Boxlight Corp (BOXL) 2023 Q3 法說會逐字稿

Thank you, and welcome to the Boxlight third-quarter 2023 earnings conference call. By now, everyone should have access to the press release issued this afternoon. This call is being webcast and is available for replay. The remarks today will include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about future results of operations, business strategies and plans, customer relationships, market trends and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your questions.

謝謝，歡迎參加 Boxlight 2023 年第三季財報電話會議。到目前為止，每個人都應該可以看到今天下午發布的新聞稿。該電話會議正在網路直播並可供重播。今天的言論將包括證券法意義上的前瞻性陳述，包括有關未來營運績效、業務策略和計劃、客戶關係、市場趨勢和潛在成長機會的前瞻性陳述。此外，管理階層可能會針對您的問題做出額外的前瞻性陳述。

Forward-looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward-looking statements. A detailed discussion of such risks and uncertainties are contained in the company's most recent Form 10-K, Form 10-Q and other reports filed with the SEC. The company undertakes no obligation to update any forward-looking statements.

前瞻性陳述是基於管理階層目前的知識和預期，並受到某些風險和不確定性的影響，可能導致實際結果與前瞻性陳述有重大差異。對此類風險和不確定性的詳細討論包含在公司最近向 SEC 提交的 10-K 表、10-Q 表和其他報告中。該公司不承擔更新任何前瞻性陳述的義務。

On this call, management will refer to non-GAAP measures that when used in combination with GAAP results, provide additional analytical tools to understand the company's operations. The company has provided reconciliations to the most directly comparable GAAP financial measures in the earnings press release, which will be posted on the Investor Relations section of the company's website at Boxlight.com. And with that, I'll hand the call over to Boxlight's Chairman and Chief Executive Officer, Michael Pope.

在這次電話會議上，管理階層將參考非公認會計準則衡量標準，這些衡量標準與公認會計準則結果結合使用時，可以提供額外的分析工具來了解公司的營運狀況。該公司在收益新聞稿中提供了與最直接可比較的 GAAP 財務指標的調整表，該新聞稿將發佈在該公司網站 Boxlight.com 的投資者關係部分。接下來，我會將電話轉交給 Boxlight 董事長兼執行長 Michael Pope。

Hello, everyone and thank you for joining our Q3 earnings call. Following my remarks you will hear from Mark Starkey; our President; and Greg Wiggins, our Chief Financial Officer. Greg is joining from our corporate office in Atlanta, Georgia. Mark and I are joining from Singapore, where we're attending the largest education conference and exhibition in Asia. As part of our company's growth strategy, we're evaluating geographic expansion in the Asia Pacific region particularly in Indonesia, Singapore, Taiwan, Thailand, the Philippines, and Vietnam.

大家好，感謝您參加我們的第三季財報電話會議。在我的發言之後，您將聽到馬克·斯塔基的演講；我們的總統；以及我們的財務長 Greg Wiggins。格雷格 (Greg) 將從我們位於喬治亞州亞特蘭大的公司辦公室加入。馬克和我從新加坡加入，我們正在新加坡參加亞洲最大的教育會議和展覽。作為我們公司成長策略的一部分，我們正在評估亞太地區的地理擴張，特別是印尼、新加坡、台灣、泰國、菲律賓和越南。

We're meeting with several distribution and reseller partner at the conference this week. For the third-quarter, we reported $50 million in revenue, $18 million in gross profit, and $4.9 million in adjusted EBITDA. Revenue declined by 28% for the quarter and by 23% for the nine-month ended, September 30, over the same period last year. The revenue decline was largely the result of softer industry demand.

我們將在本週的會議上與幾家分銷和經銷商合作夥伴會面。第三季度，我們的營收為 5,000 萬美元，毛利為 1,800 萬美元，調整後 EBITDA 為 490 萬美元。與去年同期相比，本季營收下降了 28%，截至 9 月 30 日的前九個月營收下降了 23%。收入下降主要是行業需求疲軟的結果。

However we also didn't cash our market shares anticipated specifically in key geographic markets and with certain product categories. We did maintain a strong gross profit margin reporting 36% for the quarter and 37% for the nine-months ended September 30. Both an improvement over 31% and 28% for the respective periods last year. And planning for the next several quarters, we have committed to be more financially conservative by reducing both our growth expectations and operating expense budget to ensure improved profitability.

然而，我們也沒有兌現我們在關鍵地理市場和某些產品類別中的預期市場份額。我們確實維持了強勁的毛利率，本季為 36%，截至 9 月 30 日的前九個月為 37%。兩者均比去年同期提高了 31% 和 28%。在規劃未來幾季時，我們承諾透過降低成長預期和營運費用預算來在財務上更加保守，以確保提高獲利能力。

For the fourth-quarter, we expect revenue and adjusted EBITDA to be in line with Q4 last year. For the full year 2024, we anticipate modest revenue growth driven by investments in one, our enterprise vertical, two certain geographic regions, and three, our expanded product suite. To drive improved profit margins, we will be reducing certain G&A expenses that we expect will have minimal impact on short term growth.

對於第四季度，我們預計營收和調整後 EBITDA 將與去年第四季持平。對於 2024 年全年，我們預計收入將出現適度增長，這主要得益於對一個（我們的企業垂直領域、兩個特定地理區域）和三個（我們擴展的產品套件）的投資。為了提高利潤率，我們將減少某些一般管理費用，我們預期這些費用對短期成長的影響微乎其微。

We ended the quarter with a strong bounce.

我們以強勁的反彈結束了本季。

Please remain on the line while we reconnect connect Michael's line. Thank you for holding and please remain on the line, while we reconnect the speaker line.

當我們重新連接邁克爾的線路時，請保持在線。感謝您的耐心等待，請保持通話狀態，我們將重新連接揚聲器線路。

Thank you for holding and please remain on the line while we reconnect the speaker line.

感謝您的耐心等待，在我們重新連接揚聲器線路時請保持通話。

Hello, sorry about the technical difficulties. I believe we're back now.

您好，很抱歉遇到技術困難。我相信我們現在回來了。

Great. So I'm going to jump back a little bit in our talk script. So I believe we talked about the fourth quarter expectations. Great did we talking about fourth-quarter expectations.

偉大的。所以我要在我們的談話腳本中跳回來一點。所以我相信我們討論了第四季的預期。我們談論第四季的預期真是太棒了。

Okay. So for the fourth quarter, we expect revenue and adjusted EBITDA to be in line with Q4 last year. And then for the full year 2024, we anticipate modest revenue growth driven by investments in; one, our enterprise vertical, two certain geographic regions, and three, our expanded product suite. To drive improved profit margins. We will be reducing certain G&A expenses that we expect will have minimal impact on short term growth.

好的。因此，我們預計第四季度的營收和調整後的 EBITDA 將與去年第四季保持一致。然後，對於 2024 年全年，我們預計收入將在投資的推動下適度增長；一是我們的企業垂直領域，二是某些地理區域，三是我們擴展的產品套件。推動利潤率提高。我們將減少某些一般管理費用，我們預期這些費用對短期成長的影響微乎其微。

We ended the quarter with a strong balance sheet, including $61 million in working capital, $18 million in cash and $44 million in inventory. Our debt balance at quarter end was $48 million. Subsequent to quarter end, we paid down our debt facility by an additional $4 million, resulting in a current debt balance of approximately $44 million.

本季結束時，我們的資產負債表強勁，其中包括 6,100 萬美元的營運資金、1,800 萬美元的現金和 4,400 萬美元的庫存。季度末我們的債務餘額為 4800 萬美元。季度末後，我們額外償還了 400 萬美元的債務融資，導致當前債務餘額約為 4,400 萬美元。

Over the last 12 months, including the $4 million payment we have reduced our debt facility by $15 million. In the near term, we plan to refinance our debt with a lower cost facility, which will provide more favorable loan covenants and result in a substantial interest expense savings.

在過去 12 個月中，包括 400 萬美元的付款在內，我們已將債務融資減少了 1500 萬美元。短期內，我們計劃以更低的成本為我們的債務再融資，這將提供更優惠的貸款契約，並節省大量利息費用。

During the third quarter, we officially introduced our Google EDLA interactive panel, Clevertouch IMPACT Lux and Mimio ProG these new additions to our interactive panel lineup are the first to feature direct access to the Google Play Store. They are equipped with 50 touch points, cutting edge, micro antibacterial glass and integrated NFC for quick user profile loading.

在第三季度，我們正式推出了 Google EDLA 互動式面板、Clevertouch IMPACT Lux 和 Mimio ProG，這些是我們互動式面板系列中的新增功能，是第一個能夠直接存取 Google Play 商店的功能。它們配備 50 個觸控點、尖端微型抗菌玻璃和整合式 NFC，可快速載入使用者設定檔。

Every Google EDLA certified IMPACT Lux and Mimio ProG also include accelerated Level 1 and Level 2 Google certified training. We also launched our new range of Clevertouch commercial displays powered by our award-winning digital signage platform CleverLive.

每個 Google EDLA 認證的 IMPACT Lux 和 Mimio ProG 還包括加速的 1 級和 2 級 Google 認證培訓。我們也推出了由我們屢獲殊榮的數位看板平台 CleverLive 提供支援的全新 Clevertouch 商業顯示器系列。

We're proud to offer a complete digital science portfolio that supports all types of screen deployment requirements for customer environments in both our education and enterprise verticals. Our collaborative CM Series display range includes high bright panels, totems, 16/7 and 24/7 displays, menu boards and LED video walls.

我們很自豪能夠提供完整的數位科學產品組合，支援教育和企業垂直領域客戶環境的所有類型的螢幕部署要求。我們的協作 CM 系列顯示器系列包括高亮面板、圖騰、16/7 和 24/7 顯示器、選單板和 LED 視訊牆。

During the third quarter, we were honored to win nine best of back-to-school awards from Tech & Learning. The awarded products their hardware, software, curriculum and more categorized by great levels. We earned awards in both primary and secondary categories for our, MimioWall LED displays, MimioDS Digital Signage series, Mimio MyBot Recruit, Clevertouch IMPACT Lux interactive displays and FrontRow Teacher Action! Mic powered by Elevate Wireles Technology.

在第三季度，我們很榮幸獲得了 Tech & Learning 頒發的九項最佳返校獎。獲獎產品包括硬體、軟體、課程等，依等級分類。我們的 MimioWall LED 顯示器、MimioDS 數位看板系列、Mimio MyBot Recruit、Clevertouch IMPACT Lux 互動式顯示器和 FrontRow Teacher Action 贏得了小學和中學類別的獎項！麥克風由 Elevate Wireles 技術提供支援。

This past Friday, CleverLive was also selected as the Digital Signage Technology of the year by the renowned AV awards, a highly respected industry recognition judged by experts from end user organizations, consultants and industry leaders.

上週五，CleverLive 還被著名的 AV 獎項評選為年度數位看板技術，這是一項由最終用戶組織、顧問和行業領導者的專家評選的備受推崇的行業認可。

This Victory solidifies our position as a leading player at the Digital Signage market. We published multiple success stories in Q3, including our success of teacher, Daniel Thompson at Ron Clark Academy in Atlanta, Georgia, inspiring student engagement with our lab disk, all in one science lab and Cameron Haffner, a STEM teacher at Liberty Local School District in Youngstown, OH, who is enriched and learning with our award winning MyStemKits, STEM Curriculum.

這場勝利鞏固了我們作為數位看板市場領導者的地位。我們在第三季發布了多個成功案例，包括喬治亞州亞特蘭大羅恩克拉克學院的Daniel Thompson 老師的成功，激勵學生與我們的實驗室磁碟的互動，所有這些都在一個科學實驗室中進行，以及Liberty Local School District 的STEM 老師Cameron Haffner 的成功位於俄亥俄州揚斯敦，透過我們屢獲殊榮的 MyStemKits STEM 課程不斷豐富和學習。

Clevertouch of success stories showcased comprehensive solutions for Lynx Whiteboard software and CleverLive that enhanced interactive learning, transforming classrooms into engaging hubs of education. We had two major rollouts with worthy down part of the defense services in the UK.

Clevertouch 的成功案例展示了 Lynx Whiteboard 軟體和 CleverLive 的全面解決方案，增強了互動式學習，將教室轉變為引人入勝的教育中心。我們進行了兩次重大部署，削減了英國部分國防服務。

The initial rollout was for 75 Clevertouch Impact LUX display with somecards for collaboration and ad hoc signings. The second phase enhanced campus communication via a cloud-based digital signing system using Clevertouch CM Series displays and CleverLive for easy content management. These examples highlight Boxlight commitment to innovative and effective solutions and powering all uses.

最初推出的是 75 Clevertouch Impact LUX 顯示屏，其中包含一些用於協作和臨時簽名的卡片。第二階段透過使用 Clevertouch CM 系列顯示器和 CleverLive 的基於雲端的數位簽章系統增強了校園通信，以實現輕鬆的內容管理。這些例子凸顯了 Boxlight 對創新、有效的解決方案和為所有用途提供支援的承諾。

Lastly, I'd like to thank our shareholders, employees, reseller partners and customers for your continued support. With our dedicated employees and industry-best solutions. We expect a return to revenue growth in 2024 and with stronger profit margins.

最後，我要感謝我們的股東、員工、經銷商合作夥伴和客戶的持續支持。憑藉我們敬業的員工和業界最佳的解決方案。我們預計 2024 年營收將恢復成長，利潤率將更高。

With that, I will now turn the time over to our President, Mark Starkey.

現在，我將把時間交給我們的總統馬克·斯塔基。

Thank you, Michael, and good morning, good afternoon and good evening to everyone on the call. Q3 was a tougher quarter than we had expected, and we continue to face challenging market conditions in both the US and the AMEA. Despite this, we managed to book $48.5 million of orders in the quarter, which represents an 11% increase from Q3 last year.

謝謝邁克爾，祝所有參加電話會議的人早安、下午好、晚上好。第三季的情況比我們預期的更加艱難，我們繼續面臨美國和 AMEA 地區充滿挑戰的市場狀況。儘管如此，我們在本季還是成功預訂了 4,850 萬美元的訂單，比去年第三季成長了 11%。

The return to growth order intake is key because it is an early indicator of revenue growth and our expectations are that the business should start to return to moderate rather than revenue growth in 2024. The US accounted for 48% of our total order intake during Q3 with 51% coming from AMEA and 1% coming from the rest of the world.

訂單量恢復成長是關鍵，因為它是營收成長的早期指標，我們的預期是業務應在 2024 年開始恢復溫和成長，而不是營收成長。第三季美國訂單量占我們總訂單量的 48%其中51% 來自AMEA，1% 來自世界其他地區。

Our market share for interactive flat panels increased marginally in AMEA in Q3 from 6.6% to 6.7%. But decrease in US 8.4% to 6.3% due in the main to some large one-off deals with other vendors. On a year-to-date basis, our market share in the US declined only marginally from 6.9%, 6.2%. And in AMEA, it is broadly the same at 6% versus 6.1% last year.

第三季度，我們在 AMEA 的互動式平板顯示器市佔率從 6.6% 略有上升至 6.7%。但美國市場下降了 8.4% 至 6.3%，這主要是由於與其他供應商進行了一些大型一次性交易。年初至今，我們在美國的市佔率僅從 6.9%、6.2% 略有下降。在 AMEA，這一比例與去年的 6.1% 基本持平，均為 6%。

One of the main things that we are focused on is maintaining higher gross profit margins, and we have deliberately avoided some very low margin tender business, especially in Southern Europe, which is part of the reason for the marginal decline in market share.

我們關注的主要事情之一是保持較高的毛利率，我們刻意避免了一些利潤率很低的招標業務，特別是在南歐，這是市場份額邊際下降的部分原因。

In other markets, we have made some strong gains such as Australia, where we have increased our market share from 14.9% to 18.8% over the past year. In Finland, we grew our market share from 36.9% to 40.1% and in Switzerland, we grew from 14.4% to 19.9% compared with last year according to data from FutureSource.

在其他市場，我們取得了一些強勁的成長，例如澳大利亞，去年我們的市佔率從 14.9% 增加到 18.8%。根據 FutureSource 的數據，與去年相比，我們在芬蘭的市佔率從 36.9% 成長到 40.1%，在瑞士，我們的市佔率從 14.4% 成長到 19.9%。

We have very high market share in some other European countries such as Austria, where we have 36.7%, Ireland, where we have 34.7%, Belgium with 28.1% and Denmark with 22.7%. The most important market in AMEA remains Germany, and this is where we have a large opportunity as our market share is relatively low at 5.2%.

我們在其他一些歐洲國家擁有非常高的市場份額，例如奧地利（36.7%）、愛爾蘭（34.7%）、比利時（28.1%）和丹麥（22.7%）。 AMEA 最重要的市場仍然是德國，這是我們有很大機會的地方，因為我們的市佔率相對較低，為 5.2%。

Over the past 12 months, we have doubled the size of the German sales team and our expectation is that we can achieve double digit market share within the next two years. Some of our key orders in the US included $7 million in ELB. Currently our fastest growing partner, $5 million from Bluum, $2.6 million from Camera Mundi based in Puerto Rico and $1.2 million of GDI, a US distribution partner.

在過去的 12 個月裡，我們將德國銷售團隊的規模擴大了一倍，我們的預期是在未來兩年內能夠實現兩位數的市場份額。我們在美國的一些重要訂單包括價值 700 萬美元的 ELB。目前，我們成長最快的合作夥伴包括來自 Bluum 的 500 萬美元、來自波多黎各的 Camera Mundi 的 260 萬美元以及美國分銷合作夥伴 GDI 的 120 萬美元。

Overseas, we have had excellent orders, including $2.3 million of DNS(UK), $1.2 million from CANCOM (Germany) and $1 million in ShowMax international in Spain to name a few. Our new generation of Google IMPACT Lux Clevertouch screen, started shipping during Q3 and customer feedback has been excellent. Our Google Clevertouch screens will start shipping during Q4 in the US. We believe these fully integrated Google screens, will proved very popular with school districts.

在海外，我們獲得了很好的訂單，包括價值 230 萬美元的 DNS（英國）訂單、來自 CANCOM（德國）的 120 萬美元訂單以及價值 100 萬美元的西班牙 ShowMax 國際訂單等。我們的新一代 Google IMPACT Lux Clever 觸控螢幕已於第三季開始出貨，客戶回饋非常好。我們的 Google Clevertouch 螢幕將於第四季開始在美國出貨。我們相信這些完全整合的Google螢幕將受到學區的歡迎。

In US we have some fantastic wins, including over 3,000 panels and stands shipped to El Paso School District in Texas by our partner ELB. We also continue to supply more than $1.2 million of panels to Las Cruces, New Mexico, again, by ELB. We had some great wins in Michigan with over $1 million of screens and audio solutions delivered by our partner DAT.

在美國，我們取得了一些出色的勝利，包括我們的合作夥伴 ELB 向德克薩斯州埃爾帕索學區運送了 3,000 多個面板和支架。我們也繼續透過 ELB 向新墨西哥州拉斯克魯塞斯供應價值超過 120 萬美元的面板。我們在密西根州取得了一些巨大的勝利，我們的合作夥伴 DAT 提供了價值超過 100 萬美元的螢幕和音訊解決方案。

In Dayton, Ohio, we won a very large order to supply our FrontRow audio solutions across district worth over $1.5 billion by our partner, Bluum. In the UK, we supplied a first shipment of 1,000 screens to Wealth schools by our partner IDMS worth approximately $1.7 million. We also had some great wins in Germany, shipping 600 screens under the kit tender by our partner CANCOM worth approximately $1.2 million. We've also won the disorder tender of 400 screens, which shipped in the quarter worth approximately $800 K.

在俄亥俄州代頓，我們贏得了非常大的訂單，由我們的合作夥伴 Bluum 提供跨地區的 FrontRow 音訊解決方案，價值超過 15 億美元。在英國，我們透過合作夥伴 IDMS 向財富學校提供了第一批 1,000 個螢幕，價值約 170 萬美元。我們還在德國取得了一些重大勝利，在我們的合作夥伴 CANCOM 的套件招標下運送了 600 個螢幕，價值約 120 萬美元。我們還贏得了 400 個螢幕的無序招標，本季發貨價值約為 80 萬美元。

In summary, despite Q3 revenues being down, we booked the first increase in order intake in five quarters, and we believe this marks a turning point in the cycle with a steady return to revenue and EBITDA growth.

總而言之，儘管第三季營收下降，但我們的訂單量在五個季度中首次增加，我們相信這標誌著營收和 EBITDA 成長穩定回歸的週期轉折點。

With that, I will now turn the call over to our CFO, Greg Wiggins.

現在，我將把電話轉給我們的財務長格雷格·威金斯。

Thanks, Mark, and good afternoon, everyone. I will now review our third-quarter results. Revenues for the three months ended September 30, 2023 were $49.7 million as compared to $68.7 million for the three months ended September 30, 2022. Resulting in a 27.7% decrease and was due to lower sales volumes across all markets.

謝謝，馬克，大家下午好。我現在將回顧我們的第三季業績。截至 2023 年 9 月 30 日止三個月的收入為 4,970 萬美元，而截至 2022 年 9 月 30 日止三個月為 6,870 萬美元。由於所有市場的銷量下降，收入下降了 27.7%。

Gross profit for the three-months ended September 30, 2023 was $18 million as compared to $21 million for the three months ended September 30, 2022. Gross profit margin for Q3 2023 was 36.3%, which is an increase of 570 basis points over the comparable 2022 quarter.

截至2023 年9 月30 日止三個月的毛利為1,800 萬美元，而截至2022 年9 月30 日止三個月的毛利為2,100 萬美元。2023 年第三季的毛利率為36.3% ，較2023 年第三季成長570 個基點。與 2022 年季度相比。

Gross profit margin adjusted for the net effect of acquisition related purchase accounting was 37.2% as compared to 31.6% as adjusted for the three months ended September 30, 2022. The improvement in gross profit margin in Q3 2023 compared to Q3 2022 is primarily due to lower manufacturing costs and continued reductions in freight costs over the prior year period.

根據收購相關採購核算的淨影響調整後的毛利率為37.2%，而截至2022 年9 月30 日止三個月調整後的毛利率為31.6%。與2022 年第三季相比，2023 年第第三季毛利率的改善主要是由於與去年同期相比，製造成本下降，貨運成本持續下降。

Total operating expenses for Q3 2023 were $29.6 million and included a goodwill impairment charge of approximately $13.2 million, due primarily to lower sales volume stemming from the industry downturn and a change in the company's reporting segments in 2023, which resulted in a change in the company's reporting units.

2023 年第三季的總營運費用為2,960 萬美元，其中包括約1,320 萬美元的商譽減損費用，這主要是由於行業低迷導致銷量下降以及2023 年公司報告分部的變化，導致公司的財務報表發生變化。報告單位。

Other expense for the three months ended September 30, 2023 was a net expense of $3.1 million, as compared to net expense of $2.8 million for the three-months ended September 30, 2022. The increase in expense was primarily due to an increase in interest expense of approximately $400,000, partially offset by gains recognized from the change in fair value of derivative liabilities of approximately $200,000 in Q3 2023.

截至2023年9月30日止三個月的其他費用為淨費用310萬美元，而截至2022年9月30日止三個月的淨費用為280萬美元。費用增加主要是由於利息增加費用約為400,000 美元，部分被2023 年第三季衍生負債公允價值變動確認的收益約200,000 美元所抵銷。

The company reported a net loss of $17.8 million for the three months ended September 30, 2023 as compared to net income of $3.1 million for the three months ended September 30, 2022. Net loss attributable to common shareholders was approximately $18.1 million for Q3 2023 compared with net income attributable to common shareholders of $2.8 million for Q3 2022. After deducting fixed dividends to Series B preferred shareholders of $317,000 in both 2023 and 2022.

該公司報告稱，截至2023 年9 月30 日止三個月的淨虧損為1,780 萬美元，而截至2022 年9 月30 日止三個月的淨利潤為310 萬美元。2023 年第三季歸屬於普通股股東的淨虧損約為1,810 萬美元。2022 年第三季歸屬於普通股股東的淨利為 280 萬美元。扣除 2023 年及 2022 年 B 輪優先股股東的固定股利 317,000 美元。

Total comprehensive loss for the three months ended September 30, 2023 was $20.6 million compared to total comprehensive loss of $1.9 million for the three months ended September 30, 2022, reflecting the effect of foreign currency translation adjustments on consolidation with the net effect in the quarter of approximately $2.9 million loss and $5 million loss for the three months ended September 30, 2023 and 2022, respectively.

截至2023年9月30日止三個月的綜合虧損總額為2,060萬美元，而截至2022年9月30日止三個月的綜合虧損總額為190萬美元，反映了外幣換算調整對合併的影響以及本季的淨影響截至2023年9月30日和2022年9月30日的三個月分別損失約290萬美元和500萬美元。

EPS loss per basic and diluted share was $1.90 for Q3 2023. EPS per basic and diluted share for Q3 2022 was $0.31 and $0.28, respectively. EBITDA loss for the quarter ended September 30, 2023 was $9.4 million, which included the goodwill impairment charge of $13.2 million as compared to $8.5 million EBITDA for the quarter ended September 30, 2022.

2023 年第三季基本每股盈餘和稀釋每股盈餘虧損為 1.90 美元。2022 年第三季基本每股盈餘和稀釋每股盈餘分別為 0.31 美元和 0.28 美元。截至 2023 年 9 月 30 日的季度 EBITDA 虧損為 940 萬美元，其中包括 1,320 萬美元的商譽減損費用，而截至 2022 年 9 月 30 日的季度 EBITDA 虧損為 850 萬美元。

Adjusted EBITDA for Q3 2023 was $4.9 million as compared to $9.9 million for Q3 2022. Adjustments to Digital Signageinclude stock-based compensation expense, impairment of goodwill, gains losses from the remeasurement of derivative liabilities, gains losses recognized upon the settlement of certain debt instruments and the effects of purchase accounting adjustments in connection with recent acquisitions.

2023 年第三季調整後EBITDA 為490 萬美元，而2022 年第三季為990 萬美元。數位看板的調整包括股票補償費用、商譽減損、重新計量衍生負債產生的收益損失、某些債務工具結算時確認的收益損失以及與最近收購相關的採購會計調整的影響。

EBITDA loss for the nine months ended September 30, 2023 was $3 million as compared to $12.9 million for the nine months ended September 30, 2022. Adjusted EBITDA for Q3 2023 was $13.7 million as compared to $16.3 million for Q3 2022.

截至2023 年9 月30 日止九個月的EBITDA 虧損為300 萬美元，而截至2022 年9 月30 日止九個月的EBITDA 虧損為1,290 萬美元。2023 年第三季調整後EBITDA 為1,370 萬美元，而2022 年第三季為1,630 萬美元。

Turning to the balance sheet, at September 30, 2023, Boxlight had $18.4 million in cash, $61.4 million in working capital, $44.1 million in inventory, $180.3 million in total assets, $44.4 billion in debt, net of debt issuance cost of $3.6 million and $30.6 million in stockholders' equity.

轉向資產負債表，截至2023 年9 月30 日，Boxlight 擁有1,840 萬美元現金、6,140 萬美元營運資金、4,410 萬美元庫存、1.803 億美元總資產、444 億美元債務，扣除360 萬美元的債務發行成本和股東權益 3,060 萬美元。

At September 30, 2023 Boxlight had $9.6 million common shares issued and outstanding and $3.1 million preferred shares issued and outstanding. At September 30, 2023, the company was not in compliance with the senior leverage ratio under its credit agreement. The company's noncompliance as cured by the company paying $4 million principal in November, which would have resulted in the company being in compliance with the senior leverage ratio at September 30, 2023.

截至 2023 年 9 月 30 日，Boxlight 已發行和流通的普通股價值 960 萬美元，已發行和流通的優先股價值 310 萬美元。截至2023年9月30日，該公司未遵守授信協議下的高階槓桿率。該公司在 11 月支付了 400 萬美元本金，解決了該公司的違規問題，這將導致該公司在 2023 年 9 月 30 日遵守高級槓桿率。

The company is actively seeking to refinance this debt with new lenders that the company believes will be on terms more favorable to the company. Following the $4 million principal repayment, the company's debt balance is approximately $44 million, including the $4 million paid in November, since Q3 2022, the company has repaid principal on its credit facility of approximately $15 million.

該公司正在積極尋求與新的貸款機構對該債務進行再融資，該公司相信新貸款機構的條款對該公司更有利。償還400萬美元本金後，該公司的債務餘額約為4,400萬美元，其中包括11月份支付的400萬美元，自2022年第三季以來，該公司已償還其信貸額度的本金約1,500萬美元。

We continue to strategically review our capital structure and use of free cash, including, but not limited to paying down debt, executing on our share repurchase program and finding more attractive financing agreement arrangements to replace our current facilities. We believe the cash flow from operations will continue to support our ongoing operations without the need for additional equity or debt financing.

我們繼續策略性地審查我們的資本結構和自由現金的使用，包括但不限於償還債務、執行我們的股票回購計劃以及尋找更具吸引力的融資協議安排來取代我們現有的設施。我們相信，營運產生的現金流將繼續支持我們的持續運營，而無需額外的股權或債務融資。

With that, we'll open up the call for questions.

至此，我們將開始提問。

Certainly. At this time, we will be conducting a question-and-answer session. (Operator Instructions)

當然。此時，我們將進行問答環節。 （操作員說明）

Brian Kinstlinger, Alliance Global Partners.

Brian Kinstlinger，聯盟全球合作夥伴。

Great. Thanks for taking my questions. Can you help reconcile the stronger orders you were seeing in July through the first few weeks of August and even for the quarter? And you talked about that at the end of the second quarter, sorry, in the second quarter conference call. Can you reconcile that with the lower than expected revenue?

偉大的。感謝您回答我的問題。您能否協助協調 7 月至 8 月前幾週甚至本季看到的強勁訂單？抱歉，您在第二季末的電話會議上談到了這一點。您能否將其與低於預期的收入相協調？

I think we were looking for a lot more than was delivered. Did you see order cancellations that may have made order stronger? Did some of the demand disappeared? Just trying to understand what changed so quickly versus what we said, I think it was mid-August?

我認為我們所尋求的遠遠超出了交付的範圍。您是否看到訂單取消可能會使訂單變得更強？有些需求消失了嗎？只是想了解一下與我們所說的相比，變化如此之快，我想那是八月中旬？

Yes, hi, Brian. Like I think, basically with soft demand, we didn't have any canceled orders. We expected and I think the industry was expecting much stronger demand in Q3, we started to see that they just didn't really take off. And the second half of Q3 was a lot slower than we expected. So, the bottom line is it was just softer demand across the board, both in the US and AMEA during Q3. --

是的，嗨，布萊恩。就像我認為的那樣，基本上由於需求疲軟，我們沒有任何取消的訂單。我們預計並且我認為整個行業預計第三季的需求會更加強勁，但我們開始發現它們並沒有真正起飛。第三季下半年的速度比我們預期的要慢得多。因此，最重要的是，第三季美國和 AMEA 的需求全面疲軟。 --

Yeah, I would like to add. We ended the quarter with an increase in customer orders up 11%, which we expected greater than that. But we did see a nice increase, but not nearly to the extent we thought. And then leading into Q4, I'll just mention you've probably heard that we're guiding really revenue to be flat, adjusted EBITDA to be flat with last year, and that's really as a result of Q3 being a little bit slower than we expected rolling into Q4, but we are still quite optimistic for next year. Looking at our pipeline other indicators, we do believe we'll start to see growth again next year.

是的，我想補充一下。本季末，我們的客戶訂單成長了 11%，高於我們的預期。但我們確實看到了不錯的成長，但沒有達到我們想像的程度。然後進入第四季度，我只想提一下，您可能聽說過，我們正在引導實際收入持平，調整後的 EBITDA 與去年持平，這實際上是因為第三季度比第三季度慢了一點我們預計將進入第四季度，但我們對明年仍然相當樂觀。看看我們的其他指標，我們確實相信明年我們將再次開始看到成長。

I guess with the industry and even Boxlight expecting stronger demand. What are your customers saying they were at a conference now, you're seeing customers is it a lack of budgets? Had they already adopted enough new technology? They're trying to digest in the classroom. What do you think has changed in terms of market dynamics or what are you hearing that's changed?

我想整個產業甚至 Boxlight 都預期需求會更強勁。您的客戶說他們現在正在參加會議，您看到客戶是否缺乏預算？他們是否已經採用了足夠的新技術？他們試圖在課堂上消化。您認為市場動態發生了哪些變化，或是聽到發生了哪些變化？

I think generally, Brian, it is just say either customers just like not maybe as urgent as though I mean, definitely after the pandemic and the stresses on the global supply chains. There was a lot of urgency and a huge amount of orders being placed and maybe some end-users spent a lot of budgets, and now we're looking at big projects, which I would expect in Q3. (technical difficulty)

布萊恩，我認為總的來說，這只是說客戶可能不像我的意思那麼緊急，肯定是在疫情和全球供應鏈面臨壓力之後。有很多緊迫性和大量訂單正在下達，也許一些最終用戶花費了大量預算，現在我們正在考慮大型項目，我預計這會在第三季度出現。 （技術難度）

Now, that would just take a few moments is now happen in Q4 or that's been pushed into the near year. That's kind of what we're seeing. It's not, there's not one big thing, it's just say a general, people are not urgent to place large orders and kind of just slowing down slightly. (technical difficulty)

現在，這只需要一些時間，現在會在第四季度發生，或被推遲到近一年。這就是我們所看到的。不是的，沒有什麼大事，只是說一般情況，人們並不急於下大訂單，只是稍微放慢了速度。 （技術難度）

Now, assuming revenue is flat year-over-year, I get the G&A cuts take some time, but you have much better shipping rates, you've talked about much higher gross margin. If revenue was flattish why wouldn't EBITDA be higher, even marginal rate?

現在，假設收入同比持平，我認為削減一般行政費用需要一些時間，但你的運費要好得多，你已經談到了更高的毛利率。如果營收持平，為什麼 EBITDA 不會更高，甚至邊際利率也更高？

Looking into next year-- .

展望明年——

No, I'm still at the fourth quarter because rates are covered at beginning of the year. I'm just looking at year-over-year in the fourth-quarter, I get the next year is a different story.

不，我仍然在第四季度，因為費率在年初就已涵蓋。我只關注第四季度的同比情況，我認為明年的情況會有所不同。

The G&A gross profit in Q4 last year, there was some 34%, and I think we were running at higher than that in Q3. So it is going to start getting marginally, did start to see gross profit increase at the end of last year. So I think it would be in a marginal differences. (technical difficulty)

去年第四季的G&A毛利約為34%，我認為我們的運行速度高於第三季。因此，它將開始小幅增長，去年年底毛利確實開始增加。所以我認為這將是一個邊際差異。 （技術難度）

Okay. And then on the competitive landscape -- .

好的。然後是競爭格局——。

-- I would like to just give a quick comment, and I think that's really been that for this year for 2023, we started the year with a bit lower gross profit margin in Q2 factory in the year and kind of ramps, -- I guess for the I guess beginning last year, we had we had in Q1 especially stuff, but we also ramped a little bit kind of this year and we have kind of higher gross margin. (technical difficulty)

-- 我想快速發表評論，我認為 2023 年的情況確實如此，我們今年第二季度工廠的毛利率略低，並且有所上升，-- 我我想從去年開始，我們在第一季度就有了特別的東西，但今年我們也有所成長，我們的毛利率更高。 （技術難度）

We guided last quarter, we mentioned we didn't know that we could sustain 37%, 38% type margins that may come down some. So I think an event to be conservative in Q4 going into next year. I don't know that you expect the 36%, 37%, 38% of our gross margin, but we are to be kind of maybe closer to 35% or so something like that. And so if that's the case and we're not going to be real far from for last year or so. (technical difficulty)

我們在上個季度的指導中提到，我們不知道我們能否維持 37%、38% 的利潤率，而且可能會有所下降。因此，我認為明年第四季的事件應該保守。我不知道您期望我們的毛利率為 36%、37%、38%，但我們可能會接近 35% 左右。因此，如果情況確實如此，那麼我們距離去年左右的情況就不會太遠了。 （技術難度）

Yeah, one more questions. The first one is -- the margin for Q4 last year, you see reminder was close to 34%. So as Michale was saying, it was actually ticking upward toward the end of last year. And so while that's held and actually increased for a good portion of the 2023 year, we'll probably see that start to decline just a little bit on. So the pickup from the margin increase when we're looking at Q4 won't necessarily be as drastic, it's not as great. (technical difficulty)

是的，還有一個問題。第一個是－去年第四季的利潤率，你看提醒一下，接近34%。正如 Michale 所說，到去年年底，它實際上正在上升。因此，儘管這一數字在 2023 年的大部分時間裡都保持不變並且實際上有所增加，但我們可能會看到這一數字開始略有下降。因此，當我們考慮到第四季時，利潤率成長的回升不一定會那麼劇烈，也不會那麼大。 （技術難度）

And then gaining market share, you've been gaining market share for several quarters. Has anything changed from competitive perspective, number one? And then in Germany, you're talking about the biggest opportunity to gain share. What do you think makes that market right for market share gains? And I have one last question.

然後獲得市場份額，您已經連續幾個季度獲得市場份額。第一，從競爭的角度來看，有什麼改變嗎？然後在德國，你談論的是獲得份額的最大機會。您認為是什麼讓這個市場適合獲得市場佔有率？我還有最後一個問題。

Maybe, I'll say just a couple of things, market share gain can jump in more specifically. So if you look at this year, year to date, we have not gained kind of across the board at our major markets, US and AMEA, if you look at those blended market share in his portion of contract, we didn't really gain much market share.(technical difficulty)

也許，我只想說幾件事，市場佔有率的成長可以更具體地實現。因此，如果你看看今年、今年迄今為止，我們在我們的主要市場（美國和 AMEA）上並沒有全面獲得收益，如果你看看他的合約部分中的混合市場份額，我們並沒有真正獲得收益市場佔有率高。（技術難度）

So that was a little bit disappointing that didn't happen. This year we were relatively flat with a market that we did in certain geographies, we did have upticks and other ones we were down a little bit, but we're pretty optimistic that can turn next year and that we will start to gain market share. (technical difficulty)

所以這沒有發生有點令人失望。今年，我們在某些​​地區的市場表現相對平穩，確實有所上升，而其他地區則略有下降，但我們非常樂觀，明年會出現轉變，我們將開始獲得市場份額。 （技術難度）

Now when we talk about market share gain to we're only really talking about interactive flat panel displays because that's the market share gain that we subscribe to and we receive we don't see a lot of market data around our other solutions. (technical difficulty)

現在，當我們談論市場份額增益時，我們實際上只是在談論互動式平板顯示器，因為這是我們訂閱並收到的市場份額增益，我們沒有看到有關我們其他解決方案的大量市場數據。 （技術難度）

And but you're speaking to growth in the next year, I'll talk a little bit more broadly and then, Mark, you can talk maybe specifically Germany, other markets. But talking more broader look into next year. The reason that we think we can see some growth is because we've invested in the enterprise vertical, we're going to, we know, we're going to bring in some new business and enterprise. So that's one. (technical difficulty)

但你談論的是明年的成長，我會更廣泛地談論一點，然後，馬克，你可以具體談論德國和其他市場。但要對明年進行更廣泛的展望。我們認為我們可以看到一些成長的原因是因為我們已經投資於企業垂直領域，我們將，我們知道，我們將引入一些新的業務和企業。這就是其中之一。 （技術難度）

Secondly, we invested in certain geographies, you mentioned Germany, which Mark will talk more about. But as an example, the geography where we're going to see some growth geographically based on people investments we've made in those areas. And the third is growth in our product suite because we've launched lighting products. (technical difficulty)

其次，我們投資了某些地區，你提到了德國，馬克將更多地談論這一點。但舉個例子，根據我們在這些地區進行的人力投資，我們將看到一些地理上的成長。第三是我們的產品套件的成長，因為我們推出了照明產品。 （技術難度）

If you look over the last 12 months, we launched our new line of non-interactive displays, those are new in the US, we didn't have those before. Our new LED video walls, newly launched this year, our new media house newly launched this year, our EDLA interactive flat panel displays new this year, a lot of new integrations between our audio solutions and our interactive flat panels, including our TASTEONE solution, newly launched this year. (technical difficulty)

如果你回顧過去 12 個月，我們推出了新的非互動式顯示器系列，這些是在美國推出的新產品，我們以前沒有。我們今年新推出的新LED 視訊牆、今年新推出的新媒體室、今年新推出的EDLA 互動式平板顯示器、我們的音訊解決方案和互動式平板顯示器之間的許多新集成，包括我們的TASTEONE 解決方案，今年新推出的。 （技術難度）

Large investments in our software and Lynx Whiteboard and MimioConnect, CleverLive and other software solutions. So a lot of these product investments that's activity area where we expect to see growth. So even if the interactive flat-panel display market is relatively flat next year, which we expect it to be in the US in AMEA, we are going to see some growth because of those investments in those various areas and we think that because of that will take a little bit of market share as well. (technical difficulty)

對我們的軟體以及 Lynx Whiteboard 和 MimioConnect、CleverLive 及其他軟體解決方案進行了大量投資。因此，許多產品投資都是我們預計會看到成長的活動領域。因此，即使明年互動式平板顯示器市場相對平穩（我們預計該市場將出現在美國 AMEA），但由於這些不同領域的投資，我們仍將看到一些成長，我們認為正因為如此也將佔據一點市場份額。 （技術難度）

I'll just quick one on Germany, Brian, you are asking about Germany. Certainly is now the biggest market place for EDLA in Europe, it wasn't until that has changed the last 15 months the biggest market. And across Europe in many countries, we actually have really high market share and Germany, the one that stands out as being significant low. (technical difficulty)

我將快速介紹德國，布萊恩，你問的是德國。當然，現在是歐洲 EDLA 最大的市場，直到過去 15 個月才改變了最大市場的地位。在整個歐洲的許多國家，我們實際上擁有非常高的市場份額，而德國的市場份額則明顯較低。 （技術難度）

Last year we were at 4.5% in Germany, we're now up to 5.2%. But we hired and significantly we doubled the size of our term sales team from like 5 to 10. And that's only reason that happened over the last 12 months. Those guys now starting to kick in terms of really winning big deals. The other thing is we've just next week, we're actually flat in Germany where we're opening our first showroom in Germany. So again, it kind of gives us more presence in Germany and that will be a key market for us to grow. And we think we've got the right team there to grow market share. (technical difficulty)

去年德國的比例為 4.5%，現在已達 5.2%。但我們聘用了定期銷售團隊，並將其規模顯著增加了一倍，從 5 人增加到 10 人。這也是過去 12 個月發生這種情況的唯一原因。這些人現在開始為真正贏得大筆交易而努力。另一件事是我們下週就在德國開業，我們將在德國開設第一個陳列室。再次強調，這讓我們在德國擁有了更多的影響力，這將成為我們發展的關鍵市場。我們認為我們擁有合適的團隊來擴大市場份額。 （技術難度）

Great. My last question on the debt covenants, sounds like you're back in compliance after repaying $4 million. If I have that right, what is the required covenant for the net debt, net leverage ratio or whatever covenant you missed, so we can gauge where you are going to be in the future?

偉大的。我關於債務契約的最後一個問題，聽起來您在償還 400 萬美元後又恢復了合規性。如果我的說法正確，那麼淨債務、淨槓桿率或您錯過的任何契約所需的契約是什麼，以便我們可以衡量您未來的狀況？

Sure. So for Q4, it's a it will be 2.5 times, and that's in accordance with the original debt agreement that we entered into. I would say, as we've said, we're actively looking to seek refinancing on our credit facility, and we're optimistic that we'll be able to you find a final solution that will give us more favorable terms in that in the not-too-distant future. So we're optimistic about that.

當然。因此，對於第四季度，這將是 2.5 倍，這符合我們最初簽訂的債務協議。我想說，正如我們所說，我們正在積極尋求對我們的信貸安排進行再融資，我們樂觀地認為，我們將能夠找到最終的解決方案，為我們提供更優惠的條件不遠的將來。所以我們對此持樂觀態度。

I would say that in terms of just overall leverage ratio, even despite the four-quarter downturn, the industry has experienced again, which we've started to you see some early signs of turnaround that even with the last four quarters being downturn, our leverage ratio has been maintained under 3 times, which I think it is speaks to the positive bell. We've been able to generate through our improved margins. So that down to 2.5 times, but -- .

我想說的是，就整體槓桿率而言，儘管經歷了四個季度的低迷，但該行業再次經歷了這種情況，我們已經開始看到一些轉變的早期跡象，即使過去四個季度處於低迷狀態，我們的槓桿率一直維持在3倍以下，我認為這是一個積極的信號。我們已經能夠透過提高利潤率來實現獲利。這樣就下降到了 2.5 倍，但是—— .

You have to get into 2.5 times or that's where you're going to be?

你必須進入 2.5 倍，否則你就會達到這個水平？

2.5 times is our requirement for Q4.

2.5 倍是我們對第四季的要求。

Got it. Okay. Thank you,

知道了。好的。謝謝你，

Jack Vander Aarde, Maxim Group.

傑克·范德·阿爾德，Maxim 集團。

Okay, great. Thanks for the update, guys, and many of my questions have been asked, but maybe I'll circle back to kind of the guidance. So last quarter, the overall tone and just kind of verbal body language felt like you're pretty confident in the third quarter outlook and obviously you had a slower back half than expected. But just looking at the fourth quarter guidance and welcome to kind of the tone and body language from last quarter. How confident are you in hitting those targets for the fourth quarter?

好的，太好了。謝謝你們的更新，夥計們，我的許多問題都被問到了，但也許我會回過頭來談談指導。因此，上個季度的整體基調和口頭肢體語言讓人感覺您對第三季度的前景非常有信心，而且顯然您的後半部分比預期的要慢。但只要看看第四季的指導，並歡迎上季度的語氣和肢體語言。您對第四季實現這些目標有多大信心？

Hi, Jack. It's Mark Starkey. I think we're pretty confident, I think we tried to be more conservative on the Q4 call. We basically said, look flat with 2022. Q3 was disappointing, right. We had the second half, especially right, when we did our call three months ago, we did see we're going to definitely grow order intake.

嗨，傑克。我是馬克·斯塔基。我認為我們非常有信心，我認為我們在第四季度的電話會議上嘗試更加保守。我們基本上說，2022 年前景平平。第三季令人失望，對吧。我們下半年的情況尤其正確，當我們三個月前打電話時，我們確實看到我們的訂單量肯定會增加。

We actually saw growth in order to be higher than what ended up within that was level between cash-in order of 20%. So it's definitely slower in the second half of Q3. And we have been more conservative in our guidance for Q4 as well. (technical difficulty)

實際上，我們看到的成長速度高於現金訂單 20% 之間的最終水準。所以第三季下半年一定會慢一些。我們對第四季的指導也更加保守。 （技術難度）

Okay. That makes sense. That's helpful. And then maybe just, Michael, you opened up your comments about Asia and everyone's different geographical positions or locations. Can you just talk a little bit more about your expansion opportunity planned in Asia? And it sounds like you're somewhat early and maybe the evaluation phases. But when might you see some tangible results from any new potential Asia market opportunities?

好的。這就說得通了。這很有幫助。然後也許只是，邁克爾，你發表了對亞洲以及每個人不同地理位置或地點的評論。能多談談您計劃在亞洲的擴張機會嗎？聽起來你還處於早期階段，也許還在評估階段。但是，您什麼時候才能看到新的潛在亞洲市場機會帶來的實際成果呢？

Yes. So right now, clearly, the biggest opportunities for growth for us are in the US and then I would say Western Europe particularly Germany. We're also seeing a lot more opportunities from Eastern Europe. We also have an employee now in the Middle East and are seeing more opportunities in Middle East.

是的。因此，現在顯然，我們最大的成長機會在美國，然後我會說西歐，特別是德國。我們也看到來自東歐的更多機會。我們現在在中東也有一名員工，並且在中東看到了更多的機會。

But I think again, the US and AMEA region are by far the largest growth opportunities for us over the next 12 months. But we're just starting to and we sell some in APAC region and particularly Australia doing quite well. And we have sold in other countries for Southeast Asia, not large quantities.

但我再次認為，美國和 AMEA 地區是我們未來 12 個月迄今為止最大的成長機會。但我們才剛開始，我們在亞太地區，特別是澳洲銷售一些，表現相當不錯。而且我們也銷往東南亞其他國家，數量不多。

But I would say we're optimistic we can start to see some meaningful growth even over the next 12 months in that region. But I would say if you're looking at again over the next 12 months in particular, it is substantial growth. It's really going to come from our existing territories over the next few quarters.

但我想說的是，我們很樂觀，即使在未來 12 個月內，該地區也能開始看到一些有意義的成長。但我想說的是，如果您特別關注未來 12 個月的情況，您會發現這是大幅成長。在接下來的幾個季度裡，它實際上將來自我們現有的領土。

Okay. And then maybe just in terms of some of the orders that were slow, in the slowdown kind of happen in the back half of the quarter. Can you talk about maybe was there any nuance trends, a bigger slowdown in corporate enterprise versus your K12 education market. Was there any sort of distinct trends there? Or was that pretty much it was it really in the general overall softness?

好的。然後，也許只是就一些訂單緩慢而言，放緩發生在本季後半段。您能談談是否存在任何細微差別的趨勢，即企業與 K12 教育市場相比是否出現了更大的放緩。那裡有什麼明顯的趨勢嗎？或者說，整體的柔軟度確實如此嗎？

If you look at overall business, enterprise is less than 10% of our total business. I mean, we were largely really large at K12 education company today. Now we're looking to grow that enterprise vertical, and that's happening as we saw growth in enterprise and we think we're going to see substantial growth enterprise next year and so it wasn't enterprise vertical. It was purely education vertical that was slower than expected.

如果你看一下整體業務，企業業務只占我們總業務的不到10%。我的意思是，今天我們的 K12 教育公司規模非常大。現在我們正在尋求發展企業垂直領域，這種情況正在發生，因為我們看到了企業的成長，我們認為明年我們將看到企業的大幅成長，所以它不是企業垂直領域。純粹的教育垂直領域比預期慢。

Okay, understood. And I think that's it for me, guys. I appreciate the update and good luck going forward. Thank you.

好的，明白了。我想這對我來說就是這樣，夥計們。我很感謝更新並祝你好運。謝謝。

Thank you, Jack.

謝謝你，傑克。

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

問答環節已經結束，我現在將電話轉交給麥可做總結發言。

Thank you, everybody, for joining the call today, and we appreciate your support. We look forward to speaking again in March, when we report our 2023 full year results.

謝謝大家今天加入電話會議，我們感謝你們的支持。我們期待在 3 月再次發言，屆時我們將報告 2023 年全年業績。

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，您現在可以掛斷電話了。感謝您的參與。