Cerence Inc (CRNC) 2025 Q1 法說會逐字稿

Welcome to Cerence's first quarter of fiscal year 2025 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, beliefs, outlook, strategy, goals, objectives, targets and plans should be considered to be forward-looking statements.

歡迎參加 Cerence 2025 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。任何非歷史事實的陳述，包括與我們的預期、估計、假設、信念、展望、策略、目標、宗旨、指標和計劃相關的陳述都應被視為前瞻性陳述。

Cerence makes no representations to update those statements after today. These statements are subject to risks and uncertainties which may cause actual results to differ materially from such estimates as described in our SEC filings including the Form 8-K with the press release preceding today's call and our Form 10-K filed on November 25, 2024.

Cerence 不保證今天之後會更新這些聲明。這些聲明受風險和不確定性的影響，可能導致實際結果與我們向美國證券交易委員會提交的文件中所述的估計存在重大差異，包括今天電話會議之前的新聞稿中的 8-K 表格以及我們於 2024 年 11 月 25 日提交的 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.

此外，本公司可能會在本次電話會議中引用某些非公認會計準則指標、關鍵績效指標和預測財務資訊。

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 our website.

請參閱今天的新聞稿，了解這些指標的定義、限制和用途的更多詳細信息，以及非 GAAP 指標與最接近的 GAAP 指標的調整。新聞稿可在我們網站的 IR 部分查閱。

Joining me on today's call are Brian Krzanich, CEO of Cerence; and Tony Rodriquez, CFO of Cerence. Please note that slides with further context are available in the Investors section of our website.

參加今天電話會議的還有 Cerence 執行長 Brian Krzanich；以及 Cerence 財務長 Tony Rodriquez。請注意，我們網站的「投資者」部分提供了包含更多背景的幻燈片。

Now on to the call, Brian.

現在開始通話，布萊恩。

Thank you, Jason and good afternoon, everyone and welcome to the Q1 2025 Cerence's earnings call. I'm really excited to speak with you today while Tony will walk you through the details. I have the pleasure of sharing our great Q1 results with you first. Top line revenue of $50.9 million and adjusted EBITDA of $1.4 million both exceeded the high end of our guidance, and we had strong free cash flow of $7.9 million.

謝謝 Jason，大家下午好，歡迎參加 2025 年第一季 Cerence 的收益電話會議。我很高興今天能與您交談，托尼將向您詳細介紹。我很高興先與大家分享我們第一季的出色業績。5,090 萬美元的營業收入和 140 萬美元的調整後 EBITDA 均超過了我們預期的最高水準，而且我們擁有 790 萬美元的強勁自由現金流。

On our last call I shared that our fiscal year 2025 goal is to return Cerence's to profitability a critical step to fuel the future growth. With our Q1 results on a non-GAAP basis we have moved toward profitability even earlier than we forecasted. I couldn't be more proud of what the team has accomplished and the great start this has given us for 2025.

在我們上次電話會議上，我說過，我們 2025 財年的目標是讓 Cerence 恢復獲利，這是推動未來成長的關鍵一步。根據非 GAAP 基礎的第一季業績，我們比預期更早實現盈利。我為團隊所取得的成就以及這為我們 2025 年帶來的良好開端感到無比自豪。

In addition, during Q1, we repurchased [27 million] of our convertible notes due in June of 2025. And as we've discussed in the past, our plan is to extinguish this step through some combination of repurchases and financing. And we will decide the best path for taking into account shareholders interests and with a view towards driving long term value.

此外，在第一季度，我們回購了 2025 年 6 月到期的 [2,700 萬] 可轉換票據。正如我們過去討論過的，我們的計劃是透過回購和融資相結合的方式來消除這一步驟。我們將決定考慮股東利益並著眼於推動長期價值的最佳途徑。

As many of, you know that those who are new to the call may not. Cerence AI delivered AI powered multi-modal and conversational agent experience for automotive and beyond. We partner with the world's leading automakers and transportation OEMs to create AI powered assistance. Empowering them to deliver incredible user experiences to their drivers while also maintaining their unique brand and data ownership and keeping costs in line.

正如許多人所知，那些剛接到電話的人可能不知道。Cerence AI 為汽車及其他領域提供了由人工智慧驅動的多模式和對話代理體驗。我們與全球領先的汽車製造商和運輸原始設備製造商合作，打造人工智慧輔助駕駛。使他們能夠為司機提供令人難以置信的用戶體驗，同時保持其獨特的品牌和數據所有權並控製成本。

In addition to our deep technical expertise and our exciting product road map more on that in a moment. The world's leading automakers and tier one suppliers love to work with Cerence because we are a neutral and highly specialized supplier, living and breathing automotive and speaking the same language as our customers unlike our competitors.

除了我們深厚的技術專長和令人興奮的產品路線圖之外，稍後還會詳細介紹。世界領先的汽車製造商和一級供應商喜歡與 Cerence 合作，因為我們是一家中立且高度專業化的供應商，與汽車行業息息相關，與我們的客戶使用相同的語言，這一點與我們的競爭對手不同。

With the ongoing challenges OEMs are facing cost pressure slowdown in EV and car sales and an ever-changing geopolitical landscape. Cerence AI is uniquely positioned as the AI innovation partner who can help automakers deliver a premium experience while also navigating the impact impacts of a complex and rapidly changing industry.

隨著持續的挑戰，原始設備製造商面臨成本壓力、電動車和汽車銷售放緩以及不斷變化的地緣政治格局。Cerence AI 作為人工智慧創新合作夥伴具有獨特的優勢，可以幫助汽車製造商提供優質的體驗，同時應對複雜且快速變化的行業影響。

This quarter, the team has been laser focused on our three key deliverables for 2025. First, continuing our work to bring [Cerence Xey], our next generation product based on our CaLLM family of language models to market. [Xuis Agentic Multi LOM] architecture provides deep customization and enables compatibility with both new and existing in containment systems.

本季度，團隊專注於我們 2025 年的三個關鍵交付成果。首先，我們將繼續致力於將基於 CaLLM 系列語言模型的下一代產品 [Cerence Xey] 推向市場。 [Xuis Agentic Multi LOM] 架構提供深度定制，並實現與新舊遏制系統相容。

Making it easier for automakers to deploy to both current and future vehicles. We reached several important milestones. For [Ex U I gen one] within the quarter, including delivering five proof of concepts and kicking off our first major customer program further validating and solidifying our product and go to market strategy.

使汽車製造商更容易將其部署到現有和未來的車輛上。我們達到了幾個重要的里程碑。對於本季的 [Ex U I gen one]，包括提供五個概念證明並啟動我們的第一個主要客戶計劃，進一步驗證和鞏固我們的產品和市場策略。

And we've partnered with leading AI companies like NVIDIA and Microsoft. Empowering us with tools and resources to deliver improved performance and cost efficiency to our customers and their drivers. These AI leaders are eager to work with us given our position with global OEMs and install base.

我們也與 NVIDIA 和微軟等領先的人工智慧公司建立了合作夥伴關係。為我們提供工具和資源，為我們的客戶及其司機提供更高的性能和成本效率。鑑於我們在全球 OEM 和安裝基礎中的地位，這些 AI 領導者渴望與我們合作。

And you'll see more announcements in this space as we approach NVIDIA's GTC in March and the Shanghai Auto Show in April. The [XU I GEN] two which we are demonstrating now and will be available to our customers by the end of 2025 will deliver a single conversational interface that works across both cloud and embedded applications to complete tasks based on user preferences, integrating all aspects of a user's interaction into a seamless conversational interface that extends beyond voice.

隨著 3 月份 NVIDIA GTC 和 4 月份上海車展的臨近，您將看到該領域的更多公告。我們現在展示的 [XU I GEN] two 將於 2025 年底向我們的客戶推出，它將提供一個跨雲端和嵌入式應用程式運行的單一對話介面，以根據用戶偏好完成任務，將用戶互動的各個方面整合到超越語音的無縫對話介面中。

Our future product vision is to enable the driver to get into the vehicle and put their phone down. Using the in-car system to complete the tasks they would normally do in their phone. In this new agentic world. We can combine activities like navigation, phone, calling, text messaging and web search that even with your phone today would require multiple footsteps and switching between various apps.

我們未來的產品願景是讓駕駛者上車後放下手機。使用車載系統完成他們通常在手機上執行的任務。在這個新的代理世界中。我們可以將導航、電話、通話、發送簡訊和網路搜尋等活動結合起來，而這些活動即使使用今天的手機也需要多次腳步並在各個應用程式之間切換。

[Xu I] brings the future of agentic and conversational eye to your vehicle and transforms the car into an assistant that saves you time and truly simplifies your life. The second key deliverable for 2025 is continuing to grow our business with new and existing customers. In this first quarter of fiscal 2025 we secured six new design wins across our current product line and two new wins for our Generative AI Solutions across large and global OEMs.

[Xu I] 將代理和對話眼睛的未來帶入您的車輛，並將汽車轉變為助手，節省您的時間並真正簡化您的生活。2025 年的第二個關鍵成果是繼續與新舊客戶拓展業務。在 2025 財年第一季度，我們在現有產品線中獲得了六個新的設計獎項，並在大型全球 OEM 中獲得了兩個新的生成式 AI 解決方案獎項。

We also saw start of production for six major customer programs and two generative AI programs within the quarter, including a large trucking customer and a major cloud win back in China and the Renault avatar program that includes our generative AI solution. The third key deliverable for 2025 is continuing our transformation and cost management.

本季度，我們也看到六個主要客戶專案和兩個生成式人工智慧專案開始投入生產，其中包括一家大型卡車運輸客戶和一家在中國的主要雲端客戶，以及包含我們的生成式人工智慧解決方案的雷諾化身專案。2025 年的第三個關鍵成果是延續我們的轉型和成本管理。

You've already seen the benefits of this work in our Q1 top and bottom-line results. And as I previously stated, we believe we should always be looking at how we can be more efficient from both a cost and operational perspective.

您已經在我們的第一季的營收和淨利潤結果中看到了這項工作帶來的好處。正如我之前所說，我們認為我們應該始終從成本和營運角度考慮如何提高效率。

For fiscal year 2025 we are focused on simplifying and streamlining our organization and our structure to continue taking cost and spending out of Cerence. We can find more efficient and productive ways to accomplish the same task while also finding opportunities to vastly improve our speed to market and get exceptional products into the hands of our customers at a more rapid and competitive space.

對於 2025 財年，我們專注於簡化和精簡我們的組織和結構，以繼續降低 Cerence 的成本和支出。我們可以找到更有效率、更有成效的方法來完成相同的任務，同時還可以找到機會大幅提高我們的產品上市速度，以更快、更具競爭力的速度將優質的產品送到客戶手中。

This work is underway as we've continued to evaluate our office space and legal entities kicked off a process to streamline and improve our relatively complex customer contracts. And continue to evaluate every rehire and new hire as we move forward. We're looking forward to fiscal [Q2] to 2025. We're issuing initial revenue guidance of $74 million to $77 million with GAAP net income expected to be in the range of $1million to 5 million and adjusted EBITDA in the range of $18million to 22 million.

這項工作正在進行中，我們將繼續評估我們的辦公空間和法人實體，並啟動簡化和改進我們相對複雜的客戶合約的流程。並在我們前進的過程中繼續評估每一次重新僱用和新僱用的員工。我們期待 2025 財年第二季。我們發布的初步收入指引為 7,400 萬美元至 7,700 萬美元，預計 GAAP 淨收入在 100 萬美元至 500 萬美元之間，調整後的 EBITDA 在 1,800 萬美元至 2,200 萬美元之間。

And Tony will provide further details on the second fiscal quarter in his remarks. But this is my second earnings call as CEO of Cerence AI & I, and the rest of the team are proud and encouraged by the first quarter results.

托尼將在演講中提供有關第二財季的更多細節。但這是我作為 Cerence AI & I 執行長第二次召開財報電話會議，團隊的其他成員都對第一季的業績感到自豪和鼓舞。

Cerence AI is bringing conversational AI and true agentic capabilities to the vehicle now, not just in the future and we have an exciting road map ahead. With that I'll turn it over to Tony to go through the detail of our quarterly numbers, our guidance and our restructuring activities, Tony.

Cerence AI 現在正在為車輛帶來對話式人工智慧和真正的代理功能，而不僅僅是在未來，我們有一個令人興奮的路線圖。說完這些，我將把話題交給托尼，讓他詳細介紹我們的季度數據、我們的指導和我們的重組活動，托尼。

Thank you, Brian. Today, I will be reviewing our Q1 results for fiscal year 2025 and providing some guidance for our second quarter. I will also comment on our progression toward full fiscal year 2025 guidance.

謝謝你，布萊恩。今天，我將回顧我們 2025 財年第一季的業績，並為第二季提供一些指導。我也會對我們實現 2025 財年全年指導的進展進行評論。

Let's get into the Q1 operating statement. At the top we achieved Q1 revenue of $50.9 million which exceeded the high end of our guidance range of $47million to $50 million.

讓我們來看看第一季的經營報表。我們第一季的營收最高達到了 5,090 萬美元，超過了我們預期的 4,700 萬美元至 5,000 萬美元的最高範圍。

Our revenue this quarter was aided by $2 million in connected royalty true ups for one of our OEM customers. As a reminder, this is normal as our customers self-report royalty volumes that approximate their auto shipments with our technology in each quarter and periodically true up to actual.

本季度，我們為一位 OEM 客戶支付了 200 萬美元互聯版稅，為我們的營收貢獻豐富。提醒一下，這是正常的，因為我們的客戶自行報告的特許權使用費數量與每個季度使用我們的技術的汽車出貨量相近，並且定期與實際情況相符。

With this revenue achievement. Our gross margin for the quarter of 65% also exceeded our, the high end of our guidance of 60% gross profit was also benefited from a greater mix of higher margin license and connected service revenue as compared to professional services revenue.

憑藉這項收入成就。我們本季的毛利率為 65%，也超出了我們預期的 60% 毛利率的高端，這也受益於與專業服務收入相比利潤率更高的許可和連接服務收入的組合。

While our professional services revenue was lower than anticipated during the quarter, it performed at a higher gross margin than anticipated. Moving down the operating statement our non-GAAP operating expenses were $34.1 million for Q1 compared to $44.4 million from the same [quarter in fiscal year '24] this decrease of $10.4 million or 23% represents a full quarter of savings from the restructuring efforts conducted at the end of last year.

雖然本季我們的專業服務收入低於預期，但毛利率高於預期。在經營報表中，我們第一季的非 GAAP 營運費用為 3,410 萬美元，而去年同期（24 財年第一季）為 4,440 萬美元，減少了 1,040 萬美元，降幅為 23%，這代表著去年年底進行重組後整個季度的節省。

We also delayed some planned R&D hiring until Q2. Additionally, the company received notice of acceptance of an international tax credit that allowed us to record $2.5 million in operating cost benefit. The tax credit benefit recognized this quarter related to 2021 through 2024 fiscal years and was anticipated in our full year guidance but later in the fiscal year.

我們也將一些計畫中的研發招募延後到第二季。此外，該公司收到了接受國際稅收抵免的通知，這使我們能夠記錄 250 萬美元的營運成本效益。本季確認的稅收抵免福利與 2021 年至 2024 年財年有關，並在我們的全年指引中有所預期，但在本財年稍後。

Our adjusted EBITDA of $1.4 million well exceeded our guidance of loss in the range of [$6.6million to $9 million]. This was driven by improved gross profit as well as decreased operating expenses from continued effort of managing our ongoing operating cost and the previously discussed international tax credit of [$2.5 million].

我們的調整後 EBITDA 為 140 萬美元，遠超過我們預期的虧損範圍[660 萬美元到 900 萬美元]。這是由於我們不斷努力管理持續營運成本，以及先前討論的國際稅收抵免，毛利提高，營運費用減少所致。[250萬美元]。

As compared to prior year, our Q1 revenue declined $87.4 million but this was driven by $86.6 million of non-cash revenue recorded in last fiscal year associated with our Legacy Connected Services contract that was decommissioned in Q1 of fiscal 2024.

與去年同期相比，我們的第一季營收下降了 8,740 萬美元，但這是由於上一財年記錄的 8,660 萬美元非現金收入與我們的舊式聯網服務合約有關，該合約於 2024 財年第一季退役​​。

Our net loss for Q1 was $22.4 million compared to net income of $23.9 million for the same quarter in fiscal '24 again, the decline driven by the decommissioned Legacy contract. We ended the quarter with $110.5 million of cash and marketable securities down $19.9 million compared to where we ended last fiscal year. The lower cash balance this quarter related to our repurchase of $27.4 million in principal value of our 2025 convertible notes offset by our positive free cash flow during the quarter of $7.9 million.

我們第一季的淨虧損為 2,240 萬美元，而 24 財年同期的淨收入為 2,390 萬美元，這一下降是由於 Legacy 合約的退役所致。本季結束時，我們的現金和有價證券為 1.105 億美元，與上一財年末相比下降了 1,990 萬美元。本季現金餘額較低與我們回購了 2025 年可轉換票據的 2,740 萬美元本金有關，但本季 790 萬美元的正自由現金流抵銷了這一影響。

Our cash flow in Q1 absorbed approximately $8.9 million of cash restructuring costs associated with the transformation efforts of Q4 last year. We believe the good start to the to the year positions us well, to achieve our full year cash flow expectations.

我們第一季的現金流量吸收了去年第四季轉型工作相關的約 890 萬美元的現金重組成本。我們相信，今年的良好開局將為我們實現全年現金流量預期奠定良好基礎。

During the quarter, we recorded restructuring another cost of $11.1 million which included a $10.2 million charge primarily related to our transformation initiatives of which $3 million related to accelerated stock-based compensation associated with the termination of former senior management employees.

在本季度，我們記錄了另一項 1,110 萬美元的重組成本，其中包括主要與我們的轉型計劃有關的 1,020 萬美元的費用，其中 300 萬美元與解僱前高級管理員工相關的加速股票薪酬有關。

As we look at our revenue breakdown and operating metrics there, the license revenue of $22.7 million was up $1.9 million or 9.1% from the same quarter last year and slightly ahead of our expectations. As planned, there was no material fixed license revenue during the quarter.

當我們查看那裡的收入明細和營運指標時，我們發現授權收入為 2,270 萬美元，比去年同期增加了 190 萬美元（即 9.1%），略高於我們的預期。根據計劃，本季度沒有重大固定許可收入。

Q1 connected services revenue of $13.7 million was up $3.5 million or 34% from $10.2 million the same quarter last year. When excluding the legacy revenue. We believe this this reflects a positive trend of increased demand for our connected vehicles. As planned. Our professional service revenue was down year over year. However, the work performed was more profitable than a year ago.

Q1 網路服務營收為 1,370 萬美元，較去年同期的 1,020 萬美元增加 350 萬美元，增幅為 34%。排除遺留收入時。我們相信這反映了對我們連網汽車的需求成長的正面趨勢。正如計劃的那樣。我們的專業服務收入較去年同期下降。然而，所做的工作比一年前更有利可圖。

As we review our key performance indicators, this quarter total adjusted billings which are defined as our total billings adjusted to exclude professional services, prepaid billings and prepaid consumption was $227 million. An increase of 3% for the trailing 12-month period this year compared to previous year. Total billings including professional services for Q1 of $69 million were up 7% compared to $64.6 million for Q1 last year.

當我們審查我們的關鍵績效指標時，本季的總調整後帳單（定義為調整後不包括專業服務、預付帳單和預付消費的總帳單）為 2.27 億美元。與去年相比，今年過去 12 個月的成長率為 3%。第一季包括專業服務在內的總營業額為 6,900 萬美元，較去年第一季的 6,460 萬美元成長 7%。

As a reminder when we look at our total licenses shipped pro forma royalties is an operating metric. We use representing the total value of variable licenses shipped in a quarter including the shipments from fixed licenses where revenue was previously recognized upon contract signing.

提醒一下，當我們查看我們已運送的總許可證時，形式上的版稅是一項營運指標。我們用它來表示一個季度內出貨的可變許可證的總價值，其中包括固定許可證的出貨量，這些許可證的收入是在簽訂合約時確認的。

We refer to shipments where revenue was recognized in prior periods as fixed license consumption.

我們將前期已確認收入的出貨量稱為固定許可證消費。

Our pro forma royalties were $36.7 million which were higher by approximately $1.4 million as compared to Q1 last year and in line with our expectations. Consumption of previously fixed contracts totaled $14 million this quarter lower than the same quarter last year by about 3% and lower than projected. Going forward we anticipate a lower level of consumption of royalties associated with past fixed license contracts.

我們的預計特許權使用費為 3,670 萬美元，比去年第一季高出約 140 萬美元，符合我們的預期。本季先前固定合約的消費總額為 1,400 萬美元，比去年同期下降約 3%，且低於預期。展望未來，我們預期與過去的固定授權合約相關的版稅消費水準將會降低。

Our penetration of global auto production for the trailing 12 months declined by 251%. We shipped approximately 11 million cars with [San technology] the Q1 up 2.6% compared to last quarter but down 10.5% year over year. Q1 worldwide IHS production declined 1.2% compared to the same quarter last year and was up 10.8% quarter over quarter, excluding China, worldwide car production was only up 2.8% quarter, over quarter and down 4.8% versus same quarter last year.

過去 12 個月，我們對全球汽車生產的滲透率下降了 251%。我們第一季使用[San technology]出貨了約 1,100 萬輛汽車，比上一季成長 2.6%，但比去年同期下降 10.5%。Q1全球IHS產量較上季下降1.2%，季增10.8%，除中國外，全球汽車產量較上季僅成長2.8%，季減4.8%。

This is important to note as this shows that part of our worldwide penetration decline relates to the increase in China production within worldwide auto production. And to date, we have not been significantly successful at selling to Chinese OEMs into the chinese domestic market.

這一點值得注意，因為這表明我們全球滲透率的下降部分與全球汽車產量中中國產量的增加有關。到目前為止，我們在向中國 OEM 廠商銷售產品至中國國內市場方面尚未取得重大成功。

Weaker production volumes among our top customers also contributed to our year over year total volume decline. That said the number of cars produced that use our connected services increased 5.1% on trailing 12 months basis compared to the same metric a year ago and 5.6% compared to last quarter. This reflects the increased demand for connected vehicles.

我們主要客戶的產量下降也導致了我們總產量年減。也就是說，使用我們的連網服務生產的汽車數量與去年同期相比成長了 5.1%，與上一季相比成長了 5.6%。這反映了對連網汽車的需求不斷增加。

Now turning to our guidance for Q2, we currently expect revenue to be in the range of 74 million to $77 million. This includes $20 million projected fixed license revenue expected to be signed during the quarter. Additionally, our Q2 revenue guidance absorbs approximately $2 million of headwinds in professional services we saw in Q1.

現在談談我們對第二季的預期，我們目前預計營收在 7,400 萬美元至 7,700 萬美元之間。其中包括預計本季簽署的 2,000 萬美元固定許可收入。此外，我們的第二季營收預期吸收了第一季專業服務領域約 200 萬美元的阻力。

We're projecting, we're not projecting any additional fixed license revenue for the remainder of the year. With the level of fixed license revenue forecasted in Q2, we expect gross margins to improve to between 74% and 76% that income to be in the range of $1million to $5 million and adjusted EBITDA to be in the range of $18million to $22 million.

我們預計今年剩餘時間不會有任何額外的固定許可收入。根據第二季預測的固定授權收入水平，我們預計毛利率將提高至 74% 至 76% 之間，營收將在 100 萬美元至 500 萬美元之間，調整後的 EBITDA 將在 1,800 萬美元至 2,200 萬美元之間。

When taken in the context of full year guidance this means that the implied second half guidance for adjusted EBITDA would be negative if you simply base your calculations off the midpoint of our range. To be clear, this is not our intention to signal any change in direction of the business rather it is still early in the year. And as mentioned, Q1 was aided by a few timing related factors on the expense side that will catch up to us later in the week in the year.

從全年指引的角度來看，這意味著如果僅以我們範圍的中點為基礎進行計算，則調整後的 EBITDA 的隱含下半年指引將為負數。需要明確的是，這不是我們想要發出任何業務方向改變的訊號，而是現在還處於年初階段。正如前面提到的，第一季受到了費用方面的一些時間相關因素的推動，這些因素將在今年稍後顯現出來。

With that said, we had a positive first quarter but are not yet prepared to officially revise our [20 fiscal '25] revenue profitability and cash flow guidance. The strong start to the year position us very well and gives us confidence that our full year numbers are likely to come in towards the top end of the range of our guidance that we gave last quarter, especially full year adjusted EBITDA and free cash flow.

話雖如此，我們第一季的業績表現積極，但尚未準備正式修改我們的 [20 財年 '25] 收入盈利能力和現金流指引。今年開局強勁，為我們帶來了良好的開端，讓我們有信心全年業績很可能會達到我們上個季度給出的預期範圍的最高水平，尤其是全年調整後的 EBITDA 和自由現金流。

When looking at our liquidity as previously noted, we repurchased $27.4 million of outstanding 2025 convertible notes. As Brian mentioned, our plan is to extinguish the remaining $60 million of convertible notes due in June through some combination of payoff and financing. Between now and June, we will continue to evaluate potential capital structures that could position the company to execute our longer-term strategic direction while also allowing us to retain a cash reserve to be flexible as we move forward.

如前所述，當我們查看我們的流動性時，我們回購了 2740 萬美元的未償還 2025 年可轉換票據。正如布萊恩所提到的，我們的計劃是透過償還和融資相結合的方式償還 6 月到期的剩餘 6,000 萬美元可轉換票據。從現在到六月，我們將繼續評估潛在的資本結構，以使公司能夠執行我們的長期策略方向，同時也讓我們保留現金儲備，以便在未來的發展中保持靈活性。

Overall, we are pleased with the solid results for Q1 and our continued financial performance. I will now turn it back to Brian to close our remarks.

總體而言，我們對第一季的穩健業績和持續的財務表現感到滿意。現在我將把發言權交還給布萊恩來結束我們的演講。

Thanks Tony. In closing. We're happy with our Q1 results and motivated by our Q2 forecast. We remain focused on execution, business process improvement, cost reduction and advancing our next generation road map.

謝謝托尼。最後。我們對第一季的業績感到滿意，並對第二季的預測充滿信心。我們將繼續專注於執行、業務流程改進、降低成本和推進我們的下一代路線圖。

Now before we close, I want to take a moment to explain my philosophy on forecasting. We take our commitment to the street seriously and our goal is always to meet or beat our forecast. I have a firm policy not to change guns after the first quarter, our first quarter results and second quarter forecast give us confidence in our fiscal year 2025 forecast for revenue and we are projecting to be in the upper end of the range for adjusted EBITDA and free cash flow.

現在，在我們結束之前，我想花點時間解釋一下我對預測的哲學。我們認真對待對街頭的承諾，我們的目標始終是達到或超過我們的預測。我有一個堅定的政策，在第一季之後不改變策略，我們的第一季業績和第二季預測使我們對 2025 財年的營收預測充滿信心，我們預計調整後的 EBITDA 和自由現金流將處於區間的上限。

With regards to the recent tariff announcements, we don't believe that there will be a meaningful impact to Q2 as we're already halfway through the quarter and the recent tariffs were paused earlier this week. Now for the rest of the fiscal year, considering the number of changes that have occurred just in the last several weeks. We believe the situation is still incredibly fluid.

關於最近的關稅公告，我們認為這不會對第二季度產生重大影響，因為我們已經度過了本季度的一半，並且最近的關稅已於本週早些時候暫停。現在來看看本財政年度的剩餘時間，考慮到過去幾週發生的變化數量。我們認為局勢仍然極不穩定。

It would be too speculative for us to say what if any impact there will be on our results at this time. And we'll provide an update on our next earnings call in May if there is meaningful impact. We continue to believe in our ability to deliver on our Q2 and Fiscal year '25 guidance and in our growth for Fiscal year '26 and beyond. And we look forward to continuing to share our progress with you and we will now open it up for questions.

目前，我們無法預測這會對我們的結果產生什麼影響。如果有重大影響，我們將在 5 月的下次收益電話會議上提供最新消息。我們繼續相信我們有能力實現第二季和25財年的預期，並實現26財年及以後的成長。我們期待繼續與你們分享我們的進展，現在我們將開始回答問題。

Thank you.

謝謝。

(Operator Instructions)

（操作員指令）

Nick Doyle, Needham and Company.

尼克·道爾 (Nick Doyle)，尼德漢姆公司。

Hey guys, thanks for taking my questions. The design line and sop commentary is really positive so two questions there. How big can that first major customer program with [SXU I] be and second, how many units or any help around, sizing the six SOPs that are expected to really start here and, and how does that impact your PPU going forward? Thanks.

嘿夥計們，謝謝你們回答我的問題。設計路線和 SOP 評論確實非常積極，所以有兩個問題。與 [SXU I] 合作的第一個主要客戶專案規模有多大？謝謝。

Sure. So, Nick, this is Brian. I tell you that the first one is with the European auto manufacturer. If you look over the life of the contract, it's several million units, I think in the first year it's roughly a [million ish], maybe slightly less. And we're seeing the PPU upgrades that we've talked about in the past.

當然。那麼，尼克，這是布萊恩。我告訴你，第一個是與歐洲汽車製造商的合作。如果你看一下合約期限，它有幾百萬個單位，我認為第一年大約是一百萬個，可能稍微少一點。我們看到了過去談到的 PPU 升級。

Tony's going to talk to you a little bit about PPU after I'm done here because we really have a plan to start bringing PPU to you guys moving in and starting in the next quarter. If you take a look at the rest of the POCs that we have going, it's with all of the major OEMs just about in various levels of completion or start.

我在這裡講完之後，Tony 會和你們談談 PPU，因為我們確實計劃從下個季度開始將 PPU 帶給你們。如果你看我們正在進行的其餘 POC，你會發現我們與所有主要 OEM 的 POC 都處於不同的完成度或開始階段。

And so again, it could be for the next gen one one that we're looking at right now. It could be multiple millions of units as we move forward and we're seeing the PPU upgrade that we expect for this product. So, there's interest and we're getting paid for the product we bring this technology is really the beginning of the agentic connected vehicle model that we have. And it will continue in next gen one and then next gen two as well.

所以，這可能就是我們現在正在研究的下一代產品。隨著我們不斷推進，該產品的銷量可能會達到數百萬台，而且我們也看到了我們期望的 PPU 升級。所以，我們有利益，我們也為我們帶來的產品獲得報酬，這項技術實際上是我們擁有的代理連網汽車模型的開始。這種趨勢也將在下一代產品和第二代產品中持續延續。

Thanks.

謝謝。

Hi, Nick. Yeah, I mean, just bridging that on PPU. We, we've talked in the past on these calls that, we really needed to simplify the model and get to a volume times price model effectively. What we can say, we're not prepared to guide on PPU or effective PPU going for at this point by next quarter, we will. And we'll be able to give you more of these volume questions and PPU questions, but what I can say is there's really two fronts to us growing our PPU and I'll comment a little bit about the how we are kind of seeing that trajectory. But, but the two fronts are the number of connected cars.

你好，尼克。是的，我的意思是，只是在 PPU 上進行溝通。我們，我們在過去的這些電話會議上討論過，我們確實需要簡化模型並有效地獲得數量乘以價格模型。我們可以說的是，我們目前還沒有準備好對下個季度的 PPU 或有效 PPU 進行指導，但我們會的。我們將能夠為您提供更多有關數量問題和 PPU 的問題，但我可以說的是，我們成長 PPU 實際上是在兩個方面，我將稍微評論一下我們如何看待這一軌跡。但是，但是兩個方面是連網汽車的數量。

How many of our overall car's shift are connected? The second is the price in the, with the additional features of these newer products on the connected side, that increase in price and how it's driving our effective PPU. And again, at this point, though, I'm not prepared to provide a number, I would say that our effective PPU is really thinking about our license revenue in a quarter for those cars shipped so divided.

我們整體的車的換檔有多少是相連的？第二個是價格，隨著這些新產品在連接方面的附加功能，價格上漲以及它如何推動我們的有效 PPU。不過，目前我還沒有準備好給出一個具體數字，我想說的是，我們的有效 PPU 實際上考慮的是這些按季度出貨的汽車的授權收入。

So, the revenue divided into those cars shipped. And then on the connected side, it's the volume of the connected vehicles times really invited the billings, because as you, as we talked about before those billings are then recognized over a subscription period. So, we want to get to an effective PPU. What was the value of those cars shipped. What I have seen, kind of precursor to next quarter is that we are seeing the benefits of those two fronts, the increased number of connected cars and the increased price impacting positively and growing that effective PPU number.

因此，收入分成了運送的汽車數量。然後在連網方面，連網汽車的數量確實帶來了帳單，因為正如我們之前談到的，這些帳單是在訂閱期間內確認的。因此，我們希望獲得有效的 PPU。運送的這些車輛的價值是多少？我所看到的，下個季度的預兆是，我們看到了這兩個方面的好處，連網汽車數量的增加和價格的上漲對有效 PPU 數量產生了積極影響並增長了。

Really helpful. Thank you. And then second, billings is trending in the right direction. Can the conversion of some of what's in the pipeline today? Get you to the [$290 million] that you talked about. And then if I could just squeeze in, why take in all the fixed contracts this quarter? Thanks.

真的很有幫助。謝謝。其次，比林斯正朝著正確的方向發展。是否可以轉換目前正在進行的一些內容？讓你知道你談到的[2.9 億美元]。那麼，如果我能擠進去，為什麼要在本季簽訂所有固定合約？謝謝。

Yeah. Two things. Yes. So yeah, the number that we, the company has historically given on is trailing 12 months billings, right? And we quoted that [$227 million] of trailing 12 months adjusted billings. And again, it's adjusted for not including billings related to professional services and then gives up and down associated with previous fixed and current fixed.

是的。兩件事。是的。是的，我們公司過去給出的數字是過去 12 個月的帳單，對嗎？我們引用了過去 12 個月調整後的帳單金額 [2.27 億美元]。再次，它經過調整，不包括與專業服務相關的帳單，然後放棄與先前固定和當前固定相關的漲跌。

So that, that's a good number. We've talked about that, billings this quarter will outpace our, our projected revenue and again, our projected revenue, which we have noted is, [$236million to $247million]. So again, the billings outpacing that I think we're on track to certainly do that. The second question, what was the, so.

所以，這是一個好數字。我們已經討論過，本季的帳單將超過我們的預計收入，而且我們再次指出，我們的預期收入是，[2.36 億美元至 2.47 億美元]。所以，我認為，我們的帳單收入肯定會超過這個數字，我們肯定會做到這一點。第二個問題，那麼，是什麼呢？

The second question was why do all the prepaid now? And really, it's just a combination nick of customers and what we're able to negotiate. You gotta remember the prepaids come with a discount in the past. That discount was often quite high. And by a shrinking the total footprint that we're going to do down to $20 million. And really being more selective and making sure that it's with deep partners and the right discounts, we're able to get this discount down to record levels.

第二個問題為什麼現在都要預付費？事實上，這只是客戶姓名和我們能夠協商的結果的組合。您必須記住，過去預付款是有折扣的。這種折扣通常相當高。而我們將把總足跡縮小到 2000 萬美元。透過更嚴格地篩選並確保與深度合作夥伴和適當的折扣，我們能夠將折扣降至創紀錄的水平。

So, it was really, we had more demand than we had budgeted of 20 we got the right discounts. And so we went ahead and administrate it. That's, that's why we always tell you and I always say you really need to look at the full year. There's going to be lumpiness in our numbers quarter to quarter. But it's just, right, customers great discounts lower than we've almost ever achieved and it's the right thing to do now.

因此，事實上，我們的需求比我們預算的要多 20%，所以我們獲得了適當的折扣。因此我們繼續進行並管理它。這就是為什麼我們總是告訴你，而且我總是說，你真的需要看全年的情況。我們每季的數據都會波動。但確實，我們給顧客的折扣比以往都要低，這是現在應該做的正確的事情。

And lastly the timing in these cases, these, these customers with those lower discounts and everything that Brian said are coming to a point where their previous fixed is now consuming, down to a point where they want, they want to re up that prepayment and it fits into their fiscal year as well, which starts April 1st or well, sorry, within this quarter. So, they want to get it ahead of the next quarter. So, I think all those things are why we would do it. It's not that we planned per se to do it. It's we're taking we're being opportunistic with that $20 million.

最後，在這些情況下，這些享受較低折扣的客戶以及 Brian 所說的一切都已經到達了一個點，他們之前的固定費用已經消耗到了他們想要的點，他們想要重新支付預付款，這也適合他們的財政年度，即從 4 月 1 日開始，或者，對不起，在本季度內。因此，他們希望在下個季度之前完成這一目標。所以，我認為所有這些原因就是我們這樣做的原因。我們本身並沒有計劃這麼做。我們正在利用這 2,000 萬美元進行投機。

Thank you.

謝謝。

Mark Delaney, Goldman Sachs.

高盛的馬克·德萊尼。

Yes and good afternoon. Thanks for taking the questions. Good to hear about the breadth of your customer engagements and momentum with your Gen AI Solutions. I'm hoping you can expand a bit more on that topic and maybe speak to the competitive landscape for digital assistance and any sense of how your market share may trend relative to what you've seen with your traditional products.

是的，下午好。感謝您回答這些問題。很高興聽到您關於 Gen AI 解決方案的客戶參與度和發展勢頭的廣度。我希望您能就該主題進行更詳細的闡述，並談談數位助理的競爭格局，以及相對於傳統產品而言，您的市場份額可能如何變化。

Sure. So, I tell you the competitive landscape is, really pretty much what it was last quarter as well. We continue to see some of the big players like Google and Amazon in there. We see some of the, I'll call it software providers like ourselves. We see [Sound Homeone] and some of the others.

當然。所以，我告訴你，競爭格局其實與上個季度的情況基本上相同。我們繼續看到谷歌和亞馬遜等一些大公司進入該市場。我們看到了一些像我們一樣的軟體供應商。我們看到了[Sound Homeone]和其他一些公司。

And then we see some, I'll call it DIY where there are either [SoC] providers or some of the OEMs starting. Now, what happens is they're biting off bits and pieces. And they're often times being very prescriptive in some of the things like they must be connected, or you're locked into certain LLMs. So, our approach to that is always, hey, we're agnostic, we can use the latest and greatest LLMs, you can choose, we can customize, you can choose customized wake up words.

然後我們看到一些我稱之為 DIY，其中要么有 [SoC] 提供者，要么有一些 OEM 開始起步。現在，他們正在一點點蠶食。而且他們通常會對某些事情有非常嚴格的規定，例如它們必須是相互關聯的，否則你就會被鎖定在某些 LLM 中。因此，我們對此的態度始終是，嘿，我們是不可知論者，我們可以使用最新和最好的 LLM，您可以選擇，我們可以定制，您可以選擇定制的喚醒詞。

A good example was Renault avatar where we customize the Wake-up word around Renault, which is their, their Avatar's name and really customize the user experience. And that's really how we approach these. So, and then we offer, embedded capabilities that are quite strong and as we move through this year get even stronger, next gen two.

一個很好的例子就是雷諾頭像，我們圍繞著雷諾定制喚醒詞，也就是他們的頭像名字，真正定制用戶體驗。這確實就是我們處理這些問題的方法。因此，我們提供的嵌入式功能非常強大，隨著今年的發展，下一代產品將變得更加強大。

And this is what Microsoft is really helping us with around the CaLLM embedded LLM capabilities, shrinking the footprint and getting, two agentic LLM capabilities embedded in a car, which means you have to get small footprint from memory the right sizing the [SoC] and, being able to get it capable of having the right latency, those are all the things that we compete with, but otherwise the competitive landscape hasn't really changed.

這就是微軟在 CaLLM 嵌入式 LLM 功能方面真正幫助我們的地方，縮小佔用空間並在汽車中嵌入兩個代理 LLM 功能，這意味著您必須從內存中獲取較小的佔用空間，正確調整 [SoC] 的大小，並使其具有合適的延遲，這些都是我們競爭的方面，但除此之外，競爭格局並沒有真正改變。

That's a whole context, right? And, maybe too soon to try and quantify. But I mean that the share of market, do you think it's similar to what you've seen before? Do you think you can maybe gain some share with all the traction you're seeing?

這就是整個背景，對嗎？而且，嘗試量化可能還為時過早。但我的意思是，您認為市場佔有率與您以前看到的相似嗎？您是否認為，憑藉您所看到的所有吸引力，您有可能獲得一些份額？

Yeah. So, I mean, Tony tried to kind of walk you through and, and basically, if you look at the OEMs that we typically participate in which although I'll call it, let's call it the Western OEMs, our market share is relatively flat in that space. What we're seeing is, China inside of China, which, is taken away from our traditional OEMs and our ability to progress into China in China has not been there yet.

是的。所以，我的意思是，托尼試圖向您介紹一下，基本上，如果您看看我們通常參與的原始設備製造商，雖然我稱之為西方原始設備製造商，但我們在該領域的市場份額相對平穩。我們看到的情況是，中國境內的中國業務被從我們的傳統 OEM 中剝離出來，而我們尚未具備進入中國市場的能力。

And we're continuing to look at options and ways to do that. We believe our technology competes very well in that space. It's all about, basically, national winners that they're selecting. Now China outside of China we have good relationships and are in BYD and Zeekr and Great Wall [Neo]. So, we're in some of the Chinese outside of China. But if you look at the OEMs that we typically the Western OEMs that we typically play in our market share is relatively flat. Yes.

我們將繼續尋找實現這一目標的選擇和方法。我們相信我們的技術在該領域具有很強的競爭力。從根本上來說，這一切都是為了選出全國冠軍。現在我們在中國和國外都有良好的關係，與比亞迪、Zeekr 和長城等公司都有合作。[新]。所以，我們在中國以外的一些地區也有業務。但如果你看看我們通常參與競爭的西方 OEM，我們的市佔率相對平穩。是的。

Got it. So, one last one for me, just on the restructuring actions, I think you said on the last call you expected to be at the high end or maybe even someone above the $35million to $40 million annualized target, maybe update us on where that came in. And I think you said it's all in place, exiting the fiscal first quarter, but just to clarify where you stand on cost action and if there's any more to come or it's in place.

知道了。因此，對我來說最後一個問題，僅關於重組行動，我記得您在上次電話會議上說過，您預計該金額將處於高端，甚至可能高於 3500 萬美元至 4000 萬美元的年度目標，也許您可以向我們更新具體情況。我認為您說過，在第一財季結束時，一切都已準備就緒，但我只是想澄清一下，您在成本行動方面的立場，以及是否還會採取更多行動或是否已經到位。

Thank You.

謝謝。

So, I can start that, and Tony and Tony can answer in more detail. I think also Mark; I may not have completely answered your first question. So, I do think we will in the OEMs that we play with or that we participate with, we will gain share. Our target is to gain share. We saw a win back in China around the cloud. We're continuing to drive we believe a leading-edge road map of products. So, our goal is to continue to gain share in the guys that we typically play with. And then, we're aggressively seeing what we can do inside of China.

所以，我可以開始這個，Tony 和 Tony 可以更詳細地回答。我也這麼認為，馬克；我可能沒有完全回答你的第一個問題。因此，我確實認為，在與我們合作或參與的 OEM 中，我們將獲得份額。我們的目標是獲得份額。我們看到中國在雲端運算領域取得了勝利。我們將繼續推動我們相信的前沿產品路線圖。因此，我們的目標是繼續贏得與我們一起比賽的球員的青睞。然後，我們正在積極探索在中國可以做些什麼。

Now, your question was cost reduction. Your second question was around cost reductions and, and cost improvements and tell you that what we've already forecasted for 26 or excuse me for 25 is already, is work that's for the most part, already done. So, you're seeing the results of it filters through the cost system. So, whether it's headcount reductions or site closures or site reductions, things like that are already filtering through as the year goes on.

現在，您的問題是降低成本。您的第二個問題是關於降低成本和改善成本，並告訴您我們已經預測的 26 年或對不起 25 年的工作大部分已經完成了。因此，您看到的是經過成本系統過濾的結果。因此，無論是裁員、關閉工廠或減少工廠，隨著時間的推移，這些事情已經開始顯現。

We do have a set of programs that I talked about that we're continuing to look at and drive. And if we take something like improving our contracts and the efficiency within our finance unit, that's what Tony has ongoing right now. That work will probably take through at least halfway through this year and into probably the second half of next year.

我們確實有一系列我之前談到的計劃，我們正在繼續研究和推動它們。如果我們採取諸如改善合約和提高財務部門效率之類的措施，這就是托尼現在正在做的事情。這項工作可能至少會持續到今年年中，甚至明年下半年。

And you're really going to see the benefits of that one roll into 26 and it's hard for us to forecast right now because if we look at things like, reducing the number of legal entities or improving how we financially account for things and improving and streamlining that, we're still trying to figure out how do we account for how much effort and work? Does that remove from the system and spend it? You know, how many fewer tax returns do we have to do? How many filings do we not have to do? But most of those will roll into 26 for additional cost reductions as we move forward.

您確實會看到將公司數量增加到 26 個之後的好處，但我們現在很難預測，因為如果我們考慮減少法人實體的數量或改善我們的財務會計方式，並改進和簡化這些流程，我們仍在試圖弄清楚如何解釋我們付出了多少努力和工作？這是否會從系統中刪除並花掉它？你知道嗎，我們需要少申報多少份報稅表？我們不需要做多少份文件？但隨著我們不斷推進，其中大多數項目將合併到 26 個項目中，以進一步降低成本。

Colin Langan, Wells Fargo.

富國銀行的科林·蘭根。

Oh, great. Thanks for checking my questions. You mentioned you got it to the high end of the range. You said there were some factors in Q1 that were outliers. You just remind me what they are? Was it the $2 million of royalty? And then the 2.5 of tax credit. Are those the items you're referring to that were kind of?

噢，太好了。感謝您檢查我的問題。您提到您已將其提升至範圍的高端。您說第一季有一些異常因素。你只要提醒我它們是什麼就好了？是 200 萬美元的版稅嗎？然後是2.5的稅收抵免。這些就是您所指的物品嗎？

Yeah, a couple of the onetime items, we say onetime items and I'll talk through a couple of it. One is the true ups and as we, as our royalty reports come in our OEMs and tier one's report royalties, they report and then they oftentimes will true up to actually report an estimated number of true up the actual. So, in this case, there was a connected services contract, and we did some work with an OEM, and you wanted to make sure we were capturing all of our activity and got $2 million of a true up for past.

是的，有幾個一次性項目，我們說的是一次性項目，我會討論其中的幾個。一個是真實的，正如我們的版稅報告所說，我們的原始設備製造商和一級製造商的版稅報告中所說，他們通常會報告真實的估計數字。因此，在這種情況下，有一份連接服務合同，我們與一家 OEM 做了一些工作，你想確保我們捕獲了我們所有的活動，並獲得了 200 萬美元的實際收益。

So, some of that was in quarter of that $2 million. So, it isn't it would have, it would have hit the quarter as well. So, and then some of this is before the quarter. But if you, even if you take that $2 million away, we were kind of smacked down in the middle of, of our, our guidance. This put us over, over the edge on guidance on the top line.

因此，其中一部分是 200 萬美元的四分之一。所以，它不會對本季造成影響，它也會對本季造成影響。所以，其中一些是在本季之前。但即使你拿走這 200 萬美元，我們的預期也會受到打擊。這使得我們的營收預期超出了預期。

The tax credit was something that was baked into our full year expenses. We just happened to get a confirmation of that credit in Q1. We were able to record it for previous years, [20 the years], 2021 through 2024 in the first in Q1 where we had [that B] into a savings of [CapEx] for fiscal '25 but not necessarily in Q1. So those were the two main items that drove in improved profitability to the bottom line.

稅收抵免已計入我們的全年支出。我們恰好在第一季得到了該項信貸的確認。我們能夠在第一季記錄前幾年 [20 年]，即 2021 年至 2024 年的情況，其中我們將 [B] 轉化為 25 財年的 [CapEx] 節省，但不一定在第一季。因此，這是推動獲利能力提高的兩個主要因素。

And the tax credit isn't a special, wasn't treated as a special item.

而且稅收抵免並不是什麼特殊現象，也沒有被當作特殊專案處理。

I'm sorry, say that again.

對不起，請再說一次。

The tax credit wasn't a special adjustment on special item. Just out.

稅收抵免並不是針對特殊項目的特殊調整。剛剛出來。

Yeah, the tax credit was, it's an [off X] credit international tax credit associated with offsetting R&D costs. And, so, in previous years we incurred the entire international for this international, this country. We incur the cost for R&D without the same of the credit, this was a catch up for that country. And again, that 2.5 related to 24 and before, so we will have some savings, in 25 as well the rest of the year for the 25 expectations for that credit. But that was kind of the catch up.

是的，稅收抵免是，它是一種與抵消研發成本相關的國際稅收抵免。因此，前幾年我們為這個國際、這個國家承擔了全部國際費用。我們承擔了研發費用，卻沒有得到相應的信貸，這對該國來說是一種追趕。再次強調，2.5 與 24 及之前有關，因此在 25 年以及今年剩餘時間內，我們將有一些儲蓄，以滿足該信貸的 25 年預期。但那也算是趕上進度了。

And you mentioned in the closing commentary about tariff risk, I got a bit, I'm a little surprised. I kind of assume software wouldn't have much risk, but where is your tariff exposure? If there are tariffs? I should be thinking about that. If you could frame it.

您在結束語中提到了關稅風險，我有點驚訝。我認為軟體不會有太大風險，但您的關稅風險在哪裡？是否有關稅？我應該考慮一下。如果你能將它框起來。

Sure, it would just be in unit volume. So, if the projections were at one point that if the tariffs were applied, it could affect 25% of the cars and multiple [$1000] increases in cost. And so, if people buy fewer cars. That's when, we get paid from a shipment standpoint. Right. So, it would be purely volume. So, we don't get we are a US company. And so at least right now the talk of tariffs it's, it doesn't apply quote to our product, but it applies to the [Poten] or would have applied potentially to our customers products.

當然，它只是單位體積。因此，如果預測結果顯示徵收關稅將影響 25％ 的汽車，並導致成本增加數倍 [1000 美元]。所以，如果人們購買的汽車更少。那時，我們從運輸的角度獲得付款。正確的。因此，這純粹是數量問題。所以，我們不明白我們是一家美國公司。所以至少現在談論的關稅並不適用於我們的產品，但適用於[Poten]或可能適用於我們客戶的產品。

And that's all we were, [counting again]. And as I said right now, they've all been put on hold and we're halfway through the year. So, we don't see it right now. It's just an impossible prediction.

這就是我們的全部，[重新數數]正如我剛才所說，這些計劃都已被擱置，而今年已過去一半。所以，我們現在還看不到它。這只是一個不可能的預測。

And just lastly, you talked about [XUI], how quickly can this ramp, how quickly can adoption be? Because are our contracts 2 to 3 years or is this something that could be, added and drive that pricing higher in the next year or two pretty quickly?

最後，您談到了 [XUI]，它能夠多快發展，採用速度有多快？因為我們的合約期限是 2 至 3 年，還是可以添加一些內容，從而在未來一兩年內迅速推高價格？

Sure. So, you have to remember that there's two versions of our agentic large language model software version that we think about. One is an embedded non connected version and the other one is a connected version and the connected version gives you the ability to do things like, hey, what was the latest score on the football game or, who won La Liga this weekend? You know, it gives you real time data. It also gives you points of interest that are updated and all of that kind of information.

當然。所以，你必須記住，我們考慮的代理大型語言模型軟體版本有兩個版本。一個是嵌入式非連接版本，另一個是連接版本，連接版本使您能夠執行一些操作，例如，嘿，足球比賽的最新比分是多少，或者誰贏得了本週末的西甲聯賽？你知道，它為你提供即時數據。它還為您提供更新的興趣點以及所有此類資訊。

But it's not required to run the car, do navigation. Those are all embedded efforts. Typically the cars come from anywhere, Tony and I were talking about this this morning from one to we've seen as long as 10 year contracts for connectivity. I tell you that the majority of them are probably somewhere in that 2 to 3 years. At that point, the customer, the end user, the driver makes some agreement with the OEM the manufacturer of the car to continue connectivity at some rate, we don't drive that.

但它不是運行汽車、進行導航所必需的。這些都是深入的努力。通常汽車來自任何地方，托尼和我今天早上討論了這個問題，我們看到了長達 10 年的連接合約。我告訴你，他們中的大多數人可能都處於那 2 到 3 年的某個階段。此時，客戶、最終用戶、駕駛員與汽車製造商 OEM 達成某種協議，以某種速率繼續保持連接，但我們不會推動這一點。

And we're just, it's the early days of seeing what we sign up is for people. So we don't really have a forecast for that. When we look at this, we look at just most cars are being connected as we ship them. What's that rate? And that's how we project through 25 and all from that perspective because most of those cars are going to still be within the one year to three-year terms.

現在我們還在早期階段，還在觀察我們所簽署的協議對人們意味著什麼。所以我們其實並沒有對此做出預測。當我們觀察這現象時，我們發現大多數汽車在運輸過程中都是連網的。那利率是多少？這就是我們從這個角度對 25 輛汽車進行預測的方式，因為大多數汽車的保固期限仍為一到三年。

Got it. Alright. Thanks for taking my question.

知道了。好吧。感謝您回答我的問題。

Jeff Van Rhee, Craig-Hallum Capital Group.

Jeff Van Rhee，Craig-Hallum 資本集團。

Hey, Brian Tony, this is Daniel on for Jeff. Maybe just sort of as an example of the sort of places where you're seeing momentum if you could speak to that Chinese win back, you mentioned, maybe just describe that deal in a little bit more detail, what that bake off was like, how you won, why you won, etcetera.

嘿，Brian Tony，我是 Daniel，代替 Jeff。也許只是舉個例子，說明一下您看到的發展勢頭，如果您可以談談您提到的中國贏回的情況，也許可以更詳細地描述一下那筆交易，那次競標是什麼樣的，您是如何獲勝的，為什麼會獲勝，等等。

Sure. So that one was with the Western OEM cloud infrastructure, and we won based on again, the technology leadership that we provided and our willingness to be much more flexible and configure their cloud system exactly how they want it. So, it was a win back that we've had against a very strong competitor, prior local competitor.

當然。那個是與西方 OEM 雲端基礎設施合作，我們再次憑藉我們提供的技術領導地位以及我們願意更加靈活地按照他們的需求配置他們的雲端系統而獲勝。所以，這是我們戰勝非常強大的競爭對手，之前的本地競爭對手。

That's helpful. And then just on connected, either for Brian or Tony, just on the metrics that we should be looking at, a few different ways we could read this in new connected, I guess if you exclude the [$2 million] up this quarter, I guess it's down sequentially, it's up single digits, year over year, the trailing 12 month car shipped, that's growing 5% but a little bit of a deceleration from last quarter. Just a bunch of different ways we could read that. How would you cutting through all that, speak to the metrics? What's the most relevant, how should we be looking at the trajectory there?

這很有幫助。然後僅就連網汽車而言，無論是對於 Brian 還是 Tony，僅就我們應該關注的指標而言，我們可以從幾種不同的方式來解讀新的聯網汽車，我想如果你排除本季度的 [200 萬美元] 增長，我想它是環比下降的，同比增長個位數，過去 12 個月的汽車出貨量比上一季度增長了 5%，但略有增長。我們可以用很多不同的方式來解讀它。您如何切入所有這些問題並談論這些指標？最相關的是什麼？

Yeah, so I think there's a couple ways to look at it as we think about our 22 fronts of growth with regard to connected, right, is the number of connected cars that connected rate. So, for every car that ships out, how many of those are connected? And then two, what is that price per unit that we're seeing over both, connected is that growing as we anticipate? And how is that contributing to overall PPU?

是的，所以我認為，當我們思考與聯網相關的 22 個成長領域時，有幾種看待它的方式，對，就是連網汽車的數量和聯網率。那麼，每輛出廠的汽車中，有多少輛是連網的呢？然後第二，我們看到的單位價格是多少，連接的是否如我們預期的那樣增長？這對整體 PPU 有何貢獻？

So, it's, it's those two fronts, what I would say is that we're not ready to provide that, that, that guidance right now on connected rates and PPUs. But and then the second one is, or the third one would be billings. So just remember too that, we, so we, if a car ships out with a connected at that time, we're billing for two things. One is the embedded license which drops to revenue right away and then the connected, which then gets recognized over the future that's why as the first question was, hey, we're what's your billings? Are you on track for your billings this year which will outpace our GAAP revenue because the connected billings will be billed but not recognized until the future.

所以，就這兩個方面來說，我想說的是，我們目前還沒有準備好提供有關連接費率和 PPU 的指導。但是第二或第三個是帳單。所以也要記住，如果當時一輛車帶著網路連線出貨，我們會為兩件事收費。一個是嵌入式許可證，它會立即轉化為收入，然後是連接許可證，它將在未來得到確認，這就是為什麼第一個問題是，嘿，我們的帳單是多少？今年的帳單是否能按計劃超過我們的 GAAP 收入，因為相關帳單將被記帳但要到未來才能確認。

So, and we're, we don't break apart our billings between license and connected. So there's components that if you're trying to model are missing and we, and we're, we know that it's important to you. It's important for us to know, to be able to give you that, that information to help you model. But that's the really next quarter. But I think the way things you need to think about as we go forward are the connection rate, the price per unit on the connected side, the price per unit overall of the car shipped. And then lastly the growing billings within connected.

因此，我們不會將許可證和連接之間的帳單分開。因此，如果您嘗試建模，就會缺少某些組件，我們知道這對您很重要。對於我們來說，了解這一點很重要，這樣我們才能向您提供這些信息，幫助您建模。但這確實是下一季的事。但我認為，在我們前進的過程中，你需要考慮的事情是連接率、連接端的每單位價格、以及運輸汽車的每單位總體價格。最後，連接的帳單也在不斷增長。

And then just last for me, just a modeling questions the professional services [COGS] dipped below $10 million this quarter. I think first time we've ever seen that and that's kind of been a little bit of a trajectory over the past year for those [COGS] have been going down. Is that sustainable? Is that structural, is, is that one time just sort of our expectations for PS COGS?

最後，對我來說，只是一個建模問題，專業服務[COGS]本季跌破 1000 萬美元。我想這是我們第一次看到這種情況，這有點像過去一年這些 [COGS] 一直在下降的軌跡。這是可持續的嗎？這是結構性的嗎？

Yeah. So yeah, so PS is, is down as we, as we've said, what I mentioned in the call is that our margin for PS is, actually, proved, I think, we typically plan that business to see that business as a 30% margin business, which brings down our overall margin this quarter. It was north of that, which was beneficial to us. So overall COGS were down because professional service revenue was down. But also for what we did sell, we sold it at a higher margin. So, as you think about modeling, you could probably model professional service margins at north of 30 now.

是的。是的，PS 確實下降了，正如我們所說的那樣，我在電話會議中提到的是，我們的 PS 利潤率實際上已經得到證明，我認為，我們通常將該業務規劃為 30% 利潤率的業務，這會降低我們本季度的整體利潤率。它位於那的北邊，這對我們有利。因此，由於專業服務收入下降，整體銷貨成本也下降了。但就我們銷售的產品而言，我們的利潤率更高。因此，當您考慮建模時，現在可能可以將專業服務利潤率建模為 30 以上。

Okay, thanks, Brian. Thanks Tony.

好的，謝謝，布萊恩。謝謝托尼。

Jeff Osborne, TD Cowen.

傑夫·奧斯本（Jeff Osborne），TD Cowen。

Hey, thank you. Just two quick ones from my side. One, I think it was last quarter. You gave some usage stats on the gen AI platform. I want to say it was maybe June, July that your first customer in Europe pushed that update into the install base. Is there any metrics you can share about usage of the newer platform relative to the older conversational AI non-AI solutions.

嘿，謝謝你。我只想簡單說兩句話。首先，我認為是上個季度。您給出了一些有關 gen AI 平台的使用情況統計數據。我想說，可能是六月或七月，您在歐洲的第一位客戶將該更新推送到安裝基礎中。您能分享一些關於新平台相對於舊版對話式 AI 非 AI 解決方案的使用情況的指標嗎？

But I don't have any just any new metrics. I tell you we're continuing to see increased usage just if you look at our cloud traffic, that as the generative AI connected vehicles go out, we're continuing to see our cloud usage increase as well. But I don't have any new numbers for you from that perspective, but it is.

但我沒有任何新的指標。我告訴你，如果你看看我們的雲端流量，我們會繼續看到使用量的增加，隨著生成式人工智慧連網汽車的推出，我們也會繼續看到我們的雲端使用量增加。但從這個角度來看，我沒有提供任何新的數字，但事實確實如此。

Wasn't sure if there's like a halo effect in particular as you had an installed base of, I think it was the ID threes and fours if my memory is right that new users were using it for a month or two and then that tapered off, but it doesn't sound like that's the case. Is that right?

不確定是否存在像光環效應那樣的效應，因為你有一個安裝基礎，如果我沒記錯的話，我認為是 ID 三和四，新用戶使用了它一兩個月，然後逐漸減少，但聽起來情況並非如此。是嗎？

That's, that's not what we're observing yet. No, we're continuing to see it. In fact, one of the biggest things we work on is really helping end users understand just what the car is capable of doing. So, what we're finding is as users see, all they can do with voice in their car, with these connected cars, with the gen AI, they're using it more and more.

那，那還不是我們目前觀察到的。不，我們會繼續看到它。事實上，我們所做的最重要的工作之一就是真正幫助最終用戶了解汽車到底能做什麼。因此，我們發現，正如用戶所見，他們可以用語音在汽車上做所有事情，有了這些連網汽車，有了新一代人工智慧，他們越來越多地使用語音。

That's great to hear. My last question is just as we approach the June deadline for the debt, It remind us is there a minimum cash balance that you feel comfortable having? Obviously, you've got a nice EBITDA guidance here for Q2, I assume you generate nice free cash flow. But as you think about paying off the remaining tranche, how should we think about the options and then what the minimum cash balance you feel comfortable having?

我很高興聽到這個消息。我的最後一個問題是，就在我們接近六月債務償還期限之際，它提醒我們，您是否能承受最低現金餘額限制？顯然，您對於第二季的 EBITDA 給出了不錯的指引，我認為您會產生不錯的自由現金流。但是當您考慮償還剩餘部分時，我們應該如何考慮各種選擇，以及您認為合適的最低現金餘額是多少？

Yeah, we don't, we don't have a minimum per se that, that said we're very comfortable with paying it if we pay it off and don't refinance any, we'll likely be north of $70 million at the lowest point. So, is, is that the exact right number? That's what we're looking at as far as overall capital structure to see, where we want to be, but we're comfortable that it if we need to, we can continue to grow the cash flow of the business and grow from a, a lower point of $70 million of cash after the payoff to you know, to where that optimal amount is.

是的，我們沒有，我們本身沒有最低限額，也就是說，如果我們還清債務並且不再融資，我們非常樂意支付，那麼最低金額可能會超過 7,000 萬美元。那麼，這是完全正確的數字嗎？就整體資本結構而言，這就是我們所關注的，我們希望達到這樣的結構，但我們也確信，如果需要的話，我們可以繼續增加業務的現金流，從償還後的 7,000 萬美元現金的較低點增長到最佳金額。

Got it. That's all I have. Thank you.

知道了。這就是我的所有了。謝謝。

And I'm not showing any further questions at this time. I'd like to turn the call back over to Brian for any remarks.

我現在不想再問任何問題。我想將電話轉回給 Brian，以便他發表任何評論。

Okay. I would just like to, reiterate, we're really proud of our Q1 results. You saw our forecast for Q2, and we've also said that for the full year, we're comfortable in saying we'll be in the upper end of our guidance for both free cash flow and adjusted your data.

好的。我只想重申，我們為第一季的業績感到非常自豪。您看到了我們對第二季的預測，我們也說過，對於全年而言，我們可以放心地說，我們的自由現金流和調整後的數據都將達到預期的上限。

We're really driving hard as we enter Q2 into continuing to push our generative AI development work and doing our POCs at the customers and we look forward to talking to you in May to give you an update and the progress on all of those. And with that, I'd just like to close the call with a Thank you very much and I look forward to talking to you all in May.

進入第二季度，我們正在努力繼續推動我們的生成式人工智慧開發工作，並在客戶那裡進行 POC，我們期待在 5 月與您交談，向您提供所有這些工作的最新進展。最後，我想以「非常感謝」結束本次通話，並期待在五月與大家進行交談。

Thank you, ladies and gentlemen, let's conclude today's presentation. You may now disconnect and have a wonderful day.

謝謝女士們、先生們，讓我們結束今天的演講。現在您可以斷開連接並享受美好的一天。