Exponent Inc (EXPO) 2023 Q2 法說會逐字稿

Good day, and welcome to the Exponent's Second Quarter Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 Exponent 第二季度收益電話會議。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Joni Konstantelos with Investor Relations. Please go ahead.

我現在想將會議交給投資者關係部的喬尼·康斯坦特洛斯 (Joni Konstantelos)。請繼續。

Thank you. Good afternoon, ladies and gentlemen. Thank you for joining us on Exponent's Second Quarter 2023 Financial Results Conference Call. Please note that this call will simultaneously webcast on the Investor Relations section of the company's corporate website at www.exponent.com/investors. This conference call is the property of Exponent, and any taping or other reproduction is expressly prohibited without prior written consent.

謝謝。女士們、先生們，下午好。感謝您參加 Exponent 2023 年第二季度財務業績電話會議。請注意，本次電話會議將同時在公司網站 www.exponent.com/investors 的投資者關係部分進行網絡直播。本次電話會議屬於 Exponent 的財產，未經事先書面同意，明確禁止任何錄音或其他復制。

Joining me on the call today are Dr. Catherine Corrigan, President and Chief Executive Officer; and Rich Schlenker, Executive Vice President and Chief Financial Officer.

今天與我一起參加電話會議的還有總裁兼首席執行官凱瑟琳·科里根 (Catherine Corrigan) 博士；以及執行副總裁兼首席財務官 Rich Schlenker。

Before we start, I would like to remind you that the following discussion contains forward-looking statements, including, but not limited to, Exponent's market opportunities and future financial results that involve risks and uncertainties that may cause actual results to differ materially from those discussed here.

在我們開始之前，我想提醒您，以下討論包含前瞻性陳述，包括但不限於 Exponent 的市場機會和未來財務業績，其中涉及風險和不確定性，可能導致實際結果與所討論的結果存在重大差異這裡。

Additional information that could cause actual results to differ from forward-looking statements can be found in Exponent's periodic SEC filings, including those factors discussed under the caption Risk Factor in Exponent's most recent Form 10-Q. The forward-looking statements and risks in this conference call are based on current expectations as of today, and Exponent assumes no obligation to update or revise them, whether as a result of new developments or otherwise.

可能導致實際結果與前瞻性陳述不同的其他信息可以在 Exponent 定期向 SEC 提交的文件中找到，包括 Exponent 最新 10-Q 表格中“風險因素”標題下討論的那些因素。本次電話會議中的前瞻性陳述和風險基於截至今天的當前預期，Exponent 不承擔更新或修改它們的義務，無論是由於新的發展還是其他原因。

And now I will turn the call over to Dr. Catherine Corrigan, Chief Executive Officer. Catherine?

現在我將把電話轉給首席執行官凱瑟琳·科里根博士。凱瑟琳？

Thank you, Joni, and thank you, everyone, for joining us today. I will start off by reviewing our second quarter 2023 business performance. Rich will then provide a more detailed review of our financial results and outlook, and we will then open the call for questions.

謝謝喬尼，也謝謝大家今天加入我們。我首先回顧一下我們 2023 年第二季度的業務表現。然後，里奇將對我們的財務業績和前景進行更詳細的審查，然後我們將開始提問。

We delivered solid second quarter results, growing net revenues by 10% and expanding earnings per diluted share. We continue to demonstrate the strength of our diverse and ever-evolving services portfolio, which anticipates and adapts to our clients' critical needs throughout their product life cycles.

我們第二季度業績強勁，淨收入增長 10%，攤薄後每股收益擴大。我們繼續展示我們多樣化且不斷發展的服務組合的實力，該組合可以預測並適應客戶在整個產品生命週期中的關鍵需求。

Growth in the quarter was driven by robust demand for our reactive offerings. The proactive side saw increased demand in the chemicals and life sciences sectors, offset by some moderation in the electronics sector. Overall, our strategic mix of capabilities across industries and the product life cycle performed well despite specific headwinds that I will discuss in a moment.

本季度的增長是由對我們的反應性產品的強勁需求推動的。積極主動的一面是化學品和生命科學行業的需求增加，但被電子行業的一些放緩所抵消。總體而言，儘管存在我稍後將討論的具體阻力，但我們跨行業和產品生命週期的戰略能力組合表現良好。

Turning to our engagements in more detail. Within our reactive services, we saw strong increased demand for our disputes and litigation-related work, with particular strength in the transportation, construction and consumer product sectors.

更詳細地討論我們的約定。在我們的反應性服務中，我們看到對爭議和訴訟相關工作的需求強勁增長，尤其是在運輸、建築和消費品領域。

On the automotive side, we are fielding more and more questions about the design and performance of advanced driver assistance and battery systems in accident scenarios, as these technologies become more complex and more prevalent in the fleet and the decisions made by artificial intelligence algorithms are challenged. We also saw increased product safety and recall-related engagements, as clients leveraged our expert insights to understand the root cause of issues with their products.

在汽車方面，我們正在處理越來越多關於事故場景中高級駕駛輔助和電池系統的設計和性能的問題，因為這些技術變得越來越複雜，在車隊中越來越普遍，人工智能算法做出的決策受到挑戰。我們還看到產品安全和召回相關的參與度有所增加，因為客戶利用我們的專家見解來了解其產品問題的根本原因。

The proactive side benefited from increased demand in the chemicals and life science sectors, driven in large part by regulatory engagements. This was offset by some moderation in the electronics industry associated with the timing of client product releases coupled with the disruption caused by the actions the industry has taken to reduce staff. These factors impacted data gathering activities and human subject research as well as product development consulting, as products moved through their life cycles out of the development stage and into the refinement stage.

積極主動的一面受益於化學品和生命科學行業需求的增加，這在很大程度上是由監管活動推動的。這被電子行業的一些放緩所抵消，該行業與客戶產品發佈時間相關，加上該行業採取的裁員行動造成的干擾。隨著產品從開發階段進入完善階段，這些因素影響了數據收集活動、人類課題研究以及產品開發諮詢。

While we expect these trends within electronics to persist over the next few quarters, we are optimistic about the longer-term opportunities in this sector. We are well positioned given the increasing role of artificial intelligence in product innovation and performance, with our capabilities in curating data to drive AI algorithms as well as our experience analyzing the physical consequences of AI-driven decisions.

雖然我們預計電子產品領域的這些趨勢將在未來幾個季度持續存在，但我們對該行業的長期機遇持樂觀態度。鑑於人工智能在產品創新和性能中的作用日益增強，我們擁有整理數據以驅動人工智能算法的能力以及分析人工智能驅動決策的物理後果的經驗，因此我們處於有利地位。

Our diverse portfolio of proactive offerings positions us well to capitalize on the complexities associated with next-generation designs and increasing expectations around safety, health and the environment. Improved retention as well as our accelerated recruiting efforts over the last year drove a 15% increase in headcount year-over-year, which reflects the strength of our employee value proposition. While these investments in our talent are critical for our future growth, we remain diligently focused on aligning our resources with the growth of the business and future opportunities. Rich will share some additional color on our expected head count growth in a few moments.

我們多樣化的主動產品組合使我們能夠很好地利用與下一代設計相關的複雜性以及對安全、健康和環境日益增長的期望。去年，保留率的提高以及我們加速招聘的努力推動員工人數同比增加了 15%，這反映了我們員工價值主張的優勢。雖然這些對人才的投資對於我們未來的增長至關重要，但我們仍然致力於將我們的資源與業務的增長和未來的機會相結合。 Rich 將在稍後分享一些有關我們預期員工人數增長的更多信息。

Turning to our segments. Exponent's engineering and other scientific segment represented 83% of our net revenues in the second quarter, increasing 10% in the second quarter and 11% in the first half compared to the prior year. Growth in the quarter was driven by strong demand for Exponent services across the transportation and construction sectors.

轉向我們的細分市場。 Exponent 的工程和其他科學部門佔第二季度淨收入的 83%，與去年同期相比，第二季度增長了 10%，上半年增長了 11%。本季度的增長是由運輸和建築行業對 Exponent 服務的強勁需求推動的。

Exponent's environmental and health segment represented 17% of the company's net revenues in the second quarter. Net revenues in this segment increased 10% in the quarter and 4% in the first half compared to the prior year. Growth was driven by regulatory consulting around the impacts of chemicals on human health and the environment as well as activity in the life sciences sector.

Exponent 的環境和健康部門占公司第二季度淨收入的 17%。與去年同期相比，該部門的淨收入本季度增長了 10%，上半年增長了 4%。增長是由圍繞化學品對人類健康和環境影響的監管諮詢以及生命科學領域的活動推動的。

As we move into the back half of the year, we remain focused on strengthening our client relationships, managing resources in line with the growth of the business and meeting the dynamic needs of our clients. Overall, I am pleased to see the power of our diverse portfolio, delivering solid growth through economic cycles as we address our clients' most complex challenges.

進入下半年，我們仍然專注於加強客戶關係、根據業務增長管理資源並滿足客戶的動態需求。總的來說，我很高興看到我們多樣化的投資組合的力量，在我們解決客戶最複雜的挑戰的同時，在整個經濟周期中實現了穩健的增長。

I'll now turn the call over to Rich to provide more detail on our second quarter results as well as discuss our outlook for the third quarter and the full year 2023.

我現在將把電話轉給 Rich，提供有關我們第二季度業績的更多詳細信息，並討論我們對第三季度和 2023 年全年的展望。

Thank you, Catherine, and good afternoon, everyone. Let me start by saying all comparisons will be on a year-over-year basis unless otherwise noted. For the second quarter of 2023, total revenues increased 7.6% to $140.2 million. And revenue before reimbursements, or net revenues, as I will refer to them from here on, increased 9.7% to $129.7 million as compared to the same period of 2022.

謝謝凱瑟琳，大家下午好。首先我要說的是，除非另有說明，所有比較都將按年進行。 2023 年第二季度，總收入增長 7.6%，達到 1.402 億美元。與 2022 年同期相比，報銷前收入或淨收入（我將從這裡開始提及）增長了 9.7%，達到 1.297 億美元。

Net income for the second quarter was $25.7 million or $0.50 per diluted share as compared to $25.8 million or $0.49 per diluted share in the prior year period. The realized tax benefit associated with accounting for share-based awards was immaterial in the second quarters of 2023 and 2022. Exponent's consolidated tax rate was 29% in the second quarter as compared to 27.3% for the same period of 2022.

第二季度淨利潤為 2570 萬美元，即稀釋後每股收益 0.50 美元，而去年同期淨利潤為 2580 萬美元，即稀釋後每股收益 0.49 美元。 2023 年和 2022 年第二季度與股票獎勵會計相關的已實現稅收優惠並不重要。Exponent 第二季度的綜合稅率為 29%，而 2022 年同期為 27.3%。

EBITDA for the second quarter decreased less than 1% to $36.8 million, producing a margin of 28.4% of net revenues as compared to $37.1 million, which was a margin of 31.4% in the same period of 2022. The year-over-year step down in margins was anticipated as expenses normalize post-pandemic.

第二季度 EBITDA 下降不到 1%，至 3680 萬美元，淨收入利潤率為 28.4%，而 2022 年同期為 3710 萬美元，淨收入利潤率為 31.4%。隨著大流行後費用正常化，預計利潤率會下降。

Billable hours in the second quarter were approximately 388,000, an increase of 4.4% year-over-year. The average technical full-time equivalent employees in the second quarter were 1,077, which is an increase of 15% as compared to 1 year ago. This exceeded our expectations as recruiting has been very successful and retention has improved.

第二季度的計費小時數約為388,000小時，同比增長4.4%。第二季度平均技術全職等效員工為1,077人，比一年前增加15%。這超出了我們的預期，因為招聘非常成功，而且保留率也有所提高。

Utilization in the quarter was 69%, down from 77% in the same period of 2022. While we expected utilization to decline from the elevated level it was in the second quarter of last year, our higher-than-anticipated head count resulted in lower utilization in the quarter. As Catherine mentioned, we are diligently focused on strategically balancing our resources with the growth of the business and our pursuit of future opportunities.

本季度的利用率為 69%，低於 2022 年同期的 77%。雖然我們預計利用率將從去年第二季度的較高水平下降，但我們的員工數量高於預期，導致利用率下降。本季度的利用率。正如凱瑟琳提到的，我們致力於在戰略上平衡我們的資源與業務的增長以及我們對未來機會的追求。

The realized rate increase was approximately 5.3% for the second quarter as compared to the same period a year ago. The second -- in the second quarter, after adjusting for gains and losses in deferred compensation expense, compensation expense increased 12.6%. Included in total compensation expense is a deferred compensation gain of $4.1 million as compared to a loss of $11.3 million in the same period of 2022. This is a $15.4 million swing. As a reminder, gains and losses in deferred compensation are offset in miscellaneous income and have no impact on the bottom line.

第二季度實現利率較去年同期增長約5.3%。第二——第二季度，在調整遞延補償費用損益後，補償費用增長了12.6%。薪酬總額中包括 410 萬美元的遞延薪酬收益，而 2022 年同期的虧損為 1,130 萬美元。這是 1,540 萬美元的波動。需要提醒的是，遞延薪酬的損益在雜項收入中抵消，對淨利潤沒有影響。

Stock-based compensation expense in the second quarter was $5.2 million, as compared to $4.6 million in the prior year period. Other operating expenses in the second quarter were up 17.7% to $10.3 million, driven primarily by increased employee activity at our offices. Included in other operating expenses is depreciation and amortization expense of $2.2 million for the second quarter.

第二季度的股票薪酬支出為 520 萬美元，而上年同期為 460 萬美元。第二季度的其他運營支出增長 17.7%，達到 1,030 萬美元，這主要是由於我們辦公室員工活動的增加。第二季度的其他運營費用包括 220 萬美元的折舊和攤銷費用。

G&A expenses were up 15.6% to $6.6 million for the second quarter. The increase in G&A expenses was primarily due to increased travel as employees return to in-person engagement with clients and professional development. Interest income increased to $1.6 million for the second quarter, driven by an increase in interest rates.

第二季度一般管理費用增長 15.6%，達到 660 萬美元。一般及行政費用的增加主要是由於員工重返與客戶面對面接觸和職業發展導致差旅增加。在利率上升的推動下，第二季度利息收入增至 160 萬美元。

Miscellaneous income, excluding the deferred compensation gain, was approximately $700,000 in the second quarter. During the quarter, capital expenditures were $5.4 million, and we distributed $13.2 million to shareholders through dividend payments. We ended the second quarter with $148.2 million in cash and cash equivalents.

第二季度的雜項收入（不包括遞延薪酬收益）約為 700,000 美元。本季度，資本支出為 540 萬美元，我們通過股息支付向股東分配了 1,320 萬美元。第二季度結束時，我們擁有 1.482 億美元的現金和現金等價物。

Turning to our outlook. Our full year 2023 outlook is unchanged. For the third quarter 2023, as compared to 1 year prior, we expect revenues before reimbursements to grow in the high single to low double digits and EBITDA margin to be 27.5% to 28.5% of revenues before reimbursements. For the full year 2023 as compared to 1 year prior, we are maintaining our guidance and expect revenues before reimbursements to grow in the high single to low double digits and EBITDA margin to be 28% to 28.5% of revenues before reimbursements.

轉向我們的展望。我們對 2023 年全年的展望保持不變。與一年前相比，2023 年第三季度，我們預計報銷前收入將以高個位數到低兩位數增長，EBITDA 利潤率為報銷前收入的 27.5% 至 28.5%。與 1 年前相比，我們維持 2023 年全年指引，預計報銷前收入將以高個位數到低兩位數增長，EBITDA 利潤率為報銷前收入的 28% 至 28.5%。

As mentioned, we remain focused on strategically aligning our head count with the growth of the business. These actions include reducing hiring and increasing performance management. As a result, in each of the next 2 quarters, we expect technical full-time equivalent employees to decline sequentially 2% to 3%.

如前所述，我們仍然專注於在戰略上使我們的員工數量與業務增長保持一致。這些行動包括減少招聘和加強績效管理。因此，在接下來的 2 個季度中，我們預計全職技術員工數量將環比下降 2% 至 3%。

Over the next quarter or 2, our hiring will be surgical in nature to address areas of high utilization and strategic growth. we have also increased performance management, which will increase turnover. Performance management is ongoing in our firm as we evaluate each employee's career trajectory towards determining if they are on a path of principal or if their career skills are better aligned with a career in industry, government or academia. Performance management tends to be less when resources are constrained and turnover is high, such as in 2021 and 2022.

在接下來的一兩個季度，我們的招聘本質上將是外科手術，以解決高利用率和戰略增長的領域。我們還加強了績效管理，這將增加營業額。我們公司正在進行績效管理，因為我們評估每位員工的職業軌跡，以確定他們是否走上校長之路，或者他們的職業技能是否與行業、政府或學術界的職業更好地契合。當資源有限且人員流動率較高時（例如 2021 年和 2022 年），績效管理往往會減少。

We expect utilization in the third quarter to be 68% to 70% as compared to 73% in the same quarter last year. Utilization in the third quarter will continue to be tempered by increased head count as well as seasonally higher vacation and holiday time during the summer months. Our expectations for full year utilization is 69% to 70% as compared to 73.8% in 2022.

我們預計第三季度的利用率將為 68% 至 70%，而去年同期為 73%。第三季度的利用率將繼續受到員工人數增加以及夏季假期和假日時間季節性增加的影響。我們預計全年利用率為 69% 至 70%，而 2022 年為 73.8%。

We still believe our long-term target of sustained mid-70s utilization is achievable as we continue to strategically manage head count and balance utilization based on market demand. We expect the 2023 year-over-year realized rate increase to be 4.75% to 5.5%. For the remaining quarters, we expect stock-based compensation to be $4.8 million to $5.2 million. For the full year 2023, we expect stock-based compensation to be $22 million to $22.8 million.

我們仍然相信，隨著我們繼續根據市場需求對員工數量和平衡利用率進行戰略性管理，我們持續 70 年代中期利用率的長期目標是可以實現的。我們預計 2023 年實現同比增長率為 4.75% 至 5.5%。對於剩下的幾個季度，我們預計股票薪酬將為 480 萬美元至 520 萬美元。 2023 年全年，我們預計股票薪酬將為 2200 萬美元至 2280 萬美元。

For the third quarter, we expect other operating expenses to be $10.7 million to $11 million. For the full year, we expect other operating expenses to be $41.7 million to $42 million, as in-office activities continue to pick up. G&A expenses are increasing as post-pandemic travel increases for business and professional development. For the third quarter of 2023, we expect G&A expenses to be $7.3 million to $7.7 million. For the full year, we expect G&A expenses to be $26.7 million to $27.2 million.

對於第三季度，我們預計其他運營費用為 1070 萬美元至 1100 萬美元。隨著辦公室活動繼續增加，我們預計全年其他運營支出將為 4170 萬美元至 4200 萬美元。隨著大流行後商務和專業發展旅行的增加，一般管理費用也在增加。我們預計 2023 年第三季度的一般管理費用為 730 萬美元至 770 萬美元。我們預計全年一般管理費用為 2670 萬美元至 2720 萬美元。

We expect interest income to be approximately $1.8 million per quarter for the remaining quarters of 2023. In addition, we expect miscellaneous income to be approximately $750,000 per quarter. For the remainder of 2023, we do not anticipate any additional tax benefit associated with share-based awards. So the year-over-year tax benefit associated with share-based awards will be $2.4 million, less than it was in 2022, which is $0.05 per diluted share impact to EPS.

我們預計 2023 年剩餘季度的利息收入約為每季度 180 萬美元。此外，我們預計雜項收入約為每季度 75 萬美元。在 2023 年剩餘時間內，我們預計不會有任何與股票獎勵相關的額外稅收優惠。因此，與股票獎勵相關的同比稅收優惠將為 240 萬美元，低於 2022 年，每股攤薄後每股收益對每股收益的影響為 0.05 美元。

For 2023, we expect our tax rate, exclusive of the tax benefit for share-based awards, to be approximately 28.5% as compared to 27.0% in 2022. For the third quarter of 2023, we expect our tax rate to be approximately 29% as compared to 27% in the same quarter a year ago. For the full year 2023, the tax rate inclusive of the tax benefit for share-based awards, is expected to be 26.1% as compared to 22.6% in 2022.

2023 年，我們預計我們的稅率（不包括股票獎勵的稅收優惠）約為 28.5%，而 2022 年為 27.0%。2023 年第三季度，我們預計我們的稅率約為 29%相比之下，去年同期為27%。 2023 年全年，包含股票獎勵稅收優惠的稅率預計為 26.1%，而 2022 年為 22.6%。

In closing, our second quarter results continue to underscore the strength of our business model and financial position. As we look to the back half of the year, we remain positioned to continue our profitable growth. I will now turn the call back to Catherine for closing remarks.

最後，我們第二季度的業績繼續凸顯了我們業務模式和財務狀況的實力。展望今年下半年，我們仍將繼續實現盈利增長。現在我將把電話轉回給凱瑟琳，讓她發表結束語。

Thank you, Rich. Exponent continues to advance science and engineering to empower our clients with solutions to their most critical challenges. We are uniquely positioned to advise them as they navigate the complexity of society's increasing expectations around safety, health and the environment. Supported by the strength of our world-class team and our ever-evolving services portfolio, we remain confident in our ability to drive profitability and shareholder value over the long term.

謝謝你，里奇。 Exponent 不斷推進科學和工程的發展，為我們的客戶提供應對最關鍵挑戰的解決方案。我們處於獨特的地位，可以在他們應對社會對安全、健康和環境日益增長的期望的複雜性時為他們提供建議。在我們世界一流團隊的實力和不斷發展的服務組合的支持下，我們對長期提高盈利能力和股東價值的能力充滿信心。

Operator, we are now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions) Our first question comes from Josh Chan from UBS.

（操作員說明）我們的第一個問題來自瑞銀集團的 Josh Chan。

I guess maybe I can start with a 2-parter question on demand. So I guess, first, on the reactive side, it seems like that business is growing above what it normally grows at. And you -- Catherine, you brought out some points on what's driving that. But I guess, do you feel like that above normal growth is sustainable going forward?

我想也許我可以根據需要從一個由兩人組成的問題開始。所以我想，首先，在被動方面，業務的增長似乎超出了正常的增長速度。而你——凱瑟琳，你提出了一些關於推動這一趨勢的觀點。但我想，您認為未來高於正常水平的增長是可持續的嗎？

And then, secondly, on the proactive side. It's hard to tell whether that business maybe decelerated a little bit in Q2. It sounds like it might have, but if there's a way you can kind of ballpark for us how broad-based the choppiness has been, that would be really helpful.

其次，在主動方面。很難判斷第二季度該業務是否會略有放緩。聽起來可能有，但如果有一種方法可以讓我們大致了解波動的範圍，那將非常有幫助。

Yes. Thanks, Josh. So first on the reactive side. Look, I mean, we see the increasing complexity that is coming around products as a real driver of that reactive work. I did give the example around Advanced Driver Assistance Systems.

是的。謝謝，喬什。首先是反應性方面。聽著，我的意思是，我們看到產品周圍日益增加的複雜性是被動工作的真正驅動力。我確實舉了有關高級駕駛輔助系統的例子。

As artificial intelligence is incorporated even more into products and making those decisions, it could be an automated vehicle. It could be a wearable device that's giving signals about human health, it could be an AR or VR or mixed reality device that's making decisions as well, whether that's around employee training or various things.

隨著人工智能更多地融入產品並做出這些決策，它可能會成為一種自動駕駛汽車。它可以是發出有關人類健康信號的可穿戴設備，也可以是 AR 或 VR 或混合現實設備，也可以做出決策，無論是圍繞員工培訓還是各種事情。

And so we are positioning ourselves at the forefront of those questions through our research and through the professional development of our teams. And so we don't think this is necessarily a blip in our -- in the growth in our reactive work. We think that portfolio has very, very strong market drivers. That, in addition to the opportunities for expansion internationally around disputes, changes in the landscape in the EU around product recalls and those frameworks. And so we really are optimistic about the growth potential for that side of the portfolio.

因此，通過我們的研究和團隊的專業發展，我們將自己定位在這些問題的最前沿。因此，我們認為這不一定是我們被動工作增長中的一個短暫現象。我們認為該投資組合具有非常非常強大的市場驅動力。除了圍繞爭端進行國際擴張的機會之外，歐盟圍繞產品召回和這些框架的格局也發生了變化。因此，我們對投資組合這方面的增長潛力確實感到樂觀。

On the proactive side, we did talk about some of the moderation that's happened. We've got strength in a number of areas. Growth around the regulatory side and agricultural chemicals, for example, growth on the far side in life sciences. But the electronics industry, that is a place where there is some moderation.

在積極主動的方面，我們確實討論了一些已經發生的緩和措施。我們在很多領域都有實力。圍繞監管方面和農用化學品的增長，例如，生命科學領域的遠端增長。但電子行業是一個需要適度的地方。

And a couple of factors that are weighing into that. There was some disruption caused by the layoffs that impacted the flow of work in electronics layoffs in the industry. This is groups that are having to reconfigure and stabilize. That takes a couple of quarters to sort of work its way through. We're seeing signs of that stabilizing, that workflow starting to come back through.

有幾個因素會影響這一點。裁員造成了一些干擾，影響了該行業電子產品裁員的工作流程。這些群體必須重新配置和穩定。這需要幾個季度的時間才能完成。我們看到了穩定的跡象，工作流程開始恢復。

But some of our, like our data collection work, our human subject work, these are impacted in the near term by the product life cycle. It's where our clients are in that product life cycle. There can be a big push in the development phase and a big product launch and then that goes into the refinement phase and it can ebb and flow because of that. We see these clients also managing their budgets a little more tightly, which isn't surprising.

但我們的一些工作，比如我們的數據收集工作、人類受試者工作，這些工作在短期內會受到產品生命週期的影響。這是我們的客戶在產品生命週期中所處的階段。在開發階段可能會有很大的推動力和大型產品發布，然後進入細化階段，並且因此可能會出現潮起潮落。我們發現這些客戶也更加嚴格地管理預算，這並不奇怪。

So we're seeing -- we're expecting that over the next couple of quarters. We saw it in Q2, and probably we'll see it over a couple more quarters. But long term, this focus that society has on the quality of the data that's driving and training AI algorithms and the quality of the decisions it's making and the competitive landscape in that industry, that all makes us feel good in the long term about these kinds of offerings that we have. And of course, we'll continue to evolve those offerings to really capture what we think is a good long-term opportunity.

所以我們看到——我們預計在接下來的幾個季度裡會出現這種情況。我們在第二季度看到了這一點，也許我們還會在接下來的幾個季度看到這一點。但從長遠來看，社會對驅動和訓練人工智能算法的數據質量、決策質量以及該行業的競爭格局的關注，從長遠來看，這一切都讓我們對這些類型感覺良好我們擁有的產品。當然，我們將繼續發展這些產品，以真正抓住我們認為良好的長期機會。

That's a really good color there. I appreciate that. And then I guess like my second question on margins this quarter. Just conceptually, it seems like utilization ticked down from Q1 going to Q2, but somehow you were able to deliver stronger margins this quarter. So could you talk about what's driving that kind of sequential margin improvement even though you didn't have the utilization help there?

那裡的顏色真的很好。我很感激。然後我想就像我本季度關於利潤率的第二個問題一樣。從概念上講，利用率似乎從第一季度到第二季度有所下降，但不知何故，您本季度能夠提供更高的利潤率。那麼，您能否談談是什麼推動了這種連續利潤率的提高，即使您在那裡沒有利用率幫助？

Yes. So the margin improvement there is coming from the balance on the compensation line. So we do tend to have a higher compensation costs in the first quarter on a stock basis. So in the first quarter, that was about $7.5 million -- really about $7 million in the first quarter where you had about $5.2 million in stock-based compensation in the second quarter. And that's all around the timing of when we issue our grants and the accounting for those that pushes through.

是的。因此，利潤率的提高來自於補償線的平衡。因此，我們確實傾向於在第一季度以股票為基礎的補償成本更高。因此，在第一季度，這一數字約為 750 萬美元——實際上，第一季度約為 700 萬美元，而第二季度的股票薪酬約為 520 萬美元。這一切都圍繞著我們發放贈款的時間以及對那些通過的贈款的會計處理。

In addition to that, a lot of our hiring has been very much at the entry level. So when you balance that with where the rates are on bill rates versus the change in the compensation area, you get the benefit of that also pushing through.

除此之外，我們的很多招聘都是入門級的。因此，當您平衡賬單費率與補償範圍的變化之間的關係時，您也會從中受益。

Okay. And then I guess, lastly, how are you seeing the impacts between revenue per billable hour growth and wage inflation? I think you gave some color on what you expect for revenue per billable hour for the year, but just wondering how you're thinking about that balance.

好的。最後，我想您如何看待每計費小時收入增長與工資通脹之間的影響？我認為您對今年每計費小時收入的預期給出了一些顏色，但只是想知道您如何考慮這種平衡。

Yes. So on a per consultant basis, what we've seen, or a per dollar basis there, we haven't -- we've seen our rate increase on -- even though we gave pretty substantial raises to our existing staff effective April 1, and all those raises were there and in place in the second quarter, that was blended down to basically a flat to 1% sort of rate increase that we saw across because of the mix of employees that we had coming in. So the mix of employees that we had generated a flat to slightly up wage increase at the same time, that mix generated approximately 5.3% increase in the billing rates.

是的。因此，從我們所看到的每名顧問的角度來看，或者從每美元的角度來看，我們還沒有——我們已經看到了我們的加薪——儘管我們從4 月1 日起對現有員工進行了相當大的加薪。 ，所有這些加薪都在第二季度到位，由於我們進來的員工的混合，我們看到的加薪基本上是持平到 1%。員工們表示，我們同時實現了工資持平或略有上漲，這種組合使計費率增加了約5.3%。

The next question comes from Tobey Sommer from Truist.

下一個問題來自 Truist 的 Tobey Sommer。

I wanted to follow up on the sort of the broad head count in revenue and expense growth. Are you comfortable with this amount of head count growth and the near-term demand picture so that you can continue to maintain a bottom line growth rate sort of in excess of your revenue growth?

我想跟進收入和支出增長的總體人數。您對這樣的員工數量增長和近期需求狀況是否滿意，以便您能夠繼續保持超過收入增長的底線增長率？

Yes. Thanks, Tobey. So look, we are looking to slow that head count growth. There are -- to make sure that we're aligning that with the near-term and longer-term demand and the opportunities that we're seeing. There are 2 -- really 2 prongs to that approach, right? I mean we've got the recruiting side. So we've got a number of areas of the many areas in the business.

是的。謝謝，托比。所以看，我們正在尋求減緩員工數量的增長。有 - 確保我們將其與近期和長期需求以及我們看到的機會保持一致。這種方法有兩個——實際上有兩個方面，對吧？我的意思是我們有招聘方面。因此，我們在業務的許多領域中都有一些領域。

In fact, most of them are growing and strong, right? And so we need to be recruiting in those areas. And we're very focused on surgically recruiting strategically to make sure when our resources are constrained that we can meet the market and meet that demand. So for example, the reactive side of the business and like that advanced driver assistance area, right? This is a place where we want to be recruiting to capture that. But the other side of managing that head count and working to bring that down is through performance management. Rich mentioned a little bit about this.

事實上，他們中的大多數都在成長和強壯，對嗎？因此，我們需要在這些領域進行招聘。我們非常注重戰略性的外科手術式招聘，以確保當我們的資源有限時，我們能夠滿足市場和需求。例如，業務的反應性方面以及高級駕駛員輔助領域，對吧？我們希望在這個地方招募人才來抓住這一點。但管理員工數量並努力降低員工數量的另一方面是通過績效管理。 Rich 提到過一些關於這一點的內容。

We're always looking for that best talent, right? That's what we're all about. We have this rigorous process of acquiring them, a paradigm that puts them on a growth path from day 1. But making it all the way to principal at Exponent, as a consultant, it's hard. It's not for everyone. And so many employees can reach a point in their career where there are better opportunities for them elsewhere, right? And so we can counsel them about that. And that's what our performance management process is all about. So as Rich said, sequentially bringing that head count down by 2% to 3% per quarter over the next couple of quarters is what we're doing in order to bring those 2 things back into balance again.

我們一直在尋找最優秀的人才，對嗎？這就是我們的目的。我們有嚴格的流程來獲取他們，這是一種從第一天起就讓他們走上成長之路的範式。但要一路成為 Exponent 的負責人，作為一名顧問，這是很困難的。它並不適合所有人。許多員工在職業生涯中達到某個階段時，在其他地方可以找到更好的機會，對嗎？所以我們可以就此向他們提供建議。這就是我們績效管理流程的意義所在。因此，正如 Rich 所說，我們正在做的就是在接下來的幾個季度中每季度將員工人數依次減少 2% 到 3%，以便使這兩件事再次恢復平衡。

I appreciate that. Could you speak to artificial intelligence and all its forms and what you think it means internally for your company, how you engage with your customers and ultimately, how it may impact demand for your services?

我很感激。您能否談談人工智能及其所有形式，以及您認為它對您的公司內部意味著什麼，您如何與客戶互動，以及最終它如何影響您的服務需求？

Yes. Yes. I mean there are -- we are engaged and have been engaged sort of across the life cycle of artificial intelligence algorithm. So you start with the data that you feed into them in order to create them, right, the training data sets. It's very important to make sure that those have the right diversity demographics. The curation of those data sets is an important part of that first step. We talked to clients about that.

是的。是的。我的意思是，我們一直在參與人工智能算法的整個生命週期。因此，您從輸入其中的數據開始，以創建訓練數據集。確保這些人擁有正確的多元化人口統計數據非常重要。這些數據集的管理是第一步的重要組成部分。我們與客戶討論了這一點。

We talk about the sort of ontologies that are used and the cleaning of the data because real-world data are messy, right? We all know that. And Exponent has a history of being able to take real-world data and gain insights from that because of our subject matter expertise, right? So the theme, Tobey, when we're talking to clients is really about this is where AI meets the laws of physics, right?

我們討論所使用的本體類型和數據清理，因為現實世界的數據很混亂，對吧？我們都知道。由於我們的主題專業知識，Exponent 有著能夠獲取真實世界數據並從中獲得見解的歷史，對嗎？所以托比，當我們與客戶交談時，主題實際上是人工智能符合物理定律的地方，對吧？

Exponent has a long history of applying their understanding of the laws of physics to understand the consequences of all kinds of different decisions, and that design decisions for products, decisions around the management of assets for a utility, whatever the case may be. And so it's that combination of the data you're using to drive the algorithm, the fit -- the laws of physics that you are applying to make it real and then the decision that is coming out the other end. And we have opportunities at every stage of that process because of the foundation we've laid in working around the product life cycle for many, many years.

Exponent 長期以來一直致力於應用他們對物理定律的理解來理解各種不同決策的後果，以及產品的設計決策、圍繞公用事業資產管理的決策，無論是什麼情況。因此，它是您用來驅動算法的數據的組合，您所應用的物理定律使其成為現實，然後是從另一端出來的決定。由於多年來我們在產品生命週期方面的工作奠定了基礎，因此我們在該流程的每個階段都有機會。

And so the key is where it meets the laws of physics, where it meets human behavior and our ability to cross industries with that, with those assessments, I think is an incredible value proposition. That positions us really well to capture growth there.

因此，關鍵是它在哪裡符合物理定律，在哪裡符合人類行為以及我們跨行業的能力，通過這些評估，我認為這是一個令人難以置信的價值主張。這使我們能夠很好地抓住那裡的增長。

And so as Catherine had said earlier, where we've already done this work and are gaining top recognition in the marketplace by key players over the last even year or 2 is in the automated vehicle or really actually in the ADAS systems, the subsystems within those vehicles. You don't need to be fully autonomous to have a breaking decision or a steering decision or those other things.

正如 Catherine 之前所說，我們已經完成了這項工作，並且在過去的一兩年裡，在自動駕駛汽車或 ADAS 系統、子系統中獲得了主要參與者在市場上的高度認可。那些車輛。你不需要完全自主地做出重大決定、轉向決定或其他事情。

It's been in the risk models and decision models that utilities out here on the West Coast are doing to make a decision about the resiliency of their system or particular lines in making a decision, at what wind speed or what environment to make a decision, and do that. And to have that happen real time as the weather is changing, as those inputs are coming in, and have that model built in an engineering basis so that you can rely upon those decisions you're doing or over into what we're seeing our clients develop in their health applications, in wearable technologies, where they want their customers to ultimately be able to rely upon the feedback coming from that wearable device to understand when they really need to seek medical attention and do such.

西海岸的公用事業公司一直在風險模型和決策模型中做出決定，以決定其係統或特定線路在做出決策時的彈性，在什麼風速或什麼環境下做出決策，以及去做。隨著天氣的變化，隨著這些輸入的到來，這種情況會實時發生，並在工程基礎上構建該模型，以便您可以依賴您正在做的決策或我們所看到的決策客戶在可穿戴技術的健康應用中進行開發，他們希望客戶最終能夠依靠來自可穿戴設備的反饋來了解他們何時真正需要尋求醫療護理並這樣做。

And then finally, as we're moving into the AR and VR area, clients who want to have a true real-world experience and deal with the safety and reliability and quality of those experiences are wanting to make sure that they're utilizing curated data to have those experiences. So those are examples of what we've already done. I think the future is quite significant for us going forward.

最後，當我們進入 AR 和 VR 領域時，想要獲得真正的現實世界體驗並處理這些體驗的安全性、可靠性和質量的客戶希望確保他們正在利用精心策劃的數據來獲得這些體驗。這些是我們已經做過的事情的例子。我認為未來對於我們的前進來說非常重要。

If I could sneak a last one in. Could you update us on the large contract exposure or opportunity should there not be kind of classically defined large contracts? And my question comes in the context of having observed all the news around legacy telco cables with lead, which, at least found in stock markets, are assuming represents pretty significant liabilities and exposures for those firms.

如果我能偷偷溜進最後一份。如果沒有某種經典定義的大型合同，您能否向我們介紹大型合同風險或機會的最新情況？我的問題是在觀察了有關含鉛傳統電信電纜的所有新聞的背景下提出的，至少在股票市場上發現，這些電纜被認為代表了這些公司相當大的負債和風險敞口。

Yes. I think -- so we have not had a single project recently that is of that 4% to 5% of revenues. We've had collections of different areas, some of that in this data collection area that accumulate up near there, but not in a single engagement around it. But you are right, in the history, our history, a few of those projects that have achieved that 4% or 5% of revenues have been around health exposures and environmental contaminants.

是的。我認為——所以我們最近沒有一個項目佔收入的 4% 到 5%。我們已經收集了不同區域的數據，其中一些數據收集區域中的數據聚集在附近，但不是在圍繞它的單一參與中。但你是對的，在歷史上，在我們的歷史上，有一些項目實現了 4% 或 5% 的收入，這些項目都是圍繞健康暴露和環境污染物進行的。

If you recall back in the mid-20-teens here, we had our work for BP related to the Deepwater Horizon fit in that, and such. So issues, we've not -- we haven't had a project of this size, but we've done a lot of work over the past 2 decades related to asbestos and talc and other exposures there. So we have some of the leading experts in environmental and health exposure and the consequences of that. And we'll see where the -- this issue for industry goes.

如果您還記得 20 多歲的時候，我們為 BP 所做的與深水地平線相關的工作就屬於這一類。所以，問題是，我們沒有——我們沒有這麼大規模的項目，但我們在過去 20 年裡做了很多與石棉、滑石粉和其他暴露相關的工作。我們有一些在環境和健康暴露及其後果方面的領先專家。我們將看看這個行業問題的走向。

This concludes our question-and-answer session. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節到此結束。會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。