Cerence Inc (CRNC) 2023 Q4 法說會逐字稿

Good day and welcome to the Cerence Q4 2023 earnings call. (Operator Instructions) As a reminder, this call may be recorded. I would now like to turn the call over to Rich Yerganian, Senior Vice President of Investor Relations. You may begin.

美好的一天，歡迎參加 Cerence 2023 年第四季財報電話會議。 （操作員說明）謹此提醒，此通話可能會被錄音。我現在想將電話轉給投資者關係高級副總裁 Rich Yerganian。你可以開始了。

Thank you. Welcome to Cerence's fourth quarter and full fiscal year 2023 conference call. Before we begin, I would like to remind you that this call may involve certain forward-looking statements.

謝謝。歡迎參加 Cerence 第四季和 2023 財年全年電話會議。在我們開始之前，我想提醒您，本次電話會議可能涉及某些前瞻性陳述。

Any statements that are not statements of historical fact, including statements related to our expectations, estimates, assumptions, strategy, goals, targets, and plans should be considered to be forward-looking statements. Cerence makes no representations to update those statements after today.

任何非歷史事實陳述的陳述，包括與我們的預期、估計、假設、策略、目的、指標和計劃相關的陳述，均應被視為前瞻性陳述。塞倫斯今天之後沒有發表任何更新這些聲明的聲明。

These statements are subject to risks and uncertainties which may cause actual results to differ materially from such statements as described in our SEC filings, including the Form 8-K with the press release preceding today's call and our Form 10-Q filed on August 8, 2023, and our most recent Form 10-K.

這些聲明存在風險和不確定性，可能導致實際結果與我們在SEC 文件中描述的聲明有重大差異，包括今天電話會議之前新聞稿中的8-K 表和8 月8 日提交的10-Q 表， 2023 年，以及我們最新的 10-K 表格。

In addition, the company may refer to certain non-GAAP measures, key performance indicators, and pro forma financial information during this call. Please refer to today's press release for further details of the definitions, limitations, and uses of those measures and reconciliations of non-GAAP measures to the closest GAAP equivalent. The press release is available in the IR section of the website.

此外，本公司可能會在本次電話會議中參考某些非公認會計準則衡量標準、關鍵績效指標和預期財務資訊。請參閱今天的新聞稿，以了解有關這些衡量標準的定義、限制和用途以及非公認會計準則衡量標準與最接近的公認會計準則同等衡量標準的調節的更多詳細資訊。新聞稿可在網站的 IR 部分取得。

Joining me on today's call are Stefan Ortmanns, CEO of Cerence; Tom Beaudoin, CFO of Cerence; and Nils Schanz, our Chief Product Officer. As a reminder, the only authorized spokespeople for the company are Stefan, Tom, and me.

參加今天電話會議的還有 Cerence 執行長 Stefan Ortmanns； Tom Beaudoin，Cerence 財務長；以及我們的首席產品長 Nils Schanz。提醒一下，公司唯一授權的發言人是 Stefan、Tom 和我。

Before handing the call over to Stefan, I would like to mention that we'll be presenting at the Wells Fargo 7th Annual TMT Conference tomorrow, November 28; the UBS Industrials Summit on November 29; and Raymond James TMT and Consumer Conference on December 5.

在將電話轉交給 Stefan 之前，我想提一下，我們將於明天（11 月 28 日）富國銀行第七屆年度 TMT 會議上進行演講； 11 月 29 日瑞銀工業高峰會；以及 12 月 5 日舉行的 Raymond James TMT 和消費者大會。

Now onto the call. Stefan?

現在開始通話。斯特凡？

Thank you, Rich. Welcome, everyone, and thank you for joining us to discuss Cerence's fourth quarter full fiscal year results, guidance for fiscal '24, and the update to our multiyear targets.

謝謝你，里奇。歡迎大家，並感謝您加入我們討論 Cerence 第四季度完整財年業績、24 財年指導以及我們多年目標的更新。

Before I review the highlights of the fourth quarter and fiscal year, let me start by saying how excited I am about the future of Cerence. We remain well positioned to benefit from the execution of our strategy to build an immersive cabin experience. And these efforts are only enhanced by the rapid advancement and application of AI within our leading-edge solutions.

在回顧第四季度和財年的亮點之前，讓我先說我對 Cerence 的未來感到多麼興奮。我們仍然處於有利地位，可以從我們建構沉浸式客艙體驗的策略的執行中受益。只有透過我們領先的解決方案中人工智慧的快速發展和應用，這些努力才會得到加強。

We continue to build out innovative new capabilities based on advanced automotive grade large language models and generative AI. We are already seeing a high level of interest and traction across our OEMs regarding these initiatives.

我們繼續基於先進的汽車級大語言模型和生成式人工智慧來建立創新的新功能。我們已經看到我們的原始設備製造商對這些舉措表現出高度的興趣和吸引力。

We have had some incredibly strong additions to the leadership team over the last year. You met Iqbal Arshad for our last earnings call who joined us in May as our Chief Technology Officer, and most recently, Christian Mentz joining our team from Amazon as our Chief Revenue Officer. Iqbal and Christian work in close collaboration with Nils Schanz, our Chief Product Officer. You will hear from him in a few minutes.

去年，我們的領導團隊增添了一些令人難以置信的強大成員。您在我們上次的財報電話會議上見到了 Iqbal Arshad，他於 5 月加入我們，擔任我們的首席技術官，最近，Christian Mentz 從亞馬遜加入我們的團隊，擔任我們的首席營收官。 Iqbal 和 Christian 與我們的首席產品長 Nils Schanz 密切合作。幾分鐘後您就會收到他的訊息。

We now have an extremely strong management team to guide the company forward, especially as generative AI and large language models accelerate transformation across transportation and beyond.

我們現在擁有一支極其強大的管理團隊來引導公司前進，特別是在生成式人工智慧和大型語言模型加速交通運輸及其他領域的轉型的情況下。

No company is better positioned, prepared, or trusted than Cerence to guide and support automakers and mobility OEMs as they navigate the best paths to providing their customers with an immersive, intuitive in-cabin experience.

沒有任何一家公司比 Cerence 更有能力、更有準備、更值得信賴，可以指導和支持汽車製造商和行動 OEM 找到最佳路徑，為客戶提供身臨其境、直觀的車內體驗。

Building off of our destination next strategy that we shared last year's Investor Day, we are deeply focused on leveraging our state-of-the-art AI technology in two ways.

基於我們去年投資者日分享的下一個目的地策略，我們非常注重以兩種方式利用我們最先進的人工智慧技術。

First, enhancing our current software platform with products that enable OEMs to quickly, easily, and cost-efficiently deploy new AI-driven applications to their drivers via over-the-air update.

首先，透過產品增強我們目前的軟體平台，使 OEM 能夠透過無線更新快速、輕鬆且經濟高效地將新的人工智慧驅動的應用程式部署到其驅動程式中。

And second, by creating a unique user experience with cutting-edge automotive certified large language models. You will hear more from Nils on that in a moment.

其次，透過尖端的汽車認證大語言模型創造獨特的使用者體驗。稍後您會聽到尼爾斯關於這方面的更多資訊。

Due to the significant shift in our industry, we see further opportunities to position ourselves for growth. Therefore, we have slightly pivoted our strategy over the short term to capitalize on these exciting industry trends.

由於我們行業的重大轉變，我們看到了進一步發展的機會。因此，我們在短期內稍微調整了我們的策略，以利用這些令人興奮的行業趨勢。

While this opportunistic evolution of our strategy had an impact on targeted revenue for some of the outer years in our multi-year plan, our long-term performance targets remain unchanged. We believe that our focus moving forward will help us to accelerate the realization of our vision and to deliver on our performance targets of achieving double digit revenue growth and approximately 30% adjusted EBITDA margin starting in fiscal '26.

雖然我們策略的這種機會主義演變對我們多年計劃中某些外部年份的目標收入產生了影響，但我們的長期業績目標保持不變。我們相信，我們前進的重點將幫助我們加速實現我們的願景，並實現我們的業績目標，即從 26 財年開始實現兩位數的收入增長和約 30% 的調整後 EBITDA 利潤率。

With that, I would like to point out some of the highlights from Q4 and the full fiscal year. In Q4, we delivered solid results with revenue of approximately $81 million, well above the high end of our guidance. Our core auto business delivered strong results with our global auto penetration staying strong at 54% on a trailing 12-month basis, which is a testament to our significant value add.

說到這裡，我想指出第四季和整個財年的一些亮點。第四季度，我們取得了穩健的業績，收入約為 8,100 萬美元，遠高於我們指導的上限。我們的核心汽車業務取得了強勁的業績，過去 12 個月我們的全球汽車滲透率保持在 54% 的強勁水平，證明了我們顯著的增值。

Add our innovation and strong capabilities continue to translate into significant new business. We secured several strategic wins during the quarter, including three in automotive and another in the two-wheeler space. One of the automotive wins was to support the global expansion of a major Chinese OEM, a continuing trend that we have benefited from given the extensive language needs required at OEMs and the new markets.

我們的創新和強大能力不斷轉化為重要的新業務。我們在本季度取得了許多戰略勝利，其中三項是汽車領域的勝利，另一項是兩輪車領域的勝利。汽車產業的勝利之一是支持一家主要的中國原始設備製造商的全球擴張，考慮到原始設備製造商和新市場對語言的廣泛需求，我們從這一持續趨勢中受益。

You may recall that on our Q3 conference call, our CTO, Iqbal Arshad, shared with you our strategy for incorporating the latest developments in generative AI and large language models into our current product offerings. This has been extremely well received by our customers leading us to deliver more than 15 proof-of-concept programs globally during Q4.

您可能還記得，在第三季的電話會議上，我們的技術長 Iqbal Arshad 與您分享了我們將產生人工智慧和大型語言模型的最新發展融入我們當前產品的策略。這受到了我們客戶的熱烈歡迎，導致我們在第四季度在全球範圍內交付了超過 15 個概念驗證項目。

On today's call, Nils, our Chief Product Officer, will provide some insight on how innovation in our current product lineup is expected to serve as the foundation for our future product vision and strategy. We have already shared our plans with select customers. And I'm very excited to have extremely promising feedback. I hope you will be able to visit our booth at CES to witness the new products in action.

在今天的電話會議上，我們的首席產品長尼爾斯將就我們目前產品陣容的創新如何作為我們未來產品願景和策略的基礎提供一些見解。我們已經與選定的客戶分享了我們的計劃。我很高興收到非常有希望的回饋。我希望您能夠參觀我們在 CES 上的展位，親眼目睹新產品的實際應用。

Moving on to review of the full fiscal year, I'm very pleased to say that we delivered on our commitments for FY23, including revenue and all key profitability metrics we provided last November. Importantly, we remain committed to a strong focus on operational excellence.

接下來回顧整個財年，我很高興地說我們兌現了對 2023 財年的承諾，包括營收和我們去年 11 月提供的所有關鍵獲利指標。重要的是，我們仍然致力於高度關注卓越營運。

In FY23, we had 14 strategic wins. These wins come from across the globe and included five competitive win-backs from both niche and consumer-type competitors.

2023 財年，我們取得了 14 項戰略勝利。這些勝利來自全球各地，其中包括來自利基型和消費者型競爭對手的五項競爭性贏回。

Our core product, Cerence Assistant, had nine design wins during the year, including the first win for a Chinese OEM's domestic program. For one of these customers, we were able to achieve start of production in just four months. Overall, we had start of production for more than 17 platforms that utilize our latest solution.

我們的核心產品 Cerence Assistant 在這一年中獲得了 9 項設計勝利，其中包括中國 OEM 國內項目的首次勝利。對於其中一位客戶，我們在短短四個月內就實現了投產。總體而言，我們已經開始生產超過 17 個使用我們最新解決方案的平台。

We also continue to make good progress in adjacent transportation markets winning two more two-wheeler customers during the year for a total of nine, including some of the most recognizable names in the market. It's important to note that we have won every two-wheeler opportunity that we have pitched against both small and consumer tech competitors.

我們也繼續在鄰近的運輸市場取得良好進展，年內贏得了另外兩家兩輪車客戶，總數達到九家，其中包括一些市場上最知名的品牌。值得注意的是，我們贏得了與小型和消費科技競爭對手競爭的每一個兩輪車機會。

We had our first start of production with five previously won two-wheeler customers and expect those revenues to begin ramping in fiscal year '24. We have also started to build a pipeline for our non-transportation business, also known as AIoT with six design wins: two in North America and four in Asia-Pacific.

我們與之前贏得的五家兩輪車客戶一起首次開始生產，預計這些收入將在 24 財年開始增加。我們也開始為我們的非運輸業務（也稱為 AIoT）建立一條管道，並贏得了六項設計：兩項在北美，四項在亞太地區。

You may recall we are currently limited to what technologies we can market outside of transportation because of the field of use restriction we had with Nuance, now Microsoft. We are in the last year of this agreement. And coming next October, we will be able to freely take our scalable AI technology stack to any market where we think we can provide value.

您可能還記得，由於我們與 Nuance（現在是 Microsoft）的使用領域限制，我們目前只能在運輸之外行銷哪些技術。我們正處於該協議的最後一年。明年 10 月，我們將能夠自由地將可擴展的人工智慧技術堆疊帶到我們認為可以提供價值的任何市場。

As we previously discussed, we entered FY23, knowing that from a revenue and profitability perspective, it was going to be a transition year. Overall as a team, we are very pleased with our progress. And as we look forward, we are very excited about our expected near and long-term future success.

正如我們之前所討論的，我們進入了 2023 財年，知道從收入和盈利能力的角度來看，這將是一個過渡年。總的來說，作為一個團隊，我們對我們的進步感到非常滿意。展望未來，我們對預期的近期和長期未來成功感到非常興奮。

Before Tom reviews the financial details of our performance, we wanted to share how we are watching the market from a product perspective, especially in light of the market dynamics and demand for AI-driven solutions. At its core, there are three pillars that are key to our strategy. The first is providing our customers with a tailor-made solution.

在 Tom 審查我們業績的財務細節之前，我們想先分享我們如何從產品角度觀察市場，特別是考慮到市場動態和對人工智慧驅動解決方案的需求。從本質上講，我們策略的關鍵在於三個支柱。首先是為我們的客戶提供量身訂製的解決方案。

Second, the immersive in-cabin experience we continue to grow in importance in the buying decision of the consumer. Therefore, creating a unique branded experience is a key focus for our OEMs.

其次，身臨其境的車內體驗在消費者購買決策中的重要性不斷增強。因此，創造獨特的品牌體驗是我們的 OEM 的重點關注點。

The third pillar is advancing natural human-like interaction. People will use a system that is easy, intuitive, and responsive. Our deep vertical expertise in the automotive industry and extensive set of data in combination with large language models and generative AI technologies are the cornerstones of our OEM branded offerings.

第三個支柱是推進自然的類人互動。人們將使用一個簡單、直覺且反應迅速的系統。我們在汽車行業深厚的垂直專業知識以及廣泛的數據集與大型語言模型和生成式人工智慧技術相結合，是我們 OEM 品牌產品的基石。

With that, I'm pleased to turn it over to Nils Schanz, our Chief Product Officer, and former Head of User Experience from Mercedes, to share a bit more about our product plans and technology vision. Nils, please.

至此，我很高興將其轉交給我們的首席產品長、梅賽德斯前用戶體驗主管 Nils Schanz，以分享更多有關我們的產品計劃和技術願景的資訊。尼爾斯，請。

Thank you, Stefan. The recent advancements in generative AI and large language models have opened up a whole new world of opportunity. Cerence has a distinct role to play in the application of these technologies using our unique deep understanding of automotive and transportation specific requirements and dynamics to ensure added value for the end-user.

謝謝你，斯特凡。生成式人工智慧和大型語言模式的最新進展開啟了一個全新的機會世界。 Cerence 利用我們對汽車和運輸特定要求和動態的獨特深入理解，在這些技術的應用中發揮獨特的作用，以確保為最終用戶帶來附加價值。

We are incorporating the extensive vertical expertise we have in the automotive industry and combining it with the latest innovations in AI and through a two-step approach.

我們正在整合我們在汽車行業擁有的廣泛的垂直專業知識，並將其與人工智慧的最新創新相結合，並透過兩步走的方法。

First, by enhancing existing products, and second, by creating an entirely new architecture that we believe will result in a completely unique solution for the industry capable of delivering groundbreaking user experiences.

首先，透過增強現有產品，其次，透過創造全新的架構，我們相信這將為業界帶來完全獨特的解決方案，能夠提供突破性的使用者體驗。

Our path forward is defined by a product road map based on a multilayered generative AI strategy. There are several key considerations guiding the strategy.

我們的前進道路是由基於多層產生人工智慧策略的產品路線圖定義的。有幾個關鍵考慮因素指導該策略。

First, focus on automotive specific tasks and applications via fine-tuned LLMs. Second, deliver an optimal balance of user experience, cost, and performance through a thoughtful combination of third party LLMs, Cerence proprietary LLMs, and traditional AI models. And third, provide transparency and full control over the user experience. So OEMs can safely, accurately, and reliably serve their customers.

首先，透過微調法學碩士專注於汽車特定任務和應用。其次，透過第三方法學碩士、Cerence 專有法學碩士和傳統人工智慧模型的周到組合，實現使用者體驗、成本和效能的最佳平衡。第三，提供對使用者體驗的透明度和完全控制。因此 OEM 可以安全、準確、可靠地為客戶提供服務。

We have upgraded our product portfolio with LLM technologies developing three products and integrating them with our first customers. Cerence Car Knowledge leverages AI to transform the intimidating 500-page manual that usually fits in your glove compartment into user-friendly voice-activated information.

我們利用法學碩士技術升級了我們的產品組合，開發了三種產品並將其與我們的第一批客戶整合。 Cerence Car Knowledge 利用人工智慧將通常放在手套箱中的令人生畏的 500 頁手冊轉變為用戶友好的語音激活訊息。

Our solution provides information retrieval in real time, contextual information based on trustworthy OEM data and information specified down to the model and even the bill. Car Knowledge can be leveraged via voice for the in-car systems or on a companion app or even in social media or any web application.

我們的解決方案提供即時資訊檢索、基於值得信賴的 OEM 資料的上下文資訊以及具體到型號甚至帳單的資訊。汽車知識可以透過車載系統或配套應用程式甚至社交媒體或任何網路應用程式的語音來利用。

Cerence Assistant with NLU Plus brings the power of LLMs to our turnkey hybrid solution. This next-generation version of Cerence Assistant is optimized to provide users with more natural, intuitive, and accurate interactions while minimizing costs. Cerence Assistant now easily handles complex queries and multistep tasks within a single request.

帶有 NLU Plus 的 Cerence Assistant 將法學碩士的強大功能帶入我們的交鑰匙混合解決方案中。下一代版本的 Cerence Assistant 經過最佳化，可為用戶提供更自然、直觀和準確的交互，同時最大限度地降低成本。 Cerence Assistant 現在可以在單一請求中輕鬆處理複雜的查詢和多步驟任務。

Cerence ChatPro expands the system's ability to answer general interest questions. It is a predefined and flexible Q&A solution that includes no code infrastructure or customization that enables OEMs to create brand personality.

Cerence ChatPro 擴展了系統回答一般興趣問題的能力。它是一種預先定義且靈活的問答解決方案，不包含任何程式碼基礎設施或定制，使 OEM 能夠創建品牌個性。

Cerence ChatPro leverages a multitude of sources, including ChatGPT to provide accurate and relevant responses, nearly every query imaginable. These free cloud-based products can be quickly deployed as upgrades to existing platforms already in production, delivering added value to drivers and supporting our strategy to increase connected services growth. In fact, one of our customers is going live in calendar quarter one.

Cerence ChatPro 利用包括 ChatGPT 在內的多種來源來提供準確且相關的回應，幾乎涵蓋所有可以想像的查詢。這些基於雲端的免費產品可以作為已投入生產的現有平台的升級來快速部署，為駕駛員提供附加價值並支援我們促進互聯服務成長的策略。事實上，我們的一個客戶將於第一季上線。

It's important to note that these products can also be applied to our strategic adjacent markets, two-wheelers and trucks. We also see use cases for non-transportation applications, for example, using our Car Knowledge product for appliances or industrial IoT. The same concept of building an intelligent blueprint to the device that can be assessed by the user at any time still apply.

值得注意的是，這些產品也可以應用於我們的策略鄰近市場、兩輪車和卡車。我們也看到了非交通應用的用例，例如，將我們的汽車知識產品用於電器或工業物聯網。為設備建立可供用戶隨時評估的智慧藍圖的相同概念仍然適用。

As for where we are heading in the future, we are uniquely positioned to capitalize on the prevalence of generative AI and LLM. Our product roadmap is fully focused on developing generated AI-power products based on an automotive grade large language model, the first in the industry.

至於我們未來的發展方向，我們處於獨特的地位，可以利用生成式人工智慧和法學碩士的盛行。我們的產品路線圖完全專注於開發基於汽車級大語言模型的人工智慧產品，這在業界尚屬首例。

Our R&D and product teams are currently building this automotive grade LLM which will be presented at CES in collaboration with a major European OEM and is based on our unmatched automotive data set.

我們的研發和產品團隊目前正在建立這個汽車級法學碩士，該課程將與歐洲主要 OEM 合作在 CES 上展示，並且基於我們無與倫比的汽車資料集。

Unlike others who have simply plugged ChatGPT into an existing system, we know that in order for OEMs to maintain their branded experience and for end users to gain value from the integration, a more thoughtful approach is needed.

與其他簡單地將 ChatGPT 插入現有系統的人不同，我們知道，為了讓 OEM 保持其品牌體驗並讓最終用戶從整合中獲得價值，需要採取更周到的方法。

The limitations of the technology need to be acknowledged and addressed. A serious issue is the lack of response reliability. Responses can found highly plausible yet be completely incorrect, otherwise known as hallucinations. Responses can be self-contradicting, non-transparent or often unreliable data of attribution.

需要承認並解決該技術的局限性。一個嚴重的問題是缺乏響應可靠性。反應可能非常合理，但卻完全錯誤，也稱為幻覺。回應可能是自相矛盾的、不透明的或往往是不可靠的歸因數據。

We address this by fine-tuning large language models on curated data sources, for example, Car Knowledge with the accurate OEM data for precise information. The lost sight of LLMs reside in high operating cost due to substantial computational power needed.

我們透過在精選資料來源上微調大型語言模型來解決這個問題，例如，汽車知識與準確的 OEM 資料以獲得精確的資訊。法學碩士的失明之處在於由於需要大量的運算能力而導致高昂的營運成本。

Public LLMs may not be cost effective for certain tasks compared to traditional search or energy-based chips. Our approach to this issue is to apply a mixed strategy using third party and proprietary LLMs improving cost effectiveness and control. We leverage LLMs to support the development of smaller, deep learning models, improving cost and time to market.

與傳統的搜尋或基於能源的晶片相比，公共法學碩士對於某些任務可能不具有成本效益。我們解決這個問題的方法是採用混合策略，使用第三方和專有的法學碩士來提高成本效益和控制。我們利用法學碩士來支持更小型的深度學習模型的開發，從而提高成本並縮短上市時間。

Another concern is that the system's response time can be slow due to the latency of LLMs, which is not within the user or OEMs controlled. The Cerence approach of a seamless integration of deep learning models of various types and sizes optimized for specific use cases. We optimize efficiency, reliability, and scope across all Cerence domains, ensuring latency remains within our benchmarks.

另一個問題是，由於 LLM 的延遲，系統的回應時間可能會很慢，而這不在使用者或 OEM 的控制範圍之內。 Cerence 方法無縫整合針對特定用例最佳化的各種類型和規模的深度學習模型。我們優化所有 Cerence 領域的效率、可靠性和範圍，確保延遲保持在我們的基準範圍內。

Another challenge is that constant cloud access in cars isn't guaranteed making embedded solutions crucial. Performance and cost optimization will be key for embedded applications of LLMs and generative AI.

另一個挑戰是，無法保證汽車中持續的雲端訪問，這使得嵌入式解決方案變得至關重要。效能和成本優化將是法學碩士和生成式人工智慧嵌入式應用的關鍵。

To address this, we are focused on developing optimized LLMs for use on embedded platforms, leveraging our automotive and embedded expertise as a competitive advantage.

為了解決這個問題，我們專注於開發用於嵌入式平台的最佳化法學碩士，利用我們的汽車和嵌入式專業知識作為競爭優勢。

So what sets us apart from the competition as the essential innovation partner when it comes to generative AI and LLMs.

那麼，在產生人工智慧和法學碩士方面，是什麼讓我們作為重要的創新合作夥伴在競爭中脫穎而出。

We have the unique expertise to leverage these technologies with a specific plan for automotive and transportation user experiences prioritizing safety and producing up-to-date, correct, and trusted information.

我們擁有獨特的專業知識，可以利用這些技術與汽車和交通用戶體驗的具體計劃，優先考慮安全並產生最新、正確和可信的資訊。

Generative AI and LLMs are among Cerence core competencies. We have been applying deep neural network based AI technologies, including generative AI to our products for years.

生成式人工智慧和法學碩士是 Cerence 的核心競爭力。多年來，我們一直在將基於深度神經網路的人工智慧技術（包括生成式人工智慧）應用到我們的產品中。

In addition, Cerence technology stack implements AI on both the cloud and edge. We leverage OEM and Cerence data to make sure every end user always gets the most accurate response. And finally, we can arbitrate as to whether a command is best processed by our conventional AI stack with our LLM technology or by an external LLM service, ensuring full functionality at minimum cost.

此外，Cerence技術堆疊在雲端和邊緣實現了AI。我們利用 OEM 和 Cerence 數據來確保每個最終用戶始終獲得最準確的回應。最後，我們可以仲裁命令是否最好由採用 LLM 技術的傳統 AI 堆疊或外部 LLM 服務處理，從而確保以最低成本實現完整功能。

The engineering and product teams here at Cerence are well aligned. We are excited about how the right application of GenAI and relevant technologies will transform the user experience in the car and the central role we can play in making that happen.

Cerence 的工程和產品團隊非常協調。我們對 GenAI 和相關技術的正確應用將如何改變汽車中的使用者體驗以及我們在實現這一目標方面可以發揮的核心作用感到興奮。

I will now turn it over to Stefan for a few comments on fiscal year 2024 priorities before Tom goes into the financial details of the year and our multiyear targets.

現在，我將把它交給 Stefan，請他對 2024 財年優先事項發表一些評論，然後 Tom 詳細介紹今年的財務細節和我們的多年目標。

Thanks Nils for sharing Cerence AI product strategy. Looking ahead to fiscal year '24, we have a series of key objectives for the company.

感謝 Nils 分享 Cerence AI 產品策略。展望 24 財年，我們為公司設定了一系列關鍵目標。

First and foremost is to delight our customers. We do this by delivering high value added customer-driven solutions on time and with exceptional quality. Under the leadership of Nils, we have made great progress and expect that to continue into the future.

首先也是最重要的是讓我們的客戶滿意。我們透過按時、卓越的品質提供高附加價值、以客戶為導向的解決方案來實現這一目標。在尼爾斯的領導下，我們取得了巨大的進步，並期望未來能繼續下去。

From an R&D perspective, it is absolutely critical that we continue to innovate and make strategic investments in our technology by architecting a software platform that incorporates the latest advances in generative AI and large language models.

從研發的角度來看，我們透過建立一個融合了產生人工智慧和大型語言模型最新進展的軟體平台來繼續創新和對我們的技術進行策略性投資是絕對至關重要的。

We have the unique opportunity to capitalize on our vertical software expertise and extensive OEM specific data sets. We are in the process of transforming our strategy into real solutions, driving growth in connected services billings. We will preview these solutions at CES and expect to deliver to customers in calendar year '24.

我們擁有獨特的機會來利用我們的垂直軟體專業知識和廣泛的 OEM 特定資料集。我們正在將我們的策略轉變為真正的解決方案，推動互聯服務帳單的成長。我們將在 CES 上預覽這些解決方案，並預計在 24 日曆年交付給客戶。

We also expect to make additional progress in the adjacent transportation market and beyond. And of course, we will continue to have a strong focus on operational excellence, allowing us to potentially meet or exceed our financial goals for the year.

我們也期望在鄰近的運輸市場及其他市場取得更多進展。當然，我們將繼續高度重視卓越運營，使我們有可能達到或超過今年的財務目標。

With that, I would like to hand the call over to Tom. Tom?

說到這裡，我想把電話轉給湯姆。湯姆？

Thank you, Stefan. When I joined Stefan's leadership team approximately 1.5 years ago, we together set an objective to meet and, if possible, exceed any financial guidance we provide to the investment community.

謝謝你，斯特凡。大約 1.5 年前，當我加入 Stefan 的領導團隊時，我們共同製定了一個目標，以達到並在可能的情況下超越我們向投資界提供的任何財務指導。

The fourth quarter of fiscal 2023 was the fifth quarter in a row of achieving that objective. And given the exciting opportunities available to us, we expect positive momentum to continue into fiscal year 2024.

2023 財年第四季是連續第五個季度實現這一目標。鑑於我們擁有令人興奮的機會，我們預計積極的勢頭將持續到 2024 財年。

In a few minutes, I will provide our guidance for Q1 FY24 and the full year. I'll then present our multiyear targets. First, I want to share more details on our strong finish to FY23 and Q4 and our performance for the full fiscal year.

幾分鐘後，我將提供我們對 2024 財年第一季和全年的指導。然後我將介紹我們的多年目標。首先，我想分享有關我們 2023 財年和第四季度強勁業績以及整個財年業績的更多詳細資訊。

Our Q4 results showed continued momentum in the business with strong revenue, margins, adjusted EBITDA and CFFO. Q4 revenue came in nearly $5 million above the high end of our guidance, mainly due to a one-time true up with one of our customers.

我們第四季的業績顯示出業務的持續成長勢頭，營收、利潤率、調整後 EBITDA 和 CFFO 均強勁。第四季度的收入比我們指導的上限高出近 500 萬美元，這主要是由於與我們的一位客戶的一次性達成協議。

It is not unusual for a customer to on occasion update their royalty reporting and provide us with adjustments. It is important to note that even without this true up, we still would have been above the high end of the revenue guidance.

客戶偶爾更新他們的版稅報告並向我們提供調整的情況並不罕見。值得注意的是，即使沒有這種真實的成長，我們仍然會高於收入指導的上限。

Revenue for Q4 included a fixed contract of $12.8 million as communicated during our Q3 conference call. The excellent results in the quarter were driven by our core transportation business.

第四季的收入包括我們在第三季電話會議期間傳達的 1,280 萬美元的固定合約。本季的優異業績得益於我們的核心運輸業務。

As revenue came in above the high end of the range combined with our focus on operational excellence, we exceeded the key financial metrics of adjusted EBITDA and CFFO. Non-GAAP gross margin was 72.9%. Non-GAAP operating margin was 17.8%. Adjusted EBITDA was $16.6 million or 20.7% margin and non-GAAP income per share was $0.09.

由於營收高於該範圍的高端，加上我們對卓越營運的關注，我們超越了調整後 EBITDA 和 CFFO 的關鍵財務指標。非 GAAP 毛利率為 72.9%。非 GAAP 營業利益率為 17.8%。調整後 EBITDA 為 1,660 萬美元，利潤率為 20.7%，非 GAAP 每股收益為 0.09 美元。

During the quarter, we had positive cash flow as expected. Cash flow from operations was approximately $11.3 million. Our balance sheet remains strong with total cash and marketable securities of approximately $121 million.

本季度，我們的現金流符合預期。營運現金流量約 1,130 萬美元。我們的資產負債表仍然強勁，現金和有價證券總額約為 1.21 億美元。

When you look back at the guidance we provided last November, we exceeded every financial metric we provided, GAAP and non-GAAP. Revenue was $294 million, $4 million above the high end of the range, even though fixed contracts for the year came in at $36.5 million, approximately $3.5 million lower than expected.

當您回顧我們去年 11 月提供的指導時，您會發現我們超出了我們提供的每項財務指標（GAAP 和非 GAAP）。儘管今年的固定合約收入為 3,650 萬美元，比預期低約 350 萬美元，但收入為 2.94 億美元，比上限高出 400 萬美元。

Here's our breakdown of revenue for the quarter. Four revenue drivers remained strong. Variable license revenue was up 59% from the same quarter last year and up 17% quarter over quarter due to a lower than expected level of fixed contract consumption and a one-time true up by a customer in the fourth quarter.

這是我們本季的收入細節。四個收入驅動因素依然強勁。可變許可收入較去年同季度增長 59%，環比增長 17%，原因是固定合約消費水準低於預期，且客戶在第四季度一次性實現了增長。

Our penetration of global auto production remained at 54% on a trailing 12-months basis as we continue to maintain a strong position in the market. New connected services revenue was up 13% from the same quarter last year, while up 6% from the prior quarter.

我們繼續保持在市場上的強勢地位，過去 12 個月我們在全球汽車生產中的滲透率保持在 54%。新互聯服務營收比去年同期成長 13%，比上一季成長 6%。

We expect a ramp in new connected services in FY24 and beyond as several key programs that have been delayed by customers go into production. We continue to see a solid pipeline of opportunities for connected services.

我們預計，隨著幾個被客戶推遲的關鍵項目投入生產，新的互聯服務將在 2024 財年及以後出現成長。我們繼續看到互聯服務的大量機會。

Finally, our professional services revenue was down 12% year over year, while up 8% quarter over quarter. As we have stated previously, professional services will vary based on the progress or completion of customer projects.

最後，我們的專業服務收入較去年同期下降 12%，但較上季成長 8%。正如我們之前所說，專業服務將根據客戶專案的進度或完成情況而有所不同。

We do not project professional services as a revenue growth driver for the company, but instead view it as an enabler for future license and connected revenue. Additionally, our newer products and solutions include improved implementation and integration features which lowers the utilization of professional services.

我們並不將專業服務視為公司營收成長的驅動力，而是將其視為未來授權和關聯收入的推動者。此外，我們的新產品和解決方案包括改進的實施和整合功能，從而降低了專業服務的使用率。

Moving on to the details of our license business. Overall, the license business remains strong. Pro forma royalties were up 10% year over year and 3% quarter over quarter due to increased auto production and penetration of our advantage technology.

繼續討論我們的許可業務的詳細資訊。整體而言，授權業務依然強勁。由於汽車產量的增加和我們優勢技術的滲透，預計特許權使用費將年增 10%，季增 3%。

As a reminder, pro forma royalties represent the value of variable licenses shipped during the quarter and those consumed as part of a fixed contract. We continue to proactively manage down the contribution from fixed contracts. With the fixed contract deal we signed in Q4 worth approximately $12.8 million, we concluded the year with $36.5 million in total fixed contracts, $3.5 million below our commitment of a maximum of $40 million.

提醒一下，預計特許權使用費代表本季度發貨的可變許可證的價值以及作為固定合約的一部分消耗的許可證的價值。我們繼續積極降低固定合約的貢獻。我們在第四季度簽署的固定合約價值約為 1,280 萬美元，全年固定合約總額為 3,650 萬美元，比我們承諾的最高 4,000 萬美元低了 350 萬美元。

You can see consumption in fiscal '23 was down from the previous year. And we expect further improvement in FY24. After consultation with our sales leaders, we have decided to lower the maximum annual amount of fixed contracts from $40 million to approximately $20 million starting in fiscal '24.

您可以看到 23 財年的消費量比前一年有所下降。我們預計 2024 財年將進一步改善。與我們的銷售主管協商後，我們決定從 24 財年開始，將固定合約的年度最高金額從 4000 萬美元降低到約 2000 萬美元。

The utilization of fixed contracts in our business continues to decrease. And we believe this new level provides us with enough flexibility to accommodate a small amount of customers while we continue to transition away from these types of contracts.

我們業務中固定合約的使用率持續下降。我們相信，這個新等級為我們提供了足夠的靈活性，可以在我們繼續擺脫這些類型的合約的同時容納少量客戶。

This will further accelerate the decline in consumption over the next few years, while still providing the ability (technical difficulty) Additionally, as this migration continues, we expect enhanced clarity and visibility into our underlying revenue generation trends, which we view positively.

這將進一步加速未來幾年消費的下降，同時仍然提供能力（技術難度）。此外，隨著這種遷移的持續，我們預計我們的潛在創收趨勢將更加清晰和可見，我們對此持積極態度。

We expect the inventory balance of fixed contracts at the end of fiscal 2024 to be approximately $40 million, down from approximately $80 million at the end of fiscal 2023. We currently estimate the balance of fixed contracts to be normalized as of fiscal year end 2025.

我們預計 2024 財年末固定合約的庫存餘額約為 4,000 萬美元，低於 2023 財年末的約 8,000 萬美元。我們目前估計固定合約餘額將在 2025 財年末正常化。

The balance at the end of each year assumes the addition of $20 million of new fixed contracts less than expected six quarter consumption. Our KPIs continue to indicate strength in the business.

每年年底的餘額假設新增 2000 萬美元的新固定合約少於預期的六個季度消耗量。我們的關鍵績效指標持續顯示業務實力。

As stated earlier, our penetration of global auto production for the trailing 12-months stays steady at 54%. This means over half of global auto production includes some level of embedded Cerence technology.

如前所述，過去 12 個月我們在全球汽車生產中的滲透率穩定在 54%。這意味著全球一半以上的汽車生產都包含一定程度的嵌入式 Cerence 技術。

11.7 million cars with Cerence technology were shipped in the quarter. This is up 4% year over year, outperforming macro trends and reflects the improving production environment and our continuing strong competitive position.

本季搭載 Cerence 技術的汽車出貨量為 1,170 萬輛。這一數字年增 4%，跑贏了宏觀趨勢，反映了生產環境的改善和我們持續強勁的競爭地位。

Cars produce that use our connected services increased 16% year over year, reflecting the trend of cars being increasingly connected and the growth in our ability to successfully provide our customers with innovative cloud-based solutions.

使用我們的互聯服務的汽車產量同比增長 16%，反映了汽車日益互聯的趨勢以及我們成功為客戶提供創新的基於雲端的解決方案的能力的增長。

For fiscal year 2023, total billings grew 6% compared to the previous year, excluding professional services and prepaid contracts. We believe that this metric provides investors with insight into our core underlying business and revenue trends.

2023 財年，總帳單較上年成長 6%，不包括專業服務和預付合約。我們相信，這項指標可以讓投資者深入了解我們的核心業務和收入趨勢。

As a result, we have decided moving forward to provide total adjusting billings growth on a trailing 12-month basis over the previous trailing 12 months. We will no longer provide a billings per car KPI as we believe that there are many factors that can impact this metric as constituted.

因此，我們決定繼續提供過去 12 個月內過去 12 個月的調整帳單增長總額。我們將不再提供每輛車的帳單 KPI，因為我們認為有許多因素會影響該指標的組成。

As we have discussed, the billings per car metric is influenced by expansion in emerging markets where typically customers start out with a small number of solutions with low price per unit per car, thereby impacting the average billings per car across our entire customer base.

正如我們所討論的，每輛車的帳單指標受到新興市場擴張的影響，在新興市場中，客戶通常會從少量的解決方案開始，每輛車的單位價格較低，從而影響我們整個客戶群的每輛車的平均帳單。

We are very pleased with the 6% year-over-year growth in total adjusted billings. And we believe that this is a positive indicator of our potential future revenue growth. We have also made the decision to replace the average contract period KPI with growth in deferred revenue.

我們對調整後帳單總額年增 6% 感到非常滿意。我們相信，這是我們未來潛在收入成長的正面指標。我們也決定以遞延收入的成長取代平均合約期 KPI。

We believe that deferred revenue provides a more reliable view of our future revenue potential rather than relying on a metric based on bookings and subject to the same issues as the billings per car comment I made a moment ago. We also saw a large increase in monthly active users, 30% year over year, indicating increasing popularity among users of our technology.

我們相信，遞延收入可以更可靠地了解我們未來的收入潛力，而不是依賴基於預訂的指標，並且受到與我剛才評論的每輛車的賬單相同的問題。我們也看到每月活躍用戶大幅成長，年增 30%，這表明我們的技術在用戶中越來越受歡迎。

During the quarter, we were informed by our legacy connected services customer, Toyota, that they were electing to terminate the service offering effective December 31, 2023.

本季度，我們的傳統互聯服務客戶豐田告知我們，他們選擇從 2023 年 12 月 31 日起終止提供服務。

As previously communicated prior to this change, Cerence would have recorded revenue associated with this contract of approximately $8.4 million per quarter through Q1 fiscal 2026, meaning the end of calendar year 2025 as that contract was wound down.

正如之前所傳達的那樣，到 2026 財年第一季度，Cerence 將記錄與該合約相關的每季度約 840 萬美元的收入，這意味著該合約將在 2025 日曆年結束時終止。

As you may recall, there is no cash flow associated with this contract and Cerence has been amortizing the revenue of a connected services program acquired by Nuance in 2013. In fact, most of the cash associated with this service was collected by Nuance prior to our split into a separate company.

您可能還記得，沒有與此合約相關的現金流，並且Cerence 一直在攤銷Nuance 於2013 年收購的互聯服務計劃的收入。事實上，與此服務相關的大部分現金都是Nuance 在我們之前收取的。分拆為獨立的公司。

The effect of this change is to accelerate any deferred revenue associated with this contract into Q1 of fiscal '24 and we have provided additional detail relating to the revenue impact by fiscal period through 2026 to provide further visibility.

這一變化的影響是將與本合約相關的任何遞延收入加速到24 財年第一季度，並且我們提供了與截至2026 年財期的收入影響相關的更多詳細信息，以提供進一步的可見性。

Therefore, our guidance for the first quarter includes approximately $73.6 million in revenue associated with this change. Following Q1, there will be no more legacy revenue to report which results in a cleaner view of the business going forward.

因此，我們對第一季的指導包括與此變化相關的約 7,360 萬美元的收入。第一季之後，將不再有遺留收入需要報告，這將使我們對未來的業務有更清晰的認識。

Now turning to revenue guidance for Q1 and fiscal year, as previously mentioned, another significant change in our revenue profile is a purposefully manage decision to move the limit of fixed contracts to a maximum of $20 million per year starting in fiscal '24.

現在轉向第一季和財年的收入指導，如前所述，我們收入狀況的另一個重大變化是有目的地管理決定，從 24 財年開始將固定合約的限額提高到每年最多 2000 萬美元。

Given our experience, we believe this is an appropriate level and balanced approach to managing fixed contracts at this time. We do not expect any fixed contracts in Q1, and the best estimate we can provide at this time would be to spread the $20 million relatively evenly throughout the balance of the fiscal year with the caveat that actual execution of fixed contracts can vary quarter to quarter.

根據我們的經驗，我們認為這是目前管理固定合約的適當水平和平衡方法。我們預計第一季不會有任何固定合同，目前我們可以提供的最佳估計是將2000 萬美元相對均勻地分配到整個財年的剩餘時間，但需要注意的是固定合同的實際執行可能會因季度而異。

Incorporating the impacts related to the termination of legacy services and the reduction of fixed contracts, we are guiding our Q1 revenue to be $132 million (sic - see slide 18, "128") to $136 million (sic - see slide 18, "132"). For the full fiscal year, we expect revenue to between $355 million to $375 million.

考慮到與終止遺留服務和減少固定合約相關的影響，我們指導第一季收入為1.32 億美元（原文如此- 參見投影片18，「128」）至1.36 億美元（原文如此- 參見投影片18， 「132」） 」）。我們預計整個財年的營收將在 3.55 億美元至 3.75 億美元之間。

Note that excluding these two adjustments and the higher estimated consumption of two FY23 fixed contracts, our guidance would have been in the range of $340 million to $360 million. You can see on this slide, the revenue guidance and effect of the associated financial metrics.

請注意，排除這兩項調整以及兩項 2023 財年固定合約的較高估計消耗，我們的指導將在 3.4 億美元至 3.6 億美元之間。您可以在這張投影片上看到收入指引和相關財務指標的影響。

There are several considerations to keep in mind as we review our multiyear targets. First and foremost is that we remain committed to our midterm goal of delivering double-digit revenue growth and approximately 30% adjusted EBITDA margins.

在我們審查多年目標時，需要牢記幾個注意事項。首先也是最重要的是，我們仍然致力於實現兩位數營收成長和約 30% 調整後 EBITDA 利潤率的中期目標。

With the legacy contract in the rearview mirror after Q1, we expect to see improved adjusted EBITDA to CFFO performance since the legacy contracts are no longer generating cash.

隨著第一季後遺留合約成為後視鏡，我們預計調整後的 EBITDA 與 CFFO 的績效將有所改善，因為遺留合約不再產生現金。

In addition, with our expected growth in connected services, we expect cash generation to increase as billings for the full subscription period takes place at the start of the period and that revenue is then amortized.

此外，隨著我們對互聯服務的預期增長，我們預計現金產生量將會增加，因為整個訂閱期的帳單是在該期開始時進行的，然後收入將被攤銷。

While we believe new connected services revenue growth will lag to some degree due to the amortization effect, the expected increase in billings would lead to significant growth in cash flow and deferred revenue.

雖然我們認為由於攤銷效應，新的互聯服務收入成長將在一定程度上滯後，但預計的帳單成長將導致現金流和遞延收入大幅成長。

As mentioned earlier, the reduction in annual fixed contracts from $40 million per year to $20 million per year is expected to yield two benefits.

如前所述，年度固定合約從每年 4000 萬美元減少到每年 2000 萬美元預計會產生兩個好處。

First, fewer fixed contracts means there is no additional discount from the original contracted price. Second, fewer fixed contracts ultimately will lead to lower consumption of existing inventory and therefore, increase our quarterly reported variable revenue.

首先，固定合約減少意味著原合約價格沒有額外折扣。其次，固定合約的減少最終將導致現有庫存的消耗減少，從而增加我們季度報告的可變收入。

Since our Investor Day last November, generative AI and large language models have become the main focus of our future innovation that can enhance the realization of our vision of an immersive cabin experience.

自去年 11 月的投資者日以來，生成式人工智慧和大型語言模型已成為我們未來創新的主要焦點，可以增強我們沉浸式客艙體驗願景的實現。

While these technologies are not new to Cerence, we do see the opportunity to greatly enhance the user experience for our end users by accelerating the application and in cooperation of the latest developments in this area.

雖然這些技術對 Cerence 來說並不新鮮，但我們確實看到了透過加速應用並配合該領域最新發展來極大增強最終用戶的用戶體驗的機會。

As a result, we have shifted our investment strategy from focusing on the organic software adjacencies in the car we discussed last November to investing in the development of a market leading software platform that integrates the latest in generative AI.

因此，我們的投資策略從去年 11 月討論的汽車中的有機軟體鄰接轉向投資開發整合最新生成人工智慧的市場領先軟體平台。

We believe we are in a prime position to capitalize on our innovative capabilities and favorable trends within AI. We will now opportunistically look for partnerships for these adjacencies rather than solely developing them organically.

我們相信，我們處於利用人工智慧領域的創新能力和有利趨勢的有利地位。我們現在將機會主義地為這些鄰近地區尋找合作夥伴，而不是僅僅有機地發展它們。

With that as the backdrop and the expectation of low single digit production growth as forecasted by IHS, let me now provide you with additional insights in our plans. We continuously look for ways to provide further insight into the drivers of our core business.

在此背景下，以及 IHS 預測的低個位數產量成長預期，現在讓我為您提供有關我們計劃的更多見解。我們不斷尋找方法來進一步了解我們核心業務的驅動因素。

One of the projects we instituted this past fiscal year was to create a process to support the semi-annual reporting of five-year backlog. That project strengthen our insight of the revenue conversion cycle. Our improved insight, along with the evolution of our destination next strategy resulted in an update to our multiyear revenue targets, especially for FY26 and beyond.

我們在上一財政年度啟動的專案之一是創建一個流程來支援五年積壓的半年度報告。此專案增強了我們對收入轉換週期的洞察。我們洞察力的提高以及我們下一個目的地策略的發展導致我們更新了多年收入目標，特別是 2026 財年及以後的收入目標。

Moving forward, we will not be reporting bookings, only five year backlog semi-annually. For fiscal 2023, total bookings were $455 million. We believe five-year backlog, auto license and auto connected revenue visibility, and deferred revenue growth are better indicators of revenue growth in the short, medium, and long term.

展望未來，我們將不再報告預訂情況，僅每半年報告五年的積壓情況。 2023 財年，總預訂額為 4.55 億美元。我們認為，五年積壓、汽車牌照和汽車互聯收入可見度以及遞延收入成長是短期、中期和長期收入成長的更好指標。

Total bookings, which are very lumpy and consisting deals of varying length are not a reliable indicator of short and intermediate term revenue conversion on a comparative basis.

總預訂量非常不穩定且包含不同長度的交易，在比較基礎上並不是短期和中期收入轉換的可靠指標。

As a result, we will report five-year backlog and visibility on a semi-annual basis moving forward. Overall, our five-year backlog increased by approximately $140 million, up 13% from the end of fiscal '22 to a strong $1.2 billion. You can see license revenue backlog grew 31% and connected backlog grew 5%, mainly due to the influence of the legacy contracts. Professional services backlog was down $2 million or 2%.

因此，我們將每半年報告五年的積壓和可見度。總體而言，我們的五年積壓訂單增加了約 1.4 億美元，比 22 財年末成長了 13%，達到 12 億美元。可以看到許可證收入積壓增加了 31%，連接積壓增加了 5%，主要是由於遺留合約的影響。專業服務積壓工作減少了 200 萬美元，即 2%。

As a reminder, we expect professional services to be flat to down. Professional services serves as an enabler of our licenses and connected services, but is not relied upon as a growth driver for the business. What is important is the better visibility that we believe our backlog provides into the long-term growth of the company.

提醒一下，我們預計專業服務將持平甚至下降。專業服務是我們的許可證和連接服務的推動者，但不被視為業務成長的驅動力。重要的是我們相信我們的積壓訂單可以為公司的長期成長提供更好的可見性。

This slide provides additional insight to the current visibility that we have to our future business. On the top left, you see a table depicting the various stages of the expected contribution to backlog.

這張投影片提供了對我們目前對未來業務的了解的更多見解。在左上角，您可以看到一個表格，描述了積壓的預期貢獻的各個階段。

In production means this is an active program already in production and currently generating revenue. The contribution to revenue in this category is mainly driven by auto production levels. Pending SOP is defined as a program under contract with us that is still in development that we expect to start production during the year. The last category is the additional contribution we will need to generate from new contracts.

正在製作中意味著這是一個已經在製作中並且正在產生收入的活躍項目。此類別收入的貢獻主要由汽車生產水準推動。待定的 SOP 被定義為與我們簽訂的合約中仍在開發中的計劃，我們預計將在年內開始生產。最後一類是我們需要從新合約產生的額外貢獻。

The same logic applies to the table in the upper right, but this reflects our visibility into our new connected services.

同樣的邏輯也適用於右上角的表格，但這反映了我們對新互聯服務的可見性。

The table at the bottom reflects our view of the approximate expected contribution from backlog for each year. As you can see in the table provided, we continue to have a high degree of visibility into our expected revenues, including approximately 88% to 93% visibility in 2024 and approximately 79% to 84% in 2025.

底部的表格反映了我們對每年積壓訂單的大致預期貢獻的看法。正如您在提供的表格中所看到的，我們對預期收入繼續保持高度的可見性，包括 2024 年約 88% 至 93% 的可見性和 2025 年約 79% 至 84% 的可見性。

As you would expect, the fiscal year we are providing guidance for is at a higher percentage than years further out. But nonetheless, the nature of our business was not purely classified as recurring provides very good visibility because of the typical four to five year lifecycle of a new infotainment program.

正如您所期望的，我們提供指導的財政年度的百分比高於未來幾年。但儘管如此，由於新的資訊娛樂程序的生命週期通常為四到五年，因此我們的業務性質並沒有純粹歸類為經常性提供非常好的可見性。

This chart reflects the percentage of revenue defined as repeatable. We define as repeatable all product revenue, excluding fixed contracts and pro services. You can see a very high percentage of our revenue is repeatable with 76% in FY24 and growing to 77% by FY27.

此圖表反映了定義為可重複的收入百分比。我們將所有產品收入定義為可重複的，不包括固定合約和專業服務。您可以看到，我們的收入有很大一部分是可重複的，2024 財年為 76%，到 ​​2027 財年將成長到 77%。

Again, this provides us with confidence in our strong revenue generation capacity and the high quality of our revenue stream. We are expecting strong growth in our connected services business because the revenue was amortized over the subscription timeframe, revenue growth lags both increases in billings and deferred revenue.

這再次讓我們對我們強大的創收能力和高品質的收入流充滿信心。我們預計我們的互聯服務業務將強勁成長，因為收入是在訂閱期限內攤銷的，收入成長落後於帳單和遞延收入的成長。

To provide further insight into that dynamic, this chart shows the expected progression of our connected services business. We have stripped out any deferred revenue associated with the Toyota legacy contract. You can see strong expected growth in connected billings, which translates to cash generation, followed by fast growing deferred revenue.

為了進一步了解這一動態，此圖表顯示了我們互聯服務業務的預期進展。我們已經剔除與豐田遺留合約相關的任何遞延收入。您可以看到互聯帳單的強勁預期成長，這轉化為現金生成，隨後是快速成長的遞延收入。

Additionally, you can see the effect of the compounding of cars on the road using our connected services as each year progresses.

此外，隨著時間的推移，您可以看到使用我們的互聯服務在道路上混合汽車的效果。

Putting it all together, this table represents our updated multiyear targets. We are reiterating our goal from a year ago that, in the midterm, we would be on a path of double-digit revenue growth and approximately 30% adjusted EBITDA margins. You can also see the strong growth in cash flow from operations expected to be delivered if we achieve these targets.

總而言之，這張表代表了我們更新的多年目標。我們重申一年前的目標，在中期，我們將實現兩位數的營收成長和約 30% 的調整後 EBITDA 利潤率。您還可以看到，如果我們實現這些目標，預計將實現的營運現金流強勁成長。

We have provided increased detail and disclosure to provide further insight into our business and the drivers supporting our belief in our strong future performance. As a reminder, there were several changes incorporated into these targets. As we have previously noted, approximately $10 million of consumption moved from FY23 to FY24 due to the projected consumption timeframe on to FY23 prepaid deals versus our target assumptions.

我們提供了更多的細節和披露，以進一步了解我們的業務以及支持我們對未來強勁業績的信念的驅動因素。提醒一下，這些目標包含了一些變化。正如我們之前指出的，由於 2023 財年預付費交易的預期消費時間框架與我們的目標假設不同，大約 1000 萬美元的消費從 2023 財年轉移到 2024 財年。

In FY25, approximately $34 million, and in FY26, approximately $9 million of revenue was reduced due to the acceleration of Toyota deferred revenue due to their decision to decommission their solution earlier than planned.

2025 財年，收入減少了約 3,400 萬美元；26 財年，收入減少了約 900 萬美元，原因是豐田決定提前停用其解決方案，導致遞延收入加速。

On the table, you can see a total revenue line at the top of the chart. This line reflects the expected revenue we will report. The third and fourth lines remove any Toyota legacy revenue from the years represented. (technical difficulty)

在表格中，您可以在圖表頂部看到總收入線。這條線反映了我們將報告的預期收入。第三行和第四行刪除了所代表年份的任何豐田傳統收入。 （技術難度）

So you can clearly see the anticipated projection of growth without the influence of the legacy revenue. The estimates also reflect a reduction of fixed contracts from approximately $40 million to $20 million per year starting in FY24.

因此，您可以清楚地看到預期的成長預測，而不受遺留收入的影響。該估計還反映出，從 2024 財年開始，固定合約從每年約 4,000 萬美元減少到 2,000 萬美元。

As a reminder, moving forward we'd expect to only offer prepaid fixed contracts. The revenue presented has been adjusted to reflect our strategic pivot from noncore automotive technology plays that we feel would be better served through partnerships. We currently see an exciting opportunity to capitalize on our strong capabilities and favorable trends within AI.

提醒一下，今後我們預計將只提供預付費固定合約。所列收入已進行調整，以反映我們從非核心汽車技術領域的策略重點，我們認為透過合作夥伴關係可以更好地服務這些領域。目前，我們看到了一個令人興奮的機會，可以利用我們在人工智慧領域的強大能力和有利趨勢。

As a result, we are focusing our investments in a new software platform, utilizing the latest and generative AI and large language models. I encourage all of you to visit our booth at CES this January to learn more. It is really exciting what Iqbal and Nils are developing for our customers, and the early feedback is quite encouraging.

因此，我們將投資重點放在新的軟體平台上，利用最新的生成式人工智慧和大型語言模式。我鼓勵大家今年一月參觀我們在 CES 上的展位以了解更多資訊。伊克巴爾和尼爾斯為我們的客戶開發的產品確實令人興奮，早期的回饋也非常令人鼓舞。

And finally, as I mentioned earlier, our project to report five-year backlog on a semi-annual basis led us to a deeper analysis of revenue from deals won that are in production and scheduled production. It also provided us with an improved assessment of new deals required and the revenue conversion cycle within the target revenue period. The results of this analysis are also reflected in this table.

最後，正如我之前提到的，我們每半年報告五年積壓訂單的項目使我們能夠對在生產和計劃生產中贏得的交易的收入進行更深入的分析。它還為我們提供了所需新交易和目標收入期內收入轉換週期的改進評估。此分析的結果也反映在該表中。

In summary, we are truly excited about the direction of Cerence under the current leadership team. We believe our investments in the latest technologies will allow Cerence to remain the leader in the AI-powered immersive cabin experience in the transportation space.

總之，我們對目前領導團隊領導下的 Cerence 的發展方向感到非常興奮。我們相信，我們對最新技術的投資將使 Cerence 繼續在交通領域人工智慧驅動的沉浸式客艙體驗領域保持領先地位。

This concludes our prepared remarks, and now we will open up the call for questions.

我們準備好的演講到此結束，現在我們將開始提問。

(Operator Instructions) Luke Junk, Baird.

（操作員說明）Luke Junk，Baird。

Good morning. Thanks for taking the questions. First set is just hoping you can help build us the bridge from the prior fiscal '24 indication to what you're formally guiding for fiscal 2024 now.

早安.感謝您提出問題。第一組只是希望您能幫助我們架起一座橋樑，從先前的 24 財年指示到您現在正式為 2024 財年制定的指導方針。

I think some pieces of this are pretty straightforward in terms of the legacy contract piece, plus the reduced target for fixed contracts. Maybe you could just focus on the other moving parts in the quarter that we're seeing in the updated numbers? Thank you.

我認為其中一些部分就遺留合約部分而言非常簡單，加上固定合約的降低目標。也許您可以只關注我們在更新數據中看到的本季的其他活動部分？謝謝。

Rich, you want to take that?

里奇，你想接受嗎？

Sure. So if you look at fiscal '24 again, the guidance is $355 million to $375 million. The consumption shift, if you remember, we talked about how there was the two fixed contracts in fiscal year '23, the one in Q1 that had an eight quarter consumption period, and the one in Q4 had a four quarter consumption period, which differs from our six quarter consumption model that was going to push about $10 million of consumption into fiscal '24. So that's one factor.

當然。因此，如果您再次查看 24 財年，指引值為 3.55 億至 3.75 億美元。消費轉變，如果你還記得的話，我們討論過23 財年有兩份固定合同，第一季度的一份有八個季度的消費期，第四季度的一份有四個季度的消費期，兩者不同根據我們的六季消費模型，該模型將在 24 財年推動約 1000 萬美元的消費。這是一個因素。

The second factor is the reduction of $20 million of prepay over fixed contracts from the $40 million down to $20 million. So we originally provided the target for '24. It was using a $40 million prepay or fixed contract. Now that's $20 million. And then the adjustment for the third piece is the adjustment for the total.

第二個因素是固定合約預付款從 4000 萬美元減少到 2000 萬美元，減少了 2000 萬美元。所以我們最初提供了 24 年的目標。它使用的是 4000 萬美元的預付款或固定合約。現在是 2000 萬美元。然後第三塊的調整就是總數的調整。

So again, those are the three pieces that if you take the guidance that we gave today, which was $355 million to $375 for fiscal '24, would have been, if those factors weren't in play, $340 million to $360 million.

再說一遍，如果您採用我們今天給出的指導（24 財年為 3.55 億至 375 美元），那麼這三部分將是 3.4 億至 3.6 億美元（如果這些因素沒有發揮作用）。

Got it. And then -- thanks for that, Rich. A bigger picture question, just you mentioned, the proof-of-concept programs that you have going on right now with generative AI and large language models.

知道了。然後——謝謝你，里奇。剛才您提到了一個更大的問題，您現在正在使用生成式人工智慧和大型語言模型進行概念驗證程式。

Just wondering how close we should think to booking those programs are or just said differently, as you make this pivot, how you're measuring yourself on relative to customer reception and ultimately getting bookings on this new software platform?

只是想知道我們應該認為預訂這些節目有多接近，或者只是換句話說，當你做出這個轉變時，你如何衡量自己相對於客戶接待並最終在這個新的軟體平台上獲得預訂？

Hey, good morning, Luke. It's Stefan here. Let me take it forward and then I will hand over to Nils.

嘿，早上好，盧克。這是斯特凡。讓我繼續，然後我將把工作交給尼爾斯。

So what we discussed was over the last couple of quarters is that we have created now a software platform. It's highly differentiated in AI. It's going far beyond NLU and also we have integrated generative AI with large language models in combination with automotive data.

所以我們在過去幾個季度討論的是我們現在已經創建了一個軟體平台。它在人工智慧方面具有高度差異化。它遠遠超出了自然語言理解 (NLU) 的範疇，而且我們也將生成式人工智慧 (generative AI) 與大型語言模型以及汽車資料結合。

You know that we have access to all of the sensitive data, in-car data, and also advancing the complete solution also called Cerence Assistant platform with proactive AI. As I mentioned, also we had last quarter, 15 proof-of-concept programs across the globe, North America, Europe, China, Asia-Pacific in general.

您知道，我們可以存取所有敏感數據、車內數據，並推進完整的解決方案（也稱為具有主動人工智慧的 Cerence 助理平台）。正如我所提到的，上個季度我們在全球（北美、歐洲、中國和整個亞太地區）開展了 15 個概念驗證專案。

The feedback is very, very good. And also, as Nils mentioned in this multi-year, right, you will see also the big announcement at CES. It was one of the largest carmaker. We're moving into this direction. And you will see also, of course, bookings over the next couple of months here for sure.

反饋非常非常好。而且，正如 Nils 在這個多年期中提到的那樣，您還將在 CES 上看到重大公告。它是最大的汽車製造商之一。我們正在朝這個方向前進。當然，您肯定也會在這裡看到未來幾個月的預訂情況。

And Nils mentioned also that we will go live in the first quarter of next calendar year and, obviously, our first solution here. And I think we are extremely well positioned here right across the globe with large OEMs, but also with innovative OEMs. Nils, any additional comments from your side?

尼爾斯也提到，我們將在明年第一季上線，顯然，這是我們的第一個解決方案。我認為我們在全球範圍內與大型原始設備製造商以及創新原始設備製造商都處於非常有利的位置。尼爾斯，您還有其他意見嗎？

Maybe just one. You have a well summarized, but what I would add is that basically with the products I introduced to you, we can upgrade really existing platforms in the field.

也許只有一個。您總結得很好，但我要補充的是，基本上透過我向您介紹的產品，我們可以升級該領域真正現有的平台。

So we do this via cloud updates only or in some cases also via over-the-air updates. And this allows us basically to go live here and deploy these programs or to deploy these products in the next weeks. And as mentioned, we will go live in calendar quarter one with first customers here.

因此，我們僅透過雲端更新來完成此操作，或者在某些情況下還透過無線更新來完成此操作。這使得我們基本上可以在這裡上線並部署這些程式或在接下來的幾週內部署這些產品。如前所述，我們將在第一季與這裡的第一批客戶一起上線。

If I can just sneak one more in, in terms of the midterm indication, maybe a question for Tom. Just how we should think about R&D at a high level as you pivot away from adjacencies in the car to AI modulating models and what a partnership in that respect might look like as well? Thank you.

如果我能再偷偷加入一個，就中期指標而言，也許是湯姆的一個問題。當你從汽車領域的鄰接轉向人工智慧調節模型時，我們該如何從高層次思考研發，以及在這方面的合作關係可能會是什麼樣子？謝謝。

Yeah, sure. Look, so we continue to invest heavily in R&D. We assess that every year with Iqbal and his team. We drive some efficiencies and savings and then we invest that.

好，當然。看，所以我們繼續大力投資研發。我們每年都會與伊克巴爾和他的團隊一起評估這一點。我們提高效率並節省開支，然後進行投資。

I think if you look at some of our midterm targets where we're trying to hit the 30%-plus EBITDA, and I think R&D will continue to be down relatively consistent, a little bit of leverage from a percent of revenue standpoint.

我認為，如果你看看我們的一些中期目標，我們正在努力實現 30% 以上的 EBITDA，而且我認為研發將繼續相對一致地下降，從收入百分比的角度來看，會有一點槓桿作用。

But as we've talked about previously in our sales and marketing and G&A, I think we have a fair amount of leverage in those two areas. And we will continue to generate strong gross margins through the license and connected services business.

但正如我們之前在銷售和行銷以及一般管理費用方面所討論的那樣，我認為我們在這兩個領域擁有相當大的影響力。我們將繼續透過授權和互聯服務業務創造強勁的毛利率。

And one additional comment to add, the beauty of our new software-based platform is that we can also utilize our data and platform for our non-transportation segment. I'll leave it there.

還要補充一點，我們基於軟體的新平台的優點在於，我們還可以將我們的數據和平台用於非運輸領域。我會把它留在那裡。

Colin Langan, Wells Fargo.

柯林‧蘭根，富國銀行。

Great. Thanks for taking my questions. But just to follow up on the first question, if we look at the adjusted guidance of $340 million to $360 million ex special items, it would still be below the $385 million, I guess, you called it a target at the Investor Day last year.

偉大的。感謝您回答我的問題。但就第一個問題來說，如果我們看看調整後的指引，即3.4 億美元至3.6 億美元（不含特殊項目），它仍然低於3.85 億美元，我猜，你在去年的投資者日稱其為目標。

And then if I go out to '26, the midpoint of your target for '26 is now $375 million versus last year's $515 million, so substantially lower. What is driving that near term, long term, lower outlook?

然後，如果我到 26 年，你們 26 年目標的中點現在是 3.75 億美元，而去年是 5.15 億美元，所以要低得多。是什麼推動了短期、長期、較低的前景？

Maybe let me tackle it first Tom and then you will comment on the words. So we have made a strategic move compared to last year's Investor Day where we said, okay, we are focused on also on other organic opportunities. We strongly believe focusing on generative AI and large language models will have a higher return of investment in the future.

也許讓我先解決這個問題，湯姆，然後你會對這些話發表評論。因此，與去年的投資者日相比，我們採取了一項策略性舉措，當時我們說，好吧，我們也關注其他有機機會。我們堅信，專注於生成式人工智慧和大型語言模式將在未來獲得更高的投資回報。

For FY24, we have picked in the opportunities with respect to generative AI, but not in the outer years, right? Then we have the Toyota case and then also what Rich mentioned, right, we have reduced also the prepayments from $40 million to $20 million for the upcoming years. Tom, please.

對於 2024 財年，我們已經選擇了產生人工智慧的機會，但不是在外部年份，對嗎？然後我們有豐田案例，還有里奇提到的，對吧，我們還將未來幾年的預付款從 4000 萬美元減少到 2000 萬美元。湯姆，請。

Yeah, Stefan, I think you covered it well. So I think it really is those three drivers, right? A refocus and really alignment to our opportunities that we feel, as Nils talked about and Stefan, and therefore, a little bit lower revenues from some of those adjacency technologies that we think are better served through partnerships. And then, of course, the effect of the legacy pull-in and what we think is the right thing for the business which is the lower prepaid amounts.

是的，Stefan，我認為你講得很好。所以我認為確實是那三個司機，對吧？正如尼爾斯和斯特凡所談到的，我們重新關注並真正適應了我們所感受到的機會，因此，我們認為透過合作夥伴關係可以更好地服務的一些鄰接技術的收入會稍微降低。當然，還有遺留拉入的影響以及我們認為對企業來說正確的事情，即較低的預付金額。

And any examples of what you're not targeting now for the market opportunities that you're letting go to out to partners, I guess?

我想，還有什麼例子可以說明您現在不瞄準哪些市場機會而留給合作夥伴？

Well, I think if you remember in the investor presentation there were some adjacent activities in supplying some data and information that's our core to the three product strategies that Nils laid out and I think we're just refocusing our investments on the core. Is there anything you can add to that, Nils?

好吧，我想，如果你還記得在投資者演示中，有一些相鄰的活動提供了一些數據和信息，這是我們尼爾斯提出的三種產品策略的核心，我認為我們只是將投資重新集中在核心。尼爾斯，你還有什麼可以補充的嗎？

No, exactly. I mean we have presented back in the time a couple of initiatives that we wanted to expand, for instance in the biometrics field, and there we have shifted now some of these programs more to the LLM-based architecture and really upgrading our portfolio with generative AI. That is the full focus.

不，確切地說。 I mean we have presented back in the time a couple of initiatives that we wanted to expand, for instance in the biometrics field, and there we have shifted now some of these programs more to the LLM-based architecture and really upgrading our portfolio with generative人工智慧.這就是全部焦點。

Got it. And just lastly, with the new change on fixed contracts down to $20 million, when should we think of that sort of consumption versus revenue stabilizing? Is that now like a 2026 timeframe where those kind of even out?

知道了。最後，隨著固定合約的新變化降至 2000 萬美元，我們什麼時候應該考慮這種消費與收入的穩定？現在是 2026 年的時間框架嗎？

Colin, that's correct.

科林，這是正確的。

Quinn Bolton, Needham.

奎因·博爾頓，李約瑟。

Hey, guys. Thanks for letting me ask a question. First, I just wanted to clarify the decline in the connected backlog. Is that due entirely to the Toyota Legacy coming out of that figure?

大家好。謝謝你讓我問一個問題。首先，我只是想澄清一下連接積壓的下降。這完全是由於豐田力獅的出現嗎？

Yeah. That's mostly. As you can see from some of the other metrics that we provided, the connected services across the billings has been growing quite well, even the new connected services have been growing in the last few quarters.

是的。大部分都是這樣。正如您從我們提供的其他一些指標中看到的那樣，整個帳單中的互聯服務增長得相當好，甚至新的互聯服務在過去幾個季度也一直在增長。

And then as we stated, I think if you look at our deferred revenue, historically and on a go-forward basis, it's the kind of best indicator of the future revenue growth, which lags a little bit due to the amortization schedule. But connected services, I think, is performing right well and we think it's going to be a big growth driver going forward.

然後，正如我們所說，我認為，如果你從歷史和未來的角度來看我們的遞延收入，它是未來收入成長的最佳指標，由於攤銷時間表，未來收入成長有點滯後。但我認為，互聯服務表現良好，我們認為它將成為未來的巨大成長動力。

Got it. And the second question I had is, I think last quarter you talked about the push out of some of the SOPs delaying some of the higher priced offerings, just kind of wondering, you've mentioned a couple of times connected services seeing a delayed effect because of the amortization.

知道了。我的第二個問題是，我想上個季度您談到了推出一些標準操作程序，延遲了一些價格較高的產品，只是有點想知道，您曾多次提到連接服務會產生延遲效應因為攤銷。

Can you give us sort of your outlook just how you're looking at pricing per vehicle as you move into fiscal '24 and perhaps beyond?

您能否向我們介紹一下您在進入 24 財年甚至更長時間後對每輛車定價的看法？

So yeah -- okay, Tom. Please go ahead.

所以是的——好吧，湯姆。請繼續。

So we're continuing to see good PPU growth across. Some of those delayed SOPs have been factored into the '24 guidance and the updated multi-year plan there. But on a total basis, it is an average across our -- high penetration across all the OEMs wherein some OEMs, they start with a couple of our solutions at a lower PPU.

因此，我們將繼續看到 PPU 的良好成長。其中一些延遲的標準操作程序已納入 '24 指南和更新的多年計劃中。但總體而言，這是我們所有原始設備製造商的平均滲透率，其中一些原始設備製造商以較低的 PPU 開始使用我們的幾個解決方案。

It's a bit of why we think moving to the total billings growth is a better indicator of us continuing to be the preferred supplier in the market and the growth in billings and revenue that will come from that. So the products that Nils talked about all carry a pretty high PPU across them.

這就是為什麼我們認為總帳單成長是我們繼續成為市場首選供應商以及由此帶來的帳單和收入成長的更好指標。所以尼爾斯談到的產品都有相當高的 PPU。

Yeah. So maybe what we can say here is actually three factors. So first of all, we have high visibility into our OEMs, SOPs, right? Special thanks also to Nils because he's also driving professional services across the globe.

是的。所以也許我們在這裡可以說的其實是三個因素。首先，我們對我們的 OEM、SOP 有很高的知名度，對嗎？也要特別感謝尼爾斯，因為他還在全球範圍內推動專業服務。

Secondly, for new programs, we see, indeed, a higher PPU across embedded and cloud. And thirdly, what Nils also mentioned is now we have opportunities for upselling, meaning bringing new innovations on SOP cars, meaning cars on the road.

其次，對於新程序，我們確實看到了跨嵌入式和雲端的更高 PPU。第三，尼爾斯也提到，現在我們有機會進行追加銷售，這意味著為 SOP 汽車帶來新的創新，這意味著汽車上路了。

Yeah. And that was going to be my sort of second or perhaps third question. It was just, you talked a lot about the new software offerings around LLMs and generative AI, the first of which goes into production in the calendar first quarter.

是的。這將是我的第二個問題或第三個問題。只是，您談論了很多圍繞法學碩士和生成人工智慧的新軟體產品，其中第一個軟體產品將於第一季投入生產。

Can you talk how does that affect PPU? I would assume that that probably comes in as a pretty good PPU as you deliver those software, but wondering if you might be able to provide any additional color on how you're thinking about pricing the new AI and LLM offerings. Thank you.

您能談談這對 PPU 有何影響嗎？我認為，當您交付這些軟體時，這可能是一個非常好的 PPU，但想知道您是否能夠提供任何額外的資訊來說明您如何考慮對新的 AI 和 LLM 產品進行定價。謝謝。

We cannot share everything here for sure. But you will see a big announcement during CES with one of the largest car makers worldwide. We are addressing already SOP cars but also new programs with our new LLM based architecture. Nils additional comments from your side?

我們不能肯定地分享這裡的一切。但您會在 CES 期間看到全球最大的汽車製造商之一發布的重大公告。我們已經在解決 SOP 汽車的問題，但也在解決基於新的 LLM 架構的新專案。尼爾斯您那邊還有什麼意見嗎？

No, exactly as you said, we will not share let's say pricing details here, but basically we see a lot of demand from all our OEMs, from all our customers supporting them with exactly the products I presented.

不，正如您所說，我們不會在這裡分享定價細節，但基本上我們看到所有原始設備製造商和所有客戶的大量需求，他們用我展示的產品來支持他們。

So it's really about not just plugging in ChatGPT. We clearly hear here from customers that this is not sufficient, instead they need our infrastructure and our layer in between to support them managing the cost, ensuring best performance, and really provide safe and reliable information which they provide to the end user.

所以這實際上不僅僅是插入 ChatGPT。我們清楚地從客戶那裡聽到，這還不夠，相反，他們需要我們的基礎設施和中間層來支援他們管理成本，確保最佳效能，並真正向最終用戶提供安全可靠的資訊。

Mark Delaney, Goldman Sachs.

馬克·德萊尼，高盛。

Yes. Good morning and thanks for taking my questions. First, I was hoping to better understand the dynamics of Toyota. Is Cerence still selling to Toyota just under a different program going forward? Or will they not be a meaningful customer after fiscal 1Q with the acceleration of the deferred revenue?

是的。早安，感謝您提出我的問題。首先，我希望能夠更了解豐田的動態。塞倫斯是否仍在根據不同的計劃向豐田銷售產品？或者在第一個財季之後，隨著遞延收入的加速，他們不會成為有意義的客戶嗎？

Yeah. So we have the preferred partner of Toyota, Toyota North America, Toyota Europe and Toyota Japan, the mother co. As a reminder the program what Tom referred to, goes back to 2011.

是的。所以我們有豐田的首選合作夥伴，豐田北美，豐田歐洲，豐田日本母公司。提醒一下，湯姆提到的計畫可以追溯到 2011 年。

I mean, compared now to the new technologies or applications in the car, it was clearly not competitive and there was also low traffic after almost 12, 13 years and they came to this decision, right? So but still we are working with Toyota on multi-year '24 and other opportunities.

我的意思是，與現在汽車中的新技術或應用相比，它顯然沒有競爭力，並且在近 12、13 年之後流量也很低，他們做出了這個決定，對嗎？因此，我們仍在與豐田就「24 年多年期」和其他機會進行合作。

Okay. And so the new multi-year outlook would assume perhaps maybe sales under these newer contract types and perhaps maybe even some higher, and then would you ship in more under the newer programs, if they're shifting there from this?

好的。因此，新的多年前景可能會假設這些新合約類型下的銷售額可能會更高，甚至可能更高，然後如果他們從新計劃中轉移，你會在新計劃下運送更多嗎？

It's always the newer programs, right, based on Cerence Assistant with all the latest and greatest technology.

它始終是較新的程序，對吧，基於 Cerence Assistant 並具有所有最新和最先進的技術。

Okay. My other question was just on the consumption of fixed contracts. Tom, you mentioned it's slowing down and I think guidance for this coming fiscal year applies maybe $60 million of consumption. So that's maybe -- we understand that the reason that the consumption of the licenses is starting to decline? Thanks.

好的。我的另一個問題是關於固定合約的消耗。湯姆，你提到它正在放緩，我認為下一財年的指導可能適用於 6000 萬美元的消費。那麼這可能是 - 我們了解許可證消耗量開始下降的原因？謝謝。

Yeah. Well it's a combination of the decision, we made starting in Q4 of '22, we didn't do any fixed contracts and then this year we limited it to $40 million. And then on a go-forward basis starting this year to $20 million.

是的。嗯，這是一個綜合的決定，我們從 22 年第四季度開始就做出了這個決定，我們沒有簽訂任何固定合同，然後今年我們將其限制在 4000 萬美元。然後從今年開始向前推進至 2000 萬美元。

So we're adding a lot less to be consumed in the future and then we're burning off the higher levels back in '21 and '22 from both fixed contracts and the minimum commitments deals. And just to remind you, we're not doing any further minimum commitment deals.

因此，我們在未來增加的消耗要少得多，然後我們會從固定合約和最低承諾交易中消耗掉 21 和 22 年的較高水準。謹提醒您，我們不會再進行任何最低承諾交易。

Jeff Van Rhee, Craig Hallam.

傑夫·範·李，克雷格·哈勒姆。

Great. Thanks for taking the questions. Maybe a couple for Nils if I could start with you. On the LLMs, it sounds like you're obviously going with a hybrid architecture. You can expand a little bit further on what are the -- some examples of cost-effective versus non-cost effective, where you might use external versus not?

偉大的。感謝您提出問題。如果我可以從你開始的話，也許給尼爾斯一些。對於法學碩士，聽起來您顯然正在採用混合架構。您可以進一步擴展一些成本效益與非成本效益的例子，您可能會在哪些情況下使用外部設備，哪些情況下不使用外部設備？

Yeah. Sure. So basically, what we are trying to do is really keeping the model parameters optimal. So we really fine-tune the applications to the needs of the OEMs. And then you should know that let's say, the context window in automotive is a bit much smaller which allows us to really manage the cost and have only a viable cost structure.

是的。當然。所以基本上，我們要做的就是真正保持模型參數最優。因此，我們確實根據 OEM 的需求對應用程式進行了微調。然後您應該知道，比方說，汽車領域的上下文視窗要小得多，這使我們能夠真正管理成本並且只有可行的成本結構。

On your point of cloud and in-car systems embedded, so we clearly see that still the solutions the OEM ask us for should also cover embedded so that's clearly the need and there we can we can support with our new solution where we fine-tune based on our automotive specific data and customize it really to the auto use cases for the OEM.

在雲端和嵌入式車載系統方面，我們清楚地看到，OEM 要求我們提供的解決方案仍然應該涵蓋嵌入式，因此這顯然是需要的，我們可以透過我們的新解決方案進行微調來提供支援基於我們的汽車特定數據，並真正根據OEM 的汽車用例進行客製化。

So basically what it means is that we can decide together with the OEM which queries are forwarded to a third-party LLM and which can basically be covered by our conventional AI stack or our proprietary LLM we have built.

所以基本上這意味著我們可以與 OEM 一起決定將哪些查詢轉發給第三方 LLM，哪些查詢基本上可以由我們的傳統 AI 堆疊或我們建立的專有 LLM 覆蓋。

Okay. And then Tom on the Toyota adjustments the -- forgive me if I missed it, Q1, did you break out the impact -- EBITDA impact of Toyota?

好的。然後湯姆就豐田調整了——如果我錯過了，請原諒我，第一個問題，你是否列出了豐田的 EBITDA 影響？

No, but it's a very small, deferred revenue component to it. So most of that whole amount of revenue is profit.

不，但它是一個非常小的遞延收入組成部分。因此，全部收入的大部分都是利潤。

Yeah. Got it. Fair enough. And then maybe lastly on connected, just curious what process improvements you've made with respect to gathering, analyzing, incorporating your learnings from usage on connected.

是的。知道了。很公平。最後，也許是關於連接，只是好奇您在收集、分析和整合從連接使用中學到的知識方面做了哪些流程改進。

Obviously, you get some very valuable data. I think you had some efforts to try to improve the ability to capture that and gain insights. Just what might have changed there?

顯然，您獲得了一些非常有價值的數據。我認為您付出了一些努力來嘗試提高捕捉這一點並獲得見解的能力。那裡可能發生了什麼變化？

Maybe from a -- just for clarity, Jeff, on the technology side?

也許來自——只是為了清楚起見，傑夫，在技術方面？

No, from process-wise. So you get the insights on usage. In the past, I've asked a lot of questions about what features, functions, capabilities are really getting consumed.

不，從流程角度來看。這樣您就可以深入了解使用情況。過去，我問過很多關於哪些特性、功能、能力真正被消耗的問題。

It sounds like there were a lot of steps and initiatives internally to get more precise and understand exactly what people want and were using. Curious, if those initiatives have been implemented and what kind of insights you have on connected usage.

聽起來內部有很多步驟和舉措，可以更精確地了解人們想要什麼和正在使用什麼。很好奇，這些措施是否已經實施，以及您對互聯使用有何見解。

So what we see here, Jeff, is the following. So when comparing year-over-year, we see a year-over-year growth of about 16%. When looking at monthly active user, it's up by 30% or even more year-over-year, right?

傑夫，我們在這裡看到的是以下內容。因此，與去年同期相比，我們看到同比增長約為 16%。從每月活躍用戶來看，年增了 30% 甚至更多，對嗎？

This shows actually that our solution is actually adopted by OEMs customers and finally also our customers, right? Nils and team, we are looking together with the OEMs how to improve further adoption here, that's key to success.

這其實說明我們的解決方案實際上被主機廠客戶採用，最終也是我們的客戶採用，對嗎？ Nils 和團隊，我們正在與 OEM 一起研究如何進一步提高採用率，這是成功的關鍵。

We have also this platform where we can also adapt and adjust the specifics and also creating more personalized information for the drivers and passengers. So overall we are making great progress and we are also related as we are the innovation partner of most of the OEMs, right in close collaboration with the OEMs.

我們也有這個平台，我們可以在其中調整和調整細節，並為駕駛員和乘客創建更個性化的訊息。因此，總體而言，我們正在取得巨大進步，而且我們也是相關的，因為我們是大多數原始設備製造商的創新合作夥伴，與原始設備製造商密切合作。

Chris McNally, Evercore ISI.

克里斯·麥克納利，Evercore ISI。

Thanks so much, team. I appreciate all the numbers. So I wanted to step back and follow up a little bit to Colin's question. If we understand pulling out the transportation adjacencies and non-transportation, we looked at the old multi-year plan and I guess the core auto number for 2026 was $458 million within the $515 million.

非常感謝，團隊。我很欣賞所有的數字。所以我想退後一步，對科林的問題進行一些跟進。如果我們理解取消交通鄰接和非交通，我們看看舊的多年計劃，我猜 2026 年的核心汽車數量是 5.15 億美元中的 4.58 億美元。

So that would be sort of the basis for translating into your 2027 number, which is closer to $400 million. Can we do that walk? So I guess some of it is fixed going from $40 million to $20 million. But is it fair to say that there's also some backlog to revenue conversion even within core auto?

因此，這將成為轉化為 2027 年數字的基礎，該數字接近 4 億美元。我們可以步行嗎？所以我猜其中一部分是固定在 4000 萬美元到 2000 萬美元之間。但可以公平地說，即使在核心汽車領域，收入轉換也存在一些積壓嗎？

I don't think it's so much the backlog conversion, although I think one of the things that we've done this year is, we've continued to strengthen our insights into kind of all of our deals and how they roll out.

我認為這並不是積壓的轉換，儘管我認為我們今年所做的事情之一是，我們繼續加強對我們所有交易及其實施方式的洞察。

That's why we provided the visibility chart on both embedded in and connected on the auto side and trying to break out the deals that are in production, the deals that will be SOP-ed but we've already won the business and then what contribution we need from new bookings and new deals over the next couple of years depending on what periods you're looking at.

這就是為什麼我們提供了汽車方面嵌入和連接的可見性圖表，並試圖分解正在生產的交易、將進行 SOP 的交易，但我們已經贏得了業務，然後我們做出了哪些貢獻未來幾年的新預訂和新優惠需求取決於您所關注的時期。

And then as we said I think besides the prepay on the total again depending on which year you're looking at, most of it is reflective of the focus strategy on the technology roadmap and the product offerings that Nils talked about.

然後，正如我們所說，我認為除了總額的預付款再次取決於您所關注的年份之外，其中大部分反映了尼爾斯談到的技術路線圖和產品供應的重點策略。

Okay, because I think the one that we wanted to -- the one slide I'm on, slide 24, the connected services ramping, I think, appreciate you provide this ex-Toyota.

好的，因為我認為我們想要的 - 我正在使用的幻燈片，幻燈片 24，互聯服務正在不斷增加，我想，感謝您提供這個前豐田。

But if I look at the endpoint, 2027, it looks like $80 million, roughly down from [under $50 million] today, I think there was an expectation of a bigger hockey stick on the connected, versus sort of a 5%, 6% sort of CAGR.

但如果我看看 2027 年的終點，它看起來像是 8000 萬美元，大致低於今天的 [低於 5000 萬美元]，我認為人們期望聯網的曲棍球桿更大，而不是 5%、6%有點複合年增長率。

Can you walk through -- connected, at one point I think there was a $130 million, $140 million guide on connected and the out years clean of Toyota? Just the trajectory of those launches is a lot of the billings that you're receiving now for connected outside of the forecast window, meaning, coming even later than 2027?

你能看一下——互聯，我認為曾經有一本價值 1.3 億美元、1.4 億美元的關於互聯和豐田未來幾年清潔的指南？這些發布的軌跡就是您現在在預測窗口之外收到的大量連網帳單，也就是說，甚至會晚於 2027 年？

Yeah. It's a bit of that, but it's also, as I said, I think it's better visibility into how these programs are ramping. Some of the OEMs have changed how they're rolling this step out. It's not that we've lost the deals, it's just how they're rolling some of these bigger programs out across their model lines.

是的。確實有一點，但正如我所說，我認為這可以更好地了解這些計劃的進展。一些原始設備製造商已經改變了實施這一步驟的方式。這並不是說我們失去了交易，而是他們如何在他們的車型系列中推出一些更大的項目。

And we have really high confidence in this multi-year target number. I mean, we still have a lot to deliver, but I think we're really confident about the ability to get this kind of 10% plus overall growth in the out years here as presented.

我們對這個多年目標數字非常有信心。我的意思是，我們還有很多工作要做，但我認為我們對在未來幾年實現 10% 以上的整體成長非常有信心。

Jeff Osborne, TD Cowen.

傑夫·奧斯本，TD·考恩。

Hey, good morning. Tom, I was wondering if you could flesh out the EBITDA impact to Toyota. You went through a lot on the revenue line, but between the moving pieces, what's the flow-through, in particular in fiscal '25, the impact looks pretty substantial. Is there other variables that perhaps I'm not thinking of?

嗨，早安。湯姆，我想知道您是否可以具體說明 EBITDA 對豐田的影響。你在收入線上經歷了很多，但在移動的部分之間，流量是多少，特別是在 25 財年，影響看起來相當大。還有其他我可能沒有想到的變數嗎？

No. I think as I said to Jeff Van Rhee, you can pretty much assume that most of the revenue is at high 90% gross margin, and that's why you see some of the impact from some of the previous models to today. But we still end up with pretty strong mid-70s overall gross margins on the business.

不。我認為正如我對 Jeff Van Rhee 所說的那樣，您幾乎可以假設大部分收入的毛利率高達 90%，這就是為什麼您會看到以前的一些型號對今天的一些影響。但我們的業務整體毛利率在 70 年代中期仍然相當強勁。

It was few million dollars of deferred cost associated with that, that will all get accelerated into Q1 along with the revenue. But that was a very, very kind of high margin business. And again, with no cash because the cash was collected previously, and of course, the expenses were more on a deferred basis. So the cash associated with those came previously too.

與此相關的數百萬美元的遞延成本將與收入一起加速進入第一季。但這是一項利潤率非常非常高的業務。再說一次，沒有現金，因為現金是之前收取的，當然，費用更多是延期支付的。因此，與這些相關的現金也先到了。

Got it. And just two other quick ones. With the move from $40 million to $20 million on the license side, is there any risk to the OEMs accepting that or have you already had conversations with them?

知道了。還有另外兩個快速的。隨著許可證方面從 4000 萬美元增加到 2000 萬美元，原始設備製造商接受這一點是否存在任何風險，或者您是否已經與他們進行了對話？

Well, if you recall, prepaid contracts are never done with OEMs. They're done with a small group of customers, predominantly in Japan and Korea, and they're also done on programs that are in production, right?

好吧，如果您還記得的話，預付費合約從來不會與原始設備製造商簽訂。它們是針對一小群客戶（主要是日本和韓國）完成的，而且也是針對正在製作的程序完成的，對吧？

And so they're really used as a cost savings initiative for those tier 1s. And just from a business standpoint, we just think it's the right thing for Cerence to try to continue to minimize the discounts that we have to give associated with those.

因此，它們確實被用作一級的成本節約計劃。僅從商業角度來看，我們認為 Cerence 嘗試繼續盡量減少與這些相關的折扣是正確的。

And as we've talked about, what's happened over the years is that more and more the decision-making process is driven by the OEMs, they may ask us to contract through the tier 1s. But the driver of our business these days is almost exclusively with the OEM.

正如我們所討論的，多年來發生的情況是，決策過程越來越多地由原始設備製造商驅動，他們可能會要求我們透過一級供應商簽訂合約。但目前我們業務的驅動力幾乎完全來自 OEM。

So we think there's minimal risk to continuing to try to limit the amount of those that we did. That being said, it's kind of a weaning off process. So as we said last year, we didn't go to zero. This year we're trying to take it down by half and we'll see how it goes in future years.

因此，我們認為繼續嘗試限制我們所做的事情的數量的風險很小。話雖這麼說，這是一個斷奶的過程。正如我們去年所說，我們沒有達到零。今年我們試圖將其減少一半，我們將看看未來幾年的情況如何。

Got it. My last one is just the delayed SOPs of VW and others. Have you guys quantified what the impact was to fiscal '23 results or the new guidance for '24?

知道了。我的最後一篇只是大眾汽車和其他公司推遲的標準作業程序。你們是否量化過這對 23 財年業績或 24 財年新指引的影響？

No. No, not specifically for each OEM.

不，不，不是專門針對每個 OEM 的。

Is there a way of doing that in aggregate or is it not a substantial number?

有沒有辦法做到這一點，或者說這個數字不是很大？

I think it's just -- there's a whole number of factors against the numbers that we presented last November to the numbers that we presented now. And it's all of the updates associated with the bookings that we achieved in FY23, the new production schedules associated with all of the OEMs, the opportunities that we need to go drive, which from a visibility standpoint we -- relatively small amount of new deals and new -- that we need to achieve these plans.

我認為，與我們去年 11 月提供的數字和現在提供的數字相比，存在著許多因素。這是與我們在 2023 財年實現的預訂相關的所有更新、與所有 OEM 相關的新生產計劃、我們需要推動的機會，從可見性的角度來看，我們——相對少量的新交易新的— —我們需要實現這些計劃。

And then that's why we have committed to update the five-year backlog and the visibility twice a year to provide better insights into how we're going to achieve these numbers going forward.

這就是為什麼我們承諾每年兩次更新五年積壓和可見性，以便更好地了解我們未來將如何實現這些數字。

Thank you. There are no further questions. I'd like to turn the call back over to Richard Yerganian for closing remarks.

謝謝。沒有其他問題了。我想將電話轉回給理查德·耶加尼安 (Richard Yerganian) 作結束語。

Thank you, Michelle, and thank you all for joining us on today's call. Apologizing for going a little bit late, but we had a lot of information to cover. And we hope to see and talk with you soon at various upcoming conferences and meetings, especially at CES. Thank you. Have a good day.

謝謝米歇爾，也謝謝大家參加今天的電話會議。抱歉來晚了一點，但我們有很多資訊要講。我們希望很快能在即將舉行的各種會議上見到您並與您交談，特別是在 CES 上。謝謝。祝你有美好的一天。

Thank you. This does conclude the program and you may now disconnect. Everyone, have a great day.

謝謝。這確實結束了程序，您現在可以斷開連接。大家，祝你有美好的一天。