Cerence Inc (CRNC) 2024 Q1 法說會逐字稿

Good day and thank you for standing by, and welcome to the Cerence first quarter 2024 our earnings conference call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session to ask a question. (Operator Instruction) Please be advised today's conference is being recorded.

美好的一天，感謝您的支持，歡迎參加我們在 Cerence 2024 年第一季的收益電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將進行問答環節。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to turn the conference over to your speaker, Rich Yerganian, Senior Vice President of Investor Relations. Please go ahead.

現在我想將會議交給您的發言人、投資者關係高級副總裁 Rich Yerganian。請繼續。

Thank you, Michelle, and welcome to Cerence first quarter of fiscal year 2024 conference call. Before we begin, I would like to remind you that this call may involve certain forward-looking statements. 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.

謝謝 Michelle，歡迎參加 Cerence 2024 財年第一季電話會議。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。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。

Service makes no representations to update update those statements after today. These statements are subject to the 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 in our Form 10-K filed on November 29, 2023.

服務部門不表示在今天之後更新這些聲明。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 11 月提交的 10-K 表格中今天電話會議之前發布的 8-K 表格和新聞稿2023年29 日。

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 both measures. And reconciliations of non-GAAP measures to the closest GAAP equivalent in the press release is available in the our IR section of our website.

此外，公司可能會在本次電話會議期間參考某些非公認會計準則衡量標準、關鍵績效指標和備考財務信息，請參閱今天的新聞稿，了解這兩項衡量標準的定義、限制和用途的更多詳細資料。我們網站的 IR 部分提供了非 GAAP 指標與新聞稿中最接近的 GAAP 同等指標的調整表。

Joining me on today's call are Stefan Ortmanns, CEO of Cerence, and Tom Beaudoin, CFO, Cerence . As a reminder, the only authorized spokespeople for the company are Stefan, Tom and me. Before handing the call over to Stefan, I would like to mention that we will be presenting at the [Baird] 2024 for vehicle technology and Mobility Conference on February 29th annual change points of Annual Institutional Investors Conference and Morgan Stanley Technology Conference on March 4.

參加今天電話會議的有 Cerence 執行長 Stefan Ortmanns 和 Cerence 財務長 Tom Beaudoin。提醒一下，公司唯一授權的發言人是 Stefan、Tom 和我。在將電話轉交給Stefan 之前，我想提一下，我們將在2 月29 日舉行的[Baird] 2024 年汽車技術和移動會議上進行演講，年度機構投資者會議和3 月4 日舉行的摩根士丹利技術會議的年度變化點。

Now on to the call, Stefan.

現在開始通話，斯特凡。

Thank you, Rich. And welcome, everyone, and thank you for joining us to discuss Cerence's first quarter results over the next few minutes. I will update you on the highlights from our first quarter and provide an update on our AI product strategy and the exciting interest we are seeing from OEM's partners and press (inaudible), but first, a review of our Q1 highlights.

謝謝你，里奇。歡迎大家，並感謝您在接下來的幾分鐘內加入我們討論 Cerence 第一季的業績。我將向您介紹我們第一季的亮點，並提供有關我們人工智慧產品策略的最新信息，以及我們從OEM 合作夥伴和媒體（聽不清）那裡看到的令人興奮的興趣，但首先，回顧一下我們第一季的亮點。

As we have briefed you on previous calls, the R&D and product teams at Cerence has been working at full speed, integrating the latest developments in generative AI and large language models into our automotive and adjacent transportation focus solution.

正如我們在先前的電話會議中向您介紹的那樣，Cerence 的研發和產品團隊一直在全速工作，將生成式人工智慧和大型語言模型的最新發展整合到我們的汽車和鄰近交通重點解決方案中。

We believe our enhanced products and future roadmap represent an industry-leading inflection point for the in-cabin experience for drivers and passengers. Not only are existing customers showing interest in deploying our new solutions as quickly as possible, but we have also seen interest in deploying our new innovations from OEMs that had previously chosen alternative solutions.

我們相信，我們增強的產品和未來的路線圖代表了駕駛員和乘客的車內體驗的行業領先的轉折點。不僅現有客戶對盡快部署我們的新解決方案表現出興趣，而且我們也看到先前選擇替代解決方案的原始設備製造商對部署我們的新創新感興趣。

Discussions with these OEMs and customers gained momentum during Q1 and post CES., resulting in a greater pipeline of business opportunities as we progress through the fiscal year. Notably, we made steady progress during the quarter in aligning our product strategy with key partners. We announced major engagements with NVIDIA and Microsoft leading up to CS. The hardware and tool chains available to us through these partnerships are important contributors to fulfilling our vision of creating the ultimate AI based immersive in-cabin experience.

在第一季和 CES 之後，與這些 OEM 廠商和客戶的討論勢頭強勁，隨著本財年的進展，我們將獲得更多的商機。值得注意的是，本季我們在與主要合作夥伴協調產品策略方面取得了穩步進展。我們宣布與 NVIDIA 和 Microsoft 就 CS 進行重大合作。透過這些合作夥伴關係為我們提供的硬體和工具鍊是實現我們創造基於人工智慧的終極沉浸式車內體驗的願景的重要貢獻者。

In December, we introduced certain automotive, large language model called CaLLM. Content and automotive, specific large language models leveraging and BDS computing and hardware capabilities for the training of generic and OEM specific models. Since he's working with NVIDIA to solve several key challenges, including shortening time to deployment by moving it to AI innovation speed.

12 月，我們推出了某種名為 CaLLM 的汽車大型語言模型。內容和汽車、特定大語言模型利用 BDS 運算和硬體功能來訓練通用和 OEM 特定模型。由於他正在與 NVIDIA 合作解決幾個關鍵挑戰，包括透過提高 AI 創新速度來縮短部署時間。

Collaboration with Microsoft, focusing on the evolving in-cabin user experience and the future of connected mobility. We are combining our deep expertise and comprehensive, AI-powered in-car assistant portfolio with the innovative technology and intelligence of Microsoft Azure OpenEye services.

與微軟合作，專注於不斷發展的車內用戶體驗和互聯移動的未來。我們將深厚的專業知識和全面的人工智慧車載助理產品組合與 Microsoft Azure OpenEye 服務的創新技術和智慧相結合。

As a first step to focus is on delivering accurated automotive-grade in-cabin experience. That leverages ChatGPT. And as you're opening, AI services, this enables OEMs to swiftly implement next-generation experiences into new car programs as well as free to actively upgrade cars on the road. This extends customer value through access to more frequent feature updates, hence creating new revenue opportunities for OEMs.

第一步重點是提供準確的汽車級車內體驗。這利用了 ChatGPT。隨著人工智慧服務的開放，原始設備製造商能夠迅速將下一代體驗應用到新車計畫中，並免費主動升級路上的汽車。這透過更頻繁的功能更新來擴展客戶價值，從而為 OEM 創造新的收入機會。

Customer highlights during the quarter included several key developments. A major North American OEM extended an existing program with Cerence as the competitor solution they had previously chosen has experienced significant delays. A Japanese OEM that has chosen a competitor's solution prior to our spin from Nuance return to Cerence for some of our key enabling technologies. This is an important first step with the OEM, and we believe it opens the door for expanded opportunities moving forward.

本季度的客戶亮點包括幾項關鍵進展。一家大型北美 OEM 擴展了與 Cerence 的現有計劃，因為他們先前選擇的競爭對手解決方案經歷了嚴重的延遲。一家日本 OEM 在我們從 Nuance 分拆到 Cerence 之前選擇了競爭對手的解決方案，以獲取我們的一些關鍵支援技術。這是 OEM 邁出的重要的第一步，我們相信這為未來擴大機會打開了大門。

We have previously mentioned our success in China with OEMs who have chosen our AI technology and brought leverage language portfolio for expansion of their global footprint. We are five major platform programs went live with new Chinese OEMs in Q1. This trend continued with several more carmakers selecting Cerence to support the overseas program and is expected to drive new opportunities in the Chinese domestic markets.

我們之前提到我們在中國與 OEM 的成功，他們選擇了我們的人工智慧技術並帶來了槓桿語言組合來擴大他們的全球足跡。我們有五個主要平台項目在第一季與新的中國原始設備製造商一起上線。隨著越來越多的汽車製造商選擇 Cerence 來支持海外項目，這一趨勢仍在繼續，預計將在中國國內市場帶來新的機會。

We also had a key AIoT design win with a North American company for Roberts as we continue to leverage our scalable technology stack beyond transportation.

隨著我們繼續利用運輸以外的可擴展技術堆疊，Roberts 也贏得了一家北美公司的關鍵 AIoT 設計勝利。

And finally, for the sixth quarter in a row, we have delivered our quarterly results. As guided, our penetration in global auto production remained at 54%, and we had several new platform programs achieved start of production that we expect to ramp as we progress through the fiscal year, we had several one-time adjustments in the quarter, including the previously mentioned revenue acceleration of the Toyota legacy contract.

最後，我們連續第六個季度公佈了季度業績。按照指導，我們在全球汽車生產中的滲透率保持在54%，並且我們有幾個新平台項目已開始生產，我們預計隨著本財年的進展，這些項目將逐步增加，我們在本季度進行了幾次一次性調整，包括前面提到的豐田遺留合約的收入加速。

Which Tom will explain in further detail. Even Taking these adjustments into account, we would have delivered another strong quarter of financial performance. Much noise and hype has been made about the possibilities that generative AI and large language models will unlock across industries. Cerence is one of the few companies to swiftly and intelligently incorporate these innovative and advanced technologies into our products, adding significant value to our OEMs and end users.

Tom 將對此進行更詳細的解釋。即使考慮到這些調整，我們仍將實現另一個強勁的季度財務表現。關於生成式人工智慧和大型語言模型將在各個行業中釋放的可能性，人們已經進行了大量的討論和炒作。Cerence 是少數能夠快速、聰明地將這些創新和先進技術融入我們產品的公司之一，為我們的 OEM 和最終用戶增加了巨大的價值。

As previously discussed, we have enhanced our product portfolio with generative AI and natural language models. Our advanced solutions address several key challenges regarding accuracy, speed and cost, while at the same time allowing OEMs to control and customize the solution to their unique brand and digital cockpit experience.

如前所述，我們透過產生人工智慧和自然語言模型增強了我們的產品組合。我們的先進解決方案解決了準確性、速度和成本方面的幾個關鍵挑戰，同時允許原始設備製造商根據其獨特的品牌和數位駕駛艙體驗控制和客製化解決方案。

You can see from the chart on this slide, the number of programs in pre-development, meaning a prerequisite for a design win and ultimately for start of production, since see as the pipeline of opportunities has grown even larger.

您可以從這張投影片的圖表中看到，預先開發的程式數量，這意味著設計獲勝並最終開始生產的先決條件，因為機會的管道變得越來越大。

Second, concurrent with our integration of large language models, into existing products. We are developing a new platform that is expected to fully take advantage of the promise generative AI and large language models can provide.

其次，與我們將大型語言模型整合到現有產品中同時進行。我們正在開發一個新平台，預計將充分利用生成式人工智慧和大型語言模型所能提供的優勢。

This is based on our fine tune growing automotive dataset and comparison billions of tokens of data collected over the 20 plus years. We have been serving the industry. At CES we selectively demonstrated this product to key OEMs. And I think I can say that uniformly we at ams and tech partners were very impressed for competitive and confidentiality reasons. We are keeping the details of this product close to the West, but we'll share more details with you in the coming months.

這是基於我們對不斷增長的汽車數據集進行微調並比較了 20 多年來收集的數十億個數據。我們一直在為這個行業服務。在 CES 上，我們有選擇地向主要 OEM 廠商展示了該產品。我想我可以說，出於競爭和保密的原因，我們艾邁斯半導體和技術合作夥伴都給我們留下了深刻的印象。我們將密切關注該產品的細節，但我們將在未來幾個月內與您分享更多細節。

Overall, I'm very excited about the progress and accomplishments. Now for those of you that were not able to visit our booth at CES, we thought we would share a short video clip that gives you a sense for the energy team spirit and momentum we built during our week in Las Vegas.

總的來說，我對所取得的進展和成就感到非常興奮。現在，對於那些無法在 CES 上參觀我們展位的人，我們想分享一段簡短的視頻剪輯，讓您了解我們在拉斯維加斯一周期間所建立的能源團隊精神和動力。

Let's run the video. (video playing)

讓我們運行視頻。（影片播放）

As you all may know, CES has become the most important tradeshow for the latest in transportation and mobility. We were very pleased when Volkswagen approached us about kicking the show of the joint press conference announcing our partnership to enhance Volkswagen's in-car experience with Cerence AI capabilities. The press conference hosted over 300 journalists and was a fantastic way to kick off the week.

眾所周知，CES 已成為展示最新交通和行動領域最重要的貿易展。當大眾汽車與我們接洽，希望舉辦聯合新聞發布會，宣布我們合作透過 Cerence AI 功能增強大眾汽車的車內體驗時，我們感到非常高興。這場記者會招待了超過 300 名記者，是本週拉開序幕的絕佳方式。

Together, we have created an amazing user experience by enhancing Volkswagen's in-car assistant called IDA with Cerence chat Pro, bringing the best of both worlds together for execution from concept to product was done in less than 3 months. We showcased the IDA assistant at CES. In the ID.7 and Golf, and we expect the roll out of the upgraded assistant across Volkswagen and Skoda model starting mid-calendar year 2024. And already full schedule of customer demos became even more crowded as word spreads about our product labels.

我們共同透過Cerence chat Pro 增強了名為IDA 的大眾汽車車載助手，創造了令人驚嘆的用戶體驗，將兩全其美的優點結合在一起，從概念到產品的執行在不到3 個月的時間內完成。我們在 CES 上展示了 IDA 助手。在 ID.7 和高爾夫中，我們預計從 2024 年中期開始，在大眾和斯柯達車型上推出升級版助手。隨著我們產品標籤的傳播，本來已經排滿日程的客戶演示變得更加擁擠。

This included several representatives from multiple OEMs that had worked with a big consumer tech company after the demos, every one of these OEMs as to reengaged in discussions with us about their next-generation solutions.

其中包括來自多個原始設備製造商的幾位代表，這些原始設備製造商在演示後曾與一家大型消費科技公司合作，這些原始設備製造商中的每一個都重新與我們討論他們的下一代解決方案。

These discussions are ongoing and we believe provides realistic opportunities for additional win-backs. It wasn't just OEMs that were impressed with our demonstrations at CES, we had over 400 references in the press, including 15 mentions as one of the best product of the show. Additionally, several influential journalists and bloggers produce videos shown the new Cerence power capabilities in action and the ID.7, while providing very positive commentary.

這些討論正在進行中，我們相信為額外贏回提供了現實的機會。不僅是 OEM 廠商對我們在 CES 上的展示印象深刻，我們還在媒體上獲得了 400 多個參考資料，其中 15 次被提及為展會上的最佳產品之一。此外，幾位有影響力的記者和部落客製作了視頻，展示了新的 Cerence 動力功能的實際應用和 ID.7，同時提供了非常積極的評論。

CES was a great opportunity for Cerence to showcase our AI product strategy and reinforce our belief that we are on the right track and that we remain in a leadership position for applying the promise of AI for the transportation industry.

CES 是 Cerence 展示我們的人工智慧產品策略的絕佳機會，並堅定了我們的信念：我們正走在正確的道路上，並且我們在將人工智慧應用於交通運輸行業的承諾方面保持領先地位。

As we look to Q2 and beyond, we have a number of priorities. We are keenly focused on. First and foremost, is to capitalize on the positive momentum generated from CES. Our objective is to secure new business with existing customers and aggressively target the potential win-back opportunities.

展望第二季度及以後，我們有許多優先事項。我們密切關注。首先也是最重要的是利用 CES 產生的正面動能。我們的目標是確保與現有客戶建立新業務，並積極瞄準潛在的贏回機會。

Second we need to continue to hit our delivery targets for both existing and new projects, especially one that are cloud-based and provide us the opportunity to generate revenue in a shorter period of time, however, fully and controlled the final time line of the start of production for our software updates. And finally, execute on services, next-gen computing platform, facilitating a truly immersive in-cabin experience.

其次，我們需要繼續實現現有項目和新項目的交付目標，特別是基於雲端的項目，它為我們提供了在更短的時間內產生收入的機會，但完全控制了項目的最終時間線。生產我們的軟體更新。最後，在服務、下一代運算平台上執行，促進真正身臨其境的車內體驗。

Now I will turn it over to Tony to share our financial results. Tom?

現在我將把它交給托尼來分享我們的財務表現。湯姆？

Thank you, Stefan. Let me first discuss our Q1 FY24 results, followed by our guidance for Q2 FY24, our Q1 results included several one-time events. One was the acceleration of the revenue associated with the legacy contract that we had previously communicated. We came in above our revenue target, primarily due to the net effect of two additional one-time events.

謝謝你，斯特凡。讓我先討論我們 2024 財年第一季的業績，然後是我們對 2024 財年第二季的指導，我們第一季的業績包括幾項一次性事件。一是我們之前溝通過的遺留合約相關收入的加速成長。我們超出了收入目標，這主要是由於另外兩個一次性事件的淨影響。

Another was with a customer whose contract with Cerence provided additional services to the Toyota legacy solution this customer notified us of the decommissioning of their service in Q1, resulting in acceleration of the deferred revenue associated with their service in Q1 in the amount of approximately $9.9 million.

另一位客戶與Cerence 簽訂的合約為豐田遺留解決方案提供了額外的服務，該客戶通知我們在第一季度停止使用他們的服務，導致第一季度與其服務相關的遞延收入加速增長，金額約為990 萬美元。

Additionally, a separate customer notified us in Q1. They determine they had been only reporting royalties for a period of time. This resulted in a negative onetime true up of $4.8 million to our license revenue. As we have reported in the past and as recently as Q4 of last fiscal year, we do get notifications from customers when they realize they have either been under or over reporting royalties to us.

此外，一位單獨的客戶在第一季通知了我們。他們確定他們只報告了一段時間的版稅。這導致我們的授權收入一次性地真實增加了 480 萬美元。正如我們過去以及上一財年第四季所報導的那樣，當客戶意識到他們向我們報告的特許權使用費要么少了要么多了時，我們確實會收到通知。

While the updates we usually get our positive true up in this particular case, the customer determine they had been over reporting about royalties and therefore, we took a reserve as part of our Q1 results. Q1 revenue came in at $138.3 million, approximately $6 million above the high end of our guidance, primarily due to the factors mentioned above.

雖然在這種特殊情況下，我們通常會得到積極的更新，但客戶認為他們已經過多地報告了特許權使用費，因此，我們將儲備金作為第一季業績的一部分。第一季收入為 1.383 億美元，比我們指導的上限高出約 600 萬美元，這主要是由於上述因素。

Adjusting for the items I noted earlier, our Q1 revenue still would have delivered a solid financial performance. Revenue for Q1 included no prepay contracts As communicated during our Q4 conference call. The results in the quarter were driven by our core transportation business as revenue came in above the high end of our guidance range.

調整我之前提到的項目後，我們第一季的收入仍然會帶來穩健的財務表現。正如我們在第四季度電話會議上所傳達的那樣，第一季的收入不包括預付款合約。本季的業績是由我們的核心運輸業務推動的，因為收入高於我們指導範圍的高端。

Combined with our focus on operational excellence, we exceeded most financial metrics. GAAP gross margin was 81%. GAAP net income was $23.9 million and GAAP income per share was $0.53. non-GAAP gross margin was 81.5%. non-GAAP operating margin was 49.4%.

結合我們對卓越營運的關注，我們超越了大多數財務指標。GAAP 毛利率為 81%。GAAP 淨利為 2,390 萬美元，GAAP 每股收益為 0.53 美元。非 GAAP 毛利率為 81.5%。非 GAAP 營業利益率為 49.4%。

Adjusted EBITDA was $70.4 million or 58.9% margin and non-GAAP income per share was $1.12. During the quarter, we had negative cash flow of about $2.8 million. This was mainly due to the timing of customer payments we expect to receive in Q2.

調整後 EBITDA 為 7,040 萬美元，利潤率為 58.9%，非 GAAP 每股收益為 1.12 美元。本季度，我們的負現金流約為 280 萬美元。這主要是由於我們預計在第二季收到客戶付款的時間。

We expect positive cash flow for the full fiscal year. Our balance sheet remains strong with total cash and marketable securities of approximately $116 million. This chart is our breakdown of revenue for the quarter. Core revenue drivers remained solid. Q1 license revenue includes the onetime negative true up mentioned a few minutes ago.

我們預計整個財年的現金流為正。我們的資產負債表依然強勁，現金和有價證券總額約為 1.16 億美元。該圖表是我們本季的收入細節。核心收入驅動因素依然穩固。第一季的授權收入包括幾分鐘前提到的一次性負成長。

This was a negative impact of approximately $4.8 million. Also when comparing quarter over quarter. Our performance in Q4 included a positive true-up of about $3 million. As expected, we did not execute any fixed prepaid contracts in Q1. Our penetration of global auto production remained at 54% on a trailing 12 month basis as we continue to maintain a strong position in the market.

這帶來了約 480 萬美元的負面影響。此外，在比較季度與季度之間時也是如此。我們第四季的業績包括約 300 萬美元的積極調整。如預期，我們在第一季沒有執行任何固定預付合約。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%。

Connected Services revenue was up slightly from the prior quarter due to an accelerated non-cash revenue associated with the legacy contract and an additional approximately $9.9 million associated with the other contract discussed earlier.

由於與遺留合約相關的非現金收入加速成長以及與先前討論的其他合約相關的額外約 990 萬美元，連接服務收入較上一季略有成長。

Excluding this acceleration of deferred revenue new connected revenue would have been up 5% quarter over quarter and 13% year-over-year. We expect a ramp in new connected services in FY24 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, even as some expiring programs of old technology restrain the near term growth regarding the contract with a second customer who had a portion of their contract with us related to the legacy solutions.

排除遞延收入的加速成長，新的互聯收入將較上季成長 5%，較去年同期成長 13%。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 財年成長。我們繼續看到互聯服務的大量機會，儘管一些即將到期的舊技術計劃限制了與第二個客戶的合約的近期增長，第二個客戶與我們的合約的一部分與遺留解決方案相關。

The revenue associated with that contract has been historically reported as part of new connected revenue line, the customer who reported their overall reporting of royalties, license revenue and the other customer that required acceleration of deferred revenue related to the decommissioning of connected services associated with the Toyota solution will negatively impact our go-forward revenue by approximately $800,000 of license revenue and approximately $400,000 of new connected services revenue per quarter, respectively.

與該合約相關的收入歷來被報告為新的互聯收入線的一部分，報告其特許權使用費、許可證收入總體報告的客戶以及需要加速與與該合約相關的互聯服務退役相關的遞延收入的客戶。

As we have previously stated, professional services will vary quarterly based on progress or completion of customer projects. We did not reprint project professional services as a revenue growth driver for the company, but instead view it as an enabler for future license and connected services revenue.

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每季有所不同。我們沒有將專業服務項目轉載為公司收入成長的驅動力，而是將其視為未來許可和互聯服務收入的推動者。

Additionally, our newer products and solutions include improved implementation and integration features, which lowers the utilization of professional services. Moving on to our license business. Overall, the license business remains fundamentally strong. Pro forma royalties in the quarter were impacted by the negative true-up due to over reported royalties and to a lesser extent, additional program delays or slower than expected volume ramps from several customers.

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，這降低了專業服務的使用率。繼續我們的許可業務。總體而言，許可業務仍然基本強勁。本季度的預估特許權使用費受到了負校正的影響，這是由於特許權使用費報告過高，以及在較小程度上，額外的計劃延遲或幾個客戶的銷量增長慢於預期。

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. Adjusting for onetime items, including the $3 million true-up in Q4 and a one-time volume discount. Pro forma license royalties were relatively flat quarter over quarter. As we planned, we did not execute any fixed contracts in Q1, but do expect a contribution in Q2 of approximately $5 million to our draft fiscal year target of approximately $20 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一部分消耗的許可證的價值。對一次性項目進行調整，包括第四季度 300 萬美元的調整和一次性批量折扣。預計許可證使用費季度將比去年同期相對持平。按照我們的計劃，我們在第一季沒有執行任何固定合同，但預計第二季度將為我們約 2000 萬美元的財政年度草案目標貢獻約 500 萬美元。

We believe that our KPIs continue to indicate strength in the business. As stated earlier, our penetration of global auto production for the trailing 12 months stayed steady at 54% with $12.4 million cars with Cerence technology shipped in the quarter.

我們相信，我們的 KPI 繼續表明我們的業務實力。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%，本季採用 Cerence 技術的汽車出貨量為 1,240 萬美元。

This means over half of global auto production includes some level of embedded Cerence technology. Cars produced that include our connected services in addition to our embedded solutions, increased 36 months trailing 12 months over the prior trailing 12 months, reflecting the trend of cars being increasingly connected and our ability to successfully provide our customers with innovative cloud-based solutions.

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。除了嵌入式解決方案之外，還包括我們的互聯服務的汽車產量比前12 個月增加了36 個月，這反映了汽車日益互聯的趨勢以及我們成功為客戶提供基於雲端的創新解決方案的能力。

Total adjusted billings increased 4% and we believe that this is a leading indicator of our potential future revenue growth related to our growth in cars shipping with our connected services, we once again saw a large increase in monthly active users, 30% year-over-year, which we believe indicates increasing popularity among the end users of our technology.

調整後的總帳單增加了4%，我們相信這是我們未來潛在收入成長的領先指標，這與我們透過連網服務進行汽車運輸的成長有關，我們再次看到每月活躍用戶大幅成長，年成長30 %年，我們認為這表明我們的技術在最終用戶中越來越受歡迎。

As we discussed on last quarter's conference call, we were informed by our legacy connected services customer, Toyota that they were electing to terminate the service offering effective December 31, 2023. Prior to this change, Cerence would have reported revenue associated with this contract of approximately $8.4 million per quarter through Q1 of fiscal 2026, meaning the end of calendar year 2025.

正如我們在上季度的電話會議上討論的那樣，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。在此變更之前，Cerence 報告的與該合約相關的收入截至 2026 財年第一季（即 2025 日曆年年底）每季約為 840 萬美元。

As the service associated with the contract achieved end of life. You may recall there is no cash flow associated with the remaining deferred revenue associated with this contract. The contract came via an acquisition in 2013. While Cerence was part of Nuance, the Cerence deferred revenue represents the amortization of the revenue associated with the contractual service period, which was scheduled to end December 31, 2025 and was accelerated by such determination by Toyota to our Q1 FY24.

隨著與合約相關的服務的生命週期結束。您可能還記得，與此合約相關的剩餘遞延收入沒有關聯的現金流量。該合約是透過 2013 年的一次收購獲得的。雖然Cerence 是Nuance 的一部分，但Cerence 遞延收入代表與合約服務期間相關的收入攤銷，該合約服務期原定於2025 年12 月31 日結束，並因豐田的這一決定而加速到我們2024財年第一季。

Therefore, our revenue for the first quarter includes approximately $73.6 million in revenue associated with this change. The decommissioning by the other customer with a contract in support of the Toyota legacy solution also resulted in an acceleration of approximately $9.9 million of revenue in Q1 because the contract with this other customer was more than just the legacy solution. This revenue has been reported as part of our new connected services revenue. As I mentioned earlier, our new connected services revenue will be lower by approximately 400k per quarter moving forward.

因此，我們第一季的收入包括與此變化相關的約 7,360 萬美元的收入。另一家擁有支援豐田遺留解決方案合約的客戶的退役也導致第一季收入增加約 990 萬美元，因為與另一家客戶的合約不僅僅是遺留解決方案。該收入已作為我們新的互聯服務收入的一部分報告。正如我之前提到的，未來我們每季新的互聯服務收入將減少約 40 萬。

Now turning to revenue guidance for Q2 and the fiscal year. They are guiding our Q2 revenue to be from $60 million to $64 million. We expect Q2 revenue to include approximately $5 million in fixed contracts in Q2. We are in the process of negotiating final contracts with a couple of customers, which may result in our projection for Q2 to vary as we ensure we achieve satisfactory terms, the best estimate we can provide at this time would be to spread the remainder of the approximately $20 million annual amount relatively evenly throughout the balance of this fiscal year with the caveat that actual execution of fixed contracts can vary quarter to quarter.

現在轉向第二季和本財年的收入指引。他們指導我們第二季的收入為 6000 萬美元至 6400 萬美元。我們預計第二季的營收將包括約 500 萬美元的固定合約。我們正在與幾個客戶就最終合約進行談判，這可能會導致我們對第二季度的預測發生變化，因為我們確保實現滿意的條款，我們目前可以提供的最佳估計是分攤剩餘的合約約2000 萬美元的年度金額在本財年的剩餘時間內相對均勻，但需要注意的是，固定合約的實際執行情況可能會因季度而異。

For the full fiscal year, we continue to expect revenue to be between $355 million to $375 million. You can see on this slide the revenue guidance and the effect of the associated financial metrics. As you can see, there were updates to our guidance for the fiscal year.

我們繼續預計整個財年的營收將在 3.55 億美元至 3.75 億美元之間。您可以在此投影片上看到收入指引和相關財務指標的影響。如您所見，我們對本財年的指導進行了更新。

Regarding our GAAP operating margin, net income, net income margin and EPS and non-GAAP net income, the adjustments to our GAAP operating margin and net income due to restructuring charges and an asset indemnification release. non-GAAP net income improved due to a four favorable foreign exchange gain in Q1.

關於我們的 GAAP 營業利潤率、淨利潤、淨利潤率以及每股收益和非 GAAP 淨利潤，由於重組費用和資產賠償釋放而對我們的 GAAP 營業利潤率和淨利潤進行的調整。由於第一季四項有利的外匯收益，非公認會計準則淨利潤有所改善。

In summary, CES was a resounding success for the Company with significant interest in our new products and technology from existing and potential customers alike. The goal now is to advance these discussions into new business and ultimately driving revenue growth for the Company. While in the near term, we remain focused on operational excellence. As a reminder, we expect to update our year backlog in conjunction with our Q2 earnings release.

總而言之，CES 對公司來說是一次巨大的成功，現有和潛在客戶對我們的新產品和技術表現出了濃厚的興趣。現在的目標是將這些討論推進到新業務中，並最終推動公司的收入成長。在短期內，我們仍然專注於卓越營運。提醒一下，我們預計在第二季財報發佈時更新我們的年度積壓工作。

This concludes our prepared remarks, and now we will open 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。

Thank you. (Operator Instruction)

謝謝。（操作員說明）

Jeff Van Rhee, Craig-Hallum Capital Group.

Jeff Van Rhee，克雷格-哈勒姆資本集團。

Great. Thank you for taking the questions. A couple just on maybe start with the customer that left with Toyota that was apparently in new connected a and just maybe a little more color, was that a surprise given they were correlated to Toyota was the revision that somehow they were going to stay excluding Toyota? And then just again a little more color on what exactly they were doing?

偉大的。感謝您提出問題。一對夫婦可能會從離開豐田的客戶開始，他們顯然是新連接的，而且可能有點更多的顏色，考慮到他們與豐田相關，令人驚訝的是他們將以某種方式保留排除豐田的修訂？然後再對他們到底在做什麼做更多的描述？

Jeff, thank you. So they had a separate contract, so they were kind of a Tier 2 to that overall solution. I don't think we truly expected them to also cancel that I mean, we certainly had to wait for them to understand what their relationship was and what their activities and contractual obligations were with Toyota. So they actually notified us a little bit after we got the notification from Toyota on our legacy contract. And that's a little bit why we didn't include it in Q4 because we hadn't been informed at that time.

傑夫，謝謝你。所以他們有一份單獨的合同，所以他們是整體解決方案的第二層。我認為我們並不真正期望他們也取消，我的意思是，我們當然必須等待他們了解他們的關係以及他們與豐田的活動和合約義務。因此，在我們收到豐田關於我們的遺留合約的通知後，他們實際上通知了我們一點。這就是我們沒有將其納入第四季度的原因，因為當時我們沒有得到通知。

And so was the explanation that they were leaving because they simply had to because that partner was going away or because they were changing product direction and you're no longer a fit. What was the logic to leave if it wasn't a foregone conclusion that they had

他們離開的解釋也是如此，因為他們不得不離開，因為那個合作夥伴要離開，或者因為他們正在改變產品方向，而你不再適合。如果他們不是已成定局，離開的邏輯是什麼？

Pretty much the same logic with that two and a legacy they got and funds by Toyota. We don't know exactly what their contractual arrangement was with Toyota, but they are also told that Toyota was ending that service and therefore they came back to us and informed us that they were also canceling the service associated with that.

與這兩個人幾乎相同的邏輯以及他們獲得的遺產和豐田的資助。我們不確切知道他們與豐田的合約安排是什麼，但他們也被告知豐田將終止該服務，因此他們回到我們身邊並通知我們他們也取消了與此相關的服務。

And maybe as a reminder, Jeff, good morning, Jeff and the Toyota legacy, a program started or in 2011 right. So it's a very old old fashion program compared to nowadays solutions, especially when looking at CES., right? And they have been informed accruing programs and came back to us here. Nevertheless, we have an excellent relationship with Toyota and we are focusing on new programs, for example, model year '24 and upcoming programs. And they have invited also us to discuss new opportunities beyond model year '24.

也許是為了提醒一下，傑夫，早安，傑夫和豐田的遺產，一個計畫開始於 2011 年吧。因此，與當今的解決方案相比，這是一個非常古老的時尚程序，尤其是在 CES 上，對嗎？他們已獲悉累積計劃並回到我們這裡。儘管如此，我們與豐田有著良好的關係，我們正在專注於新項目，例如 '24 車型年和即將推出的項目。他們還邀請我們討論 24 年車型之後的新機會。

Okay, helpful. Then if I could just sneak two other quick ones in the you referenced on time. I think in the in the script that you had headwinds remaining from some other old contracts and connected. Can you just put some bounds around how much of a revenue headwind that is on an annual basis?

好的，有幫助。然後，如果我能及時在您提到的內容中偷偷溜走另外兩個快速的。我認為在劇本中，你還面臨一些其他舊合約帶來的阻力並與之相關。您能否對每年的收入逆風有多少進行一些限制？

And we haven't split out the exact amount there because know some of the programs and sometimes there is a ramp delay. So I think there are some other indicators on you know the positive momentum we're seeing in connected services. And I think we'll start to see that growth in the next couple of quarters in 2024. And again, there are pieces of it is some delayed some production fashion ramps by some of the OEMs.

我們還沒有透露確切的金額，因為我們知道一些程序，有時會有斜坡延遲。因此，我認為還有一些其他指標表明我們在互聯服務中看到了積極的勢頭。我認為我們將在 2024 年接下來的幾個季度開始看到這種成長。再說一次，有些原始設備製造商推遲了一些生產時尚的進度。

Yeah. Okay. And then just maybe last one on the very high level question here, but I guess if you look at the overall landscape, how do you as a company best gauge the satisfaction of the end users that are using your technology versus the alternatives? And obviously, you quoted 54%. So your share in the in-car systems is steady, but folks can use Apple CarPlay, Android Auto there, a lot of avenues that they have to consume or interact with the vehicle while they're in the vehicle.

是的。好的。然後也許是這裡非常高層次的問題的最後一個，但我想如果你看看整體情況，作為一家公司，你如何最好地衡量使用你的技術與替代方案的最終用戶的滿意度？顯然，你引用的是 54%。因此，你在車載系統中的份額是穩定的，但人們可以使用 Apple CarPlay、Android Auto，他們在車內時必須透過多種方式使用車輛或與車輛互動。

So two questions. Just how are you gauging a user satisfaction of your solution versus the other solutions? And then any commentary about market share within actually what's getting used in the car because I think some of those and Apple CarPlay and Android Auto might not be measured in that 54% Thanks.

那麼兩個問題。您如何衡量您的解決方案與其他解決方案的使用者滿意度？然後，任何有關汽車實際使用的市場份額的評論，因為我認為其中一些以及 Apple CarPlay 和 Android Auto 可能無法用 54% 來衡量，謝謝。

So so maybe just in our view, in my view, equity, the three key pillars. First of all, we have a very diversified, strong customer base with strong engagement that was crystal clear at CES and also post CES., right? And we're getting on some valuable feedback from lead OEMs across the globe.

所以也許只是在我們看來，在我看來，公平是三個關鍵支柱。首先，我們擁有非常多元化、強大的客戶群，並且在 CES 上和 CES 後都表現出強烈的參與度，對吧？我們正在從全球領先的原始設備製造商那裡獲得一些寶貴的回饋。

And secondly, I think also with the opportunity for market and we and relevant brand customization. We have some huge advantages over the big tech giants, right? Because all OEMs understand now, but they need to drive the immersive in-cabin experience, the digital cockpit experience, right? And they are heavily engaged also with their user is their users, right and sharing this information with us.

其次，我認為還有市場和我們以及相關品牌客製化的機會。與大型科技巨頭相比，我們有一些巨大的優勢，對嗎？因為所有原始設備製造商現在都明白，但他們需要推動沉浸式車內體驗、數位駕駛艙體驗，對嗎？他們也與他們的用戶密切互動，並與我們分享這些資訊。

But equally or even more important is I mean, you know, at our last Investor Day, we said, okay, we are moving ourselves from a component supplier technology supplier to a full solution innovation partner and really I can say we have achieved this important goal for the company, right? So we are providing actually now a leading innovation computing platform.

但同樣甚至更重要的是，我的意思是，你知道，在我們最後的投資者日，我們說，好吧，我們正在從組件供應商技術供應商轉變為完整的解決方案創新合作夥伴，我真的可以說我們已經實現了這重要目標公司的目標對嗎？所以我們現在實際上提供了一個領先的創新運算平台。

Now providing really a compelling incoming experience with yes, you can see commercialized hybrid launch language, one of the architecture award, and that was one of the best products at CES and the demand from other OEMs. It's just amazing and terrific, right. And with this user penetration rate of 54%, while we have no huge opportunities and upselling those solutions in the short term, but also in the mid or long term, bringing in our new hybrid natural language, monogenetic AI solution.

現在提供真正引人注目的傳入體驗，是的，您可以看到商業化的混合發布語言，這是架構獎之一，這是 CES 上最好的產品之一，也是其他 OEM 的需求。這真是太棒了，對吧。憑藉 54% 的用戶滲透率，雖然​​我們在短期內沒有巨大的機會並追加銷售這些解決方案，但從中長期來看，我們還可以引入我們新的混合自然語言、單基因人工智慧解決方案。

And therefore, we are partnering also with video for extra or accelerating the roll out. I mean, languages is still a key topic, right. We are a global player compared to others in the market here, right? And our promise to the market is that we have by end of this calendar year, 20 languages supported hybrid. That means embedded and cloud-based. So overall, I think we are on a very, very good track.

因此，我們也與視訊合作以額外或加速推出。我的意思是，語言仍然是一個關鍵話題，對吧。與市場上的其他公司相比，我們是全球參與者，對吧？我們向市場承諾，到今年年底，我們將支援 20 種混合語言。這意味著嵌入式和基於雲端的。總的來說，我認為我們正走在非常非常好的軌道上。

Okay, great. Thank you.

好的，太好了。謝謝。

Quinn Bolton, Needham & Company.

奎因·博爾頓，李約瑟公司。

It is Nick on for Colin. On your adjusted it total billings growth decelerated slightly from 6% last quarter to 4% this quarter. Can you expand on that data point that sounds like it might be impacted by the additional program delays that you're talking about. And then maybe you can touch on the key reason there's things you seeing these delays, how the OEMs are thinking about SOPs this year, outlaw auto production and auto sales remain relatively strong lately?

尼克替補科林。調整後的總帳單成長略有放緩，從上季的 6% 降至本季的 4%。您能否擴展該數據點，聽起來它可能會受到您所討論的額外程式延遲的影響。然後也許您可以談談您看到這些延誤的關鍵原因，原始設備製造商如何考慮今年的標準操作程序，非法汽車生產和汽車銷售最近仍然相對強勁？

Yes, Glenn, I'll take the first part and then maybe Stefan can talk about the second piece. I mean, again, we saw our growth in billings. I think we'll see accelerated growth in billings over the next few quarters. I think it's just the lower little bit of a timing and seasonality in that billings number and looking at it delayed SOPs, a twin here also here also some positive messages.

是的，格倫，我會講第一部分，然後斯特凡也許可以談談第二部分。我的意思是，我們再次看到了帳單的增長。我認為我們將在接下來的幾個季度看到帳單的加速成長。我認為這只是帳單數字中的時間和季節性的較低一點，並觀察它延遲的標準操作程序，這裡的雙胞胎也在這裡也有一些積極的信息。

I just been informed that one of the program which hadn't laid for more than two years will go live in calendar week a 12th of this year. That's great because here we see higher PPU. It's a mass volume, OEM., right? And there was also another big OEM who had also some delays of nine months, and they will also go live within the next two months, which is really great for us.

我剛剛獲悉，其中一個已經兩年多沒有上線的項目將於今年 12 號日曆週上線。這很好，因為我們在這裡看到了更高的 PPU。這是一個大批量的 OEM，對嗎？還有另一家大型 OEM 也延遲了九個月，他們也將在接下來的兩個月內上線，這對我們來說真的很棒。

And then I said we have this diversified customer platform. You have also heard about [BYD]. They're becoming a more important for the European market. And as you know, we are their preferred partner here when it comes to the and corporate experience, leveraging conversational AI.

然後我說我們有這個多元化的客戶平台。您還聽說過[比亞迪]。它們對歐洲市場變得越來越重要。如您所知，在利用對話式人工智慧的企業體驗方面，我們是他們的首選合作夥伴。

So we are on a good track, but we have still some dependencies on the OEMs. And as you also said earlier, right, the OEM, defines start of production, and they will also let us know when they are doing this kind of software updates over the year.

所以我們的發展勢頭良好，但我們仍然對原始設備製造商有一些依賴。正如您之前所說，OEM 定義了生產開始，他們也會讓我們知道他們在一年中何時進行此類軟體更新。

Okay, thank you. And then what part of your technology stack drove the AIoT win? And I guess why wasn't this piece eliminated by FOU and can you talk about the size or the timing of the win you had? I think you had about a $5 million win with big tech company in fiscal one quarter, 2022. It's bigger than that?

好的，謝謝。那麼你們的科技堆疊的哪一部分推動了 AIoT 的勝利？我想為什麼這件作品沒有被 FOU 淘汰？我認為您在 2022 年第一季與大型科技公司贏得了大約 500 萬美元的訂單。比那個還大嗎？

So over the last couple of months, we have made great progress also in the non-transportation space. What we have we have in Q1 for product launches now one in Korea for home, one in China and two in North America with well-known companies, industrial sphere, right? And we had also another big design win in North America for wearables, and we are still under the MOU. So we are selling technologies which are applicable, for example, audio AI embedded solutions and text to speech.

因此，在過去的幾個月裡，我們在非交通領域也取得了巨大進展。我們在第一季推出的產品現在有一個在韓國國內，一個在中國，兩個在北美，與知名公司、工業領域合作，對嗎？我們還在北美的可穿戴設備領域贏得了另一場重大設計勝利，而且我們仍在簽署諒解備忘錄。因此，我們正在銷售適用的技術，例如音訊人工智慧嵌入式解決方案和文字轉語音。

Yes. So just a little bit on that. I mean, we've said all along that there were certain elements that we were able to advance prior to the expiration of the FOU. Those were clearly defined in the contract with new ops now Microsoft, and that's what we in the short term. That's what we've been pursuing. And then as of October, there will be no restriction.

是的。所以只是簡單介紹一下。我的意思是，我們一直說過，在 FOU 到期之前，我們能夠推進某些內容。這些在與微軟現在的新營運商的合約中得到了明確的定義，這就是我們的短期目標。這就是我們一直追求的。然後從十月開始就沒有限制了。

And our focus clearly is on industrial IoT, variables also health well-being. And we are also in discussion with big companies, especially in North America and smart home and office.

我們的重點顯然是工業物聯網、變數以及健康福祉。我們也在與大公司進行討論，特別是在北美和智慧家庭和辦公室領域。

Yes. So some of those we'll have to wait until October software getting ready again.

是的。因此，其中一些我們必須等到 10 月軟體再次準備就緒。

Mark Delaney, Goldman Sachs.

馬克·德萊尼，高盛。

Yes, good morning, everyone. This is Brian on for Mark Delaney, and thank you for taking my question. And can you give us some additional color on OEM feedback to chat Pro, which you feature CES? And how broad-based is that OEM interest? And any color you can give on the PPU opportunity.

是的，大家早安。我是馬克·德萊尼 (Mark Delaney) 的布萊恩 (Brian)，感謝您回答我的問題。您能否為我們提供一些關於 OEM 反饋的額外信息，以聊天 Pro（您在 CES 上展示過該產品）？OEM 的興趣有多廣泛？您可以為 PPU 機會賦予任何顏色。

So good morning again. Yes, it was really amazing feedback from all OEMs from North American OEMs, European OEMs and for OEMs in Korea, Japan and China. I think that's clearly a game changer with Jet Pro, but we are also going beyond chip Pro being not sure whether you have seen also our new Cerence assistant with energy plus you're right so we clearly have changed the dynamic in the market here.

再次早安。是的，來自北美 OEM、歐洲 OEM 以及韓國、日本和中國 OEM 的所有 OEM 的反饋確實令人驚嘆。我認為這顯然是Jet Pro 的遊戲規則改變者，但我們也超越了晶片Pro，不確定您是否也看到了我們新的Cerence 能量助手，加上您是對的，所以我們顯然已經改變了這里市場的動態。

A feedback was amazing. Some of the OEMs totally actually, hey, when can we have had in our car we have various discussions also with our sales force and OEMs. I think they want to have an ace up as soon as possible. Here, really there are huge opportunities and goes far beyond chat Pro.

反饋很棒。一些原始設備製造商完全實際上，嘿，我們什麼時候可以在我們的汽車中使用我們也與我們的銷售人員和原始設備製造商進行了各種討論。我認為他們希望盡快獲得王牌。在這裡，確實存在巨大的機會，而且遠遠超出了聊天專業版的範圍。

And when looking at the PPU., I mean, I cannot share everything here as you can imagine here. But also here, we hope that can also drive our future revenue. And as you also mentioned earlier, right, we are going to address also cars on the road. And what we can share is I mean, you saw also the press announcements from both VW and Skoda. They're trying to bring in also on cash on their own, which will also drive revenue on our side. Thanks

在查看 PPU 時，我的意思是，我無法像您在這裡想像的那樣分享所有內容。但同樣在這裡，我們希望這也能推動我們未來的收入。正如您之前提到的，我們還將解決道路上的汽車問題。我們可以分享的是，我的意思是，您還看到了大眾和斯柯達的新聞公告。他們也試圖自己帶來現金，這也將增加我們這邊的收入。謝謝

Thanks. Thank you for that. And then if I can sneak in one more question. So with the added company focus on G&A, I what does that mean for the company's OpEx for the business and any additional color you can give there on kind of the gross margin opportunity for some of these new G&A opportunities or applications you all are working on?

謝謝。謝謝你。然後我可以再問一個問題嗎？因此，隨著公司對 G&A 的關注增加，這對公司的業務運營支出意味著什麼，以及您可以為您正在開發的一些新的 G&A 機會或應用程式提供的任何額外的顏色，即毛利率機會。 ？

You know, we are very sensitive to co-CEO, right? So there are actually no incremental OpEx required. And your effort also about our partnership with ENVIDA, this is also part of our story here very important partner to us.

你知道，我們對聯合執行長非常敏感，對吧？因此實際上不需要增量營運支出。你們的努力也體現在我們與 ENVIDA 的合作關係上，這也是我們故事的一部分，對我們來說是非常重要的合作夥伴。

Yes. And we expect gross margin, as mentioned by Tom here, right? So overall, we are very sensitive to cost here, right? And with our partnership engagements right now, very, very good track. And it is also worth to mention here that we are using a hybrid solution, meaning embedded and cloud. And we are doing also quite a lot on the embedded side edge side, not just for privacy reasons, but also for cost efficiencies.

是的。我們預計毛利率，正如湯姆在這裡提到的，對嗎？總的來說，我們對成本非常敏感，對吧？透過我們現在的合作關係，進展非常非常順利。這裡也值得一提的是，我們正在使用混合解決方案，即嵌入式和雲端。我們在嵌入式側邊緣方面也做了很多工作，不僅是出於隱私原因，也是為了成本效率。

Thank you.

謝謝。

Thank you. And I would now like to turn the conference back over to Rich your gaming for any closing remarks.

謝謝。現在我想把會議轉回給你的遊戲結束語。

Well Thank you due to from the call this morning, and we look forward to seeing you at some of the upcoming conferences or at other times. Have a good day.

好的，謝謝您今天早上的電話，我們期待在即將舉行的一些會議或其他時間見到您。祝你有美好的一天。

Thank you. This concludes today's conference call. Thank you for participating, and you may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。