Franklin Covey Co (FC) 2025 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Franklin Covey second-quarter earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to turn the conference over to Derek Hatch, Corporate Controller. Please go ahead.

您好，感謝您的支持。歡迎參加富蘭克林柯維第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。現在，我想將會議交給公司財務總監德里克·哈奇 (Derek Hatch)。請繼續。

Thank you. Hello everyone, and thanks so much for joining us today. We appreciate having the opportunity to connect with you. As we get started, please remember that this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

謝謝。大家好，非常感謝您今天加入我們。我們很高興有機會與您聯繫。在我們開始之前，請記住本簡報包含 1995 年私人證券訴訟改革法案所定義的前瞻性陳述。

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 grow revenue; the acceptance of and renewal rates for our subscription offerings, including the all-access pass and LeaderInMe memberships; the ability of the company to hire productive sales and other client-facing 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 products; changes in the training and spending policies of the company's clients; and other factors such as governmental contracting actions that are 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.

前瞻性陳述基於管理層當前的預期，並受各種風險和不確定性的影響，包括但不限於：公司增加收入的能力；我們的訂閱服務的接受度和續訂率，包括全通行證和 LeaderInMe 會員資格；公司聘用高效的銷售人員和其他面向客戶的專業人員的能力；一般經濟狀況變化；本公司向美國證券交易委員會提交的最新 10-K 表年度報告和其他定期報告中確定和討論的政府承包行動。

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 the company's actual future performance will meet management's expectations.

其中許多情況是我們無法控製或影響的；其中任何一個因素都可能導致未來業績與公司目前預期有重大差異。並且不能保證公司未來的實際業績一定能達到管理階層的預期。

These forward-looking statements are based on management's current expectations, and we undertake no obligation to update or revise these forward-looking statements to reflect the events or circumstances after the date of today's presentation, except as required by law. With that out of the way, we'd like to turn the time over to Mr. Paul Walker, our Chief Executive Officer.

這些前瞻性陳述是基於管理層目前的預期，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報告日期之後的事件或情況的義務。說完這些，我們想將時間交給我們的執行長保羅沃克先生。

Thank you, Derek. Good afternoon, everyone. We're happy to have the opportunity to speak with you today and to share an update on the continued progress of the business. The current external economic environment is turbulent and uncertain. We're not entirely immune to what's going on in the broader economic and political environment.

謝謝你，德里克。大家下午好。我們很高興今天有機會與您交談並分享業務持續進展的最新進展。當前外部經濟環境動盪、不確定因素較多。我們並不能完全免受更廣泛的經濟和政治環境變化的影響。

However, we are pleased first, that the importance of the opportunities and challenges we help organizations achieve are mission critical to them, and our business and business model are strong. Second, we're pleased that the traction we're already achieving in the implementation of our go-to-market transformation in our Enterprise North America business is significant. And third, we're pleased that our Education business continues to be strong.

然而，我們首先感到高興的是，我們幫助組織實現的機會和挑戰的重要性對他們來說至關重要，而且我們的業務和商業模式非常強大。其次，我們很高興看到，我們在北美企業業務行銷轉型實施過程中已經取得了顯著進展。第三，我們很高興看到我們的教育業務繼續保持強勁。

As a result, we continue to be confident in the actions we've undertaken to accelerate future revenue growth. And with this growth in revenue, we also expect to achieve significant growth in adjusted EBITDA and cash flow. Over the next few minutes, I'd like to briefly address the following questions you can see shown on slide 4.

因此，我們對於所採取的加速未來收入成長的行動仍然充滿信心。隨著營收的成長，我們也預計調整後的 EBITDA 和現金流也將大幅成長。在接下來的幾分鐘裡，我想簡要回答幻燈片 4 中顯示的以下問題。

The first question is what are the areas in which we have been seeing some impact from the external environment? I don't want to lay those out.

第一個問題是我們在哪些領域看到了外在環境的影響？我不想把這些擺出來。

Second, what are the key metrics that reflect both the continued underlying strength and durability of our business model and the significant traction we're already achieving in the implementation of our new go-to-market acceleration actions in our North America Enterprise business?

其次，哪些關鍵指標可以反映我們商業模式的持續優勢和持久性，以及我們在北美企業業務中實施新的上市加速行動時已經取得的重大進展？

And then the third question I want to answer, lay out an answer, is what are the key factors that are driving the continued strength and growth in our Education business?

然後我想要回答的第三個問題是，推動我們的教育業務持續強勁和成長的關鍵因素是什麼？

So let's get into each of these. First, what are the areas in which we've been seeing some of the impact from the external environment?

因此讓我們逐一討論。首先，我們在哪些領域看到了外在環境的影響？

While we feel good about progress across the vast majority of our business, we are experiencing direct and indirect impact from the actions being taken by the federal government and by the resultant economic uncertainty.

雖然我們對絕大多數業務的進展感到滿意，但聯邦政府採取的行動以及由此產生的經濟不確定性給我們帶來了直接和間接的影響。

And while this impact is on the margin for our overall business, nevertheless, it is impacting our revenue growth in the year and is the primary reason why our results will be down this year compared to expectations.

雖然這種影響對於我們的整體業務來說是很小的，但它確實影響了我們今年的營收成長，也是今年我們的業績低於預期的主要原因。

We're seeing the effect primarily in the areas you can see shown on slide 5. The first is in our Government business. Roughly 6% or [17 million] of our total business is in some way tied to governmental entities such as the Department of Defense, Veterans Affairs, and state and local entities.

我們主要在投影片 5 所示的區域看到其效果。第一個是我們的政府業務。我們總業務的約 6% 或 [1700 萬] 以某種方式與國防部、退伍軍人事務部以及州和地方實體等政府實體相關。

Approximately $5 million in government revenue has already been canceled or postponed as the federal government looks to cut spending in nearly every category. We expect government revenues to be down by at least $5 million this year compared to the low end of our original guidance.

由於聯邦政府希望削減幾乎所有類別的開支，大約 500 萬美元的政府收入已經被取消或推遲。我們預計，今年的政府收入將比我們最初預期的低端減少至少 500 萬美元。

The second area in which we're seeing some impact from these same government actions and trade tensions is in our International Direct and Licensee operations. A significant portion of this impact is being felt in China, where the threat of escalating tariffs and other potential factors and political factors is causing a sensitivity by national and even local companies in China to being viewed as doing business with US firms.

我們看到這些政府行動和貿易緊張局勢產生影響的第二個領域是我們的國際直接和授權業務。這種影響很大一部分在中國顯現，關稅升級的威脅以及其他潛在因素和政治因素導致中國國有企業甚至地方企業對與美國公司做生意感到敏感。

In a small number of cases, we've also had clients in Europe and Canada postpone or cancel engagements either as a defensive or nationalistic response to the threat or the reality of tariff actions or as a response to the uncertainty of the economic conditions in their own country.

在少數情況下，我們也遇到歐洲和加拿大客戶推遲或取消合作的情況，這要么是為了應對關稅行動的威脅或現實，要么是為了採取防禦性或民族主義的應對措施，要么是為了應對本國經濟狀況的不確定性。

While these pressures have not been widespread, they are having an impact on the margin, and we expect that they could result in our international revenues being down by as much as $4 million compared to the low end of our guidance this year.

儘管這些壓力尚未普遍存在，但它們對利潤率產生了影響，我們預計，這些壓力可能導致我們的國際收入與今年預期的低端相比下降高達 400 萬美元。

Third, we see the potential for some impact in our Education business. To date, we've seen little measurable impact from concerns about the potential disruption of the Department of Education. And I think it's important to note that almost all of our education revenue comes from state-level funding. We sell to schools and districts and not to the Department of Education.

第三，我們看到了對我們的教育業務產生一些影響的潛力。到目前為止，我們還沒有看到對教育部可能受到干擾的擔憂產生任何可衡量的影響。我認為值得注意的是，我們幾乎所有的教育收入都來自州級的資助。我們的產品銷售給學校和學區，而不是教育部。

However, because the Department of Ed has historically provided approximately 14% of state-level education funding, we're mindful that uncertainty about potential federal-level changes within the Department of Ed could cause some uncertainty at the state level, which could slow down schools' speed of decision making this spring. We think this could have as much as a $3 million impact to education revenue. While we haven't yet experienced any real negative impact here, we are monitoring the situation closely.

然而，由於教育部歷來提供約 14% 的州級教育資金，我們注意到，教育部內部潛在的聯邦層級變化的不確定性可能會導致州級出現一些不確定性，這可能會減慢學校今年春季的決策速度。我們認為這可能會對教育收入產生高達 300 萬美元的影響。雖然我們還沒有感受到任何真正的負面影響，但我們正在密切關注情況。

Looking at a little bit into the future, ultimately, it appears that any funding changes at the federal level are likely to be reallocated to the state level and from there to the locals and school districts -- local schools and districts to which we sell, but short-term disruption is a possibility.

展望未來，最終看來，聯邦層級的任何資金變化都可能會重新分配給州一級，然後再分配給地方和學區——我們向其銷售產品的地方學校和學區，但短期中斷是可能的。

Finally, the same government-related actions also have the potential to create some headwinds for some of our clients and we in the United States. And we think that this could create an approximately $3 million of additional impact here.

最後，同樣的政府相關行動也有可能為我們的一些客戶和我們在美國帶來一些阻力。我們認為這可能會產生約 300 萬美元的額外影響。

So let me now speak to how this translates into our revised guidance for the year. First, I would just say that the objectives of our go-to-market transformation that we've talked about in the last few calls remain unchanged.

現在讓我來談談這將如何轉化為我們今年的修訂指導。首先，我想說的是，我們在過去幾次電話會議中談到的市場轉型目標保持不變。

Despite the on the margin interruptions in revenue in our government and international operations that I just described, the engines in our Enterprise division in North America and in our Education business remain strong and durable. Our go-to-market transformation is tracking a bit ahead of expectation and I want to talk about that here in a minute.

儘管正如我剛才所述，我們的政府和國際業務的收入出現了一定程度的中斷，但我們北美企業部門和教育業務的引擎仍然強勁而持久。我們的市場轉型進展略超前於預期，我想稍後就此談一談。

And our go-to-market transformation is expected to drive significant acceleration of our overall company revenue growth, moving us from single digit to double digit revenue growth in the coming years. And with significant -- a significant flow through this incremental revenue to increases in adjusted EBITDA and cash flow.

我們的市場轉型預計將推動公司整體營收成長的大幅加速，在未來幾年內將我們的營收成長從個位數增加至兩位數。並且透過這項增量收入顯著增加了調整後的 EBITDA 和現金流。

With that said, due to the impacts of the government actions just outlined, we are adjusting our guidance for this fiscal year.

話雖如此，由於剛才概述的政府行動的影響，我們正在調整本財年的指導方針。

As shown on slide 6, last year we achieved revenue of $287.2 million, generating adjusted EBITDA of $55.3 million. Our original guidance for fiscal '25 provided that at the low end we would grow revenue by approximately $8 million and generate adjusted EBITDA of $40 million with the reduction from the prior year reflecting the $16 million of incremental growth investments being made this year.

如投影片 6 所示，去年我們實現了 2.872 億美元的收入，調整後的 EBITDA 為 5,530 萬美元。我們對 25 財年的原始指導規定，我們的收入將至少增加約 800 萬美元，調整後的 EBITDA 將達到 4,000 萬美元，而上年的減少則反映了今年 1,600 萬美元的增量成長投資。

Due to the impact of government actions we just discussed, we now expect revenue will come in between $275 million and $285 million or $7 million or 2.5% lower than last year and $15 million or 5% lower than the low end of our original guidance in constant currency.

由於我們剛剛討論過的政府行動的影響，我們現在預計收入將在 2.75 億美元至 2.85 億美元之間，比去年低 700 萬美元或 2.5%，比我們最初預期的低端低 1500 萬美元或 5%（按固定匯率計算）。

With this, we expect adjusted EBITDA to be between $30 million and $33 million, primarily reflecting the gross profit we expect to be lost related to the decline in revenue, again, related to the government actions previously discussed.

因此，我們預計調整後的 EBITDA 將在 3,000 萬美元至 3,300 萬美元之間，主要反映了我們預計與收入下降相關的毛利損失，這同樣與先前討論過的政府行動有關。

While the $16 million of incremental growth investments were always going to have a direct impact on this year's adjusted EBITDA, we expected they would establish a solid foundation for accelerated future growth and we still do.

雖然 1,600 萬美元的增量成長投資總是會對今年的調整後 EBITDA 產生直接影響，但我們預計它們將為未來加速成長奠定堅實的基礎，而且我們仍然這麼認為。

As noted, we're pleased with the traction we're getting and both fully committed to these investments and confident they will do exactly what they were expected to do, which is to accelerate our growth. We of course did not anticipate the impact of the government actions but are taking quick action to reduce our cost structure in government, in our international operations, and other areas of our business.

如上所述，我們對所取得的進展感到滿意，並全力致力於這些投資，並相信它們將發揮預期的作用，即加速我們的成長。當然，我們沒有預料到政府行動的影響，但我們正在迅速採取行動，降低政府、國際業務和其他業務領域的成本結構。

We expect these actions will partially offset some of the government-related impact and result in an even higher percentage of incremental revenue flowing through to adjusted EBITDA next year. Therefore, we expect this will be an approximate one-year step back and that next year, adjusted EBITDA will be back to approaching where we thought it would be this year. We'll provide specific fiscal '26 revenue and adjusted EBITDA guidance in November, which has been our pattern.

我們預計這些措施將部分抵銷政府相關影響，並導致明年流入調整後 EBITDA 的增量收入比例更高。因此，我們預計這將是大約一年的倒退，並且明年調整後的 EBITDA 將回到我們預計今年的水平。我們將在 11 月提供具體的 26 財年收入和調整後的 EBITDA 指引，這是我們的慣例。

So having talked about the external environment and our updated guidance for the year, I'd now like to turn to a different topic, which is to address the strength we're seeing across the majority of our business right now.

因此，在談論了外部環境和我們今年的最新指引之後，我現在想談談另一個話題，即討論我們目前在大部分業務中看到的強勁勢頭。

Despite the potential near-term impact in the areas just discussed, the strategic strength of our overall business and our business model continues to be evident. We're also pleased with the significant early traction, as I mentioned, that we're achieving in our new go-to-market in our Enterprise North America.

儘管剛才討論的領域可能會受到短期影響，但我們整體業務和業務模式的策略實力仍然顯而易見。正如我所提到的，我們對我們在北美企業新市場中取得的早期顯著進展感到非常高興。

I'd like to first address the strength of our strategic position and business model. Our strategic strength derives from the importance of the opportunities and challenges we help organizations address, opportunities and challenges which are very durable for clients in good times and in more challenging times.

我想先談談我們的策略地位和商業模式的優勢。我們的策略優勢源自於我們幫助組織應對的機會和挑戰的重要性，這些機會和挑戰對客戶來說無論是在順境或逆境都是非常持久的。

This strategic strength and the strength of our business model continue to be reflected in the following metrics in our North America Enterprise business as you can see shown on slide 7. First, our revenue continues to renew at high rates.

正如您在投影片 7 中看到的那樣，這種策略優勢和商業模式的優勢繼續反映在我們的北美企業業務的以下指標中。首先，我們的收入持續以高速度更新。

Apart from the government-action-related headwinds we've addressed, a majority of our clients continue to expand and renew even amid a more uncertain environment. This strong retention is driven in part by our clients' continued interest in expanding the duration of their contracts with us to ensure the ongoing achievement of their critical objectives. At the end of the second quarter, 61% of our subscription revenue is under a multi-year contract, equaling the high percentage we'd achieved at this same point last year.

除了我們已經解決的與政府行動相關的阻力之外，即使在更不確定的環境中，我們的大多數客戶仍在繼續擴張和更新。這種強勁的保留率部分是由於我們的客戶持續有興趣延長與我們簽訂的合約期限，以確保持續實現他們的關鍵目標。截至第二季末，我們 61% 的訂閱收入來自多年期合同，與去年同期達到的高比例持平。

Second, our clients continue to expand with us. Over time, the average revenue per all-access pass clients has expanded significantly from $39,000 to more than $85,000, reflecting both the growth of the populations being served within our clients and the expansion of incremental offerings that they purchase.

第二，我們的客戶與我們一起不斷擴大。隨著時間的推移，每位全通行證客戶的平均收入已從 39,000 美元大幅增加到 85,000 美元以上，這反映了我們服務的客戶群的成長以及他們購買的增量產品的擴展。

The third area of strength is that our clients are continuing to purchase significant amounts of services to help them achieve their mission-critical objectives. Despite the uncertainty, it is significant that excluding our Government business, in our business in the United States and Canada, our advanced bookings for new services have increased 5% year-to-date over the same period last year.

第三個優勢是我們的客戶正在繼續購買大量服務以幫助他們實現關鍵任務目標。儘管存在不確定性，但值得注意的是，除政府業務外，在我們在美國和加拿大的業務中，我們新服務的預訂量今年迄今比去年同期增長了 5%。

This reflects our clients' commitments to achieving a performance outcome. Importantly, this momentum in bookings will translate into increases in services revenue in the coming quarters.

這反映了我們的客戶對實現績效成果的承諾。重要的是，預訂量的這種勢頭將轉化為未來幾季服務收入的成長。

Fourth, we're pleased with the indicators of the significant traction we're already achieving in the implementation of our new go-to-market acceleration in our Enterprise business in North America. And I'd like to talk about this here just for a couple of minutes.

第四，我們很高興看到我們在北美企業業務新的上市加速計畫實施過程中已經取得顯著進展。我想在這裡花幾分鐘談論這個問題。

This is an initiative into which, as previously discussed, we've invested an incremental $16 million this year. It's been just 90 days since we launched our transition and the traction and early results we're seeing are very encouraging.

正如前面所討論的，我們今年已為這項計劃追加投資 1,600 萬美元。我們啟動轉型僅 90 天，我們所看到的進展和早期成果非常令人鼓舞。

The focus of our go-to-market transition is on achieving significant increases in two key outcomes which will drive our accelerated growth. The first objective is to significantly increase our new logo sales, and this is off to a very good start.

我們市場轉型的重點是實現兩個關鍵成果的大幅成長，這將推動我們的加速成長。第一個目標是大幅提高我們新標誌的銷量，而這已經是一個很好的開始。

We want more new logos in the second quarter both in terms of dollars generated and number of clients than in any of the last five quarters and we expect another strong quarter ahead in Q3. We exceeded our new logo plan by more than 50% in the second quarter.

我們希望第二季的新標誌無論是在創造的收益方面還是在客戶數量方面都比過去五個季度中的任何一個季度都要多，並且我們預計第三季將再次表現強勁。我們在第二季度超出了新標誌計劃的50％以上。

And while we did not start the transition until the second quarter, we're pacing to achieve approximately 40% growth in new logo sales for the year. Importantly, we've also had a higher purchase of services by new all-access past clients this past quarter than we've seen in previous quarters; I'm going to come back and touch on that in just a second.

雖然我們直到第二季才開始轉型，但我們計劃在今年實現新標誌銷售額約 40% 的成長。重要的是，上個季度，我們全通道新客戶購買的服務數量較前幾季有所增加；我馬上就回來討論這個問題。

Our second objective is to increase our expansion within existing client organizations; this is also off to a strong start. The second quarter was a strong quarter in terms of client expansions, and we beat our planned expansion target by 8%.

我們的第二個目標是擴大我們在現有客戶組織內的擴張；這也是一個好的開始。第二季在客戶擴張方面表現強勁，我們超越了計畫的擴張目標 8%。

Underpinning the strength of this early traction are two important factors. First, that our new go-to-market organizational structure is fully aligned, fully staffed, and working. Every role is filled, and we've added top-tier talent and critical roles to go along with the already tremendous talent we had in place.

兩個重要因素支撐了這個早期牽引力。首先，我們新的市場組織結構已經完全協調、人員齊全並正常運作。每個職位都已填補，我們還增加了頂級人才和關鍵職位，以配合我們已經擁有的大量人才。

All 44 of our new logo sales people are in place today: 42 of the 44 were in place by December 1, and the other two, so all 44 were in place by February 1, which is a full month ahead of what our planned staffing plan indicated.

我們所有 44 名新標誌銷售人員今天都已到位：44 名銷售人員中的 42 名已於 12 月 1 日到位，另外兩名已於 2 月 1 日到位，因此所有 44 名銷售人員均已到位，這比我們計劃的人員配置計劃提前了整整一個月。

21 of the 24 brand new logo hunting sales people closed business in the second quarter. 21 of 24 closed business in the second quarter, which is their first quarter. That's an unprecedented ramp speed for us.

24 名尋找新標誌的銷售人員中有 21 名在第二季結束業務。 24 家公司中有 21 家在第二季（也就是成立的第一季）結束營業。對我們來說，這是一個前所未有的成長速度。

And our new logo pipeline exceeded plan by 30%. And our conversion rates were 300 basis points above our targeted conversion rates in the second quarter. The second factor underpinning our traction and momentum is that the important investments we've been making into content, technology, and delivery capabilities over the past years are enabling us to serve even more clients more broadly and more effectively than ever before.

我們的新標誌管道超出計劃30％。我們的轉換率比第二季的目標轉換率高出 300 個基點。支撐我們發展動能和動力的第二個因素是，過去幾年我們在內容、技術和交付能力方面進行的重要投資使我們能夠比以往更廣泛、更有效地服務更多客戶。

As I mentioned a minute ago, we're also seeing a strong attachment rate of services to new logo wins and this is a bit of a shift for us. We're intentionally driving this with these new logo sellers, and this is not only increasing deal size, but we anticipate it will also boost client retention as our clients who buy services renew at higher rates.

正如我剛才提到的，我們也看到服務對新標誌的重視率很高，這對我們來說是一個轉變。我們有意與這些新標誌賣家合作，這不僅可以增加交易規模，而且我們預計，隨著購買服務的客戶以更高的價格續約，它還將提高客戶保留率。

I'd like to share a quick win story from the second quarter that highlights the wind of a new logo that also had more of these services attached. We closed a large hospital system in the Midwest for $253,000 in annual contract value. So that's a very nice new logo win for us.

我想分享第二季的一個快速成功故事，突顯了新標誌的風采，並且附帶了更多此類服務。我們關閉了中西部一家大型醫院系統，合約年價值為 253,000 美元。所以對我們來說，這是一個非常好的新標誌勝利。

And this contract had -- it was a $144,000 all-access-pass subscription with $109,000 in services attached to that to that subscription. The deal, this is interesting, the deal began with interest from the hospital system CEO, and he'd asked for a single keynote on the speed of trust, and we quickly expanded that initial interest into a rollout that covered a few 100 of their leaders to instil trust across teams and within patients in each of their hospitals.

這份合約是一份價值 144,000 美元的全通行證訂閱，其中包含價值 109,000 美元的附加服務。這筆交易很有趣，它始於醫院系統執行長的興趣，他要求就信任速度發表一個主題演講，我們很快就將最初的興趣擴展到數百名領導者，以在每家醫院的團隊之間以及患者之間建立信任。

This was -- this deal was closed in just 44 days by one of our new logo sellers who was new in role. It was her third month in seat. Finally, I'd like to as I touched briefly on a minute ago, just discuss for a second the ongoing strength we're seeing in our Education business.

這是——這筆交易是由我們的一位新上任的標誌銷售人員在短短 44 天內完成的。這是她任職的第三個月。最後，正如我剛才簡要提到的那樣，我想稍微討論一下我們在教育業務中看到的持續增長的實力。

As shown on slide 8, education revenue grew 3% in the second quarter and is up 7% year-to-date. Importantly, year-to-date invoiced amounts in Education are up 13%, positioning us well for the seasonally stronger second half.

如投影片 8 所示，教育收入在第二季成長了 3%，今年迄今已成長了 7%。重要的是，今年迄今為止教育領域的發票金額增長了 13%，為我們迎接季節性強勁的下半年做好了準備。

We're seeing strong demand for LeaderInMe driven by success in delivering the outcomes that educators, parents, and communities care about such as leadership development, student engagement, and character building. This strong demand is fueling our transition from selling initially to individual schools to selling to entire districts. And we now in a handful of cases are serving statewide contracts.

我們看到市場對 LeaderInMe 的強勁需求，其驅動力在於成功實現了教育工作者、家長和社區所關心的成果，例如領導力發展、學生參與和品格培養。強勁的需求推動了我們從最初向個別學校銷售轉變為向整個學區銷售。現在，我們在少數情況下正在履行全州範圍的合約。

We're pleased there are now 7,800 LeaderInMe schools around the world, and we're just getting started in growing that number to even larger heights. So we feel we feel quite good about the progress that's being made with the transformation of our North America operation.

我們很高興現在全世界已經有 7,800 所 LeaderInMe 學校，而且我們才剛開始將這個數字擴大到更高的水平。因此，我們對北美業務轉型所取得的進展感到非常滿意。

We feel good about the continued momentum in education, and with that I'd like to turn the time over to Steve and ask Steve to share a little bit more detail on our financial results, also share a little bit of specific Q3 guidance.

我們對教育領域持續的發展勢頭感到滿意，因此我想將時間交給史蒂夫，請史蒂夫分享一些有關我們財務業績的細節，並分享一些具體的第三季度指引。

Thank you, Paul. Good afternoon, everyone. It's a pleasure to be with you today. You'll find on slides 9 through 12 and in the appendix, the second quarter financial details I've typically shared verbally on these calls.

謝謝你，保羅。大家下午好。我很高興今天能和你們在一起。您將在第 9 至 12 張投影片和附錄中看到我通常在這些電話會議上口頭分享的第二季財務細節。

But today I'll take the time to highlight a few encouraging trends we're seeing in the business that continue to spur our confidence moving forward. First, a few high-level financial results. The second quarter revenue was $59.6 million, or $60.1 million in constant currency, slightly below the $61.3 million we achieved in Q2 last year. With more than all of the difference reflecting the impact of the government-related cancellations in the last 60 days.

但今天我想花點時間強調我們在業務中看到的一些令人鼓舞的趨勢，這些趨勢將繼續激發我們前進的信心。首先，有一些高水準的財務結果。第二季的營收為 5,960 萬美元，以固定匯率計算為 6,010 萬美元，略低於去年第二季的 6,130 萬美元。其中大部分差額都反映了過去 60 天內政府相關取消的影響。

Adjusted EBITDA for the quarter was $2.1 million, or $2.6 million in constant currency, landing at the top end of our expectations despite the government disruptions. Gross margin and SG&A were in line with projections including the second quarter share of our $16 million in incremental growth investments in North America.

本季調整後的 EBITDA 為 210 萬美元，以固定匯率計算為 260 萬美元，儘管受到政府乾擾，但仍達到我們預期的最高水準。毛利率和銷售、一般及行政費用符合預期，其中包括第二季我們在北美 1,600 萬美元增量成長投資中的份額。

We feel good about the results given the canceled government revenue and the related shortfall in international sales. And it being the first quarter of our go-to-market transformation Paul just described. Second, I'd like to highlight that we're seeing continued strength in the number and value of multi-year contracts being signed.

考慮到政府收入取消和相關的國際銷售缺口，我們對結果感到滿意。這正是保羅剛才所描述的我們的市場轉型的第一季。其次，我想強調的是，我們看到簽署的多年合約的數量和價值持續增加。

In fact, additional additions to unbilled deferred revenue, which reflects multi-year contracts secured but not yet invoiced, was up 10% in the second quarter and is also up 10% for the first half of this year compared to the first half last year. This momentum is also evident in our all-access-pass contracts in North America.

事實上，未開票遞延收入的額外增加（反映已簽訂但尚未開票的多年期合約）在第二季度增長了 10%，今年上半年與去年上半年相比也增長了 10%。這一勢頭在我們北美的全通行證合約中也得到了體現。

As at the end of Q2, the percentage of all-access-pass contracts that are multi-year was a strong 55%. And as Paul mentioned, the percentage of our subscription revenue associated with this multi-year agreements was also a strong 61%. These results reflect our clients' long-term commitment and belief in the value and strategic impact of our solutions.

截至第二季末，多年期全通行證合約的比例高達 55%。正如保羅所提到的，與此多年期協議相關的訂閱收入百分比也高達 61%。這些結果反映了我們的客戶對我們解決方案的價值和策略影響的長期承諾和信念。

In the midst of a more challenging macroeconomic environment, we're also pleased that the vast majority of our clients are renewing their contracts, expanding their usage, and expressing confidence in the work we're doing together. This gives us continued confidence in both the future trajectory of the business and the early returns we're seeing from a go-to-market transformation.

在更具挑戰性的宏觀經濟環境中，我們也很高興看到絕大多數客戶都在續約、擴大使用範圍，並對我們共同進行的工作表現出信心。這使我們對於業務的未來發展以及從市場轉型中看到的早期回報充滿信心。

Third, as Paul mentioned, where our services booking rate in the United States and Canada, excluding government, is up 5% year over year. This is a strong indicator that we're not only landing new clients but we are a trusted partner in delivering solutions that drive real outcomes and lasting value.

第三，正如保羅所提到的，我們在美國和加拿大（不包括政府）的服務預訂率年增了 5%。這有力地表明，我們不僅吸引了新客戶，而且值得信賴的合作夥伴，能夠提供能夠帶來實際成果和持久價值的解決方案。

Fourth, we're seeing good momentum in our education business, particularly in the number of large state and district level opportunities we're actively pursuing. This pipeline strength, together with the base of 70-800 schools gives us confidence in the demand for the kind of outcomes our LeaderInMe solution delivers and provides confidence in continued growth as we move through the second half of the year, which is historically education's strongest period.

第四，我們的教育業務發展勢頭良好，特別是我們正在積極爭取大量州和地區級的合作機會。這種通路實力，加上 70-800 所學校的基礎，使我們對 LeaderInMe 解決方案所提供的成果的需求充滿信心，並對我們在下半年（歷史上教育行業最強勁的時期）繼續增長充滿信心。

Finally, our business continues to produce strong, reliable cash flow. And today we still have more than $100 million in liquidity. We've continued to use this strength to return value to shareholders. From 2022 to today, we have invested approximately $105 million, or 83% of free cash flow, to purchase 2.6 million shares.

最後，我們的業務持續產生強勁、可靠的現金流。今天我們仍然有超過1億美元的流動資金。我們將繼續利用這項優勢為股東帶來回報。從 2022 年到今天，我們已投資約 1.05 億美元，即 83% 的自由現金流，購買了 260 萬股。

In the first half of this year, we've invested $14.7 million to purchase 397,000 shares. We expect to continue allocating excess cash toward accelerating growth, M&A activities, and share purchases. We remain committed to being disciplined steward of capital while staying focused on driving long-term value creation.

今年上半年，我們已投資1,470萬美元購買39.7萬股。我們預計將繼續分配多餘的現金用於加速成長、併購活動和股票購買。我們將繼續致力於成為嚴謹的資本管理者，同時專注於推動長期價值創造。

Now just a little bit more on guidance. As Paul shared earlier, our revenue guidance for the year to be between $275 million and $285 million, with adjusted EBITDA between $30 million and 33 million dollars in constant both in constant currency.

現在再提供一點指導。正如保羅之前所說，我們今年的預期收入在 2.75 億美元至 2.85 億美元之間，調整後的 EBITDA 在 3000 萬美元至 3300 萬美元之間（均以固定匯率計算）。

Our guidance for the third quarter is that revenue will be between $67 million and $71 million and adjusted EBITDA will be between $4 million and 6.5 million, Reflecting both the expected continued revenue disruption from government-related activities impacting our direct government, international education, and other revenues, as well as the third quarter's portion of our growth investments. So Paul, back to you.

我們對第三季的預期是，營收將在 6,700 萬美元至 7,100 萬美元之間，調整後的 EBITDA 將在 400 萬美元至 650 萬美元之間，這反映了政府相關活動預計會持續造成收入中斷，從而影響我們的直接政府、國際教育和其他收入，以及第三季的成長投資份額。那麼保羅，回到你這裡。

Thanks, Steve. Thanks for taking us through that and we'll now invite the operator to open the line for questions as we, do just want to again thank everybody for being here today and look forward to answering your questions.

謝謝，史蒂夫。感謝您帶我們了解這一點，現在我們請接線員開通問答熱線，我們只想再次感謝大家今天的到來，並期待著回答你們的問題。

Thank you. (Operator Instructions) Alex Paris, Barrington Research.

謝謝。（操作員指示）Alex Paris，Barrington Research。

Hi guys, thanks for taking my questions.

大家好，感謝你們回答我的問題。

Good to talk to you today.

很高興今天和你談話。

Yes, same here. I guess we'll start with the external impacts, DOGE and tariff related and so on. I think I understand that there's direct federal government agencies in [laws] business, there's impact on your international business because of the response to the increased tariff talk from this end, and there's unexpected impact on your Education business as well.

是的，我也一樣。我想我們將從外部影響開始，DOGE和關稅相關等等。我認為我了解到聯邦政府機構直接參與[法律]業務，由於對這方面的關稅增加的回應，這對您的國際業務產生了影響，而且對您的教育業務也產生了意想不到的影響。

So focusing first on the federal government. I think you said in your prepared comments that it's 6% or $17 million is government revenue on a full year basis DOD, VA, and then state and local, is that correct?

因此首先關注聯邦政府。我記得您在準備好的評論中說過，全年政府收入中 6% 或 1700 萬美元是國防部、退伍軍人事務部以及州和地方政府的收入，對嗎？

Yeah, but the majority of it being federal, yeah.

是的，但其中大部分是聯邦的，是的。

Okay. That's what I was going to ask, the majority is federal and you called out DOD and VA, are there any other agencies that we should be aware of?

好的。這就是我要問的，大多數是聯邦政府的，你提到了國防部和退伍軍人事務部，還有其他我們應該注意的機構嗎？

Yeah, so we do work with pretty we have USAID -- has been an agency we've had a long rela -- had a long relationship with in the past. We've done stuff with Health and Human Services. We've had a nice government business for a long time doing work across a number. We do work with the Treasury and work with Congress in the past, so it's it's been fairly broad over the years, Alex.

是的，我們確實與美國國際開發署合作，該機構與我們過去有著長期的關係。我們已經與衛生和公眾服務部合作進行了一些工作。我們長期以來一直與許多政府機構合作，進行良好的工作。我們確實與財政部合作過，過去也與國會合作過，所以多年來我們的合作相當廣泛，亞歷克斯。

Got you. And then you said, I think Steve said, that the entire year-over-year decline in revenue was due to canceled government contracts and then the related impact on your other businesses.

明白了。然後你說，我想史蒂夫說過，整個同比收入的下降是由於政府合約取消以及對你其他業務的相關影響。

Yes --

是的--

Yeah --

是的--

That's right.

這是正確的。

You --

你--

You're particularly -- in the impact was reflected in Q2 of the cancellations just in the last 60 days.

特別是——其影響反映在過去 60 天內的第二季度的取消情況中。

That's right. Got you. Alright and then on the Education -- and I obviously there's nothing you can do about that -- are there hopes to win the business back in the future? Certainly your guidance assumes that you don't win it back this year.

這是正確的。明白了。好的，那麼關於教育——顯然你對此無能為力——未來有希望重新贏得業務嗎？當然，你的指導假設你今年不會贏回來。

Yeah. So staying on Government for a second, our guidance and our -- the view right now is that we don't win that back this year. I don't see a scenario where that happens. And so what we're doing -- one of the things we're doing, is we're just taking a look at that government business.

是的。因此，讓我們繼續談論政府，我們的指導和——目前的觀點是，我們今年不會贏回這些資金。我不認為會發生這樣的情況。所以我們正在做的事情——我們正在做的事情之一就是審視政府事務。

And saying, okay, over the next bit of time here, assuming the trajectory of what's happening within the government doesn't change, how do we structure that business so that we can be as profitable there as possible on less revenue that's an action we're taking immediately. Longer term if things settle down, I mean a big part of what we do as a company is we help organizations become more efficient, get more out of their people, do more with less.

並且說，好吧，在接下來的一段時間內，假設政府內部發生的事情的軌跡不會改變，我們如何建立該業務，以便我們能夠以較少的收入在那裡獲得盡可能多的利潤，這是我們立即採取的行動。從長遠來看，如果事情安定下來，我的意思是，作為一家公司，我們所做的工作很大一部分是幫助組織提高效率，從員工身上獲得更多的產出，用更少的錢做更多的事情。

Like we have a whole set of offerings, as around execution. There could be an opportunity to get back in and help on some of those things right now, the environment is such that there's not a lot of appetite to buy anything new in the government, but I think that we'll see as we go into next year whether that looks different, but at the moment that's how we see it.

就像我們有一整套圍繞執行的產品一樣。現在可能有機會重新介入並幫助解決其中的一些問題，目前的環境是政府沒有太多興趣購買任何新東西，但我認為，我們會看到明年情況是否有所不同，但目前我們就是這樣看待的。

Got you. Thank you. And then on the education side, 86% of funding comes from state and local governments. Only a small component, 14%, comes from the federal government. Overall, I'm not saying your revenue.

明白了。謝謝。在教育方面，86%的資金來自州和地方政府。只有一小部分，14%，來自聯邦政府。總的來說，我不是說你的收入。

And that would be things like Title I and individuals with disability. What percentage of your Education division revenue comes from the Department of Education?

這些將涉及諸如第一章和殘疾人士之類的事情。您所在教育部門的收入有多少比例來自教育部？

So we don't -- the Department of Education for us is not actually a client. And so they'll dole out 14% of the of the state's budget comes through them and like you said, it is directed towards Title Is, towards some of those programs that you mentioned.

所以我們不認為教育部對我們來說其實是個客戶。因此，他們將透過他們發放 14% 的州預算，就像你說的，這筆錢將用於 Title Is 和你提到的一些項目。

And so we're not selling to them. We don't have a relationship with the Department of Education, never had. The fact that that agency is being cut in half, whatever, however far it gets cut back, that itself doesn't have any impact on us.

因此我們不向他們出售產品。我們與教育部沒有關係，從來沒有。事實上，該機構的規模被削減了一半，不管削減幅度有多大，這本身都不會對我們造成任何影響。

It's -- and we don't actually think, Alex, over time. There's not from everything that we can see right now. The dollars that have been flowing from the Department of Education to the states, we expect those dollars are still going to flow.

這是 — — 亞歷克斯，我們實際上並沒有想到，隨著時間的推移。從目前我們看到的情況來看，情況並非如此。我們預計，教育部向各州流出的資金仍將繼續流動。

They might come from a different agency than the Department of Ed. They might be as the administration is trying to actually shut down the Department of Ed, and so long term we don't actually see that creating a funding challenge for us.

他們可能來自與教育部不同的機構。他們可能是因為政府實際上正在試圖關閉教育部，所以從長遠來看，我們實際上並不認為這會給我們帶來資金挑戰。

What we're trying to highlight here in this call, it just so happens that it might throw just a bit of sand in the gears in our third and fourth quarter, which is the time of the year when schools are making decisions to start LeaderInMe, right?

我們在這次電話會議中試圖強調的是，它可能會在第三季和第四季給我們帶來一些阻礙，而每年的這個時候，學校都會決定是否要啟動 LeaderInMe，對吧？

The second half has always been our biggest half of the year. And so it's just the thought that there might be just enough uncertainty during our third and fourth quarter as the dollars are being shifted from the federal government to states that it might cause some slippage in the timing of decisions.

下半年始終是我們一年中最重要的半年。因此，我們認為，隨著資金從聯邦政府轉移到各州，第三季和第四季可能會出現足夠的不確定性，這可能會導致決策時間出現一些延誤。

Decisions in that business are usually made in school board meetings. And so if you miss a school board meeting, you're up for the next one. And there could just be enough of that. Right now we're not seeing it, really widespread at all at the moment.

該業務的決策通常在學校董事會會議上做出。因此，如果您錯過了學校董事會會議，您仍然可以參加下一次會議。這可能就足夠了。目前我們還沒有看到它，目前它還不是很普遍。

We're just trying to highlight that there's a possibility there could be a few million dollars of impact there. Generally speaking, it's really on the margin. That business is doing quite well and we expect that it will continue to be. But highlighting there is that there is that risk, that potential.

我們只是想強調，這可能會造成數百萬美元的影響。整體來說，確實處於邊緣狀態。這項業務進展良好，我們預計這種情況將持續下去。但需要強調的是，存在這種風險和潛力。

Just a couple more. So if I understand it correctly, some of these internal impacts are kind of masking the success and the traction and the trajectory, resulting from your North American Enterprise sales force restructuring.

還剩幾個。所以，如果我理解正確的話，這些內部影響掩蓋了北美企業銷售團隊重組所帶來的成功、牽引力和發展軌跡。

Just to be clear, I think in Q1, of that $16 million incremental investment, I think you spent a little bit less than $3 million in the first quarter. And I think you were expecting to spend a little bit more than $4 million in the second quarter and then $4.5 million in each Q3 and Q4 to get us to $16 million. Are we still pretty much on that schedule in terms of incremental spending?

需要明確的是，我認為在第一季度，在那 1600 萬美元的增量投資中，您在第一季度花費的金額略少於 300 萬美元。我認為您預計第二季的支出將略高於 400 萬美元，然後在第三季和第四季分別花費 450 萬美元，以達到 1600 萬美元的支出目標。就增量支出而言，我們是否仍基本按照該計劃進行？

We are like really right on that schedule. I'm looking at Steve here, he's nodding. Yeah, so that set of bets, those investments, are right on track. We've made those investments so the people are -- it's primarily people.

我們的日程安排確實完全正確。我正看著史蒂夫，他點點頭。是的，所以這一系列賭注、這些投資都是正確的。我們已經進行了這些投資，因此，投資對象主要是人。

The people are here they enroll and so that penciling out you just did of around $3 million going to $4 million and then $4 million going to $4.5 million and $4.5 million. Those are with us now and that's a conscious decision we're making here.

人們在這裡報名，所以你剛才算出的金額是 300 萬美元到 400 萬美元，然後 400 萬美元到 450 萬美元，最後是 450 萬美元。這些現在都和我們在一起，這是我們現在做出的明智決定。

We're saying we like the early momentum that we're seeing, the traction that we're beginning to see. We're only 90 days in, but we like what we're seeing and that's not an area where we want to cut back. That's the area we believe; that's the engine that pulls.

我們說我們喜歡我們看到的早期勢頭，以及我們開始看到的牽引力。我們只花了 90 天的時間，但我們對所看到的情況感到滿意，而這並不是我們想要削減的領域。那是我們所相信的領域；這就是拉動的引擎。

The company's overall growth rate higher and higher that we've talked about and that we're excited about. And so we, you know, we see making some -- doing some trimming in some other places but we don't want to trim there, we're quite pleased with what we're seeing in the early days here.

我們已經討論過的並且令我們興奮的公司整體成長率越來越高。所以，你知道，我們看到我們在其他地方進行了一些調整，但我們不想在那裡進行調整，我們對這裡早期看到的情況感到非常滿意。

Great. And then the last couple would be regarding guidance. So you kind of spelled out the guidance there in the delta from previous guidance and year over year. You gave third quarter guidance, so we have implied guidance for the fourth quarter.

偉大的。最後一對是關於指導。因此，您在某種程度上闡明了與先前的指導和同比變化中的指導。您給了第三季的指引，因此我們對第四季也給了隱含的指引。

In the text of the press release, you said that the company expects this to be a 1-year set back. And the company suggested even now we approach 2025 original 2025 expectations in 2026. So that suggests there's been a reduction in expectations in 2026 given these external factors. And then what does that do to 2027 and 2028 because you had given long term guidance through 2028 previously?

在新聞稿中，您說公司預計這將是一年的挫折。該公司甚至表示，我們將在 2026 年實現 2025 年最初的預期目標。因此，考慮到這些外部因素，這表明對 2026 年的預期有所降低。那麼這對 2027 年和 2028 年有什麼影響，因為您之前已經給了 2028 年的長期指導？

Yeah, it's a great question. I would say we're -- we will -- as has been our pattern, we're going to go ahead and update that in November as we kind of see how the next couple of quarters play out. I will say that just to -- just two more comments on your question there.

是的，這是一個很好的問題。我想說的是，我們會按照以往的模式，在 11 月更新這項數據，同時觀察接下來幾季的情況。我只想說——針對你的問題再發表兩則評論。

One, we -- as we takes -- as we expect to accelerate some of our invoicing growth and whatnot in the back half of this year and we take some of the cost, we take a look at some of the costs that aren't related to our growth, we do see ourselves next year even on modest revenue growth.

首先，我們預計今年下半年我們的部分發票成長將會加速，我們會降低部分成本，看看那些與成長無關的成本，我們確實預計明年我們的收入會適度成長。

Getting pretty good flow through on that, having had a big investment year this year and not needing to make anywhere near the same level of incremental investments next year. Plus the flow through on some of the things we would do on the cost side in the back half of this year, setting ourselves up for a good flow a good flow through year next-year.

由於今年的投資金額很大，所以明年就不需要再進行同等程度的增量投資，因此獲得了相當好的流程。再加上今年下半年我們在成本方面會做的一些事情的流程，為明年的良好流程做好準備。

Flow through like we used to have, like you've been accustomed to us having. And that's the comment about setting up next year to getting back -- to approaching getting back to where we would have been this year on the on the adjusted EBITDA side.

像我們以前那樣順其自然，就像你已經習慣我們一樣。這是關於明年調整後 EBITDA 接近今年水準的評論。

As far as the longer term outlook on revenue adjusted EBITDA, we'll give a good update on what we think in November. I will say that fundamentally, as we think about just the underlying thesis here, we still do very much believe that this is a business that there's great demand for what we're selling.

至於收入調整後的 EBITDA 的長期前景，我們將在 11 月更新我們的想法。我想說的是，從根本上來說，當我們思考這裡的基本論點時，我們仍然非常相信這是一個對我們所銷售產品有著巨大需求的業務。

Our clients need what we have. We have good strength in this business and that the transformation we're making in our North America Enterprise operation, coupled with the good momentum we've had for a long time in education that over time,

我們的客戶需要我們所擁有的東西。我們在這個業務上擁有強大的實力，而且我們在北美企業業務中正在進行的轉型，加上我們在教育領域長期以來的良好勢頭，隨著時間的推移，

This -- the revenue growth accelerates and with that we drop through revenue to increases in adjusted EBITDA and cash flow and that underlying thesis remains intact and we'll get a little more visibility,

隨著收入成長的加速，我們將收入下降到調整後的 EBITDA 和現金流的增加，而基本論點保持不變，我們將獲得更高的可見性，

We'll get -- we'll share more about what that -- when -- and when and by how much? But that's the trajectory where we still think we're on.

我們將獲得——我們將分享更多關於那是什麼——什麼時候——以及多少？但我們仍然認為我們正在走這樣的軌跡。

Okay, got you. And then lastly, I guess. Again, the positive effects are somewhat masked by the external impacts. I think you said on the last conference call, the things we should look for in terms of milestones would be size of pipeline that that's where it would show up first.

好的，明白了。最後，我想。再次，正面影響在某種程度上被外部影響所掩蓋。我想您在上次電話會議上說過，我們在里程碑方面應該尋找的是管道的規模，這是它首先出現的地方。

Growth and invoice sales, I think that's where we'd see it second. I think it was down still in Q2. I realized we're only 90 days in. And then ultimately reported revenues, whenever you could just give comment on those three milestones, or a little additional color.

成長和發票銷售，我認為這是我們第二會看到的。我認為第二季度它仍然處於下降趨勢。我意識到我們只過了 90 天。然後最終報告收入，無論何時您都可以對這三個里程碑發表評論，或提供一些額外的資訊。

You bet. So yes, growth in pipelines and just a couple of comments there as we mentioned. In our North American business our pipe -- we exceeded our pipeline target by about 30% in the second quarter. We had a better close rate than we thought.

當然。是的，管道正在增長，正如我們提到的那樣，這只是幾條評論。在我們的北美業務中，第二季我們的管道業務超出了管道目標約 30%。我們的成交率比想像的還要好。

So I think if you think about the new logo side for a minute, the factors that drive new logo are -- can we -- can our marketing organization generate more leads, more pipeline, more opportunity? Can our sales organization qualify that advance it and close it? We saw that in the second quarter rates that were above what our plan. What our plan suggested we would have been great success. So we were ahead on those.

因此，我認為，如果你稍微思考一下新標誌的方面，推動新標誌的因素是——我們的行銷組織能否產生更多的潛在客戶、更多的管道、更多的機會？我們的銷售組織是否有資格推進並完成此任務？我們發現第二季的利率高於我們的計劃。我們的計劃表明我們將獲得巨大的成功。因此我們在這方面處於領先地位。

And then on the other side. It's -- can we take the client on the expand side, can we take those clients who've now landed at greater rates, and can we expand them and retain them. And we have good, we beat our expansion plan by 8% in the quarter as well.

然後在另一邊。問題是——我們能否在擴展方面吸引客戶，我們能否以更高的價格吸引那些現在已經登陸的客戶，我們能否擴大並留住他們。我們本季的擴張計劃也超出了 8%。

That's -- that -- those happened with even with the noise we saw with some of our contracts and some of the -- government is part of North America. So despite some of the headwinds we saw in the quarter, began to see in the second quarter, our second quarter happened to be: January, February, December, January, February.

那是 — — 那是 — — 即使我們看到一些合約和一些 — — 政府是北美的一部分，這些事情仍然發生了。因此，儘管我們在本季看到了一些不利因素，並開始在第二季看到這些因素，但我們的第二季恰好是：一月、二月、十二月、一月、二月。

The leading indicators were positive. And as you mentioned, we're only 90 days in. And we look forward to reporting on that again as we get to Q3, Q4, we'll just keep reporting on those as we go along here.

領先指標呈現正向態勢。正如您所提到的，我們只剩下 90 天了。我們期待在第三季、第四季再次對此進行報告，我們將在此過程中繼續報告這些問題。

And has there been any impact on the commercial side of the business within Enterprise? Like extended sales cycles due to uncertainty, tariffs, recession worries, things like that?

這對 Enterprise 內部的商業業務有影響嗎？例如由於不確定性、關稅、經濟衰退擔憂等因素導致銷售週期延長？

I think that's what -- so certainly as we talk, as we alluded to, we're seeing that -- we've seen that internationally. In fact, in three of the countries in which we operate in our international direct offices they've had snap elections in the last 90 days.

我認為就是這樣——正如我們所談論的，正如我們所提到的，我們看到了這一點——我們在國際上看到了這一點。事實上，我們國際直屬辦事處所在的三個國家都在過去 90 天內舉行了提前選舉。

So there's some uncertainty there and we're so we see some of the prolonged decision making happening in international and that's why we've tried to reflect that in our updated guidance. And then we've provided a little bit of -- in the US, expecting a little bit of headwind there as well, which is where the -- we've also accounted for about $3 million of potential headwind there in the US as well. So I haven't seen a lot of it yet, but expecting that we might see a little bit of that.

因此存在一些不確定性，我們看到國際上正在進行一些長期的決策，這就是為什麼我們試圖在更新的指南中反映這一點。然後，我們在美國提供了一點信息，預計那裡也會遇到一些逆風，這也是——我們還考慮到了美國大約 300 萬美元的潛在逆風。所以我還沒有看到很多，但期待我們可能會看到一點。

And that's in guidance?

這是指導嗎？

That's in guidance.

這是指導。

Yes. Okay, great. Well thank you, I'll get back into the queue. Appreciate your answering my questions.

是的。好的，太好了。好的，謝謝，我會回到隊列中。感謝您回答我的問題。

Thanks, Alex.

謝謝，亞歷克斯。

Jeff Martin, Roth Capital Markets.

羅斯資本市場 (Roth Capital Markets) 的傑夫馬丁 (Jeff Martin)。

Hi, Jeff.

你好，傑夫。

Thanks. Good afternoon, Paul, Steve, I hope you're well.

謝謝。下午好，保羅、史蒂夫，希望你們一切都好。

You too.

你也是。

Thank you. Good to talk to you.

謝謝。很高興和你談話。

So Paul, I was just curious if you could clarify the $17 million in government-related revenue, 6% of revenue. Does that include non-government organizations that are influenced by government agencies or is that -- I can remember that -- and are you seeing any impact there?

所以保羅，我只是好奇你是否可以澄清一下 1700 萬美元的政府相關收入，即 6% 的收入。這是否包括受政府機構影響的非政府組織，或 — — 我記得 — — 您是否看到其中有任何影響？

Yeah, the $17 million is governmental agency direct -- the $17 million is direct. The broader -- as far as government representing a good share of the GDP and how that spills over to companies who do a lot of work with the government, et cetera, et cetera.

是的，這 1700 萬美元是政府機構直接撥款——這 1700 萬美元是直接撥款。更廣泛地說——就政府佔 GDP 很大份額以及這種影響如何溢出到與政府有大量合作的公司等等而言。

That's what we're trying to point to in the $3 million or so of impact we might see in the US and Canada. So not yet seeing a lot. I think we're not seeing a lot of that yet. We're obviously directing our sales forces, our sales force towards those organizations that -- trying to assign them to the highest and best use to the types of accounts that we think will do well in these times. I haven't seen a lot of that yet, Jeff.

這就是我們可能在美國和加拿大看到的 300 萬美元左右的影響。因此目前還沒有看到太多。我認為我們目前還沒有看到太多這樣的情況。顯然，我們正在將我們的銷售人員，我們的銷售人員導向那些組織 - 試圖將他們分配給我們認為在當前會表現良好的帳戶類型，並發揮最大、最佳的用途。傑夫，我還沒見過太多這樣的事。

Yeah, okay. And then I was curious if you could characterize the project starts among your clients who are subscription, purchasers, are those largely starting on time? Are they starting to infuse some delays related to uncertainties or need to focus on other areas of the business, the impact of tariffs, et cetera?

嗯，好的。然後我很好奇，您是否可以描述一下您的訂閱客戶和購買者的專案啟動情況，這些專案是否大多按時開始？他們是否開始注入一些與不確定性相關的延遲，或者需要關注業務的其他領域、關稅的影響等等？

We -- as we, we mentioned in the second quarter we actually had a better new logo quarter. And so for us the pro -- when we sell, we bring on a new client, we sell a new logo, we're starting right away with them. The subscription starts, the clock is running on that first year subscription and so we're seeing -- we haven't seen any slowdown in terms of project starts, Jeff, at this point.

正如我們在第二季度提到的，我們實際上有一個更好的新標誌季度。因此對於我們專業人士來說——當我們銷售時，我們會帶來一個新客戶，我們銷售一個新標誌，我們馬上就開始與他們合作。訂閱開始了，第一年的訂閱時間也已經開始了，所以我們看到——傑夫，目前我們還沒有看到專案啟動方面的任何放緩。

Okay, that's encouraging. And then if the economy does roll into a recession here. I know in the past you've spoken about the durability of the subscription model. Obviously moving to multi-year contracts helps, but how do you see that in terms of potential impact on new logos? I know you just had a really strong first 90 days under the new go-to-market strategy, but just was curious if you have the same level of conviction if the economy does do roll into a recession here.

好的，這令人鼓舞。如果經濟真的陷入衰退的話。我知道您過去曾談論過訂閱模式的持久性。顯然，轉向多年期合約會有所幫助，但您如何看待這對新標誌的潛在影響？我知道您在實施新的行銷策略後，前 90 天表現非常出色，但我好奇的是，如果經濟真的陷入衰退，您是否還會有同樣的信心。

So you highlighted two important things. First, I would say the subscription business helps us in a situation like that where we were to roll into a recession in that we've got all the clients that you've got that portion of clients that are on a multi-year contract.

所以你強調了兩件重要的事情。首先，我想說，訂閱業務可以幫助我們應對經濟衰退的情況，因為我們擁有所有客戶，其中一部分客戶都簽訂了多年合約。

So about 55% of our contracts are multi-year, meaning two years or longer, 61% of the subscription revenue a is under a multi-year contract, again, two years or longer. So you get a nice -- there's a bridging effect there. A lot of the base is bridged and in place in that experience.

因此，我們的大約 55% 的合約都是多年期的，也就是兩年或更長時間，61% 的訂閱收入屬於多年期合約，也就是兩年或更長時間。因此你會得到一個很好的結果——這裡有一個橋樑效應。在那次經驗中，許多基礎都已建立並到位。

In the past when we've seen a downturn like that, usually there's a couple of quarters where there's a lot of uncertainty and so we've got some good built-in durability there just in those multi-year contracts. We also , for all those clients that are on a multi-year, they're on a one-year contract.

過去，當我們遇到類似的經濟衰退時，通常會有幾個季度存在很大的不確定性，因此，我們在這些多年合約中獲得了良好的內在耐久性。我們也為所有簽訂多年合約的客戶制定了一年合約。

And so you've got a good number, a good percentage of clients that are in their first quarter, second quarter, they're only a portion of the way into even the single year. So there's some increased strength and durability built into just the way that all access pass and LeaderInMe are contracted in the form of minimum one year contracts.

因此，您獲得了相當可觀的數字，相當大比例的客戶處於第一季、第二季度，甚至僅進入一年的一部分。因此，全通行證和 LeaderInMe 都以至少一年的合約形式簽訂，這在一定程度上提高了強度和耐用性。

To your second question around new logo. I think -- so again, we were, I was pleased in the second quarter. It wasn't like the second quarter didn't have some external noise in it, and we had a good quarter. We -- right now our pipelines and the early indicators for Q3, even in this environment, suggest that Q3 is going to be another good strong new logo quarter for us, and we feel good about that right now.

關於新標誌的第二個問題。我認為——所以，我對第二季的表現感到滿意。這並不意味著第二季度沒有受到外界影響，我們度過了一個不錯的季度。我們 — — 目前，即使在這種環境下，我們的管道和第三季度的早期指標也表明，第三季度對我們來說將是另一個強勁的新標誌季度，我們現在對此感覺很好。

We are, of course, as we've done in the past, we direct our salesforce a little, even a little bit more to the solutions like the four disciplines of execution, our sales performance solutions, those topics that we fortunately cover that that really become even more critical and important to clients and organizations when they're trying to grow their own businesses and so we'll direct our sales forces there and remains to be seen, but right now we're encouraged by what we saw in Q2 and the early indicators for Q3 on new logo.

當然，就像我們過去所做的那樣，我們會將我們的銷售人員更多地引導到解決方案上，例如執行的四個原則、我們的銷售績效解決方案，這些主題是我們所涵蓋的，當客戶和組織試圖發展自己的業務時，這些主題對他們來說確實變得更加關鍵和重要，因此我們將把我們的銷售人員引導到那裡，這還有待觀察，但目前我們對第二季度的表現。

Okay. And then last for me is your guidance implies roughly -- this is roughly speaking $14 million to $16 million of adjusted EBITDA in Q4. And just curious, your level of conviction, what could happen to exceed that number or what could you foresee that might pressure that number?

好的。最後，對我來說，您的指導大致意味著——大致相當於第四季度調整後的 EBITDA 為 1400 萬至 1600 萬美元。我很好奇，您的確信程度如何，什麼情況可能會超過這個數字，或者您預見到什麼情況可能會對這個數字造成壓力？

Do you want to make any comments on that?

您對此有何評論？

Hi, Jeff. Since any subscription sale, only a portion of that is recorded to actual revenue. The fourth quarter, especially, is impacted a lot by the amount of services that we deliver and the amount of coaching days that we deliver, especially in education.

你好，傑夫。由於任何訂閱銷售，只有其中的一部分才會記錄為實際收入。尤其是第四季度，受到我們提供的服務數量和輔導天數的影響很大，特別是在教育領域。

So one of the important areas that Paul talked about related to the fourth quarter is that there isn't something that we cannot imagine that would significantly impact the education days. We don't see that and we don't anticipate it, but that's the kind of thing that could be a disruption. And then the improvement could be simply, that again, in education and in everywhere else.

因此，保羅談到的與第四季相關的一個重要領域是，我們無法想像有一些事情會對教育產生重大影響。我們沒有看到這種情況，也沒有預料到這種情況，但這種情況可能會造成混亂。然後改進可能很簡單，再次強調，是在教育領域和其他所有領域。

Some of the disruption that we're anticipating might happen just doesn't. And that the need -- there is a need for those delivered days and the services and the content and the companies just go ahead with what they need would be an improvement to what we're projecting.

我們預期會發生的一些混亂並沒有發生。而這種需求——對那些交付的日子、服務和內容都有需求，而公司只需繼續做他們所需要的事情，就會比我們預測的有所改善。

And just on that, I think it's a great point, Steve. So far of all of the factors that we -- that I walked through that kind of give the basis for the new guidance, the government piece, there is lost business we've already incurred there.

就這一點而言，我認為史蒂夫的觀點非常好。到目前為止，我已經討論過的所有因素都為新指南提供了基礎，政府的部分已經導致我們遭受了業務損失。

The others are just starting as we look at the future and try to think about what we think might happen, but we're working every day to figure out how to do better than what that might be. So international, where we think we might be down as much as $4 million compared to plan this year, no one's going to be happy that we hit the number we just gave out today.

當我們展望未來並試圖思考可能會發生什麼時，其他人才剛剛開始，但我們每天都在努力尋找如何做得更好。因此在國際上，我們認為今年的支出可能比計劃少 400 萬美元，沒有人會為我們今天剛剛給出的數字感到高興。

We're trying to -- we'll do everything we can to do better than that and hopefully we'll be able to beat what we shared here today, and that's certainly our expectation.

我們正在努力——我們將竭盡全力做得更好，希望我們能夠超越我們今天在這裡分享的內容，這當然是我們的期望。

That's helpful. Thank you for taking, thank you for the time.

這很有幫助。感謝您的參與，感謝您的時間。

Thanks Jeff. Dave Storms, Stonegate.

謝謝傑夫。戴夫‧斯托姆斯 (Dave Storms)，Stonegate。

Hi Dave,

嗨，戴夫，

Afternoon, appreciate you taking my questions. Just wanted to start, while we're looking at the external environment, is there any ability or appetite to maybe bend down the hatches a little bit and shift focus a little more internally towards more focused on product development, more focus on enhancing AI capabilities. Any internal projects like that?

下午好，感謝您回答我的問題。首先，當我們觀察外在環境時，是否有能力或意願稍微放鬆一點，將重點轉移到內部，更重視產品開發，更重視增強人工智慧能力。有任何類似的內部專案嗎？

So we have a great product development roadmap. On that product development road map includes how we're going to incorporate AI into our products and we're already doing that; we've talked about that in the past.

所以我們有一個很好的產品開發路線圖。這個產品開發路線圖包括我們如何將人工智慧融入我們的產品中，我們已經在這樣做了；我們以前討論過這個問題。

Internally, there's also an opportunity to just continue to make our own internal operations more efficient, more streamlined. I think there's -- obviously, and the ability for AI to help with that. One of the things I mentioned in my remarks was just that, we recognize that we're taking our EBITDA guidance down as well, primarily as a function of the revenue going down and then not wanting to cut the $16 million of growth investments.

從內部來看，我們也有機會持續提高內部營運的效率和精簡程度。我認為，顯然人工智慧有能力幫助實現這一點。我在演講中提到的一件事是，我們意識到我們也在下調 EBITDA 預期，主要是因為收入下降，而且我們不想削減 1,600 萬美元的成長投資。

We will look for other places that aren't tied to the things that are going to grow the business in the future and try to look for ways to become as efficient as we can and we've done that for years. And we'll continue to certainly do that and look inward on those things, Dave.

我們將尋找與未來業務成長無關的其他地方，並嘗試尋找盡可能高效的方法，而且我們已經這樣做了很多年。我們一定會繼續這樣做，並反省這些事情，戴夫。

Understood very helpful, thank you. And then just looking at some of your go-to-market strategy kind of outpacing goals. It does look like, as you mentioned, the new logos is up, 150% of goals where the expanders I call, like 108%.

明白了很有幫助，謝謝。然後只需看看你的一些市場進入策略是否超出了目標。正如您所說，新標誌確實已經達到了目標的 150%，也就是我所說的擴展器的 108%。

Looking past the market uncertainty, do you see a point where you will need to hire more expanders faster than landers? And I guess kind of how are you thinking about the balance between those two roles?

回顧市場的不確定性，您是否認為在某個時候您需要更快地僱用更多的擴張者而不是登陸者？我想問一下您是如何考慮這兩個角色之間的平衡的？

Yeah, great, it's a great question. So first of all, stepping back for a second, long term, as we zoom out for a second and think about what happens over the long period of time. We've done a nice job of expanding.

是的，很好，這是一個很好的問題。因此，首先，我們退後一步，從長遠角度考慮，將視野放遠一點，思考一下長期內會發生什麼。我們在擴張方面做得很好。

Once we land a new client, expanding that client, and we take them on a journey. The journey to date has been to move from an average of $39,000 over time to an average of a little over $85,000 and we expect that to continue.

一旦我們獲得一個新客戶，我們就會擴大該客戶群，並帶他們踏上旅程。到目前為止，旅程費用已從平均 39,000 美元增加到平均略高於 85,000 美元，我們預計這一趨勢還將繼續。

Even if that didn't grow by a lot more and it just went from $39,000 to $85,000, the fact that we could be landing a lot more new clients in the future, that's going to generate a lot of growth. And so we do expect in the coming years, next year and going in the years after, that to grow the landing side of the organization and continue to grow that. That there are about 16 million potential clients we could sell to.

即使沒有大幅成長，只是從 39,000 美元增加到 85,000 美元，但事實上我們將來可能會吸引更多的新客戶，這將帶來很大的成長。因此，我們確實期望在未來幾年、明年以及之後的幾年裡，該組織的著陸方面能夠發展，並且繼續發展。我們可以向大約 1600 萬潛在客戶銷售產品。

That includes SMB, but there's a huge market of clients out there to which we should be selling to who could be users of our content and our solutions. And so we see a lot of headroom to keep growing on the land on the land side. So those account executives who are out hunting for new business, and we expect to do that.

其中包括中小企業，但還有一個巨大的客戶市場，我們應該向他們銷售產品，他們可能是我們的內容和解決方案的用戶。因此，我們看到陸地上還有很大的成長空間。因此，我們希望那些出去尋找新業務的客戶經理能夠這樣做。

We also will, as we're successful, need to grow the expand side but not the same rate. Those expanders, we the way, we've got capacity there. In fact, we don't think we need to actually expand add any ex -- very many, if any expanders this next year because of the capacity that's there to receive. The accounts we're throwing over to them.

隨著我們的成功，我們也需要擴大擴張規模，但速度不會一樣。那些擴張器，我們在那裡有容量。事實上，我們認為明年我們不需要真正擴大產能，也不需要增加任何產能——如果有的話，也只需要增加很多產能，因為我們已經有足夠的產能了。我們正在將帳戶轉交給他們。

And so yes, over time we'll need to, but I think the expand side will be able to grow at a slower rate than the land side. We also have on the expand side the customer success organization, the implementation strategists we've talked about in the past that help provide some of those account management duties so that those expanders can focus on looking for new opportunities to expand the average -- the -- our solution -- the usage of our solutions inside our existing accounts. So both will grow, but I think we'll be growing the land side even ahead of the expand side.

是的，隨著時間的推移，我們需要這樣做，但我認為擴張方面的成長速度將低於陸地方面的成長速度。在擴展方面，我們還有客戶成功組織，我們過去談到的實施策略師幫助提供一些帳戶管理職責，以便這些擴展者可以專注於尋找新的機會來擴大平均值——我們的解決方案——我們現有帳戶內解決方案的使用率。因此，兩者都會成長，但我認為，我們在陸地方面的成長將比擴張方面的成長更快。

And therefore we ought to get even better flow through on those existing clients because our cost structure doesn't have to change, won't have to change as much on that side. You remember that those one more point here sorry that those expanders used to have the responsibility to also land new business.

因此，我們應該在現有客戶上獲得更好的流程，因為我們的成本結構不需要改變，不需要在這方面發生太大的變化。您還記得這裡還有一點，很抱歉，那些擴張者曾經有責任開展新業務。

Now their full job is to take care of the existing clients and try to expand them, and so we can increase the number of accounts per expander without disrupting that expansion play.

現在他們的全部工作是照顧現有客戶並嘗試擴大客戶群，這樣我們就可以在不中斷擴張計劃的情況下增加每個擴展器的帳戶數量。

That's all very helpful thank you.

這一切都非常有幫助，謝謝。

Thanks, Dave.

謝謝，戴夫。

Thank you one moment for the next question.

謝謝您，請回答下一個問題。

Nehal Chokshi, Northland Capital Markets.

Nehal Chokshi，北國資本市場。

Hello, Nehal.

你好，Nehal。

Yeah. Hello, hey, thank you for the questions. Congrats on the strong lend and expand metrics within the quarter. Clearly the big topic though is the fiscal-year revenue reduction. On slide 5, you did have a line item here of $3 million additional impact in the year. I didn't hear any color on what that additional impact is. Could you repeat it if you already did talk about it?

是的。您好，謝謝您的提問。恭喜您本季的貸款和擴張指標強勁。顯然，最大的議題是財政年度收入的減少。在第 5 張投影片上，您確實有一個項目，顯示今年的額外影響為 300 萬美元。我沒有聽到任何關於其額外影響的詳細資訊。如果您已經談論過此事，您可以重複一遍嗎？

Oh sorry, yeah, it's just that the spill over of the government actions, tariff-related news, things like that that will create we expect some headwinds for our clients here in the US. And just the presumption and expectation that there'll be some of that this year that we'll be up against the back half of the year.

哦，抱歉，是的，只是政府行動的溢出效應、關稅相關新聞等會給我們在美國的客戶帶來一些阻力。我們只是假設和預期今年下半年會出現一些這樣的情況。

Okay, and so the way I kind of understand, this guidance is $9 million has been realized already and $6 million is being anticipated.

好的，我的理解是，這個指導金額是 900 萬美元，已經實現，預計為 600 萬美元。

Yeah, the $5 million's been realized. The 4 isn't fully realized yet. It's the expectation of what we think happens across the year in international and then add the additional headwinds so it's.

是的，500 萬美元已經實現了。4 尚未完全實現。這是我們對全年國際情勢的預期，再加上額外的不利因素。

It's yeah -- it's laying out the [$15 million] but the [$5 million] is lost business already in the federal government. The others are just kind of our view into what we think could happen here in the future and, again, we'll try to do better than that, certainly.

是的，它正在支付 [1500 萬美元]，但聯邦政府已經損失了 [500 萬美元] 的業務。其他的只是我們對未來可能發生的事情的看法，當然，我們也會努力做得更好。

Right, okay. Alright. And then moving on to the EBITDA guidance. The EBITDA guidance has got 70% -- it's cut 30% of the low end of the revenue cut while the high end of the EBITDA cut is only 50% of the revenue cut, right? So the amount of flow through is less as we go to the more extreme portion of the new guidance range, why is that?

好的，好的。好吧。然後轉到 EBITDA 指導。EBITDA 指引已達到 70%——它削減了收入削減的低端 30%，而 EBITDA 削減的高端僅為收入削減的 50%，對嗎？因此，當我們進入新指導範圍的更極端部分時，流經的數量會減少，這是為什麼？

So Nehal, yeah --

所以 Nehal，是的--

So the -- I'm sorry -- it's the other way around. The amount of the guidance cuts is less as we go through -- go to the lower end of the new revenue and raises. That's what that's say sorry.

所以 — — 很抱歉 — — 情況恰恰相反。隨著我們不斷推進，指導性削減的金額會越來越少——降至新收入和加薪的低端。這就是所謂的抱歉。

Yeah. We see the same as you do, and that is what we clearly identified that the numbers -- that the difference that we're talking about is related to the low end of the guidance versus the full guidance. And if we did the calculation based upon the high end of the High end of the guidance, it would be a different level of so we're agreeing with exactly with what you said.

是的。我們的看法與您相同，這就是我們清楚確定的數字——我們所談論的差異與指導的低端與完整指導有關。如果我們根據指導的高端進行計算，結果會有所不同，所以我們完全同意您所說的。

And we did the comparison to the low end of the ranges just because, knowing, clearly identifying it so anybody wanted to do the calculation based upon the high end. All the numbers are available to easily do that, but we see it the same way you see it now.

我們將其與範圍的低端進行比較，只是因為知道並清楚地識別它，所以任何人都想根據高端進行計算。所有數字都可以輕鬆做到這一點，但我們看到它的方式與您現在看到的方式相同。

Okay, and what I was trying to say was that the low end of the new guidance range relative to the high end of the new guidance range for the EBITDA. The EBITDA cut is not as severe as a percentage of the revenue cut as it is for the high end. And so you're expecting not as much of a profitability impact as you get to a more extreme revenue cut scenario here. So that was the question not what which baseline to utilize?

好的，我想說的是，新的 EBITDA 指導範圍的低端相對於新的 EBITDA 指導範圍的高端。EBITDA 的削減並不像收入百分比的削減那麼嚴重，就像高端產品那樣。因此，您預計獲利能力受到的影響不會像這裡更極端的收入削減情境那麼大。所以問題不是要利用哪個基準？

Yeah, if I understanding correctly, I think the thing included there is we're including an anticipation of having some reasonable controls of our SG&A. So those SG&A adjustments to adjusted EBITDA are the same, or they're talking about the low end or the high end of the range, and it's the same number rather than a proportional adjustment based upon the change in revenue, and I think that's what's changing the different percentage. Does that make sense?

是的，如果我理解正確的話，我認為其中包含的內容是，我們預期對我們的銷售、一般和行政費用 (SG&A) 進行一些合理的控制。因此，這些銷售、一般及行政費用對調整後 EBITDA 的調整是相同的，或者他們談論的是範圍的低端或高端，而且是相同的數字，而不是基於收入變化的比例調整，我認為這就是改變不同百分比的原因。這樣有道理嗎？

That makes a lot of sense. Yeah, that makes 100% sense. Okay. And then it looks like in the quarter you did have negative free cash flow. What's the driver of that?

這很有道理。是的，這完全有道理。好的。然後看起來本季你的自由現金流確實為負。造成這種情況的原因是什麼？

Well there's a couple of things going on with free cash flow and obviously, Nehal, as you look you'll see that free cash flow is meaningfully below last year. A couple of significant things going on there. One is that we pay -- we paid over $6 million in taxes this year that we normally haven't paid.

好吧，自由現金流發生了一些事情，顯然，Nehal，當你觀察時，你會發現自由現金流明顯低於去年。那裡發生了幾件重要的事情。一是我們今年繳納了超過 600 萬美元的稅款，這在我們通常情況下是不會繳納的。

We we've signaled that for quite some time that those tax payments were coming because we were out of net operating less carried forward in foreign tax credits. So we had an increase in cash paid for taxes and they also, last year, had a meaningful amount of customer deposits added to our cash flows. And those are really lumpy, and that's because we don't often have customers pre-pay for their services.

我們已表示，很長一段時間以來，這些稅款之所以到來，是因為我們的淨營業收入減去結轉的外國稅收抵免。因此，我們支付的稅款現金增加，去年我們的現金流量也增加了大量客戶存款。這些確實很不平衡，因為我們通常不會讓客戶預付服務費用。

But sometimes in education and especially at the state and district level, if they have cash available, then they can make a pretty significant prepayment to us. And that affects our cash flow meaningfully. So there's like a $7 million difference in the deposits that we received.

但有時在教育領域，特別是在州和地區層級，如果他們有現金，那麼他們可以向我們支付相當大的預付款。這對我們的現金流產生了重大影響。因此，我們收到的存款差額約為 700 萬美元。

And then net income is the other part. So those are the things that are primarily, the level of profitability, and then that the sales level impacts our accounts receivable and our deferred revenue, but the things that are really different is the profitability of the company, the customer deposits, and the taxes.

另一部分是淨收入。所以這些主要是獲利水平，然後銷售水平影響我們的應收帳款和遞延收入，但真正不同的是公司的獲利能力、客戶存款和稅收。

Okay. That's really helpful. And then clearly, you guys are signaling high confidence in the business fundamentals by deploying about $8 million in buybacks during the quarter? Can you give us a sense as to whether or not you will continue to do so, given where the stock is indicating here?

好的。這真的很有幫助。那麼，很明顯，你們在本季度部署了約 800 萬美元的回購，這表明對業務基本面有很高的信心？根據目前的股價情況，你能否告訴我們你是否會繼續這樣做？

Now, as we never really say exactly what we're going to do. But we do, we do look at the share price and we have shown a willingness to buy back shares. So I think that's an indication that our strategy going forward will be similar to the past.

現在，我們從未真正說過我們到底要做什麼。但我們確實關注股價，我們已表現出回購股票的意願。所以我認為這表明我們未來的策略將與過去相似。

And that is we hope to. In any scenario to be actually generating positive cash flow even at these reduced levels, and if we can have a meaningful acquisition activity that will really increase the value of the company over a longer term, then we'll look seriously at that and then we'll all amid that we'll obviously look at the share price and other factors that we can see and the cash that we have available and look at buying back shares.

這正是我們所希望的。在任何情況下，即使在這些較低的水平上實際上也能產生正現金流，如果我們能夠進行有意義的收購活動，從而真正在長期內提高公司的價值，那麼我們會認真考慮這一點，然後我們會在其中顯然考慮股價和我們能看到的其他因素以及我們可用的現金，並考慮回購股票。

Okay. What's your degree of confidence that the remaining bit EBITDA that day resources they expect to generate for this year will generate positive free cash flow?

好的。您對他們預計今年產生的剩餘 EBITDA 資源將產生正的自由現金流的信心程度有多大？

I think it'll be positive pre cash flow. We don't get, as you know, we don't give an estimate on that. We think even with these reduced forecasts we'll have a positive free cash flow for the year.

我認為這將是正的預現金流。正如你所知，我們無法得到這一點，我們也無法對此做出估計。我們認為，即使這些預測降低，今年我們的自由現金流仍將為正。

For the full fiscal year or you're talking about for fiscal 2H 25?

是整個財政年度還是您談論的 2025 財年下半年？

For the full year and some additions -- in additions to the first half and the second half. Maybe not that much, but still some free cash flow for the year and most likely a little bit in the second half.

針對全年以及上半年和下半年的一些補充。可能不會那麼多，但今年仍會有一些自由現金流，而且下半年很可能還會有一點。

Great thank you very much. Even given these numbers.

非常好，非常感謝。即使給出這些數字。

Right, okay, thank you.

好的，好的，謝謝你。

Thanks.

謝謝。

Thank you and that does conclude today's Q&A session. I would like to go ahead and turn the call back over to Paul for closing remarks. Please go ahead, Paul.

謝謝大家，今天的問答環節到此結束。我想繼續將電話轉回給保羅，請他作最後發言。請繼續，保羅。

Thank you, thanks again everyone for joining today. It's great to be with you and to share an update on where the business is. We're pleased with what's happening in our go-to-market transformation. And also what's happening in our education business and look forward to talking to you again in a quarter. Have a great afternoon.

謝謝，再次感謝大家今天的參加。很高興與您見面並分享業務的最新進展。我們對市場轉型進展感到滿意。以及我們的教育業務的最新進展，期待在第一季後再次與您交談。祝您下午愉快。

Thank you all for joining today's conference call. You may now disconnect.

感謝大家參加今天的電話會議。您現在可以斷開連線。