Franklin Covey Co (FC) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Second Quarter 2023 Franklin Covey Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Derek Hatch, Corporate Controller.

美好的一天，謝謝你的支持。歡迎參加 2023 年第二季度富蘭克林柯維收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給今天的發言人，公司財務總監 Derek Hatch。

Thank you. Good afternoon, everyone. On behalf of Franklin Covey, I want to welcome you to our earnings call for the second quarter of fiscal 2023 and want to hope that your family -- your families are enjoying some nice warm, wet spring weather as on today as well.

謝謝。大家下午好。我代表富蘭克林柯維歡迎您參加我們 2023 財年第二季度的財報電話會議，並希望您的家人——您的家人也像今天一樣享受溫暖潮濕的春季天氣。

Before we begin, we'd like to remind everybody that this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management's current expectations and are subject to various risks and uncertainties, including, but not limited to, the ability of the company to stabilize and grow revenues, the acceptance of and renewal rates of our subscription offerings, including the All Access Pass and Leader in Me memberships, the duration and recovery from the COVID-19 pandemic.

在我們開始之前，我們想提醒大家，本演示文稿包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。前瞻性陳述基於管理層當前的預期，並受到各種風險和不確定性的影響，包括但不限於公司穩定和增加收入的能力、我們訂閱產品的接受度和續訂率，包括 All Access Pass 和 Leader in Me 會員資格、COVID-19 的持續時間和恢復大流行。

The ability of the company to hire productive sales professionals, general economic conditions, competition in the company's targeted marketplace, market acceptance of new offerings or services and marketing strategies, changes in the company's market share, changes in the size of the overall market for the company's product, changes in the marketing and the training and spending policies of the company's clients and other factors identified and discussed in the company's most recent annual report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.

公司聘請生產性銷售專業人員的能力、總體經濟狀況、公司目標市場的競爭、市場對新產品或服務和營銷策略的接受度、公司市場份額的變化、整體市場規模的變化公司的產品、市場營銷的變化以及公司客戶的培訓和支出政策以及公司最近向美國證券交易委員會提交的 10-K 表格年度報告和其他定期報告中確定和討論的其他因素。

Many of these conditions are beyond our control or influence, any one of which may cause future results to differ materially from the company's current expectations. And there can be no assurance that the company's actual future performance will meet management's expectations. These forward-looking statements are based upon management's current expectations. We undertake no obligation to update or revise these forward-looking statements to reflect events or circumstances after the date of today's presentation, except as required by law.

其中許多情況超出了我們的控製或影響範圍，其中任何一種情況都可能導致未來結果與公司當前的預期存在重大差異。並且無法保證公司未來的實際業績將達到管理層的預期。這些前瞻性陳述基於管理層當前的預期。除非法律要求，否則我們不承擔更新或修改這些前瞻性陳述以反映今天發布日期之後發生的事件或情況的義務。

With that out of the way, we'd like to turn the time over to Mr. Paul Walker, our Executive Officer. Paul?

有了這個，我們想把時間交給我們的執行官 Paul Walker 先生。保羅？

Thank you, Derek. Hello, everyone. Thanks for joining us today. I do hope you're doing well. I'm joined here today by Steve Young, our CFO; Jen Colosimo, President of our Enterprise Division; Sean Covey, President of our Education Division and several members of our executive team. We're happy to have Colleen Dom here, our Head of Operations as well. We're also happy to have Bob Whitman, our Executive Chairman with us also.

謝謝你，德里克。大家好。感謝您今天加入我們。我希望你過得很好。今天，我們的首席財務官 Steve Young 也來到了這裡。我們企業部總裁 Jen Colosimo； Sean Covey，我們教育部門的總裁和我們執行團隊的幾名成員。我們很高興有 Colleen Dom 在這裡，她也是我們的運營主管。我們也很高興我們的執行主席 Bob Whitman 也和我們在一起。

In the midst of an increasingly uncertain economic environment, we're pleased to report that our second quarter revenue was $61.8 million or 9% higher than prior year. In constant currency, our second quarter revenue grew approximately 11% to $62.7 million, even after lower-than-anticipated sales in China, and the decrease in rental income, which combined made up an additional $1.1 million of impact. We're also pleased to report that adjusted EBITDA for the fourth quarter was $8.2 million. In constant currency, adjusted EBITDA for the quarter was $8.4 million and would have been even higher if not for China and the absence of the rental income.

在日益不確定的經濟環境中，我們很高興地報告，我們第二季度的收入為 6180 萬美元，比去年同期增長 9%。按固定匯率計算，我們第二季度的收入增長了約 11%，達到 6,270 萬美元，即使在中國的銷售額低於預期以及租金收入減少後，這兩者合計又增加了 110 萬美元的影響。我們也很高興地報告，第四季度調整後的 EBITDA 為 820 萬美元。按固定匯率計算，本季度調整後的 EBITDA 為 840 萬美元，如果沒有中國和沒有租金收入，該數字會更高。

The current economic environment obviously continues to be a challenging one for both companies and investors. Everyone is hiking in deeper snow now than they were even 90 days ago. Based on the strength of the quarter and year-to-date results and our confidence in the strength of our pipelines, even in this environment, we're pleased to be able to reiterate our full year adjusted EBITDA guidance in constant currency of between $47 million and $49 million. As to revenue compared to our estimate at the beginning of the year of $294 million, we expect revenue to be impacted by approximately $3.5 million due to FX, an additional $2.5 million because of slower-than-expected recovery of sales in China and Japan and by an additional $4 million to reflect the expected impact of the deeper snow through which our clients are now hiking.

當前的經濟環境顯然對公司和投資者來說仍然是一個充滿挑戰的環境。現在每個人都在比 90 天前更深的雪中徒步旅行。基於本季度和年初至今的業績以及我們對我們管道實力的信心，即使在這種環境下，我們很高興能夠重申我們全年調整後的 EBITDA 指導，以固定匯率計算在 47 美元之間億美元和 4900 萬美元。至於收入，與我們年初估計的 2.94 億美元相比，我們預計收入將受到大約 350 萬美元的影響，因為外匯，另外 250 萬美元是由於中國和日本的銷售復甦慢於預期，以及額外增加 400 萬美元，以反映我們的客戶現在徒步穿越的更深積雪的預期影響。

Importantly, as you know, Franklin Covey's strategy, business model and approach were really developed and refined with times like these in mind. Specifically, 5 key elements of Franklin Covey's strategy and business model were each designed on one hand to allow us to take advantage of opportunities, the kinds of opportunities we continue to see, and on the other hand, to build in resilience and to enable us to achieve strong growth in revenue, adjusted EBITDA and cash flow even in challenging economic circumstances.

重要的是，正如您所知，富蘭克林柯維的戰略、商業模式和方法確實是在這樣的時代發展和完善的。具體來說，富蘭克林柯維的戰略和商業模式的 5 個關鍵要素的設計，一方面是為了讓我們能夠利用機會，我們不斷看到的各種機會，另一方面，是為了建立彈性並使我們能夠即使在充滿挑戰的經濟環境下，也能實現收入、調整後的 EBITDA 和現金流的強勁增長。

The individual and collective strength of these 5 strategic elements, which you can see shown on Slide 4, is being reflected in our second quarter year-to-date and latest 12-month results. These 5 elements of our strategy and business model as follows: the first is that we've chosen to help clients -- the types of challenges we've chosen to help clients address are mission critical and extremely durable. As you know, we help organizations and schools achieve the kinds of results that require the collective action of significant numbers of people.

您可以在幻燈片 4 中看到這 5 個戰略要素的個人和集體力量，反映在我們今年第二季度和最近 12 個月的業績中。我們的戰略和業務模型的這 5 個要素如下：首先是我們選擇幫助客戶——我們選擇幫助客戶應對的挑戰類型是任務關鍵型且極其持久的。如您所知，我們幫助組織和學校取得需要大量人員集體行動的成果。

These kinds of challenges are mission-critical and extremely durable and they don't become less important or easier when the external environment becomes more difficult. In fact, quite the opposite. As a result, a number of what are now among our largest client relationships were first established during and immediately after the great financial crisis. A key metric, which shows both potential clients ongoing desire to address these challenges and their trust in selecting us as their partner is our ability to win new clients or new logos in both good and more challenging times.

這些類型的挑戰對任務至關重要且極其持久，並且當外部環境變得更加困難時，它們不會變得不那麼重要或變得容易。事實上，恰恰相反。因此，我們現在最大的客戶關係中有許多是在金融危機期間和之後立即建立的。一個關鍵指標顯示了潛在客戶持續希望應對這些挑戰以及他們選擇我們作為他們的合作夥伴的信任是我們在良好和更具挑戰性的時期贏得新客戶或新徽標的能力。

We're pleased that our contracted new logo revenue in the second quarter year-to-date and for the latest 12 months, has remained very strong. A second key element of our strategic strength is the effectiveness of our solutions in helping clients address these challenges. This builds tremendous client commitment and loyalty, which in turn results in achieving strong growth in subscription and subscription services revenue, having a significant percent of clients to enter into multiyear contracts achieving strong levels of contracted revenue and high levels of revenue retention and having clients purchase significant amounts of services to help them achieve their objectives.

我們很高興我們在今年第二季度和最近 12 個月的合同新標識收入仍然非常強勁。我們戰略優勢的第二個關鍵要素是我們的解決方案在幫助客戶應對這些挑戰方面的有效性。這建立了巨大的客戶承諾和忠誠度，進而導致訂閱和訂閱服務收入實現強勁增長，有很大比例的客戶簽訂多年合同，實現高水平的合同收入和高水平的收入保留，並讓客戶購買大量的服務來幫助他們實現他們的目標。

We're pleased that even in the current economic environment, all 4 of these metrics remained strong in the second quarter, year-to-date and the latest 12-month period. First, subscription revenue remained very strong in the second quarter year-to-date and for the latest 12 months. As shown in Slide 6, total company subscription and subscription services revenue grew 15% in the second quarter, has grown 18% year-to-date and 22% for the latest 12 months.

我們很高興，即使在當前的經濟環境下，所有這 4 個指標在第二季度、年初至今和最近 12 個月期間都保持強勁。首先，今年第二季度和最近 12 個月的訂閱收入仍然非常強勁。如幻燈片 6 所示，公司訂閱和訂閱服務總收入在第二季度增長了 15%，年初至今增長了 18%，最近 12 個月增長了 22%。

With All Access Pass Subscription and Subscription Services revenue growing 11% in the second quarter, which was on top of 29% growth in the second quarter of last year, 15% year-to-date, which was on top of 28% growth year-to-date through the second quarter of last year and 22% for the latest 12 months.

隨著 All Access Pass 訂閱和訂閱服務收入在第二季度增長 11%，高於去年第二季度 29% 的增長率，今年迄今增長 15%，高於去年同期 28% 的增長率-截至去年第二季度迄今，最近 12 個月為 22%。

And in our Education business, Leader in Me subscription and subscription services revenue grew 30% in the second quarter, 27% year-to-date and 23% in the latest 12-month period; second, as shown on Slide 7, the percent of our North America All Access Pass subscription contract value represented by multiyear contracts of at least 2 years, has increased significantly from 47% in last year's second quarter to 55% in this year's second quarter, this reflects our clients' long-term commitment to address their big opportunities and challenges utilizing our solutions.

在我們的教育業務中，Leader in Me 訂閱和訂閱服務收入在第二季度增長了 30%，年初至今增長了 27%，最近 12 個月增長了 23%；其次，如幻燈片 7 所示，至少 2 年的多年期合同代表我們的北美全通通行證訂閱合同價值的百分比已從去年第二季度的 47% 顯著增加到今年第二季度的 55%，這反映了我們的客戶長期致力於利用我們的解決方案應對重大機遇和挑戰。

Third, we also achieved strong levels of invoiced revenue and high revenue retention. Again, we're pleased with the significant levels of revenue that we contracted during the second quarter and the year-to-date and latest 12-month periods. As shown on Slide 8, invoiced revenue in the Education Division grew 30% or $1.8 million in second quarter, 29% year-to-date and 19% for the latest 12 months, and our balance of deferred Education revenue increased $3.1 million or 18% to $20.2 million.

第三，我們還實現了高水平的發票收入和高收入保留率。同樣，我們對第二季度以及年初至今和最近 12 個月期間收縮的顯著收入水平感到滿意。如幻燈片 8 所示，第二季度教育部門的發票收入增長 30% 或 180 萬美元，年初至今增長 29%，最近 12 個月增長 19%，我們的遞延教育收入餘額增長 310 萬美元或 18 % 至 2020 萬美元。

As shown on Slide 9, invoiced revenue in our international licensee partner operations grew 13%, with some partners operating well above prepandemic levels, while others to economies were harder hit are working their way back to prepandemic levels. Invoiced revenue in China and Japan continued to be below prior year but is expected to improve in the back half of this year.

如幻燈片 9 所示，我們的國際被許可合作夥伴業務的發票收入增長了 13%，其中一些合作夥伴的運營遠高於大流行前的水平，而其他經濟體中受到更嚴重打擊的合作夥伴正在努力恢復到大流行前的水平。中國和日本的發票收入繼續低於去年同期，但預計今年下半年將有所改善。

As shown on Slide 10, in the Enterprise Division, in last year's second quarter, we established a new high watermark for the second quarter for the total amount of All Access Pass amounts invoiced with invoiced amounts increasing 25% or $5.6 million to $28.5 million, which was somewhat benefited by comparing to the prior year's pandemic impacted results. We're pleased that even against this high watermark and in a more difficult environment, we were able to further increase the total amount of All Access Pass amounts invoiced in this year's second quarter and for the year-to-date and latest 12-month period.

如幻燈片 10 所示，在去年第二季度的企業部門，我們為第二季度開出的 All Access Pass 總金額設定了新的高水位線，開票金額增加了 25% 或 560 萬美元，達到 2850 萬美元，與去年受大流行影響的結果相比，這在一定程度上受益。我們很高興，即使在這個高水位線和更困難的環境中，我們仍能夠進一步增加今年第二季度以及今年迄今和最近 12 個月開出的 All Access Pass 總金額時期。

Invoiced amounts grew 4% or $1.2 million to $29.8 million in the second quarter, 8% or $3.4 million year-to-date and 11% or $9.7 million for the latest 12-month period. We're pleased with the ongoing strength of the total amounts we invoiced during the second quarter and the fact that this growth rate was less than last year's second quarter primarily reflects 2 factors. First, that we were comping against the magnitude of last year's 25% growth. And second, that in this environment, while the number of All Access Pass clients who renewed or expanded their All Access Pass in this year's second quarter increased, these increases were somewhat offset by an increase in the average size of the All Access Pass contracts not able to renew in the second quarter.

第二季度發票金額增長 4% 或 120 萬美元至 2980 萬美元，年初至今增長 8% 或 340 萬美元，最近 12 個月增長 11% 或 970 萬美元。我們對第二季度發票總額的持續增長感到滿意，而這一增長率低於去年第二季度的事實主要反映了兩個因素。首先，我們正在與去年 25% 的增長幅度進行比較。其次，在這種環境下，雖然在今年第二季度續訂或擴展其 All Access Pass 的 All Access Pass 客戶數量有所增加，但這些增長在一定程度上被 All Access Pass 合同平均規模的增加所抵消。可以在第二季度更新。

Importantly, as shown on Slide 11, for the entire company, our balance of billed and unbilled deferred revenue at the end of the quarter was $145.8 million, reflecting growth of $26.5 million or 22% versus last year. Of this $26.5 million increase in total deferred revenue, $5.8 million was growth in deferred subscription revenue, representing growth of 8% with the other $20.7 million, reflecting 42% growth in unbilled deferred revenue, which has not yet been invoiced, but which will be invoiced with 100% surety in the coming quarters. This growth in unbilled deferred increases visibility and predictability into future revenue and provides a meaningful tailwind for growth in our invoiced amounts in the coming quarters.

重要的是，如幻燈片 11 所示，就整個公司而言，本季度末我們的已開票和未開票遞延收入餘額為 1.458 億美元，較去年增長 2650 萬美元或 22%。在這 2650 萬美元的總遞延收入增長中，580 萬美元是遞延訂閱收入的增長，與其他 2070 萬美元相比增長了 8%，反映了未開票的遞延收入增長了 42%，該收入尚未開具發票，但將在未來幾個季度以 100% 保證開具發票。未開票遞延的這種增長提高了對未來收入的可見性和可預測性，並為未來幾個季度的發票金額增長提供了有意義的推動力。

Fourth, as shown on Slide 12, purchases of All Access Pass subscription services also grew in the quarter. The amount of All Access Pass subscription services revenue in the Enterprise Division has grown significantly over the years, increasing from 44% of total subscription sales in fiscal 2020 to 52% in fiscal 2021 and then increased significantly to 62% of subscription sales in fiscal 2022, which again was somewhat benefited by comping against the prior year's pandemic impacted results and has remained at this high level through this year's second quarter.

第四，如幻燈片 12 所示，本季度 All Access Pass 訂閱服務的購買量也有所增長。多年來，企業部門的 All Access Pass 訂閱服務收入增長顯著，從 2020 財年佔訂閱銷售額的 44% 增加到 2021 財年的 52%，然後顯著增加到 2022 財年佔訂閱銷售額的 62% ，與去年大流行影響的結果相比，它再次在一定程度上受益，並且在今年第二季度一直保持在這個高水平。

In last year's second quarter sales of subscription services in the quarter grew a very significant $3.9 million or 53%. We're pleased that even against this difficult comp and in a more difficult environment, we were able to achieve growth in the amount of services purchased in this year's second quarter of $200,000 or 2%. This reflects the ongoing commitment our clients have in solving their must-win challenges even in this difficult environment.

去年第二季度的訂閱服務銷售額增長了 390 萬美元，增幅高達 53%。我們很高興，即使在這種困難的情況下，在更困難的環境中，我們在今年第二季度的服務購買量也實現了 200,000 美元或 2% 的增長。這反映了即使在這種困難的環境中，我們的客戶也始終致力於解決他們必須戰勝的挑戰。

The third element of our strategy is the significant diversity in our base of clients in the industries and segments in which we operate in the Enterprise Division and that our Education Division serves a completely different market. This diversity provides a strong foundation for growth and can limit the extent of concentrated impact of economic storms that may occur. No individual client accounts for more than 2% of our revenue. And as you can see on Slide 14, we have no significant concentration of revenue in any particular industry.

我們戰略的第三個要素是我們在企業部門運營的行業和細分市場中的客戶群具有顯著的多樣性，而我們的教育部門服務於一個完全不同的市場。這種多樣性為增長提供了堅實的基礎，並可以限制可能發生的經濟風暴的集中影響程度。沒有任何個人客戶占我們收入的 2% 以上。正如您在幻燈片 14 中看到的那樣，我們沒有將收入顯著集中在任何特定行業。

Fourth, the strength of our subscription business model is driving strong growth in revenue, adjusted EBITDA and cash flow. Three key factors underlie the strength and growth of our subscription business and its ability to drive strong growth in adjusted EBITDA and cash flow. First is that the lifetime customer value of a typical subscription contract is large and growing. For example, as shown on Slide 16 and as we showed last quarter, the typical All Access Pass contract with its relatively large initial value, high annual revenue retention, strong gross margins and significant amount of recurring All Access Pass subscription services ultimately becomes an asset worth hundreds of thousands of dollars.

第四，我們訂閱業務模式的優勢正在推動收入、調整後的 EBITDA 和現金流的強勁增長。三個關鍵因素構成了我們訂閱業務的實力和增長及其推動調整後 EBITDA 和現金流強勁增長的能力。首先是典型訂閱合同的終身客戶價值很大並且還在增長。例如，如幻燈片 16 和我們上個季度所示，典型的 All Access Pass 合同具有相對較大的初始價值、高年收入保留率、強勁的毛利率和大量經常性的 All Access Pass 訂閱服務最終成為一項資產價值數十萬美元。

Second is that the increasing duration of our subscription contracts further increases their durability and their value. And third -- the third point is that our constant -- our cost of acquiring a new All Access Pass subscription is not only much less than the contract's lifetime value, but even less than the client's first year All Access Pass spend. The combination of these factors allow us for the achievement of significant growth in All Access Pass and Leader in Me revenue with high flow-through of incremental revenue to increases in adjusted EBITDA and cash flow.

其次，我們訂閱合同的持續時間增加進一步增加了它們的耐用性和價值。第三點——第三點是我們不變的——我們獲得新的 All Access Pass 訂閱的成本不僅遠低於合同的生命週期價值，甚至低於客戶第一年的 All Access Pass 支出。這些因素的結合使我們能夠實現 All Access Pass 和 Leader in Me 收入的顯著增長，增量收入的高流量會增加調整後的 EBITDA 和現金流。

Finally, our significant liquidity provides us the flexibility to take advantage of opportunities for accelerated growth. Over the years, we've built up and maintained significant liquidity and have no net debt. As a result, subject to a rigorous budgeting and investment processes, we've been able to consistently make investments in 3 important areas. First, we've always been able to make significant ongoing investments and growing our business through organic investments and growing our sales force, building our client-facing teams and investing in content and technology; second, we've also utilized our liquidity to make a series of tuck-in acquisitions that have provided us with key strategic capabilities.

最後，我們大量的流動性使我們能夠靈活地利用加速增長的機會。多年來，我們已經建立並保持了大量的流動性，並且沒有淨債務。因此，根據嚴格的預算和投資流程，我們能夠始終如一地在 3 個重要領域進行投資。首先，我們始終能夠通過有機投資和擴大銷售隊伍、建立面向客戶的團隊以及投資內容和技術來進行重大的持續投資並發展我們的業務；其次，我們還利用我們的流動性進行了一系列收購，為我們提供了關鍵的戰略能力。

And at the same time, over the years, we've returned almost 200 million -- $200 million to shareholders in the form of stock repurchases. We're pleased that even after investing $25 million of excess liquidity for stock repurchases in the last 4 quarters, which includes approximately $3.8 million of stock repurchases in the second quarter, we ended the second quarter with $55.1 million in cash and with our full $15 million revolving credit facility undrawn. During the second quarter, our Board of Directors both replenished our stock repurchase authorization and increased it to $50 million.

與此同時，多年來，我們以股票回購的形式向股東返還了近 2 億美元 - 2 億美元。我們很高興，即使在過去 4 個季度為股票回購投入了 2500 萬美元的過剩流動性（其中包括第二季度約 380 萬美元的股票回購）之後，我們在第二季度末仍擁有 5510 萬美元現金和全部 15 美元萬循環信貸額度未提取。在第二季度，我們的董事會補充了我們的股票回購授權並將其增加到 5000 萬美元。

In addition, subsequent to the end of the quarter, we entered into a new credit facility at an attractive rate that increases our revolving credit amount from $15 million to $62.5 million, providing us with significant flexibility for both repurchasing stock and making strategic acquisitions. The individual and collective power of these 5 key elements has been very evident in the strength of our business over the past years and in our continuing strength in the second quarter, year-to-date and latest 12-month periods.

此外，在本季度末之後，我們以極具吸引力的利率簽訂了一項新的信貸安排，將我們的循環信貸額度從 1500 萬美元增加到 6250 萬美元，為我們回購股票和進行戰略收購提供了極大的靈活性。這 5 個關鍵要素的個人和集體力量在我們過去幾年的業務實力以及我們在第二季度、年初至今和最近 12 個月期間的持續實力中非常明顯。

As a result of this ongoing strength, as we'll discuss in our guidance section in a few minutes, we expect to generate adjusted EBITDA between $47 million and $49 million in constant currency in fiscal '23, and in constant currency to be able to achieve our targets of $57 million in adjusted EBITDA in fiscal '24 and $67 million in fiscal '25.

由於這種持續的強勁勢頭，正如我們將在幾分鐘後的指導部分中討論的那樣，我們預計在 23 財年以固定貨幣計算的調整後 EBITDA 將在 4700 萬美元至 4900 萬美元之間，並且以固定貨幣計算能夠實現我們在 24 財年調整後 EBITDA 為 5700 萬美元和 25 財年 6700 萬美元的目標。

I'd now like to ask Steve to share some headlines on key revenue and profitability metrics and to review our performance for the quarter and year-to-date periods.

我現在想請史蒂夫分享一些關於關鍵收入和盈利指標的頭條新聞，並回顧我們本季度和年初至今的業績。

Thank you, Paul. Good afternoon, everyone. It's nice to be with you. As Paul said, I'd like to start by sharing some headlines regarding our revenue. As Paul mentioned and as you can also see on Slide 18, our revenue growth in the second quarter continued to be strong with revenue increasing 9% to $61.8 million compared to the $56.6 million in last year's second quarter. In constant currency, our revenue grew and even more rapidly 11% even after lower-than-anticipated sales in China and a decrease in rental income, which combined, made up an additional $1.1 million impact.

謝謝你，保羅。大家下午好。很高興和你在一起。正如保羅所說，我想首先分享一些關於我們收入的頭條新聞。正如 Paul 提到的，您也可以在幻燈片 18 上看到，我們第二季度的收入增長繼續強勁，收入增長 9% 至 6180 萬美元，而去年第二季度為 5660 萬美元。按固定匯率計算，即使在中國銷售額低於預期和租金收入減少後，我們的收入仍增長了 11%，並且增加了 110 萬美元的影響。

As also shown, our revenue growth year-to-date through the second quarter was 11% with growth of 14% in constant currency, and for the last 12 months through the second quarter, revenue grew 12% and grew 15% in constant currency. Our subscription and subscription services revenue grew even more rapidly. As you can also see on Slide 18, total subscription and subscription services revenue grew 15% in the second quarter, 18% year-to-date and 22% in the last 12-month period, with All Access Pass subscription and subscription revenue growing 11% in the second quarter. And as Paul mentioned, on top of 29% growth last year, and growing 15% year-to-date on top of 28% of year-to-date growth last year and growing 22% in the last 12 months, and Leader in Me subscription and subscription services revenue growing 30% in the second quarter, 27% year-to-date and 23% in the latest 12-month period.

還如圖所示，截至第二季度，我們的收入增長為 11%，按固定匯率計算增長 14%，在截至第二季度的過去 12 個月中，收入增長 12%，按固定匯率計算增長 15% .我們的訂閱和訂閱服務收入增長更快。正如您在幻燈片 18 上看到的那樣，訂閱和訂閱服務總收入在第二季度增長了 15%，年初至今增長了 18%，在過去 12 個月期間增長了 22%，其中 All Access Pass 訂閱和訂閱收入在增長第二季度為 11%。正如 Paul 所提到的，除了去年 29% 的增長，今年迄今增長 15%，去年年初至今增長 28%，過去 12 個月增長 22%，以及領導者我的訂閱和訂閱服務收入在第二季度增長了 30%，年初至今增長了 27%，最近 12 個月增長了 23%。

Durability of our revenue is also continuing to increase, and our visibility into future revenue growth continued to expand. As also shown on Slide 18, our balance of deferred subscription revenue billed and unbilled at the end of the second quarter increased $26.5 million or 22% to $145.8 million. And finally, as also shown on Slide 18, for the last 12 months through the second quarter in our North America Enterprise operations, the percentage of our total All Access Pass invoiced revenue represented by multiyear contracts of at least 2 years, increased to 55%, up from 47% last year.

我們收入的持久性也在不斷提高，我們對未來收入增長的能見度也在不斷擴大。同樣如幻燈片 18 所示，我們在第二季度末已開票和未開票的遞延訂閱收入餘額增加了 2650 萬美元或 22%，達到 1.458 億美元。最後，如幻燈片 18 所示，在我們北美企業業務的第二季度的過去 12 個月中，至少 2 年的多年期合同所代表的 All Access Pass 發票總收入的百分比增加到 55% ，高於去年的 47%。

I'd also like to share some headline profitability metrics. As shown on Slide 19, our gross margin percentage in the second quarter remained very strong at 76.4%, representing the combination of 46 basis point increase in gross margin in the Enterprise Division and a 150 basis point decrease in gross margin overall, primarily reflecting an approximately 500 basis point decline in Education Division gross margin percentage resulting primarily from conducting several large in-person marketing events during the quarter.

我還想分享一些主要的盈利指標。如幻燈片 19 所示，我們第二季度的毛利率仍然非常強勁，達到 76.4%，這意味著企業部門的毛利率增長了 46 個基點，整體毛利率下降了 150 個基點，主要反映了教育部門毛利率下降約 500 個基點，這主要是由於本季度進行了幾次大型面對面營銷活動。

The 150 basis point decrease in gross margin in the quarter is consistent with the year-to-date gross margin decrease of 159 basis points and 163 basis point decrease for the latest 12 months. Operating SG&A as a percentage of sales continued to improve in the second quarter, decreasing another 54 basis points to 63.2% compared to 63.5% in last year's second quarter and improving 133 basis points to 61.2% year-to-date, and for -- 242 basis points for the latest 12-month period to 60.2%.

本季度毛利率下降 150 個基點與年初至今毛利率下降 159 個基點和最近 12 個月下降 163 個基點一致。第二季度運營 SG&A 佔銷售額的百分比繼續提高，與去年第二季度的 63.5% 相比又下降 54 個基點至 63.2%，年初至今提高 133 個基點至 61.2%，以及 -最近 12 個月期間為 242 個基點至 60.2%。

Adjusted EBITDA in last year's second quarter increased $2.9 million or 57% to a record $8 million. We are pleased that even after significantly increasing our investment in hiring new salespeople at the end of last year and expanding our other client-facing teams and making significant investments in completing the development of our Impact Platform, as expected, adjusted EBITDA in this year's second quarter increased further from the $8 million to $8.2 million, which is $8.4 million in constant currency.

去年第二季度調整後的 EBITDA 增加了 290 萬美元或 57%，達到創紀錄的 800 萬美元。我們感到高興的是，即使在去年底大幅增加了我們在招聘新銷售人員方面的投資並擴大了我們其他面向客戶的團隊並進行了大量投資以完成我們影響力平台的開發之後，正如預期的那樣，今年第二個調整後的 EBITDA本季度從 800 萬美元進一步增加到 820 萬美元，按固定匯率計算為 840 萬美元。

Year-to-date, adjusted EBITDA increased $1.7 million or 9% to $19.7 million and in constant currency increased $2.7 million or 15% to $20.6 million. For the latest 12 months, adjusted EBITDA grew $6.8 million or 18% to $43.9 million and in constant currency grew 24% to $46 million.

年初至今，調整後的 EBITDA 增加 170 萬美元或 9% 至 1,970 萬美元，按固定匯率計算增加 270 萬美元或 15% 至 2,060 萬美元。最近 12 個月，調整後 EBITDA 增長 680 萬美元或 18% 至 4390 萬美元，按固定匯率計算增長 24% 至 4600 萬美元。

Our cash provided by operating activities during the first half of this year was $11.2 million compared with $23.2 million in the first 2 quarters last year. The difference was primarily attributable to changes in working capital during the year related to more cash used to pay accounts payable and accrued liabilities, plus changes in the growth of deferred revenue compared to the prior year.

今年上半年，我們經營活動提供的現金為 1120 萬美元，而去年前兩個季度為 2320 萬美元。差異主要歸因於與上一年相比，用於支付應付賬款和應計負債的現金增加，以及遞延收入增長的變化，導致本年度營運資金發生變化。

During the first 2 quarters of FY '23, our collection of accounts receivable remained strong, and provided the necessary cash to support our operations, payer obligations and make critical investments. We expect our cash flow from operating activities in the back half of the year to be strong and even stronger than the back half of last year.

在 23 財年的前兩個季度，我們的應收賬款收款保持強勁，並提供了必要的現金來支持我們的運營、付款人義務和進行重要投資。我們預計今年下半年來自經營活動的現金流量將強勁，甚至強於去年下半年。

As Paul noted, even after investing $25 million of our excess liquidity for stock repurchases in the last 4 quarters, including $3.8 million in stock repurchase in the second quarter, we ended the quarter with $55.1 million in cash and with our full $15 million revolving credit facility undrawn.

正如 Paul 指出的那樣，即使在過去 4 個季度中將 2500 萬美元的過剩流動資金用於股票回購，包括第二季度的 380 萬美元股票回購，我們在本季度末仍擁有 5510 萬美元的現金和 1500 萬美元的全部循環信貸設施未提取。

Our strong and increasing liquidity adds Franklin Covey optionality as we continue to invest in our business, evaluate potential acquisition opportunities and continue to look at ways to further enhance shareholder value. Finally, to make a little more detail -- provide a little more detail on the factors underlying the strong performance focusing on the results of key areas of our company, specifically in our Enterprise business in North America, in our Enterprise business internationally, both in our direct offices and international licensee partner operations and in our Education business, almost all of which is in North America.

隨著我們繼續投資我們的業務、評估潛在的收購機會並繼續尋找進一步提高股東價值的方法，我們強大且不斷增加的流動性增加了富蘭克林柯維的選擇權。最後，更詳細一點——提供更多關於我們公司關鍵領域結果的強勁表現背後因素的更多細節，特別是我們在北美的企業業務，在我們的國際企業業務中，無論是在我們的直接辦公室和國際被許可人合作夥伴運營以及我們的教育業務，幾乎所有這些都在北美。

First, as shown on Slide 20, results in our Enterprise business in North America were strong in the second quarter year-to-date and in the latest 12 months. Revenue in North America, which accounts for about 73% of total Enterprise Division revenue grew 8% in the second quarter, 12% year-to-date and 15% in the latest 12-month period. Our U.S./Canada area of business grew at a strong 11% in the quarter, but was tempered by an 11% softening in our government revenue.

首先，如幻燈片 20 所示，今年第二季度和最近 12 個月，我們在北美的企業業務業績強勁。北美地區的收入約佔企業部門總收入的 73%，第二季度增長 8%，年初至今增長 12%，最近 12 個月增長 15%。我們在美國/加拿大的業務在本季度強勁增長了 11%，但受到政府收入 11% 疲軟的影響。

Subscription and subscription services revenue in North America grew 7% in the quarter, 13% year-to-date and 19% for the latest 12 months. Our balance of deferred revenue billed and unbilled in North America grew 22% compared to last year's second quarter balance. And the percentage of North America's All Access Pass invoiced revenue represented by multiyear contracts increased to 55% for the latest 12 months, as we said before, in the second quarter, up from 47% last year.

北美的訂閱和訂閱服務收入本季度增長 7%，年初至今增長 13%，最近 12 個月增長 19%。與去年第二季度的餘額相比，我們在北美開票和未開票的遞延收入餘額增長了 22%。正如我們之前所說，在第二季度，多年合同所代表的北美 All Access Pass 發票收入的百分比在最近 12 個月增加到 55%，高於去年的 47%。

Second, as shown in Slide 21, revenue growth was strong in our offices in the U.K., Ireland, Germany, Austria, Switzerland and Australia countries, which together make up approximately 48% of total international sales and where All Access Pass makes up a substantial portion of those sales. Revenue in these offices grew 8% in the second quarter, 10% year-to-date and 20% in the latest 12-month period. All Access Pass subscription and subscription services sales, which make up approximately 83% of total sales in these countries grew 4% in the quarter, 9% year-to-date and 22% for the latest 12-month period.

其次，如幻燈片 21 所示，我們在英國、愛爾蘭、德國、奧地利、瑞士和澳大利亞國家/地區的辦事處的收入增長強勁，這些國家合計約佔國際總銷售額的 48%，其中 All Access Pass 佔很大一部分這些銷售額的一部分。這些辦事處的收入在第二季度增長了 8%，年初至今增長了 10%，最近 12 個月增長了 20%。所有 Access Pass 訂閱和訂閱服務銷售額約佔這些國家總銷售額的 83%，本季度增長 4%，年初至今增長 9%，最近 12 個月增長 22%。

In our offices in China and Japan, which account for approximately 52% of total international sales, widespread COVID-related lockdowns in China over the past 18 months, which started to loosen in the second quarter together with a very cautious and slow return to normalcy post-COVID in Japan and the negative impact of FX impacted results in these 2 countries as revenue declined by 17% in the second quarter, 12% year-to-date and 23% in the latest 12-month period.

我們在中國和日本的辦事處約佔國際總銷售額的 52%，過去 18 個月在中國普遍實施了與 COVID 相關的封鎖措施，該措施在第二季度開始放鬆，同時非常謹慎且緩慢地恢復正常日本的後 COVID 和外彙的負面影響影響了這兩個國家的業績，第二季度收入下降了 17%，年初至今下降了 12%，最近 12 個月下降了 23%。

Our strong overall company results were after absorbing these impacts in China and Japan. These pressures appear to be easing and we are expecting growth in these countries in the third quarter and beyond. As also shown in Slide 21, our international licensee partner revenue increased 13% in the second quarter, 11% year-to-date and 16% in the last 12 months. Our licensee partners operations continue to strengthen despite world economic conditions.

我們強勁的整體公司業績是在吸收了中國和日本的這些影響之後產生的。這些壓力似乎正在緩解，我們預計這些國家將在第三季度及以後實現增長。同樣如幻燈片 21 所示，我們的國際被許可合作夥伴收入在第二季度增長了 13%，年初至今增長了 11%，在過去 12 個月中增長了 16%。儘管世界經濟狀況不佳，我們的被許可方合作夥伴的業務仍在繼續加強。

Finally, as shown in Slide 22, the results of our Education business, which account for approximately 24% of the total company revenues were very strong, with Education revenue growing 28% or $3.1 million in the second quarter. Excluding approximately $600,000 of low-margin Symposium marketing revenue where our clients and prospective clients gather to hear best practices and techniques [astounding] the Leader in Me process, revenue still grew $2.5 million or 23%.

最後，如幻燈片 22 所示，占公司總收入約 24% 的教育業務的業績非常強勁，第二季度教育收入增長 28% 或 310 萬美元。排除大約 600,000 美元的低利潤研討會營銷收入，我們的客戶和潛在客戶聚集在一起聽取最佳實踐和技術 [令人震驚] 領導者在我的過程中，收入仍然增長了 250 萬美元或 23%。

Education revenue increased 25% year-to-date and 20% in the last 12 months. Education subscription and subscription services revenue growth was very strong, increasing 30% in the second quarter, 27% year-to-date and 23% in the last 12 months. Education's balance of deferred subscription revenue grew 18% in the second quarter. And our year-over-year retention of Leader in Me schools remained very high at approximately 90% for the latest 12 months.

教育收入年初至今增長了 25%，過去 12 個月增長了 20%。教育訂閱和訂閱服務收入增長非常強勁，第二季度增長 30%，年初至今增長 27%，過去 12 個月增長 23%。教育的延期訂閱收入餘額在第二季度增長了 18%。在過去的 12 個月裡，我們的 Leader in Me 學校的同比保留率仍然非常高，約為 90%。

So Paul, I'll turn it back to you.

保羅，我會把它還給你。

Thank you, Steve. Thanks for taking us through that. Maybe just stepping back for just a minute before we move to guidance and outlook. In this environment, we're often asked a couple of questions. First, whether organizations and schools are still engaging us on major behavioral change initiatives. And second, how we're thinking about the ongoing growth of our revenue-generating client-facing roles, including client partners.

謝謝你，史蒂夫。感謝您帶我們度過難關。在我們轉向指導和展望之前，也許只是退後一步。在這種環境下，我們經常被問到幾個問題。首先，組織和學校是否仍在讓我們參與主要的行為改變計劃。其次，我們如何考慮我們面向客戶的創收角色（包括客戶合作夥伴）的持續增長。

The answer to the first question, whether organizations of schools are still engaging us on major behavioral change initiatives is an emphatic yes. While it's true that some organizations are hunkering down has occurred during the early stages of the pandemic, many others see this as a critical time to strengthen their organizations by putting extraordinary focus on major strategic objectives, increasing the capability of their leaders, by building more strength into their culture and by increasing the effectiveness of every individual to narrow focus to the most important organizational priorities.

第一個問題的答案是肯定的，學校組織是否仍在讓我們參與主要的行為改變計劃。雖然一些組織確實在大流行的早期階段有所縮減，但許多其他組織認為這是加強組織的關鍵時刻，通過特別關注主要戰略目標、提高領導者的能力、建立更多加強他們的文化，並通過提高每個人的效率來縮小對最重要的組織優先事項的關注。

Last week, we convened a group of Chief Human Resource Officers and Chief Learning Officers from 17 of the largest companies in the country. Collectively, they employ more than 2 million people. We spent the entire day discussing the areas in which they and their CEOs are most focused and how they're organizing to drive collective action on their most important objectives. Over and over, we heard these leaders discuss the high correlation between leadership capability and financial performance, the importance of culture and the power of focusing and aligning organizations to improve execution.

上週，我們召集了來自全國 17 家最大公司的首席人力資源官和首席學習官。他們總共僱用了超過 200 萬人。我們花了一整天的時間討論他們和他們的 CEO 最關注的領域，以及他們如何組織起來推動集體行動以實現他們最重要的目標。我們一遍又一遍地聽到這些領導者討論領導能力與財務績效之間的高度相關性、文化的重要性以及集中和調整組織以提高執行力的力量。

Franklin Covey is a trusted partner to our clients in each of these areas. As shown on Slide 23, I'd like to briefly touch on a few recent client wins that illustrate the type of positive momentum we're seeing across the majority of our client base right now. First is a recent new client win with a large organization who is engaging us on a major sales transformation initiative that will touch more than 5,000 of their sales professionals around the world. This is a 5-year All Access Pass contract. The second is a large multinational information technology consultancy, whose All Access Pass actually expired 6 months ago, resulting in a nonrenewal at that time, as the client wrestled with what was an uncertain economy and what that might mean for their business. However, in the second quarter just ended, we won this client back for a new 3-year contract with significant subscription services attached.

富蘭克林柯維在上述各個領域都是我們客戶值得信賴的合作夥伴。如幻燈片 23 所示，我想簡要介紹一下最近贏得的一些客戶，這些客戶說明了我們目前在大多數客戶群中看到的積極勢頭。首先是最近贏得了一個大型組織的新客戶，該組織正在與我們合作開展一項重大的銷售轉型計劃，該計劃將涉及其全球 5,000 多名銷售專業人員。這是一份為期 5 年的 All Access Pass 合同。第二個是一家大型跨國信息技術諮詢公司，其 All Access Pass 實際上在 6 個月前就已過期，導致當時沒有續簽，因為客戶正在努力應對不確定的經濟以及這對他們的業務可能意味著什麼。然而，在剛剛結束的第二季度，我們贏回了這個客戶，獲得了一份為期 3 年的新合同，並附有重要的訂閱服務。

A third of the large transportation company that expanded All Access Pass seats from 1,500 to 9,000 in the second quarter so that we can now help them address the entirety of their leadership population globally. And maybe just one more from our Enterprise Division, a leading global food and beverage company renewed their pass in the second quarter and at the same time, expanded their All Access Pass seats so that they can scale our project management unconscious bias and 7 Habits solution further into their organization.

三分之一的大型運輸公司在第二季度將 All Access Pass 座位從 1,500 個增加到 9,000 個，這樣我們現在就可以幫助他們解決全球所有領導群體的問題。也許我們的企業部門還有一個，一家領先的全球食品和飲料公司在第二季度更新了他們的通行證，同時擴大了他們的 All Access Pass 席位，以便他們可以擴展我們的項目管理無意識偏見和 7 習慣解決方案進一步進入他們的組織。

And also importantly, in our Education Division, where the team has successfully been pivoting from selling Leader in Me not only to individual schools but also to entire districts and states, we won our second state-funded contracts and have closed district-wide sales with more than twice the number of districts this year that we have the same point last year.

同樣重要的是，在我們的教育部門，團隊已經成功地將 Leader in Me 不僅銷售給個別學校，還銷售給整個地區和州，我們贏得了第二份國家資助的合同，並關閉了地區範圍內的銷售今年我們有相同點的地區數量是去年的兩倍多。

To answer the second question, how are we thinking about the ongoing growth of our revenue-generating client-facing sales roles, including client partners. The answer is that we continue to see this as a significant piece of our all growth strategy. As you can see shown in the chart on Slide 24, since the end of fiscal 2012 through the end of fiscal '22, we've grown the size of our sales force by 250% from 120 client partners to 300 client partners. And of these additions, at least 1/3 have been added in just the past 4 years, meaning we have a significant portion of our sales force who are still in ramp, many of whom are in the early stages of that ramp.

要回答第二個問題，我們如何考慮我們面向客戶的創收銷售角色（包括客戶合作夥伴）的持續增長。答案是我們繼續將此視為我們所有增長戰略的重要組成部分。正如您在幻燈片 24 的圖表中看到的那樣，從 2012 財年末到 22 財年末，我們的銷售隊伍規模從 120 個客戶合作夥伴增加到 300 個客戶合作夥伴，增長了 250%。在這些增加的人員中，至少有 1/3 是在過去 4 年中增加的，這意味著我們有很大一部分銷售人員仍處於上升階段，其中許多人處於上升階段的早期階段。

These ramping client partners represent a significant source of future revenue growth as the embedded future revenue from these -- from the successful ramp of these new client partners represent tens of millions of dollars of future revenue growth. While this growth in the number of new client partners has been incurring -- occurring, we've also been growing 2 additional important client-facing revenue-generating roles, our All Access Pass implementation strategists and our Leader in Me coaches.

這些不斷增長的客戶合作夥伴代表了未來收入增長的重要來源，因為來自這些新客戶合作夥伴的成功增長帶來的嵌入式未來收入代表了數千萬美元的未來收入增長。雖然新客戶合作夥伴數量的增長一直在發生 - 發生，但我們也一直在增加另外兩個重要的面向客戶的創收角色，我們的 All Access Pass 實施策略師和我們的 Leader in Me 教練。

These 2 groups play a critical part of our account management strategy. They partner with our client partners to expand, add services and ensure the successful renewal of each of our All Access Pass and Leader in Me clients. As you can see shown in the chart on Slide 25, the number of people hired for these roles has also grown steadily since the launch of our subscription business, more than doubling from 70 in fiscal 2016 to 149 at the end of fiscal '22.

這兩個小組在我們的客戶管理策略中扮演著重要的角色。他們與我們的客戶合作夥伴合作，以擴展、增加服務並確保成功更新我們的每個 All Access Pass 和 Leader in Me 客戶。正如您在幻燈片 25 的圖表中看到的那樣，自我們推出訂閱業務以來，擔任這些職位的人數也在穩步增長，從 2016 財年的 70 人增加到 22 財年末的 149 人，翻了一番多。

As we continue to focus on hiring aggressively to match the magnitude of the big opportunity before us, there's enormous value to making sure each one of these people ramp successfully. Therefore, both generally and particularly in this more difficult environment, we're going to spread the hiring of this and future years hiring a little more evenly rather than bunching them all up at year-end. This will allow us to ensure each of these people receive the right amount of ramp support, both in the current environment and thereafter.

隨著我們繼續專注於積極招聘以匹配擺在我們面前的巨大機會的重要性，確保這些人中的每一個人都能成功晉升具有巨大的價值。因此，總體而言，尤其是在這個更加困難的環境下，我們將更加平均地分配今年和未來幾年的招聘，而不是在年底將他們全部集中在一起。這將使我們能夠確保這些人中的每一個人在當前環境和之後的環境中都獲得適量的斜坡支持。

We're pleased that because of our strong solutions and their ability to address must-win objectives for our clients, our compelling subscription business and our strong business model, we're able to make these ongoing investments to accelerate our growth in revenue, while at the same time, accelerating our growth in adjusted EBITDA and cash flow.

我們很高興，由於我們強大的解決方案及其為我們的客戶解決必勝目標的能力、我們引人注目的訂閱業務和我們強大的商業模式，我們能夠進行這些持續投資以加速我們的收入增長，同時同時，加速我們調整後的 EBITDA 和現金流的增長。

I want to express my huge appreciation to our amazing clients and to our teams of amazingly talented and committed people who serve them. They make the impact we're having possible. I'd now like to turn the time to Steve to review our guidance and multiyear outlook. Steve?

我想對我們了不起的客戶以及為他們服務的才華橫溢、盡職盡責的團隊表示衷心的感謝。他們使我們的影響成為可能。我現在想把時間交給史蒂夫來回顧我們的指導和多年展望。史蒂夫？

Okay. Thank you again, Paul. So everyone might want to refer to Slide 26. So driven by the continued strength, strategic durability and future visibility provided by our All Access Pass and Leader in Me membership subscriptions, which due to their high revenue retention, high lifetime customer value and they're being highly attractive to new customers have resulted in accelerated growth over the past year. They have also driven strong performance through the first 2 quarters of this year. Based upon that, primarily, we are affirming our previously announced guidance that adjusted EBITDA for fiscal 2023 will increase to between $47 million and $49 million in constant currency compared with the $42.2 million in adjusted EBITDA achieved in fiscal 2022.

好的。再次感謝你，保羅。所以每個人都可能想參考幻燈片 26。因此，受到我們的 All Access Pass 和 Leader in Me 會員訂閱提供的持續實力、戰略持久性和未來可見性的推動，由於他們的高收入保留率、高終身客戶價值和他們'對新客戶的高度吸引力導致了過去一年的加速增長。他們還推動了今年前兩個季度的強勁表現。基於此，我們主要確認我們之前宣布的指導意見，即 2023 財年調整後的 EBITDA 將增加到 4700 萬美元至 4900 萬美元（按固定匯率計算），而 2022 財年調整後的 EBITDA 為 4220 萬美元。

We expect to achieve this growth even after continuing to make increased investments to add new client partners, other personnel and investments in delivery portals and content and absorbing potentially challenging macroeconomic circumstances. This guidance also assumes that China and Japan will begin their post-COVID-19 recovery in the second half of the year and does include the loss of approximately $1.4 million of adjusted EBITDA related to the loss in Q2 of a large tenant at our corporate campus.

即使在繼續增加投資以增加新的客戶合作夥伴、其他人員以及對交付門戶和內容的投資以及吸收具有潛在挑戰性的宏觀經濟環境之後，我們仍有望實現這一增長。本指南還假設中國和日本將在今年下半年開始 COVID-19 後的複蘇，並且確實包括與我們企業園區第二季度損失相關的調整後 EBITDA 損失約 140 萬美元.

We remain confident in the strength of the All Access Pass and the Leader in Me membership subscriptions, which have driven Franklin Covey's growth across recent years and which are expected to drive continued growth in FY '23 and in subsequent years. Consistent with our overall guidance of adjusted EBITDA going from $47 million to $49 million in constant currency, we expect adjusted EBITDA in the third quarter to be between $9.5 million and $10.5 million in constant currency. We feel very good about achieving this result, particularly given that last year's Q3 adjusted EBITDA result of $10.9 million was itself $2.3 million or 27% higher than the year before, making this year's Q3 adjusted EBITDA quarter, our second largest Q3 ever, even after absorbing the $500,000 reduction in EBITDA from the loss of the tenant that we mentioned.

我們仍然對 All Access Pass 和 Leader in Me 會員訂閱的實力充滿信心，這推動了 Franklin Covey 近年來的增長，預計將推動 23 財年及隨後幾年的持續增長。與我們調整後的 EBITDA 從 4700 萬美元到 4900 萬美元不變貨幣的總體指導一致，我們預計第三季度調整後的 EBITDA 將在 950 萬美元到 1050 萬美元之間。我們對實現這一結果感到非常高興，特別是考慮到去年第三季度調整後的 EBITDA 結果為 1090 萬美元，本身比前一年高出 230 萬美元或 27%，這使得今年第三季度調整後的 EBITDA 季度成為我們有史以來第二大的第三季度，即使在吸收我們提到的租戶損失導致 EBITDA 減少 500,000 美元。

As to revenue, compared to our estimate at the beginning of the year of approximately $294 million, we expect revenue for the year to be impacted by approximately $3.5 million due to FX, an additional $2.5 million because of the slower-than-expected recovery of sales in China and Japan and by an additional $4 million to reflect the expected impact of the deeper snow through which our clients are hiking.

至於收入，與我們年初估計的約 2.94 億美元相比，我們預計今年的收入將受到大約 350 萬美元的影響，這是由於外匯影響，另外 250 萬美元是由於經濟復甦慢於預期。中國和日本的銷售額以及額外的 400 萬美元，以反映我們的客戶徒步穿越的更深雪的預期影響。

We expect revenue in the third quarter to be approximately $70 million in constant currency, reflecting the factors just mentioned and in line with our full year revenue expectation of approximately $284 million (sic) [$294 million]. In line with our expectation of $47 million to $49 million of adjusted EBITDA in constant currency in FY '23, our adjusted EBITDA targets for FY '24 and FY '25, remain unchanged at approximately $57 million and $67 million, respectively. While changes in the world economy and many other factors could impact our expectations. These are our current targets. So Paul, back to you.

我們預計第三季度的收入按固定匯率計算約為 7000 萬美元，反映了剛才提到的因素，並符合我們對全年收入約 2.84 億美元（原文如此）[2.94 億美元]的預期。根據我們對 23 財年 4700 萬美元至 4900 萬美元的調整後 EBITDA 的預期，我們調整後的 24 財年和 25 財年的 EBITDA 目標分別保持在約 5700 萬美元和 6700 萬美元不變。而世界經濟的變化和許多其他因素可能會影響我們的預期。這些是我們目前的目標。保羅，回到你身邊。

Great. Thank you, Steve. We feel great about our continued momentum and are looking forward to accelerating growth and -- with that, I think we ought to open up to your questions.

偉大的。謝謝你，史蒂夫。我們對我們的持續發展勢頭感到滿意，並期待著加速增長——因此，我認為我們應該對你的問題持開放態度。

(Operator Instructions) Our first question comes from Nehal Chokshi with Northland Capital Markets.

（操作員說明）我們的第一個問題來自 Northland Capital Markets 的 Nehal Chokshi。

Just a little clarification on the EBITDA guidance. The slides are classifying on a constant currency basis. And in the quarter ago period that did not specify on a constant currency basis. So are we going from an as is to a constant currency outlook here?

只是對 EBITDA 指南的一點澄清。幻燈片按固定貨幣分類。並且在上一季度沒有指定固定貨幣基礎。那麼，我們是否要從現狀轉向不變的貨幣前景？

For adjusted EBITDA?

對於調整後的 EBITDA？

Yes.

是的。

Fair question. Specially, I think we've always -- that was probably a miss on our part in the slide last quarter. We typically always try to give our guidance in constant currency.

公平的問題。特別是，我認為我們一直 - 這可能是我們在上個季度的幻燈片中的失誤。我們通常總是試圖以不變的貨幣提供我們的指導。

Okay. Excellent. And I think what you guys are trying to communicate here is that over the last 3 months, you have seen incremental headwinds to EBITDA and you're absorbing those incremental headwinds. Can you quantify exactly those incremental headwinds on an EBITDA basis as opposed to a revenue basis that you have already provided?

好的。出色的。我認為你們在這裡試圖傳達的是，在過去的 3 個月裡，你們看到了 EBITDA 的逆風增加，並且你們正在吸收這些增加的逆風。您能否在 EBITDA 的基礎上而不是您已經提供的收入基礎上準確量化這些增量逆風？

So no, we really haven't talked about a number that the change -- that the headwinds related to revenue have flown to adjusted EBITDA but it would be at a pretty high flow-through rate, meaning that if we had pick whatever your number is $2 million, $3 million, $4 million of additional revenue, that, would have flown through at a pretty -- at a very high rate to adjusted EBITDA.

所以不，我們真的沒有談論這個變化的數字 - 與收入相關的不利因素已經轉移到調整後的 EBITDA 但它的流通率會很高，這意味著如果我們選擇你的數字是 200 萬美元、300 萬美元、400 萬美元的額外收入，那將以非常高的速度飛過調整後的 EBITDA。

Got it. Okay. Great. Two other quick questions here. So bookings in the quarter is up only 2% year-over-year, although the All Access Pass invoicing is up [5%] year-over-year. That's versus mid-teens prior 4 quarters and 23% in the November quarter. So a pretty significant deceleration in your bookings, what's the narrative behind that deceleration there?

知道了。好的。偉大的。這裡有另外兩個快速問題。因此，本季度的預訂量同比僅增長 2%，儘管 All Access Pass 發票同比增長 [5%]。相比之下，前 4 個季度和 11 月季度為 23%。因此，您的預訂出現了相當大的減速，這種減速背後的敘述是什麼？

Yes, it's a good question. So I think -- so stepping back for just a second, as we looked at the quarter and as we talked about just a minute ago, there were -- there are a number of actual positive things really happened in the quarter relative to bookings. We had the number of clients who expanded, renewed and expanded their All Access Pass was greater in the second quarter than it was a year ago. So it wasn't that, that we had more clients sign multiyear contracts this year than did a year ago. So we felt great about that. New logo sales continue to be strong in the quarter for the year-to-date and for the latest 12 months.

是的，這是個好問題。所以我認為 - 所以退後一步，當我們回顧這個季度並且正如我們在一分鐘前談到的那樣 - 本季度確實發生了一些與預訂相關的實際積極事情。我們在第二季度擴展、更新和擴展其 All Access Pass 的客戶數量比一年前多。因此，與一年前相比，今年我們有更多的客戶簽署了多年合同。所以我們對此感覺很好。本季度迄今為止和最近 12 個月的新標識銷售繼續保持強勁勢頭。

And so those were all positive on the -- weighing against that were, as we mentioned, there were -- while about the same percentage of clients who don't renew in any given quarter didn't renew, there were some larger clients in there who didn't renew this quarter and that weighed to the point where it almost mostly offsets the gains on the other side. So I think that's what happened in the quarter. It was some really positive things. Then we did have those clients who are a little bit larger facing their own headwinds didn't renew, we hope that we'll win them back.

因此，這些都是積極的 - 正如我們提到的那樣，有 - 雖然在任何給定季度沒有續約的客戶中有大約相同百分比沒有續約，但有一些更大的客戶本季度誰沒有續約，這幾乎抵消了另一方的收益。所以我認為這就是本季度發生的事情。這是一些非常積極的事情。然後我們確實有一些規模稍大的客戶面臨著自己的逆風沒有續約，我們希望我們能贏回他們。

From a growth standpoint, then the other point we made is we're comping against what was our largest percentage growth quarter last year in the second quarter that we've had in our subscription business, which itself was a little bit benefited by the comp last year being a little bit easier over the COVID impact. And so we're up against that and comping there as well. But generally speaking, we feel like the level of execution, what we're seeing happening with our clients apart from those who were a little bit larger than we're able to renew is still quite consistent with what we were seeing a year ago.

從增長的角度來看，我們提出的另一點是，我們正在與去年第二季度我們在訂閱業務中的最大百分比增長季度進行比較，訂閱業務本身也從競爭中受益去年對 COVID 的影響要容易一些。因此，我們反對並在那裡進行比賽。但總的來說，我們覺得執行水平，我們所看到的與我們的客戶發生的事情，除了那些比我們能夠更新的稍大一點的客戶，仍然與我們一年前看到的情況非常一致。

Okay. And my last question is, can you explain to me what you guys mean by deeper snow?

好的。我的最後一個問題是，你們能給我解釋一下你們所說的更深的雪是什麼意思嗎？

So in Utah -- it sounds a little funny. It's been snowing like crazy in Utah. So we were trying to think of what would be a good metaphor that -- so if a year ago -- and by the way, a year ago, it wasn't like the economy was all roses either. We're starting to be some signs and there were starting to be some concern and maybe a little bit of pullback.

所以在猶他州——這聽起來有點滑稽。猶他州一直在瘋狂下雪。所以我們試圖想出一個很好的比喻——所以如果一年前——順便說一句，一年前，經濟也不是一帆風順。我們開始出現一些跡象，開始出現一些擔憂，可能還有一點回調。

But we're seeing -- we see a little more of that now from our clients where if there was not a lot of snow on the ground a year ago, there is a bit more snow on the ground. And while the same unit of effort doesn't yield the same mild hikes per day for some of our clients. And so as they're facing a little bit more headwind and a little bit deeper snow on their end, that does have some spillover back into us. And I think we saw that with those clients who while about the same percent they don't renew in a typical quarter, some of them are a little bit larger reflective of that, more headwinds for them or deeper snow for them.

但我們看到 - 我們現在從我們的客戶那裡看到了更多，如果一年前地面上沒有很多雪，地面上就會有更多的雪。雖然對於我們的一些客戶來說，同樣的努力並不能帶來每天同樣溫和的加息。因此，當他們面臨更多的逆風和更深的積雪時，這確實對我們產生了一些影響。而且我認為我們看到那些客戶雖然在一個典型的季度中沒有續約的比例大致相同，但其中一些客戶的反映更大，對他們來說更多的逆風或對他們來說更深的雪。

Our next question comes from Jeff Martin with ROTH MKM.

我們的下一個問題來自 Jeff Martin 和 ROTH MKM。

Thanks for all the details, very helpful. Steve and Paul, I wanted to dive into the industry mix a little bit, and ask if you're seeing any particular trends by some of your larger industry categories, manufacturing, financial services, government, tech -- in terms of client renewals, is there a pattern from within the larger pieces of the pie even though none of them is overwhelmingly large.

感謝您提供所有詳細信息，非常有幫助。 Steve 和 Paul，我想稍微深入了解一下行業組合，問一下你們是否看到一些更大的行業類別、製造業、金融服務、政府、科技——在客戶續訂方面有任何特定趨勢，較大的餡餅中是否存在一種模式，即使它們都不是非常大。

Yes. That's a great question. Maybe I'll ask -- I'll have -- I'll just make a quick comment and then have Jen Colosimo speak to that specifically. But in short answer, it's not a -- doesn't vary much by industry. But Jen, I know your team has been kind of really digging into that. Any thoughts you have?

是的。這是一個很好的問題。也許我會問——我會問——我會做一個簡短的評論，然後讓 Jen Colosimo 專門談談這個問題。但簡而言之，這不是 - 因行業而異。但是 Jen，我知道你的團隊一直在深入研究這個問題。你有什麼想法嗎？

Jen, might be trying to come off mute.

珍，可能想保持沉默。

I came off mute. There you go. Thanks for the question, Jeff. The simplest way to answer that is no. We are not seeing a trend by industry. The best way I could explain it is based on the challenges that we address with our clients, particularly as you think about leadership culture, executing on strategy, many of our clients are reinvesting in that, even if they may be having a smaller workforce -- even if they have a smaller workforce, they're reinvesting with those that remain. So as we look at it, as you might expect in this economy, decision-making often moves up. In my case, now making a case to Steve Young, you have -- you need to make more of an economic case, and we have clients that are making that economic case. And we have some that it is delaying decision-making.

我靜音了。給你。謝謝你的問題，傑夫。最簡單的回答方式是否定的。我們沒有看到行業趨勢。我能解釋的最好方法是基於我們與客戶一起應對的挑戰，特別是當你考慮領導文化、執行戰略時，我們的許多客戶正在對此進行再投資，即使他們的員工人數可能較少—— - 即使他們的員工人數較少，他們也會對剩下的員工進行再投資。因此，在我們看來，正如您在這種經濟中所期望的那樣，決策制定通常會上升。就我而言，現在向 Steve Young 提出一個案例，你需要做更多的經濟案例，我們有客戶正在做這個經濟案例。我們有一些人認為它正在延遲決策。

And so it's frankly just an uncertain environment where many of the things that Paul said. We have all of these great things happening. And in fact, the same percentage renewing and to your question, even within industry, it's just that we had a few that were larger revenue amounts that did not, and we hope to win them back but there just isn't an industry trend.

因此，坦率地說，這只是一個不確定的環境，保羅所說的許多事情都在其中。我們正在發生所有這些偉大的事情。事實上，對於你的問題，同樣的百分比更新，即使在行業內，也只是我們有一些收入更大，但沒有，我們希望贏回他們，但沒有行業趨勢。

Yes, Jeff, good to hear -- yes, Jeff, maybe we did report that government was down (inaudible) results in North America down just a little bit in the quarter. I think that has been a slightly softer, but I don't expect that's a long-term trend. It's just kind of a due to one particular client actually one agency. So that would just be one thing to note.

是的，傑夫，很高興聽到——是的，傑夫，也許我們確實報告說北美的政府業績在本季度有所下降（聽不清）。我認為這略微疲軟，但我不認為這是一個長期趨勢。這只是由於一個特定的客戶實際上是一個機構。所以這只是一件事要注意。

Okay. And then I was intrigued by your wording where clients were "not able to renew rather than chose not to renew", is there something in particular that stands out and led you to phrase the statement that way?

好的。然後我對您在客戶“無法續約而不是選擇不續約”時的措辭很感興趣，是否有什麼特別突出的地方導致您以這種方式表達聲明？

No. Trying to remember where I said that...

不，試著記住我在哪裡說過的話……

Okay. Well, let me just ask a second part to that question. It's noticeable that your unbilled deferred revenue growth far outsized your deferred subscription billed in the quarter. And that suggests that the longer-term contracts are overwhelmingly outpacing the shorter-term contracts.

好的。好吧，讓我問這個問題的第二部分。值得注意的是，您未開票的遞延收入增長遠遠超過本季度計費的遞延訂閱。這表明長期合同的增長速度遠遠超過短期合同。

That to me says your more loyal, higher-value clients are renewing at multiyear and past expansion levels relative to maybe some of the shorter-term clients. Maybe you could comment with respect to some of the shorter-term clients? And are those traditionally your more valued clients? Or is there much of a difference between those that purchase longer-term subscriptions?

對我來說，這表明您的更忠誠、更高價值的客戶正在以多年期和過去的擴張水平續約，可能與一些短期客戶相比。也許你可以對一些短期客戶發表評論？那些傳統上是您更有價值的客戶嗎？或者那些購買長期訂閱的人之間有很大的區別嗎？

Yes. Yes. So great, I think maybe they're not able to renew. We have a -- oftentimes when clients -- clients are very committed to us and very committed to what they're trying to achieve. And oftentimes, that discussion is like the one -- I shared the example of the one that was -- that did not renew in the fourth quarter and came back and renewed.

是的。是的。太好了，我想也許他們無法續訂。我們有一個 - 通常當客戶 - 客戶非常致力於我們並且非常致力於他們想要實現的目標。通常，這種討論就像那個——我分享了那個例子——在第四季度沒有更新，然後又回來更新了。

Oftentimes, if you were in those discussions, you'd hear the clients, they say, hey, we're just -- we're not able to do this for this reason at this moment, but we're -- that's not going to the long-term permanent stay here. So they are just sometimes where the environment for the client, and that's not just a Q2 thing that happens.

通常，如果你在那些討論中，你會聽到客戶，他們說，嘿，我們只是 - 我們目前不能因為這個原因這樣做，但我們 - 那不是打算長期常住這裡。所以他們有時只是客戶的環境，而這不僅僅是第二季度發生的事情。

Every company goes into -- or not every company, but it's not uncommon for a company to go through a period where things get more difficult for them. And so it usually is, hey, we're not able to do this at this point, not a, hey, we're leaving you guys forever kind of things, maybe that color my language a little bit. But to your question, we've been really pleased for a number of years now at the continued steady growth in those clients who want to enter into multiyear contracts.

每家公司都會進入——或者不是每家公司都會進入，但公司經歷事情變得更加困難的時期並不少見。所以它通常是，嘿，我們現在無法做到這一點，而不是，嘿，我們將永遠離開你們，也許這讓我的語言有點顏色。但對於你的問題，我們多年來一直非常高興那些想要簽訂多年合同的客戶持續穩定增長。

We've reported on past calls that typically, it will be upon the renewal of their first year or even their second or the third year where they'll step across and add multiple years. But it's usually in that -- after year 1 going into year 2. And I think that's happening because of the nature of the problems that we're solving. We're dealing with the kinds of issues and challenges and topics that are important and don't get solved in 1 quarter or even in 12 months. To change the entire culture or change the level of productivity of an entire team or department is a longer-term kind of thing.

我們報告過過去的電話會議，通常情況下，他們會在第一年甚至第二年或第三年續約時跨過並增加多年。但這通常是在第 1 年進入第 2 年之後。我認為這種情況正在發生，因為我們正在解決的問題的性質。我們正在處理各種重要的問題和挑戰，以及無法在 1 個季度甚至 12 個月內解決的話題。改變整個文化或改變整個團隊或部門的生產力水平是一件更長期的事情。

And so I think we see that in clients generally deciding to make the commitment to multiyear more and more, and we certainly saw that in the second quarter. And so yes, where you do see your -- to the extent that there is greater churn, you see that with those clients after their first year. And then as those cohorts become more and more established, it's like laying down road base where you get these very mature cohorts that now have very little churn or very little transition 8 years later that have been there all those years.

因此，我認為我們看到客戶普遍決定做出越來越多的多年承諾，我們當然在第二季度看到了這一點。所以是的，在你確實看到你的 - 在更大的範圍內，你會在第一年之後看到這些客戶。然後隨著這些群體變得越來越成熟，這就像奠定了道路基礎，在那裡你得到了這些非常成熟的群體，這些群體現在幾乎沒有流失或 8 年後幾乎沒有過渡，這些年來一直在那裡。

And so the most noise and the most chop is actually on the -- those that are coming out of their first year as we're still getting to know them and work with them and then oftentimes, they'll go multiyear.

因此，最大的噪音和最多的干擾實際上是——那些剛從第一年出來的人，因為我們仍在了解他們並與他們一起工作，然後通常情況下，他們會持續多年。

Great. And then I know in the past couple of quarters, you've talked about revenue growth acceleration. Obviously, in the current environment, that's going to take a bit of a pause. Just maybe give us a sense of your degree of confidence if it's -- if it shifted or if it's changed at all relative to some of the targets that you've previously outlined in getting to the mid-teens and ultimately upper teens revenue growth once the economy kind of is back in stable growth mode?

偉大的。然後我知道在過去的幾個季度裡，你談到了收入增長加速。顯然，在當前環境下，這需要暫停一下。也許讓我們了解您的信心程度，如果它是 - 如果它發生了變化，或者它是否相對於您之前概述的一些目標發生了變化，這些目標是在達到十幾歲中期和最終十幾歲以上的收入增長一次經濟有點回到穩定增長模式？

Yes. Great. So maybe first point, that's slightly related but not exactly, the answer to that is that we've built a business model that generates significant increases in adjusted EBITDA and cash flow, independent of whether -- when and whether we get to the mid-teens and then all the way to the high teens. So there's -- it's a business model that continues to be what you've always recognize it to be, which is a great business model.

是的。偉大的。所以也許第一點，這有點相關但不完全是，答案是我們已經建立了一個業務模型，可以顯著增加調整後的 EBITDA 和現金流量，而不管我們是否 - 何時以及是否達到中期 -十幾歲，然後一直到十幾歲。所以有 - 這是一種商業模式，繼續是你一直認為的，這是一個偉大的商業模式。

To your specific question related to growth rates, we also have this powerful -- these 2 powerful subscription engines that have been driving more and more growth, faster and faster growth. And it's absolutely still our view that this is a business that's on its way to low teens, mid-teens and then eventually high teens, like we've said. The current environment means that the timing of when we get there might be a little bit more elongated.

對於與增長率相關的具體問題，我們也有這個強大的 - 這兩個強大的訂閱引擎一直在推動越來越多的增長，越來越快的增長。正如我們所說，我們仍然認為這是一個正在走向低青少年、中青少年和最終高青少年的企業。當前的環境意味著我們到達那裡的時間可能會稍微延長一些。

But we still -- we're still very excited and pleased with what we're seeing in the way the subscription businesses are behaving in both divisions. As I think you alluded to it, Jeff. I think there's a bit of timing thing there given kind of the current economic environment that might slow slightly pace at which we move to low, mid and then high, but I suspect -- strongly suspect that's where we're headed.

但我們仍然 - 我們仍然對訂閱業務在兩個部門的表現方式感到非常興奮和高興。正如我認為你提到的那樣，傑夫。我認為，鑑於當前的經濟環境可能會略微放緩我們轉向低、中和高的步伐，我認為這裡有一些時間問題，但我懷疑——強烈懷疑這就是我們前進的方向。

Our next question comes from Dave Storms with Stonegate.

我們的下一個問題來自 Stonegate 的 Dave Storms。

Perfect. My first question is coming from Slide 16. Paul, you had mentioned the deeper snow that a lot of your clients are seeing. Would we expect that average annual client spend to be greater than the $77,000 going forward still? Or will that number come down as clients pare back the scope of what they're asking from you guys?

完美的。我的第一個問題來自幻燈片 16。保羅，你提到過很多客戶看到的更深的雪。我們是否預計未來的平均年度客戶支出會超過 77,000 美元？或者這個數字會隨著客戶縮減他們對你們的要求範圍而下降嗎？

Yes. Great question. I think -- so that has a number -- that is a number, and we went into quite a bit of detail last quarter on this that has increased quite significantly over the years. And we would -- I think we would expect that number to continue to increase. And the reasons for that are, one, as we mentioned a minute ago, even in the second quarter, more clients expanded, more clients added multiyear. We still -- even on the tougher comp, we still grew services over the prior year.

是的。很好的問題。我認為 - 所以有一個數字 - 這是一個數字，我們在上個季度對此進行了相當多的詳細介紹，這些細節多年來已經顯著增加。我們會 - 我認為我們會期望這個數字繼續增加。其原因是，正如我們一分鐘前提到的，即使在第二季度，更多的客戶也在擴大，更多的客戶增加了多年。我們仍然 - 即使在更艱難的競爭中，我們仍然比前一年增加了服務。

So I think all those things point to clients deepening their relationship with us, expanding our whole model is built, as you know, to land and expand. And I think another vector on that is just the relatively still low client penetration rate that we have as great as we're doing and as much expansion has occurred to that number of $77,000, it wasn't that long ago that it was in the $40,000s. And so as much as that has grown, there's still a tremendous amount of headroom even in the clients we have today, where we're still just addressing roughly 10% of the addressable population.

因此，我認為所有這些都表明客戶加深了與我們的關係，擴展了我們的整個模型，如您所知，是為了著陸和擴展。而且我認為另一個向量是我們擁有的相對較低的客戶滲透率，就像我們正在做的那樣，並且已經發生了 77,000 美元的擴張，就在不久前，它還在40,000 美元。儘管增長如此之多，但即使在我們今天擁有的客戶中，仍有巨大的空間，我們仍然只解決大約 10% 的可尋址人口。

So I think we saw that expansion in the second quarter. We have a lot of headroom to grow and would expect that, that will continue to inch its way up.

所以我認為我們在第二季度看到了這種擴張。我們有很大的增長空間，預計會繼續緩慢上升。

That's very helpful. My second question and Steve touched on this, but with operating SG&A steadily growing slower than revenue, which is a great sign. Is there anything specific to highlight what's driving this? Or is that just more product of economies of scales and general increased efficiencies?

這很有幫助。我的第二個問題和史蒂夫談到了這一點，但運營 SG&A 的增長穩步低於收入，這是一個很好的跡象。有沒有什麼具體的東西可以強調是什麼推動了這一點？或者這只是規模經濟和效率普遍提高的更多產物？

I think there are efficiencies we hope in many places in the company, but that decrease can be driven significantly by the fact that a lot of our costs are either fixed cost or grow at a rate slower than our revenue growth and expected revenue growth. So areas that are not client facing, like central overhead, all of those types of costs, we expect to grow at a rate lower -- slower than revenue for quite some time.

我認為我們希望在公司的許多地方提高效率，但由於我們的許多成本要么是固定成本，要么增長速度慢於我們的收入增長和預期收入增長，這一事實可能會大大推動效率下降。因此，不面向客戶的領域，如中央管理費用，所有這些類型的成本，我們預計將以較低的速度增長——在相當長一段時間內低於收入。

So we would expect to have our client-facing costs in SG&A grow at a rate pretty similar to our revenue growth as we support that -- as we support the growth and look for accelerating growth that Paul just talked about. But again, a lot of the back-end operations, we believe, are able to grow at a slower rate, and that will increase the -- that will decrease the percentage of SG&A versus revenue as time goes on.

因此，我們希望在 SG&A 中面向客戶的成本以與我們支持的收入增長非常相似的速度增長——因為我們支持增長並尋求保羅剛才談到的加速增長。但同樣，我們相信，許多後端業務能夠以較慢的速度增長，這將增加——隨著時間的推移，這將降低 SG&A 與收入的百分比。

That's very helpful. One more for me if I could go ahead.

這很有幫助。如果我可以繼續的話，再給我一個。

No, in fact, I would say that as we go -- as our adjusted EBITDA, we expect to grow up into the targets that we've talked about in future years that growth is primarily the relationship of the fixed cost to revenue.

不，事實上，我會說，隨著我們的發展——作為我們調整後的 EBITDA，我們希望在未來幾年實現我們所討論的目標，即增長主要是固定成本與收入的關係。

I think what you're also seeing, Dave, in here is that our cost to acquire a customer is actually not only less than the lifetime value of that customer, but even less than the first year value of that customer. And so as we're acquiring more customers, that revenue is growing faster than the cost to even acquire them. So, I think, the combination of all those factors is -- maybe back to Nehal's question is why also while revenue could be at one level and adjusted EBITDA can still be growing at the levels that we originally projected for the year end in the future.

我想你也看到了，戴夫，在這裡，我們獲得客戶的成本實際上不僅低於該客戶的終身價值，甚至低於該客戶第一年的價值。因此，隨著我們獲得更多客戶，收入的增長速度甚至超過了獲得客戶的成本。所以，我認為，所有這些因素的結合是 - 也許回到 Nehal 的問題是為什麼雖然收入可能處於一個水平並且調整後的 EBITDA 仍然可以在我們最初預測的未來年底的水平上增長.

So really, it's just a hotchpotch strong execution. That's great. Okay. One more, if I could. I know, Paul, you mentioned that your space now bringing on new client partners throughout the year. So it's not as backloaded. Have you guys discussed or would you be wanting to give us a target on what new -- number of new client partners would look like by the end of the year?

所以真的，這只是一個雜亂無章的強大執行力。那太棒了。好的。再來一個，如果可以的話。我知道，保羅，你提到你的空間現在全年都在吸引新的客戶合作夥伴。所以它沒有那麼後載。你們有沒有討論過，或者你們想給我們一個目標，到今年年底，新客戶合作夥伴的數量會是什麼樣子？

So we don't -- I don't have a number for you today. We were still -- we've got -- as you know, we've bulked up the number of recruiters a year ago so that we could get more -- we could be more on top of hiring and hiring more people. We've made meaningful adds to our sales enablement capability to our management structure to support more client partners. So over time, we've gone from adding 10 a year to 20 a year to 30 a year.

所以我們不——我今天沒有電話號碼給你。我們仍然 - 我們已經 - 正如你所知，我們在一年前增加了招聘人員的數量，以便我們可以獲得更多 - 我們可以更多地招聘和招聘更多人。我們對管理結構的銷售支持能力進行了有意義的補充，以支持更多的客戶合作夥伴。所以隨著時間的推移，我們已經從每年增加 10 個到每年 20 個再到每年 30 個。

We're expecting to continue to grow that. I don't know exactly what the number will be at year-end. But consistent with what we've said in the past, we're going to -- we'll add a significant number of client partners between now and the end of the year and into next fiscal year as well. We think in this environment that there's an opportunity to get really great salespeople.

我們期待繼續增長。我不知道年底的確切數字是多少。但與我們過去所說的一致，我們將 - 從現在到今年年底以及下一個財政年度，我們將增加大量的客戶合作夥伴。我們認為在這種環境下，有機會獲得真正優秀的銷售人員。

We're doing well. We're making investments in our business. We think that we can attract and win some really good talent. We want to make sure we get the best talent. And then once we get that best talent, we want to make sure that our system of supporting and ramping them gives them the very, very best chance of being really successful here and just want to match that up as well as we can over the next -- the back half of this year, and that might extend a little bit into the first part of next year as well.

我們做得很好。我們正在對我們的業務進行投資。我們認為我們可以吸引並贏得一些非常優秀的人才。我們要確保我們得到最優秀的人才。然後，一旦我們獲得了最優秀的人才，我們希望確保我們的支持和培養他們的系統能夠為他們提供非常、非常好的機會，讓他們在這裡取得真正的成功，並希望在接下來的時間裡盡可能地匹配他們- 今年下半年，這也可能會延伸到明年上半年。

Our next question comes from Samir Patel with Askeladden Capital Management.

我們的下一個問題來自 Askeladden Capital Management 的 Samir Patel。

I wanted to ask a little bit about the new credit facility, $70 million is a pretty big amount, especially when combined with the cash on your balance sheet. Your largest acquisition to date, I think, was Strive, which wasn't really that big compared to that facility. So I was wondering, Paul, if you could just dive a little bit deeper into how you think about capital allocation over the next few years, whether that facility is just sort of there is a nice to have in case or if there's actually something you kind of tend to use it for?

我想問一下有關新信貸額度的問題，7000 萬美元是一個相當大的數額，尤其是與資產負債表上的現金結合使用時。我認為，你們迄今為止最大的一筆收購是 Strive，與那家工廠相比，它並沒有那麼大。所以我想知道，保羅，你是否可以更深入地探討一下你對未來幾年資本配置的看法，這種機制是否只是一種很好的方式，以防萬一，或者你是否真的有一些東西有點傾向於用它做什麼？

Yes. Samir, good to hear from you. So first of all, a big thanks to Derek Hatch for getting all of that put in place. We didn't just go for an increase in our credit facility to have -- we're expected to generate a lot of cash, as you know, and weren't just looking for a larger credit facility just to have the comfort of having a larger credit facility. We think that there's an opportunity in this environment to be potentially more acquisitive.

是的。薩米爾，很高興收到你的來信。所以首先，非常感謝 Derek Hatch 讓所有這些都到位。我們不只是尋求增加我們的信貸額度——如你所知，我們預計會產生大量現金，而且不只是為了安心地尋求更大的信貸額度更大的信貸額度。我們認為在這種環境下有機會變得更具收購性。

And of course, we have a great organic growth story and strategy, I believe, a lot of the other numbers we're talking about that we believe we can achieve would -- we don't think really require a lot of M&A. And at the same time, there could be some opportunities to do some things that could be exciting and could really be accelerants to what we're doing. And so we wanted to get ready so that if things are in place if and when we were to find and discuss some things like that.

當然，我們有一個偉大的有機增長故事和戰略，我相信，我們正在談論的許多其他數字，我們相信我們可以實現——我們認為真的不需要大量的併購。同時，可能會有一些機會去做一些令人興奮的事情，並且真的可以促進我們正在做的事情。因此，我們希望做好準備，以便在一切就緒的情況下以及何時找到並討論類似的事情。

And then we also -- we're grateful to our Board that we were able to replenish our authorization to repurchase shares. And we've done a decent amount of that over the last 4 quarters as well and would expect that we would continue to use our cash wisely for that, for M&A and also just to fund operations to make sure we're making all the best decisions possible to grow revenue. So nothing to share with you today other than we're glad we have that in place. And hopefully have more to talk about the future.

然後我們也——我們感謝我們的董事會，我們能夠重新授權回購股票。我們在過去 4 個季度也做了相當多的事情，我們希望我們會繼續明智地使用我們的現金，用於併購，也只是為運營提供資金，以確保我們做到最好可能增加收入的決定。因此，除了我們很高興我們已經準備就緒之外，今天沒有什麼可以與您分享的。希望有更多關於未來的話題。

Okay. And then I don't think -- I'm sure you're going to disclose it in a filing, but Steve, do you have the spread of SOFR on that facility?

好的。然後我不認為 - 我確定你會在文件中披露它，但是史蒂夫，你有 SOFR 在那個設施上的傳播嗎？

Those will be on our 8-K tomorrow.

那些將在我們明天的 8-K 上。

Yes. The 8-K is coming out tomorrow on that. It's a varying amount depending on some of the covenants. But it's like -- we're going to be like the 175 bps, 185 bps. It's like we start out a SOFR plus 150 bps, that's where we anticipate being. And then it goes based on our leverage ratio, it will go up from there, like SOFR plus 175 bps to SOFR [plus 2]. But -- we will start at SOFR plus 150 bps.

是的。 8-K 將於明天發布。根據某些契約，金額會有所不同。但這就像——我們將成為 175 個基點、185 個基點。這就像我們開始 SOFR 加 150 個基點，這就是我們預期的位置。然後根據我們的槓桿率，它會從那裡上升，比如 SOFR 加 175 個基點到 SOFR [加 2]。但是——我們將從 SOFR 加 150 個基點開始。

Okay. That makes sense. And Paul, going back to the M&A comment. I mean, how do you think about sort of financial guardrails that you're going to spend that much capital on M&A, right? I think you guys have talked about this, but if you run a DCF on your stock, it should be worth [$1,800] or something like that. Obviously, there's a tremendous amount of accretion to be had just by buying back your stock.

好的。這就說得通了。保羅，回到併購評論。我的意思是，你如何看待你將在併購上花費那麼多資金的那種財務護欄，對吧？我想你們已經談過這個，但如果你對你的股票進行 DCF，它應該值 [1,800 美元] 或類似的東西。顯然，只要回購你的股票，就會有大量的增值。

I kind of understand the rationale or doing strategic deals like Strive. But just going back to the size of that credit facility kind of relative to the size of acquisitions you've made, I mean, that just seems like a lot of money, right? Like, I'm just curious how you think about sort of the returns from like what your hurdle rates are, how you think about the financial aspect of M&A?

我有點理解基本原理或進行像 Strive 這樣的戰略交易。但是回到那種相對於你所做的收購規模的信貸額度的規模，我的意思是，這似乎是很多錢，對吧？就像，我只是好奇你如何看待你的最低迴報率，你如何看待併購的財務方面？

Yes. Yes, great question. So yes, sorry it's my earlier response of not trying to leave the impression that we're going to go out and do some major multi-hundreds of millions of dollars, acquisition or anything like that. I think more likely, you would see us do things that are more consistent with what we've done with Strive and others where we're adding an important piece of capability to our clients or maybe adding some content here or there. Even to add content, we don't necessarily need to acquire we can license a lot of that.

是的。是的，很好的問題。所以，是的，抱歉，我之前的回應是不想給人留下這樣的印象，即我們將出去做一些數億美元的重大事情，收購或類似的事情。我認為更有可能的是，您會看到我們所做的事情與我們在 Strive 和其他方面所做的事情更加一致，我們正在為我們的客戶添加一項重要的功能，或者可能會在這里或那裡添加一些內容。即使是添加內容，我們也不一定需要獲得我們可以許可的很多內容。

And so -- I think having access to that additional liquidity, we think is a good thing. We were able to get that, we don't necessarily intend to use all of that.

所以——我認為能夠獲得額外的流動性，我們認為是一件好事。我們能夠得到它，我們不一定打算使用所有這些。

It gives us the maximum amount of flexibility to do -- to pursue any number of different avenues that we think would be valuable to our shareholders. It could be in the form of some tuck-in M&A or strategic M&A and it could also be in the form of expanded share repurchases in the quarters ahead. But I don't think we -- yes, I don't think we're intending to go out and lever up or do anything significant.

它為我們提供了最大的靈活性——去追求我們認為對我們的股東有價值的任何數量的不同途徑。它可能以一些合併併購或戰略併購的形式出現，也可能在未來幾個季度以擴大股票回購的形式出現。但我不認為我們 - 是的，我不認為我們打算出去槓桿或做任何重要的事情。

That makes sense. And I know the details are going to come out tomorrow, but I just -- I know one of your previous facilities had some restrictions on returning capital to shareholders. I'm just going to assume given that you just authorized $50 million put that in place that it's probably -- that at the current time you would see that facility having any restrictions as long as you stay with them the kind of EBITDA covenants and things like that?

這就說得通了。而且我知道細節將於明天公佈，但我只是 - 我知道您之前的一項設施對向股東返還資本有一些限制。我只是假設，鑑於您剛剛授權了 5000 萬美元，這可能是——目前您會看到該設施有任何限制，只要您與他們一起使用 EBITDA 契約之類的東西像那樣？

Yes. This particular -- one of the things -- that was one of the things. With our old covenants, we could actually break the covenants by purchasing shares of stock with $50 million of cash in the bank. And so one of the things that we were going out to negotiate a new deal is we wanted some flexibility to be able to use our capital without breaking covenants. So this particular -- you're right.

是的。這個特別的——其中一件事——就是其中一件事。根據我們的舊契約，我們實際上可以通過用銀行的 5000 萬美元現金購買股票來打破契約。因此，我們要談判一項新協議的其中一件事是我們希望有一定的靈活性，以便能夠在不違反契約的情況下使用我們的資金。所以這個特別的 - 你是對的。

This particular credit agreement does have some restrictions on distributions that you'll see. However, it has a great amount of flexibility as long as our leverage ratio is below 2.0 to 1. We don't have to count purchases of treasury stock as part of our distributions in that distribution. And we don't anticipate our leverage ratio getting above 2.0. So again there is a huge amount of flexibility to buy shares as we see fit without breaking our debt covenants.

這個特定的信貸協議確實對您將看到的分配有一些限制。但是，只要我們的槓桿比率低於 2.0 比 1，它就有很大的靈活性。我們不必將庫存股票的購買計算為我們在該分配中的分配的一部分。而且我們預計我們的槓桿率不會超過 2.0。因此，在不違反債務契約的情況下，我們可以靈活地購買我們認為合適的股票。

So Samir, you're always very prospective. So the answer is yes. The last agreement -- as you know, we're able to buy a lot of shares under that agreement. And this agreement is -- gives us more flexibility to acquire larger amounts.

所以薩米爾，你總是很有前途。所以答案是肯定的。最後一份協議——如你所知，我們能夠根據該協議購買大量股份。這個協議是——讓我們有更大的靈活性來獲得更大的數量。

And this concludes the Q&A session. I'd now like to turn the call back over to Paul for any closing remarks.

問答環節到此結束。我現在想將電話轉回給 Paul 以聽取任何結束語。

Well, thank you, and thanks, everybody, for your time today. We appreciate you. Thanks for tuning in. Thanks for your great questions, and we look forward to talking to you again soon. Have a good evening.

嗯，謝謝大家，謝謝大家今天的時間。我們感謝你。感謝您收看。感謝您提出的重要問題，我們期待很快再次與您交談。晚上好。

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

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。