Conduent Inc (CNDT) 2025 Q1 法說會逐字稿

Greetings. Welcome to the Conduent Q1 2025 earnings conference call. (Operator Instructions) Please note this conference is being recorded.

問候。歡迎參加 Conduent 2025 年第一季財報電話會議。（操作員指示）請注意，本次會議正在錄音。

I will now turn the conference over to your host, David Chen, VP of Investor Relations. Thank you. You may begin.

現在，我將會議交給主持人、投資人關係副總裁 David Chen。謝謝。你可以開始了。

Thank you, operator, and thanks everyone for joining us today to discuss Conduent's first quarter 2025 earnings. I'm joined today by Cliff Skelton, our President and CEO; and Giles Goodburn, our CFO.

謝謝接線員，也謝謝大家今天加入我們討論 Conduent 2025 年第一季的收益。今天與我一起出席的還有我們的總裁兼執行長 Cliff Skelton 和財務長 Giles Goodburn。

This call is being webcast, and a copy of the slides used during this call, as well as the press release were filed with the SEC this morning on Form 8-K. This information, as well as the detailed financial metrics package are available on the investor relations section of the Conduent website.

這次電話會議正在進行網路直播，會議中使用的幻燈片副本以及新聞稿已於今天上午以 8-K 表格形式提交給美國證券交易委員會 (SEC)。此資訊以及詳細的財務指標包可在 Conduent 網站的投資者關係部分找到。

During this call, we may make statements that are forward-looking. These forward-looking statements reflect management's current beliefs, assumptions, and expectations and are subject to a number of factors that may cause actual results to differ materially from those statements.

在本次電話會議中，我們可能會做出前瞻性的陳述。這些前瞻性陳述反映了管理階層目前的信念、假設和期望，並受多種可能導致實際結果與這些陳述有重大差異的因素的影響。

Information concerning these factors is included in Conduent's annual report on Form 10-K filed with the SEC. We do not intend to update these forward-looking statements as a result of new information or future events or developments except as required by law.

有關這些因素的資訊包含在 Conduent 向美國證券交易委員會提交的 10-K 表年度報告中。除非法律要求，否則我們不會根據新資訊或未來事件或發展來更新這些前瞻性陳述。

The information presented today includes non-GAAP financial measures, because these measures are not calculated in accordance with US GAAP. They should be viewed in addition to and not as a substitute for the company's reported results.

今天提供的資訊包括非公認會計準則財務指標，因為這些指標不是按照美國公認會計準則計算的。它們應該被視為公司報告結果的補充而不是替代品。

For more information regarding definitions of our non-GAAP measures and how we use them, as well as the limitations to their usefulness for comparative purposes, please see our press release.

有關我們的非公認會計準則指標的定義、我們如何使用它們以及它們在比較目的中的實用性的局限性的更多信息，請參閱我們的新聞稿。

And now, I would like to turn the call over to Cliff.

現在，我想把電話轉給克里夫。

Thank you, David. You've just heard a new voice and David Chen, our new Head of Investor Relations. David has been with the company for a few years and also heads up our mergers and acquisitions team. Given the continuation of our portfolio rationalization efforts, we thought a strong connection between M&A and IR was important. So welcome, David.

謝謝你，大衛。您剛剛聽到了一位新的聲音，他是我們新任投資者關係主管 David Chen。David 在公司工作幾年，同時也是我們的併購團隊負責人。鑑於我們將繼續進行投資組合合理化努力，我們認為併購與投資人關係之間的緊密聯繫非常重要。歡迎您，大衛。

Now as you can tell already, you'll also hear the voice of Giles Goodburn, our former Head of IR and FP&A who now succeeds Steve Wood is our Chief Financial Officer. Steve has done a great work over the last four years has been a critical confident to me and has been preparing Coles for this position along the way as his successor.

現在，正如您已經知道的，您還將聽到 Giles Goodburn 的聲音，他是我們前 IR 和 FP&A 主管，現在接替 Steve Wood 擔任我們的財務長。史蒂夫在過去四年中做出了巨大貢獻，他是我的重要依靠，並且一直在為科爾斯做好接替他的準備。

I'd like to thank Steve for his hard work wise counsel and strong leadership as he moves on to another phase in his career. As always, I'll preamble the quarter, turn it over to Giles for the detailed numbers, and I'll close with some strategic thinking on why we feel optimistic in what some may call uncertain times.

我要感謝史蒂夫在職業生涯邁向新階段時所給予的辛勤工作、明智建議和強有力的領導。像往常一樣，我將對本季度進行序言介紹，然後將其交給 Giles 來提供詳細數據，最後我將進行一些戰略思考，解釋為什麼我們在某些​​人可能稱之為不確定的時期感到樂觀。

Let me start by saying Q1 represented a strong start to the year for us. We feel good about the adjusted revenue print of $751 million and particularly good about adjusted EBITDA and EBITDA margin of $37 million and 4.9%, respectively. Nevertheless, we need to keep the pedal down in Q2 to meet those first half revenue expectations we laid out last quarter.

首先我想說的是，第一季對我們來說是一個強勁的開端。我們對調整後的 7.51 億美元收入感到滿意，尤其對調整後的 3,700 萬美元和 4.9% 的 EBITDA 和 EBITDA 利潤率感到滿意。儘管如此，我們仍需要在第二季度繼續努力，以實現上個季度製定的上半年收入預期。

We remain optimistic and still see Conduent achieving those guidance numbers and our 2025 exit rate metrics. New business signings were improved year-on-year, and we're expecting a relatively strong Q2 in sales.

我們仍然保持樂觀，仍然認為 Conduent 將實現這些指導數字和我們的 2025 年退出率指標。新業務簽約量較去年同期有所提高，我們預計第二季的銷售將相對強勁。

The good news is that while many suffer through macroeconomic uncertainty and the known and unknown effects of tariffs, we feel somewhat fortunate not to feel most of those headwinds. We only have one business, transportation, where we have very slight exposure to tariffs regarding equipment sales and implementations.

好消息是，儘管許多人遭受宏觀經濟不確定性以及關稅已知和未知的影響，但我們感到幸運，沒有感受到大部分不利因素。我們只有一項業務，即運輸，該業務對設備銷售和實施的關稅影響很小。

But for the most part, we are insulated. Of equal or more importance is the fact that while government efficiency efforts may create headwinds for some despite what may be the perception in the market, we see far more opportunity on the horizon given that nearly all of our government business is conducted to the state and local level and some of the federal entitlement pushdown efforts like Medicaid and Snap fraud reduction expectations play well for us as we roll out new and improved fraud prevention capabilities.

但大多數情況下，我們是與世隔絕的。同樣或更重要的是，儘管政府效率努力可能會給一些人帶來阻力（儘管市場對此有不同看法），但我們認為未來將有更多的機會，因為幾乎我們所有的政府業務都是在州和地方層面進行的，而且隨著我們推出新的和改進的欺詐預防能力，一些聯邦福利下推努力（如醫療補助和 Snap 欺詐減少預期）對我們有利。

I'll talk about that here in just a few minutes. Now for the past two years, we've discussed the character of the company as one of significant breadth with breadth of products, services, industries and public versus commercial segments comes higher cost in the center, management bandwidth consumption and higher technology costs.

我將在幾分鐘內討論這個問題。在過去的兩年裡，我們一直在討論該公司的特點，即其產品、服務、行業和公共部門的廣度顯著，而商業部門的廣度則意味著中心成本、管理頻寬消耗和技術成本更高。

We've consistently stated that a comparison of scarcity value on the outside versus synergy and growth opportunities on the inside will help us craft our portfolio rationalization plan. We've said that the rationalization efforts will allow for accelerated growth and use of proceeds that can reduce debt, increase profitability and or free up cash and capital for other efforts, such as share buybacks and in our case, buying out our activist shareholder.

我們一直表示，外部的稀缺價值與內部的協同效應和成長機會的比較將有助於我們制定投資組合合理化計畫。我們說過，合理化措施將加速成長，並利用收益減少債務、提高獲利能力或釋放現金和資本用於其他用途，例如股票回購，以及在我們的情況下，買斷我們的激進股東。

Over the past six months, we've considered where we are in the journey and concluded there are more assets to adjudicate and the cost in the center can come down, coincident with running the company in a more segmented way.

在過去的六個月裡，我們思考了我們所處的位置，並得出結論，有更多的資產需要裁決，中心成本可以下降，這與以更細分的方式經營公司相一致。

Let's turn to slide 5 and talk about what we have done. We completed three divestitures in 2024, generating nearly $800 million of net proceeds. We said we'd deploy roughly $1 billion and 85% of that target is complete, resulting in $639 million less debt and 61 million shares repurchased. Yet still, we believe there's more to do in 2025.

讓我們翻到第 5 張投影片，談談我們所做的事情。我們在 2024 年完成了三次資產剝離，產生了近 8 億美元的淨收益。我們說過我們將部署約 10 億美元，目前已完成該目標的 85%，從而減少 6.39 億美元的債務併回購 6,100 萬股股票。然而，我們仍然相信 2025 年還有更多事情要做。

We've targeted assets we think will generate another $350 million of proceeds, then surpassing our $1 billion target. Importantly, it's the capital deployment and the reduction in growth impediments that will add real value. While these potential rationalized assets would benefit greatly from the scale and synergies outside of Conduent, when the dust settles, we'll be in a far more opportunistic place.

我們已鎖定目標資產，認為它們將再產生 3.5 億美元的收益，超過我們 10 億美元的目標。重要的是，資本的部署和成長障礙的減少將增加真正的價值。雖然這些潛在的合理化資產將從 Conduent 以外的規模和協同效應中受益匪淺，但當塵埃落定時，我們將處於一個更機會的位置。

Slide 6 depicts that transformation journey, where we land on an optimized portfolio, two operating units serving different markets a thin center with a strong balance sheet and positive growth. Meanwhile, in a minute, I'll describe why I'm excited about where we're doubling down with respect to talent, portfolio growth opportunities, and proof points for the future.

投影片 6 描述了轉型歷程，我們獲得了優化的投資組合，兩個營運單位服務於不同的市場，而中心薄弱，資產負債表強勁，成長積極。同時，稍後我將描述為什麼我對我們在人才、投資組合成長機會和未來證明點方面加倍投入感到興奮。

But first, let me turn it over to Giles for the numbers. Giles?

但首先，讓我把數字交給 Giles。賈爾斯？

Thanks, Cliff. As we have done in the past, we are reporting both GAAP and non-GAAP numbers. The reconciliations are in our filings and in the appendix of the presentation.

謝謝，克里夫。正如我們過去所做的那樣，我們同時報告 GAAP 和非 GAAP 數據。對帳表在我們的文件和簡報的附錄。

Let's discuss our key sales metrics on slide 7 and 8. We had a stronger start to the year in 2025 than we did in 2024 with first quarter new business ACV, up 14% versus the prior year at $109 million. And with Q2 shaping up strongly, we expect to be well positioned at the midpoint of the year.

讓我們討論幻燈片 7 和 8 上的關鍵銷售指標。2025 年我們的開局比 2024 年更加強勁，第一季新業務 ACV 較上年增長 14%，達到 1.09 億美元。隨著第二季的強勁發展，我們預計今年年中將佔據有利地位。

In the quarter, we signed 10 new logos and expanded relationships with 20 existing clients through new capability sales. Government ACV was up sequentially again this quarter, and we believe this trend will continue in Q2.

本季度，我們簽署了 10 個新標誌，並透過新功能銷售擴大了與 20 個現有客戶的關係。本季政府 ACV 再次環比上漲，我們相信這一趨勢將在第二季度繼續延續。

New business TCV was up 96% versus the prior year at $280 million with approximately one-third of that TCV being generated by an eight-year deal in our international transit business with our client in Lima, Peru, which also helped drive the average contract length up to 4.2 years for the quarter.

新業務 TCV 較上年增長 96%，達到 2.8 億美元，其中約三分之一的 TCV 來自我們與秘魯利馬客戶簽訂的八年期國際運輸業務協議，這也有助於將本季度的平均合約期限推高至 4.2 年。

The net ARR activity metric, our combined measure of wins, losses, pricing effects and other contractual changes was positive and sequentially higher again this quarter at $116 million. Our qualified ACV pipeline remains strong at $3.2 billion, which is up 16% year-over-year and 3% since the beginning of 2025. Both our government and commercial segments have grown their qualified ACV pipeline significantly over the last 12 months. positioning us well to hit our growth targets in the near term.

淨 ARR 活動指標（我們對盈利、虧損、定價效應和其他合約變化的綜合衡量）本季為正值，且環比再次上升至 1.16 億美元。我們的合格 ACV 管道保持強勁，達到 32 億美元，年成長 16%，自 2025 年初以來成長了 3%。過去 12 個月，我們的政府和商業部門的合格 ACV 管道均大幅成長，這為我們在短期內實現成長目標奠定了良好的基礎。

Let's turn to slide 9, and review our Q1 2025 P&L metrics. Adjusted revenue for Q1 2025 was $751 million compared to $821 million in Q1 2024, down 8.5% year-over-year. This was predominantly driven by our government segment, which we foreshadowed in Q4 earnings, and I'll discuss in more detail in a moment.

讓我們翻到第 9 張投影片，回顧 2025 年第一季的損益指標。2025 年第一季調整後營收為 7.51 億美元，而 2024 年第一季為 8.21 億美元，年減 8.5%。這主要是由我們的政府部門推動的，我們在第四季度的收益中預示了這一點，稍後我將更詳細地討論。

Adjusted EBITDA for the quarter was $37 million, as compared to $36 million in Q1 2024. And our adjusted EBITDA margin of 4.9% is up 50 basis points year-over-year and sequentially higher versus Q4 2024.

本季調整後 EBITDA 為 3,700 萬美元，而 2024 年第一季為 3,600 萬美元。我們的調整後 EBITDA 利潤率為 4.9%，較去年同期成長 50 個基點，與 2024 年第四季相比也有所上升。

There were an unusually high number of onetime items in the quarter, which on a net basis and due to the mix of items drove almost the 0.5 point deterioration in revenue but had a positive impact on adjusted EBITDA margin of almost 1 point.

本季一次性專案數量異常高，從淨值來看，由於專案組合的原因，導致收入下降近 0.5 個百分點，但對調整後的 EBITDA 利潤率產生了近 1 個百分點的正面影響。

Let's turn to slide 10 and review the segment results. the Q1 2025 commercial segment adjusted revenue was $402 million, down 4.1% as compared to Q1 2024. New business continues to outpace loss business in this segment. However, we are experiencing some volume degradation in our largest commercial client, which is driving revenues lower.

讓我們翻到第 10 張投影片，回顧一下分部表現。 2025 年第一季商業部門調整後營收為 4.02 億美元，與 2024 年第一季相比下降 4.1%。該領域的新業務持續超過虧損業務。然而，我們最大的商業客戶的銷售量有所下降，導致收入下降。

We previously announced the decision to add around 2,500 additional seats of capacity in some of our offshore delivery centers, which go live later this quarter. To date, we have increased approximately 1,500 revenue-generating seats in these geographies to fill some of that capacity.

我們先前宣布決定在一些離岸交付中心增加約 2,500 個額外座位容量，這些中心將於本季稍後投入使用。到目前為止，我們已經在這些地區增加了約 1,500 個創收座位，以填補部分容量。

Adjusted EBITDA was down 11% year-over-year and adjusted EBITDA margin of 10% was down 70 basis points year-over-year. The drivers here were lower revenue, higher usage of central technology costs as well as some residual impact of stranded cost as we complete the transition of the casualty claims business to the buyer.

調整後 EBITDA 年減 11%，調整後 EBITDA 利潤率為 10%，年減 70 個基點。這裡的驅動因素是收入下降、中央技術成本使用率上升以及在我們完成意外傷害索賠業務向買方的轉變時擱淺成本的一些殘餘影響。

Government segment adjusted revenue for the quarter was down 16% at $216 million. Adjusted EBITDA was $38 million, down 31% year-over-year and adjusted EBITDA margin of 17.6%. We laid this out in the fourth quarter earnings, where we said total company revenue would be down in the first half of 2025 with most of the impact coming from the government segment in the first quarter.

政府部門本季調整後營收下降 16% 至 2.16 億美元。調整後 EBITDA 為 3,800 萬美元，年減 31%，調整後 EBITDA 利潤率為 17.6%。我們在第四季財報中闡述了這一點，我們表示，2025 年上半年公司總營收將下降，其中大部分影響來自第一季的政府部門。

The primary driver here is the effect of a large government health care contract where the contract was terminated for reasons other than performance in Q1 2024, which at this point has now been fully lapped. This segment was also negatively impacted by approximately $8 million top and bottom by the onetime items I mentioned earlier, predominantly related to the establishment of reserves for operational service levels.

這裡的主要驅動因素是一項大型政府醫療保健合約的影響，該合約因 2024 年第一季的履行以外的原因而終止，目前該合約已完全終止。這部分業務也受到我之前提到的一次性專案的負面影響，最高和最低分別約為 800 萬美元，主要與建立營運服務水準儲備有關。

Our Government Services business in partnership with Microsoft has been making strong progress with their investments in AI for earlier identification of fraud activity in our payments programs and we're starting to see the return on these investments in our financials with decreasing fraud expense.

我們的政府服務業務與微軟合作，在人工智慧方面的投資取得了長足的進步，以便更早地識別我們支付計劃中的詐欺活動，我們開始看到這些投資在我們的財務中帶來回報，詐欺費用正在減少。

This is just one of a number of solutions that could benefit our government clients as they look to drive efficiency and savings. Cliff will discuss this topic in more depth later in this presentation.

這只是眾多可以幫助我們的政府客戶提高效率和節省成本的解決方案之一。Cliff 將在本次演講的後面更深入地討論這個主題。

Transportation segment adjusted revenue was $133 million, down 7.6% year-over-year, while adjusted EBITDA was $6 million in the quarter versus $1 million in Q1 2024. Segment adjusted EBITDA margin was 4.5% for the quarter, up 380 basis points versus Q1 2024.

運輸部門調整後營收為 1.33 億美元，年減 7.6%，本季調整後 EBITDA 為 600 萬美元，而 2024 年第一季為 100 萬美元。本季分部調整後 EBITDA 利潤率為 4.5%，較 2024 年第一季上升 380 個基點。

This segment benefited from stronger operational performance levels in the quarter and also from the absence of employee termination costs incurred in the prior year relating to the nonretained portion of a tolling contract.

該部門受益於本季度更強的營運績效水平，同時也受益於上一年沒有因收費合約的非保留部分而產生的員工解僱費用。

In the first quarter, our tolling business played an integral role in implementing congestion management pricing in New York city, the first of it's kind in the United States, by facilitating the total transaction and payment processing through market-leading Vector platform.

第一季度，我們的收費業務透過市場領先的 Vector 平台促進了整體交易和支付處理，在紐約市實施擁堵管理定價（美國首個此類定價）中發揮了不可或缺的作用。

This contributed to our Q1 financial results and also enables significant revenue for our clients. Unallocated costs were $47 million for the quarter versus $65 million in Q1 2024. This included an $8.5 million benefit from the recovery of legal costs from one of our insurance carriers related to the state of Texas matter that settled in 2019, as well as positive impacts from our cost efficiency programs across our corporate functions.

這對我們的第一季財務表現做出了貢獻，也為我們的客戶帶來了可觀的收入。本季未分配成本為 4,700 萬美元，而 2024 年第一季為 6,500 萬美元。其中包括從我們的一家保險公司收回的與 2019 年解決的德克薩斯州案件有關的法律費用中的 850 萬美元收益，以及我們公司各職能部門的成本效率計劃帶來的積極影響。

Finally in relation to the previously disclosed cyber event, while we did not experience material financial impact to our operations, we did incur $3 million and accrued $22 million of nonrecurring expenses in the first quarter related to the event based on potential notification requirements and we do maintain a cyber insurance policy for any excess.

最後，關於先前披露的網路事件，雖然我們的營運沒有受到重大財務影響，但根據潛在的通知要求，我們在第一季度確實花費了 300 萬美元，並累計了 2200 萬美元與該事件相關的非經常性費用，並且我們確實為任何超額費用購買了網路保險。

Let's turn to slide 11 and discuss the balance sheet and cash flow. We ended the quarter with approximately $293 million of total cash on balance sheet and our $550 million revolving credit facility was largely undrawn. As a reminder, we are generally a user of cash in the first half of the year with positive cash generation in the second half.

讓我們翻到第 11 張投影片，討論一下資產負債表和現金流。截至本季末，我們的資產負債表上總現金約為 2.93 億美元，而我們的 5.5 億美元循環信貸額度大部分尚未提取。提醒一下，我們通常在上半年使用現金，下半年產生正現金。

Our adjusted free cash flow for the quarter was negative $74 million. This is significantly better than Q1 2024 when adjusting for the positive impacts of the tax refund and the operating cash flow from divested assets in the prior year.

本季調整後的自由現金流為負 7,400 萬美元。考慮到退稅的正面影響和上一年剝離資產的營運現金流，這一表現明顯好於 2024 年第一季。

On April 30, we received the final payment of $50 million relating to the curbside management and public safety divestiture. This completes the receipt of proceeds from phase one of our divestiture program. Sequentially, our net leverage ratio went up from the prior quarter to 2.7 turns.

4 月 30 日，我們收到了與路邊管理和公共安全剝離相關的最後一筆 5000 萬美元付款。這就完成了我們資產剝離計畫第一階段收益的接收。我們的淨槓桿率較上季上升至2.7倍。

We've said before that this will increase for the next couple of quarters as we annualize the divested adjusted EBIT in the calculation, which will be partially offset by the sequential recovery in adjusted EBITDA as we work through our stranded cost and efficiency programs.

我們之前曾說過，隨著我們在計算中將剝離的調整後息稅前利潤 (EBIT) 年度化，這一數字將在未來幾個季度內增加，而隨著我們實施擱淺成本和效率計劃，調整後息稅前利潤 (EBITDA) 的連續復甦將部分抵消這一數字。

Once this work is completed during the second half of 2025, you'll see this net leverage ratio returning to around 1.5 turns and then moving more towards the one turn we've previously outlined in our midterm outlook as we exit 2025.

一旦這項工作在 2025 年下半年完成，您將看到淨槓桿率回到 1.5 倍左右，然後在 2025 年結束時進一步接近我們之前在中期展望中概述的 1 倍。

Capital expenditure for the quarter was 2.7% of revenue, and we have no concerns in meeting our near-term debt maturity commitments.

本季的資本支出佔收入的 2.7%，我們無需擔心履行近期債務到期承諾。

Let's turn to slide 12 and look at our 2025 outlook. Our full year 2025 outlook remains unchanged as we stated in Q4 earnings. The assumption built into this guide is one of broadly stable macroeconomic conditions. Since we established this guide in February, there has been significant uncertainty relating to tariffs on international trade.

讓我們翻到第 12 張投影片，看看我們對 2025 年的展望。正如我們在第四季度收益中所述，我們對 2025 年全年的展望保持不變。本指南的假設是宏觀經濟條件大致穩定。自從我們在二月制定本指南以來，國際貿易關稅方面存在很大的不確定性。

However, our exposure to trade tariffs is minimal and contained to very small elements of the supply chain in our transit business supporting our US clients. As a reminder, the majority of revenue in the transit business is generated internationally with supply chains outside the US.

然而，我們受到的貿易關稅影響很小，並且只限於支援美國客戶的運輸業務中供應鏈的一小部分。需要提醒的是，運輸業務的大部分收入是透過美國境外的供應鏈在國際上產生的。

The government segment is predominantly centered on state and local government where we provide technology, eligibility and payments programs that support essential services for their constituents. To date, we have not seen any material impact to these programs from the shifting federal administration landscape and remain engaged with our state and local clients.

政府部門主要集中在州和地方政府，我們為其選民提供支持基本服務的技術、資格和支付計劃。到目前為止，我們尚未看到聯邦政府管理格局的變化對這些項目產生任何實質影響，並且我們仍與州和地方客戶保持聯繫。

We expect Q2 2025 revenue to be sequentially higher than Q1, but slightly below Q2 2024 and adjusted EBITDA margin to be in the range of 4% to 4.5%. We continue to expect to post top line growth in the second half of the year, and margin to expand as we work through our cost programs.

我們預計 2025 年第二季的營收將環比第一季成長，但略低於 2024 年第二季度，調整後的 EBITDA 利潤率將在 4% 至 4.5% 之間。我們繼續預計下半年營收將有所成長，隨著成本計畫的實施，利潤率也將有所提高。

These outlooks have not been adjusted for any Phase II divestiture activity that Cliff discussed earlier and therefore, are representative of the company as it exists today.

這些展望並未根據 Cliff 先前討論過的任何第二階段資產剝離活動進行調整，因此代表了公司目前的狀況。

Lastly, I would like to thank Cliff and the Board for the opportunity they have given me as CFO of the company. And I would also like to thank Steve for his partnership over the last four years, and I wish him well in the future. That concludes the financial review of first quarter 2025.

最後，我要感謝 Cliff 和董事會給予我擔任公司財務長的機會。我還要感謝史蒂夫過去四年來的合作，並祝福他未來一切順利。2025 年第一季的財務審查到此結束。

And I'll hand it back to Cliff his broader view of the business. Cliff?

我將把他對這個業務的更廣泛的看法交還給克里夫。懸崖？

Thanks, Giles. Well, it was good to hear the continuation of a British accent from our CFO. The numbers just described while now executed represent what we've been foreshadowing for the last two years. We continue to be on track. Also, I thought it would be important to outline some other real opportunities going forward.

謝謝，吉爾斯。嗯，很高興聽到我們的財務長繼續用英國口音講話。剛才描述的數字現在執行式代表了我們過去兩年來一直在預測的事情。我們將繼續走在正確的軌道上。此外，我認為概述一些未來的其他真正機會也很重要。

If you'll turn to slide 14, you'll see some of the nonfinancial performance proof points. Overall, AI and Gen AI remain at the forefront of what we're utilizing on behalf of our clients and their end users. As I've mentioned before, AI and RSpace is not hyped or sold. It's used to drive quality. We've rolled it out in our life at work portal, in our call centers and in our payment fraud space, which I'll talk about here in a minute.

如果您翻到第 14 張投影片，您會看到一些非財務績效證明點。總體而言，人工智慧和通用人工智慧仍然是我們為客戶及其最終用戶所利用的最前沿。正如我之前提到的，AI 和 RSpace 並沒有被炒作或出售。它用於提高品質。我們已經將它推廣到我們的工作入口網站、呼叫中心和支付詐欺領域，我將在稍後討論這些。

In commercial, we're seeing the fruits of our labor with our new client partner enterprise sales model, driving sales, pipeline and clients evidenced by all-time high NPS scores and Supplier of the Year awards.

在商業領域，我們透過新的客戶合作夥伴企業銷售模式看到了勞動成果，推動了銷售、通路和客戶的發展，這從歷史最高的 NPS 分數和年度供應商獎項中可見一斑。

We've also been tapped by many of our commercial clients to help them achieve their efficiency and cost reduction initiatives. The government business is turning the corner just as we said it would. Strong sales pipeline, improved retention and new talent are lining up for the turnaround we were planning for.

許多商業客戶也選擇我們來幫助他們實現效率和降低成本的計劃。正如我們所說的，政府事務正在出現轉機。強大的銷售管道、更好的保留率和新的人才正在為我們計劃的轉型做好準備。

And in transportation, we're seeing particular progress in market share improvement in transit where our new fare gates and card tap-and-go fare collection capabilities are selling well. We recently finalized and signed our new scope and plan with our biggest flagship client in the state of Victoria and Australia and new avenues are opening up in tolling as well.

在交通運輸領域，我們的市佔率取得了顯著的進步，我們的新閘機和感應卡收費功能銷售良好。我們最近與維多利亞州和澳洲最大的旗艦客戶敲定並簽署了新的範圍和計劃，收費方面的新途徑也正在開闢。

Just take a look at Governor Hochul's success in New York with congestion management pricing. That's our technology and many other states are watching closely is that is a perfect way to reduce congestion and drive revenue to the states.

只要看看紐約州長霍楚爾在交通擁堵管理定價方面的成功就知道了。這是我們的技術，許多其他州正在密切關注，這是減少交通擁堵和增加各州收入的完美方式。

Now let me focus for a minute on government efficiency. We like in AI, there is perhaps a misconception or two. The reality is as follows. We work primarily for the state governments. While federal entitlement funds often flow through the states, entitlements haven't been challenged, and we get paid by states to help them administer those funds and the eligibility for them.

現在讓我集中討論一下政府效率。我們喜歡人工智慧，但可能存在一兩個誤解。實際情況如下。我們主要為州政府工作。雖然聯邦福利基金經常流經各州，但福利並未受到挑戰，而且我們得到各州的報酬，以幫助他們管理這些基金及其資格。

As eligibility oversight increases, so [does] our work. By their very nature, entitlement programs are guaranteed programs, so the work we do is non-discretionary. Most of the limited federal work we do is as a sub for the Direct Express program utilized primarily for social security benefit distribution. Again, a program that sees no signs of reduction regardless of what vendor the program relies upon.

隨著資格監督的加強，我們的工作也加強。從本質上來說，福利計劃是保障計劃，因此我們所做的工作是非自由裁量的。我們所做的有限的聯邦工作大部分是作為 Direct Express 計劃的替代，主要用於社會安全福利分配。再次，無論該計劃依賴哪個供應商，都沒有看到減少的跡象。

Meanwhile, the President did say he's not touching social security payments. Absent this subcontractor business, less than 1% of our revenue is contracted with the federal government. We provide support to states for Snap or food stamps as well as Medicaid eligibility work.

同時，總統確實表示他不會動用社會安全金。如果沒有這項分包業務，我們的收入中與聯邦政府簽訂的合約就不到 1%。我們為各州提供 Snap 或食品券以及醫療補助資格工作的支援。

As you know, a good portion of Americans across the political spectrum rely on programs such as SNAP and Medicaid. Regardless, even if there is a reduction in funding pools, our business model is not dependent on funding per recipient.

眾所周知，美國各政治派別的相當一部分人依賴 SNAP 和 Medicaid 等計劃。無論如何，即使資金池減少，我們的商業模式也不依賴每個受助者的資金。

On the Medicaid side, we implement and manage States Medicaid technology administration platforms and process eligibility requests and enrollment programs, both of which likely become more voluminous if eligibility and fraud are further scrutinized.

在醫療補助方面，我們實施和管理各州醫療補助技術管理平台並處理資格申請和登記計劃，如果進一步審查資格和欺詐行為，這兩項工作可能會變得更加繁瑣。

Regarding SNAP, we earned revenue based on the number of cases, not the funding size per recipient. So here's the bottom line. If unemployment rises, it's an opportunity for us. If states increase their focus on Medicaid fraud and illegal recipients, it's an opportunity for us.

關於 SNAP，我們的收入是基於案件數量，而不是每個受助者的資金數量。所以這就是底線。如果失業率上升，這對我們來說是一個機會。如果各州加強對醫療補助詐欺和非法接受者的關注，這對我們來說是一個機會。

If Medicaid expansion goes away, it's an opportunity for us to reregister end users. If work requirements get further scrutinized in Medicaid or unemployment insurance, it's an opportunity for us. And as payment programs work to eliminate paper checks through dose for efficiency purposes, it's an opportunity for us.

如果醫療補助擴展計劃取消，這對我們重新註冊最終用戶來說是一個機會。如果醫療補助或失業保險對工作要求進行進一步審查，那麼對我們來說是一個機會。隨著支付程序為了提高效率而逐漸取消紙本支票，這對我們來說是一個機會。

Finally, turning to page 15. The biggest opportunity for us is in fraud reduction at large. The administration's efforts to reduce fraud waste and abuse fall into areas we can help solution. For example, we have proven in our AI project in collaboration with Microsoft in our payment card business that we can and do drastically reduce fraud by increasing fraud detection before it happens.

最後，翻到第15頁。對我們來說，最大的機會是全面減少詐欺行為。政府為減少詐欺、浪費和濫用所做的努力屬於我們可以幫助解決的領域。例如，我們在與微軟合作開展的支付卡業務的人工智慧專案中已經證明，我們可以透過在詐欺發生之前增強偵測來大幅減少詐欺行為。

We increased fraud detection rates and account takeover efforts by 150%. Those in the Government Accountability Office are focused on fraud in government programs like Medicaid and SNAP. We believe there are value-added services around account takeover fraud prevention and strengthening eligibility determinations using this address verification AI tool.

我們將詐欺偵測率和帳戶接管力道提高了 150%。政府問責局的人員主要關注醫療補助和 SNAP 等政府計畫中的詐欺行為。我們相信，使用此地址驗證 AI 工具可以提供圍繞帳戶接管詐欺預防和加強資格認定的增值服務。

There are almost 42 million SNAP recipients in this country, representing roughly 12% of the population. Notwithstanding administrative costs, when fraud occurs, Generally, the recipients suffer the monetary loss, not the government.

該國有近 4,200 萬 SNAP 受益人，約佔總人口的 12%。儘管有行政成本，但當發生詐欺時，一般來說，遭受金錢損失的是受助者，而不是政府。

We intend to help solve this problem with EBT chip cards and other fraud prevention capabilities being rolled out in our new card platform. We've now stood up a fraud prevention line of business where we intend to attack these problems in concert with administration efforts.

我們打算透過在我們的新卡平台上推出 EBT 晶片卡和其他防詐騙功能來幫助解決這個問題。我們現在已經建立了一條詐欺預防業務線，我們打算與管理部門協同努力解決這些問題。

Let me close by saying we're at a strategic inflection point. in the following ways, our renewed portfolio rationalization plan, leveraging government opportunities, new go-to-market program in the commercial space. congestion management programs, Tap & Go and new fare gates and new fraud reduction business and more.

最後，我想說，我們正處於一個策略轉折點。具體表現在以下幾個方面：我們更新了投資組合合理化計劃，利用政府機遇，在商業領域推出新的上市計劃、擁堵管理計劃、Tap & Go 和新的檢票口以及新的減少欺詐業務等等。

Meanwhile, our 55,000 associates work hard every day to make Conduent the best in quality and efficiency across our technology and business processing outsourcing landscape. We have a strong suite of technology solutions that when coupled with our hard-working and dedicated associates, provide outstanding results for our clients and their end users.

同時，我們的 55,000 名員工每天都在努力工作，使 Conduent 在我們的技術和業務處理外包領域中擁有最佳的品質和效率。我們擁有強大的技術解決方案，與我們勤奮敬業的員工相結合，為我們的客戶及其最終用戶提供卓越的成果。

In all cases, we want to be the best. Along the way, we intend to hit those 2025 exit rate marks and build the confidence we need in our current and potential investor base.

在任何情況下，我們都希望做到最好。在此過程中，我們打算達到 2025 年的退出率目標，並在我們現有和潛在的投資者群體中建立所需的信心。

Thank you for listening today. That concludes our program. And I'll now turn it over to the operator for questions. Operator?

感謝您今天的收聽。我們的節目到此結束。現在我將把時間交給接線員來回答問題。操作員？

(Operator Instructions) Pat McCann, NOBLE Capital.

（操作員指示）NOBLE Capital 的 Pat McCann。

Hey, thanks for taking my questions. Congrats on the quarter and a real quick congrats to Giles on taking over as CFO. My first question -- and my first question had to do with the -- what you were just talking about, Cliff, with regard to the government business. I understand like what you said that much of your government business is at the state and local level albeit some of that flows from the federal government from federal programs.

嘿，謝謝你回答我的問題。恭喜本季度取得的成績，並恭喜 Giles 接任財務長。我的第一個問題——我的第一個問題與您剛才談論的政府事務有關，克里夫。我理解您所說的，儘管部分政府業務來自聯邦政府的聯邦計劃，但大部分政府業務都在州和地方層級。

So I guess I'm wondering if you could give a little bit more detail as far as how some of these aspects of the push for efficiency in the government actually lead to an opportunity for you in that space rather than a detriment to your business there? Maybe I'll leave it at that for now.

所以我想知道您是否可以提供更詳細的信息，關於政府提高效率的某些方面實際上是如何為您在該領域帶來機會而不是損害您在那裡的業務的？也許我現在就先這樣。

It's a good question, Pat. Look, there's two ways to answer the question. A lot of the federal funds for entitlements are distributed through the states. And both Congress and the President have said they're not going to mess with or touch entitlements.

這是個好問題，帕特。瞧，有兩種方法可以回答這個問題。很多聯邦福利資金都是透過各州分配的。國會和總統都表示他們不會幹預或觸碰福利。

The administrative cost for the states are here is where the opportunity is for us. And so you take SNAP for example, where we have 21 states distributing food stamps we see that not diminishing. In the case of Summer SNAP, 16 of those have summer SNAP programs. Most of those have renewed the Summer SNAP programs.

各州的行政成本就在這裡，而我們的機會就在這裡。以 SNAP 為例，我們有 21 個州在發放食品券，我們看到這個數字並沒有減少。就夏季 SNAP 而言，其中 16 個有夏季 SNAP 計劃。其中大多數已更新了夏季 SNAP 計劃。

All those dollars are federal dollars, but the administrative costs are shared between the states and the Feds. All that is being reviewed but all that looks to be not touched. And all the indications are that they're not going to be touched. Where the opportunity arises is in areas like fraud that I mentioned during my script, which -- if you think about the fact that what dose and the administration has said is, look, there's fraud going on.

所有這些資金都是聯邦資金，但管理費用由各州和聯邦政府分擔。所有這些都在審查之中，但看起來卻並未受到影響。所有的跡像都表明他們不會受到影響。機會就出現在我在腳本中提到的詐欺等領域——如果你想想劑量和政府所說的事實，你看，確實存在欺詐行為。

There are people receiving Medicare benefits that shouldn't be getting them. And there are people that are getting unemployment insurance benefits that shouldn't be getting them. The opportunity for us is to find those folks that are not getting them and help the states fared out the issues and the problems and get paid for that process.

有些人享受著不該享受的醫療保險福利。有些人領取了不該領取的失業保險金。我們的機會是找到那些沒有得到這些幫助的人，並幫助各州解決這些問題，並從這個過程中獲得報酬。

And so we see it as upside. As I mentioned with respect to fraud, we've looked at address takeover fraud in our payment business. And we found a lot of duplicate addresses that should not have been in the mix where people were receiving duplicate payments fraudulently -- and we see the same kind of fraud process to address people that shouldn't be get in Medicaid benefits, for example, because they have duplicate addresses as a way to generate revenue for us.

因此我們認為這是有利的。正如我所提到的有關詐欺的問題，我們已經在支付業務中研究過地址接管詐欺。我們發現了許多不應該出現的重複地址，人們透過欺詐手段收到了重複的付款——我們也看到同樣的詐欺過程，例如，針對那些不應該獲得醫療補助福利的人，因為他們有重複的地址，以此來為我們創造收入。

Finally, you've seen in the press where MCOs oftentimes are getting paid twice for the same Medicaid member because people move and they don't change their address. And so what's happening is these MCOs are receiving federal funds that they shouldn't receive.

最後，您可能在媒體上看到過，由於人們搬家並且沒有更改地址，MCO 經常會為同一個 Medicaid 成員支付兩次費用。所以現在的情況是，這些 MCO 收到了他們不應該收到的聯邦資金。

Now they try and pay those back, but that's another area where we can fair it out areas where the federal government is paying too much money to the states or MCOs. So those are sort of some an overview of how we're attacking the problem.

現在他們試圖償還這些債務，但這是我們可以公平對待聯邦政府向各州或 MCO 支付過多資金的另一個領域。這些是我們如何解決這個問題的概述。

Great, thanks. And then I also wanted to touch on the cyber event. Could you say a little bit more about what actually happened in I'm getting the sense you guys are pretty much maybe through it. Can you touch on that as well as is pretty much behind you now?

太好了，謝謝。然後我還想談談網路事件。能再多說一點實際發生的事情嗎？我感覺你們可能已經度過了難關。您能談談這一點嗎？現在情況已經基本明了？

Well, look, all the costs of the cyber event are already baked in into our P&L. And so that's number one. Number two is, there was essentially no operational impact virtually no operational impact to the cyber event. We were, in some cases, only down for a couple of hours. The environment was restored almost immediately.

好吧，你看，網路事件的所有成本都已經計入我們的損益表中了。這是第一點。第二，網路事件基本上沒有對營運造成影響。在某些情況下，我們只會停機幾個小時。環境幾乎立即恢復。

The issue we're dealing with is the records issue. How much PII and PHI, if any, has been exfiltrated. And that's a very complex process that we're underway with now with our clients. And so yes, the event is behind us. all the aspects of what happened is behind us, all the protections and the vulnerabilities, if there were any, were mitigated but the examination of the data is still underway, and that's why we've put the reserve into the mix.

我們正在處理的問題是記錄問題。有多少 PII 和 PHI（如果有）已洩露。這是一個非常複雜的過程，我們現在正在與客戶一起進行。是的，事件已經過去了。所發生的一切已經過去了，所有的保護措施和漏洞（如果有的話）都得到了緩解，但數據檢查仍在進行中，這就是我們把儲備金納入其中的原因。

Great, thank you so much. I'll leave it there, and I jump back in the queue. Thanks a lot.

太好了，非常感謝。我會把它留在那裡，然後重新回到隊列中。多謝。

You bet.

當然。

Chris Sakai, Singular Research.

Chris Sakai，Singular Research。

Yeah, hi, good morning. I'm in for (inaudible) Given your progress in AI-driven solutions like fraud prevention and Gen AI assistance. Have you encountered any regulatory hurdles and deployment, particularly in sensitive government or health care applications?

是的，你好，早安。我支持（聽不清楚）鑑於你們在人工智慧驅動的解決方案（如詐欺預防和 Gen AI 援助）方面取得的進展。您是否遇到任何監管障礙和部署問題，特別是在敏感的政府或醫療保健應用中？

Chris, we really haven't. We're using AI in a couple of different ways, much of it in the commercial space. But as I previously mentioned, with respect to fraud, we're also using in the government space, primarily around fraud. In the commercial space, we use it for language smoothing for language translation, for IVR enhancements for portal enhancements and as I said, for fraud reduction efforts in the public sector.

克里斯，我們確實沒有。我們以幾種不同的方式使用人工智慧，其中大部分是在商業領域。但正如我之前提到的，關於欺詐，我們也在政府領域使用，主要針對詐欺。在商業領域，我們將其用於語言翻譯的語言平滑化、門戶增強的 IVR 增強，以及我所說的公共部門的欺詐減少工作。

But no, we really haven't encountered issues around privacy or mistakes from Gen AI. And we're not using it as a replacement for people. We're still heavily reliant on people and where we're in the people business, we continue to see the same amount of need for people in the complex environments. And AI is not really and doesn't appear to be a substitute for that. So the answer to your question directly is no. We have not seen any regulatory hurdles in the way.

但不，我們確實沒有遇到有關隱私或 Gen AI 錯誤的問題。我們不會用它來代替人類。我們仍然嚴重依賴人力，在人力業務領域，我們仍然看到在複雜的環境中對人力的需求同樣巨大。但人工智慧其實並不能取代這一點，而且看起來也不能。所以對你的問題的直接回答是「否」。我們沒有看到任何監管障礙。

Okay, thanks for that. And you mentioned that your business is relatively insulated from macroeconomic and geopolitical shocks. Are there any less obvious second order effects such as shifts in client procurement cycles or changes in government funding priorities that you're monitoring closely?

好的，謝謝。您提到，您的業務相對不受宏觀經濟和地緣政治衝擊的影響。是否存在一些不太明顯的二階效應，例如客戶採購週期的變化或政府資助重點的變化，您正在密切關注這些變化嗎？

We're not really experiencing that, Chris. I can tell you that what Giles and I mentioned was the one area of slight vulnerability for us is in our transportation business, transit specifically where we buy equipment and deploy equipment for fair gates and the like most of that business is international country to country as opposed to international to the US or China to the US. There's a little bit of transit business in the US, but very small in the grand scheme of things.

我們並沒有真正經歷過這種情況，克里斯。我可以告訴你，我和吉爾斯提到的我們的一個稍微脆弱的領域是我們的運輸業務，特別是運輸業務，我們購買設備和部署設備用於展會大門等，大部分業務是國際國家之間的運輸，而不是國際國家到美國或中國到美國。美國有少量的運輸業務，但從整體來看規模很小。

So we're not really vulnerable to the tariff situation. With respect to other government programs, one of the decisions Congress made yesterday was that the Fed matching rate for Medicaid technology and technology implementations where the federal government supplies 90% of the funding for all those implementations and technology in the Medicaid space at the state level will not be touched.

所以我們其實不會受到關稅情勢的影響。關於其他政府項目，國會昨天做出的決定之一是，聯邦醫療補助技術和技術實施的配套率將保持不變，即聯邦政府為州一級醫療補助領域的所有實施和技術提供 90% 的資金。

So we're not really feeling any hurdles to the progress that Giles laid out. In fact, as I mentioned, we see real opportunities.

所以我們其實並沒有感受到 Giles 提出的進展有任何障礙。事實上，正如我所提到的，我們看到了真正的機會。

I think the other piece, Chris, is that we maintain close relationships and close communication with our state and local government clients as well so that we know what's going on with them and how we can support and help them as things move forward.

克里斯，我認為另一點是，我們與州和地方政府客戶保持密切的關係和溝通，以便我們了解他們的情況，以及在事情進展過程中我們如何支持和幫助他們。

Okay, great. And then last for me, what criteria are you using to identify assets for divestiture and how do you plan to balance future proceeds between debt reduction, reinvestment, and potential shareholder returns?

好的，太好了。最後，您使用什麼標準來確定要剝離的資產，以及您計劃如何在債務減免、再投資和潛在股東回報之間平衡未來收益？

Let me take the first part of it and the second part, I'll turn it over to Giles. Look, we've said all along that the secret sauce is to figure out how we can be not as wide or as diverse and be more focused on synergies and growth capabilities internally. By the same token, we believe there are synergies and scarcity value on the outside for some of our assets.

讓我來談談第一部分，第二部分我將交給 Giles。瞧，我們一直說，秘訣在於弄清楚如何讓我們不那麼廣泛或多樣化，而更注重內部的協同效應和成長能力。同樣，我們相信我們的部分資產具有外部協同效應和稀缺價值。

And so the test we've put in place is where the scarcity values value opportunities. Where are the maximum multiples we can get if we look to divest? And versus what we can do internally with those same resources and we've identified what we see as another roughly, let's call it, $350 million of opportunity along that process flow that we intend to pursue in 2025. But Giles, why don't you comment.

因此，我們實施的測試是衡量稀缺價值和機會價值的。如果我們考慮撤資，我們能獲得的最大倍數在哪裡？與我們內部可以利用的相同資源相比，我們已經確定了另一個約 3.5 億美元的機會，我們打算在 2025 年實現這一過程。但是 Giles，為什麼不評論一下呢？

I think on the capital allocation side, they'll be similar to the first phase, Chris. We'll continue to maintain a balanced approach -- we've only got $85 million of debt left on the Term A. And we'll also continue to make investments internally, which is what we've done through Phase 1. If you look at some of the investments we've made internally around some of the things that Cliff alluded to earlier with AI, with increasing our capacity in some of our international delivery centers.

我認為在資本配置方面，它們將與第一階段類似，克里斯。我們將繼續保持平衡的做法——A 期限的債務只剩下 8,500 萬美元。我們也將繼續進行內部投資，就像我們在第一階段所做的那樣。如果你看一下我們在內部進行的一些投資，你會發現克里夫之前提到的人工智慧的一些方面，以及我們在一些國際交付中心的產能增加方面。

Investments in our GHS Medicaid modularization platforms. And then what we've done with our vector platform as well to support the New York congestion management pricing. -- a significant investment that we made, but we've been frugal in the way that we allocate capital internally. So I think you can look to see kind of similar characteristics as we used in the first phase of the rationalization plan as far as capital allocation is concerned.

對我們的 GHS Medicaid 模組化平台的投資。然後，我們也利用向量平台來支援紐約擁堵管理定價——這是我們所做的一項重大投資，但我們在內部分配資本的方式上一直很節儉。因此，我認為就資本配置而言，你可以看到與我們在合理化計畫第一階段所使用的類似的特徵。

Okay, great. Thanks for the answers.

好的，太好了。謝謝您的回答。

Chris, just one last point. Importantly, to follow on Giles' point, what it really provides for us is a remaining portfolio that's more nimble, easier to manage, lower costs in the center, higher growth rates. That's the bottom line on where we want to land.

克里斯，我只想說最後一點。重要的是，按照 Giles 的觀點，它真正為我們提供的是一個更靈活、更易於管理、中心成本更低、成長率更高的剩餘投資組合。這就是我們想要達到的底線。

Okay, great. Thank you.

好的，太好了。謝謝。

Marc Riddick, Sidoti.

馬克·里迪克、西多蒂。

Hey, good morning.

嘿，早安。

Hey Marc.

嘿，馬克。

Good morning. So first of all, congratulations both to Josh and David for the changes there and certainly look forward to continue working with you there. Just wondering if you could. I was wondering if you could start a little bit on the opportunity set and kind of dovetaile the comment, John, is around the connection you state and local contacts and what have you.

早安.首先，我要祝賀 Josh 和 David 所做的改變，並期待繼續與你們合作。只是想知道你是否可以。我想知道您是否可以稍微談談機會集，並與評論相吻合，約翰，是關於您所陳述的與當地聯繫人的聯繫以及您所擁有的東西。

Maybe you could shed a little bit as to maybe what you're hearing from them and how that ties into the opportunities that you're seeing? I mean maybe it's a little early, but I was wondering if you're getting much in the way of feedback from your state and local contacts to the headlines and maybe what areas are taking the lead as far as priority of concern there?

也許您可以稍微解釋一下您從他們那裡聽到了什麼，以及這些訊息與您看到的機會有何關聯？我的意思是，也許現在有點早，但我想知道您是否從您所在州和地方的聯繫人那裡得到了很多關於頭條新聞的反饋，以及哪些地區在關注的優先事項方面處於領先地位？

It's a mixed bag, Marc. I mean if you -- some states are more progressive in trying to get out front and work with the administration to figure out how they can far it out fraud and reduce cost from a disbursement point of view. Other states are sort of in a wait and see. So it's quite varied. All the states are looking for efficiencies and always have been.

這是好壞參半的事情，馬克。我的意思是，有些州在嘗試走在前面並與政府合作以找出如何從支出的角度消除欺詐並降低成本方面更加進步。其他州則處於觀望狀態。所以它是相當多樣化的。所有州都在尋求提高效率，並且一直如此。

So it's a mixed bag. I can tell you that there is a specific effort around more efficiency in the administration of federal funds. But the exact details are going to vary state by state. I can tell you one governor sent me a letter recently saying, how can you help us more with SNAP or food stamp fraud?

所以這是一個混合體。我可以告訴你們，我們正在努力提高聯邦資金的管理效率。但具體細節因州而異。我可以告訴你，一位州長最近給我發了一封信，信中說，你如何幫助我們更好地應對 SNAP 或食品券詐欺？

Because as I mentioned in my narrative, the individuals that receive these this funding are the ones that eat the fraud. And you've seen many examples where people who have had their card scheme or address takeover or various ways that fraud occurs. And the states are very agitative or the fact that they're constituents are the ones that are taking the loss because those funds are generally not replenished.

因為正如我在敘述中提到的那樣，接受這些資金的個人就是那些遭受詐欺的人。你已經看到過許多例子，人們的信用卡計劃或地址被接管，或以各種方式發生詐欺。各州都非常焦躁，或者說，他們的選民承受了損失，因為這些資金通常不會得到補充。

So it's a mixed bag. I mean the one I just referred to as Utah. We've got a lot of capabilities around our new card platform that has chip cards in it. It has card turn off and turn on capabilities for other fraud reduction tools.

所以這是一個混合體。我指的是剛才提到的猶他州。我們的新卡平台擁有許多功能，其中包含晶片卡。它具有關閉和打開卡片的功能，可用於其他減少詐騙的工具。

But as I said, some are more out front and it's a very significant opportunity and others are sort of holding back, waiting to see what really happens. Because if you look at the dose efforts, this target of $1 trillion cost reduction is just not manifesting as fast as advertised. I mean I think I saw numbers in the neighborhood of $155 billion out of the $2 trillion have been realized in some of the federal cost reduction efforts. So it's going a little bit slower. So there's a wait and see kind of demeanor out there as well.

但正如我所說，有些人走在前面，認為這是一個非常重要的機會，而其他人則有些退縮，等著看到底會發生什麼。因為如果你看一下劑量努力，你會發現減少 1 兆美元成本這一目標並沒有像宣傳的那樣快速實現。我的意思是，我認為我看到在聯邦政府的部分成本削減措施中，2 兆美元中大約有 1550 億美元已經實現。所以進展會慢一點。因此，外界也存在著一種觀望的態度。

Yeah, thank you for that. And then I was wondering if you could cut a little bit about the new business wins being up year-over-year. and maybe some of the catalysts that were behind that as well as maybe progress in the I know we've talked in the past about efforts as far as gaining share of wallet. I mean are you -- was that part of some of the new business win efforts? And how do we see that going forward?

是的，謝謝你。然後我想知道您是否可以稍微談談新業務勝利同比增長的情況，也許還有背後的一些催化劑，以及可能取得的進展，我知道我們過去曾談到在獲得錢包份額方面的努力。我的意思是——這是贏得新業務努力的一部分嗎？我們如何看待這項未來發展？

Yeah, Marc, I think there's a couple of things there. I think one is we've invested wisely in new talent in our sales organization with some element of new structure with client partners and getting closer to the clients and really driving more new capability opportunities through that group. And the second is some of the investments that we're making that we've discussed earlier around Medicaid and increasing the seat capacity out in some of our delivery centers.

是的，馬克，我認為那裡有幾件事。我認為，首先，我們明智地投資了銷售組織中的新人才，與客戶合作夥伴建立了一些新結構，更加貼近客戶，並透過團隊真正推動更多新的能力機會。第二是我們之前討論過的一些有關醫療補助的投資，以及增加一些配送中心的座位容量。

We're filling those up. Clients are still looking to us to help them solve some of their cost issues. And we continue to see that into the second quarter as well. So I think Q1, we were off to a relatively good start. Q2, we should be a little stronger, and we'll see that continue throughout the year.

我們正在填補這些空缺。客戶仍然希望我們幫助他們解決一些成本問題。我們在第二季也繼續看到這種情況。所以我認為第一季我們的開局相對較好。Q2，我們應該會更強大一些，我們會看到這種狀態持續到全年。

And Marc, if you -- and I've mentioned this in the past, if you think about new business, it comes in three venues. It comes in a new logo. It comes in a new capability for current logo and it comes in with add-on volume from the same capability.

馬克，如果你——我以前也提到過這一點，如果你考慮新業務，它會來自三個方面。它採用了新的標誌。它為當前徽標增添了新功能，並增加了相同功能的附加容量。

That add-on volume typically comes from our account management teams. And that's been pretty consistent. In some quarters, that's been better than others. What we saw in Q1, and I hope to see even more so in Q2 is that new logo, new capability with a particular emphasis on this new capability and expanding our share of wallet.

此附加量通常來自我們的客戶管理團隊。這一直都非常一致。在某些方面，情況比其他方面要好。我們在第一季看到了新標誌、新功能，我希望在第二季度看到更多，特別是強調新功能和擴大我們的錢包份額。

With roughly 1.6 products per client in the commercial space, we think that should be double. And that's why we've invested heavily in this client partner arrangement, where client partners and enterprise sales executives can look at the breadth of the opportunity in a current client base.

在商業領域，每位客戶大約有 1.6 種產品，我們認為這個數字應該是兩倍。這就是我們大力投資客戶合作夥伴協議的原因，客戶合作夥伴和企業銷售主管可以透過協議了解現有客戶群中蘊藏的商機。

And we've got many of the health care clients, most of the health care clients out in the market are our clients. And so we see expanded opportunities from that client partner team and then an enterprise sales team. But we're just getting started. I mean, yes, it was a good quarter on new logo. We need to do even more of that because the new logos are your future.

我們擁有許多醫療保健客戶，市場上大多數的醫療保健客戶都是我們的客戶。因此，我們看到了來自客戶合作夥伴團隊和企業銷售團隊的擴大機會。但我們才剛開始。我的意思是，是的，新標誌的推出帶來了一個好的季度。我們需要做更多，因為新標誌代表著你們的未來。

And that's -- if you don't feather that nest with new logos, you're not going to have add-ons to be available. So we're very focused on it. And we expect to see some pretty good progress in Q2 and more so on the back half of the year.

那就是——如果你不添加新的標誌，你就無法獲得附加組件。所以我們非常關注這一點。我們預計第二季以及下半年將取得相當不錯的進展。

And just to sort of play the loop there. I just wanted to double check on -- so the leverage being at 2.7 times, and this was covered in the prepared remarks, but just to confirm, that was as of the end of the quarter and then subsequently, you got the $50 million in April, so that's already knocked down from where you were at the end of the first quarter, correct?

然後就在那裡循環播放。我只是想再確認一下——槓桿率為 2.7 倍，這在準備好的評論中已經涵蓋了，但只是為了確認一下，這是截至本季度末的數據，隨後，您在 4 月份獲得了 5000 萬美元，所以這已經從第一季末的水平下降了，對嗎？

Yeah, that's correct, Marc. And we should see that net leverage can come down as the adjusted EBITDA for Q2, Q3, Q4 starts to increase with the cost efficiency programs that we've got going on. So as I said, I think we'll see it trend towards more kind of 1.5 turns as we think about the second half of the year. And then as we exit 2025, we're targeting that one turn that we always put out there as a target.

是的，沒錯，馬克。我們應該看到，隨著我們正在實施的成本效率計劃，第二季、第三季、第四季的調整後 EBITDA 開始增加，淨槓桿率可能會下降。所以正如我所說的，我認為當我們考慮今年下半年時，我們會看到它趨向於 1.5 倍的趨勢。當我們走出 2025 年時，我們將瞄準我們一直設定的目標。

A lot of those cost efficiency efforts Marc, as you know have lag effects to them. So that's the benefit we're going to see in the back half of the year.

馬克，如你所知，許多提高成本效率的努力都存在滯後效應。這就是我們將在今年下半年看到的好處。

Excellent. Thank you very much.

出色的。非常感謝。

Thanks, Marc.

謝謝，馬克。

Thank you. We have reached the end of our question-and-answer session. And with that, we'd like to bring the call to a close. We do thank you for your participation. We wish you a great day. You may now disconnect.

謝謝。我們的問答環節已經結束。至此，我們想結束本次通話。我們非常感謝您的參與。祝您有個愉快的一天。您現在可以斷開連線。