Franklin Covey Co (FC) 2025 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the third-quarter 2025 Franklin Covey earnings conference call. (Operator Instructions) Please be advised that today's call is being recorded.

您好，感謝您的支持。歡迎參加 2025 年第三季富蘭克林柯維收益電話會議。（操作員指示）請注意，今天的通話正在錄音。

I will now hand the call over to your speaker today, Boyd Roberts, Head of Investor Relations. Please go ahead.

現在我將把電話交給今天的發言人、投資者關係主管博伊德羅伯茨 (Boyd Roberts)。請繼續。

Thank you, Victor, and hello, everyone, and thank you for joining us today. We appreciate having the opportunity to connect with you.

謝謝你，維克多，大家好，謝謝你們今天加入我們。我們很高興有機會與您聯繫。

Before we begin, please remember that today's remarks contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including, without limitations, statements that may predict, forecast, indicate or imply future results, performance, or achievements and may contain words such as believe, anticipate, expect, estimate, project, or words or phrases of similar meaning.

在我們開始之前，請記住，今天的評論包含《1995 年私人證券訴訟改革法》定義的前瞻性陳述，包括但不限於可能預測、預報、表明或暗示未來結果、業績或成就的陳述，並且可能包含相信、預期、期望、估計、預測等詞語或類似含義的詞語或短語。

These statements reflect management's current judgment and analysis and are subject to a variety of risks and uncertainties and that could cause actual results to differ materially from current expectations, including, but not limited to, risks relating to macroeconomic conditions, tariffs, and other risk factors described in our most recent Form 10-K and other filings made with the SEC. We undertake no obligation to update or revise any forward-looking statements except as required by law.

這些聲明反映了管理層目前的判斷和分析，並受到各種風險和不確定性的影響，可能導致實際結果與當前預期存在重大差異，包括但不限於與宏觀經濟狀況、關稅有關的風險以及我們最近的 10-K 表格和向美國證券交易委員會提交的其他文件中描述的其他風險因素。除法律要求外，我們不承擔更新或修改任何前瞻性聲明的義務。

Now with that out of the way, I'd like to turn it over to Mr. Paul Walker, our Chief Executive Officer and President.

現在，我想將發言權交給我們的執行長兼總裁保羅沃克先生。

Thank you, Boyd. Good afternoon, everyone. We're happy to have the opportunity to speak with you today and to share an update on the continued performance and progress of the business. I'm pleased to be joined not only by Boyd here today, but also by our new CFO, Jessi Betjemann, from whom we'll hear from in a few minutes.

謝謝你，博伊德。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表現和進展的最新情況。我很高興今天不僅有博伊德 (Boyd) 加入我們，還有我們的新任首席財務官傑西·貝傑曼 (Jessi Betjemann) 也加入我們，我們將在幾分鐘後聽到她的發言。

Despite an external environment that continues to be uncertain and where, as a result of this uncertainty, organizations are scrutinizing costs at a greater level and delaying many investment decisions, I'm pleased that in our third quarter, revenue was in line with our expectations and that third quarter adjusted EBITDA was better than expected. Specifically, revenue in the quarter, $67.1 million and adjusted EBITDA was $7.3 million, which was higher than the top end of our expected range of between $4 million and $6.5 million.

儘管外部環境仍然不確定，並且由於這種不確定性，各組織正在更大程度上審查成本並推遲許多投資決策，但我很高興看到，在第三季度，我們的收入符合我們的預期，並且第三季度調整後的 EBITDA 比預期好。具體而言，本季營收為 6,710 萬美元，調整後 EBITDA 為 730 萬美元，高於我們預期的 400 萬美元至 650 萬美元的最高值。

Last quarter, I shared that there were a few areas of the business in which we had experienced and expected to experience direct and indirect impact from the actions being taken by the federal government and by the associated economic uncertainty. I express that in order to offset the impact of these factors on our profitability, we were undertaking a series of cost reductions in areas not impacting our main strategic thrust.

上個季度，我曾說過，我們的一些業務領域已經或預計將受到聯邦政府採取的行動以及相關經濟不確定性的直接和間接影響。我表示，為了抵消這些因素對我們獲利能力的影響，我們正在對不影響我們主要策略重點的領域進行一系列成本削減。

We've now completed the implementation of these cost reductions, and we expect that these actions will help offset declines in revenue related to government actions and to the general uncertainty in the economy.

我們現在已經完成了這些成本削減的實施，我們預計這些措施將有助於抵消與政府行動和經濟普遍不確定性相關的收入下降。

Additionally, these cost savings, when annualized, will flow through and result in meaningful year-over-year increases in adjusted EBITDA next year as well. In a minute, Jessi will share more detail about the initiatives we executed in the third quarter to reduce costs and how we've approached this in a way that eliminated nonessential costs while maintaining our investment in our growth initiatives.

此外，這些成本節省按年化計算將持續產生效益，並導致明年調整後的 EBITDA 年比大幅成長。稍後，傑西將分享更多有關我們在第三季實施的降低成本措施的細節，以及我們如何以消除非必要成本的方式實現這一目標，同時保持對成長計畫的投資。

The effect of government actions and their impact on our direct government business and our international business has been approximately what we thought and consistent with what we laid out last quarter. We're pleased in the middle of an uncertain environment, we've continued to win and expect to win many large deals in our Enterprise and Education businesses.

政府行動的效果及其對我們的直接政府業務和國際業務的影響大致與我們的想法一致，並且與我們上個季度的計劃一致。我們很高興，在不確定的環境中，我們繼續獲勝，並期望在企業和教育業務中贏得許多大交易。

However, the uncertainty in the environment pushed some of these wins late enough into our year to create a timing risk that we'll be able to get all the services delivered by year-end. To provide for the potential that the same uncertainty may impact some of the deals we're working to close and deliver in the fourth quarter, we're making a revision to our guidance and now expect revenue in the range of $265 million to $275 million, you can see shown on slide 4.

然而，環境的不確定性使得其中一些勝利在我們今年晚些時候才實現，從而產生了時間風險，即我們能否在年底前交付所有服務。為了應對同樣的不確定性可能影響我們正在努力在第四季度完成和交付的一些交易的可能性，我們正在修改我們的指導方針，現在預計收入將在 2.65 億美元至 2.75 億美元之間，您可以在幻燈片 4 上看到。

With the revision to the low end of our revenue guidance, we've widened the adjusted EBITDA guidance to be in the range of $28 million to $33 million in constant currency. The series of cost reduction actions we took in the third quarter create additional cushion and put the midpoint and the top end of our widened adjusted EBITDA range, consistent with our previous guidance.

隨著我們收入指引下限的修訂，我們將調整後的 EBITDA 指引擴大至以固定匯率計算的 2,800 萬美元至 3,300 萬美元範圍內。我們在第三季採取的一系列成本削減措施提供了額外的緩衝，並使我們擴大的調整後 EBITDA 範圍的中點和上限與我們先前的指引一致。

Importantly, we continue to feel good about the fundamental strengths of our progress in the vast majority of our business and are confident the investments we've made and the actions we're undertaking will significantly accelerate our future growth.

重要的是，我們繼續對我們在絕大多數業務中取得進步的根本優勢感到滿意，並相信我們所做的投資和正在採取的行動將大大加速我們未來的成長。

I'd like to now talk for a couple of minutes about three key factors that continue to drive this confidence, which you can see reflected on slide 5. The first of these factors is the fact that the opportunities and challenges we help organizations address are mission-critical for them.

現在我想花幾分鐘時間談談繼續推動這種信心的三個關鍵因素，您可以在第 5 張投影片上看到這些因素。第一個因素是，我們幫助組織應對的機會和挑戰對他們來說至關重要。

The second factor is that we're achieving strong traction in the implementation of our go-to-market transformation in our Enterprise North America business. And the third factor that I'll talk about today is that our Education business continues to be strong and to exhibit significant growth potential.

第二個因素是我們在實施北美企業市場轉型方面取得了強勁進展。我今天要談的第三個因素是我們的教育業務持續保持強勁並展現出巨大的成長潛力。

So getting into these in a little bit more detail. First, the opportunities and challenges we help organizations address are mission-critical for them. Our solutions help clients meet the moment as they double down on working to achieve their mission-critical objectives.

因此我們將更詳細地介紹這些內容。首先，我們幫助組織應對的機會和挑戰對他們來說至關重要。我們的解決方案可協助客戶加倍努力實現其關鍵任務目標。

For thousands of client organizations and schools around the world, Franklin Covey is a trusted partner to leaders whose critical strategic priorities and organizational performance require a dedicated collective action of large numbers of people. Our strategic strength derives from both the importance of the opportunities and challenges that we help organizations address and the strength of our solutions in addressing these opportunities and challenges.

對於全球數以千計的客戶組織和學校來說，富蘭克林柯維是領導者值得信賴的合作夥伴，他們的關鍵策略重點和組織績效需要大量人員的集體行動。我們的策略優勢既來自於我們幫助組織應對的機會和挑戰的重要性，也來自於我們應對這些機會和挑戰的解決方案的優勢。

The second key factor to talk about today is that we're already achieving strong traction in the implementation of our new go-to-market acceleration in our Enterprise North America business. The focus of our go-to-market transition and the associated growth investments is on achieving significant increases in two key outcomes, which we expect will accelerate growth.

今天要談的第二個關鍵因素是，我們在北美企業業務中實施新的上市加速計畫已經取得了強勁的進展。我們的市場轉型和相關成長投資的重點是實現兩個關鍵成果的顯著成長，我們預計這將加速成長。

The first of these outcomes is to significantly increase our number of new client wins and our revenue per win, revenue that comes from the combination of All Access Pass subscriptions and from strategically important subscription services.

這些成果中的第一個是大幅增加我們贏得的新客戶數量和每次贏得的收入，這些收入來自全通行證訂閱和具有戰略重要性的訂閱服務的結合。

And the second key outcome is to increase our expansion within existing client organizations. It's been just 180 days since we went live with this transition, and we're really encouraged by the traction and the early results we're achieving. We've successfully separated our sales force into two teams, one dedicated exclusively to landing new clients, and the other dedicated to expanding business within existing clients.

第二個關鍵成果是擴大我們在現有客戶組織內的擴張。我們實施這項轉變才剛 180 天，我們對於所取得的進展和早期成果感到非常鼓舞。我們成功地將銷售人員分成兩個團隊，一個團隊專門負責吸引新客戶，另一個團隊專門負責擴大現有客戶的業務。

All new salespeople, sales management, and client support roles have been filled per our plan and the associated restructuring is complete. I feel great about the team we have in place in North America, and I'm pleased with the traction we're gaining in the midst of an environment of tremendous uncertainty for our clients.

所有新銷售人員、銷售管理和客戶支援職位均已按照我們的計劃填補，相關重組也已完成。我對我們在北美的團隊感到非常滿意，並且很高興看到我們在客戶面臨巨大不確定性的環境中取得了進展。

I'd like to double-click on the second point a bit and share five indicators of progress and strength that I believe underscore the strength of our business, the importance of the outcomes we help clients achieve, and the traction we're achieving in our new sales transformation. The first of these five indicators of progress and strength is our new logo performance. In this year's third quarter, we sold more new logos than we did in the third quarter last year.

我想稍微強調一下第二點，並分享五個進步和實力指標，我相信這些指標強調了我們業務的實力、我們幫助客戶實現的成果的重要性以及我們在新銷售轉型中取得的進展。這五項進步和實力指標中​​的第一項就是我們的新標誌表現。今年第三季度，我們銷售的新標誌比去年第三季還多。

Importantly, for many of these new logo clients, we also attached more subscription services, services such as training delivery, implementation support, and coaching, which for these clients led to an increase in total contract value or revenue per win. We expect this same trend will continue to extend the future new logo wins.

重要的是，對於許多新標誌客戶，我們還附加了更多的訂閱服務，例如培訓交付、實施支援和指導等服務，這為這些客戶帶來了合約總價值或每次勝利收入的增加。我們預計，同樣的趨勢將繼續延續未來新標誌的勝利。

Maybe I'll just briefly share an example of one of these new logo wins from the third quarter, a win that we feel is emblematic of several deals beginning to enter our pipeline and which illustrates the performance of the outcomes we're helping organizations achieve and demonstrates the way in which our new logo sales force is organized to sell highly strategic engagements. This recent new logo win is with a large $6 billion information management company.

也許我只是想簡要地分享一下第三季度新標誌勝利的一個例子，我們認為這個勝利象徵著幾筆交易開始進入我們的渠道，它說明了我們幫助組織實現的成果的表現，並展示了我們的新標誌銷售團隊如何組織起來銷售高度戰略性的業務。最近贏得新標誌的是價值 60 億美元的大型資訊管理公司。

The client is working through a large global sales transformation to increase win rates decreased time to close and increase cross-selling of additional products. They're leveraging our sales performance solution, which includes the All Access Pass, in-person delivery, and our new AI sales coach functionality. This win resulted in a $2.3 million contract, with about $1.7 million scheduled to deliver in the coming quarters -- the couple of coming quarters.

客戶正在進行大規模的全球銷售轉型，以提高成功率、縮短成交時間並增加其他產品的交叉銷售。他們正在利用我們的銷售績效解決方案，其中包括 All Access Pass、現場交付和我們的新 AI 銷售教練功能。這場勝利為我們帶來了一份價值 230 萬美元的合同，其中約 170 萬美元計劃在未來幾季內交付。

This win is a strong example of our new sales model in action. We had the right rep focused on the right account, supported by subject matter experts and several new support teams who moved quickly and thus, we were able to win this deal in just under 50 days.

這次勝利是我們新銷售模式有效實施的有力證明。我們讓合適的銷售代表專注於合適的客戶，並得到主題專家和幾個行動迅速的新支援團隊的支持，因此，我們能夠在不到 50 天的時間內贏得這筆交易。

We're now in the midst of scheduling and completing the delivery of a significant portion of the services attached to this particular sale some of which may drift into the next quarter due to timing reasons, which is one of the reasons, as I mentioned earlier, we revised our annual revenue guidance range.

我們目前正在安排和完成與此次特定銷售相關的大部分服務的交付，其中一些服務可能會由於時間原因推遲到下個季度，這也是我們修改年度收入指導範圍的原因之一，正如我之前提到的。

So that's the first indicator of progress and strength. The second that I'd like to talk about is our client retention. The vast majority of our clients renew year after year. Despite the current, more uncertain environment where nearly every company is scrutinizing every dollar of investment in spend and has the choice to renew or not to renew, we're pleased that the vast majority of our clients are continuing to choose to renew.

這是進步和實力的第一個指標。我想談的第二點是我們的客戶保留。我們的絕大多數客戶都年復一年地續約。儘管目前環境更加不確定，幾乎每家公司都在仔細審查每一筆投資，並可以選擇續約或不續約，但我們很高興看到絕大多數客戶繼續選擇續約。

While the size of some of the populations covered have flexed down in the current environment, and we've had a couple of larger clients who were unable to renew this quarter, our overall client retention or our client count remains strong and very consistent in the third quarter relative to previous quarters and has continued to be very consistent year over year and also when compared with historical results.

雖然在當前環境下，部分覆蓋人群的規模有所下降，而且我們有幾個較大的客戶本季度無法續約，但我們第三季度的整體客戶保留率或客戶數量與前幾季度相比仍然保持強勁且非常穩定，並且與去年同期相比以及與歷史結果相比也保持了非常穩定的狀態。

Just as we saw during COVID, the power of our content, our solutions, and our subscription model is compelling clients to stay with us. Additionally and importantly, we're winning back clients whose circumstances had previously caused them to leave. I'm happy to report that in the third quarter, we won back one of our larger All Access Pass clients that I had reported had churned in the second quarter of fiscal year '23.

正如我們在 COVID 期間看到的那樣，我們的內容、解決方案和訂閱模式的力量正在吸引客戶留在我們身邊。此外，更重要的是，我們正在贏回那些之前因為某些原因而離開的客戶。我很高興地報告，在第三季度，我們贏回了我們的一個較大的 All Access Pass 客戶，我之前報告過該客戶在 2023 財年第二季度流失了。

The third indicator of progress and strength is the percentage of our clients who are choosing to expand the size of their All Access Pass. In this year's third quarter, we achieved robust expansion across our client base, including a 15-point increase in the number of clients who expanded outside of their renewal period compared to the third quarter last year.

進步和實力的第三個指標是選擇擴大全通行證規模的客戶百分比。今年第三季度，我們的客戶群實現了強勁擴張，在續約期之外擴張的客戶數量與去年第三季度相比增加了 15 個百分點。

We achieved a similar increase in the second quarter and are encouraged that our new expand sales force is driving more activity across our existing client base, whether they're in a quarter where they're up for renewal or not.

我們在第二季也實現了類似的成長，令人鼓舞的是，我們新擴大的銷售團隊正在推動我們現有客戶群的更多活動，無論他們是否處於續約的季度。

I'll briefly share an example of the expansion is possible within a good portion of our client base. In the third quarter, we expanded our work with a large global packaging leader. After landing the account in fiscal '24, the client completed a complex acquisition. It was an acquisition that has often occurs resulted in them feeling the need to stabilize their culture and unite two organizations to become one. Our team steered the client through a number of proof-of-concept launches of Franklin Covey Solutions.

我將簡要分享一個例子，說明在我們很大一部分的客戶群中擴展是可能的。第三季度，我們擴大了與全球大型包裝領導者的合作。在 24 財年獲得該帳戶後，客戶完成了一項複雜的收購。這種經常發生的收購使他們感到有必要穩定自己的文化並將兩個組織合併為一個。我們的團隊指導客戶進行了一系列富蘭克林柯維解決方案概念驗證發布。

Our disciplined land-and-expand approach grew the subscription from an initial population of 200 people to 1,000 people on the All Access Pass for fiscal '25. And this added $136,000 in new annual subscription revenue and has positioned us well for substantial multiyear upside across the organization's 50,000-person workforce. This win underscores our ability to navigate a complex M&A circumstance with the client, stay aligned with shifting decision-makers, and convert early traction into meaningful growth.

我們採取了嚴格的「登陸和擴張」策略，使 2025 財年的全通行證訂閱人數從最初的 200 人增加到了 1,000 人。這為我們增加了 136,000 美元的年度訂閱收入，並為我們在整個組織的 50,000 名員工隊伍中實現多年的大幅增長奠定了基礎。這場勝利凸顯了我們與客戶一起應對複雜的併購環境、與不斷變化的決策者保持一致並將早期的牽引力轉化為有意義的成長的能力。

The fourth area of progress and strength I'll just briefly touch on is our growing percentage of multiyear All Access Pass contracts. At the end of the third quarter, the percentage of clients in a multiyear contract increased from 55% to 58% and the associated revenue now under multiyear contracts increased from 61% to 62%. For these multiyear clients, Franklin Covey is seen as a partner in driving sustained people and organizational performance.

我將簡要地談談我們的第四個進步和優勢領域，那就是我們不斷增長的多年期全通行證合約比例。第三季末，簽訂多年合約的客戶比例從 55% 增加到 58%，目前多年合約下的相關收入從 61% 增加到 62%。對於這些多年的客戶來說，富蘭克林柯維被視為推動人才和組織持續績效的合作夥伴。

The fifth and final area of progress and strength is our high attachment rate of strategically important subscription services. In the Enterprise division in the third quarter, our attachment rate of services continued to be a very high 60%.

第五個也是最後一個進步和優勢領域是我們對具有策略意義的訂閱服務的高附加率。在第三季的企業部門，我們的服務附加率持續維持在非常高的60%。

In an environment where companies are cutting back on a significant portion of their spend on outside advisers and consultants, our clients continue to understand the value and the impact of our consultants and coaches and helping them achieve their mission-critical objectives.

在公司大幅削減外部顧問和顧問支出的環境下，我們的客戶繼續了解我們的顧問和教練的價值和影響，並幫助他們實現關鍵任務目標。

In addition to our progress in these areas, we're also accelerating our marketing efforts to ensure that we're set up to fully penetrate our very large total addressable market in both our Enterprise and Education divisions.

除了在這些領域取得進展之外，我們還在加快行銷力度，以確保我們能夠完全滲透到企業和教育部門非常龐大的總目標市場。

To lead and accelerate our expanded marketing efforts, I'm pleased to report that Dariusz Paczuski joined the organization as our new Chief Marketing Officer on June 1, and we look forward to him bringing his many years of experience as a marketing leader across several well-known and respected brands to Franklin Covey. I'd just say that we feel confident that the actions we're taking to accelerate our marketing efforts, land new clients, and expand and retain existing clients will allow us to accelerate growth in the future.

為了領導和加速我們擴大的行銷工作，我很高興地報告，Dariusz Paczuski 於 6 月 1 日加入我們的組織，擔任我們的新任首席行銷官，我們期待他為富蘭克林柯維帶來多年擔任多個知名和受人尊敬品牌的營銷領導的經驗。我想說的是，我們相信，我們正在採取的加速行銷、吸引新客戶、擴大和留住現有客戶的行動將使我們在未來加速成長。

The third key overall factor that I'd like to touch on before I turn some time over to Jessi is the ongoing strength that we're seeing in our Education business. We're pleased that despite the uncertainty introduced by the federal government with the proposed closing of the Department of Ed and the final expiration of ESSER funds -- ESSER fund, as you'll recall, are the education-focused COVID relief funds.

在我將時間交給傑西之前，我想談談的第三個關鍵總體因素是我們在教育業務中看到的持續強勁勢頭。我們很高興，儘管聯邦政府提議關閉教育部以及 ESSER 基金最終到期，這帶來了不確定性——正如你們所記得的那樣，ESSER 基金是以教育為重點的 COVID 救濟基金。

But despite those two circumstances, we still expect to grow our Education business year over year on both the top and bottom lines and expect our addition of new schools and our school retention results to be as good, if not better, this year than they were last year.

但儘管存在這兩種情況，我們仍然預計我們的教育業務在營收和利潤方面都將逐年增長，並且預計今年新增學校和學校保留率的成績將與去年一樣好，甚至更好。

The overall third-quarter performance in Education was solid with subscription revenue growing 13% and the balance of deferred revenue increasing 21%. Due to the timing of a couple of large contracts that came in during the third quarter last year and which we expect to come in during the fourth quarter this year, revenue in the third quarter was down slightly, but again, this was due to timing.

教育業務第三季整體表現穩健，訂閱收入成長 13%，遞延收入餘額成長 21%。由於去年第三季簽訂的幾份大合約以及我們預計今年第四季簽訂的幾份大合約的時間安排，第三季的收入略有下降，但這同樣是由於時間安排造成的。

Looking forward, we expect another strong fourth quarter of subscription services and material sales in Education. Due to the volume of business, we expect to close between now and the end of August, there is the potential that some of that delivery could push into next fiscal year, which, again, we reflected in the updated revenue guidance I shared previously.

展望未來，我們預計教育領域的訂閱服務和材料銷售第四季將再次強勁成長。由於業務量較大，我們預計從現在到 8 月底之間將完成部分交付，部分交付可能會推遲到下一個財年，這一點，我們在之前分享的更新收入指南中也體現了出來。

We continue to see strong demand for Leader in Me, driven by success in delivering the outcomes that educators, parentsm and communities care about, such as leadership development, student engagement, and character building.

我們繼續看到對「我心中的領導者」的強勁需求，其驅動力是成功實現教育工作者、家長和社區所關心的成果，例如領導力發展、學生參與和品格塑造。

The strong demand is fueling our transition from selling to initially to individual schools to now selling to entire districts. And in a handful of cases, we're now serving state-wide contracts. We're pleased that there are now nearly 8,000 Leader in Me schools around the world.

強勁的需求推動了我們從最初向個別學校銷售轉變為現在向整個地區銷售。在少數情況下，我們現在提供全州範圍的合約服務。我們很高興看到，目前全球已有近 8,000 所「我的領導者」學校。

I'd now like to turn some time over to Jessi to provide some more detail on our financial results.

現在我想讓傑西花點時間提供有關我們財務表現的更多細節。

Thanks, Paul. It's a pleasure to be here with you all on my inaugural call -- earnings call with Franklin Covey. I am thrilled to be a part company that is a trusted partner or leaders of enterprises and schools around the world. The strategic priorities include building leaders, teams, and cultures that achieve improved organizational performance and breakthrough results through collective action.

謝謝，保羅。我很高興能與大家一起參加我的首次電話會議——與富蘭克林柯維一起進行收益電話會議。我很高興成為全球企業和學校值得信賴的合作夥伴或領導者的一部分。策略重點包括培養領導者、團隊和文化，透過集體行動提高組織績效並取得突破性成果。

I look forward to partnering with Paul and the rest of the leadership team to help drive profitable growth and achieve the company's financial and strategic goals at an important time of our transition. I also look forward to engaging with all of you on the call in the investment community and sharing our progress today and in the coming quarters.

我期待與保羅和其他領導團隊合作，在我們過渡的重要時刻幫助推動獲利成長並實現公司的財務和策略目標。我也期待與投資界的各位進行電話會議，分享我們今天和未來幾季的進展。

In my remarks today, I'll start by walking through our quarter financial performance, which includes restructuring and cost savings initiatives. Then I'll turn to our balance sheet and capital allocation priorities. And finally, I will provide additional context around our revised fiscal year 2025 outlook.

在今天的演講中，我將首先介紹我們本季的財務業績，其中包括重組和成本節約舉措。然後我將談談我們的資產負債表和資本配置優先事項。最後，我將提供有關我們修訂後的 2025 財年展望的更多背景資訊。

For the third quarter, despite the current economic uncertainty, revenue was in line with our expectations and adjusted EBITDA beat our expectations, due in part to prudent cost reduction actions taken in the quarter. A summary of our consolidated financial results is on slide 9 in the earnings presentation.

第三季度，儘管當前經濟不確定，但收入符合我們的預期，調整後的 EBITDA 超出我們的預期，部分原因是本季度採取了審慎的成本削減措施。我們的合併財務表現摘要位於收益報告的第 9 張投影片中。

Total revenue in the third quarter was $67.1 million and finished in line with our previously shared expectation at the low end. Revenue was down 9% from the prior year quarter and 4% year-to-date, but a 13% increase sequentially and essentially flat from the last 12 months for Q3 fiscal year 2025.

第三季的總收入為 6,710 萬美元，符合我們先前預期的最低水準。營收較去年同期下降 9%，年初至今下降 4%，但 2025 財年第三季較上季成長 13%，與過去 12 個月基本持平。

As expected, the reduction in revenue was driven by the direct and indirect impact of the actions taken by the government and the overall short-term economic uncertainty we are seeing in the marketplace that have affected both of our Enterprise and Education division.

正如預期的那樣，收入的減少是由於政府採取的行動以及我們在市場上看到的整體短期經濟不確定性的直接和間接影響，這些因素對我們的企業和教育部門都產生了影響。

Gross margin for the third quarter remained strong and was approximately flat year over year at 76.5% of revenue. Operating expenses for the third quarter were $53.5 million and increased $5.7 million compared with the prior year, which was primarily due to a $4 million increase in restructuring charges and a $1.6 million increase in selling, general, and administrative expenses associated with the rollout of our go-to-market acceleration initiative.

第三季毛利率維持強勁，與去年同期大致持平，為營收的76.5%。第三季的營運費用為 5,350 萬美元，比上年增加 570 萬美元，這主要是由於重組費用增加 400 萬美元以及與推出市場加速計畫相關的銷售、一般和管理費用增加 160 萬美元。

During the third quarter, we optimized the investments we are making in our go-to-market transformation plan in the Enterprise North America segment and took disciplined cost reductions in certain areas of our operations. We incurred $4.7 million in expenses for these restructuring activities, primarily for severance and related costs. These costs were a key contributor to the net loss this quarter but were excluded from adjusted EBITDA.

在第三季度，我們優化了在北美企業部門的市場轉型計畫中所做的投資，並在某些營運領域採取了有紀律的成本削減措施。我們在這些重組活動上花費了 470 萬美元，主要用於遣散費和相關費用。這些成本是本季淨虧損的主要原因，但未計入調整後的 EBITDA。

The increase in SG&A expenses was primarily due to increased associate costs related to new personnel, including new sales and sales support personnel hired in connection with the implementation of our new go-to-market strategy and the reorganization of our North America sales force.

銷售、一般及行政費用的增加主要是由於與新人員相關的員工成本增加，包括為實施新的市場進入策略和重組北美銷售隊伍而聘用的新銷售和銷售支援人員。

The cost reduction actions were focused first on rightsizing government and international operations impacted by government action; and second, on optimizing our go-to-market strategy in the expand teams and support functions to reduce our original $60 million plan to $13 million this year. However, we do not believe these actions will impact the intended results of our initial strategy.

削減成本的措施首先集中在調整受政府行動影響的政府和國際業務的規模；其次，優化我們的市場進入戰略，擴大團隊和支持職能，將我們原定的 6000 萬美元計劃今年削減至 1300 萬美元。然而，我們不認為這些行動會影響我們最初策略的預期結果。

Additional cost reductions were tied to eliminating nonessential head count additions planned for this year and other areas of the business. reducing the employee business bonus expense accrual, lower marketing and travel costs, and managing discretionary spend across the board.

額外的成本削減與消除今年計劃增加的非必要員工以及其他業務領域有關，包括減少員工業務獎金費用的應計、降低營銷和差旅成本以及全面管理可自由支配的開支。

This resulted in savings of $3 million in this quarter and results in $4 million savings in Q4 and an annualized run rate savings of $8 million in fiscal year 2026. That will be partially offset by normal investment levels next year.

這使得本季節省了 300 萬美元，第四季節省了 400 萬美元，2026 財年的年化運行率節省了 800 萬美元。明年的正常投資水準將部分抵消這一影響。

Adjusted EBITDA was $7.3 million and $6.8 million in constant currency, exceeding the top end of our quarterly guidance range of $4 million to $6.5 million in constant currency as the lower revenue and gross margin for the quarter was more than offset by the cost reduction efforts I previously described.

調整後的 EBITDA 為 730 萬美元，按固定匯率計算為 680 萬美元，超過了我們季度指導範圍的最高值 400 萬美元至 650 萬美元（按固定匯率計算），因為本季度較低的收入和毛利率被我之前描述的成本削減努力所抵消。

Adjusted EBITDA decreased compared to the prior year's quarter of $13.9 million due to the planned increase in growth investments we are making this year and a lower revenue. Importantly, though, the foundation for increased future growth is evidenced by the 7% increase in our balance of deferred subscription revenue from $83.8 million in Q3 last year to $89.3 million this quarter.

調整後的 EBITDA 與去年同期的 1,390 萬美元相比有所下降，原因是我們今年計劃增加成長投資，但收入較低。但重要的是，我們的遞延訂閱收入餘額從去年第三季的 8,380 萬美元增長 7% 至本季的 8,930 萬美元，證明了未來成長的基礎。

Year-to-date cash flow from operating activities remained stable at $19 million, but lower compared to $38.4 million last year primarily due to $12.8 million lower net income driven by lower revenue, restructuring costs, and planned higher spending levels to fuel the Enterprise North America transformation efforts and also an $8.3 million decrease in income tax payable as we no longer benefit from the utilization of our net operating loss position compared to last year. This resulted in year-to-date free cash flow through the third quarter of $10.6 million compared to $30.6 million generated through the first three quarters of fiscal year 2024.

年初至今的經營活動現金流保持穩定，為 1900 萬美元，但低於去年的 3840 萬美元，主要原因是收入減少、重組成本和為推動北美企業轉型努力而計劃提高支出水平導致淨收入減少 1280 萬美元，而且由於與去年相比我們不再受益於淨經營虧損狀況，應付所得稅減少了 830 萬美元。這導致截至第三季的年初至今的自由現金流為 1,060 萬美元，而 2024 財年前三個季度的自由現金流為 3,060 萬美元。

I'll turn now to a discussion of our business divisions. In the third quarter, our Enterprise division generated 70% of the company's overall revenue, with the Education division generating 28% of the company's revenue.

現在我將開始討論我們的業務部門。第三季度，我們的企業部門創造了公司整體收入的 70%，教育部門創造了公司收入的 28%。

As shown on slide 10, revenue on our Enterprise division was $47.3 million compared to $51.9 million in the prior year. As expected, Enterprise revenue was heavily affected by canceled US federal government contracts geopolitical trade tensions, and as a result, ongoing macroeconomic uncertainty.

如投影片 10 所示，我們企業部門的營收為 4,730 萬美元，而去年同期為 5,190 萬美元。正如預期的那樣，企業收入受到美國聯邦政府合約取消、地緣政治貿易緊張局勢以及持續的宏觀經濟不確定性的嚴重影響。

The challenging business environment adversely impacted the value of new logo sales and expansion revenue, both domestically and internationally in the third quarter.

充滿挑戰的商業環境對第三季國內外新標誌銷售價值和擴張收入產生了不利影響。

The North America segment revenue was $37.1 million, a $3.5 million decrease from the prior year. The combination of subscription and subscription services revenue in North America was $33.7 million in the third quarter compared to $35.9 million in the prior year, and was down 4% year-to-date and 2% for the last 12 months, with a significant portion of the decline attributable to the government.

北美分部收入為 3,710 萬美元，較前一年減少 350 萬美元。北美第三季訂閱和訂閱服務總收入為 3,370 萬美元，而去年同期為 3,590 萬美元，年初至今下降 4%，過去 12 個月下降 2%，其中很大一部分下降歸因於政府。

Adjusted EBITDA for the North America segment decreased to $6.2 million compared to $10.8 million last year due to lower revenue and increased SG&A expenses tied to our planned go-to-market investments.

北美分部的調整後 EBITDA 從去年的 1,080 萬美元下降至 620 萬美元，原因是收入下降以及與我們計劃的市場投資相關的銷售、一般及行政費用增加。

Our balance of billed deferred subscription revenue in North America was $45 million at the end of the third quarter compared to $47.2 million at the end of the third quarter in the prior year. Our balance of unbilled deferred revenue was $56.4 million compared to $64.4 million from last year.

截至第三季末，我們在北美的已計費遞延訂閱收入餘額為 4,500 萬美元，而去年同期第三季末為 4,720 萬美元。我們的未開票遞延收入餘額為 5,640 萬美元，而去年同期為 6,440 萬美元。

Importantly, though, the number of North America's All Access Passes contracted for multiyear periods increased to 58% in the third quarter compared to 55% last year, and the contracted amounts representative of multiyear contracts increased to 62% compared with 60% in the prior year.

但重要的是，第三季北美簽訂多年合約的全通行證數量從去年的 55% 增加到 58%，代表多年合約的合約金額從去年的 60% 增加到 62%。

As shown on slide 11, revenue from our International Direct Operations, which accounts for approximately 16% of our total Enterprise Division revenue in the third quarter was $7.5 million. a decrease of $1 million, primarily as a result of our business in Asia and the UK decreasing due to challenging business conditions and the response to government actions, as we talked about last quarter.

如投影片 11 所示，我們的國際直接營運收入為 750 萬美元，約占我們第三季企業部門總收入的 16%。減少了 100 萬美元，主要是因為正如我們上個季度所討論的，由於嚴峻的商業環境和對政府行動的反應，我們在亞洲和英國的業務有所減少。

As expected, adjusted EBITDA for the International Direct Operations segment decreased to $0.3 million compared to $1.3 million last year due to lower revenue and was partially offset by lower SG&A due to cost reduction actions.

正如預期，由於收入下降，國際直接營運部門的調整後 EBITDA 從去年的 130 萬美元下降至 30 萬美元，但部分抵消了由於成本削減措施導致的 SG&A 降低。

Our International Licensing revenue, which accounts for approximately 6% of our total Enterprise Division revenue in the third quarter was $2.7 million, which was flat with the previous year. Adjusted EBITDA for the International license segment was relatively flat for the quarter year over year at $1.3 million.

我們的國際授權收入約占我們第三季企業部門總收入的 6%，為 270 萬美元，與前一年持平。國際授權部門的調整後 EBITDA 與去年同期相比基本持平，為 130 萬美元。

Turning now to our Education Division, as shown on slide 12. The Education Division revenue in the third quarter was $18.6 million, down 8% compared with $20.2 million in the prior year but has grown 1% both year-to-date and for the last 12 months, which as Paul shared, is primarily due to the timing of a couple of large contracts that closed in the third quarter last year were similarly large contracts either closed earlier this year or expected to close in the fourth quarter.

現在轉到我們的教育部門，如投影片 12 所示。教育部門第三季度的收入為 1860 萬美元，與去年同期的 2020 萬美元相比下降了 8%，但今年迄今為止和過去 12 個月都增長了 1%，正如 Paul 所說，這主要是因為去年第三季度完成的幾份大合約的時間與今年早些時候完成的或預計將在第四季度完成的時間相似。

The decrease is primarily due to less material revenue during the quarter as the new state-wide initiative started in the third quarter of fiscal year 2024 and included a significant amount of training materials in the initial phases of the program. Decreased materials revenue was partially offset by increased training and increased coaching revenue and membership subscription revenue.

下降的主要原因是本季材料收入減少，因為新的全州計劃於 2024 財年第三季啟動，並在計劃的初始​​階段包含了大量培訓材料。材料收入的減少被培訓、輔導收入和會員訂閱收入的增加部分抵消。

Delivery of training and coaching days remained strong in the third quarter and benefited from 16% higher revenue per day than in the prior year. Education subscription revenue increased 13% in the third quarter to $11.8 million. Combined subscription and subscription services revenue was down 2% to $17.8 million in the third quarter but grew 4% year-to-date and grew 2% for the last 12 months.

第三季培訓和輔導業務依然表現強勁，每日收入比去年同期高出 16%。第三季教育訂閱收入成長 13%，達到 1,180 萬美元。第三季度，訂閱和訂閱服務總收入下降 2% 至 1,780 萬美元，但今年迄今成長 4%，過去 12 個月成長 2%。

Adjusted EBITDA for the Education division decreased to $2.1 million compared to $3.1 million last year due to lower revenue as SG&A remained flat because of some of the cost savings. Education balance of billed deferred subscription revenue increased 21% or $5.9 million to $34.1 million, establishing a strong foundation for continued growth in the coming quarters.

教育部門的調整後 EBITDA 從去年的 310 萬美元下降至 210 萬美元，原因是由於部分成本節省導致銷售、一般及行政費用 (SG&A) 保持不變，導致收入下降。教育費用遞延訂閱收入餘額成長 21%（即 590 萬美元），達到 3,410 萬美元，為未來幾季的持續成長奠定了堅實的基礎。

We are seeing good momentum in our Education division, particularly in the number of large state and district level opportunities as we are actively pursuing. This pipeline strength, together with a base of nearly 8,000 schools globally at the end of May, gives us confidence in the demand for the outcome our Leader in Me solution delivers and provides confidence in continued growth as we close the fourth quarter, which is historically Education's strongest period.

我們的教育部門發展勢頭良好，特別是我們正在積極爭取大量州級和區級機會。這種強大的通路實力，加上截至五月底全球近 8,000 所學校的規模，讓我們對 Leader in Me 解決方案所帶來的成果的需求充滿信心，也讓我們對在第四季度結束時繼續增長充滿信心，第四季度是歷史上教育行業最強勁的時期。

I would like to now spend a few minutes discussing our balance sheet and capital allocation priorities. We will continue to pursue a balanced capital allocation strategy focused on three primary areas that are aligned with our strategic goals.

我現在想花幾分鐘討論我們的資產負債表和資本配置優先事項。我們將繼續推行平衡的資本配置策略，並專注於與我們的策略目標一致的三個主要領域。

First, maintaining adequate liquidity while managing an appropriate level of leverage for the economic environment. Our business continues to produce reliable cash flow and our liquidity remains strong at over $95 million at the end of the third quarter with $33.7 million of cash on hand and no drawdown on the company's $62.5 million credit facility.

第一，保持流動性充足，同時根據經濟環境管理適度槓桿。我們的業務繼續產生可靠的現金流，我們的流動性仍然強勁，截至第三季末，流動性超過 9,500 萬美元，手頭上有 3,370 萬美元現金，且公司 6,250 萬美元的信貸額度沒有提取。

Second, investing in strategic opportunities to drive improved market positioning, accelerated profitable growth and financial value, such as continued spend in product innovation, business transformation initiatives, and opportunistic acquisitions; and finally, returning capital to shareholders as appropriate.

其次，投資策略機會以推動改善市場定位、加速獲利成長和財務價值，例如持續投入產品創新、業務轉型計劃和機會性收購；最後，在適當的時候向股東返還資本。

In the third quarter, we purchased approximately 372,000 shares in the open market at a cost of $8.3 million. Year-to-date, we have purchased approximately 623,000 shares in the open market at a cost of $17 million.

第三季度，我們在公開市場回購了約37.2萬股，成本為830萬美元。年初至今，我們在公開市場上購買了約 623,000 股，成本為 1700 萬美元。

At the end of the third quarter, we had $27.9 million remaining on the current $50 million common share purchase plan authorized by our Board of Directors in April 2024. We remain committed to being disciplined stewards of capital while staying focused on driving long-term value creation.

截至第三季末，我們董事會於 2024 年 4 月批准的當前 5,000 萬美元普通股購買計畫還剩餘 2,790 萬美元。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 turning to our financial outlook. The company updated its fiscal 2025 financial guidance to reflect current market dynamics and company cost reduction actions. We now expect revenue in the range of $265 million to $275 million. The revision of the range considers two factors. First, it reflects the continued uncertainty impacting our clients' decision-making, as previously discussed in our Q2 earnings call.

現在來談談我們的財務前景。該公司更新了 2025 財年的財務指引，以反映當前的市場動態和公司的成本削減行動。我們現在預計收入在 2.65 億美元至 2.75 億美元之間。此範圍的修訂考慮了兩個因素。首先，它反映了影響我們客戶決策的持續不確定性，正如我們在第二季財報電話會議上所討論的那樣。

Second, it reflects the timing risk for the delivery of services for some contracts we have closed in the last 90 days and expect to close this quarter that could slip into the first quarter of the next fiscal year.

其次，它反映了我們在過去 90 天內完成並預計本季度完成的一些合約的服務交付時間風險，可能會拖到下一個財年的第一季。

With the revision to the low end of revenue guidance, we have widened the adjusted EBITDA guidance to be in the range of $28 million to $33 million. The midpoint and top end of this range is consistent with our previous guidance due to the cost reduction actions we took in the third quarter that will produce savings to beneficially impact this year.

隨著收入指引下限的修訂，我們已將調整後的 EBITDA 指引擴大至 2,800 萬美元至 3,300 萬美元的範圍。由於我們在第三季採取了成本削減措施，該範圍的中點和上限與我們先前的指導一致，這些措施將產生節省，對今年產生有利影響。

To emphasize again, the cost reductions we took were prudent given the decline in revenue this year, but either tied to rightsizing areas directly impacted by government actions optimizing our go-to-market plan or reducing other nondiscretionary spend.

再次強調，鑑於今年收入的下降，我們採取的成本削減措施是謹慎的，但要么與受政府行動直接影響的領域的調整有關，要么優化我們的上市計劃，要么減少其他非自由支配的支出。

Thus, we do not believe these actions will impact the intended results of our initial strategy and future growth expectations over time. We plan to share updated guidance for fiscal year 2026 when we report at year-end in November. But due in part to the recent cost reduction actions, we expect to generate a meaningful increase in adjusted EBITDA and free cash flow in fiscal year 2026.

因此，我們認為這些行動不會影響我們最初策略的預期結果以及未來的成長預期。我們計劃在 11 月底報告時分享 2026 財年的最新指導。但部分由於最近採取的成本削減措施，我們預計 2026 財年的調整後 EBITDA 和自由現金流將實現顯著增長。

Before I pass it back to Paul, I want to conclude sharing my excitement to be a part of driving the growth trajectory for Franklin Covey during this transformation period as we make progress on our strategic initiatives and manage through the current macroeconomic headwinds.

在將其交還給保羅之前，我想最後分享我的興奮之情，能夠成為推動富蘭克林柯維在這一轉型時期增長軌蹟的一部分，因為我們在戰略舉措上取得了進展，並克服了當前的宏觀經濟逆風。

As shown on slide 13, the fundamentals of our business model are strong, driven by six key elements. The first element is increasing revenue per client. Second, we have high revenue and customer retention. Third, we have high gross margins. Fourth, we have upfront invoicing. Fifth, our business is a low capital intensity business. And sixth, we have disciplined reinvestment for growth.

如投影片 13 所示，我們的商業模式基礎強勁，由六個關鍵要素驅動。第一個要素是增加每個客戶的收入。其次，我們的收入和客戶保留率很高。第三，我們的毛利率很高。第四，我們有預付發票。第五，我們的業務是低資本密集度業務。第六，我們對成長進行了嚴格的再投資。

Through our go-to-market transformation efforts and with the strength of our underlying business model, we are committed to creating long-term value for our shareholders and customers.

透過我們的市場轉型努力以及憑藉我們強大的基礎商業模式，我們致力於為股東和客戶創造長期價值。

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

保羅，我現在把話題轉回給你。

Thank you, Jessi. We're thrilled to have you as part of the Franklin Covey team and appreciate the many contributions you've already made in a short period of time. And I personally just want to say how excited I am to work with Jessi and for our partnership going forward.

謝謝你，傑西。我們很高興您成為富蘭克林柯維團隊的一員，並感謝您在短時間內做出的許多貢獻。我個人只想說，我很高興能與傑西合作，並期待我們未來的合作關係。

In conclusion, before we open up the line to your questions, I just would end by saying that we're pleased with our third quarter performance. We're now 180 days into the sales transformation of our Enterprise North America business. And despite an environment where uncertainty is prompting organizations to scrutinize costs, we continue to be confident in the actions that we're undertaking to accelerate future growth.

最後，在我們開始回答您的問題之前，我只想說，我們對第三季的表現感到滿意。我們的北美企業業務銷售轉型現已持續 180 天。儘管環境的不確定性促使企業仔細審查成本，但我們仍然對我們為加速未來成長所採取的行動充滿信心。

In the third quarter, we landed more new clients and expanded a large number of our existing clients. These were results that we expected and expect to continue to achieve with our new sales model. Our Education business also continues to be strong with significant growth potential.

第三季度，我們獲得了更多新客戶，並擴大了大量現有客戶。這些都是我們期望的結果，並且期望透過新的銷售模式繼續實現。我們的教育業務也持續保持強勁，並具有巨大的成長潛力。

And as a result, as we shared today, we expect to accelerate future revenue and achieve significant growth in adjusted EBITDA and free cash flow as we move into fiscal year '26 and beyond.

因此，正如我們今天所分享的，隨著我們進入 26 財年及以後，我們預計未來收入將加速成長，調整後的 EBITDA 和自由現金流將顯著成長。

And so I'd like to now ask the operator to open the line, and we'd be delighted to take your questions.

因此，我現在請接線員開通電話，我們很樂意回答您的問題。

(Operator Instructions) Alex Paris, Barrington Research.

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

Alex.

亞歷克斯。

Hi, guys. Hey, how you doing?

嗨，大家好。嘿，你好嗎？

Good.

好的。

Good. Just a couple of questions, starting with the Enterprise division. It's hard to see the improvements given the challenges indirect and direct -- indirect and directly related to government and the uncertainty that ensues.

好的。我只想問幾個問題，先從企業部門開始。鑑於間接和直接的挑戰——與政府直接和間接相關的挑戰以及隨之而來的不確定性——很難看到改善。

But it was encouraging to see that new logos are up and you're expanding within existing clients, which was the goal of this sales force transition. Are there any other milestones to share on that business, for example, size of pipeline growth in invoice sales, things like that?

但令人鼓舞的是，新的標誌已經出現，現有客戶群正在擴大，這是此次銷售團隊轉型的目標。關於該業務還有其他里程碑可以分享嗎，例如，發票銷售管道的成長規模等等？

Yeah. I might point to just a couple. First of all, thank you for the acknowledgment there and recognize that we undertook this set of actions which we continue to have high conviction in at a time when the world became quite uncertain right at the same time.

是的。我可能只指出幾個。首先，感謝您的認可，並且認識到我們在世界變得相當不確定的時候採取了這一系列行動，我們對此仍然充滿信心。

And so it is a little bit hard to see exactly how that's all going, but we do continue to feel encouraged. And so as I mentioned, and you just called out there in the third quarter, we sold some more new logos. We saw expansion across a greater number of our clients, particularly those who were not for renewal.

因此，我們很難確切地知道這一切進展如何，但我們確實繼續感到鼓舞。正如我所提到的，你剛才說，在第三季度，我們出售了更多新標誌。我們看到越來越多的客戶在擴張，特別是那些不需要續約的客戶。

I just say a point about that, one of the things in the old model was we were asking the same sales force to try to renew clients, expand clients, and go find and win new business. In this new model, those client partners are focused on selling to existing clients. We've removed from them the new logo hunting responsibility.

我只想說一點，舊模式中的一件事是，我們要求同一支銷售團隊嘗試續約客戶、擴大客戶，並尋找和贏得新業務。在這個新模式中，這些客戶合作夥伴專注於向現有客戶銷售。我們已經取消了他們尋找新標誌的責任。

And therefore, the job is -- needs to be and is more than just securing and working with those clients that are up for renewal in the current quarter, the job is really to manage a set of clients that have renewals coming all throughout the year to try to stoke and accelerate expansion, add more services, et cetera, all the time within those clients, be looking for more opportunities to grow.

因此，我們的工作不僅僅是確保和與那些在本季度續約的客戶合作，我們的工作實際上是管理一組全年都有續約的客戶，試圖刺激和加速擴張，增加更多的服務等等，一直在這些客戶中尋找更多的成長機會。

And so that is a metric that we're watching is hey, this off-cycle expansion. Because remember, we've only been in this model now for two quarters, the second and third quarter. So we had declines up for renewal in those quarters, but the other half, approximately half of our clients haven't even had a renewal event yet.

所以，我們正在關注的一個指標是，這個非週期擴張。因為請記住，我們現在只採用這種模式兩個季度，即第二季度和第三季度。因此，我們在這些季度的續約數量有所下降，但另一半，大約一半的客戶甚至還沒有續約。

And so could we start to get more action going with that other half that we're not for renewal. So we've been watching that closely, and that turned out to be the case in the second quarter and then turned out to be the case in the third quarter.

那麼，我們是否可以開始對那些我們不支持續約的另一半採取更多行動？因此，我們一直在密切關注這一點，事實證明第二季確實如此，第三季也是如此。

So I would say those are two really critical things we're watching. The number of logos we bring on, right, because we know that when we land a new logo, we get to then expand that, we get to add services to that and grow the lifetime value of that customer. And then, can we get greater velocity and greater expansion within our existing clients? Okay. You asked about a couple of other data points.

所以我想說，這是我們正在關注的兩個非常關鍵的事情。我們帶來的標誌數量，對吧，因為我們知道，當我們獲得一個新標誌時，我們就可以擴展它，我們可以為其添加服務並增加該客戶的終身價值。那麼，我們能否在現有客戶中獲得更快的速度和更大的擴展？好的。您詢問了其他幾個數據點。

So we're continuing to see our pipelines grow. We had a great quarter for marketing activities. I can't remember if we announced on the last call that we had our Impact Conference. It was incredible. We had a number of prolific authors and speakers who joined us in addition to some of our own.

因此，我們的管道正在不斷增長。本季我們的行銷活動非常順利。我不記得我們是否在上次電話會議上宣布我們召開了影響力會議。這真是令人難以置信。除了我們自己的一些成員外，還有許多多產的作家和演講者加入我們。

We actually had 27,000 people registered to attend. It's driven a tremendous amount of lead flow here through the third quarter. We had 4,000 people attend a webcast that we held on The Power of Leadership in Uncertain Times.

實際上，我們有 27,000 人註冊參加。它推動了第三季大量的潛在客戶流動。我們舉辦了一場以「不確定時期的領導」為主題的網路直播，共有 4,000 人參加。

We had well over 1,000 people attend some live driving performance in uncertain times events. So this theme of everybody is focused on how do we continue to deliver in these uncertain times and are looking to Franklin Covey for the insights and thinking we have. So that's -- those -- that's starting to work its way through our pipeline, both for new logo opportunities and for expansion opportunities.

我們有超過 1,000 人參加了一些不確定時期的現場駕駛表演活動。因此，每個人的主題都集中在我們如何在這些不確定的時期繼續履行職責，並期待富蘭克林·柯維為我們帶來見解和思考。所以這些都開始在我們的管道中發揮作用，既是為了新的標誌機會，也是為了擴張機會。

Maybe just two others quickly to just double-click on that I already mentioned, but I'll highlight again is that we're watching the services attach rate carefully. We watch in the news every day at consulting firms and others who are having clients back away from some of those services.

也許只需快速雙擊我已經提到的另外兩個，但我要再次強調的是，我們正在仔細觀察服務附加率。我們每天在新聞中看到顧問公司和其他公司的客戶不再提供某些服務。

And we're pleased that we had another quarter where we had in the Enterprise division a 60% attach rate. And that number has fluctuated between as high as low 60%s and low 50%s and somewhere in between. And this was another good attachment quarter so obviously something we're also watching.

我們很高興看到企業部門在本季的附加率達到了 60%。這個數字一直在 60% 以下和 50% 以下之間波動。這又是一個好的依戀季度，所以顯然我們也在關注它。

And then maybe just one other thing, Alex, I'd point to, and we'll give more clarity and data on this as we get a couple of more quarters in. But not only did we increase the number of new logos that we sold in the third quarter, but for a good portion of these logos, we're attaching and contracting for more services at the point of sale out of the gates. And that's a function of our shift in our focus to selling to leaders and really making sure that we're selling solutions that deliver outcomes and with those outcomes comes demand for more of our services.

然後也許還有另一件事，亞歷克斯，我想指出，在接下來的幾個季度裡，我們將對此提供更清晰的解釋和數據。但我們不僅增加了第三季銷售的新標誌數量，而且對於其中很大一部分標識，我們還在銷售點附加並簽訂了更多服務合約。這是我們將重點轉向向領導者銷售的結果，我們真正確保銷售的解決方案能夠帶來成果，而這些成果將帶來對我們更多服務的需求。

And so that's -- we'll disclose some metrics on that in the future, not ready to disclose exact metrics on it today. But directionally, we're seeing more services get attached to a number of those new logo wins. So those are just a few and happy to talk about more if you'd like.

所以，我們將來會揭露一些相關指標，但今天還不準備揭露具體指標。但從方向上看，我們看到越來越多的服務與這些新標誌緊密相關。這些只是其中的一部分，如果您願意的話，我們很樂意談論更多。

No, no, that's very helpful. I appreciate the additional color. And then moving to the Education division. This is clearly the season, Q3 and especially Q4 for that business. And I'm actually surprised at the strength and the confidence that you have in the business, given all the uncertainty out there in K-12 land.

不，不，這非常有幫助。我很欣賞這種額外的顏色。然後轉到教育部門。對該業務來說，這顯然是第三季度，尤其是第四季的旺季。考慮到 K-12 領域存在的所有不確定性，我對你們在業務上所展現的實力和信心感到驚訝。

The Education department getting cut in half, ESSER funds sunsetting, things like that. You had 728 new schools in fiscal 2024. Is it your expectation that you'll be in line with that or better in fiscal 2025?

教育部門的經費被削減了一半，ESSER 資金也即將終止，諸如此類。2024 財年，你們有 728 所新學校。您是否期望在 2025 財年達到或超過此目標？

Yeah. As I mentioned a minute ago, we do expect that the way that business is pacing is that we'll be there or potentially even a little bit better, both on the number of new schools we bring on and also the number -- the percentage of schools that we retain. And I would -- just to double-click and support something you said there, we're encouraged.

是的。正如我剛才提到的，我們確實預計業務發展的步伐將會保持不變，甚至可能更好一些，無論是我們引入的新學校數量還是我們保留的學校比例。我會——只需雙擊並支持您在那裡說的話，我們就會受到鼓舞。

I think what -- you can do a year like this where, as you mentioned, the Department of Ed has what happened to it and then ESSER funds after the many years that those have been out there are now sunsetted.

我認為——你可以做這樣的一年，正如你提到的，教育部發生了什麼，然後 ESSER 基金在存在多年之後現在已經停止了。

I think that the ability to grow in that environment speaks to a couple of things. One, the need for a leader -- for a solution like Leader in Me. Two, the quality of that solution and what it's doing in the -- the real measurable outcomes it's producing for schools. And then third, I think Sean and team are doing a great job of navigating what has been a very unique and uncertain environment in education.

我認為在那種環境中成長的能力說明了幾件事。第一，需要一位領導者——像「我心中的領導者」這樣的解決方案。二、該解決方案的品質以及它為學校帶來的真正可衡量的成果。第三，我認為肖恩和他的團隊在應對教育領域非常獨特和不確定的環境方面做得非常出色。

Great. And then last question for you, and I'll let somebody else get in there. When you reported second quarter results, you took down guidance from your original expectations because of government contract cancellations, et cetera. And you put it into four buckets: the $5 million impact from the government contract; international, $4 million; education, $3 million; and US and Canada commercial, $3 million.

偉大的。然後我要問您最後一個問題，我會讓其他人來回答。當您報告第二季業績時，由於政府合約取消等原因，您下調了原先的預期。你把它分成四個部分：政府合約的影響為 500 萬美元；國際影響為 400 萬美元；教育影響為 300 萬美元；美國和加拿大商業影響為 300 萬美元。

So you just reduced the midpoint of guidance by about $10 million for similar reasons. I was wondering if you could address it by bucket, or where is the biggest delta there in terms of expectations?

因此，出於類似的原因，您將指導中點降低了約 1000 萬美元。我想知道您是否可以透過儲存桶來解決這個問題，或者就預期而言最大的增量在哪裡？

Yeah, I would say it's the -- it's not coming from the government direct anymore. There's been a little bit of continued noise in the international number. But I would say the two buckets primarily, while Education is doing great, the impact there is just simply the volume of business that's coming through Education right now. And as you know, that business is about 50% subscription and about 50% materials and services.

是的，我想說的是──它不再直接來自政府了。國際號碼中一直有一些持續的噪音。但我主要要說的是這兩個方面，雖然教育產業做得很好，但其影響僅在於目前透過教育產業產生的業務量。如您所知，該業務約 50% 來自訂閱，50% 來自材料和服務。

And just the timing of getting all those services delivered, particularly as in the uncertain environment, some of the decisions get made just a little bit later. So we've had clients making decisions, but they start to stack up a little bit towards the end of the quarter.

所有這些服務的交付時機，特別是在不確定的環境下，一些決定會稍晚做出。因此，我們讓客戶做出決定，但他們在季度末開始一點累積。

That same phenomenon then would be the fourth bucket you laid out, which is the impact on our Enterprise clients. And again, where the environment in the third quarter certainly didn't become more certain, even became a little bit more uncertain, and that has pushed some of the decision-making back which, as I mentioned in one of those client win examples, we've got $1.5 million -- more than $1.5 million of services contract and ready to be delivered there, we may not be able to get those all scheduled and delivered in the fourth quarter. They're going to -- some of those are going to drift in, and we've got a few like that.

那麼，同樣的現象就是您列出的第四個方面，也就是對我們的企業客戶的影響。再次，第三季度的環境肯定沒有變得更加確定，甚至變得更加不確定，這推遲了一些決策，正如我在一個客戶獲勝示例中提到的那樣，我們有 150 萬美元 - 超過 150 萬美元的服務合約並準備交付，我們可能無法在第四季度完成所有計劃和交付。它們將會——其中一些將會漂流進來，我們也有這樣的一些。

So I would say the bulk of it is related to timing of getting services delivered and also the timing of just some of the decisions that we're tracking to try to get these deals sold, but there may be some that slip into the first quarter. Those would be -- they primarily be a little bit of International, a little bit of Ed just timing of delivery, and then some additional uncertainty that's affected our Enterprise clients and some of their timing.

因此，我想說，這主要與提供服務的時間有關，也與我們正在追蹤的一些決策的時間有關，這些決策旨在嘗試完成這些交易，但有些決策可能會拖延到第一季。這些主要是一點國際性，一點 Ed 只是交付時間，然後是一些影響我們企業客戶及其時間安排的額外不確定性。

Thank you, Paul. I really appreciate that. I'll get back in the queue.

謝謝你，保羅。我真的很感激。我會回到隊列中。

Thanks, Alex.

謝謝，亞歷克斯。

Jeff Martin, ROTH Capital.

傑夫·馬丁（Jeff Martin），羅仕資本（ROTH Capital）。

Thanks. Good afternoon, everyone.

謝謝。大家下午好。

Hi, Jeff.

你好，傑夫。

Good afternoon.

午安.

Hi, Paul. Hi, Jessi. Paul, could you characterize the current environment with respect to how you foresee things potentially improving as we move into fiscal '26? It seems like in the face of perhaps sustained higher tariffs, budgets may continue to be scrutinized on the Enterprise level. Just curious of your thoughts.

你好，保羅。你好，傑西。保羅，您能否描述一下當前的環境，並預測隨著我們進入 26 財年，情況可能會如何改善？看來，面對可能持續上漲的關稅，企業層級的預算可能會繼續受到嚴格審查。只是好奇你的想法。

I think that's probably the case in what we would -- we're in the middle right now -- right in the middle right now of our fiscal '26 planning, and we're certainly planning with that in mind that the tariffs and other actions that are taking that uncertainty, hopefully, it will eventually go away. But in the short run here, we're not planning that it will. And so we're planning to continue to press through the environment just as we have been.

我認為，我們可能就是這種情況——我們現在正處於 26 財年規劃的中間階段，我們在規劃時肯定會考慮到這一點，希望關稅和其他行動能夠消除這種不確定性，最終能夠消失。但從短期來看，我們並沒有計劃這麼做。因此，我們計劃繼續像以前一樣努力改善環境。

Okay. And then I wondered if we could just walk back through time. You look at the growth in deferred revenue. And in a lot of years, that's been in the double digits yet to follow through the subsequent year, we see maybe one-third or less of that in total revenue growth. Just want to give you an opportunity to help us see the bigger picture with respect to the growth in deferred revenue relative to the growth in total revenue.

好的。然後我想知道我們是否可以回到過去。你看看遞延收入的成長。很多年裡，這個數字一直都是兩位數，但如果在接下來的一年裡，我們的總收入成長率可能只有這個數字的三分之一甚至更少。只是想給你一個機會來幫助我們更全面地了解遞延收入的成長相對於總收入的成長。

Well, so the growth in the deferred revenue is driven by the invoiced amounts from prior year. So we -- that's going to translate in terms of where -- what we've already currently have invoiced. And then our current revenue growth is going to be a mix of the subscription revenues that have been contracted over time, but then also the specific delivery of services that get delivered in that particular quarter.

那麼，遞延收入的成長是由前一年的發票金額所推動的。所以我們 — — 這將轉化為我們目前已經開立發票的內容。然後，我們目前的收入成長將是一段時間內簽訂的訂閱收入的混合，也是特定季度交付的具體服務收入的混合。

Right. I'm just -- looking back, services attachment rates relatively stable. The average pass size is increasing in general, each year, growing new logos, and just -- I've made the argument in my research notes that the deferred revenue build should ultimately be caught up by the growth in the total revenue, perhaps I'm missing something here.

正確的。我只是──回顧過去，服務附加率相對穩定。總體而言，每年的平均通行證規模都在增加，新的標誌也在不斷增加，而且——我在我的研究筆記中提出了這樣的論點：遞延收入的增長最終應該被總收入的增長所彌補，也許我在這裡遺漏了一些東西。

Yesh. So one of the items -- so we are seeing the growth in new logos. It's accounts, the new clients that we're signing on. As Paul has mentioned, in terms of the value currently because of the current conditions, we are seeing some of the value being flexed down a little bit at this point in time. So that's contributing as well, but the overall ability to penetrate and get new customers is growing.

是的。其中之一就是我們看到新標誌數量的增長。這是我們簽約的帳戶、新客戶。正如保羅所提到的，就目前的價值而言，由於當前的情況，我們看到部分價值目前有所下降。這也有一定的貢獻，但滲透和獲取新客戶的整體能力正在增強。

I think, Jeff, what you said there is direction -- is right that as the invoice subscription amounts begin to grow again because those have been flat to down a little bit over the last bit of time here. As that -- as those invoice amounts begin to grow, then we'll build up both way out there, unbilled deferred, but then deferred will also begin -- the balance will begin to grow and then that will translate, of course, into reported revenue.

傑夫，我認為你所說的方向是正確的，因為發票訂閱金額開始再次增長，因為在過去的一段時間裡，這些金額一直持平或略有下降。隨著這些發票金額開始增長，我們將在那裡建立未開立的遞延款項，但遞延款項也將開始增長 - 餘額將開始增長，然後當然會轉化為報告的收入。

And so what we're working our way through right now is we've had some -- we've had a number of quarters where the invoice subscription amount has been flat or even a little bit down in this current environment, and that decreases the amount of deferred. The actions we're taking, we believe, are going to start -- we'll start to change that trend and that will be the engine then that will start to pull through greater reported revenue growth out into the future.

因此，我們現在正在努力解決的是，在當前環境下，我們已經有多個季度的發票訂購金額持平甚至略有下降，這減少了遞延金額。我們相信，我們正在採取的行動將開始改變這種趨勢，這將成為未來推動更大報告收入成長的引擎。

Great. And then one more for me if I could. Could you speak to the adoption of AI service delivery? What's the uptake rate with clients currently? And where do you think that can go to? I have to imagine there's a lot of potential leverage in the delivery of services through the --

偉大的。如果可以的話，我還可以再加一個。您能談談人工智慧服務交付的採用情況嗎？目前客戶的接受率是多少？您認為這會有什麼結果呢？我必須想像通過--

Yeah. They're -- it's a great question. In fact, in the win that I highlighted in the call, you might -- I don't know if I -- I might have breezed past it too fast, but one of the things we're utilizing is an AI sales coach as part of our helping clients succeed sales solution where that coach is AI-driven, begins to know and understand your unique circumstances, your industry, the selling environment, and can provide real-time coaching. And so that's one of the applications that we see for AI is in the coaching space.

是的。他們——這是一個很好的問題。事實上，在我通話中強調的勝利中，你可能——我不知道我是否——我可能過快地忽略了它，但我們正在利用的東西之一是人工智能銷售教練，作為我們幫助客戶成功銷售解決方案的一部分，該教練是由人工智能驅動的，開始了解和理解你的獨特情況、你的行業、銷售環境，並可以提供實時指導。這就是我們所看到的人工智慧在教練領域的應用之一。

Of course, we're a company focused on behavior change and transforming behavior and not just of individuals, but collectively across organizations. And we know that behavior change happens not only from being trained, not only from being exposed to new ideas, but having a coach and somebody who can help you sustain that behavior change. It's no different in our industry than it is in trying to get in shape or the same principles apply where a coach is helpful.

當然，我們是一家專注於改變行為和轉變行為的公司，不僅是個人，也是整個組織的集體。我們知道，行為的改變不僅需要培訓，不僅需要接觸新思想，還需要有教練和可以幫助你維持這種行為改變的人。在我們的行業中，這與試圖保持健康沒有什麼不同，或者在教練提供幫助的情況下適用相同的原則。

And I think where coaching has historically been a human-to-human endeavor, we're starting to see now, and we've got an AI coach ourselves where the smarter the more intelligent that gets, we've got -- now got about 43% of our clients that are beginning to use our AI coach. And we think that we'll -- we expect to continue to build that out more and more.

我認為，從歷史上看，輔導一直是人與人之間的努力，但現在我們開始看到這一點，我們自己也有了一位人工智慧教練，他越聰明，就越有智慧，現在大約有 43% 的客戶開始使用我們的人工智慧教練。我們認為，我們期望繼續不斷拓展這一領域。

And that could be a very low-cost way for us and very leveraged way for us and for our clients to make available to them something that historically was really only reserved for the very tip top of an organization. Only a few people and companies received the benefit of executive coach. And we're going to focus on how can we democratize that through AI. So that's just one example of how we are using today and plan to continue to use it.

對於我們和我們的客戶來說，這可能是一種成本非常低、槓桿率非常高的方式，可以為他們提供一些歷史上只為組織高層保留的東西。只有少數人和公司獲得了高階主管教練的益處。我們將重點放在如何透過人工智慧實現民主化。這只是我們今天使用併計劃繼續使用它的一個例子。

I think another -- just another quick example, by the way, is the deep content and solution customization and personalization that we can do. Many of our largest engagements over the years have had a custom element to them, where the client wants to customize the content or tailor the content to their unique industry, to their unique client. They want tailored examples to really make that the solutions unique to them and helpful to them. AI now helps us do that much more quickly and at an even lower cost.

順便說一下，我認為另一個簡單的例子就是我們可以進行的深度內容和解決方案客製化和個人化。多年來，我們的許多大型專案都包含客製化元素，客戶希望客製化內容或根據其獨特的行業和獨特的客戶自訂內容。他們希望透過量身定制的例子來真正使解決方案變得獨一無二並且對他們有幫助。現在，人工智慧可以幫助我們更快、更低成本地完成這項任務。

Great to hear. Thank you.

很高興聽到這個消息。謝謝。

Yeah. Thanks, Jeff.

是的。謝謝，傑夫。

Nehal Chokshi, Northland Capital Markets.

Nehal Chokshi，北國資本市場。

Hi, Nehal.

你好，Nehal。

Nehal, your line might be on mute.

Nehal，你的線路可能處於靜音狀態。

Can you hear me now?

現在你能聽到我說話嗎？

We can now, yeah. Hey, Nehal. How you doing?

是的，現在我們可以了。嘿，Nehal。你好嗎？

Good. Good.

好的。好的。

Oops, we lost you again.

哎呀，我們又失去你了。

So listen, subscription revenue invoice, that's down 8% year over year. And from what I gather, the principal drivers here is it's declining because of the department of government efficiency plus new headwinds associated with the Department of Education funding uncertainty. Is that correct?

所以聽著，訂閱收入發票比去年同期下降了 8%。據我所知，主要原因是由於政府部門效率低下以及教育部資金不確定性帶來的新阻力而導致的下降。對嗎？

I would say those are two of the elements. And I would say the third is just some of the uncertainty that our Enterprise clients are experiencing as a flow-through from tariffs and other government actions that have been taken. A good bulk of it is the first two you mentioned.

我想說這是其中兩個要素。我想說的第三點是，我們的企業客戶由於關稅和其他政府行動而經歷的一些不確定性。其中很大一部分就是您提到的前兩者。

So nothing to do with Department of Education funding uncertainty with respect to subscription revenue invoice being down then?

那麼，訂閱收入發票下降與教育部資金不確定性無關嗎？

No, no, that's also -- yeah, I mean to say -- so yeah, the two things. The direct impact on the federal government and DOGE. Some of the Department of Education, some related part of education, then there's just the third point I was making is that the some related to the macroeconomic uncertainty impacting some of our Enterprise corporate clients.

不，不，那也是——是的，我的意思是說——所以是的，兩件事。對聯邦政府和DOGE的直接影響。教育部的一些相關部分，也就是我要說的第三點，就是一些與宏觀經濟不確定性有關的內容，這些內容影響著我們的一些企業客戶。

Okay. Okay. Got you. All right. So given that subscription revenue is subscription revenue invoice is down 8% year over year, which arguably is your best leading indicator at this point in time.

好的。好的。明白了。好的。因此，考慮到訂閱收入，訂閱收入發票年減 8%，這可以說是目前最好的領先指標。

Then you reconciled that with the statement that more new clients than a year ago, robust expansion across the proportion of our client base, and expectedly, retention rates remain strong and consistent with previous quarters and historical trends.

然後，您將這一點與以下聲明相協調：新客戶數量比一年前有所增加，客戶群比例強勁擴張，並且預期留存率依然強勁，與前幾季度和歷史趨勢一致。

I mean, given those three positive things, that would imply that invoice subscription revenue should be up not down 8% year over year. even with these headwinds being signed. So can you just help me bridge here what's going on?

我的意思是，考慮到這三個積極因素，這意味著發票訂閱收入應該會上升，而不是比去年同期下降 8%。即使面臨這些不利因素。那麼你能幫我解釋一下到底發生了什麼事嗎？

Yeah. A couple of things I'd point to. It's a great point. So what we've got going on is on the let's talk about just some of the real fairly stabilizing and stable pieces in the business. One is on the client retention side. So the client retention has remained quite steady. But we do have some clients who have downsize the size of their subscription in this environment.

是的。我想指出幾件事。這是一個很好的觀點。因此，我們現在要討論的是業務中一些真正相當穩定的部分。一是客戶保留方面。因此客戶保留率一直保持相當穩定。但在這種環境下，我們確實有一些客戶縮減了訂閱規模。

So we're -- we don't want that, but we're glad that the choice would have been to downsize and go away and instead they're staying with us, but they have -- some of them have downsized the size of their path. So that's it. That's a drag on subscription growth. And it could be true the clients stay but also that the revenue associated with that client is lower this year than it was last year.

所以我們——我們不希望這樣，但我們很高興我們的選擇是縮小規模並離開，而他們留在了我們身邊，但他們——其中一些人已經縮小了他們的道路規模。就是這樣。這對訂閱量的成長是一個拖累。有可能客戶確實會留下來，但今年與該客戶相關的收入可能會低於去年。

A second thing going on in that number is that while we are seeing expansion across a greater percentage of our clients, that doesn't mean that every client is expanding. And so we're just looking there as a green shoot and a leading indicator that -- that's an activity indicator that as our sales force is getting involved with these clients at a deeper level, we are seeing more of them expand.

這個數字的另一個意義是，雖然我們看到越來越多的客戶在擴張，但這並不意味著每個客戶都在擴張。因此，我們只是將其視為一個綠芽和一個領先指標——這是一個活動指標，隨著我們的銷售人員與這些客戶的互動越來越深入，我們看到越來越多的客戶在擴張。

But some of that expansion is not at the same dollar level as it was in previous periods when the economy is more uncertain. So where we may have had a client expand for hundreds of users, they may expand for 800 user -- 100 users right now.

但部分擴張的美元水準與之前經濟較不確定的時期有所不同。因此，我們可能讓客戶擴展到數百個用戶，現在他們可能擴展到 800 個用戶 - 100 個用戶。

The third thing that's a little bit of noise in the number this year, Nehal, is that we had quite a large client last year that was a subscription client that converted that subscription to, for some reasons related to their business, converted that subscription to an intellectual property agreement.

Nehal，今年數字中第三個有點奇怪的事情是，去年我們有一個相當大的客戶，他是一個訂閱客戶，由於一些與其業務相關的原因，他將訂閱轉換為知識​​產權協議。

And so that renewal this year as the corporate client -- there was no renewal activity -- and that's actually -- it was a couple of hundred basis points of drag just from that one client. And so those three areas will be, I think, the primary reasons why it could be true that we're seeing some more new logos we're seeing some expansion across a greater portion of our clients than we did a year ago.

因此，今年作為企業客戶的續約 - 沒有續約活動 - 事實上 - 僅來自該客戶就造成了幾百個基點的拖累。因此，我認為這三個方面是為什麼我們看到更多新標誌、看到比一年前更多的客戶擴展的主要原因。

And at the same time, there's some offsetting factors from -- of the clients that aren't renewing. Some of those have been a little bit larger and some of the expansion dollars aren't quite as large in this environment.

同時，還有一些抵銷因素，例如客戶沒有續約。其中一些規模稍大一些，而且在這種環境下，一些擴張資金並不那麼大。

But I would just say that largely, we're encouraged that clients are hanging in there. Their value -- they get value from the subscription. I think that this gives us a base then to continue to mine and continue to work with to drive future expansion as we move into next year.

但我只想說，總體而言，我們很高興看到客戶能夠堅持下去。他們的價值——他們從訂閱中獲得價值。我認為這為我們在明年繼續開採和繼續努力推動未來擴張奠定了基礎。

Okay. That's a helpful description there. And then you have one quarter left at $10 million revenue range. So that's a really big revenue range. Do you really have that much uncertainty?

好的。這是一個很有幫助的描述。然後你還剩下一個季度的收入在 1000 萬美元左右。所以這是一個非常大的收入範圍。你真的有那麼多不確定性嗎？

I mean I think what we're trying to capture is the fact that the delivery of services and the timing for decision-making, I mean, it is one quarter left. And so to be able to close some of the sales that we're working on and also be able to deliver within the quarter is tight.

我的意思是，我認為我們試圖捕捉的是服務的交付和決策的時間，我的意思是，還剩下一個季度。因此，為了能夠完成我們正在進行的一些銷售並能夠在本季度內交付，時間非常緊迫。

There is a possibility, though. So that's the top end of the range is reflecting that we were able to close and do everything in this quarter, but there's a realistic view that it may not happen and things could get pushed into next year.

但還是有可能的。因此，該範圍的最高端反映了我們能夠在本季度完成所有工作，但現實的觀點是，這可能不會發生，事情可能會推遲到明年。

I would just say that the part of the -- if we were closing our quarter -- or closing our year in our first quarter or third quarter or something like that, the range is obviously to be tighter. So Education, Sean and team are doing a great job, and that business is getting larger and larger every year.

我只想說，如果我們在第一季或第三季結束我們的季度或年度或類似情況下結束我們的年度，範圍顯然會更緊。因此，在教育方面，肖恩和他的團隊做得很好，而且業務每年都在擴大。

And it still is a -- despite great efforts with the subscription business to smooth some of those quarters out, is still a really big fourth quarter business and getting bigger every year. And so that leads us to a little bit of a larger range. But I think we feel good about the range and where we might end up in that range.

儘管我們付出了巨大的努力來平滑訂閱業務，但它仍然是第四季度的重要業務，並且每年都在成長。這樣，我們的範圍就稍微大一點了。但我認為我們對這個範圍以及我們可能在這個範圍內達到的最終結果感到滿意。

Okay. And then finally, the $10 million revenue reduction, but only a $2 million EBITDA reduction at the low end implies that you had greater operational quarterly cost cuts than what you had anticipated a quarter ago? A, is that true? And B, how much is that?

好的。最後，收入減少了 1000 萬美元，但 EBITDA 僅減少了 200 萬美元，這是否意味著您本季的營運成本削減幅度超過了您上一季的預期？答，是真的嗎？那麼 B，那是多少？

Yeah. So as I mentioned in my prepared remarks, we're able to stay within that range at the midpoint and at the high end because of the cost reduction actions. So we -- the annualized view for next year is around $8 million.

是的。正如我在準備好的發言中提到的那樣，由於採取了降低成本的措施，我們能夠保持中間值和高端的範圍內。因此，我們預計明年的年化收益約為 800 萬美元。

For this year, we benefited from about $3 million of cost savings in Q3, and we're anticipating that to yield $4 million savings in Q4. So $7 million this year through the cost reduction actions that we took, and that's what's benefiting our EBITDA even though we have the revenue decline.

今年，我們在第三季節省了約 300 萬美元的成本，預計第四季將節省 400 萬美元。因此，我們今年透過採取成本削減措施獲得了 700 萬美元的收入，儘管收入有所下降，但這仍使我們的 EBITDA 受益。

And that $3 million and $4 million for Q3 and Q4, that's not something that was contemplated previously.

第三季和第四季的 300 萬美元和 400 萬美元是之前沒有考慮過的。

Some of it --

其中一些--

A small portion of it was but because of Q2 and seeing that revenue is coming down, we took more actions than what we do since then.

其中一小部分是，但由於第二季收入下降，我們採取了比那時更多的行動。

Got it. That's great. Thank you very much.

知道了。那太棒了。非常感謝。

Thanks, Nehal. Good to talk to you.

謝謝，Nehal。很高興和你談話。

Dave Storms, Stonegate.

戴夫‧斯托姆斯 (Dave Storms)，Stonegate。

Hi, Dave.

你好，戴夫。

Good afternoon.

午安.

Hi, Paul. Afternoon, Jessi. Just wanted to go back to Education real quickly here. With it staying relatively strong year over year despite the mentioned materials bump received in FY24. As you continue to make sales here, could you see that materials bump return in another wave? Or would you expect Education revenues to be pretty stable here on out?

你好，保羅。下午好，傑西。我只是想盡快回到教育領域。儘管 24 財年材料價格上漲，但其業績較去年同期仍保持相對強勁。隨著您繼續在這裡進行銷售，您是否會看到材料再次出現回升？還是您認為教育收入從現在起會相當穩定？

So it's a great question. The way that -- just to step back, the way that business works for a second is that every school that becomes the Leader in Me school, whether they're part of an individual school, a district or a statewide contract at the school level, they're purchasing a subscription to all the Leader in Me content tools, portal, et cetera.

這是一個很好的問題。退一步說，商業運作的方式是，每一所成為“我心中的領導者”學校的學校，無論它們是屬於單一學校、學區還是全州學校級別的合同，它們都會購買“我心中的領導者”所有內容工具、門戶網站等的訂閱。

And then they don't have to, but many schools in education, they love physical materials. And so they'll also purchase physical materials. And then, of course, part of the offering is the implementation of the Leader in Me that we do with teachers and faculty and then some doing coaching support.

然後他們就不必這樣做了，但是許多學校的教育都喜歡實體材料。因此他們也會購買實體材料。當然，我們提供的服務的一部分是與教師和教職員工一起實施“我內心的領導者”，然後還提供一些輔導支援。

So what happens with material is most schools do by those materials, both when they start initially and as they renew, we sometimes get a bolt in material that will happen in the quarter, and those are tied to when we win a very large district or in some cases, we've been winning very large statewide contracts where instead of schools coming on one at a time or in small clumps, these districts or states will bring on schools in very large comps all the time. And so they're ordering materials for 50 schools at a time instead of 5 schools at a time.

因此，大多數學校在材料方面都會這樣做，無論是在最初開始還是在更新時，我們都會獲得本季度將要發生的材料，這些材料與我們贏得一個非常大的學區或在某些情況下有關，我們贏得了非常大的全州合同，而不是學校一次或小規模地加入，這些學區或州會一直以非常大的比例引入學校。因此，他們一次為 50 所學校訂購材料，而不是一次為 5 所學校訂購。

And so you see a little bit of that from quarter to quarter, just -- and the impact is just depending on how many schools we signed up in that particular quarter. So last year, in the third quarter, we had a very large contract come through, and we shipped a lot of materials.

因此，您會看到每個季度都會有一點這樣的情況——其影響取決於我們在特定季度簽了多少所學校。去年第三季度，我們簽訂了一份非常大的合同，並運送了大量材料。

This year, we've got a -- we had a large one come in earlier in the year. And knock on wood, we hope we've got a large one coming in, in the fourth quarter and there'll be some materials there as well. And so that's why the materials bump up and down a little bit, just tie to those sales.

今年，我們有一個——今年早些時候我們就有一個大型的。敲敲木頭，我們希望在第四季能有一個大的項目進來，那裡也會有一些材料。這就是為什麼材料價格會略有波動，只是與銷售量掛鉤。

So God willing, there'll be a lot of big materials quarters out in the future as well as we continue to land big districts and make inroads with more states.

所以，如果上帝願意，未來將會有許多大型材料區，並且我們將繼續佔領大區並與更多州取得進展。

Understood, which is part of the mentioned strategy. So that's perfect. I want to also circle back to -- you mentioned in your prepared remarks a win back they had from a client earlier in this year. I know you've also mentioned that there's tariff uncertainty in the near future. Can you maybe lay out the environment for more win backs, more warm leads that might be in your pipeline compared to new leads in the near future?

明白了，這是所提到的策略的一部分。這太完美了。我還想回到——您在準備好的發言中提到，他們今年早些時候從一位客戶那裡贏回了生意。我知道您也提到近期關稅存在不確定性。您能否規劃出一個環境，​​以便在不久的將來，與新線索相比，可以贏得更多回頭客，獲得更多可能出現在您的銷售管道中的熱門線索？

Yeah. Yeah, great question. So as I mentioned, we tend to have -- we have tended to have and even in this environment, continue to see that the percentage of clients who have an All Access Pass -- and I'll just talk about Enterprise for a second, but it's also true in education for Leader in Me.

是的。是的，很好的問題。正如我所提到的，我們傾向於——我們傾向於——即使在這種環境下，仍然看到擁有全通行證的客戶比例——我只想談一談企業，但在「我心中的領導者」的教育中也是如此。

But the percentage of clients that have an All Access Pass, that percentage that renew year to year has remained pretty consistent. The revenue associated has gone up and down a little bit depending on the environment -- the economic environment. But even though it is a relatively high percentage, it's remain consistent, we do have clients to churn.

但擁有全通行證的客戶比例以及每年續訂的比例保持相當穩定。相關收入會根據環境——經濟環境——略有上升或下降。但儘管這個比例相對較高，但仍保持一致，我們確實有客戶流失。

And so one of our big focus area for us is we have this mantra internally that like once a Franklin Covey client, always a Franklin Covey client, clients for life, right? I'm thinking about maybe buying a T-shirt for everybody in the company that says clients for life. We really hate it when we lose a client. And so we don't let a client at churn like go away. We reassign them.

因此，我們關注的重點領域之一就是我們內部有這樣一個口頭禪：一旦成為富蘭克林·柯維的客戶，就永遠是富蘭克林·柯維的客戶，終身客戶，對嗎？我正在考慮給公司裡的每個人買一件 T 卹，上面寫著「終身客戶」。當我們失去客戶時，我們真的很痛苦。因此，我們不會讓客戶流失。我們重新分配他們。

They have a salesperson and a marketing effort and our SDR team continues to stay in touch with them, and we do win clients back. that is, like you said, a very warm lead.

他們有銷售人員和行銷人員，我們的 SDR 團隊繼續與他們保持聯繫，我們確實贏回了客戶。就像你說的，這是一個非常溫暖的線索。

And oftentimes, clients are churning, they love the solution, they love their client partner. We do win-loss interviews. And when we do a -- a churn interview like that, we consistently hear. We love your solution. We love the team that's supporting us.

很多時候，客戶都在流失，他們喜歡這個解決方案，他們喜歡他們的客戶合作夥伴。我們進行勝負採訪。當我們進行這樣的客戶流失採訪時，我們總是聽到這樣的聲音。我們喜歡您的解決方案。我們熱愛支持我們的團隊。

This thing happened and because of that, we can't renew right now, but we'd like to come back. And so we do a good job of trying to chase those clients. And as you mentioned, the reason I brought up the one from second quarter of fiscal '23 is we talked about that on the call.

發生了這件事，因此我們現在無法續約，但我們願意回來。因此，我們在爭取這些客戶方面做得很好。正如您所提到的，我之所以提起 23 財年第二季的情況，是因為我們在電話會議上討論過這個問題。

And so I just wanted to come back for those who remember that and say we had a little bit of a celebration in here internally, and I said I'm bringing that back up on the scrip because we got that client back and it was a -- it was a nice thing to see happen. So it's always part of what we do, and we'll continue to do it in the future.

因此，我只是想讓那些記得這件事的人回來，說我們內部舉行了一點慶祝活動，我說我會在股票代碼上再次提到這一點，因為我們找回了那個客戶，這是一件很高興看到的事情。所以這始終是我們工作的一部分，我們將來還會繼續這樣做。

That's perfect. Thank you for taking my questions.

那很完美。感謝您回答我的問題。

Yeah. Thanks, Dave. Have a good day.

是的。謝謝，戴夫。祝你有美好的一天。

Thank you. At this time, I'm not showing any further questions. I would now like to turn it back over to Paul for any closing remarks.

謝謝。目前，我沒有提出任何其他問題。現在我想把發言權交還給保羅，請他做最後的總結發言。

Just thank you again, everybody, for joining today. Thanks for your continued interest, the time you spend to understand the story, and to follow us. We're grateful for you. And we look forward to being back again in November to report on the full -- the fourth quarter and the full-year fiscal results. And hope you have a great rest of your day. And for those that are in the US, we hope we have a great Fourth of July.

再次感謝大家今天的參與。感謝您一直以來的關注、花時間了解這個故事並關注我們。我們很感激你。我們期待 11 月再次報告第四季度和全年財務業績。祝您今天剩餘的時間過得愉快。對於那些在美國的人們，我們希望度過一個愉快的七月四日。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。祝大家有個愉快的一天。