Enfusion Inc (ENFN) 2023 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Enfusion's Third Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

下午好，女士們先生們，感謝你們的支持。歡迎參加 Enfusion 2023 年第三季財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。

I'd now like to turn the call over to Ignatius Njoku, Head of Investor Relations, to begin.

現在我想將電話轉給投資者關係主管 Ignatius Njoku。

Good morning, and thank you, operator. We welcome you to Enfusion's Third Quarter 2023 Earnings Conference Call. Hosting today's call are Oleg Movchan, Enfusion's Chief Executive Officer; and Brad Herring, Enfusion's Chief Financial Officer.

早安，謝謝你，接線生。我們歡迎您參加 Enfusion 2023 年第三季財報電話會議。今天的電話會議由 Enfusion 首席執行官 Oleg Movchan 主持；和 Enfusion 財務長 Brad Herring。

Please note, our quarterly shareholder letter, which includes our quarterly financial results have all been posted through our IR website. I would like to remind you that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC and are available under Investor Relations section on our website. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them following today's call. except as required by law.

請注意，我們的季度股東信函（其中包括我們的季度財務業績）均已透過我們的投資者關係網站發布。我想提醒您，今天的電話會議可能包含前瞻性陳述。這些前瞻性陳述受到許多風險和不確定性的影響，包括我們向美國證券交易委員會提交的文件中列出的風險和不確定性，這些風險和不確定性可在我們網站的投資者關係部分找到。實際結果可能與我們今天所做的任何前瞻性陳述有重大差異。這些前瞻性陳述僅代表今天，本公司不承擔任何義務或意圖在今天的電話會議後更新這些陳述。法律要求的除外。

In addition, today's call may include non-GAAP measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. Reconciliation to the nearest GAAP measure can be found in today's quarterly Shareholder Letter, which is available on the company's website.

此外，今天的電話會議可能包括非公認會計原則措施。這些措施應被視為對 GAAP 財務措施的補充而不是替代。您可以在今天的季度股東信中找到與最接近的公認會計原則（GAAP）衡量標準的調節，該信可在公司網站上找到。

With that, I'd like to turn the call over to Oleg to begin.

接下來，我想將電話轉給奧列格開始。

Good morning, and thank you for joining us today to discuss our results in the third quarter of this year. I'm pleased to announce that Enfusion business delivered another solid quarter for both revenue and profitability. Value creation engine has gained in momentum. Our disciplined go-to-market strategy is validated by persistent market capture and expansion across target segments in the face of ongoing macroeconomic uncertainty.

早安，感謝您今天加入我們討論我們今年第三季的業績。我很高興地宣布，Enfusion 業務在營收和獲利能力方面又實現了穩健的季度業績。價值創造引擎勢頭強勁。面對持續的宏觀經濟不確定性，我們嚴謹的市場進入策略透過持續的市場佔領和跨目標細分市場的擴張得到了驗證。

We continue to execute against our large market opportunity, take market share, expand our global footprint and improve our profitability. Our value proposition remains intact, validated by healthy client additions, improving net dollar retention, increase in average contract value and expanded margins. I'm very excited about the formal launch of Portfolio Workbench, which empowers portfolio managers to seamlessly integrate Portfolio construction processes with operational workflows.

我們繼續抓住巨大的市場機遇，佔領市場份額，擴大我們的全球足跡並提高我們的獲利能力。我們的價值主張保持不變，並透過健康的客戶增加、淨美元保留率的提高、平均合約價值的增加和利潤率的擴大而得到驗證。我對投資組合工作台的正式推出感到非常興奮，它使投資組合經理能夠將投資組合建立流程與營運工作流程無縫整合。

Innovation is embedded in our culture and is at the core of our strategy. This product release not only represents a pivotal moment in our journey to support the largest and most complex institutional clients but also underscores our commitment to technological development and a best-in-class client experience. I will share more details on this in a moment. Although we're not immune to macro headwinds, I'm more optimistic than ever about our future. We'll continue to grow above market rates and taking business from resourcing centers, fragment and expensive solutions.

創新植根於我們的文化之中，也是我們策略的核心。該產品的發布不僅代表了我們為最大、最複雜的機構客戶提供支援的關鍵時刻，而且還強調了我們對技術開發和一流客戶體驗的承諾。我稍後將分享更多相關細節。儘管我們不能免受宏觀逆風的影響，但我對我們的未來比以往任何時候都更加樂觀。我們將繼續以高於市場水平的速度成長，並從資源中心、分散化和昂貴的解決方案中獲取業務。

Enfusion continues to prove that it deserves to be a platform of choice for investment management organizations of any scale and complexity. Ultimately, our results are the evidence that Enfusion's business model is truly global, scalable and adaptable. Enfusion remains well positioned to benefit from secular industry tailwinds, while increasing its resilience to macro uncertainty. Regardless of market environment, we will continue to operate from a position of strength and iterate towards recapturing our unit growth and profitability profile.

Enfusion 不斷證明它值得成為任何規模和複雜程度的投資管理組織的首選平台。最終，我們的結果證明 Enfusion 的商業模式是真正的全球性、可擴展性和適應性。 Enfusion 仍然處於有利地位，可以從長期的行業順風中受益，同時增強其對宏觀不確定性的抵抗能力。無論市場環境如何，我們都將繼續以優勢地位運營，並不斷迭代以重新奪回我們的單位成長和獲利能力。

Now let me walk you through some of our key financial metrics in the third quarter. Revenue grew 13% to $44.4 million as we continue to execute on our go-to-market strategy and product road map. Adjusted EBITDA was $8.2 million and represented an 18.5% margin. We continue to improve our margin profile, benefiting from strong expense control and operating leverage. We added 37 clients this quarter, bringing the total client count to 842 and increased our ACV to $217,000, representing 2.4% quarter-over-quarter and about 8% year-over-year growth. Brad will discuss our financial results in more detail in a few moments.

現在讓我向您介紹我們第三季的一些關鍵財務指標。隨著我們繼續執行我們的上市策略和產品路線圖，收入成長了 13% 至 4,440 萬美元。調整後 EBITDA 為 820 萬美元，利潤率為 18.5%。受益於強有力的費用控制和營運槓桿，我們繼續改善我們的利潤狀況。本季我們增加了 37 個客戶，使客戶總數達到 842 家，ACV 增加到 217,000 美元，環比增長 2.4%，同比增長約 8%。布拉德將稍後更詳細地討論我們的財務表現。

Now I would like to share a few notable client additions, validating our execution framework as we expand across geographies and market segments. In the Americas, revenue grew 10% year-over-year reflecting ongoing market share gains with larger fund managers despite macro headwinds. I'm thrilled to share that Enfusion signed a bottom-pace alternative manager with approximately $2.5 billion in AUM. The firm opted out of upgrading its legacy OMS given the resource challenges. As a result, the system became obsolete after several years.

現在，我想分享一些值得注意的客戶新增內容，在我們跨地域和細分市場擴展時驗證我們的執行框架。在美洲，儘管面臨宏觀阻力，但營收年增 10%，反映出大型基金管理公司的市佔率持續成長。我很高興地告訴大家，Enfusion 簽下了一位資產管理規模約 25 億美元的墊底另類投資經理。鑑於資源挑戰，該公司選擇不升級其遺留的 OMS。結果，該系統在幾年後就過時了。

Unlike the legacy provider, our team was able to understand the complexity of the clients' workflows and design a well-suited solutions. Notably, this conversion resulted in Enfusion providing both software and managed services, as a much more cost-effective alternative compared to using in-house resources. Enfusion also signed a New York based loan-only asset manager focused on emerging and frontier markets. In this competitive takeaway, Enfusion is consolidating the investment managers patchwork of disparate solutions, which required manual processes for communication between systems. As a result, the in-house solution became exceedingly complex, drove higher maintenance costs and demanded more IT resources.

與傳統提供者不同，我們的團隊能夠了解客戶工作流程的複雜性並設計出合適的解決方案。值得注意的是，這種轉變導致 Enfusion 提供軟體和託管服務，與使用內部資源相比，這是更具成本效益的替代方案。 Enfusion 還簽署了一家總部位於紐約、專注於新興和前沿市場的純貸款資產管理公司。在這項具有競爭力的成果中，Enfusion 正在整合由投資經理人拼湊而成的不同解決方案，這需要手動流程來進行系統之間的通訊。結果，內部解決方案變得極為複雜，維護成本更高，並且需要更多 IT 資源。

By implementing Enfusion's platform, the asset manager benefits from our fluid front-to-back solution inclusive of the new launch Portfolio WorkBench tightly integrated with both golden source of true data sets and workflows, result in a minimized operational risk and material cost reduction. In EMEA, revenue grew 29% year-over-year as the market continues to embrace our differentiated offering. We're excited about our momentum in the region as we diversify our revenue portfolio moving to larger and more complex markets and expand into new regions.

透過實施Enfusion 的平台，資產管理者可以從我們流暢的前後解決方案中受益，其中包括新推出的Portfolio WorkBench，它與真實數據集和工作流程的黃金來源緊密整合，從而最大限度地降低營運風險並降低材料成本。在歐洲、中東和非洲地區，隨著市場持續接受我們的差異化產品，營收年增 29%。隨著我們將收入組合多元化，轉向更大、更複雜的市場並擴展到新的地區，我們對該地區的發展勢頭感到興奮。

For example, we stand with another London-based multibillion-dollar global institutional asset manager. The fund manager outgrew its legacy incumbent provider and faced multiple challenges, including manual trade allocation and an adequate cash reconciliations. They selected Enfusion because of the robust front-to-back platform, allowing them to streamline and automate their workflow and scale as they grow. With Enfusion, the client now has a unified view across all funds and product, can, execute swift trade instructions and benefits from our multi-asset class NAV generation capability.

例如，我們與另一家總部位於倫敦、資產數十億美元的全球機構資產管理公司合作。該基金管理公司的規模超出了其傳統的現有提供者的規模，並面臨多種挑戰，包括手動交易分配和充分的現金調節。他們選擇 Enfusion 是因為其強大的前端到後端平台，使他們能夠隨著業務的發展簡化和自動化工作流程並擴展。借助 Enfusion，客戶現在可以對所有基金和產品擁有統一的視圖，可以執行快速的交易指令，並從我們的多資產類別資產淨值產生能力中受益。

We also signed a large newly launched debt manager, the largest distressed specialist launched in recent history, demonstrating our ongoing success with credit strategies. They selected Enfusion platform because of its flexibility to support the company's future growth and robust major support across various asset classes as well as workflow automation. Importantly, we continue to expand our geographic presence in Europe.

我們還簽署了一家新推出的大型債務管理公司，這是近年來推出的最大的不良資產管理公司，證明了我們在信貸策略方面持續取得的成功。他們選擇 Enfusion 平台是因為它能夠靈活地支援公司未來的成長，並提供跨各種資產類別和工作流程自動化的強大主要支援。重要的是，我們繼續擴大我們在歐洲的地域分佈。

I'm thrilled to announce that we entered into an agreement with Oslo-based Investment Manager which runs a loan-only equity strategy. The manager is part of a newly formed entity with a large, well-known team with a significant track record. This particular client will be leveraging Enfusion software and managed services offering. We also won a mandate from a South African-based loan-only fund. This client lends to leverage Enfusion software and services to streamline their workflow and realize cost savings.

我很高興地宣布，我們與總部位於奧斯陸的投資管理公司簽訂了一項協議，該管理公司運營純貸款股權策略。該經理隸屬於一家新成立的實體，該實體擁有一支規模龐大、知名且業績卓著的團隊。該特定客戶將利用 Enfusion 軟體和託管服務產品。我們也獲得了南非一家純貸款基金的委託。該客戶利用 Enfusion 軟體和服務來簡化其工作流程並實現成本節約。

In APAC, we grew revenue by 13% year-over-year. We're seeing early signs of improvement in the launch market and getting traction with our upmarket motion. For example, we signed a Hong Kong based global macro alternative manager. The fund manager was looking for a platform to enable them to launch quickly with robust end-to-end architecture and a single source of truth for data and operations. Additionally, by partnering with Enfusion, the fund manager leverages Enfusion's value at risk and other risk measurement and reporting capabilities.

在亞太地區，我們的營收年增 13%。我們看到首發市場出現改善的早期跡象，並受到我們的高端市場行動的牽引。例如，我們簽署了一位總部位於香港的全球宏觀另類投資經理。該基金經理正在尋找一個平台，使他們能夠透過強大的端到端架構以及單一的數據和營運事實來源快速啟動。此外，透過與 Enfusion 合作，基金管理公司可以利用 Enfusion 的風險價值以及其他風險衡量和報告功能。

Finally, we entered into an agreement with another recent fund launch, an Australian alternative asset manager based in Sydney. The fund manager chose Enfusion because they were looking for a flexible platform that would facilitate a timely launch and set up the company for future scale from day one.

最後，我們與最近推出的另一家基金（位於雪梨的澳洲另類資產管理公司）達成協議。基金經理選擇 Enfusion 是因為他們正在尋找一個靈活的平台，以促進及時啟動並從第一天起就為公司未來的規模奠定基礎。

Let's move to some updates on the product front. As I've said many times, innovation is one of our core values and has always differentiated Enfusion from our competition. It is embedded in our culture and permeates throughout everything we do on a daily basis. I'm thrilled to announce the recent formal launch of our Portfolio WorkBench, a highly intuitive capability that enables investment managers to rebalance their portfolios across multiple strategies and investment vehicles.

讓我們轉向產品方面的一些更新。正如我多次說過的那樣，創新是我們的核心價值之一，並且始終使 Enfusion 在競爭中脫穎而出。它根植於我們的文化中，並滲透到我們日常所做的一切。我很高興地宣布我們最近正式推出了投資組合工作台，這是一個高度直觀的功能，使投資經理能夠跨多種策略和投資工具重新平衡其投資組合。

By leveraging in-grid portfolio editing and an intuitive user interface, Portfolio WorkBench works in concert with our OMS functionality and allows PMs to easily manage performance and risk against the benchmark. As a result, PMs can test pre-trade compliance rules, monitor post-trade compliance, and model upcoming subscriptions and redemptions across multiple investment vehicles within one user interface without concerns about data integrity. The Portfolio WorkBench is a strategic product launch for several reasons.

透過利用網格內投資組合編輯和直覺的使用者介面，投資組合工作台與我們的 OMS 功能協同工作，使產品經理能夠根據基準輕鬆管理績效和風險。因此，PM 可以在一個使用者介面內測試交易前合規性規則、監控交易後合規性並為即將到來的跨多種投資工具的認購和贖回建模，而無需擔心資料完整性。出於多種原因，Portfolio WorkBench 是一項戰略產品發布。

First, Portfolio WorkBench is a critical component in our stated strategy to move upmarket to larger and more complex asset managers, that expands our traditional operational capabilities into the decision-making segment of the workflows in a way that is tightly integrated with decision implementation.

首先，Portfolio WorkBench 是我們既定策略中的關鍵組成部分，該策略旨在將高端市場轉向更大、更複雜的資產管理公司，它將我們的傳統營運能力以與決策實施緊密結合的方式擴展到工作流程的決策部分。

Second, it's an intermediate step to support investment managers to deploy both proprietary and third-party risk models facilitating their portfolio optimization and the risk management frameworks. It has important implications for both passive managers that are tracking benchmarks with periodic rebalancing and active managers focused on outperforming benchmarks by taking active positions. This will drive more quantitative and systematic portfolio construction in addition to heuristic and manual portfolio adjustments.

其次，這是支援投資經理部署專有和第三方風險模型的中間步驟，以促進其投資組合最佳化和風險管理框架。它對於透過定期重新平衡追蹤基準的被動型基金經理人和透過採取主動倉位專注於超越基準的主動型基金經理人都有重要影響。除了啟發式和手動投資組合調整之外，這將推動更定量和系統化的投資組合建構。

Third, Portfolio WorkBench continues to build on Enfusion's all-in-one product philosophy, where we insist on eliminating fault lines across all segments of investment management workflows. With just another set of functionality, that is a fluid and natural extension of the existing platform.

第三，Portfolio WorkBench 繼續以 Enfusion 的一體化產品理念為基礎，我們堅持消除投資管理工作流程所有部分的故障線。只需另一組功能，即可對現有平台進行流暢且自然的擴充。

Lastly, it further expands our competitive advantage by widening our mold from legacy competitors, responding to market demand including client retention and expanding Enfusion value proposition.

最後，它透過擴大傳統競爭對手的模式、回應市場需求（包括保留客戶）和擴大 Enfusion 價值主張，進一步擴大了我們的競爭優勢。

Here is just one of many examples of our Portfolio WorkBench allows us to expand into the loan-only segment. It was a key element that helped us convert a large emerging markets equities and credit focused manager that initially went with one of our competitors. In addition to Portfolio WorkBench, Enfusion rolled out 366 additional enhancements and features across our portfolio management and OEMS. The frequency and scope of the software updates is an important dimension of our competitive advantage and value creation mechanism.

這只是我們的投資組合工作台允許我們擴展到僅貸款領域的眾多範例之一。這是幫助我們轉變一家大型新興市場股票和信貸經理的關鍵因素，該經理最初與我們的競爭對手之一合作。除了 Portfolio WorkBench 之外，Enfusion 還在我們的產品組合管理和 OEMS 中推出了 366 項額外的增強功能和功能。軟體更新的頻率和範圍是我們競爭優勢和價值創造機制的重要維度。

With that, I would like to highlight 2 other important enhancements the team released this quarter. The first is Bloomberg real-time mobile support, which connects Bloomberg's real-time pricing in their terminals with third-party applications so that the investment team can stay connected, leveraging Enfusion's mobile apps. The other is native support for an OTC product, (inaudible), which provides investors with a cost effective and optimal way to obtain data exposure to corporate bonds and leverage loan markets.

在此，我想強調團隊本季發布的另外 2 個重要增強功能。第一個是 Bloomberg 即時行動支持，它將 Bloomberg 終端中的即時定價與第三方應用程式連接起來，以便投資團隊可以利用 Enfusion 的行動應用程式保持聯繫。另一個是對場外交易產品的本地支援（聽不清楚），它為投資者提供了一種具有成本效益且最佳的方式來獲取公司債和槓桿貸款市場的數據。

Enfusion's front-to-back platform remains well suited to support complex instruments and solve for simplicity that legacy vendors simply cannot. These new features are the result of long-term efforts by our product and engineering teams to deliver value-added capabilities, highly requested by our clients.

Enfusion 的前後平台仍然非常適合支援複雜的儀器，並解決傳統供應商根本無法解決的簡單問題。這些新功能是我們的產品和工程團隊長期努力的結果，旨在提供客戶強烈要求的增值功能。

Now moving on to market dynamics. We see some green shooting managers planning to launch new hedge fund. However, the overall launch dynamics remain the low historically. Be that as it may, while we continue to successfully protect and expand our hedge fund home [turf], our book of business is increasingly less dependent on launches. Importantly, Enfusion continues to benefit from secular tailwinds as the entire investment management industry is reevaluating its software stack, workloads and related costs and risk.

現在轉向市場動態。我們看到一些綠色射擊經理計劃推出新的對沖基金。然而，整體發射動態仍處於歷史低點。儘管如此，在我們繼續成功保護和擴大我們的對沖基金主場的同時，我們的業務對發行的依賴越來越少。重要的是，隨著整個投資管理行業正在重新評估其軟體堆疊、工作負載以及相關成本和風險，Enfusion 繼續受益於長期順風。

Our upmarket motion keeps gaining momentum as we continue to scale our technology, execute on our product road map and listen to our clients. All of this is reflected in our recent robust market share gains and continued shift in the revenue mix away from launch of store conversions and away from pure hedge fund managers for institutional investment managers. As like I have said multiple times, Enfusion is a pain killer, not a vitamin. As a side benefit of killing our clients fee, we inflict an increasing amount of pain on our competition.

隨著我們不斷擴展我們的技術、執行我們的產品路線圖並傾聽客戶的意見，我們的高端運動不斷獲得動力。所有這些都反映在我們最近強勁的市場份額增長以及收入結構的持續轉變中，從推出商店轉換和從純粹的對沖基金經理轉向機構投資經理。正如我多次說過的，Enfusion 是一種止痛藥，而不是維生素。作為降低客戶費用的附帶好處，我們為競爭對手帶來了越來越多的痛苦。

Now let me review some key elements of our long-term strategy. Our strategic position continues to evolve as we unlock new market opportunities and diversify our client base towards institutional asset managers and asset owners. Enfusion is a business in transition, and we continue to prove our business model as we optimize our go-to-market strategy, shorten the sales cycle and increase velocity of our onboarding process.

現在讓我回顧一下我們長期策略的一些關鍵要素。隨著我們釋放新的市場機會並使我們的客戶群向機構資產管理者和資產所有者多元化，我們的策略地位不斷發展。 Enfusion 是一家轉型中的企業，隨著我們優化上市策略、縮短銷售週期並提高入職流程速度，我們不斷證明我們的商業模式。

Naturally, all of that drives TAM expansion, improvement in durability and speed of our growth, margin expansion and client retention. Importantly, this framework is designed to protect our business economics from excessive macro headwinds. As evidenced by our performance over the last year, we continue to spread our growth wins globally, shifting our book of business away from minor center cities and targeting regions where competition is in.

當然，所有這些都推動了 TAM 擴張、耐用性和成長速度的提高、利潤率擴張和客戶保留。重要的是，該框架旨在保護我們的企業經濟免受過度宏觀阻力的影響。正如我們去年的業績所證明的那樣，我們繼續在全球範圍內擴大我們的成長勝利，將我們的業務範圍從次要中心城市轉移到競爭激烈的地區。

We continue to maintain our focus on returning to Enfusion's historical financial profile. Enfusion value creation machine is back to its normal virtuous cycle as we exercise surgical precision in our pipeline generation, operational excellence of our client services, product innovation, optimization of our revenue strategies and relentless fiscal discipline.

我們繼續關注恢復 Enfusion 的歷史財務狀況。隨著我們在管道生成、客戶服務卓越營運、產品創新、收入策略優化和嚴格的財務紀律方面發揮外科手術般的精確性，輸液價值創造機器已恢復正常的良性循環。

In conclusion, we delivered solid third quarter results. We remain focused on sales execution, moving up market and expanding our global footprint. I'm very grateful to all my Enfusion colleagues for hard work, passion and focus on our clients.

總之，我們交付了穩健的第三季業績。我們仍然專注於銷售執行、提升市場並擴大我們的全球足跡。我非常感謝所有 Enfusion 同事的辛勤工作、熱情和對客戶的關注。

I will now turn the call over to Brad to discuss our financials.

我現在將把電話轉給布拉德，討論我們的財務狀況。

Thanks, Oleg, and thank you, everyone, for joining us today. Speaking on behalf of the entire Enfusion management team, I'm glad to report yet another quarter of top line growth, combined with strong profitability and cash flow generation. For the third quarter, we generated revenue of $44.4 million, an increase of 13% over the same quarter last year. Just as we reported last quarter, these results represent a slowdown in our historical growth rates. However, we're seeing some positive indicators in our underlying growth algorithm.

謝謝奧列格，也謝謝大家今天加入我們。我代表整個 Enfusion 管理團隊，很高興地報告又一個季度的營收成長，以及強勁的獲利能力和現金流生成。第三季度，我們營收 4,440 萬美元，比去年同期成長 13%。正如我們上季度報告的那樣，這些結果表明我們的歷史成長率有所放緩。然而，我們在我們的基本成長演算法中看到了一些積極的指標。

First, bookings in both new fund launches and conversions continue to be strong as the sector continues to look for effective and efficient solutions to manage back-office tasks.

首先，隨著該行業繼續尋找有效且高效的解決方案來管理後台任務，新基金發行和轉換的預訂量繼續強勁。

Second, the quality of our pipeline continues to improve as we expand our market opportunities by deploying new product features such as portfolio benchmarking and additional capabilities around credit.

其次，隨著我們透過部署新產品功能（例如投資組合基準測試和圍繞信貸的附加功能）來擴大市場機會，我們的管道品質不斷提高。

Finally, we are starting to see some favorable trends in the underlying revenue drivers within our back book. Specifically, we are seeing both improvement in net organic growth as well as lower churn.

最後，我們開始在我們的帳簿中看到潛在收入驅動因素的一些有利趨勢。具體來說，我們看到淨有機成長的改善以及客戶流失率的降低。

Third quarter ARR was $177.9 million, up 12% year-over-year and 4% higher than what we reported just last quarter. As a result of the trend improvements in the back book I mentioned, net dollar retention in the quarter, excluding involuntary churn, was 107% while net dollar retention, including involuntary churn, was just over 102%. For both NDR measures, this is the first quarter in the previous 4, where we see NDR increases, which leads to confidence that the headwinds related to the macro challenges facing the sector are either stabilizing or modestly reversing.

第三季 ARR 為 1.779 億美元，年增 12%，比我們上季報告的數據高出 4%。由於我在後面的書中提到的趨勢改善，本季的淨美元保留率（不包括非自願流失）為 107%，而淨美元保留率（包括非自願流失）略高於 102%。對於這兩個 NDR 指標，這是過去 4 個季度中的第一個季度，我們看到 NDR 有所增加，這使人們相信，與該行業面臨的宏觀挑戰相關的逆風正在穩定或適度逆轉。

Adjusted gross profit increased by just over 9% year-over-year to $30.2 million. This represents an adjusted gross margin of 68%. As we've talked about in previous earnings calls, we expect adjusted gross margins to remain between 68% and 70% for the next several quarters as we continue to invest in our client onboarding and servicing capabilities in support of our growth strategy.

調整後毛利年增略高於 9%，達到 3,020 萬美元。這意味著調整後的毛利率為 68%。正如我們在先前的財報電話會議中談到的那樣，隨著我們繼續投資於客戶引導和服務能力以支持我們的成長策略，我們預計未來幾季調整後的毛利率將保持在68% 至70 % 之間。

Adjusted EBITDA for the quarter was $8.2 million, up over 50% compared to Q3 of last year. Against current quarter revenues, this represents an adjusted EBITDA margin of 18.5% up 460 basis points from the same period a year ago, and this is largely consistent with what we reported in Q2. Our end quarter results represent a 53% pass-through rate on incremental revenues.

該季度調整後 EBITDA 為 820 萬美元，比去年第三季成長超過 50%。相對於目前季度的收入，調整後的 EBITDA 利潤率為 18.5%，比去年同期增長 460 個基點，這與我們第二季度的報告基本一致。我們季末的業績代表增量收入的傳遞率為 53%。

For the quarter, we generated adjusted free cash flow of $9.5 million compared to $6.9 million in the same period a year ago. Cash flow conversion in the quarter of 116%, was higher than normal due to the timing of various cash inflows and outflows that is somewhat typical for the third quarter. While the quarterly conversion rates will fluctuate, we remain confident in our ability to convert approximately 50% of our adjusted EBITDA into free cash flow on a rolling 12-month basis.

本季度，我們產生了 950 萬美元的調整後自由現金流，而去年同期為 690 萬美元。由於各種現金流入和流出的時間安排在第三季較為典型，因此該季度的現金流轉換率為 116%，高於正常水準。雖然季度轉換率會有所波動，但我們仍然有信心能夠在 12 個月滾動的基礎上將調整後 EBITDA 的約 50% 轉換為自由現金流。

GAAP net income for the quarter was $2.7 million compared to $2.6 million in the same period last year. Against our fully diluted share count of 127.8 million shares, our current quarter net income results in a GAAP EPS of $0.02 per share. With respect to our balance sheet and capital considerations, there are a few items from the quarter to discuss.

該季度 GAAP 淨利潤為 270 萬美元，去年同期為 260 萬美元。與我們完全稀釋後的 1.278 億股股票相比，我們目前季度的淨利潤為 GAAP 每股收益 0.02 美元。關於我們的資產負債表和資本考量因素，本季有一些項目需要討論。

First, we ended the quarter with approximately $32 million in cash and cash equivalents and no outstanding debt. Second, with our partners at Bank of America, we have recently secured a revolving credit line of $100 million with an additional $50 million available contingent on certain conditions. This line was exclusively put in place to provide access to liquid capital should we identify strategic targets that could help accelerate our growth trajectory.

首先，本季結束時，我們擁有約 3,200 萬美元的現金和現金等價物，並且沒有未償債務。其次，我們與美國銀行的合作夥伴最近獲得了 1 億美元的循環信貸額度，在某些條件下還可額外獲得 5,000 萬美元的可用額度。這條線的設立專門是為了在我們確定有助於加速我們成長軌蹟的策略目標時提供流動資金。

Finally, we are pleased to say that we completed the distribution of shares to holders of our management incentive units that were connected to our 2021 IPO. The most notable impact of completing these distributions is that all tax withholding obligations related to these shares are now fully satisfied.

最後，我們很高興地說，我們已完成分配給與 2021 年 IPO 相關的管理層激勵單位持有人的股份。完成這些分配最顯著的影響是與這些股票相關的所有預扣稅義務現已完全履行。

Moving on to guidance. We are reaffirming the revised revenue and adjusted EBITDA figures that we provided in our Q2 earnings discussion. Just to confirm, that was a range of $170 million to $175 million for full year 2023 revenue in a range of $30 million to $32 million for full year 2023 adjusted EBITDA.

繼續指導。我們重申我們在第二季度收益討論中提供的修訂後的收入和調整後的 EBITDA 數據。需要確認的是，2023 年全年營收範圍為 1.7 億美元至 1.75 億美元，2023 年全年調整後 EBITDA 範圍為 3,000 萬美元至 3,200 萬美元。

With that, we'd like to open up the call to questions. Operator, please go ahead.

至此，我們想開始提問。接線員，請繼續。

(Operator Instructions). We'll take our first question from James Faucette at Morgan Stanley.

（操作員說明）。我們將回答摩根士丹利的 James Faucette 提出的第一個問題。

It's Michael Infante on for James. I wanted to ask on Portfolio WorkBench. Obviously, currently in beta expected to go GA by the end of the year. Oleg, I think you called that out as a driver of a win or 2 in the quarter. But I'm curious how you would characterize the early feedback thus far from clients and perhaps how it's priced and the potential uplift from an NDR perspective over the medium term?

邁克爾·因方特 (Michael Infante) 替補詹姆斯。我想在 Portfolio WorkBench 上詢問。顯然，目前處於測試階段，預計將在今年底正式發布。奧列格，我認為你認為這是本季贏一兩場的驅動力。但我很好奇您如何描述迄今為止來自客戶的早期回饋，以及它的定價方式以及從 NDR 角度來看中期內的潛在提升？

Thanks, Michael. Great question. So this one of the products. I just want to emphasize it again. It's not something that we went to the -- our design lab and created without consulting with our customers. Actually, it's a result of many conversations. We simply responding to what market is asking us to do, and on one hand. And on the other hand, it's a part of our deliberate and purposeful strategy to create a product offering for institutional asset managers and move our traditional portfolio that is a mix, as you know, between middle and back office offering, more toward investment decision-making as opposed to investment decision implementation part.

謝謝，麥可。很好的問題。所以這是其中一款產品。我只是想再一次強調一下。這不是我們在沒有諮詢客戶的情況下就去我們的設計實驗室創建的。事實上，這是多次交談的結果。一方面，我們只是回應市場要求我們做什麼。另一方面，這是我們深思熟慮和有目的的策略的一部分，旨在為機構資產管理公司創建產品，並將我們的傳統投資組合轉變為中後台產品的混合體，更多地轉向投資決策-與投資決策執行部分相對應的製定部分。

And so that's the strength of the product where it doesn't exist on a stand-alone basis outside of the core system, then there is another layer of integration that brings those orders into overall core. It's actually a part of the fluid Enfusion like ecosystem. And so once the decision is made, which is what Portfolio WorkBench is all about, it's been seamlessly executed within our OEMS.

這就是產品的優勢，它不會獨立存在於核心系統之外，然後還有另一層整合將這些訂單帶入整體核心。它實際上是類似液體灌輸生態系統的一部分。因此，一旦做出決定（這就是 Portfolio WorkBench 的全部內容），它將在我們的 OEM 中無縫執行。

So it's basically, again, it's a response to what market has been asking us to do and the result of multiple iterations that the product team and the technology team has performed with our clients. Naturally, it will -- we believe it will make a serious impact on our client retention capability. I mean, look, the reality of it is Enfusion is becoming as opposed to just operational support platform. It's also becoming a collaboration platform, where portfolio managers, the very people that think about how to position the portfolio, allocate capital, allocate risk, continue to interact with analysts, continue to interact with front-office teams portfolio -- excuse me, order management capabilities, traders and so on and so forth. And so that part is facilitating that collaboration, that part is facilitating that interaction and therefore, reinforces the quintessential nature of the platform and thereby translates into the high retention rates.

因此，這基本上是對市場要求我們做的事情的回應，也是產品團隊和技術團隊與客戶進行多次迭代的結果。當然，我們相信這會對我們的客戶保留能力產生嚴重影響。我的意思是，看，現實是 Enfusion 正在變得不僅僅是營運支援平台。它也正在成為一個協作平台，投資組合經理，即思考如何定位投資組合、分配資本、分配風險、繼續與分析師互動、繼續與前台團隊投資組合互動的人——對不起，命令管理能力、交易員等等。因此，這部分正在促進協作，該部分正在促進互動，因此強化了平台的本質，從而轉化為高保留率。

Maybe just on some of the strategic commentary you made, obviously, good to see the incremental credit facility, the health of your balance sheet and the free cash flow generation that you guys are having. But how are you thinking about the capacity for near-term M&A? I'm more curious about the types of assets and/or geographies that you would be interested in?

也許只是根據您所做的一些策略性評論，顯然，很高興看到增量信貸安排、資產負債表的健康狀況以及您所擁有的自由現金流的產生。但您如何看待近期併購能力？我更好奇您感興趣的資產類型和/或地理位置？

Sure. Great question. So we have -- I mentioned a couple of quarters ago, first of all, very deliberate in what we are looking at as far as our M&A targets are concerned. Our thesis of all-in-one system, fluid one -- one fluid up here in set of code, framework, workflows remains intact. Therefore, the bar for finding something where we have completely blinding the obvious value creation proposition technology stack compatibility. And of course, culture feed is pretty challenging, right?

當然。很好的問題。因此，我在幾個季度前提到過，首先，就我們的併購目標而言，我們非常謹慎。我們關於一體化系統的論文，流體一－一組程式碼、框架、工作流程中的一個流體保持不變。因此，尋找我們完全盲目的明顯價值創造主張技術堆疊相容性的東西是障礙。當然，文化提要非常具有挑戰性，對吧？

On the other hand, because of our system is so open and so flexible, it does facilitate interest in place, both in terms of scale, where we can bring something onboard that will simply accelerate our -- either accelerate our travel from a growth perspective within the core product strategy or from a scope perspective where we would position the business within areas we're simply not such as private equity markets or private credit market.

另一方面，由於我們的系統是如此開放和靈活，它確實促進了人們對地方的興趣，無論是在規模方面，我們都可以在船上帶來一些東西，這將簡單地加速我們的東西——或者從成長的角度加速我們的旅行在核心產品策略中，或從範圍的角度來看，我們將業務定位在我們根本不屬於的領域，例如私募股權市場或私人信貸市場。

But from that perspective, it's not so much geographical approach, we are global. We're looking at things, both in Europe and in U.S. Of course, in the U.S., there is plenty more to look at. But it's more related to a choice, whether it's a scale deal where we look along our vertical and see what our technology platform allows us to bring onboard. Or we look at this from a scope perspective, where we're seeing what's available from modern technology perspective that would allow us to get into areas where Enfusion is not currently represented or doesn't have capabilities to sell.

但從這個角度來看，這不僅僅是地理方法，我們是全球性的。我們正在關注歐洲和美國的情況。當然，在美國，還有很多東西值得關注。但這更與選擇相關，無論是規模交易，我們都會沿著垂直方向觀察，看看我們的技術平台允許我們帶來什麼。或者我們從範圍的角度來看待這個問題，從現代技術的角度來看，我們可以看到哪些可用的東西，這將使我們能夠進入 Enfusion 目前沒有代表或沒有銷售能力的領域。

We'll take our next question from Faith Brunner at William Blair.

我們將回答威廉·布萊爾的費思·布倫納的下一個問題。

I wanted to start on the international side. You guys are seeing strength, especially in EMEA. And I was just wondering how you're thinking about this opportunity, how you guys are thinking about allocating resources and your competitive positioning to sustain momentum in these areas.

我想從國際方面開始。你們看到了力量，尤其是在歐洲、中東和非洲地區。我只是想知道你們如何看待這個機會，你們如何考慮分配資源和競爭定位以維持這些領域的勢頭。

Well, big focus for us. Thank you for the question. I mean as you've seen for the last couple of quarters, it's been a strong driver of our growth, 29% year-on-year growth this quarter. We see a lot of opportunity there. People typically think about EMEA as one monolithic market. From our perspective, it's anything but. Every country in Europe is relatively unique in terms of go-to-market strategy, in terms of how people think about technology, how people think about buying decisions, who are the gatekeepers in the industry and so on and so forth. And so our strategy is nuanced, and I have to give credit to our both revenue team and product team thinking through those nuances and designing that go-to-market strategy to attack those markets.

嗯，這是我們的重點。感謝你的提問。我的意思是，正如您在過去幾個季度中看到的那樣，它是我們成長的強大推動力，本季同比增長 29%。我們在那裡看到了很多機會。人們通常將 EMEA 視為單一市場。從我們的角度來看，這根本不是。歐洲每個國家在進入市場策略、人們如何看待科技、如何考慮購買決策、誰是產業的看門人等等方面都相對獨特。因此，我們的策略是微妙的，我必須讚揚我們的收入團隊和產品團隊思考這些細微差別，並設計進入市場策略來攻擊這些市場。

Those markets also, from our perspective, tend to be less competitive and less crowded, more stale, slower and therefore, in some sense, ripe for disruption by companies like Enfusion. They still either relying on a lot of legacy systems, legacy infrastructure, homegrown proprietary or relying on relatively clunky, obsolete legacy providers, where people are still babysitting capabilities and spending tens of millions of dollars without significant ROI.

從我們的角度來看，這些市場往往競爭不那麼激烈，不那麼擁擠，更陳舊，速度更慢，因此，從某種意義上說，像 Enfusion 這樣的公司顛覆的時機已經成熟。他們要么仍然依賴大量遺留系統、遺留基礎設施、本土專有技術，要么依賴相對笨重、過時的遺留提供商，人們仍然在照顧能力並花費數千萬美元而沒有顯著的投資回報率。

So we're very excited about the opportunity, both Europe and Middle East, very interesting. And as you've seen, we're gaining traction in multiple countries, France, Norway, of course, we're seeing opportunities in U.K. as well. It's still a home turf. We still are obviously controlling pretty large market share around money center cities like London, and of course, outside EMEA, like Hong Kong and New York.

因此，我們對歐洲和中東的機會感到非常興奮，非常有趣。正如您所看到的，我們在法國、挪威等多個國家/地區獲得了關注，當然，我們在英國也看到了機會。這仍然是主場。顯然，我們仍然控制著倫敦等金融中心城市的相當大的市場份額，當然還有歐洲、中東和非洲地區以外的地區，如香港和紐約。

But again, our strategy is very deliberate, to rebalance portfolio mix away from those centers towards markets where we're much less represented and our competition is not as high. But also rebalanced our book of business as, if you track our performance over the last 3, 4 years, this is why the revenue is so stable. Sometimes when Asia doesn't work, U.S. picks up slack. When U.S. is slowing down, we're rebalancing towards Europe, and we will continue to do that going forward.

但同樣，我們的策略是經過深思熟慮的，將投資組合重新平衡，從這些中心轉向我們代表較少且競爭不那麼激烈的市場。但也重新平衡了我們的業務，如果你追蹤我們過去 3、4 年的業績，這就是收入如此穩定的原因。有時，當亞洲不起作用時，美國就會填補空缺。當美國經濟放緩時，我們正在向歐洲進行再平衡，並且我們將繼續這樣做。

And if I could sneak one more in here. Just a lot of strength in multi-strategy to it, you guys are a beneficiary of capital flows. So wondering how you're thinking about these fund types of clients and their overall willingness to get infrastructure up and running quickly?

如果我能再偷偷溜進來一次就好了。只要在多策略上有很大的實力，你們就是資本流動的受益者。那麼想知道您如何看待這些基金類型的客戶以及他們快速啟動和運行基礎設施的整體意願？

I'm so sorry, I did not get the first part of your question. Could you repeat that?

很抱歉，我沒有聽清楚你問題的第一部分。你能再說一次嗎？

Just as you're continuing to see strength in multi-strategy, asset managers, so and so, how are you thinking about lines and their willingness to kind of adopt broader solutions.

正如您繼續看到多策略、資產管理公司等方面的優勢一樣，您如何看待線路以及他們採用更廣泛解決方案的意願。

I got it. So that's an interesting one because the multi-strategy, multi-manager businesses, to some extent, actually represent a challenge for us because they have very custom blends of different things. And actually, to the extent that they're competing for talent, oftentimes, it's nearly impossible for them to impose specific system requirements and people that are coming in with people coming in with a team that has some kind of history with another system, some kind of a preconceived notion how they like their workflows to be organized. And so the platform has to be dynamic and flexible enough to absorb the team without necessarily imposing those technical workflow constraints.

我得到了它。這是一個有趣的問題，因為多策略、多經理業務在某種程度上實際上對我們來說是一個挑戰，因為它們對不同的事物進行了非常客製化的混合。實際上，就他們爭奪人才而言，通常情況下，他們幾乎不可能強加特定的系統要求和人員，而這些人員來自一個與另一個系統有某種歷史的團隊，有些人他們喜歡如何組織工作流程，這是一種先入為主的觀念。因此，平台必須足夠動態和靈活，以吸收團隊，而不必強加這些技術工作流程限制。

On the other hand, precisely because they captured such enormous economies of scale they have virtually unlimited technology budget, and therefore, their ability to run a lot of proprietary things to satisfy -- to develop and run a lot of proprietary things to satisfy their firm-wide requirements is also much higher. And so the cost pressures are, in some sense, a secondary there. From my perspective, it's much more driven by what makes sense for the business.

另一方面，正是因為他們獲得瞭如此巨大的規模經濟，他們幾乎擁有無限的技術預算，因此，他們有能力運行許多專有的東西來滿足——開發和運行許多專有的東西來滿足他們的公司範圍要求也高很多。因此，從某種意義上說，成本壓力是次要的。從我的角度來看，它更多是由對業務有意義的因素所驅動的。

On the other hand, those firms have become big magnets for talent and therefore, they actually are pressing down on the number of launches naturally. SPMs who are looking to launch, they make a choice, whether they go into loan and they launch a fund or they go on a platform like one of those multi-manager platforms, and they just get a seat and get capital allocated and just begin trading. And so from that perspective, we have a pretty strong nucleus of clients like that.

另一方面，這些公司已經成為人才的巨大磁石，因此，他們實際上自然而然地壓低了產品發布的數量。想要推出的 SPM，他們會做出選擇，是申請貸款並推出基金，還是進入像多經理平台這樣的平台，然後他們只需獲得席位並獲得資本分配，然後就可以開始貿易。因此從這個角度來看，我們擁有相當強大的客戶核心。

But in some sense, this is not a market where we see unlimited growth. What is interesting, though, when you see some recent announcements on the subject, more traditional fully integrated asset managers typically start competing with those and actually allocate capital internally. And this is where we come in. This is we -- our blend of multiple capabilities, middle, back, and front office actually matters because those guys care about costs and they care about scale, and they actually start coming in into those markets with much more palatable cost structure that makes more sense for investors.

但從某種意義上說，這並不是一個我們看到無限成長的市場。但有趣的是，當你看到最近關於這個主題的一些公告時，更傳統的完全整合的資產管理公司通常開始與這些公司競爭，並實際上在內部分配資本。這就是我們的切入點。這就是我們——我們的多種能力、中台、後台和前台的融合實際上很重要，因為這些人關心成本，他們關心規模，他們實際上開始進入這些市場更容易接受的成本結構對投資人來說更有意義。

We'll move next to Alexei Gogolev at JPMorgan.

我們將接替摩根大通的阿列克謝‧戈戈列夫 (Alexei Gogolev)。

This is Elyse Kanner on for Alexei Gogolev. So my question was talking about your average onboarding period kind of how you plan to reduce this to better compete with other players in the space.

我是艾莉絲‧坎納 (Elyse Kanner)，為阿列克謝‧戈戈列夫 (Alexei Gogolev) 發言。所以我的問題是談論您的平均入職週期，以及您計劃如何縮短這一周期，以便更好地與該領域的其他玩家競爭。

Yes, big area of focus for us. We think about that part is not just cost structure part or pulling revenue forward part, but also as a competitive advantage. Typically all onboarding framework and onboarding cycle is much shorter than that of our competitors in that space, specifically legacy providers that have on-prem installs. And so even if you mentioned capabilities, we typically win business precisely because our onboarding is much more reliable and much shorter than that of our competition.

是的，我們關注的重點領域很大。我們認為這部分不僅是成本結構部分或拉動收入的部分，也是一種競爭優勢。通常，所有入職框架和入職週期都比該領域的競爭對手短得多，特別是具有本地安裝的傳統提供者。因此，即使您提到了能力，我們通常也能贏得業務，因為我們的入職培訓比競爭對手更可靠、更短。

And in terms of leveraging that, there's only one way to do it. You design the organization the right way and you build technology capabilities around that so that your team is much more effective and efficient. So that's what drives the cost down. This would enhance the velocity of the process.

就利用這一點而言，只有一種方法可以做到這一點。您以正確的方式設計組織，並圍繞該方式建立技術能力，以便您的團隊更加有效和高效。這就是降低成本的原因。這將提高該過程的速度。

And then real quick on EBITDA margin. So I know your guidance remained the same. I was wondering if 20% plus EBITDA margins are sustainable for the next 2 years and where you see the trajectory of margins going perhaps back to 40% from there?

然後 EBITDA 利潤率也很快。所以我知道你的指導保持不變。我想知道未來 2 年 20% 以上的 EBITDA 利潤率是否可持續，您認為利潤率的軌跡可能會從那裡回到 40%？

This is Brad. I'll take that question. We've talked about expanding margins. It's also why we mentioned -- I mentioned the pass-through rates when we talk about incremental revenue as how much of that is flowing through EBITDA. So we've targeted a 45%, 55% pass-through rate. So what that translates into certainly is margin expansion. So we've targeted exiting this year around 20%, and we certainly see those numbers not only sustainable but also show the ability to expand those margins, both in the near term and in the long term. We're not setting necessarily targets to say when we'll get to 30%, 40% margins from an outlook perspective, but we certainly have the ability to take where we'll exit this year and expand those further into 2024.

這是布拉德.我來回答這個問題。我們已經討論過擴大利潤率。這也是為什麼我們提到——當我們談論增量收入時，我提到了傳遞率，即其中有多少是透過 EBITDA 流動的。所以我們的目標是 45%、55% 的通過率。因此，這肯定意味著利潤率的擴大。因此，我們今年的目標是退出 20% 左右，我們當然認為這些數字不僅是可持續的，而且還表明有能力在短期和長期內擴大這些利潤。從前景的角度來看，我們不一定會設定利潤率何時達到 30%、40% 的目標，但我們當然有能力抓住今年退出的目標，並將其進一步擴大到 2024 年。

Our next question comes from Parker Lane at Stifel.

我們的下一個問題來自 Stifel 的 Parker Lane。

Nice to see the reiterated guide and the improvement in NDR quarter-over-quarter. Brad, curious as we head into the fourth quarter here and into 2024, what are your expectations around the trend line of NDR? Do you think we get back to the levels we were at last year, you talked about quality of the pipeline improving and maybe some stabilization out there. Just curious where we should expect that to go.

很高興看到重申的指南以及 NDR 季度環比的改善。 Brad，當我們進入第四季和 2024 年時，您很好奇，您對 NDR 趨勢線的期望是什麼？您認為我們會回到去年的水平嗎？您談到了管道品質的改善以及可能的穩定性。只是好奇我們應該期待它會走向何方。

It's a great question. We spend a lot of time looking at it. Just like you, I was very pleased to see that NDR trajectory turn in the quarter to start kind of flipping the other direction. We posted the 107 number when you exclude -- we targeted that number getting back at least to a 110. I think reality is, it's probably a number that stabilizes in the 110 to 115 rate over time. When it gets there is going to be an interesting question. I certainly I'm appreciative to see the trend going in the right direction. I think it's probably going to hover around these levels for the next maybe a quarter or 2, but I do think that 110, 115 number is a sustainable target once we get past that.

這是一個很好的問題。我們花了很多時間看它。就像您一樣，我很高興看到 NDR 軌跡在本季開始轉向另一個方向。當您排除時，我們發布了 107 數字 - 我們的目標是該數字至少回到 110。我認為現實是，隨著時間的推移，這個數字可能會穩定在 110 到 115 之間。當它出現時，將會出現一個有趣的問題。我當然很高興看到趨勢朝著正確的方向發展。我認為在接下來的一個季度或兩個季度內，它可能會徘徊在這些水平附近，但我確實認為，一旦我們超過這個數字，110、115 的數字就是一個可持續的目標。

Parker, Oleg here. Thank you for the question. I just want to pile on Brad's comments. So another thing is important to think about is we try as hard as we possibly can to control what we can control. And you're absolutely right. Big driver here is that we -- again, I have to give credit to our revenue organization and client services organization about this maniacal focus on disciplined execution of the sales, making sure we understand the clients' problems. We -- our solutions engineering team involved during the early stages, client services team involved -- gets involved in early stages and therefore, not just the velocity -- back to the previous question by Alexei, not just the velocity of our onboarding is higher, but the quality is higher. And therefore, we continue to reignite this virtuous cycle of creating happy clients, and therefore, retention is higher.

帕克，奧列格在這裡。感謝你的提問。我只想補充一下布拉德的評論。因此，要考慮的另一件事很重要，那就是我們盡可能努力控制我們所能控制的事情。你是完全正確的。這裡的主要推動力是我們——再次，我必須讚揚我們的收入組織和客戶服務組織對銷售的嚴格執行的瘋狂關注，確保我們了解客戶的問題。我們——我們的解決方案工程團隊參與了早期階段，客戶服務團隊參與了——參與了早期階段，因此，不僅僅是速度——回到了阿列克謝之前的問題，不僅僅是我們的入職速度更高，但品質更高。因此，我們繼續重新點燃這個創造快樂客戶的良性循環，因此，保留率更高。

We'll go next to Crispin Love at Piper Sandler.

接下來我們將前往 Piper Sandler 的 Crispin Love。

Just first on revenue growth, which is decelerated recently and just a challenging landscape here. Curious on your views for near to intermediate trends, and if you think that growth may have bottomed in the third quarter and could begin to inflect higher in approach and perhaps surpass 20% in 2024, just given your comments about optimism for the future here.

首先是營收成長，最近營收成長放緩，而且這裡的情況充滿挑戰。我很好奇您對近中期趨勢的看法，如果您認為成長可能已在第三季觸底，並可能開始走高，並可能在 2024 年超過 20%，請在此給出您對未來的樂觀看法。

Thank you for the question. So we're pretty constructive. I mean, we think that the bottom is probably -- we've seen this. Again, we don't have a crystal ball. I don't know what the macro environment is going to look like in '24. What gives me comfort personally is our ability to peel it, as you know, you can grow or sustain this growth rates through multiple sources. And we all know that the asset management industry at large, right, is going to grow in single digits.

感謝你的提問。所以我們很有建設性。我的意思是，我們認為底部可能是——我們已經看到了這一點。再說一遍，我們沒有水晶球。我不知道24年的宏觀環境會是什麼樣子。就我個人而言，讓我感到安慰的是我們剝離它的能力，如您所知，您可以透過多種來源來成長或維持這種成長率。我們都知道，整個資產管理產業將以個位數成長。

And maybe at best is going to be anywhere between 4% to 5% depending on the segment. So how do you grow at 20% plus so you can do it 2 ways. You can either create very aggressive market share capture, which is precisely where our focus today, which is also precisely where Enfusion's sort of what I would call downside convexity has been when macro headwinds are strong, we always rebalanced and took business away from competition, thereby sustaining the growth and actually captured market share when the market is really good again. Assets are flowing and the returns are high. Funds are launched. We are back to our hyper growth stage again. And so this is sort of our tactical solution number #1.

根據細分市場的不同，最多可能會達到 4% 到 5% 之間。那麼如何實現 20% 以上的成長呢？有兩種方法。你可以創造非常積極的市場份額佔領，這正是我們今天的重點，這也正是當宏觀逆風強勁時，Enfusion 的那種我所說的下行凸性，我們總是重新平衡並從競爭中奪取業務，從而在市場再次真正好轉時維持成長並真正佔領市場份額。資產流動，報酬高。基金啟動。我們再次回到高速成長階段。這就是我們的戰術解決方案#1。

Tactical solution #2 could potentially be an M&A strategy. But again, as I said before, we are very careful and surgical about that aspect of growth. At the end of the day, it also is about profitability from our perspective as much as it is about growth. I understand your question is about top line. But what we are trying to do is balance both top line and bottom line and oftentimes, as you know, those 2 are connected.

戰術解決方案#2 可能是併購策略。但正如我之前所說，我們對成長的這方面非常謹慎和謹慎。歸根究底，從我們的角度來看，這不僅關係到成長，也關係到獲利能力。我知道你的問題是關於頂線的。但我們試圖做的是平衡營收和利潤，正如你所知，這兩者通常是相互關聯的。

This is Brad. Let me just add. A little bit of ways of the way we look at our growth algorithm. If you think of -- even if we bottomed out here and caught the mid-teens, from a kind of market share and macro level growth rate, which I will kind of chime in, is still substantially better than our competition because of our share grabs.

這是布拉德.讓我補充一下。我們看待增長演算法的一些方式。如果你想一想，即使我們觸底反彈，從市場份額和宏觀層面的成長率來看，我會插話，由於我們的份額，仍然比我們的競爭對手好得多抓住。

So start off with mid-teens, you pick up another 300 to 500 basis points out of NDR because we've mentioned we're running a little bit lower on NDR than we would have historically. And then tack on another 300 to 500 basis points for additional product capabilities and additional market opportunities that we're expanding with things like portfolio workbench with things like credit, with things like new geographies we're going to go into. You compile those numbers, you can easily get back into this 20% sustainable growth rate. So that's kind of the way we dissect it and the way we look at it.

因此，從十幾歲左右開始，您將從 NDR 中再獲得 300 到 500 個基點，因為我們已經提到過，我們的 NDR 比歷史上的水平要低一些。然後再增加 300 到 500 個基點，以獲得額外的產品功能和額外的市場機會，我們正在透過投資組合工作台、信貸等事物以及我們將要進入的新地區等事物來擴展這些機會。匯總這些數字後，您可以輕鬆恢復 20% 的可持續成長率。這就是我們剖析和看待它的方式。

I definitely appreciate the color there and just balancing the top and bottom line. Second question for me is just can you give an update on net incremental seat license trends at current clients, are they positive but slowing here? Just curious what you're seeing in the current environment and the drivers there.

我非常欣賞那裡的顏色以及平衡頂線和底線。我的第二個問題是，您能否提供有關當前客戶的淨增量席位許可趨勢的最新信息，這些趨勢是否積極但正在放緩？只是好奇您在當前環境中看到了什麼以及那裡的驅動程式。

Yes, this is Brad. I'll take that one, too. So this is kind of supporting my commentary about a little bit of a trend shift we've seen in that net organic growth. So we actually are starting to see, a term we use called upsells, where our existing clients are adding seats at a faster pace than they are declining seats. Over the last couple of quarters, when we saw those reductions in NDR, we saw that trajectory flip a little bit as most of our customers were resetting their cost base.

是的，這是布拉德。我也拿那個吧因此，這在某種程度上支持了我對我們在淨有機成長中看到的一點趨勢轉變的評論。因此，我們實際上開始看到，我們使用一個稱為追加銷售的術語，即我們現有客戶增加席位的速度比減少席位的速度更快。在過去的幾個季度中，當我們看到 NDR 的減少時，我們看到軌跡發生了一點轉變，因為我們的大多數客戶都在重置其成本基礎。

We are starting to see on a net basis, that organic growth number is turning substantially more positive than it has in the last couple of quarters. So they're not necessarily massive increases in seat counts, but we certainly are seeing, as clients are expanding their own fund capabilities, they are picking up seats at a much faster pace than they are declining seats. So that's a nice trend that we saw and it's representative in that NDR number picking up 100 basis points.

我們開始看到，在淨值基礎上，有機成長數字比過去幾季大幅成長。因此，席位數量不一定會大幅增加，但我們確實看到，隨著客戶擴大自己的基金能力，他們增加席位的速度比減少席位的速度要快得多。因此，這是我們看到的一個很好的趨勢，NDR 數字上升了 100 個基點，具有代表性。

We'll move next to Gabriela Borges at Goldman Sachs.

我們將搬到高盛的加布里埃拉·博爾赫斯旁邊。

This is Callie Valenti on for Gabriela. I wanted to start on kind of how you feel about your current investment levels and what kind of macro signals would lead you to increase investments potentially? Or are you just comfortable with your current investment level in a world where macro increases, and you feel like you can take advantage of that opportunity?

我是加布里埃拉的卡莉·瓦倫蒂。我想先了解一下您對當前投資水準的看法，以及什麼樣的宏觀訊號會導致您增加潛在的投資？或者，在宏觀經濟成長的世界中，您對當前的投資水準感到滿意，並且您覺得可以利用這個機會嗎？

That's a great question, Callie. So it kind of hinges back to Oleg's comment a minute ago about balancing top line growth and profitability. We always have a list of investments that we feel like we could prioritize should the economic environments present the opportunities. The good thing about the growth rates that we're able to put out is, it allows us to make not only sustaining the investments we make, but it does allow us to make incremental growth -- incremental investments in our P&L both flowing through OpEx and as well as CapEx because as you'll note some of our investment flows through is CAP software.

這是一個很好的問題，卡莉。因此，這有點回到奧列格一分鐘前關於平衡營收成長和獲利能力的評論。我們總是有一份投資清單，我們認為如果經濟環境有提供機會，我們可以優先考慮這些投資。我們能夠實現的成長率的好處是，它不僅使我們能夠維持我們所做的投資，而且確實使我們能夠實現增量成長——損益表中的增量投資都流經營運支出以及資本支出，因為您會注意到我們的一些投資流程是透過CAP 軟體進行的。

So we do plan, in fact, as we're building out our plan for 2024. We still have meaningful investments that we are targeting to make in 2024 based on the growth trajectories we're seeing in the macro environment. So those 2 things, to your point, are very intertwined. And we pay very close attention to them. And candidly, if the economic environments accelerate, that allows us the opportunity to make even more investments. So they work pretty close in tandem.

事實上，我們確實在製定 2024 年計畫。根據我們在宏觀環境中看到的成長軌跡，我們仍然有目標在 2024 年進行有意義的投資。因此，就您而言，這兩件事是非常交織在一起的。我們非常密切地關注他們。坦白說，如果經濟環境加速發展，我們就有機會進行更多投資。所以他們的工作非常緊密。

And Callie, I just want to echo what Brad said and also make another point, which is -- the good news for us is that we still have a lot of white space in front of us to make investments that actually are here clear and present, not like a lot of people follow this hype with AI and machine learning and kind of having a lot of solutions out there in search of problems, so to speak.

凱莉，我只是想回應布拉德所說的，並提出另一點，這對我們來說是個好消息，我們面前仍然有很多空白空間可以進行實際上清晰且現實的投資，不像很多人追隨人工智慧和機器學習的炒作，可以這麼說，有很多解決方案來尋找問題。

We have very specific targeted product road map, again, credit to our engineering team and product team thinking through it in a very disciplined and careful way, where we, again, will listen to the market, and therefore, those investments that we're making, have very high ROI. So it's not just about making investments in our mind. It's looking for investments with highest potential return on equity. And you can look at our return on equity. As you know, it's north of 30%. And this is what we are thinking about every time we deploy dollar. We think about what we're going to get back. And again, like I said, the good news for us at this point in time is not what to do with capital. It's -- there is a lot of clear and present product opportunities that would help us capture both growth and market share.

我們有非常具體的目標產品路線圖，這要歸功於我們的工程團隊和產品團隊以非常嚴格和仔細的方式進行思考，我們將再次傾聽市場的聲音，因此，我們正在進行的那些投資製作，具有非常高的投資報酬率。因此，這不僅僅是在我們的頭腦中進行投資。它正在尋找潛在股本回報率最高的投資。你可以看看我們的股本報酬率。如您所知，該比例超過 30%。這就是我們每次部署美元時所思考的問題。我們思考我們要拿回什麼。再說一遍，就像我說的，目前對我們來說的好消息不是如何處理資本。有許多明確且現有的產品機會可以幫助我們獲得成長和市場份額。

That makes sense. And then second one from me, quick is, just wanted to hear anything about kind of how you're thinking of the Portfolio WorkBench pricing and how that compares to your other modules.

這就說得通了。我的第二個問題是，我只是想聽聽您對 Portfolio WorkBench 定價的看法以及它與其他模組相比如何。

I think -- we still -- here's an interesting conundrum. So Portfolio WorkBench is not something that we sell separately, right? As you know, we don't have pricing package where we sell an order management system separately from PMS, from accounting NGL capability and Portfolio WorkBench is something that is just part of the overall platform right now. Going forward, we are working on different bundles, if you will, that will allow us to sort of maximize commercial relationship with our clients. Right now, Portfolio WorkBench is in this sort of -- it's a green shoot of our overall product strategy, and we will think through how to optimize that entire package.

我認為——我們仍然——這是一個有趣的難題。所以 Portfolio WorkBench 不是我們單獨銷售的東西，對吧？如您所知，我們沒有獨立於 PMS、會計 NGL 功能和 Portfolio WorkBench 單獨銷售訂單管理系統的定價包，而 Portfolio WorkBench 目前只是整個平台的一部分。展望未來，如果您願意的話，我們正在開發不同的捆綁包，這將使我們能夠最大限度地提高與客戶的商業關係。目前，Portfolio WorkBench 正處於這樣的階段——它是我們整體產品策略的萌芽，我們將思考如何優化整個產品包。

So the point is we're not thinking about product Portfolio WorkBench as a stand-alone product that we're pricing. But we are definitely, definitely thinking about -- number one, how it works as overall -- in the context of the overall package that our clients to buy and also how that pricing will be driven as a function of what the Portfolio WorkBench is going to work in conjunction with. Because remember, at this point in time, it's just a tool, it's just an environment. It's just a framework, right? It still has to be if you will, parameterized and enriched by benchmark data by risk model data, by market data.

因此，重點是我們並沒有將產品組合工作台視為我們定價的獨立產品。但我們絕對、絕對在考慮——第一，它的整體運作方式——在我們的客戶購買的整體套餐的背景下，以及如何根據投資組合工作台的發展來驅動定價配合工作。因為請記住，在這個時候，它只是一個工具，它只是一個環境。這只是一個框架，對吧？如果你願意的話，它仍然必須是，透過基準數據、風險模型數據和市場數據進行參數化和豐富。

And those partnerships, in turn, they drive the pricing structure of the product. And so there's a lot of dimensions here. And rest assured, Brad and his team are hard at work and talking to our revenue team, thinking about how to capture that the best possible way.

這些合作關係反過來又推動了產品的定價結構。所以這裡有很多維度。請放心，布拉德和他的團隊正在努力工作，並與我們的收入團隊交談，思考如何以最佳方式捕捉這一點。

We'll take our next question from Koji Ikeda at Bank of America.

我們將接受美國銀行 Koji Ikeda 的下一個問題。

This is Natalie Howe on for Koji. On ACV, so on an absolute basis, it grew this quarter more than it did last quarter, which is good to see, but overall, the past few quarters, the growth rate has been decelerating a bit. Do you see that potentially stabilizing or holding in the upcoming quarters? And what could help drive growth there?

我是娜塔莉·豪 (Natalie Howe) 為 Koji 配音。就 ACV 而言，從絕對值來看，本季的成長高於上季度，這是一件好事，但總體而言，過去幾季的成長率有所放緩。您認為未來幾季這種情況可能會穩定或保持不變嗎？什麼可以幫助推動那裡的成長？

Well, it's a natural, again, extension of our strategy. We're just landing bigger clients, longer contracts, bigger tickets, and we expect this trend to continue. Again, we play very well in lower market segments in very low market segment, just for clarity, we don't conform to price-driven competition. We still compete and capabilities, not on price. But we keep seeing a lot of interesting opportunities in this higher ACV space.

嗯，這又是我們策略的自然延伸。我們剛剛獲得了更大的客戶、更長的合約、更大的門票，我們預計這種趨勢將持續下去。再說一次，我們在非常低的細分市場中表現非常好，只是為了清楚起見，我們不符合價格驅動的競爭。我們競爭的仍然是能力，而不是價格。但我們在這個更高的 ACV 領域不斷看到很多有趣的機會。

And so our overall ability to lend clients $300,000, $400,000, $500,000, $600,000 type range, is much stronger than it's been before, and we have an interesting opportunities in pipeline that is already in 7-digit type territory. And so as we move slowly, as I said, Enfusion is a business in transition this is precisely where that transition is happening. So as we move towards that segment, you will see more and more of that.

因此，我們向客戶提供 300,000 美元、400,000 美元、500,000 美元、600,000 美元類型範圍貸款的整體能力比以前要強得多，並且我們在已經處於 7 位數類型領域的管道中擁有有趣的機會。因此，正如我所說，當我們緩慢前進時，Enfusion 是一家正在轉型的企業，而這正是轉型正在發生的地方。因此，當我們邁向這一領域時，您會看到越來越多的情況。

Natalie, I will add, you might see some quarterly fluctuations in that growth rate, just depending on when clients are onboarded. So on a quarterly basis, you can see some bouncing around. I would push you to probably steer a little bit more towards looking at it kind of on a year-over-year basis, you'll get a better number.

娜塔莉，我要補充一點，您可能會看到成長率出現一些季度波動，這僅取決於客戶加入的時間。因此，按季度計算，您可以看到一些波動。我會敦促你更多地關注它，逐年進行比較，你會得到更好的數字。

That does conclude today's question-and-answer session and today's conference call. We thank you for your participation. You may now disconnect.

今天的問答環節和電話會議到此結束。我們感謝您的參與。您現在可以斷開連線。