Climb Global Solutions Inc (CLMB) 2024 Q3 法說會逐字稿

Good morning, everyone.

大家早安。

And thank you for participating in today's conference call to discuss client global solutions.

感謝您參加今天的電話會議，討論客戶的全球解決方案。

Financial results for the third quarter ended September thirtieth, 2024.

截至 2024 年 9 月 30 日的第三季財務表現。

Joining us today are clients CEO Mr Dale Foster, the company's CFO Mr Drew Clark and the company's Investor Relation advisor, Mr Sean Mansouri with Elevate IR.

今天加入我們的有客戶執行長 Dale Foster 先生、公司財務長 Drew Clark 先生以及公司投資者關係顧問 Elevate IR 的 Sean Mansouri 先生。

(Operator Instructions)

（操作員說明）

Thank you.

謝謝。

Before I introduce Dale, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the private Securities Litigation Reform Act of 1,995.

在介紹 Dale 之前，我想提醒聽眾，根據 1,995 年《私人證券訴訟改革法案》，本次電話會議和網路廣播中的某些評論被視為前瞻性陳述。

These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements.

這些前瞻性陳述受到某些已知和未知的風險和不確定性以及可能導致實際結果與這些前瞻性陳述中反映的結果有重大差異的假設的影響。

These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC, do not place undue reliance on any forward-looking statements which are being made only as of the date of this call, except as required by law.

這些前瞻性陳述也受到本公司不時向美國證券交易委員會提交的文件中所述的其他風險和不確定性的影響，請勿過度依賴僅截至本報告發布之日做出的任何前瞻性陳述。法律要求。

The company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements.

本公司不承擔修改或公開發布任何前瞻性陳述的任何修改結果的義務。

Our presentation also includes certain non-GAAP financial measures including adjusted gross billings, adjusted EBITDA adjusted net income and EPS and effective margin.

我們的簡報還包括某些非公認會計原則財務指標，包括調整後的總帳單、調整後的 EBITDA 調整後的淨利潤和每股盈餘以及有效利潤率。

As supplemental measures of performance of our business.

作為我們業務績效的補充衡量標準。

All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules.

根據 SEC 規則，所有非 GAAP 衡量標準均已與最直接可比較的 GAAP 衡量標準進行了調整。

You'll find reconciliation charts and other important information in the earnings press release and form 8K.

您可以在收益新聞稿和 8K 表格中找到調節表和其他重要資訊。

We furnished to the SEC yesterday with that, I'll turn the call over to Climb CEO Dale Foster.

我們昨天向美國證券交易委員會提供了這一信息，我會將電話轉給 Climb 首席執行官戴爾·福斯特 (Dale Foster)。

Thank you, Sean and good morning, everyone.

謝謝肖恩，大家早安。

Q3 marked another exceptional period of growth and profitability for Climb as we generated record levels across all of our key financial metrics of delivering on our acquisition objectives.

第三季標誌著 Climb 又一個非凡的成長和獲利時期，因為我們實現收購目標的所有關鍵財務指標都達到了創紀錄的水平。

Our strong performance was driven by the continued execution of our core initiatives and the integration of Douglas Stewart Software or DSS and Data Solutions, Ireland onto our operating platform.

我們強勁的業績得益於核心計劃的持續執行以及將愛爾蘭 Douglas Stewart Software 或 DSS 和 Data Solutions 整合到我們的營運平台上。

Also in Q3, we rebranded Data solutions Ireland to climb Channel Solutions with a great evening on September 5th in Dublin, sharing our launch to with client team and the vendors and customers.

同樣在第三季度，我們於 9 月 5 日在都柏林度過了一個美好的夜晚，將愛爾蘭數據解決方案重新命名為通路解決方案，與客戶團隊以及供應商和客戶分享了我們的發布。

Additionally, we generated double digit organic growth in both the US and Europe as we strengthen relationships with existing partners while signing new disruptive vendors to our line card.

此外，隨著我們加強與現有合作夥伴的關係，同時為我們的產品線簽約新的顛覆性供應商，我們在美國和歐洲實現了兩位數的有機成長。

As a brief reminder of our recent acquisition, the SS a Wisconsin based IT distributor that brings 20 new vendor partners to climb including Adobe, Go Guardian and IQ to name a few.

簡單提醒我們最近的收購，SS 是一家位於威斯康辛州的 IT 經銷商，它帶來了 20 個新的供應商合作夥伴，其中包括 Adob​​e、Go Guardian 和 IQ 等。

The SS is a proven leader in the education technology channel and provides products and services to more than 500 value added resellers and over 250 campus stores across North America in both K-12 and higher education markets.

SS 是教育科技通路領域公認的領導者，為北美 K-12 和高等教育市場的 500 多家加值經銷商和 250 多家校園商店提供產品和服務。

We are actively identifying cross selling opportunities and cost energy to look forward and look forward to exploring additional benefits.

我們正在積極尋找交叉銷售機會並花費精力展望並期待探索額外的好處。

As we further integrate DSS into our sales and operating work flows throughout the quarter.

隨著我們進一步將 DSS 整合到整個季度的銷售和營運工作流程中。

We worked through a robust pipeline of emerging vendors.

我們與許多新興供應商合作。

We continue to identify and partner with the most innovative technologies in the market that align with our vendor ecosystem that solves today's most difficult it challenges.

我們繼續尋找市場上最具創新性的技術並與之合作，這些技術與我們的供應商生態系統一致，可解決當今最困難的 IT 挑戰。

For example, in Q3, we evaluated 29 vendors but signed only agreements, signed agreements with only four of them.

例如，在第三季度，我們評估了 29 家供應商，但只簽署了協議，只與其中 4 家簽署了協議。

I'd like to quickly highlight one of these wins.

我想快速強調其中一項勝利。

In September.

九月。

We announced a partnership with A-LIGN a leading security and compliance solutions provider that is trusted by more than 4,000 global organizations A-LIGN combines deep compliance expertise and innovative audit management technology to mitigate cyber security risk while navigating complex regulatory requirements.

我們宣布與A-LIGN 建立合作夥伴關係，A-LIGN 是一家領先的安全與合規解決方案提供商，受到4,000 多家全球組織的信賴A-LIGN 結合了深厚的合規專業知識和創新的審計管理技術，可在滿足複雜的監管要求的同時降低網路安全風險。

By partnering with the A-LIGN, we are ensuring that our channel partners have the resources needed to efficiently move from audit to comp to strategic compliance.

透過與 A-LIGN 合作，我們確保我們的通路合作夥伴擁有有效地從審計、補償到策略合規轉變所需的資源。

We look forward to building a mutually beneficial relationship with the A-LIGN as we continue to scale our businesses globally.

隨著我們繼續在全球範圍內擴展我們的業務，我們期待與 A-LIGN 建立互惠互利的關係。

On the topic of scaling overseas, we recently took our first steps toward building our presence in Germany, a key market in Western Europe.

關於海外擴張的話題，我們最近邁出了在西歐關鍵市場德國建立業務的第一步。

As we have stated, many times, deals in Western Europe are built on trust and local connections.

正如我們所說，很多時候，西歐的交易都建立在信任和當地關係的基礎上。

For the first time in the company's history.

這在公司歷史上還是第一次。

We have dedicated a team to on the ground focused on building and nurturing these relationships.

我們專門組建了一個團隊，專注於建立和培養這些關係。

We recently competed, completed a climb branding kick-off signalling the start of a more committed and comprehensive approach in this region.

我們最近參加並完成了攀登品牌啟動活動，標誌著在該地區開始採取更堅定和全面的方法。

We are thrilled to launch this initiative and look forward to building out Climb's presence in Germany and the dock region, as we mentioned before, we went live with our new erp system during the quarter while it has well, it is early with our new systems.

我們很高興推出這項舉措，並期待擴大 Climb 在德國和碼頭地區的影響力，正如我們之前提到的，我們在本季度啟用了新的 erp 系統，而我們的新系統還處於早期階段。

We expect this platform to significantly enhance our operations over time, both in North America and overseas by providing better access to real time data across finance, sales and other operating functions.

我們預計，隨著時間的推移，該平台將透過提供更好的財務、銷售和其他營運職能即時數據存取方式，顯著增強我們在北美和海外​​的營運。

We anticipate realizing operational efficiencies and improved decision-making capability to support our growth as we continue to scale our global footprint.

隨著我們繼續擴大全球足跡，我們預計將實現營運效率和決策能力的提高，以支持我們的成長。

Looking ahead, we remain focused on leveraging our global infrastructure to drive organic growth while actively explore exploring M&A targets that enhance our geographic footprint, broaden our service and solution offerings.

展望未來，我們仍然專注於利用我們的全球基礎設施來推動有機成長，同時積極探索併購目標，以擴大我們的地理足跡，擴大我們的服務和解決方案產品。

And most importantly, aligned with our high performance culture, we anticipate unlocking additional synergies from our acquisitions and further improving operating leverage as we execute across our global platform.

最重要的是，與我們的高績效文化一致，我們預計在我們跨全球平台執行的過程中，透過收購釋放額外的協同效應，並進一步提高營運槓桿。

These initiatives coupled with our proven track record of a creative M&A will enable us to close out 2024 on a strong note and achieve another record year performance.

這些舉措加上我們在創意併購方面的良好記錄，將使我們能夠以強勁的表現結束 2024 年，並再創歷史新高。

With that, I will turn the call over to our CFO Drew Clark and he'll take you through the financial results.

接下來，我將電話轉給我們的財務長德魯克拉克 (Drew Clark)，他將向您介紹財務表現。

Thank you, Dale.

謝謝你，戴爾。

Good morning, everyone, quick reminders.

大家早安，快速提醒。

We review the financial results of our third quarter, all comparisons and variance commentary referred to the prior year quarter unless otherwise specified.

除非另有說明，我們審查第三季的財務業績，所有比較和差異評論均參考去年同期。

Furthermore, as Sean mentioned at the start of the call, we discuss various non-GAAP operating and financial metrics as supplemental measures of the performance of our business.

此外，正如 Sean 在電話會議開始時提到的那樣，我們討論了各種非 GAAP 營運和財務指標，作為衡量我們業務績效的補充指標。

As reported in our earnings.

正如我們的收益中所報告的。

Press release, just the gross billings or AGB increased 65% to$ 465.2 million compared to $281.9 million in the year ago quarter.

新聞稿稱，僅總帳單或 AGB 就成長了 65%，達到 4.652 億美元，而去年同期為 2.819 億美元。

That sales in the third quarter of 2024 increased 52% to $119.3 million.

2024 年第三季的銷售額成長 52%，達到 1.193 億美元。

Compared to $78.5 million which grew at a lower rate than AGB due to a greater percentage of sales recognized on a net basis in the quarter.

相比之下，7,850 萬美元的成長速度低於 AGB，因為本季以淨額確認的銷售額百分比較高。

Growth in AGB was attributed to organic growth from new and existing vendors as well as a contribution from our acquisitions of DSS on July 31st and Data Solutions on October 6th of last year, data Solutions and DSS combined for $81.3 million or 44% of the growth in AGB.

AGB 的成長歸因於新供應商和現有供應商的自然成長，以及去年7 月31 日收購DSS 和10 月6 日收購Data Solutions 的貢獻，data Solutions 和DSS 合計營收為8,130 萬美元，佔成長的44%在AGB。

While our core business grew by $102 million, representing 56% of the increase and year over year growth of 36% which was positively impacted by several vast orders in the quarter, gross profit or GP in the third quarter increased 70% to $24.3 million compared to $14.3 million.

雖然我們的核心業務成長了1.02 億美元，佔成長的56%，年成長36%，這受到本季幾筆巨額訂單的正面影響，但第三季的毛利或GP 成長了70%，達到2,430萬美元。

Again, the increase was driven by organic growth from new and existing vendors in both North America and Europe, representing $6 million or 60% of the increase as well as the contributions from DSS and Data Solutions, which represented $44 million or 40% of the growth gross profit as a percentage of adjusted gross billings increased to 5.2% compared to 5.1%.

同樣，這一增長是由北美和歐洲的新供應商和現有供應商的有機增長推動的，佔增長的600 萬美元，佔增長的60%，以及DSS 和數據解決方案的貢獻，佔增長的4,400 萬美元，佔成長的40%。

SG&A expenses in the third quarter were $13.9 million compared to $10.1 million for the same period in 2023 SG&A from DSS and Data Solutions accounted for $1.8 million of the increase along with variable sales compensation attributed to the growth in AGB and the overall growth of our operations SG&A as a percentage of AGB decreased to 3% compared to 3.6% in the year ago period.

第三季的SG&A 支出為1,390 萬美元，而2023 年同期為1,010 萬美元，DSS 和資料解決方案的SG&A 支出佔增量的180 萬美元，以及歸因於AGB 成長和我們業務整體成長的可變銷售薪資SG&A 佔 AGB 的百分比從去年同期的 3.6% 下降至 3%。

Net income in the third quarter of 2024 increased more than two times to$ 5.5 million or $1.19 per diluted share compared to $2.4 million or $0.52 per diluted share for the comparable period in 2023.

2024 年第三季的淨利潤成長兩倍多，達到 550 萬美元，即稀釋後每股收益 1.19 美元，而 2023 年同期淨利潤為 240 萬美元，即稀釋後每股收益 0.52 美元。

As referenced in our press release, net income was impacted by a $1.2 million charge related to a change in fair value of acquisition contingent consideration associated with data solutions adjusted net income also increased more than two times the $7.1 million or $1.55 per diluted share compared to $2.6 million or $0.56 per diluted share for the year ago period.

正如我們的新聞稿中所提到的，淨利潤受到與數據解決方案相關的收購或有對價公允價值變化相關的120 萬美元費用的影響，調整後的淨利潤也增加了兩倍多，即710萬美元或稀釋後每股1.55 美元。

The company's earnings per diluted share in the third quarter of 2024 was negatively impacted by $0.05 in FX compared to the prior year quarter adjusted EBITDA in the third quarter increased 96% to $9.9 million compared to $5.1 million in the prior year quarter.

與去年同期相比，該公司 2024 年第三季的攤薄每股收益受到 0.05 美元外匯的負面影響，第三季調整後 EBITDA 成長 96%，達到 990 萬美元，而去年同期為 510 萬美元。

The increase was driven by the aforementioned organic growth from both new and existing vendors in our core business which represented $2.8 million or 58% of the increase as well as a $2 million contribution from DSS and Data solutions adjusted EBITDA as a percentage of gross profit or effective margin increased 500 basis points to 41% compared to 36% in the year ago period.

這一成長是由我們核心業務中的新供應商和現有供應商的上述有機成長推動的，佔成長的280 萬美元或58%，以及DSS 和數據解決方案調整後EBITDA 佔毛利或的百分比的200 萬美元貢獻有效利潤率較去年同期的 36% 增加 500 個基點，達到 41%。

Turning to our balance sheet, cash and cash equivalents were $22.1 million as of September thirtieth 2024, compared to $36.3 million on December thirty first 2023.

轉向我們的資產負債表，截至 2024 年 9 月 30 日，現金和現金等價物為 2,210 萬美元，而 2023 年 12 月 30 日為 3,630 萬美元。

While working capital decreased by $12.3 million during the period, the decrease in cash was primarily attributed to the cash paid at closing for our acquisition of DSS of $20.9 million as well as the normal timing of receivable collections and vendor payments.

雖然營運資金在此期間減少了 1,230 萬美元，但現金減少主要歸因於我們收購 DSS 時支付的現金 2,090 萬美元以及應收帳款催收和供應商付款的正常時間。

As of September thirtieth, 2024, we had $900,000 of outstanding debt with no borrowings outstanding under our $50 million revolving credit facility with JP Morgan Chase.

截至 2024 年 9 月 30 日，我們與摩根大通的 5,000 萬美元循環信貸安排下有 90 萬美元的未償債務，沒有未償還的借款。

On October twenty eighth consistent with prior quarters, our board of directors declared a quarterly dividend of $0.17 per share of our common stock to stockholders of record as of November eleventh 2024 and payable on November fifteenth, 2024, to echo Dale's earlier comments, our plans remain unchanged, leverage our global presence to drive organic growth while expanding our line card with most innovative companies in the market.

與前幾季一致，我們的董事會於10 月28 日宣布向截至2024 年11 月11 日登記在冊的股東派發每股普通股0.17 美元的季度股息，並於2024 年11 月15 日支付，以呼應戴爾先前的評論、我們的計畫保持不變，利用我們的全球影響力推動有機成長，同時擴大我們與市場上最具創新性公司的產品線。

Our strong balance sheet will continue to drive our M&A strategy as we evaluate new targets in Western Europe and beyond.

當我們評估西歐及其他地區的新目標時，我們強勁的資產負債表將繼續推動我們的併購策略。

We're proud of our team's hard work and dedication in achieving these record results and look forward to maintaining this momentum through the close of 2024 and into the year ahead as Dale and I continually reinforced to our team.

我們為我們的團隊為實現這些創紀錄的成果而付出的辛勤工作和奉獻精神感到自豪，並期待在戴爾和我不斷加強對我們團隊的支持下，在 2024 年底和未來一年保持這一勢頭。

Let's keep climbing.

我們繼續攀登吧。

This concludes, our prepared remarks will now open it up for questions from those participating in the call operator back to you.

最後，我們準備好的發言現在將開放給參與呼叫接線員的人員向您提問。

(Operator Instructions)

（操作員說明）

Vincent Colicchio with Barrington Research.

巴靈頓研究中心的文森特‧科利奇奧 (Vincent Colicchio)。

Yes.

是的。

Good morning, Dale.

早上好，戴爾。

Nice quarter.

不錯的季度。

Curious if your TOP20 vendors grew in line with the overall business.

好奇您的 TOP20 供應商的成長是否與整體業務保持一致。

Yeah, I wouldn't say ALL20 of them, but the core of them, that's what's really driving the growth on organic side then.

是的，我不會說全部 20 個，但它們的核心是真正推動有機方面成長的因素。

So it is, we still have some new entrants into the TOP20.

確實如此，我們仍然有一些新進入者進入TOP20。

You know if you look at the 14 through 20 you know there's more of them as you go down the line card.

您知道，如果您查看 14 到 20，您就會知道，沿著線路卡查看，還會有更多。

So, they'll jump up and it depends.

所以，他們會跳起來，要看情況。

I mean, if you look at, you know, Q3 historically heavily into the public sector space.

我的意思是，如果你看看，你知道，第三季歷史上大量進入公共部門領域。

So we'll see the vendors that are focused on that increase in that area but nothing out of the ordinary.

因此，我們會看到供應商專注於該領域的成長，但沒有什麼異常。

And I'm curious, I assume security continues to drive lead growth amongst your technology segments.

我很好奇，我認為安全性將繼續推動技術領域的領先成長。

But I'm curious if there's any technology segments that perform better or worse than expected outside of that.

但我很好奇除此之外是否還有任何技術領域的表現比預期更好或更差。

Yeah, as drew mentioned, you know, vast data, we talked about it.

是的，正如德魯所提到的，我們討論過大量數據。

It's a vendor that we signed, you know, on the UK side with the acquisition of Spinnaker and then brought it to the US.

你知道，這是我們在收購 Spinnaker 時在英國方面簽署的供應商，然後將其帶到美國。

So had our first order come in, it was size of a lot of North America and Canada, we're starting to see a pick up in, you know, in the States.

因此，如果我們的第一筆訂單達到了北美和加拿大大部分地區的規模，我們開始看到美國的訂單量增加。

So that's going to be lumpy.

所以這會變得凹凸不平。

So you'll see that, and we'll talk about that as the orders come in.

所以你會看到這一點，我們會在收到訂單時討論這一點。

But outside of that, security is still driving a lot of it and security is now such a big swath of everybody, you know, having security in their name, whether it's back up, whether it's you know, retention of data, you know, they're going to do some kind of security play, but it is still that cyber security is the, the and also the amount of vendors that come to us with security flare to us is out of those 29 we evaluated, probably two thirds of them were some type of security platform or product and the ones that, you know, we just have too much of an overlap, we just pass on and because we've already, you know, spent the time in and onboarding and launching, you know, the ones we have in our portfolio.

但除此之外，安全性仍然在很大程度上推動著安全性的發展，安全性現在已經成為每個人的重要組成部分，你知道，以他們的名義擁有安全性，無論是備份，無論是資料保留，你知道，他們將採取某種安全措施，但網路安全仍然是最重要的，而且在我們評估的 29 家供應商中，向我們提供安全訊號的供應商數量可能佔三分之二它們是某種類型的安全平台或產品，您知道，我們只是有太多重疊，我們只是傳遞，因為我們已經花時間在入職和啟動上，您知道，我們的投資組合中有哪些。

And drew your adjusted G&A levels relative to AGB were relatively efficient.

並得出調整後的一般行政費用水準相對於 AGB 是相對有效的。

Is that a sustainable level or do you plan to make investments that will bring that to more normal levels?

這是一個可持續的水平，還是您計劃進行投資以使其達到更正常的水平？

Well, our goal as we've stated here from time to time is that we really would like that SG&A expense level as a percentage of AGB to be in that 3% range.

嗯，我們的目標正如我們不時在這裡所說的那樣，我們確實希望 SG&A 費用水平佔 AGB 的百分比在 3% 的範圍內。

Part of that comes with scale and leverage which we benefited from both data solutions and from Douglas Stewart Software.

其中一部分來自於規模和槓桿作用，我們從數據解決方案和道格拉斯·斯圖爾特軟體中受益。

So we'll continue you to invest in teams, whether it's renewal teams, it's additional sales people supporting a particular vendor markets.

因此，我們將繼續對團隊進行投資，無論是更新團隊還是支援特定供應商市場的額外銷售人員。

But again, that growth in dollars should continue to be flatter than the growth in the AGB, right?

但同樣，美元的成長應該會繼續低於 AGB 的成長，對吧？

So there'll be incremental dollar growth over time, but as a percentage, it should hopefully continue to be in that 3% range.

因此，隨著時間的推移，美元將會逐漸增長，但從百分比來看，它應該有望繼續保持在 3% 的範圍內。

And, and Dale, will the dock region become a priority for an acquisition?

而且，戴爾，碼頭區會成為收購的優先事項嗎？

Yeah, I've talked about it probably, you know, for the last three or four quarters it is and it's based on, you know, looking in a couple things where vendors are asking us to go from our Europe operations.

是的，我可能已經談論過這個問題，你知道，在過去的三、四個季度裡，它是基於，你知道，研究了供應商要求我們退出歐洲業務的幾件事。

Gerard Brophy runs that team based on just the market analysis of GDP and where some of our competitors are not.

傑拉德·布羅菲 (Gerard Brophy) 管理該團隊僅基於 GDP 的市場分析，而我們的一些競爭對手則不然。

So, we're going to fill that void with a, you know, emerging tech that we actually sell to.

因此，我們將用我們實際銷售的新興技術來填補這一空白。

So, you know, the big GDP market in the dock region, we've got a great job, a guy on the ground with Martin Bechler on the ground in Munich and we'll just keep expanding there and it will also help us of that through some of the potential acquisitions we're looking at and have been looking at.

所以，你知道，碼頭地區的 GDP 市場很大，我們有一份很棒的工作，有一個人在慕尼黑，馬丁貝克勒也在現場，我們將繼續在那裡擴張，這也將幫助我們通過我們正在考慮和一直在考慮的一些潛在收購。

And should we expect somewhat of a pause before you do another acquisition here?

在您在這裡進行另一次收購之前，我們是否應該期待稍微停頓一下？

Yeah, no, 2025.

是的，不，2025 年。

I mean, we've always said that, you know, it's 1 to 2 per year.

我的意思是，我們總是說，你知道，每年 1 到 2 次。

You know, we've used cash on all of our acquisitions.

你知道，我們所有的收購都使用了現金。

It really depends on the size.

這實際上取決於尺寸。

But, you know, we're, if you look at what we're planning on doing, it's pretty much the same we've been doing over the last three or four years.

但是，你知道，如果你看看我們計劃要做的事情，你會發現我們在過去三、四年裡一直在做的事情幾乎是一樣的。

I'll go back in the queue.

我會回到隊列中。

Nice job.

幹得好。

Thanks.

謝謝。

Thanks then.

那就謝謝了。

Bill Dezellem, Tieton capital

Bill Dezellem，蒂頓資本

Thank you.

謝謝。

Let me start with just a super small question.

讓我從一個非常小的問題開始。

You had 609,000 of acquisition related costs in this quarter.

本季您的購置相關成本為 609,000。

Did, did that happen to be lease termination severance kind of what were those activities please?

請問，這是否屬於終止租約遣散費，這些活動是什麼？

In terms of the M&A cost?

就併購成本而言？

Yeah, the 609,000.

是的，609,000。

What were those that cost actually.

那些實際花費是多少？

For pre predominantly built professional services associated with the transaction?

對於與交易相關的預先建立的專業服務？

So, we had some, expense associated with data solutions.

因此，我們有一些與數據解決方案相關的費用。

As we wrap up their earnout, we had some carry over expenses related to Douglas Stewart Software services, which we closed on the 31st of July and then some ongoing investments as we continue to explore opportunities.

當我們結束他們的收益時，我們有一些與 Douglas Stewart Software 服務相關的結轉費用，我們在 7 月 31 日關閉了該服務，然後在我們繼續探索機會的過程中進行了一些持續投資。

Great, that's helpful.

太好了，很有幫助。

And as you think about future acquisitions, is there generally, would you anticipate that there would be much in terms of severance or closing facilities, etc. or you really just bringing them under your umbrella and, and letting them run and be as efficient as, they choose to be?

當你考慮未來的收購時，一般來說，你是否預計會有很多遣散費或關閉設施等方面的費用，或者你真的只是將它們置於你的保護傘之下，讓它們運行並像以前那樣高效？

Yeah, and that's a good question bill.

是的，這是一個很好的問題法案。

The if we look at it every, of course, every acquisition is a little different.

當然，如果我們每一次收購都會有所不同。

Sometimes you have the sellers staying on board, you know, like I focus on, you know, culture first and then you take a look at their strategic fit within client where they're going to go with their vendors look like and then a geographic reach to maybe, you know, that we're not into.

有時你會讓賣家留在船上，你知道，就像我首先關注文化，然後你看看他們在客戶中的戰略契合度，他們將與他們的供應商合作，然後是地理區域也許，你知道，我們不感興趣。

So if you, if I look at our last five acquisitions, we have some of the operators that have stayed on board, but we've never had gone in and saying, okay, it's the top tier of execs that are going to deal with a big service play.

因此，如果你，如果我看看我們最近的五次收購，我們有一些運營商留在了船上，但我們從來沒有進去說，好吧，這是要處理的頂級高管一場盛大的服務比賽。

You know, the one, the with the data solutions in Ireland, Michael stayed on for six months and then moved on.

你知道，邁克爾在愛爾蘭的數據解決方案中待了六個月，然後就離開了。

You know, as he retired, but they're all going to be different.

你知道，隨著他退休，但他們都會有所不同。

But I don't see a big, you know, service play because that, that wouldn't be a good fit for us, right?

但我沒有看到大的，你知道的，服務遊戲，因為那不適合我們，對吧？

It wouldn't be a cultural if we're going to go in and just take, you know, I guess the core part of the business and not have the people that are running it because we don't want to run a company in Germany.

如果我們要進入並只是採取，你知道，我想業務的核心部分，而不是讓人們來運營它，那麼它就不是一種文化，因為我們不想在德國。

We want to have a culture that fits with ours that we can just continue to expand on what we're doing.

我們希望擁有一個適合我們的文化，這樣我們就可以繼續擴展我們正在做的事情。

And they can see from our original, you know, plan of us acquiring and expanding as we think technology starts in North America and moves through the rest of the globe.

他們可以從我們最初的收購和擴張計劃中看到，因為我們認為技術始於北美並傳播到全球其他地區。

So, we want to be able to launch it very quickly there and just use the resources of the company we acquired.

因此，我們希望能夠在那裡非常快速地推出它，並且只使用我們收購的公司的資源。

Dale.

戴爾.

That's, very helpful.

這非常有幫助。

Do you find in in your acquisition?

您在收購中找到了嗎？

Process that mindset ends up being an advantage and that you end up closing more deals because the, because the seller likes that approach as opposed to a fear or a knowledge that there will just be a gutting of the, of the people part of the organization.

這種心態最終會成為一種優勢，並且最終會達成更多交易，因為賣家喜歡這種方法，而不是擔心或知道組織中的人員會遭到破壞。

Yeah, here's my you know, and I just, I'm super open with the potential target.

是的，這是我的，你知道，我只是，我對潛在目標非常開放。

And you know, some of the team members that are still with us from our first acquisition.

你知道，有些團隊成員在我們第一次收購時仍然和我們在一起。

Carlos runs our North American vendor management team and we acquired them in 2020 part of interwork acquisition.

Carlos 負責管理我們的北美供應商管理團隊，我們於 2020 年作為 interwork 收購的一部分收購了他們。

I said, listen, just reach out to my three or four people that are still with us of acquired companies and let them tell you know, I don't want to be on the call.

我說，聽著，聯絡我的三、四個人，他們仍然在我們被收購的公司裡，讓他們告訴你，我不想參加電話會議。

You explain, you know what your experience was when clime acquired you.

你解釋說，你知道當氣候控制你時你的經驗是什麼。

You know what the experience for your team members, you know what actually happened.

您知道您的團隊成員的經驗是什麼，您知道實際發生了什麼。

But the ones that we're targeting and I'll take the SS on it because of North America and it was a little different because we wanted to get into a, you know, the K-12 and high red market and really start a same local practice.

但我們的目標是 SS，因為北美，這有點不同，因為我們想進入 K-12 和高紅色市場，並真正開始一個相同的當地做法。

But the rest of them in Europe, if you look and you ask, okay, what is your number one challenge?

但是歐洲的其他人，如果你觀察並問，好吧，你面臨的首要挑戰是什麼？

And the number one challenge is getting to sign vendors because you have to pretty much come to the States build relationships with, you know, wherever these vendors are located.

第一個挑戰是與供應商簽約，因為你幾乎必須來到美國與這些供應商建立關係，無論這些供應商位於何處。

Of course, most of them, a lot of the Silicon Valley and, and the northeast, you have to build them and then convince them that you can actually sell into your region in Europe and beyond.

當然，他們中的大多數人，很多矽谷和東北部地區，你必須建造它們，然後讓他們相信你實際上可以向歐洲及其他地區的地區銷售產品。

So that's the number one challenge.

所以這是第一個挑戰。

If that's the number one challenge, we already have like a business fit because we launch in North America with a global contract and we can take it into their sales teams.

如果這是首要挑戰，那麼我們已經有了業務契合度，因為我們在北美推出了全球合同，我們可以將其納入他們的銷售團隊。

What do sales people want?

銷售人員想要什麼？

They want more things to sell.

他們想要賣更多的東西。

So that's pretty much across the board of the companies that we've acquired in Europe.

所以這幾乎是我們在歐洲收購的所有公司的情況。

Great.

偉大的。

That's very helpful.

這非常有幫助。

And then historically, the fourth quarter has been meaningfully stronger than any other quarter of the year.

從歷史上看，第四季的表現明顯強於一年中任何其他季度。

Is there anything about this year that you think will make that different?

您認為今年有什麼事情會讓情況有所不同嗎？

Or would it be reasonable to assume the fourth quarter will be meaningfully larger than I guess it would be this quarter since this is your largest quarter of the year so far?

或者假設第四季度將比我預計的本季大得多是否合理，因為這是您今年迄今為止最大的季度？

Yeah, it'll, you know, fourth quarter is because just history, right in the company, people are distinguishing budgets.

是的，你知道，第四季是因為歷史，就在公司裡，人們正在區分預算。

People are renewing their licenses going into the new year.

進入新的一年，人們正在更新他們的駕照。

You know, you'll see, you know, Douglas Stewart, you know, if you look at their Q1 is usually one of their lighter quarters as they're building up to the education market which 48 of the states and their fiscal year, June 30th.

你知道，你會看到，你知道，道格拉斯·斯圖爾特，你知道，如果你看看他們的第一季通常是他們較輕鬆的季度之一，因為他們正在建立教育市場，其中48 個州及其財政年度， 6 月 30 日。

So, you see that they're building up what people are going to buy and then that'll pick up, you know, their best four months or, you know, June or July through November or October.

所以，你看到他們正在建立人們要購買的東西，然後這將在他們最好的四個月，或者，你知道，六月或七月到十一月或十月中回升。

So, you know, Q4 is, it's, it's going to be strong as well.

所以，你知道，第四季也會很強勁。

We get to see the renewals that are coming up or they're not going to be renewed and, you know, like we say most of our renewals, it's a new stream for us.

我們可以看到即將到來的續訂或不會續訂，你知道，就像我們所說的大多數續訂一樣，這對我們來說是一個新的串流。

Whether it's a staff model or it's reoccurring, you know, on the licensing.

無論是員工模式或是許可方面的重複出現。

So, I, we don't see anything different than that.

所以，我，我們沒有看到任何不同的東西。

We just have a lot of momentum going into Q4.

進入第四季我們有很大的動力。

I'll be H1st with you, we're still struggling with our, p, our efficiencies are not where we want them to be and, and everybody, you know, probably rolls their eyes and said, yeah, we've been there and done that.

我會和你在一起，我們仍然在努力，我們的效率沒有達到我們想要的水平，而且每個人，你知道，可能會翻白眼說，是的，我們一直在那裡並做到了。

Our team has done a great job.

我們的團隊做得很好。

We think we'll get to our operational efficiency by the end of, you know, this quarter, to go into 2025 almost on the same page.

我們認為，到本季末，我們將達到營運效率，並在 2025 年幾乎保持一致。

The good thing is all of our companies are on the, p outside of Douglas Stewart and they'll be on by the end of the year.

好消息是我們所有的公司都在道格拉斯·斯圖爾特以外的地方，他們將在今年年底投入使用。

Great.

偉大的。

Thank you.

謝謝。

And then one additional question, please.

請再提一個問題。

You know, for quite some time.

你知道，已經有一段時間了。

Now, several quarters, there continues to be just general macro question, whether the market is softening, improving, holding, steady, etc. etc So would you characterize what you are seeing here in the third quarter and through October, please?

現在，幾個季度以來，仍然存在一般性宏觀問題，市場是否正在疲軟、改善、持穩、穩定等。

So I'll take it from the, beginning of us on boarding vendors that pipeline has been as strong as ever.

因此，我從我們剛開始加入供應商的人那裡得知，通路一直像以前一樣強大。

Vendors come to us and we kind of look at the vendors coming.

供應商來找我們，我們也會關注供應商的到來。

Are they coming?

他們來了嗎？

Because they're stagnant and they just need another route to market to try something different, right?

因為他們停滯不前，他們只需要另一條進入市場的途徑來嘗試不同的東西，對吧？

And that's not as attractive to us as a vendor that says, hey, I'm just getting ready to build up my channel practice.

這對我們來說並不像供應商說，嘿，我正準備建立我的通路實踐那麼有吸引力。

You guys are the emerging go to a distributor, you know, let's do that.

你們是新興的經銷商，我們就這麼做吧。

So we're still seeing that part of it.

所以我們仍然看到這一部分。

The other, the other side of it is we're in software bill.

另一方面，它的另一面是我們在軟體帳單中。

So we're not, we don't have logistic issues.

所以我們沒有，我們沒有後勤問題。

We don't have, you know, this the market's been talking about this refresh of Endpoint, you know, tablets and laptops and all the other stuff that goes with it.

我們沒有，你知道，市場一直在談論端點的更新，你知道，平板電腦和筆記型電腦以及所有其他與之相關的東西。

And it's supposed to happen in Q2 2024.

這應該發生在 2024 年第二季。

It didn't happen, picked up a little bit in Q3.

但這種情況並沒有發生，在第三季有所回升。

I was at the Canals event last week and they're talking about, you know, hey, that's going to have some recovery in Q4.

我上週參加了運河活動，他們正在談論，你知道，嘿，第四季度將會有一些復甦。

It'll help us, but it hasn't hurt us.

它會幫助我們，但不會傷害我們。

Because, Drew famously loves to save and, you know, people can't go without their security, the, they can't go without protecting their systems, they can't go without protecting their endpoints.

因為，德魯出了名地喜歡節省，而且，你知道，人們不能沒有安全，他們不能不保護他們的系統，他們不能不保護他們的端點。

You know, and even in the cloud, they have to be able to protect all the stuff that they have as their workflows, whether it's a hybrid workflow or it's an on prem workflow.

您知道，即使在雲端中，他們也必須能夠保護其工作流程中的所有內容，無論是混合工作流程還是本地工作流程。

And so, would you characterize the macro environment as being reasonably strong then?

那麼，您認為當時的宏觀環境是否相當強勁？

And just from your perspective alone.

僅從您的角度來看。

From where we sit in it's still very strong.

從我們所處的位置來看，它仍然非常強大。

You know, it is showing some of it in our Q3 results.

您知道，我們第三季的業績顯示了其中的一些內容。

And that we just don't see it down.

我們就是看不下去。

And if this point refresh that is supposedly coming it'll only help with us because everybody will say, okay, you know what, I've got all my new laptops deployed.

如果這一點據稱即將到來，它只會對我們有所幫助，因為每個人都會說，好吧，你知道嗎，我已經部署了所有新筆記型電腦。

You know, I should really take a look and say, do I have the right product to for protection on them?

你知道，我真的應該看看並說，我有合適的產品來保護它們嗎？

Great.

偉大的。

Thank you for taking all the questions.

感謝您回答所有問題。

Thank you for talking.

謝謝你的發言。

Thank you.

謝謝。

It appears we have no further questions at this time.

目前看來我們沒有其他問題了。

I'll turn the program back over to Dale Foster for any additional or closing remarks.

我將把節目交還給戴爾福斯特（Dale Foster）以供補充或結束語。

Thank you, operator.

謝謝你，接線生。

And I just want to thank all of our stakeholders as we continue to you know, drive time forward, continued focus on our core, which is really the premier company to launch new emerging technologies and that's, you know, ever expanding as we're North America and Europe and you know, still looking beyond that as well.

我只想感謝我們所有的利益相關者，因為我們繼續推動時間前進，繼續關注我們的核心，這確實是推出新興技術的首屈一指的公司，而且隨著我們的發展，它正在不斷擴展。 ，你知道，我們的目光也不僅限於此。

So, thank you all.

所以，謝謝大家。

Appreciate it.

欣賞它。

Thank you, ladies and gentlemen, this concludes today's event.

謝謝女士們、先生們，今天的活動到此結束。

You may now disconnect.

您現在可以斷開連線。