。

There is buy-in across the entire senior management team on managing our cost base while protecting investment in our subscription business to drive improved profitability and long-term value creation for our shareholders.

整個高階管理團隊都致力於管理我們的成本基礎，同時保護我們訂閱業務的投資，以提高獲利能力並為我們的股東創造長期價值。

Adjusted EBITDA was $12.7 million in the first quarter, down $6.5 million year-over-year, reflecting the lower gross profit from Integrated Solutions and higher operating expenses as discussed.

第一季調整後 EBITDA 為 1,270 萬美元，較去年同期下降 650 萬美元，反映出整合解決方案的毛利下降和營運費用增加（如上所述）。

Finally, non-GAAP earnings per share was $0.15 for the first quarter, down $0.18 year-over-year, reflecting the lower adjusted EBITDA and higher interest expense due to increase in base rates.

最後，第一季非公認會計準則每股收益為 0.15 美元，年減 0.18 美元，反映了調整後的 EBITDA 下降以及基準利率上調導致的利息支出增加。

Free cash flow was negative $6.5 million in the quarter, down $11 million year-over-year due to the reduction in adjusted EBITDA and higher inventory to support the planned increases in Integrated Solutions shipments starting in Q2 '23, plus timing of receivables collections at the end of the Q1.

本季自由現金流為負 650 萬美元，較去年同期下降 1,100 萬美元，原因是調整後的 EBITDA 減少，以及庫存增加以支持從 23 年第二季度開始的整合解決方案出貨量計劃增長，加上第一季末應收帳款回收時間。

We ended the first quarter of fiscal year '23 in a strong financial position with net debt to EBITDA of 2.1x.

我們以強勁的財務狀況結束了 23 財年第一季度，淨債務與 EBITDA 比率為 2.1 倍。

As discussed during our fourth quarter and fiscal year 2022 earnings presentation on March 1, we will continue to invest in our growth initiatives to drive our subscription revenue, but we'll be very prudent in our overall expense management to improve our free cash flow in 2023. Also, we expect working capital to be more of a benefit in the second half of 2023, which should assist free cash flow, along with the improvements we expect to see in our profitability.

正如 3 月 1 日我們在 2022 財年第四季度和全年收益報告中所討論的那樣，我們將繼續投資於我們的增長計劃以推動我們的訂閱收入，但我們將非常謹慎地管理我們的整體費用，以改善 2023 年的自由現金流。

Finally, we continue to execute corporate actions to enhance long-term shareholder value. During the first quarter, we repurchased 16,000 shares for $400,000, reflecting an average price of $26.74 per share, bringing the total repurchases to 2.9 million shares or $78.4 million under the $115 million authorization.

最後，我們繼續執行公司行動以提高長期股東價值。第一季度，我們以 40 萬美元的價格回購了 16,000 股，平均價格為每股 26.74 美元，在 1.15 億美元的授權範圍內，總回購量達到 290 萬股或 7,840 萬美元。

We will continue to deploy capital prudently in the most responsible way to drive long-term shareholder value.

我們將繼續以最負責任的方式審慎地部署資本，以推動長期股東價值。

Let's now turn to guidance. As Jeff said, we are confident in the underlying strength of our business. We expect continued strong growth in our subscription business and a positive trajectory given the strength in our bookings the last 2 quarters. Additionally, with the improvements in our cost structure, we expect to see significant growth in profitability and cash flow in the second half of the year. We also continue to expect to see gradual improvement in the Integrated Solutions gross margins beginning in the second quarter of 2023 that will eventually return to 40% plus margin levels in the second half of the year.

現在讓我們來談談指引。正如傑夫所說，我們對我們業務的潛在實力充滿信心。鑑於過去兩個季度的預訂量強勁，我們預計訂閱業務將繼續強勁成長並呈現積極的發展軌跡。此外，隨著成本結構的改善，我們預計下半年獲利能力和現金流將顯著成長。我們也繼續預計，從 2023 年第二季開始，整合解決方案的毛利率將逐步改善，並最終在下半年恢復到 40% 以上的利潤率水準。

In terms of guidance, for the second quarter of 2023, our guidance is as follows: ARR at the end of the period of $246 million to $251 million. At the midpoint, this reflects 8% year-over-year growth and approximately 30% year-over-year growth for subscription ARR. Sequentially, the ARR growth is slightly ahead of Q1 2023.

在指引方面，對於 2023 年第二季度，我們的指引如下：期末 ARR 為 2.46 億美元至 2.51 億美元。中間值反映了同比增長 8% 和訂閱 ARR 同比增長約 30%。按季度來看，ARR 成長略高於 2023 年第一季。

Total revenue guidance of $101 million to $111 million. At the midpoint, this reflects 8.5% growth year-on-year. Adjusted EBITDA guidance of $13 million to $20 million, and non-GAAP earnings per share guidance of $0.15 to $0.30, assuming 44.1 million shares outstanding.

總營收預期為 1.01 億美元至 1.11 億美元。中間值反映出年增8.5%。調整後的 EBITDA 預期為 1,300 萬美元至 2,000 萬美元，非 GAAP 每股盈餘預期為 0.15 美元至 0.30 美元，假設流通股數為 4,410 萬股。

At this time, we are also affirming our guidance for full year 2023 that was discussed during our fourth quarter and fiscal year '22 earnings presentation on March 1.

目前，我們也確認了 3 月 1 日第四季和 22 財年財報中討論的 2023 年全年業績指引。

Our guidance for 2023 ARR at the end of the period remains $270 million to $280 million, a range which represents year-over-year revenue growth of 12.3% at the midpoint.

我們對 2023 年期末 ARR 的預期仍為 2.7 億美元至 2.8 億美元，這一範圍的中間值代表著年收入成長 12.3%。

We believe ARR will accelerate in the second half with improving growth from Pro Tools, continued transition of MediaCentral maintenance customers to subscription, renewal of our first cohort of MediaCentral enterprise customers a positive uplift in the second half of the year and a rebound in our hardware maintenance revenue.

我們相信，隨著 Pro Tools 的成長、MediaCentral 維護客戶繼續轉向訂閱、第一批 MediaCentral 企業客戶的續簽以及硬體維護收入的反彈，ARR 將在下半年加速成長。

Our guidance for 2023 total revenue remains $447 million to $472 million, a range which represents year-over-year revenue growth of 10.1% at the midpoint.

我們對 2023 年總營收的預期仍為 4.47 億美元至 4.72 億美元，這一範圍的中間值代表著年收入成長 10.1%。

Our guidance for 2023 subscription and maintenance revenue remains $292 million to $302 million, a range which represents year-over-year growth of 13.7% at the midpoint.

我們對 2023 年訂閱和維護收入的預期仍為 2.92 億美元至 3.02 億美元，這一範圍的中間值代表同比增長 13.7%。

Our guidance for 2023 adjusted EBITDA remains $95 million to $105 million. Our guidance for 2023 non-GAAP EPS remains $1.53 to $1.75, assuming 45 million shares outstanding. And our guidance for 2023 free cash flow as adjusted remains $50 million to $60 million, which includes $7 million in cash restructuring charges.

我們對 2023 年調整後 EBITDA 的預期仍為 9,500 萬美元至 1.05 億美元。假設流通股為 4,500 萬股，我們對 2023 年非 GAAP 每股盈餘的預期仍為 1.53 美元至 1.75 美元。我們對 2023 年調整後自由現金流的預期仍為 5,000 萬至 6,000 萬美元，其中包括 700 萬美元的現金重組費用。

Our 2023 free cash flow guidance reflects the improvement in profitability and improvement in working capital, slightly offset by higher cash interest expense due to higher base rates and restructuring costs.

我們對 2023 年的自由現金流指引反映了獲利能力的提高和營運資本的改善，但由於基準利率上升和重組成本上升導致的現金利息支出增加，這項變化略有抵銷。

With that, I'd like to turn the call back to Whit.

說到這裡，我想把電話轉回惠特。

Thanks, Ken. Thanks, Jeff. One slight correction, share count for the EPS guidance for the full year is 44.0 million.

謝謝，肯。謝謝，傑夫。稍作修正，全年每股盈餘預期為 4,400 萬股。

That concludes our prepared remarks, and we are now happy to take questions. (Operator Instructions)

我們的準備好的演講到此結束，現在我們很高興回答您的提問。 （操作員指令）

Our first question is from Josh Nichols at B. Riley to be followed by Terry Tillman. Josh, please go ahead.

我們的第一個問題來自 B. Riley 的 Josh Nichols，接下來是 Terry Tillman。喬希，請繼續。

Perfect. Got it. So I mean clearly, you're working through a couple of lingering issues on the hardware side. It sounds like you expect that to ramp up in 2Q and to the rest of the year, but subscription revenue growth has been quite resilient here. I'm wondering if you could elaborate a little bit. You have this new Pro Tools offering that's going to support the growth acceleration in the second half. Also, anything that's coming on the SaaS front that you think is going to be driving accelerated growth, whether that's work with AWS or anything else, if you could give us a little bit more color on that.

完美的。知道了。所以我的意思是，很明顯，你正在解決硬體方面的一些揮之不去的問題。聽起來您預計這一數字將在第二季及今年剩餘時間內上升，但這裡的訂閱收入成長一直相當強勁。我想知道您是否可以詳細說明一下。您推出的這款新 Pro Tools 產品將支援下半年的成長加速。此外，您認為 SaaS 領域的任何新動向都將推動加速成長，無論是與 AWS 合作還是其他任何合作，您能否向我們詳細介紹一下？

Yes, Josh. This is Jeff. So yes, actually, there's a few things. That is the -- no, we haven't announced it yet, but we have at least told the market, as you know, that there is a new innovation coming around Pro Tools for music creation. That is going to announce in the second half and will have an impact in the second half, especially in the music creation space. So we're -- a lot of the work that we're doing now with Sonic Drop and some of the new like GrooveCell, SynthCell and PlayCell. The work we're doing like on the tiering with the artist, Pro Tools artists, all of that is basically readying the playing field for what we're going to launch here in the second half. So that's going to help us. Pro Tools is already performing quite well. I think that's going to give us another boost and lift in the second half.

是的，喬希。這是傑夫。是的，實際上有幾件事。那是——不，我們還沒有宣布，但如你所知，我們至少已經告訴市場，Pro Tools 即將推出一項用於音樂創作的新創新。這將在下半年宣布，並將對下半年產生影響，特別是在音樂創作領域。所以我們現在正在與 Sonic Drop 以及 GrooveCell、SynthCell 和 PlayCell 等一些新產品合作。我們正在進行的工作包括與藝術家、Pro Tools 藝術家進行分層，所有這些基本上都是為我們下半年要推出的產品做好準備。這對我們有幫助。 Pro Tools 的表現已經相當出色了。我認為這會在下半年為我們帶來另一次推動和提升。

We also do have more things coming around our subscription offerings on the enterprise. There is new releases in MediaCentral and some new applications or modules coming with that. There is -- we're extending more with a -- we just recently showed a preview of something we call Stream IO. We're also doing some new things around storage subscription, and that includes some of the cloud deployments. I can't give you specifics on -- I'm not allowed to give specifics yet on cloud by cloud, but let's just say that, that is all coming to the numbers. So we have a number of things that's going to help us in the second half, and we're looking forward to that. Hope that answers the question.

我們也將在企業訂閱服務方面推出更多舉措。 MediaCentral 發布了新版本，並附帶一些新的應用程式或模組。我們正在擴展更多功能——我們最近剛剛展示了一種我們稱為 Stream IO 的功能的預覽版。我們還在儲存訂閱方面做了一些新的事情，其中​​包括一些雲端部署。我無法向您提供具體信息——我還沒有被允許提供有關每個雲的具體信息，但我們只能說，這一切都歸結為數字。因此，我們有很多事情可以幫助我們度過下半年，我們對此充滿期待。希望這能回答這個問題。

Josh, just to share one more thing. There also is we have Tech Preview. I just remembered we can say something because it was Tech Previewed at NAB, is we have Edit On Demand right now. We do have a more expanded version that we call Production on Demand or Avid on Demand. We haven't nailed the name, but we did show it in Preview at NAB, so I can talk about it and that is coming before the end of the year also. And that's a very much enhanced SaaS offering.

喬希，我再分享一件事。我們還有技術預覽。我剛剛想起來我們可以說些什麼，因為它是 NAB 的技術預覽，我們現在有按需編輯。我們確實有一個更擴展的版本，我們稱之為“按需製作”或“按需 Avid”。我們還沒有確定名字，但我們確實在 NAB 的預覽中展示了它，所以我可以談論它，這也將在年底之前完成。這是一個非常增強的 SaaS 產品。

Thanks, Josh. Our next question is from Terry Tillman at Truist to be followed by Paul Chung. Terry, please go ahead.

謝謝，喬希。下一個問題來自 Truist 的 Terry Tillman，接下來是 Paul Chung。特里，請繼續。

Can you -- first of all, can you hear me okay?

你能——首先，你能聽到我說話嗎？

Yes, we can, Terry.

是的，我們可以，特里。

You said I can have a question and a follow-up. One of these questions may potentially almost be a 2-parter, but I'm going to give it a go. On, for Jeff, one thing I'm curious about is, it sounds like you're going to have your first cohort of MediaCentral renewals in the second half of the year, so sounds like an important milestone. How are those conversations going? And what kind of visibility do you potentially have around either product or subscription expansion? And then the second part of this first question is, was the 20% bookings growth about where you expected or above your expectations? Love some color on that, and then I had a follow up for Ken.

你說我可以提出問題並進行跟進。其中一個問題可能幾乎會分成兩個部分，但我打算嘗試。對 Jeff 來說，我很好奇的一件事是，聽起來你將在今年下半年迎來第一批 MediaCentral 續約，所以這聽起來是一個重要的里程碑。談話進行得怎麼樣了？您對產品或訂閱擴充可能有什麼樣的了解？那麼第一個問題的第二部分是，20％的預訂量增長是否達到您的預期或超出您的預期？喜歡那上面的一些顏色，然後我對 Ken 進行了跟進。

Yes. Perfect. So on the question regarding the cohort, yes, the cohort does start in the second half. It's near -- it's late Q3 and into Q4. The customers that are in that cohort, we know them pretty well. They're very stable and sticky customers, I believe. Those discussions are just starting, so I wouldn't want to get ahead of it to talk about what we would precisely expect, but we've got a pretty good handle on what we believe is possible and what is likely in the opportunities for those customers. So I'd say, for us, it's a good thing coming, and we're excited about it. So I wouldn't want to get ahead of that, obviously, also on a public call.

是的。完美的。因此關於隊列的問題，是的，隊列確實在下半場開始。已經臨近——第三季末和第四季即將來臨。我們非常了解這個族群的客戶。我相信，他們是非常穩定和忠誠的客戶。這些討論才剛開始，所以我不想提前談論我們究竟期望什麼，但我們已經相當清楚我們認為什麼是可能的，以及這些客戶可能面臨的機會是什麼。所以我想說，對我們來說這是一件好事，我們對此感到很興奮。因此，我顯然不想在公開電話會議上提前談論這個問題。

I think on the -- in general, I think that's kind of where we see it.

我認為—總體而言，這就是我們所看到的情況。

On the bookings trend, it was a little bit better than we expected initially. It's driven a large -- as I talked about our strategic purchase agreements, which are with some of our biggest, and let's say, highest-performing channel partners, they really had a heavy hand around the world in driving growth through their programs. And so we're really seeing some great performance from those partners, and it did perform a bit better than we had expected. So it was nice to start the year with that out of the gate.

就預訂趨勢而言，它比我們最初的預期要好一些。它推動了巨大的成長——正如我談到我們的策略採購協議時所說，這些協議是與我們一些最大的、可以說是表現最好的通路合作夥伴達成的，他們確實在全球範圍內透過他們的計劃推動成長方面發揮了重要作用。因此，我們確實看到這些合作夥伴的出色表現，其表現確實比我們預期的要好一些。因此，以這樣的方式開始新的一年是件好事。

Certainly. And then, Ken, just to follow up on free cash flow, I'm not trying to pin you down to something like pinpoint, but is it a positive free cash flow in 2Q? Or is it just going to be a modest burn? Just trying -- I know it's clearly going to get -- it's supposed to get better in the second half, but just trying to kind of bridge 1Q to the second half.

當然。然後，肯，只是為了跟進自由現金流，我並不是想讓你確定某個點，但是第二季的自由現金流是正的嗎？或只是輕微的燒傷？只是嘗試 - 我知道情況顯然會好轉 - 預計下半年會更好，但只是嘗試將第一季與下半年聯繫起來。

Yes. No, thank you, Terry, for your question. We expect it to be a modest burn in the second half. We expect...

是的。不，特里，謝謝你的提問。我們預計下半年會出現適度燒傷。我們期望...

Second quarter.

第二季。

Second quarter. We have obviously built up some working capital and inventory, and we did announce our cost reduction and cost plans, but we're only going to get a partial savings of that in the quarter because they're going to be impacting really in mid-May.

第二季。我們顯然已經累積了一些營運資金和庫存，我們也確實宣布了成本削減和成本計劃，但本季我們只能獲得部分節省，因為它們將在五月中旬產生真正影響。

So cash flow will be much stronger in the second half of the year. And that's historically what Avid has delivered just given the seasonality in terms of some of the business. So the cash flow generation will be more in the second half of the year.

因此下半年的現金流將會更加強勁。從歷史上看，Avid 只是考慮到部分業務的季節性，才提供這樣的服務。因此下半年產生的現金流將會更多。

Thanks, Terry. Our next question is from Paul Chung at JPMorgan to be followed by Jack Vanderard. Paul, please go ahead.

謝謝，特里。下一個問題來自摩根大通的 Paul Chung，接下來是 Jack Vanderard。保羅，請說。

So just wanted to follow up on the guidance. Can you talk about the confidence to kind of reiterate fiscal year '23 guide? What are some key drivers that could maybe provide some upside there? And is the variability mostly on the hardware side that is causing some uncertainty. And then -- or are you seeing maybe some step-ups in subscription maybe across enterprise that gives you more confidence?

所以只是想跟進指導。能談談重申 23 財年指南的信心嗎？哪些關鍵驅動因素可能帶來一些好處？主要是由於硬體方面的可變性導致了某些不確定性。然後 - 或者您是否看到整個企業的訂閱量有所增加，從而讓您更有信心？

Yes. So Mark, why don't I take it, and then Jeff can follow up. So we feel really highly confident in hitting the 2023 guidance, given the booking strength that we have and the plans that we have for improving our audio hardware margins and the improvement in the operating expenses. So I think that's in general.

是的。那麼馬克，為什麼我不接受它，然後傑夫可以跟進。因此，考慮到我們的預訂實力以及我們提高音訊硬體利潤率和改善營運費用的計劃，我們對實現 2023 年的指導目標非常有信心。所以我認為這是總體而言。

In terms of the revenue, we have talked about the improvements that we're going to have in our creative tools business with Pro Tools. That will drive additional revenue, and we will then have additional revenue growth in MediaCentral from continued new customers and converting the existing base plus renewing the cohorts plus additional revenue in storage and servers as those move to subscription.

在收入方面，我們已經討論了利用 Pro Tools 讓我們的創意工具業務得到改進。這將帶來額外的收入，然後我們將從持續的新客戶和現有基礎的轉換以及群體的更新以及存儲和伺服器轉向訂閱帶來的額外收入中獲得 MediaCentral 的額外收入增長。

So we feel good about the revenue growth in subscription and strategic revenue. We also have the backlog that will be shipped in the second half of the year. So that will drive the revenue towards the midpoint of the guidance levels that we have.

因此，我們對訂閱收入和策略收入的成長感到滿意。我們還有下半年要出貨的積壓訂單。因此這將推動收入達到我們指導水平的中點。

To achieve the higher end, we need to probably overperform on the Pro Tool side or have better uplifts on the MediaCentral given those are 2 of the biggest revenue components in subscription. As that drives the growth, that will drive improving gross margins for the company. And with the OpEx that we have a clear line of sight to, we feel really good about the EBITDA generation based on that revenue growth that will be incremental to what we see today in the first half. So we have a clear line of sight to the improvements in the P&L that will allow us to hit the guidance and then generate the positive free cash flow from the improvement in EBITDA and working capital as we go through the year.

為了達到更高的目標，我們可能需要在 Pro Tool 方面表現出色，或者在 MediaCentral 方面有更好的提升，因為它們是訂閱中最大的兩個收入組成部分。由於這推動了成長，因此這將推動公司毛利率的提高。由於我們對營運支出有著清晰的認識，因此，我們對基於收入成長的 EBITDA 產生感到非常滿意，這一增長將與我們今天在上半年看到的水平相比有所增加。因此，我們對損益表的改善有著清晰的認識，這將使我們能夠達到預期目標，並在全年透過 EBITDA 和營運資本的改善產生正的自由現金流。

Great. That's very helpful. And then a follow-up, just revisiting the long-term growth model to 2025. Where you think we are on plan across the segments? And where do you think we can see kind of better improvement in your view across the line items? And that's it for me.

偉大的。這非常有幫助。然後是後續問題，重新檢視 2025 年的長期成長模式。您認為在各個專案中我們可以在哪些方面看到更好的改進？對我來說這就是全部了。

Yes. I think in general, we continue to be -- if you think about the top line revenue, we continue to be in line with the long-term plan with the creative subscription growth kind of being in the 25% area. We expect to achieve that as part of -- as we look out, given the innovations and the creative tools and the large TAM that we have in both Pro Tools.

是的。我認為總體而言，如果你考慮營業收入，我們將繼續按照長期計畫進行，創意訂閱成長率將在 25% 左右。我們希望實現這一目標——考慮到我們在 Pro Tools 中擁有的創新和創意工具以及龐大的 TAM。

On enterprise subscription, we have a lot of maintenance to continue to convert in MediaCentral and our -- also our storage, servers and graphics products that will go to subscription. So that's all ahead of us. So we expect that to continue to deliver on our enterprise subscription, which has been a good growth engine for the company.

在企業訂閱方面，我們有許多維護工作需要繼續在 MediaCentral 中進行轉換，我們的儲存、伺服器和圖形產品也將轉為訂閱。這就是我們面臨的一切。因此，我們預計這將繼續實現企業訂閱，這對公司來說是一個良好的成長引擎。

So those 2 areas, we feel very confident on, and we expect those will drive higher gross profit margins as we look out, and our ability to get a little bit of operating leverage in the cost base as we drive that growth we expect to see improving EBITDA margins over time.

因此，我們對這兩個領域非常有信心，我們預計它們將推動更高的毛利率，並且隨著我們推動這一增長，我們能夠在成本基礎中獲得一些經營槓桿，我們預計 EBITDA 利潤率將隨著時間的推移而提高。

We feel really good about the long-term plan. Obviously, Q1 was a little bit of an issue on the audio hardware, but we expect to recapture that lost margin as we think about the second half plan.

我們對這個長期計劃感到非常滿意。顯然，第一季在音頻硬體方面出現了一些問題，但我們希望在考慮下半年計劃時重新奪回失去的利潤。

I think, Paul, and you just asked a question about where the opportunities are performed. We were -- as we've communicated at Investor Day, we were more careful and prudent about our SaaS projections. And timing -- really understanding the timing of the industry's transition, we've been careful with that. So I'd say that's probably an area, where, as the industry progresses, we'll be able to look at that very carefully and see how we accelerate that further. But we'll have to see how that plays out over the next year or so.

保羅，我想，你剛剛問了一個關於機會在哪裡實現的問題。正如我們在投資者日所傳達的那樣，我們對於 SaaS 預測更加謹慎和審慎。至於時機——真正了解產業轉型的時機，我們對此一直非常謹慎。因此我想說，這可能是一個領域，隨著行業的發展，我們將能夠非常仔細地研究它並看看如何進一步加速它。但我們必須觀察未來一年左右的情況如何。

Thanks, Paul. Our next question is from Jack Vander Aarde at Maxim to be followed by Nehal Chokshi. Jack, please go ahead.

謝謝，保羅。下一個問題來自 Maxim 的 Jack Vander Aarde，然後是 Nehal Chokshi。傑克，請說。

Hey guys, can you hear me okay?

嘿夥計們，你們聽得到我說話嗎？

Yes, we can, Jack.

是的，我們可以，傑克。

Okay, great. I appreciate the update. It sounds like you're doing a good job navigating the challenging macro environment with the maintain 2023 guidance. It's a good job there.

好的，太好了。我很感謝你的更新。聽起來你在維持 2023 年指導方針的情況下很好地應對了充滿挑戰的宏觀環境。那裡有一份好工作。

On enterprise subscription conversions, it sounds like about 40% are converted. So still a lot of runway there. Jeff, can you talk about what you're hearing from your enterprise customers that are not on a subscription model currently? And kind of what sort of percentage of them sound like they're looking to convert in the near term?

關於企業訂閱轉換，聽起來大約有 40％ 已經轉換。那裡仍有許多跑道。傑夫，您能談談您從目前未採用訂閱模式的企業客戶那裡聽到的情況嗎？其中有多少比例的人聽起來希望在短期內轉變？

Yes. It's good question, Jack, and good to talk to you. I think the amount that we've converted on a revenue basis is obviously in the numbers you spoke about from a number of customers, it's a smaller number have converted because it's the larger customers who -- the more sophisticated larger customers have gone first in many cases.

是的。這是個好問題，傑克，很高興與您交談。我認為我們在收入基礎上轉換的金額顯然是您從許多客戶那裡談到的數字，轉換的數量較少，因為在許多情況下，更大的客戶——更成熟的大客戶已經率先實現了轉換。

We're now working -- we still have some larger customers to go, but we also are working down through more what I'll call the small- and medium-sized businesses in that. That is a heavier channel play, that we do in that space, and we're working hard to really enable and get our channel really capable at subscription. In fact, growth of subscriptions in our channel is one of our fastest-growing segments in subscription. So we're really working hard to enable them and get them very good at subscription conversions.

我們現在正在努力——我們仍有一些較大的客戶需要合作，但我們也在努力接觸更多的我稱之為中小型企業的客戶。這是我們在該領域開展的更重要的頻道活動，我們正在努力使我們的管道真正具備訂閱功能。事實上，我們通路的訂閱成長是我們訂閱領域成長最快的部分之一。因此，我們正在非常努力地支持他們，並使他們在訂閱轉換方面表現出色。

I'd say so far, I just came back from NAB, and I think most enterprise customers understand that the world is a subscription economy now. And they already subscribed to Microsoft Office or SFDC or payroll system. I mean, it's pretty common today. So we don't really get a lot of pushback. I think it's just more going through the sales motions that our teams have to do around the world to convert customers and to time things with that customer's needs because it is a software upgrade when they move to the new software subscription. So it's really more timing around our customers and projects. But I think people like the value they're getting from our subscription offerings and the flexibility they get. And we have a lot more planned in value that we're putting into our subscription offerings over the coming, not just this year, but even as we go forward through the coming years. Hope that answered your question, Jack.

我想說到目前為止，我剛從 NAB 回來，我認為大多數企業客戶都明白世界現在是訂閱經濟。他們已經訂閱了 Microsoft Office 或 SFDC 或工資系統。我的意思是，這種現像在今天相當常見。因此我們實際上並沒有遇到太多阻力。我認為這只是我們團隊在世界各地進行的銷售活動，以轉換客戶，並根據客戶的需求安排時間，因為當他們轉向新的軟體訂閱時，這是一種軟體升級。因此，這實際上更多是圍繞我們的客戶和專案進行時間表。但我認為人們喜歡我們的訂閱服務所帶來的價值和靈活性。我們計劃在未來的訂閱服務中投入更多價值，不僅是今年，而且在未來幾年。希望這回答了你的問題，傑克。

Yes. That's great color. Just one more for me. On the creative tool side, it sounds like that continues to grow well. Pro Tools, Media Composer and even Sibelius returned to growth, I think I heard. Can you just talk about the freemium models of, I guess, with Pro Tools and maybe even Media Composer? Can you talk about the conversion opportunity there? And I think last quarter, you mentioned it was a very encouraging outlook, and just wondering if there's any updates there.

是的。顏色真棒。對我來說僅此一項。從創意工具來看，似乎持續成長良好。我好像聽說 Pro Tools、Media Composer 甚至 Sibelius 都恢復了成長。可以談談 Pro Tools 和 Media Composer 的免費增值模式嗎？您能談談那裡的轉換機會嗎？我認為上個季度您提到前景非常令人鼓舞，只是想知道是否有任何更新。

I sure can, Jack. So let me put them in 2 buckets. On the Media Composer side, that product, as you know, we're not trying to compete in the real down market opportunities. We leave that to other players in the space. We're really the tool used by professionals and in media companies.

我當然可以，傑克。所以讓我把它們放在兩個桶子裡。在 Media Composer 方面，正如您所知，我們並沒有試圖在真正的低迷市場機會中競爭。我們將此事留給該領域的其他參與者。我們確實是專業人士和媒體公司使用的工具。

And in that space, what we did announce something which you probably saw in the press release from a few weeks ago, we announced our -- we've moved our student program for Media Composer just -- I'm talking about Media Composer here, to a free student program for any student or a teacher for their own individual use, not for the -- necessarily the institution, but we do have a program around the institution also. We have a free-for-students program that launched that's gotten really rave reviews. And the whole goal of that is really to quickly grow the funnel even larger for people who are coming out of school, and they know our tools so that they can get hired into the enterprise customers. That really is a play into our enterprise customer market, not just our large enterprises, but small- to medium-sized businesses up to large.

在此領域，我們確實宣布了一些您可能在幾週前的新聞稿中看到的消息，我們宣布——我們已將 Media Composer 的學生計劃——我在這裡指的是 Media Composer，轉變為一個免費的學生計劃，任何學生或教師都可以供他們個人使用，不一定是供——機構使用，但我們也有一個圍繞機構的計劃。我們推出了一項免費的學生項目，並獲得了熱烈的評價。而整個目標其實是快速擴大針對剛從學校畢業的人員的管道，讓他們了解我們的工具，以便他們能夠被企業客戶聘用。這實際上發揮了我們企業客戶市場的作用，不僅是大型企業，還包括中小型企業。

On the music or yes, the music side, audio side, Pro Tools and Sibelius have freemium products. Sibelius has First and Pro Tools has what we call Intro. The new Intro product from Pro Tools is the new product. This is where we -- when we re-tiered the whole Pro Tools product range back in spring -- summer of last year.

在音樂方面，或在音樂方面、音訊方面，Pro Tools 和 Sibelius 都有免費加值產品。 Sibelius 有 First，而 Pro Tools 有我們所說的 Intro。 Pro Tools 的新 Intro 產品是新產品。這就是我們在去年春夏對整個 Pro Tools 產品系列進行重新分級的時候。

April last year.

去年四月。

April last year, about a year ago, we brought the Intro product in last summer. I think last summer is when it delivered. And that product has so far the downloads we're getting and the conversions we're getting from that product have been very, very successful.

去年四月，大約一年前，我們在去年夏天推出了 Intro 產品。我認為它是去年夏天交付的。到目前為止，該產品的下載量和轉換率都非常非常成功。

I will say this, Intro is also part of our strategy around music creation. So this is a lot of the groundwork you're seeing from us, the Intro product, the artist price points, all the new PlayCell, GrooveCell, SynthCell, the Sonic Drop program, all of the work that we're doing, even some of the features and functions we've been putting in Pro Tools is all laying the groundwork for what is coming in the second half with our new, let's say, innovation around music.

我想說的是，Intro 也是我們音樂創作策略的一部分。所以，您從我們這裡看到的就是很多基礎工作，Intro 產品、藝術家價格點、所有新的 PlayCell、GrooveCell、SynthCell、Sonic Drop 程序，我們正在做的所有工作，甚至我們在 Pro Tools 中添加的一些特性和功能，都為我們下半年的新產品（可以說是圍繞音樂的創新）奠定了基礎。

So -- but we like what we see in the conversion. In the past, Pro Tools First has been a great performer for us. We think Pro Tools Intro could end up to be an even more important acquisition tool for us on that end. And then Sibelius continues to, I think, perform well in that regard.

所以 — — 但我們喜歡所看到的轉換。在過去，Pro Tools First 為我們提供了出色的表現。我們認為 Pro Tools Intro 最終可能會成為我們更重要的取得工具。我認為，西貝流士在這方面繼續表現出色。

Yes. Thanks, Jack. And our final question is from Nehal Chokshi at Northland. Go ahead, Nehal.

是的。謝謝，傑克。我們的最後一個問題來自 Northland 的 Nehal Chokshi。繼續吧，Nehal。

Can you hear me?

你聽得到我嗎？

Yes, we can.

是的，我們可以。

Yes.

是的。

All right. So 20% year-over-year bookings growth, that's a really strong number, especially given the macro. How does that compare to the year-ago period?

好的。因此，預訂量年增 20%，這是一個非常強勁的數字，尤其是考慮到宏觀因素。與去年同期相比如何？

I don't think I've got the number right in front of us. You mean the bookings growth in Q1 last year versus bookings growth this year?

我認為我沒有得到我們面前的正確號碼。您指的是去年第一季的預訂量成長與今年的預訂量成長相比嗎？

Yes. I just want to make it's not off of an easy comp basically.

是的。我只是想讓它從根本上不再是一場簡單的較量。

I don't think it's off of an easy comp. It would not be that, but I don't have the precise number in front of us. We can get that to you, Nehal.

我不認為這是一場簡單的較量。不會是那樣，但是我沒有確切的數字。我們可以把它給你，內哈爾。

Okay. Great. And what were your expectations on that bookings growth at the beginning of this quarter?

好的。偉大的。您對本季初的預訂量成長有何預期？

Well, I think my expectations and the forecast expectation we had was to have, let's say, low to mid-double-digit growth. It definitely outperformed our expectations on that regard. It was a bit better.

嗯，我認為我的預期和我們的預測是實現低至中兩位數的成長。在這方面它確實超出了我們的預期。稍微好一點了。

And what was the driver of that outperformance then?

那麼，是什麼推動了這種優異的表現呢？

Again, back to -- I'll just back to what I said earlier. It really, I mean there was different areas, obviously subscription generated because there's always bookings with subscription, but it was really subscription bookings, and it was a lot of international business driven -- both international and domestic business driven through our strategic partners that are part of our SPA program.

再說一次——我只是回到我之前說過的內容。確實，我的意思是有不同的領域，顯然是訂閱產生的，因為訂閱總是有預訂，但真的是訂閱預訂，並且很多國際業務驅動 - 通過我們的戰略合作夥伴推動的國際和國內業務，這些戰略合作夥伴是我們 SPA 計劃的一部分。

So our direct business did well, but a lot of that growth was driven from our strategic channel partners and from our subscription business overall.

因此，我們的直接業務表現良好，但很大一部分成長來自於我們的策略通路合作夥伴和整體訂閱業務。

So with the strategic channel partners, those subscription bookings, what type of duration is that typically?

那麼對於策略通路夥伴來說，這些訂閱預訂的持續時間通常是多長呢？

Go ahead, Ken.

繼續吧，肯。

So it's typically 3 years will be the sweet spot for an enterprise subscription, and we're doing 1 year or more on the creative side.

因此，通常 3 年是企業訂閱的最佳期限，而我們在創意方面的訂閱期限為 1 年或更長時間。

Okay. And so what I'm trying to get into here is our total incremental ARR. That was up only $2 million versus $6 million a year go. And it seems like the driver of that lower incremental ARR is subscription. So I'm just trying to reconcile this strong subscription bookings with what appears to be a weak incremental subscription ARR. Can you help me bridge that?

好的。我在這裡想要講的是我們的總增量 ARR。與去年的 600 萬美元相比，這一數字僅增加了 200 萬美元。看起來，導致 ARR 增量較低的原因是訂閱服務。所以我只是試著將強勁的訂閱預訂量與看似疲軟的增量訂閱 ARR 相協調。你能幫我解決這個問題嗎？

Well, I think when I look at the ARR, it was the maintenance ARR that was more of a challenge in Q1. The subscription ARR was over 30% growth. And it was the maintenance ARR that was weaker. And when we looked at it, when you think about the components of it, the audio hardware challenges that didn't drag maintenance was a driver. So I think that's really where the challenge is. The subscription ARR actually performed well.

嗯，我認為當我查看 ARR 時，維護 ARR 在第一季面臨的挑戰更大。訂閱ARR成長超過30％。維護 ARR 較弱。當我們查看它並考慮它的組成部分時，我們發現，不會拖延維護的音訊硬體挑戰是一個驅動因素。所以我認為這才是真正的挑戰。訂閱 ARR 確實表現良好。

Got it, okay. I guess you typically look at the year-over-year growth as opposed to the absolute dollar Q-o-Q ARR growth as your key performance indicator?

知道了，好的。我想您通常會將同比成長率而不是絕對美元環比 ARR 成長率作為您的關鍵績效指標？

Okay. So I look at ARR growth and year-over-year subscription growth and ARR growth is what we think is the best indicator for the health of the business, and that was over 30% and we expect that to be similar...

好的。因此，我關注 ARR 成長和同比訂閱成長，我們認為 ARR 成長是業務健康狀況的最佳指標，目前這一成長已超過 30%，我們預計也會類似...

On a year-over-year.

與去年同期相比。

Yes, on a year-over-year basis. We expect that to be similar in Q2 per my comments. We do track sequential -- we track it sequentially as well, but I'm just giving you the year-on-year comparison.

是的，與去年同期相比。根據我的評論，我們預計第二季的情況會類似。我們確實按順序進行跟踪 - 我們也是按順序進行跟踪，但我只是給你提供同比的比較。

And I think if I can add, Nehal, just to make sure -- I agree with Ken. I mean subscription ARR was performed very, very well. So it's got nothing to do with subscription growth profile.

我想如果我可以補充一下，Nehal，為了確保萬無一失——我同意 Ken 的觀點。我的意思是訂閱 ARR 的表現非常非常好。所以這與訂閱成長情況無關。

Don't forget, too, that there is a timing issue as we're converting people from maintenance to subscription, you got to be careful trying to do precise quarter-to-quarter comparisons because there is timing of when people come off maintenance and when they go on subscription. So I would be a little careful on how that flows into that. That's why we got to look at the more broad ARR metric.

同樣不要忘記，在我們將人們從維護轉換為訂閱時存在時間問題，您必須小心進行精確的季度間比較，因為人們何時結束維護以及何時開始訂閱是有時間限制的。因此我會小心謹慎地觀察這一切是如何發生的。這就是為什麼我們要關注更廣泛的 ARR 指標。

Okay. And if I might, just one other question since I guess I'm the last person here anyhow. Any thoughts on the impact of the writer strike. Is it a, do you think it's going to prove to be a long, long duration? And if it is, then what is that potential impact in terms of productions?

好的。如果可以的話，我只想問最後一個問題，因為我想我是這裡最後一個人了。對於作家罷工的影響您有什麼看法？您認為這會持續很長很長的時間嗎？如果是的話，那麼對於生產而言，潛在的影響是什麼？

Good question. Look, I'm someone who -- I wasn't in this role, but I was a leader in this industry back in 2007, 2008. So I did live through that previous writer strike, which was I think 100 days back then. I'm not going to predict -- I don't have a crystal ball, and I don't want to predict the duration of the writer strike. Hopefully, it's shorter than longer.

好問題。瞧，我是一個——我沒有擔任這個職位，但我在 2007 年、2008 年是這個行業的領導者。我不會預測——我沒有水晶球，而且我也不想預測作家罷工將持續多長時間。希望它短於長。

I think what I can say from experience in watching this happen before, it can cause a near-term headwind as people start to delay purchases or upgrades or -- it's interesting, we, I saw some people back in the previous strike do all their upgrades during the strike because they had downtime to do it. And other people pushed off their purchases because they wanted to defer cash investments or whatever in that time.

從我以前觀察過這種情況的經驗來看，這可能會在短期內造成不利影響，因為人們會開始推遲購買或升級——有趣的是，我看到在上次罷工中有些人在罷工期間完成了所有升級，因為他們有停機時間來完成升級。而其他人則推遲購買，因為他們想推遲現金投資或其他任何事情。

I will say that what I saw then and what we expect to see now is if there is any deferrals, they will come back in a year because I don't expect this to be a year long strike. I would heavily doubt that's what's going to happen. Again, I don't want to predict, but I don't think it's going to be that kind of a period. But I think whatever we see in any deferrals, et cetera, they will return in the year because the needs -- the capacity needs are still out there in the market. They just may be some deferral. It's part of the reason that, and the supply chain audio headwinds is the reason we're taking a little more cautious stance on Q2.

我想說的是，我當時看到的以及我們現在預計看到的是，如果有任何延期，他們會在一年後回來，因為我不認為這是一場持續一年的罷工。我非常懷疑這是否會發生。再說一次，我不想預測，但我不認為這會是那樣的一段時間。但我認為，無論我們看到什麼樣的延期等等，它們都會在今年恢復，因為市場仍然存在產能需求。他們可能只是有所推遲。這是部分原因，供應鏈音頻逆風也是我們對第二季採取更謹慎立場的原因。

How long does it take from a script being written to it impacting post production needs where you guys are really playing here?

從寫完劇本到影響後製需要多長時間？

That's, Nehal, that depends on the type of programming. It can impact a nightly late night show in 1 day. It can impact a streaming show in a few weeks to a couple of months. It depends on the type of production, the production schedule, how many scripts are already -- they've already got in their pocket. It's -- that's not -- I don't think there is a precise description of that. It's anywhere from days to weeks usually, I would say, roughly.

那是，Nehal，這取決於程式設計的類型。它可以在一天之內影響一檔夜間深夜秀。它可能會在幾週到幾個月內對串流媒體節目產生影響。這取決於製作類型、製作計劃，以及他們已經拿到了多少劇本。這 — — 那不是 — — 我認為對此沒有準確的描述。通常我會說，大概要幾天到幾週的時間。

Just wanted to come back to you on your bookings question. So first, bookings, as Jeff pointed out, was up 20%.

我只是想再次詢問您有關預訂的問題。首先，正如傑夫指出的那樣，預訂量增加了 20%。

In terms of Q1 we had $15 million of year-over-year bookings growth versus the prior Q1. And of that $15 million of growth, $11 million of it is in the subscription business. So I hope -- I just want to give you that commentary while you're on the call.

就第一季而言，與上一季相比，我們的預訂量年增了 1500 萬美元。在這 1500 萬美元的成長中，有 1,100 萬美元來自訂閱業務。所以我希望——我只是想在您通話時給您上述評論。

Yes, that's awesome. That's very helpful. So that fits very nicely with the $8 million Q-on-Q increase in subscription ARR then?

是的，太棒了。這非常有幫助。那麼這與訂閱 ARR 環比增長 800 萬美元非常吻合嗎？

Correct. Thanks, Nehal.

正確的。謝謝，Nehal。

Thanks, Nehal.

謝謝，Nehal。

All right. So that concludes the Q&A session. We want to thank you again for your participation tonight, and all your questions. Have a great evening. Thank you. You may disconnect.

好的。問答環節到此結束。我們想再次感謝您今晚的參與和提出的所有問題。祝您有個愉快的夜晚。謝謝。您可以斷開連線。