Consensus Cloud Solutions Inc (CCSI) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen and welcome to Consensus Q3 2024 earnings call.

女士們、先生們，大家好，歡迎參加 2024 年第三季共識收益電話會議。

My name is Paul, and I will be the operator assisting you today.

我叫保羅，今天我將擔任協助您的接線生。

(Operator Instructions)

（操作員指令）

On this call from Consensus will be Scott Turicchi, CEO.

執行長 Scott Turicchi 將出席 Consensus 的此次電話會議。

Jim Malone, CFO, Johnny Hecker CRO and Executive Vice President of Operations and Adam Varon, Senior Vice President of Finance.

Jim Malone，財務官，Johnny Hecker 財務長兼營運執行副總裁，Adam Varon，資深財務副總裁。

I will now turn the call over to Adam Varon, Senior Vice President of Finance at Consensus.

現在我將電話轉給 Consensus 財務高級副總裁 Adam Varon。

Thank you.

謝謝。

You may begin.

你可以開始了。

Good afternoon and welcome to the Consensus investor call to discuss our Q3 2024 financial results, other key information and our Q4 and full year 2024 guidance.

下午好，歡迎參加共識投資者電話會議，討論我們的 2024 年第三季度財務業績、其他關鍵信息以及我們的 2024 年第四季度和全年指引。

Joining me today are Scott Turicchi, CEO, Johnny Hecker, CRO and EVP of Operations and Jim Malone CFO, the earnings call will begin with Scott providing opening remarks.

今天與我一起參加會議的有首席執行官 Scott Turicchi、首席風險官兼營運執行副總裁 Johnny Hecker 以及首席財務官 Jim Malone，收益電話會議將由 Scott 致開幕詞開始。

Johnny will give an update on operational progress since our Q2 2024 investor call and then Jim will discuss Q3, 2024 financial results and Q4 quarterly and full year 2024 guidance.

約翰尼將介紹自 2024 年第二季度投資者電話會議以來的營運進展情況，然後吉姆將討論 2024 年第三季度的財務業績以及 2024 年第四季度的季度和全年指引。

After we finish our prepared remarks, we will conduct a Q&A session at that time.

當我們完成準備好的發言後，我們將進行問答環節。

The operator will instruct you on the procedures for asking a question before we begin our prepared remarks, allow me to direct you to our forward-looking statements and risk factors on slide 2.

在我們開始準備好的發言之前，操作員將指導您提問的程序，請允許我引導您查看投影片 2 上的前瞻性聲明和風險因素。

As you know this call and the webcast will include forward-looking statements.

如您所知，本次電話會議和網路直播將包含前瞻性陳述。

Such statements may involve risks and uncertainties that would cause actual results to differ materially from the anticipated results.

此類聲明可能涉及風險和不確定性，導致實際結果與預期結果有重大差異。

Some of those risk factors and uncertainties include but are not limited to the risk factors that we have disclosed in our 10-K SEC Filing.

這些風險因素和不確定性包括但不限於我們在 10-K SEC 文件中揭露的風險因素。

Now let me turn the call over to Scott.

現在讓我把電話轉給史考特。

Thank you, Adam.

謝謝你，亞當。

We have another strong quarter in Q3 beating our expectations for revenue adjusted EBITDA and adjusted non-GAAP net income per share.

我們在第三季再次表現強勁，營收調整後 EBITDA 和調整後非 GAAP 每股淨收入超出了我們的預期。

The outperformance occurred in both channels of revenue.

兩個收入管道均表現出色。

This combined with our disciplined approach to cost resulted in another quarter of excellent EBITDA performance and an EBITDA margin above the bid point of our range of 50% to 55% as we laid out in our Q4, 2023 earnings call.

再加上我們嚴謹的成本控制方法，我們又一個季度實現了出色的 EBITDA 業績，EBITDA 利潤率高於我們在 2023 年第四季度財報電話會議上提出的 50% 至 55% 範圍的買入點。

Our goals for this year include first eliminating certain costs of the SoHo channel, especially in the area of marketing to provide for stabilization of the base of revenue over time which Johnny will address in his remarks two continuing to pursue the acquisition of customers primarily in the health care space for our corporate channel three, reviewing our overall cost structure with the goal of driving adjusted EBITDA margins north of 54%.

我們今年的目標包括：第一，消除 SoHo 管道的某些成本，特別是在行銷領域，以確保收入基礎的長期穩定，Johnny 將在他的發言中談到這一點；第二，繼續為我們的企業管道吸引主要在醫療保健領域的客戶；第三，審查我們的整體成本結構，目標是將調整後的 EBITDA 利潤率提高到 54% 以上。

I would note it's 54.7% for the nine months and four continuing the repurchase of our debt to further reduce our total debt to adjusted EBITDA ratio.

我想指出的是，九個月零四個月的比率為 54.7%，我們繼續回購債務以進一步降低我們的總債務與調整後 EBITDA 的比率。

In anticipation of the first trans maturing in October of 2026.

預計第一位跨性別者將於 2026 年 10 月成熟。

Our corporate channel had the best revenue growth in six quarters.

我們的企業通路實現了六個季度以來最好的收入成長。

The 5.3% growth was driven by new customer additions and record usage for a quarter.

5.3% 的成長得益於新客戶的增加和本季創紀錄的使用量。

The new adds came primarily through our e-commerce efforts of eFax protect, supplemented by upgrades from our SoHo base as well as several key enterprise wins.

新增功能主要來自於我們在電子商務領域的努力，包括 eFax protect，以及我們 SoHo 基地的升級和幾項關鍵企業的勝利。

Now with standing the lower ARPA of eFax protect customers than our current average.

現在，eFax 的 ARPA 低於我們目前的平均水平，可以保護客戶。

We were still able to maintain a $310 ARPA per customer in a tight range over the past several quarters.

在過去幾季中，我們仍然能夠將每位客戶的平均每用戶費用 (ARPA) 維持在狹窄的範圍內 310 美元。

As predicted, we continue to see additional sites from the VA rollout driving new levels of usage and revenue.

正如所預測的那樣，我們繼續看到 VA 推出的更多站點推動著使用量和收入達到新的水平。

In addition, we saw a return to 100% LTM revenue retention in our corporate channel.

此外，我們發現企業通路的 LTM 收入保留率已恢復到 100%。

Our SoHo revenues beat our expectations for the quarter.

我們的 SoHo 營收超出了我們本季的預期。

The rate of decline slowed from Q2 and we expect that there will be a reduction in the pace of decline in 2025.

下降速度從第二季開始放緩，我們預計 2025 年下降速度將會減緩。

We continue to track ahead of our 2024 budget and have tested additional marketing opportunities while maintaining a strong [LTV to CAC], we were able to substantially reduce our marketing spend and still generate 64,000 paid Adds similar to Q3, 2023 and more Adds than in the preceding three quarters.

我們繼續追蹤 2024 年的預算，並在保持強勁的 [LTV 到 CAC] 的同時測試了額外的行銷機會，我們能夠大幅減少行銷支出，並且仍然產生與 2023 年第三季類似的 64,000 個付費添加，並且比前三個季度更多。

The combination of robust adjusted EBITDA strong cash collections and retirement of debt allowed us to generate free cash flow of approximately $34 million.

強勁的調整後 EBITDA、強勁的現金回籠和債務償還使我們產生了約 3,400 萬美元的自由現金流。

The change in free cash flow from the prior year is driven by the timing of tax payments which Jim will address in more detail.

與前一年相比，自由現金流的變化是由納稅時間決定的，Jim 將對此進行更詳細的說明。

We were also able to repurchase an additional $31.1 million of debt in the quarter.

本季我們也能夠回購額外的 3,110 萬美元債務。

This brings our total repurchases since launching the program in November 2023 to $187 million and reducing our outstanding total debt to $618 million or 3.2 times.

這使得我們自 2023 年 11 月啟動該計劃以來的總回購額達到 1.87 億美元，並將我們的未償還總債務減少至 6.18 億美元，即 3.2 倍。

Our trailing 12 month adjusted EBITDA and 2.9 times on a net debt basis to our adjusted EBITDA.

我們過去 12 個月的調整後 EBITDA 和淨債務基礎的調整後 EBITDA 為 2.9 倍。

Jim will discuss our guidance for Q4 and the fiscal year in his portion of the presentation.

吉姆將在他的演講部分討論我們對第四季和財政年度的指導。

However, I would like to note that Q4 usually has the fewest business days of the four quarters and

不過，我想指出的是，第四季通常是四個季度中工作日最少的季度，

[six].

[六]。

Approximately third of our total revenues are usage based.

我們總收入的大約三分之一是基於使用情況的。

This puts downward pressure on Q4 revenues relative to Q3.

這對第四季的收入造成了相對於第三季的下行壓力。

This year however the calendar is the most punitive as Christmas and New Year’s Day both fall on a Wednesday based on historical analysis, we have compensated for this in the calculation of our Q4 business days.

然而，根據歷史分析，今年的日曆是最嚴格的，因為聖誕節和元旦都在星期三，我們在計算第四季度的工作日時對此進行了補償。

As a result, we expect approximately 61 business days in Q4 of 2024 which is one and half quarter business days less than Q4 of 2023 and approximately three and half quarter business days less than Q3 of 2024.

因此，我們預計 2024 年第四季的工作日約為 61 個，比 2023 年第四季減少一個半季的工作日，比 2024 年第三季減少約三個半季的工作日。

I will now turn the call over to Johnny to provide more operational updates.

現在我將把電話轉給約翰尼，以提供更多營運更新。

Thank you, Scott and hello everyone.

謝謝你，斯科特，大家好。

I will provide an update on operations and go to market for the corporate and soho businesses respectively, including details on revenue, customer accounts and go to market strategy.

我將分別為企業和 Soho 業務提供運營和上市方面的最新信息，包括收入、客戶帳戶和上市策略方面的詳細信息。

Q3 was another record revenue quarter for our corporate business.

第三季是我們企業業務又一個創下營收紀錄的季度。

I'm very pleased with our growth and the increased momentum resulting in another solid performance in Q3.

我對我們的成長和成長勢頭感到非常高興，從而在第三季度再次取得了穩健的表現。

Our revenue for the third quarter increased by approximately 5.3% compared to the same period.

我們第三季的營收與去年同期相比成長了約5.3%。

Last year.

去年。

The highest rate in the last six quarters, we have reached a total of $53.1 million up from $50.4 million in Q3 of the previous year, particularly cloud facts, especially in health care showed solid consumption growth within our existing customer base while we were able to implement and ramp recently won new customers across the board.

這是過去六個季度以來的最高水平，總計達到 5,310 萬美元，高於去年第三季度的 5,040 萬美元，尤其是雲端運算，尤其是在醫療保健領域，在我們現有客戶群中顯示出穩健的消費增長，同時我們能夠全面實現並增加最近贏得的新客戶。

Our corporate customer account has reached roughly 58,000.

我們的企業客戶帳戶已達約58,000個。

The highest ever for Consensus.

共識達到有史以來的最高水準。

And I am pleased to report that corporate ARPA has maintained flat quarter over quarter at $310 and well within the stable $305 to $320 range for eight quarters now driven by automation, e-commerce and SoHo Upsell to corporate added over 3,000 customers to the overall corporate account base in Q3.

我很高興地報告，企業 ARPA 與上一季度持平，為 310 美元，並且連續 8 個季度保持在 305 至 320 美元的穩定範圍內，這得益於自動化、電子商務和 SoHo Upsell 向企業進行的推動，第三季度為整體企業帳戶群增加了超過 3,000 名客戶。

Another significant increase since last quarter, our eFax protect service is experiencing sustained growth to further capitalize on this momentum.

自上個季度以來，我們的 eFax 保護服務再次實現了顯著成長，正在持續成長，以進一步利用這一勢頭。

We're investing in its expansion as outlined in the go to market strategy we presented last year while the recently introduced in product Upsell options from SoHo to corporate has been successful in reducing the need for direct customer interaction and driving growth.

我們正在按照我們去年提出的市場策略對其進行投資以擴大其業務，而最近推出的從 SoHo 到企業的產品追加銷售選項已成功減少了直接客戶互動的需求並推動了成長。

We're seeing this Upsell strategy plateau.

我們看到這種追加銷售策略已進入穩定階段。

After many successful quarters, moving forward, we will maintain this profitable program but continue to shift our focus towards e-commerce as the primary driver for acquiring small corporate accounts, the success and growth of corporate accounts on the lower end of the ARPA spectrum driven by those new customers acquired through the e-commerce channel or upsold from SoHo continues to influence the corporate cancellation rate.

經過多個季度的成功，展望未來，我們將繼續保持這一盈利計劃，但繼續將重點轉向電子商務，因為電子商務是獲取小型企業帳戶的主要驅動力，透過電子商務管道獲得的新客戶或從 SoHo 追加銷售推動的 ARPA 頻譜低端企業帳戶的成功和增長繼續影響企業取消率。

It has increased by 112 basis points year over year and 32 basis points quarter over quarter reaching 2.61% in Q3 of 2024.

較去年同期成長 112 個基點，較上季成長 32 個基點，在 2024 年第三季達到 2.61%。

It is important to note that our cancellation rate is calculated on a per account basis rather than on revenue.

值得注意的是，我們的取消率是按每個帳戶計算的，而不是按收入計算的。

As a result, we believe that the revenue retention metric is more relevant than the cancellation rate.

因此，我們認為收入保留指標比取消率更為重要。

Our dedication to customer retention upselling and cross selling is yielding positive results with a modest increase in revenue retention to 100% over the past 12 months in the corporate channel.

我們致力於客戶保留、追加銷售和交叉銷售，並取得了積極的成果，過去 12 個月中企業通路的收入保留率小幅上升至 100％。

This is another encouraging indicator of our momentum and remarkable success in the corporate revenue channel.

這是我們在企業收入管道中保持強勁勢頭並取得顯著成功的又一個令人鼓舞的指標。

I am pleased that our go to market plan for 2024 is unfolding successfully.

我很高興我們 2024 年的行銷計劃正在順利展開。

The green shoots we've previously mentioned are driving revenue growth across our entire customer base as service utilization continues to rise.

隨著服務利用率的不斷上升，我們之前提到的綠芽正在推動我們整個客戶群的收入成長。

Customers who have made a purchase are demonstrating a strong commitment to swift adoption.

已經購買的客戶表現出了對快速採用的強烈承諾。

Let me share a quick update on the VA the implementation of EC facts at the Department of Veterans Affairs is progressing as planned.

讓我簡要分享一下有關 VA 的最新進展，退伍軍人事務部實施 EC 事實的工作正在按計劃進行。

We have observed steady growth that is aligned with our projections and allows us to confidently confirm the forecast of over $2 million in revenue from the EC facts program in 2024.

我們觀察到與我們的預測一致的穩定增長，並使我們能夠自信地確認 2024 年 EC 事實計劃收入超過 200 萬美元的預測。

As we move forward, we anticipate sustained growth in the coming months and years.

隨著我們不斷前進，我們預計未來幾個月和幾年將持續成長。

Further solidifying the program's success at and beyond the VA in line with our vision for 2025 our cloud fax business remains our primary focus.

為了進一步鞏固該計劃在 VA 及以後的成功，並符合我們的 2025 年願景，我們的雲端傳真業務仍然是我們的重點。

We maintain our commitment to investing in the ongoing development and enhancement of our cloud fax platform with customer satisfaction at the forefront.

我們始終致力於投資於雲端傳真平台的持續開發和增強，並將客戶滿意度放在首位。

We're consistently working to improve the platform while ensuring our continued economic success clarity which features AI technology continues to generate significant interest among potential customers.

我們始終致力於改進平台，同時確保我們持續的經濟成功，其特點是人工智慧技術繼續引起潛在客戶的極大興趣。

We're actively engaged in implementing the solution for clients simultaneously.

我們正積極致力於同時為客戶實施解決方案。

We're diligently addressing our increasing backlog of proof of concept to ensure that all interested parties have the opportunity to experience the capabilities of clarity.

我們正在努力解決日益增加的概念驗證積壓問題，以確保所有感興趣的各方都有機會體驗清晰度的功能。

I am now shifting to the SoHo channel in the third quarter.

我現在將在第三季轉向SoHo頻道。

The SoHo business generated a revenue of $34.7 million.

SoHo 業務創造了 3,470 萬美元的收入。

A decrease from the previous years, $40.1 million.

較前幾年減少 4,010 萬美元。

This represents a declining rate of 13.6% which is a slower decline compared to the previous quarter.

下降率為 13.6%，與上一季相比下降幅度較小。

The total SoHo account base is also slightly decreased from [7,85,000 to 7,68,000] during the quarter.

本季度，SoHo 帳戶總數也從 [7,85,000 降至 7,68,000] 略有減少。

Despite experiencing this decline, our SoHo business manages to modestly exceed expectations, showcasing the robust strength of our brand portfolio particularly exemplified by eFax.

儘管經歷了下滑，我們的 SoHo 業務仍略微超出預期，展示了我們品牌組合的強大實力，尤其是 eFax。

The introduction of new first month discounted pricing plans across several brands has proven effective in boosting revenue velocity within SoHo.

事實證明，多個品牌推出的新的首月折扣價格計劃能夠有效提高 SoHo 內的收入速度。

Moreover, in Q3, the average revenue per account remained relatively stable at $14.88. Additionally, the cancel rate showed a modest sequential improvement to 3.38% compared to 3.49% in Q3 of the previous year.

此外，第三季每個帳戶的平均收入保持相對穩定，為 14.88 美元。此外，取消率較去年同期的 3.49% 略有改善，為 3.38%。

Looking ahead, we remain focused on executing our strategy for the SoHo business, maintaining profitable stability and optimizing current operations and resources rather than pursuing aggressive growth strategies.

展望未來，我們仍專注於執行 SoHo 業務策略、維持獲利穩定性並優化當前營運和資源，而不是追求激進的成長策略。

We aim to leverage our existing strengths and offerings to ensure the long term sustainability of our business in this market.

我們的目標是利用我們現有的優勢和產品來確保我們的業務在這個市場的長期永續性。

Our smarter adds spend strategy designed to enhance customer acquisition profitability has delivered sustained success.

我們旨在提高客戶獲取獲利能力的更聰明的附加支出策略已取得持續的成功。

We've maintained a focus on automating and optimizing this program resulting in marginal outperformance across all brands compared to our projected outcomes.

我們一直專注於自動化和優化該計劃，從而使所有品牌的表現都比我們預計的結果略有出色。

The synergy between our digital advertising strategy and [CEO] initiatives has been instrumental in optimizing our [LTV to CAC] ratio.

我們的數位廣告策略和[CEO]計劃之間的協同作用對於優化我們的[LTV 與 CAC] 比率起到了重要作用。

By integrating these channels.

透過整合這些管道。

We have achieved a holistic and comprehensive approach to digital marketing, effectively reaching our target audience and driving profitable customer acquisition.

我們已經實現了整體而全面地數位行銷方法，有效地接觸了我們的目標受眾並推動了有利可圖的客戶獲取。

In closing, I'd like to provide an update on the current market conditions while they remain less than optimal.

最後，我想對當前的市場狀況進行更新，儘管目前的市場狀況仍然不太理想。

We've been successful in navigating around the challenges and building a sales pipeline resulting in closing new customers across our customer spectrum, particularly multi location, specialty health care as well as state and local government have shown promising results.

我們成功克服了挑戰，建立了銷售管道，從而在客戶範圍內簽下了新客戶，特別是多地點、專業醫療保健以及州和地方政府，並取得了可喜的成果。

Also, some positive signs are emerging macroeconomic uncertainties persist.

此外，也出現了一些正面跡象，但宏觀經濟的不確定性仍然存在。

Despite these, we stay committed to our strategy, prioritizing cash generation and profitability.

儘管如此，我們仍然堅持我們的策略，優先考慮現金創造和獲利能力。

Our go to market efforts will continue to focus on driving growth within the corporate business.

我們的市場努力將繼續致力於推動企業業務的成長。

With that I want to extend a heartfelt.

我謹以此表達我衷心的謝意。

Thank you to our employees for the extraordinary commitment and to our customers and partners for their continued collaboration and trust.

感謝我們員工的非凡奉獻以及我們的客戶和合作夥伴的持續合作和信任。

And now I'll hand the call over to our CFO Jim Malone who will provide an update about our financial results and guidance over to you, Jim.

現在我將電話交給我們的財務長吉姆·馬龍 (Jim Malone)，他將向您介紹我們的財務表現和指導情況，吉姆。

Thank you Johnny.

謝謝你，強尼。

And good afternoon, everyone in our press release.

記者會上的各位嘉賓大家下午好。

And on these earnings call today, we are disclosing Q3 2024 results plus Q4 2024 and 2024 full year guidance.

在今天的財報電話會議上，我們揭露了 2024 年第三季業績以及 2024 年第四季和 2024 年全年業績指引。

We expect to file our Q3 10-Q today.

我們預計今天提交第三季 10-Q 報表。

Let's start with our corporate business results.

讓我們從我們的公司業務成果開始。

Q3 2024 revenue was a record $53.1 million up $2.7 million or 5.3% versus prior year and performing better than expectations.

2024 年第三季的營收達到創紀錄的 5,310 萬美元，比上年增長 270 萬美元或 5.3%，表現優於預期。

Corporate offer of $310 was essentially flat with the prior quarter and in line with the last several quarters, ranging from $305 to $320.

企業報價為 310 美元，與上一季基本持平，也與過去幾季的 305 美元至 320 美元之間一致。

Q3 2024 customer churn 2.61% increased 112 basis points year over year and 32 basis points sequentially primarily driven by customer churn at the lower end of the customer continue.

2024 年第三季客戶流失率為 2.61%，年成長 112 個基點，比上一季增加 32 個基點，這主要是由於客戶流失率持續處於低端所致。

Normalize or eFax protect the cancel rate would have been approximately 2%.

標準化或電子傳真保護的取消率約為 2%。

Now with standing this, these customers are net economically beneficial.

現在，透過這種方式，這些客戶獲得了淨經濟效益。

I would also like to repeat Johnny's comment that our cancel rate is calculated on a per account basis.

我還想重複約翰尼的評論，我們的取消率是按每個帳戶計算的。

A better measure is revenue retention which came in at 100% over the trailing 12 months and 1% improvement sequentially.

更好的衡量標準是收入保留率，過去 12 個月的收入保留率達到了 100%，並且比上一季提高了 1%。

So results Q3 2024 revenue of $34.7 million is a decrease of $5.5 million or 13.6% over the prior year.

因此，2024 年第三季的營收為 3,470 萬美元，比上年減少 550 萬美元，成長 13.6%。

And in line with expectations, as mentioned previously, this decrease is driven by our plan reduction in advertising spend and the corresponding year over year base reduction due to lower paid adds offer of $14.88 decreased 2.8% year over year.

如同前面所提到的，與預期一致，這一下降是由於我們計劃減少廣告支出，以及由於付費添加報價降低導致的同比基數減少，即 14.88 美元，同比下降 2.8%。

As a result of the shifting to price plans with a discounted 1st month versus a free trial, these plans are net economically benefit.

由於轉向首月有折扣而非免費試用的價格計劃，這些計劃在經濟上是淨收益。

It should be noted that year over year paid adds were flat and at an approximate 40% lower as we continue to optimize our advertising campaigns churn declined 11 basis points to 3.38% year over year and two basis points sequentially in line with expectations.

值得注意的是，由於我們不斷優化廣告活動，付費廣告收入較去年同期持平，下降約 40%，客戶流失率年減 11 個基點至 3.38%，環比下降 2 個基點，符合預期。

Moving to consolidated results.

轉向合併結果。

Q3 revenue of $87.8 million is a decrease of $2.8 million or 3.1% over Q3 2023.

第三季營收為 8,780 萬美元，比 2023 年第三季減少 280 萬美元或 3.1%。

Again in line with expectations adjusted EBITDA of $46.9 million.

調整後 EBITDA 為 4,690 萬美元，再次符合預期。

A decrease of $0.6 million or 1.2% over Q3 2023 was ahead of expectations and driven by lower revenue, partially offset by cost structure optimization.

與 2023 年第三季相比，減少 60 萬美元或 1.2%，低於預期，原因是收入下降，但成本結構優化部分抵消了這一影響。

Primarily in the area of SoHo advertising adjusted EBITDA margin of 53.5% was 100 basis points.

主要在 SoHo 廣告領域的調整後 EBITDA 利潤率為 53.5%，為 100 個基點。

Better than the prior year comparable period delivering a solid EBITDA margin am at cost.

與去年同期相比，EBITDA 利潤率表現較佳，且成本價穩定。

Continued cost optimization.

持續成本優化。

Just a net income of $25.5 million is a decrease of $4.2 million over the 14.3% over prior year.

光是淨收入2,550萬美元就比上年減少了420萬美元，降幅為14.3%。

Driven primarily by a $5.8 million noncash foreign exchange revaluation of intercompany balances partially offset by lower interest expenses on such on the success of our bond repurchase program and lower income taxes trusted EPS of a $31 is lower than the prior year by 13.2% or $0.20 driven by the items previously mentioned at a modestly low share count.

主要原因是由於 580 萬美元的非現金外匯對公司間餘額進行了重估，但部分被較低的利息支出所抵消，這要歸功於我們債券回購計劃的成功以及較低的所得稅，受信託的每股收益為 31 美元，比上年下降 13.2% 或 0.20 美元，這主要得益於前面提到的項目以及較低的股份數量。

Q3 2024 non-GAAP tax rate and share count was approximately 19% and approximately $19.4 million shares as mentioned in our Q3 November 2023 earnings call.

正如我們在 2023 年 11 月第三季財報電話會議上所提到的，2024 年第三季非 GAAP 稅率和股票數量約為 19%，股票價值約為 1,940 萬股。

We announced a $300million three year bond repurchase program in Q3 2024 we repurchased $31.1 million face value for $30.6 million cash.

我們宣布了一項 3 億美元的三年期債券回購計劃，將於 2024 年第三季以 3,060 萬美元現金回購面額 3,110 萬美元的債券。

Welcome to date.

歡迎約會。

We have repurchased $187 million face value for $173 million cash and have approximately $113 million bond repurchases remaining under this program.

我們已以 1.73 億美元現金回購了面額 1.87 億美元的債券，並根據該計劃還剩餘約 1.13 億美元的債券回購。

With the debt repurchases just mentioned total debt to adjusted EBITDA is 3.2 times and net debt to adjust the EPR ratio is 2.9 times.

透過剛才提到的債務回購，總債務與調整後 EBITDA 的比率為 3.2 倍，淨債務與調整後 EPR 比率的比率為 2.9 倍。

We're getting very close to achieving our total debt to adjusted EBITDA target of three times.

我們非常接近實現總債務與調整後 EBITDA 比率三倍的目標。

We ended Q3 2024 with $55 million in cash which is sufficient to fund our operations and repurchases of debt and equity.

截至 2024 年第三季度，我們擁有 5,500 萬美元現金，足以資助我們的營運以及債務和股權的回購。

Q3 2024 free cash flow is $33.6 million versus $49.9 million in the prior comparable period.

2024 年第三季的自由現金流為 3,360 萬美元，去年同期為 4,990 萬美元。

This decrease was probably primarily due to a foreign tax refund and the deferral of Q2 and Q3, 2023 federal income tax payments under the California Disaster Recovery Relief Act, which were, which were subsequently paid in Q4 2023.

這一下降可能主要是由於外國退稅以及根據加州災難復原救濟法案推遲繳納 2023 年第二季和第三季的聯邦所得稅，這些稅款隨後於 2023 年第四季支付。

Q3, 2024 CapEx of $8 million is down $2 million or 20% versus the prior year.

2024 年第三季的資本支出為 800 萬美元，較上年下降 200 萬美元，成長 20%。

Now, let's talk about guidance going forward here.

現在，讓我們來討論一下未來的指導。

Q4, 2024 guidance revenues between $83 million and $87 million with $85 million at the midpoint, adjusted EBITDA between $42 million and $45 million with $43.5 million at the midpoint, adjusted EPS of $1.14 to $1.24 with a $1.19 at the midpoint. Q4 estimated share count and income tax rate are 19.5 million shares and %19.5 to %21.5 tax rate.

2024 年第四季指引收入在 8,300 萬美元至 8,700 萬美元之間，中間值為 8,500 萬美元；調整後 EBITDA 在 4,200 萬美元至 4,500 萬美元之間，中間值為 4,350 萬美元；調整後每股收益在 1.14 美元至 1.24 美元之間，中間值為 1.14 美元。 Q4預計股數和所得稅率為1950萬股和19.5%至21.5%的稅率。

Moving to full year, our revenue and adjusted EBITDA with our range has been narrowed within previously provided guidance based on year-to-date Q3 2024 performance plus our Q4, 2024 guidance range revenues between $346 million and $350 million adjusted EBITDA between $186 million and $189 million.

展望全年，我們的收入和調整後的 EBITDA 範圍已在先前提供的指導範圍內縮小，該指導基於 2024 年第三季度迄今的業績以及我們的 2024 年第四季度指導範圍，收入在 3.46 億美元至 3.5 億美元之間，調整後的 EBITDA 在 1.86 億美元至 1.1.1.1.89 之間。

Adjust the EPS between $5.45 to $5.55.

將每股收益調整在 5.45 美元至 5.55 美元之間。

Therefore, we're narrowing the full year 2024 revenue and adjusted EBITDA kinds while maintaining adjusted EPS range of $5.45 to $5.55. Our estimated share count and non-GAAP income tax rate are $19.5 million shares and 19.5% to 21.5% tax rate that concludes my formal comments.

因此，我們縮小了 2024 年全年營收和調整後 EBITDA 的範圍，同時將調整後的每股盈餘範圍維持在 5.45 美元至 5.55 美元之間。我們的預計股數和非 GAAP 所得稅率為 1,950 萬股和 19.5% 至 21.5% 的稅率，這是我的正式評論。

Now, I'd like to turn the call back to the operator.

現在，我想將電話轉回給接線生。

Thank you.

謝謝。

(Operator Instructions)

（操作員指令）

And the first question today is coming from David Larsen from BTIG.

今天的第一個問題來自 BTIG 的 David Larsen。

David Your line is live.

大衛 您的線路正在運作。

Hi, this is Jenny Chen on for Dave Congrats on the quarter.

大家好，我是 Jenny Chen，為 Dave 祝賀本季的成績。

And thanks for the question.

感謝您的提問。

I'm just doubling down on the hospital environment right now.

我現在正在加倍努力地改善醫院環境。

I know the general consensus has been that it's kind of a two sided coin with some hospitals doing better than others, just broadly speaking.

我知道普遍的共識是，從廣義上講，這就像是一枚兩面硬幣，有些醫院的表現比其他醫院好。

What are you guys seeing in terms of the labour and inflation trends for hospitals and also whether you think the recent election or even CM recent physician fee schedule will have any impact on your hospital customers if they've said anything yet so far.

你們對醫院的勞動力和通貨膨脹趨勢有何看法，以及你們是否認為最近的選舉或 CM 最近的醫師收費表將對您的醫院客戶產生任何影響（如果他們到目前為止還沒有發表任何影響的話）。

Thanks.

謝謝。

Yeah.

是的。

Hi Jenny.

你好，珍妮。

And thank you for the question.

感謝您的提問。

This is Johnny.

這是約翰尼。

I think it's a really good question and you partially answered it already, right?

我認為這是一個很好的問題並且你已經部分回答了它，對嗎？

Some hospitals are doing well, others are struggling.

有些醫院經營良好，有些則舉步維艱。

I think we mentioned it in the call, right?

我想我們在通話中提到過這個，對嗎？

We see the green shoots actually growing and converting.

我們看到綠芽正在真正生長、轉化。

So I think we found a way especially in the specialty health care space in the multi location and health care providers where we can, where we can find customers with let me call it accelerated interest and, and conversion.

因此，我認為我們找到了一種方法，特別是在多地點和醫療保健提供者的專業醫療保健領域，我們可以在那裡找到客戶，我稱之為加速興趣和轉換。

So, while we still have some very large clients that take their time, and we still see continued headwinds in that area, we have found ways to convert and actually ramp new customers.

因此，儘管我們仍然有一些非常大的客戶在花時間，而且我們仍然看到該領域持續存在阻力，但我們已經找到了轉換和實際增加新客戶的方法。

So, like you said, it's a diverse environment out there and some customers are really accelerating, which is encouraging, even more encouraging that we find them and can engage with them and others can continue to be slow from the question about the administrative change.

所以，就像你說的，外面的環境是多樣化的，有些客戶確實在加速發展，這是令人鼓舞的，更令人鼓舞的是，我們找到了他們，並能與他們互動，而其他人可能會因為行政變革的問題而繼續放慢速度。

And the new rules that we from the CM, we don't see any particular impact on our business at this point.

而我們從 CM 那裡得到的新規則，我們目前沒有看到對我們的業務有任何特別的影響。

No, I think you had a third question which is about the election and any impact it might have specifically on customer acquisition, I guess is generally the answer is going to be no, obviously there's a lot of unknowns at this point.

不，我想你還有第三個問題，即關於選舉及其對客戶獲取可能產生的任何影響，我猜一般來說答案是否定的，顯然目前還有很多未知數。

There's still an undecided house race.

眾議院選舉結果仍未確定。

And so I think if you listen to even Chairman Powell today on the interest rate cut and his commentary going forward, two things.

因此，我認為，如果你今天聽聽鮑威爾主席關於降息及其未來評論的話，你會發現兩件事。

One, there's a lot of unknowns because we don't have a settled congress and two, a lot of the policies that have been talked about and maybe implemented are probably still months in the future in terms of getting through even a unified Congress and then actually getting implemented.

一是，由於我們沒有一個確定的國會，因此存在許多未知數；二是，許多已經討論過並可能實施的政策可能還需要幾個月的時間才能通過，即使是在統一的國會通過之後才能真正實施。

So it's obviously something we will watch.

因此這顯然是我們會關注的事情。

There's all kinds of different pieces to it.

它有各種不同的部分。

Obviously, what how does it affect the economy generally, interest rates see if you see already moving around tax implications.

顯然，它對整個經濟有何影響，看看利率是否已經對稅收影響產生影響。

There's a whole myriad of things, but I think it's too early to call.

有很多事情，但我認為現在下結論還為時過早。

But in general, I would say that elections and the different parties that can be in control or divided government doesn't have a huge impact on our customer acquisition.

但總的來說，我認為選舉以及不同政黨控製或分裂政府不會對我們的客戶獲取產生重大影響。

Go to market strategy clearly, if things either give an accelerant to the economy or a headwind that could have an impact.

明確地制定市場策略，看看事情是否會為經濟帶來促進作用，還是會產生不利影響。

But in terms of the direct correlation, I'd say it's generally weak.

但就直接相關性而言，我認為它總體上較弱。

Got it.

知道了。

Thank you.

謝謝。

Thank you.

謝謝。

And once again, (Operator Instructions) I will now hand the call back to Scott Turicchi for closing remarks.

再次，（操作員指示）我現在將把電話交還給斯科特·圖里奇 (Scott Turicchi) 做結束語。

Great.

偉大的。

Well, thank you very much for joining us today.

好吧，非常感謝您今天加入我們。

It was obviously a very busy day to report earnings.

顯然，這是報告業績非常忙碌的一天。

So, if any of you in listening to the replay or reading the transcript have questions, please feel free to reach out to us.

因此，如果您在收聽重播或閱讀文字記錄時有疑問，請隨時與我們聯繫。

We will have probably one or two conferences between now and our next reporting period which will target for the third week of February.

從現在到下一個報告期間（預計在二月的第三週）之間，我們可能會舉行一到兩次會議。

Of course, on that call, we will discuss not only the Q4 results, but we'll release a 2025 guidance on revenues adjusted EBITDA non-GAAP earnings per share much as we've done this year.

當然，在電話會議上，我們不僅會討論第四季度的業績，而且還將發布 2025 年收入調整後 EBITDA 非 GAAP 每股收益指引，就像我們今年所做的那樣。

So, we look forward to talking to you in the interim and then giving you that update in about three months.

因此，我們期待在此期間與您進行交談，然後在大約三個月後向您提供最新消息。

Thank You.

謝謝。

Thank you.

謝謝。

This does conclude today's conference.

今天的會議到此結束。

You may disconnect your lines at this time and have a wonderful day.

此時您可以斷開您的線路並享受美好的一天。

Thank you for your participation.

感謝您的參與。