Getty Images Holdings Inc (GETY) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to Getty Images' Second Quarter 2023 Earnings Conference Call. Today's call is being recorded. We have allocated 1 hour for prepared remarks and Q&A.

下午好，歡迎參加 Getty Images 2023 年第二季度收益電話會議。今天的通話正在錄音。我們分配了 1 個小時來準備發言和問答。

At this time, I would like to turn the conference over to Steven Kanner, Vice President of Investor Relations and Treasury at Getty Images. Thank you. You may begin.

這次，我想將會議交給蓋蒂圖片社投資者關係和財務副總裁史蒂文·坎納 (Steven Kanner)。謝謝。你可以開始了。

Good afternoon, and welcome to Getty Images Second Quarter 2023 Earnings Call. Joining me on today's call are Craig Peters, Chief Executive Officer; and Jen Leyden, Chief Financial Officer.

下午好，歡迎參加 Getty Images 2023 年第二季度財報電話會議。與我一起參加今天電話會議的還有首席執行官克雷格·彼得斯 (Craig Peters)；和首席財務官 Jen Leyden。

As noted in today's press release, the financial results for the second quarter ended June 30, 2023, and related comparisons to prior periods included in this release are preliminary. The company expects to file a Form 12b-25 with the Securities and Exchange Commission to disclose that it will not be able to file its Form 10-Q by its due date of August 14, 2023, and may not file within the 5-day extension period allowed by the forum. The delay in filing 10-Q is due to the company's independent auditors requiring additional time for additional audit processes in response to a comment arising from an inspection of the audit work papers of the company's 2022 financial statements. As of this date, we are not aware of nor has our independent auditor advised us of any material misstatement to the 2022 financial statements.

正如今天的新聞稿所述，截至 2023 年 6 月 30 日的第二季度財務業績以及本新聞稿中包含的與前期的相關比較均為初步結果。該公司預計將向美國證券交易委員會提交 12b-25 表格，以披露其無法在 2023 年 8 月 14 日截止日期之前提交 10-Q 表格，並且可能不會在 5 天內提交論壇允許的延長期限。延遲提交 10-Q 的原因是，公司的獨立審計師需要額外的時間進行額外的審計流程，以回應檢查公司 2022 年財務報表審計工作底稿時提出的意見。截至目前，我們不知道也沒有向我們建議 2022 年財務報表存在任何重大錯報。

We would like to remind you that this call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks, uncertainties and assumptions, which could cause our actual results to differ materially from these statements. These risks, uncertainties and assumptions are highlighted in the forward-looking statements section of today's press release and in our filings with the SEC. Links to these filings and today's press release can be found on our Investor Relations website at investors.gettyimages.com.

我們想提醒您，本次電話會議將包括 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。這些陳述受到各種風險、不確定性和假設的影響，可能導致我們的實際結果與這些陳述。這些風險、不確定性和假設在今天新聞稿的前瞻性陳述部分以及我們向美國證券交易委員會提交的文件中得到了強調。這些文件和今天新聞稿的鏈接可以在我們的投資者關係網站 Investors.gettyimages.com 上找到。

During our call today, we will also reference certain non-GAAP financial information, including adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA less CapEx, free cash flow and currency-neutral growth rates. We use non-GAAP measures in some of our financial discussions as we believe they assist investors in understanding the core operating results that management uses to evaluate the business. Reconciliations of GAAP to non-GAAP measures as well as the description, limitations and rationale for using each measure can be found in our filings with the SEC.

在今天的電話會議中，我們還將參考某些非 GAAP 財務信息，包括調整後 EBITDA、調整後 EBITDA 利潤率、調整後 EBITDA 減去資本支出、自由現金流和貨幣中性增長率。我們在一些財務討論中使用非公認會計原則衡量標準，因為我們相信它們有助於投資者了解管理層用來評估業務的核心經營業績。 GAAP 與非 GAAP 衡量標準的調節以及使用每項衡量標準的描述、限制和理由可以在我們向 SEC 提交的文件中找到。

After our prepared remarks, we will open the call for your questions. With that, I will hand the call over to our Chief Executive Officer, Craig Peters.

在我們準備好發言後，我們將開始電話詢問您的問題。接下來，我會將電話轉交給我們的首席執行官克雷格·彼得斯 (Craig Peters)。

Thanks, Steven, and thanks to everyone for joining our Getty Images Second Quarter 2023 Earnings Call. I will start by addressing the quarter's business performance and progress, the high level before Jen takes you through the full second quarter financial results.

謝謝史蒂文，也感謝大家參加我們的蓋蒂圖片社 2023 年第二季度財報電話會議。我將首先介紹本季度的業務績效和進展，然後 Jen 向您介紹完整的第二季度財務業績。

Second quarter of 2023 reported revenue was $225.7 million, representing a year-on-year decline of 3.3% on a reported basis and a currency-neutral decline of 2%. Our adjusted EBITDA finished at $66.5 million for the quarter. This reflects a reported year-on-year decline of 10.3% and a currency-neutral decline of 8.9% with EBITDA more heavily impacted by legal costs associated with previously disclosed litigation.

2023 年第二季度報告收入為 2.257 億美元，按報告計算同比下降 3.3%，剔除貨幣因素後下降 2%。本季度調整後 EBITDA 為 6650 萬美元。這反映了報告的同比下降 10.3%，貨幣中性下降 8.9%，而 EBITDA 更嚴重地受到先前披露的訴訟相關法律費用的影響。

While we continue to see increased utilization of our content and increased customer commitment overall, these numbers are not what we wanted to finish the quarter. Macroeconomic conditions are pressuring our agency business. The writer and actor strikes have also impacted our entertainment business and our media and production customers. While these factors are largely outside of our control, we are not happy with our performance and are committed to elevating our sales execution in the face of challenging market conditions.

雖然我們繼續看到我們的內容利用率不斷提高，整體客戶承諾不斷增加，但這些數字並不是我們希望在本季度結束時實現的目標。宏觀經濟形勢給我們的代理業務帶來壓力。編劇和演員的罷工也影響了我們的娛樂業務以及我們的媒體和製作客戶。雖然這些因素在很大程度上超出了我們的控制範圍，但我們對自己的業績並不滿意，並致力於在充滿挑戰的市場條件下提高我們的銷售執行力。

We were pleased to add U.S. Soccer as a new partner in a multiyear agreement and renew our agreements with Major League Baseball and the Tribeca Film Festival. It has also been great to see the stellar execution of our world-class Editorial team on the ground in Australia and New Zealand, covering the FIFA Women's World Cup as the competition's authorized photographic agency. It's a designation Getty Images has held since 2009.

我們很高興在多年協議中添加美國足球作為新合作夥伴，並與美國職業棒球大聯盟和翠貝卡電影節續簽協議。我們也很高興看到我們世界一流的編輯團隊在澳大利亞和新西蘭的出色執行力，作為賽事的授權攝影機構對 FIFA 女足世界杯進行報導。這是 Getty Images 自 2009 年以來一直持有的稱號。

On the AI front, we continue to play to the long term, and I'm pleased with the progress we are making in partnership with NVIDIA to build and launch a high-quality, commercially viable, fully indemnified, creator-responsible generative AI service that gets set alongside our other highly differentiated industry-leading services. We are now in limited alpha and expect to launch later this quarter.

在 AI 方面，我們將繼續著眼於長期發展，我對我們與 NVIDIA 合作所取得的進展感到高興，我們正在構建和推出高質量、商業上可行、完全有保障、由創作者負責的生成式 AI 服務它與我們其他高度差異化的行業領先服務並列。我們現在處於有限的阿爾法階段，預計將在本季度晚些時候推出。

We're also excited to expand the deployment of our Natural Language search to better surface our pre-shot content in response to customer needs. Our pre-shot content continues to offer a compelling customer value as it's free to search, substantially more time efficient and provides for a unique level of creativity, authenticity and quality.

我們還很高興能夠擴大自然語言搜索的部署，以更好地呈現我們的預拍攝內容，以滿足客戶的需求。我們的預拍攝內容繼續提供引人注目的客戶價值，因為它可以免費搜索，顯著提高時間效率，並提供獨特水平的創造力、真實性和質量。

Using natural language processing, we now return a much broader set of high-quality results even against the most complex search terms. For those at a browser to see this in action, I would encourage you to go to istock.com and search colorful umbrellas seen from below hanging over a street and wait to see the results. Then try the same at other content providers' site.

使用自然語言處理，我們現在可以返回更廣泛的高質量結果，即使是針對最複雜的搜索詞。對於那些使用瀏覽器查看此操作的人，我建議您訪問 istock.com 並蒐索從下方看到的懸掛在街道上的彩色雨傘，然後等待查看結果。然後在其他內容提供商的網站上嘗試相同的操作。

When asked about what keeps me up at night, my answer is always the same, execution. It is entirely within our control. It is a more difficult environment and our execution needs to match it head on. My colleagues and I are committed to elevating our performance throughout the second half, and we remain focused on building for the long term through differentiated and high-quality offerings required by our customers and through the preservation of our extremely unique assets.

當被問及是什麼讓我徹夜難眠時，我的答案總是一樣的，那就是執行力。這完全在我們的控制範圍內。這是一個更加困難的環境，我們的執行力需要迎頭趕上。我和我的同事致力於在下半年提高我們的業績，我們仍然專注於通過提供客戶所需的差異化和高質量產品以及保護我們極其獨特的資產來實現長期發展。

With that, I'll hand the call over to Jen, who will take you through the more detailed financials.

接下來，我會將電話轉交給 Jen，她將帶您了解更詳細的財務狀況。

As Craig mentioned, our second quarter results were disappointing, with revenue impacted by ongoing macroeconomic pressures, challenges in our agency business and adverse impact from the actors and writers strike and with adjusted EBITDA also impacted by ongoing litigation costs.

正如克雷格提到的，我們第二季度的業績令人失望，收入受到持續的宏觀經濟壓力、代理業務的挑戰以及演員和編劇罷工的不利影響的影響，調整後的EBITDA 也受到持續訴訟費用的影響。

I'll begin by reviewing some of the key operating metrics or KPIs. Note, today's press release contains information on all 7 of our KPIs. All KPI metrics are as of the trailing 12 months or LTM period ended June 30, 2023, with comparison to the LTM period ended June 30, 2022.

我將首先回顧一些關鍵運營指標或 KPI。請注意，今天的新聞稿包含有關我們所有 7 個 KPI 的信息。所有 KPI 指標均截至 2023 年 6 月 30 日的過去 12 個月或 LTM 期間，與截至 2022 年 6 月 30 日的 LTM 期間進行比較。

As a reminder, beginning with our Q3 2022 results, we made 2 go-forward changes to our customer data reporting. I'll highlight the impact of these changes on total active annual subscribers and on total purchasing customers, which are the KPIs more meaningfully impacted by those changes. We will anniversary these changes in the third quarter and will have like-for-like comparisons thereafter.

謹此提醒，從 2022 年第三季度業績開始，我們對客戶數據報告進行了 2 項前瞻性更改。我將重點介紹這些變化對年度活躍訂戶總數和購買客戶總數的影響，這些 KPI 受這些變化的影響更有意義。我們將在第三季度紀念這些變化，並隨後進行同類比較。

Total purchasing customers were 830,000 compared to 843,000 in the comparable 12-month period due in large part to the changes to previously discussed customer data reporting. Absent the reporting changes, total purchasing customers would have been 839,000. On a sequential basis, total purchasing customers remained steady from Q1 levels. We delivered another quarter of significant growth in active annual subscribers, adding 93,000 to reach 182,000 or growth of approximately 104% over the corresponding period in 2022.

購買客戶總數為 830,000 名，而可比 12 個月期間為 843,000 名，這在很大程度上是由於之前討論的客戶數據報告發生了變化。如果沒有報告變化，購買客戶總數將為 839,000 名。環比來看，購買客戶總數較第一季度保持穩定。我們的年度活躍用戶數量又實現了一個季度的顯著增長，增加了 93,000 名，達到 182,000 名，比 2022 年同期增長約 104%。

Absent the customer data reporting changes noted a moment ago, the increase would have still been strong at 82% or 73,000 subscribers added. The strength in annual subscribers was driven by e-commerce offerings, including growth of our smaller iStock annual sub and the newer Unsplash+ subscription as well as steady growth in our Premium Access subscriptions.

如果沒有剛才提到的客戶數據報告變化，訂閱用戶的增長仍將強勁，達到 82%，即 73,000 名訂閱者。年度訂戶數量的增長是由電子商務產品推動的，包括我們較小的 iStock 年度訂閱和較新的 Unsplash+ 訂閱的增長，以及我們的 Premium Access 訂閱的穩定增長。

Notably, we are pleased to see substantial progress in our efforts to expand our geographic footprint in various markets leveraging our e-commerce subscription offering to attract over 23,000 new annual subscribers across our growth markets in LATAM, APAC and EMEA, and over 40,000 new annual subscribers in our core markets, which include the U.S., Canada, France, Germany, the U.K., Japan and Australia.

值得注意的是，我們很高興看到我們在擴大我們在各個市場的地理覆蓋範圍方面取得了實質性進展，利用我們的電子商務訂閱服務在拉丁美洲、亞太地區和歐洲、中東和非洲的增長市場吸引了超過23,000 名新年度訂閱者，以及超過40,000 名新年度訂閱者我們核心市場的訂戶，包括美國、加拿大、法國、德國、英國、日本和澳大利亞。

Our growing mix of revenue from subscription products exceeded 50% for the third straight quarter and grew to 51.8%, up from 50.7% in Q1 and from 48.2% as of Q2 2022. Our revenue retention rate for our annual subscriber customers was a healthy 98.5% compared to 101.9% in the LTM period ended June 30, 2022. The slight decline in our revenue retention rate was primarily driven by lower revenue retention rates on some of our smaller e-commerce subscription customers.

我們來自訂閱產品的收入增長組合連續第三個季度超過50%，並從第一季度的50.7% 和截至2022 年第二季度的48.2% 增長至51.8%。我們的年度訂閱客戶的收入保留率為健康的98.5 %，而截至 2022 年 6 月 30 日的 LTM 期間為 101.9%。我們的收入保留率略有下降，主要是由於我們一些規模較小的電子商務訂閱客戶的收入保留率較低。

Paid download volume rose by 1.1% to 94 million year-over-year, speaking to the continued customer value being delivered through our offerings. And last, our video attachment rate rose to 13.5% from 12.2% in Q2 2022. While we continue to see steady growth in this metric, it remains a key growth opportunity for us as we continue to focus on executing across increased customer awareness of our video offering, improved search and site prominence for our video content and upselling a video into subscription.

付費下載量同比增長 1.1%，達到 9400 萬次，這說明我們的產品持續為客戶帶來價值。最後，我們的視頻附件率從2022 年第二季度的12.2% 上升至13.5%。雖然我們繼續看到該指標穩步增長，但它仍然是我們的一個關鍵增長機會，因為我們將繼續專注於提高客戶對我們的服務的認識。視頻服務、改進視頻內容的搜索和網站知名度以及將視頻追加銷售為訂閱。

Turning to our financial performance. In addition to some of the adverse revenue impact from macro agency and the U.S. Hollywood strikes previously mentioned, our Q2 results were also impacted by foreign currency headwinds from a stronger U.S. dollar, primarily with respect to the euro and the pound. These headwinds drove differences between reported and currency-neutral performance, although more moderate than the prior few quarters. Assuming rates hold relatively steady to where we see them today, we expect foreign currency to turn to a slight tailwind in the back half of 2023.

轉向我們的財務業績。除了前面提到的宏觀機構和美國好萊塢罷工對收入造成的一些不利影響外，我們第二季度的業績還受到美元走強（主要是歐元和英鎊）帶來的外匯逆風的影響。這些不利因素導致了報告業績和貨幣中性業績之間的差異，儘管比前幾個季度要溫和一些。假設利率相對穩定於我們目前的水平，我們預計外幣將在 2023 年下半年轉向小幅順風。

Total revenue was down 3.3% year-on-year on a reported basis and 2% on a currency-neutral basis. While we have commented on some of our revenue headwinds this quarter, I'd be remiss to not also highlight continued positive momentum across our subscription business, our new customer acquisition growth, the tenth consecutive quarter of growth in our corporate sector and healthy performance across our KPIs.

按報告數據計算，總收入同比下降 3.3%；按貨幣中性因素計算，總收入同比下降 2%。雖然我們對本季度的一些收入不利因素發表了評論，但我不能強調我們的訂閱業務持續的積極勢頭、我們的新客戶獲取增長、我們企業部門連續第十個季度的增長以​​及整個行業的健康表現。我們的關鍵績效指標。

Our annual subscription revenue as a percentage of total revenue rose to 51.8% in Q2, up from 48.2% in Q2 of 2022. This equates to year-on-year growth of 4% on a reported basis and 5.5% on a currency-neutral basis, driven by further gains across our Premium Access and e-commerce offering.

我們的年度訂閱收入佔總收入的百分比從 2022 年第二季度的 48.2% 上升至第二季度的 51.8%。這相當於按報告計算同比增長 4%，按匯率中性計算同比增長 5.5%基礎上，受到我們的高級訪問和電子商務產品的進一步收益的推動。

Creative revenue was $141.3 million, down 3.7% year-on-year and 2.3% on a currency-neutral basis. Our agency business, which sits entirely within Creative, was down double digits this quarter due to macro conditions and a softer ad market, and is the primary driver of the declines in creatives.

創意收入為 1.413 億美元，同比下降 3.7%，在貨幣中性基礎上下降 2.3%。我們的代理業務完全屬於創意業務，由於宏觀環境和廣告市場疲軟，本季度出現了兩位數的下降，並且是創意業務下降的主要驅動力。

Annual subscription products within Creative grew 6.5% year-on-year and 8% on a currency-neutral basis. Within our e-commerce business, we had strong gains in our annual iStock subscription offerings, which grew by 16.9% on a reported basis and 15.7% currency neutral. The gains were driven by the success of our customer acquisition efforts across core and growth markets, coupled with some contributions from upsizing our existing monthly or a la carte customers into annual offerings.

Creative 的年度訂閱產品同比增長 6.5%，在貨幣中性的基礎上增長 8%。在我們的電子商務業務中，我們的年度 iStock 訂閱產品取得了強勁增長，按報告計算增長了 16.9%，貨幣中性增長了 15.7%。這些收益得益於我們在核心市場和增長市場的客戶獲取工作的成功，以及將我們現有的每月或點菜客戶擴大到年度服務的貢獻。

Custom content, which leverages Getty Images' global network of contributors to create cost-effective, customized and exclusive content to meet specific customer needs, grew 8.4% year-on-year, or 10.8% currency neutral. Q2 Editorial revenue was $80.3 million, down 3.2% year-on-year and 2% on a currency-neutral basis, driven by results across our sports, news and archive verticals. The largest decline was in sports, where we have seen reduced activity in the crypto and NFT space as well as challenging year-on-year compares due to one-off events in 2022.

定制內容利用 Getty Images 的全球貢獻者網絡創建具有成本效益的定制獨家內容，以滿足特定客戶的需求，同比增長 8.4%，按貨幣中性計算增長 10.8%。第二季度編輯收入為 8030 萬美元，同比下降 3.2%，在貨幣中性的基礎上下降 2%，這主要受到體育、新聞和檔案垂直領域業績的推動。下降幅度最大的是體育領域，我們看到加密貨幣和 NFT 領域的活動減少，並且由於 2022 年的一次性事件，同比比較也面臨挑戰。

Breaking down our performance across our major geographies, we posted year-on-year currency neutral growth of 4.5% in APAC and 0.3% in EMEA, while the Americas were down 4.5%.

細分主要地區的業績來看，我們公佈的亞太地區同比貨幣中性增長為 4.5%，歐洲、中東和非洲地區同比增長 0.3%，而美洲則下降 4.5%。

Revenue less our cost of revenue as a percentage of revenue remained consistent and strong at 71.9% in Q2 compared with 72.1% in Q2 of 2022, with a slight decrease driven primarily by variations in product mix.

第二季度收入減去收入成本佔收入的百分比保持穩定且強勁，為 71.9%，而 2022 年第二季度為 72.1%，略有下降主要是由於產品組合的變化。

Total SG&A expense of $107.7 million was up $12.2 million this quarter with our expense rate increasing to 47.7% of our revenue, up from 40.9% last year. The higher year-on-year expense was primarily due to higher legal expenses tied to our previously disclosed and our ongoing litigation largely expected to be concentrated in the first half of the year and also due to higher staff costs, which this year included $11.9 million of stock-based compensation related to the vesting of employee restricted stock units and earn-out shares compared to $1.4 million of equity-based comp in Q2 of 2022 prior to our return to the public markets.

本季度 SG&A 費用總額為 1.077 億美元，增加了 1,220 萬美元，費用率佔收入的比例從去年的 40.9% 增至 47.7%。同比費用增加主要是由於我們之前披露的法律費用增加以及我們正在進行的訴訟預計將主要集中在今年上半年，此外還由於員工成本增加（今年包括 1190 萬美元）與員工限制性股票單位和盈利股票的歸屬相關的股票薪酬相比，2022 年第二季度我們重返公開市場之前的股權薪酬為140 萬美元。

Excluding stock-based compensation, SG&A was 42.5% of revenue compared to 40.3% in the prior year. Further excluding the litigation expense, which totaled $7 million in the quarter or 310 basis points of revenue, SG&A would have declined in both dollars and as a percentage of revenue from the prior year. That is a result of proactive cost management measures executed towards the start of Q2.

不包括股票薪酬，SG&A 佔收入的 42.5%，而上一年為 40.3%。進一步排除本季度總計 700 萬美元或收入 310 個基點的訴訟費用，SG&A 的美元金額和占收入的百分比均較上一年有所下降。這是第二季度初採取的積極成本管理措施的結果。

Earlier in the quarter, we proactively executed a plan to slow down our rate of spend to better position ourselves as we, similar to other global companies navigate a more challenging macroeconomic backdrop. This plan included a hiring reduction and optimization of our marketing deployment, with total marketing spend down $4.2 million and dropping as a percentage of revenue to 4.7% from 6.4% in Q2 of 2022. We anticipate maintaining these plans through to the end of the year.

本季度早些時候，我們主動執行了一項計劃，放慢支出速度，以便在我們與其他全球公司一樣應對更具挑戰性的宏觀經濟背景時更好地定位自己。該計劃包括減少招聘和優化營銷部署，營銷總支出減少 420 萬美元，佔收入的百分比從 2022 年第二季度的 6.4% 降至 4.7%。我們預計這些計劃將維持到年底。

Adjusted EBITDA was $66.5 million, down 10.3% year-over-year. On a currency-neutral basis, adjusted EBITDA was down 8.9%. Our adjusted EBITDA margin was 29.5% compared to 31.7% in Q2 of 2022 with the lower rate driven by the impact of elevated legal costs within SG&A expense. Excluding the litigation costs, we would have delivered 80 basis points of margin expansion.

調整後 EBITDA 為 6650 萬美元，同比下降 10.3%。在貨幣中性的基礎上，調整後 EBITDA 下降 8.9%。我們調整後的 EBITDA 利潤率為 29.5%，而 2022 年第二季度為 31.7%，由於 SG&A 費用中法律成本上升的影響，利率較低。如果不包括訴訟費用，我們的利潤率將擴大 80 個基點。

CapEx was $13.9 million, down from $14.1 million in the prior year period. CapEx as a percentage of revenue was 6.2% versus 6.1% in the prior year. Adjusted EBITDA less CapEx was $52.5 million compared to $59.9 million in Q2 of last year. Adjusted EBITDA less CapEx margin was 23.3% in Q2, down from 25.7% in Q2 of 2022.

資本支出為 1,390 萬美元，低於去年同期的 1,410 萬美元。資本支出佔收入的百分比為 6.2%，而上一年為 6.1%。調整後 EBITDA 減去資本支出為 5,250 萬美元，而去年第二季度為 5,990 萬美元。第二季度調整後 EBITDA 減去資本支出利潤率為 23.3%，低於 2022 年第二季度的 25.7%。

Free cash flow was $27.9 million, up from $16.8 million in Q2 of 2022. The increase in free cash flow primarily reflects working capital changes related to the timing of receivables. Free cash flow is stated net of cash interest expense of $23.2 million in Q2, an increase of $2.9 million over the prior year.

自由現金流為 2790 萬美元，高於 2022 年第二季度的 1680 萬美元。自由現金流的增加主要反映了與應收賬款時間相關的營運資本變化。第二季度自由現金流扣除現金利息支出為 2,320 萬美元，比上年增加 290 萬美元。

Cash taxes for the quarter came in at $11.8 million, a decrease from $14.7 million in Q2 of 2022. Our ending cash balance on June 30 was $121.3 million, up $4.5 million from Q1 of 2023 and a decrease of $92.5 million from our ending cash balance in Q2 of 2022. That year-over-year change in our cash balance reflects total debt paydown of $330.4 million on our USD term loan, inclusive of a $22.6 million repayment in the second quarter of this year.

本季度現金稅為1,180 萬美元，較2022 年第二季度的1,470 萬美元有所減少。截至6 月30 日，我們的期末現金餘額為1.213 億美元，較2023 年第一季度增加450 萬美元，較期末現金餘額減少9,250 萬美元2022 年第二季度。我們現金餘額的同比變化反映了我們美元定期貸款的總債務償還額為 3.304 億美元，其中包括今年第二季度償還的 2260 萬美元。

We ended the quarter with a net leverage of 4.4x, unchanged from year-end 2022 and down from 4.8x as of June 30, 2022, representing nearly 0.5 turn of leverage reduction in a 1-year period.

截至本季度末，我們的淨槓桿率為 4.4 倍，與 2022 年年底持平，低於截至 2022 年 6 月 30 日的 4.8 倍，相當於一年內槓桿率降低了近 0.5 倍。

As of June 30, we had total debt outstanding of $1.418 billion, which included $300 million of 9.75% senior notes, $662.2 million USD term loan with an applicable interest rate of 9.84%, $456.1 million of euro term loan converted using exchange rates as of June 30, 2023, with an applicable interest rate of 8.625%.

截至6 月30 日，我們的未償債務總額為14.18 億美元，其中包括3 億美元的9.75% 優先票據、6.622 億美元適用利率為9.84% 的定期貸款、4.561 億美元按截至2019 年匯率換算的歐元定期貸款。 2023年6月30日，適用利率為8.625%。

In addition, on August 11, we used $20 million of our balance sheet cash to repay a portion of our USD term loan. Year-to-date, we have applied $45.2 million or over 100% of our free cash flow towards debt paydown, demonstrating our ongoing commitment to further deleverage the balance sheet.

此外，8 月 11 日，我們使用了 2000 萬美元的資產負債表現金來償還部分美元定期貸款。今年迄今為止，我們已將 4520 萬美元或超過 100% 的自由現金流用於償還債務，這表明我們對進一步去槓桿化資產負債表的持續承諾。

Based on the foreign exchange rates and applicable interest rates on our debt balance as of June 30 and taking into account the $355 million of interest rate swap agreements and last week's $20 million debt repayment, our 2023 cash interest expense is expected to be about $122 million.

根據截至 6 月 30 日的外匯匯率和債務餘額適用利率，並考慮到 3.55 億美元的利率互換協議和上週 2000 萬美元的債務償還，預計我們 2023 年的現金利息支出約為 1.22 億美元。

Now turning to our guidance for 2023. Based on our performance through the first half of this year, ongoing macroeconomic and agency sector pressures, expected impacts from the U.S. Hollywood strike and litigation costs, we are revising our guidance. We expect revenue of $920 million to $935 million, down 0.7% to up 0.9% year-on-year and on a currency-neutral basis, down 0.7% to up 1%.

現在轉向我們的 2023 年指引。根據我們今年上半年的表現、持續的宏觀經濟和代理行業壓力、美國好萊塢罷工和訴訟成本的預期影響，我們正在修改我們的指引。我們預計收入為 9.2 億美元至 9.35 億美元，同比下降 0.7% 至增長 0.9%，在貨幣中性的基礎上，下降 0.7% 至增長 1%。

Assuming current FX rates hold, embedded in this guidance is an expectation that FX will have an overall neutral impact on full year revenue. This includes the $10.7 million negative impact from the first half of 2023, turning to an estimated tailwind of approximately $10.5 million in the second half of 2023. This includes approximately $3 million of benefit in the third quarter.

假設當前匯率保持不變，本指引中包含的預期是外匯將對全年收入產生總體中性影響。這包括 2023 年上半年 1070 萬美元的負面影響，預計 2023 年下半年將帶來約 1050 萬美元的有利影響。這包括第三季度約 300 萬美元的收益。

We expect adjusted EBITDA of $292 million to $303 million, down 3.8% to 0.3% year-on-year on a reported basis and on a currency-neutral basis. Included in the adjusted EBITDA expectation is a relatively neutral impact from FX for the full year, including the $4.4 million impact in the first half, again, assuming a tailwind of approximately $4.5 million in the second half. This includes about $1 million benefit in the third quarter.

我們預計調整後 EBITDA 為 2.92 億美元至 3.03 億美元，按報告和貨幣中性計算，同比下降 3.8% 至 0.3%。調整後的 EBITDA 預期包括全年外匯帶來的相對中性的影響，包括上半年 440 萬美元的影響，同樣假設下半年的推動力約為 450 萬美元。這包括第三季度約 100 萬美元的收益。

Please note, built into this guidance are costs related to ongoing litigations and cost to operating as a public company. This includes the litigation cost, which for this year, we expect to largely be concentrated in the first half of 2023.

請注意，本指南中包含與正在進行的訴訟相關的成本以及作為上市公司運營的成本。這包括訴訟成本，我們預計今年的訴訟成本將主要集中在 2023 年上半年。

I'll turn it back over to Craig for some closing comments before we begin our Q&A.

在我們開始問答之前，我會將其轉回克雷格以獲取一些結束語。

Thanks, Jen. For over 28 years, Getty Images has thrived in a competitive and ever-changing landscape. Today, we remain the industry leader in this space with content and services our customers trust, rely on and value. We continue to innovate across our content, services and technology to provide our customers with incremental value and at the same time, reward our creative community and partners.

謝謝，珍。 28 年來，Getty Images 在競爭激烈且不斷變化的環境中蓬勃發展。如今，我們仍然是該領域的行業領導者，提供客戶信任、依賴和重視的內容和服務。我們不斷在內容、服務和技術方面進行創新，為客戶提供增量價值，同時回報我們的創意社區和合作夥伴。

We are laser focused on execution and believe we have the strategies and team in place to navigate through the current uncertainty, capture exciting growth opportunities and drive long-term shareholder value.

我們高度關注執行力，並相信我們擁有適當的戰略和團隊來應對當前的不確定性，抓住令人興奮的增長機會並推動長期股東價值。

With that, operator, please open the call for questions.

那麼，接線員，請打開提問電話。

(Operator Instructions) And our first question comes from the line of Ron Josey with Citibank.

（操作員說明）我們的第一個問題來自花旗銀行的 Ron Josey。

This is Jake on for Ron. So first, really, given the agency sector pressures with -- you commented revenues down double digits, could you talk to us more about the mix shift to corporate? Because you're clearly seeing traction in ramping subscriptions. Maybe you could remind us of the percent mix corporate and agency.

這是傑克為羅恩代言的。首先，考慮到代理行業面臨的壓力——您表示收入下降了兩位數，您能否與我們更多地談談向企業的混合轉型？因為您清楚地看到訂閱量增加的吸引力。也許你可以提醒我們公司和代理機構的百分比組合。

And then just second, on the writers' strike, could you talk to us what's your -- like how customers in the media space are responding? And then how you're factoring in that slowdown into your guidance given clearly, there's some uncertainty around how long it will last?

其次，關於作家罷工，您能告訴我們您的想法嗎？比如媒體領域的客戶有何反應？然後，您如何將這種放緩納入您明確給出的指導中，這種情況會持續多久存在一些不確定性？

Sure. Thanks, Jake. I'll start and then, Jen, feel free to chime in with anything. So as Jen noted, the corporate segment has been one that has been delivering growth for us 10 consecutive quarters in a row. That growth, we haven't disclosed, but is -- it obviously doesn't fully offset for the more recent agency declines, which we think are largely driven by macro pressures. But historically, it has more than offset for kind of, I'd say, the segment declines that have persisted in agency over recent time periods.

當然。謝謝，傑克。我先開始，然後，Jen，請隨意插話。正如 Jen 指出的那樣，企業部門已連續 10 個季度為我們帶來增長。我們尚未披露這種增長，但它顯然並不能完全抵消最近機構的下滑，我們認為這主要是由宏觀壓力推動的。但從歷史上看，我想說，它足以抵消近期代理機構持續存在的細分市場下降的影響。

So we would say that we've seen a more challenged corporate environment in the quarter. We've seen some deal time lines shift out. We've seen slightly reduced inbound, but it's a very durable segment. It's one that continues to grow. And it's one that continues to be in subscription, which gives us a lot of forward visibility on it.

因此，我們可以說，本季度我們看到了更具挑戰性的企業環境。我們已經看到一些交易時間表發生了變化。我們看到入境人數略有減少，但這是一個非常持久的細分市場。這是一個持續增長的群體。而且它還在繼續訂閱中，這讓我們對它有很多前瞻性的了解。

So in the short term, it's kind of net decline relative to the Creative shift into the corporate market and away from the agency market. Over the long haul it has been a net positive to the business, and we expect that to continue to be a net positive going forward.

因此，從短期來看，相對於創意公司向企業市場和遠離代理市場的轉變，這是一種淨下降。從長遠來看，這對業務產生了淨積極影響，我們預計這將繼續對業務產生淨積極影響。

With respect to the strikes in Hollywood, we are seeing that manifest itself as productions are basically put on hold. So those could be movies. Those could be television shows. Those could be other theatrical productions. Those could be award shows. Those could be red carpet events and such. So those have kind of had an impact over Q2. We expect that to persist and are largely planning for that to persist in terms of the guidance that we've given you through the full calendar year.

至於好萊塢的罷工，我們看到這表現為製作基本上被擱置。所以那些可能是電影。這些可能是電視節目。這些可能是其他戲劇作品。那些可能是頒獎典禮。這些可能是紅地毯活動等等。所以這些對第二季度產生了一定的影響。我們預計這種情況會持續下去，並在很大程度上計劃根據我們在整個日曆年為您提供的指導來持續這種情況。

So obviously, we're hopeful that the parties are able to come together and resolve that on a more immediate basis. But right now, the guidance is reflective of a continuation of that strike to the year-end. Jen, anything that you would add?

顯然，我們希望各方能夠齊心協力，盡快解決這個問題。但目前，該指引反映了罷工將持續到年底。珍，你還有什麼要補充的嗎？

No, I think that's right. I think we took a conservative view to guidance, as Craig noted, and we are assuming that strike goes through year-end. I mean we just saw in the past few days, big events like the MOUs have already been pushed out by several months. So that's the approach we've taken.

不，我認為這是對的。正如克雷格指出的那樣，我認為我們對指導採取了保守的觀點，並且我們假設罷工將持續到年底。我的意思是，我們在過去幾天剛剛看到，像諒解備忘錄這樣的重大活動已經被推遲了幾個月。這就是我們採取的方法。

I think, Jake, on your mix shift question, agency, corporate, you've probably heard us speak to agency being roughly 20% of our revenue in recent history. We're seeing that dip below 20%. So while we have exposure there, certainly, it is by far not the largest piece of our business.

我想，傑克，關於你的混合輪班問題，代理機構、公司，你可能聽過我們談到代理機構在最近的歷史中約占我們收入的 20%。我們發現這一比例已降至 20% 以下。因此，雖然我們在那裡有業務，但這當然不是我們最大的業務。

Our next question comes from the line of Mark Zgutowicz with The Benchmark Company.

我們的下一個問題來自 The Benchmark Company 的 Mark Zgutowicz。

Craig, a high-level question, and then Jen, just a follow-up on the subscription business. In terms of, Craig, you talked about execution as a priority, and I'm curious, it obviously starts with the bar that's set. I'm curious if your current guidance reflects sort of a worst-case scenario at the low end, which I think helps fulfill that execution priority.

克雷格（Craig）是一個高級問題，然後是珍（Jen），只是訂閱業務的後續問題。就克雷格而言，您談到執行是一個優先事項，我很好奇，這顯然是從設定的標准開始的。我很好奇您當前的指導是否反映了低端最壞的情況，我認為這有助於實現執行優先級。

And then, Jen, on the subscription business, I was just wondering if you could perhaps share what -- or quantify what the mix of subscription is within Creative and Editorial separately. And then you're obviously seeing some strong absolute subscription growth, but you're not seeing it on the revenue side and your ARPS is down 40%. So subscription grows 100%, ARPS is down 40%, to us means that Premium Access isn't quite scaling perhaps as fast as you'd like. So if you could maybe touch on what sort of may turn that around as well.

然後，Jen，關於訂閱業務，我只是想知道您是否可以分享什麼，或者分別量化創意和編輯中的訂閱組合。然後，您顯然會看到一些強勁的絕對訂閱增長，但您在收入方面卻看不到它，而且您的 ARPS 下降了 40%。因此訂閱量增長了 100%，ARPS 下降了 40%，對我們來說意味著高級訪問的擴展速度可能沒有您希望的那麼快。因此，如果您能談談什麼樣的情況也可以扭轉局面。

Thanks for the question, Mark. So I'll take the first and then I can let John respond to the ARPS and subscription question.

謝謝你的提問，馬克。所以我會選擇第一個，然後我可以讓 John 回答 ARPS 和訂閱問題。

So I would say that we've taken a conservative view to the second half with respect to guidance. We would certainly hope from an execution standpoint that we beat the bottom end of that. I think -- again, my view is there are opportunities out there. They take a little bit longer in this environment. They take us being a bit more proactive. We're going to have to backfill for some of the macro elements and -- that we talked about in the strike.

所以我想說，我們對下半年的指導採取了保守的看法。從執行的角度來看，我們當然希望我們能夠突破最低點。我認為——再說一次，我的觀點是那裡有機會。他們在這種環境下需要更長的時間。他們讓我們更加積極主動。我們將不得不回填一些宏觀因素——我們在罷工中談到了這一點。

But there's clear demand for our content. We're seeing, again, increased commitment in that tells us that customers are satisfied with our solution. We're seeing increased downloads. So our downloads in the quarter were up 1% year-over-year. So we're seeing signs that there are opportunities there. We just need to up our game and execute better over the second half in order to hopefully step over the bottom end of that guidance and beat.

但對我們的內容有明確的需求。我們再次看到更多的承諾，這表明客戶對我們的解決方案感到滿意。我們看到下載量有所增加。因此，我們本季度的下載量同比增長了 1%。因此，我們看到有跡象表明那裡存在機會。我們只需要提高我們的比賽水平並在下半場執行得更好，以便有希望跨過指導的底部並擊敗。

And then, Jen, do you want to just pick up on the subscription side of things and the ARPS and really the e-commerce elements to that?

然後，Jen，您想了解一下訂閱方面的內容和 ARPS 以及其中的電子商務元素嗎？

Yes. So in terms of the mix of Creative and Editorial, both are north of 50% in annual subscription. On the subscription side and you're probably looking more specifically at our active annual subscriber metric, so continued phenomenal growth in that metric. We're up to that 182,000 annual subscribers, over 104% growth from the LTM period.

是的。因此，就創意和編輯的組合而言，兩者的年度訂閱量均超過 50%。在訂閱方面，您可能更具體地關注我們的年度活躍訂閱者指標，因此該指標持續顯著增長。我們的年度訂戶數量已達 182,000 名，較 LTM 期間增長超過 104%。

You're correct in pointing out what we're seeing there, which actually will take and make this trade all day every day, we're actually seeing some impressive new customers coming on to subscriptions. We're seeing a lot of growth in some of the smaller e-commerce subscriptions. So that could be both new customers, that could be customers who are previously consuming a la carte or monthly on iStock that we're getting into those smaller annual subscription products.

您正確地指出了我們在那裡看到的情況，這實際上每天都會進行這種交易，我們實際上看到一些令人印象深刻的新客戶開始訂閱。我們看到一些較小的電子商務訂閱量出現了大幅增長。因此，這可能是新客戶，也可能是以前在 iStock 上點菜或按月消費的客戶，我們正在進入那些較小的年度訂閱產品。

Importantly, we're also starting to really make some traction in some of our growth markets, specifically LATAM, APAC, EMEA. We're driving actually new subscriptions in those markets. And you might remember, we've talked about geographic expansion being one of our key growth levers. So we're excited to see that we're tapping into those markets, and we're doing it with annual subscription. So we're really happy with this metric and the growth that we're seeing.

重要的是，我們也開始在一些增長市場中真正發揮作用，特別是拉丁美洲、亞太地區、歐洲、中東和非洲。我們正在這些市場上推動新的訂閱。您可能還記得，我們已經討論過地域擴張是我們的關鍵增長槓桿之一。因此，我們很高興看到我們正在進軍這些市場，並且我們通過年度訂閱來實現這一目標。因此，我們對這個指標以及我們所看到的增長感到非常滿意。

You mentioned PA. PA continues to be well over 1/3 of our revenue. We're not seeing any deterioration there. We continue to see growth in PA, which is our largest subscription, largely in our enterprise customers, larger customers. We still have growth there as well, and we have opportunity to continue to expand Premium Access as well.

你提到了PA。 PA 仍然遠遠超過我們收入的 1/3。我們沒有看到那裡有任何惡化。我們繼續看到 PA 的增長，這是我們最大的訂閱，主要是我們的企業客戶、大型客戶。我們在那裡仍然有增長，並且我們也有機會繼續擴大高級訪問。

Yes. And I would just add, Mark, that as you look at our average revenue per subscriber, historically, our larger customers have been kind of more converted into subscription. And so therefore, the opportunity to continue to add subscribers has been kind of in the smaller spending customer side of things. So small businesses, medium-sized businesses, emphasis on iStock and now increasingly through Unsplash.

是的。我想補充一點，馬克，當你看看我們每個訂閱者的平均收入時，從歷史上看，我們的大客戶更多地轉化為訂閱。因此，繼續增加訂戶的機會一直存在於較小支出的客戶方面。因此，小型企業、中型企業都重視 iStock，現在越來越多地通過 Unsplash。

So that's why we're seeing -- those are lower spend products, lower download products. And so that's where we're getting the positive shift in terms of commitment, but it does bring the average revenue per subscriber down, but that's not due to loss of subscribers on the Premium Access or on the larger side. It's more about the opportunity to get more commitment, higher spend per customer in aggregate through those subscriptions, as Jen highlighted.

這就是我們看到的原因——這些是支出較低的產品，下載量較低的產品。因此，這就是我們在承諾方面取得積極轉變的地方，但這確實降低了每個訂戶的平均收入，但這並不是由於高級訪問或更大範圍的訂戶流失所致。正如 Jen 所強調的那樣，更多的是通過這些訂閱獲得更多承諾、每位客戶更高支出的機會。

Our next question comes from the line of Cory Carpenter with JPMorgan.

我們的下一個問題來自摩根大通的科里·卡彭特 (Cory Carpenter)。

I had one for you, Craig, and one for Jen. Maybe Craig, just could you expand on the NVIDIA partnership that's in unlimited testing? Anything around the different ways you're thinking about commercializing the product and in different ways to monetize?

我給你準備了一份，克雷格，還有一份給珍。也許克雷格（Craig），您能擴展一下正在進行無限測試的 NVIDIA 合作夥伴關係嗎？您考慮以不同的方式將產品商業化並以不同的方式獲利？

And then, Jen, for you, just on the Hollywood strike impact again, any way to frame how big the entertainment vertical is for you? And is that impact felt mostly in Editorial? Or is it also Creative?

然後，Jen，對你來說，就在好萊塢罷工再次產生影響時，有什麼方法可以描述娛樂垂直領域對你來說有多大嗎？這種影響主要是在社論中感受到的嗎？或者說這也是創意？

Yes, Cory, I'm happy to pick up the first and hand to Jake -- Jen on the second. So with respect to NVIDIA, I've kind of mentioned, we're taking a very long-term view to AI. And this is a product that we are -- have been working on with NVIDIA for quite some time now. It is one that when we bring it to market, it's going to be commercially viable.

是的，科里，我很高興接第一個任務，然後把第二個任務交給傑克-珍。因此，對於 NVIDIA，我曾提到過，我們對人工智能抱有非常長遠的看法。我們與 NVIDIA 合作開發這個產品已經有一段時間了。當我們將其推向市場時，它將具有商業可行性。

So what do I mean by commercially viable? It's built to respect third-party intellectual property. It's built to respect third-party brands, names and likeness. So you won't run into any issues in terms of using the resulting outputs on a commercial basis. It's creator-responsible. In essence, we will be making sure there's payment back to the creators that gave us the content that it's trained on. It will be indemnified for our customers, which means our customers can use it knowing that Getty Images is actually bearing the risk of the content that's produced, and it will be incredibly high quality.

那麼商業上可行是什麼意思呢？它旨在尊重第三方知識產權。它旨在尊重第三方品牌、名稱和肖像。因此，您在商業基礎上使用結果輸出時不會遇到任何問題。它對創作者負責。從本質上講，我們將確保向為我們提供訓練內容的創作者提供報酬。它將為我們的客戶提供賠償，這意味著我們的客戶可以使用它，因為他們知道 Getty Images 實際上承擔了所生成內容的風險，並且內容將具有令人難以置信的高質量。

And getting to that solution takes a lot of time, work -- takes a lot of partnership with NVIDIA. In terms of the commercialization of that, I think I've mentioned at the outset, while I can't go into the specific terms of our agreement with NVIDIA, it's a partnership. And we will share in the resulting revenues that we generate. Getty Images will be the predominant go-to-market path through our sales force and through our websites, and we will share in that revenue. And that's -- it's not a data licensing deal. It's a long-term business and product offering that we bring to our customers that is additive to the product suite that we have and will generate revenue.

獲得該解決方案需要花費大量時間和精力，需要與 NVIDIA 進行大量合作。就其商業化而言，我想我在一開始就已經提到過，雖然我無法詳細說明我們與 NVIDIA 協議的具體條款，但這是一種合作夥伴關係。我們將分享我們產生的收入。 Getty Images 將成為我們銷售人員和網站進入市場的主要途徑，我們將分享該收入。那就是——這不是數據許可協議。這是我們為客戶提供的長期業務和產品，是我們現有產品套件的補充，並將產生收入。

Now it's not going to generate a ton of revenue out of the gate, but it's one that we think over the long haul, is incredibly well positioned to compete in the space and over the long haul will generate material revenues back into this business. And we think that's the right structure for the relationship and the right structure for the business overall over the long term as generative AI continues to be something that we think has significant opportunities over the long term.

現在它不會立即產生大量收入，但我們認為從長遠來看，它在該領域的競爭中處於非常有利的位置，並且從長遠來看將為該業務帶來物質收入。我們認為，從長遠來看，這是正確的關係結構，也是正確的整體業務結構，因為我們認為從長遠來看，生成式人工智能仍然具有重大機遇。

And then, Jen, if you want to pick up on the entertainment side of things and the impacts there.

然後，Jen，如果你想了解娛樂方面的事情及其影響。

Yes. So for entertainment, as you know, Cory, Editorial is about 1/3 of our revenue. And then within the Editorial space, we've obviously got news, sport, entertainment and archived. And because of the mix of our revenue that sits in subscription, we can see downloads sort of usage between sports news and entertainment for customers on subscription. So hard to quantify a specific piece of the revenue at any given point that we can attribute to entertainment, but suffice it to say that entertainment typically is in equal parts, sports, entertainment and news when we think about that 1/3 of revenue.

是的。因此，就娛樂而言，正如您所知，Cory，社論約占我們收入的 1/3。然後在編輯空間中，我們顯然有新聞、體育、娛樂和存檔。由於我們的收入來自訂閱，我們可以看到訂閱客戶的體育新聞和娛樂下載使用情況。很難量化任何給定點的收入中我們可以歸因於娛樂的具體部分，但只要我們考慮收入的 1/3 時，娛樂通常是平等的，體育、娛樂和新聞就足夠了。

But again, you have to temper that with over 50% of our revenue sitting into locked-in subscriptions, right, which means if entertainment downloads shift down, you might see that same amount of revenue just shifting into different content. That said, as we talked about, we have conservatively assumed that, that strike goes all the way through to the end of the year, that impacts not just that entertainment piece of our business, but also our media clients, right? So as we see film, production, broadcast start to slow down, that has an impact on media clients, which doesn't necessarily fit in totality in that entertainment space.

但同樣，你必須調整這一點，因為我們超過 50% 的收入都來自鎖定訂閱，這意味著如果娛樂下載量下降，你可能會看到相同數量的收入只是轉移到不同的內容上。也就是說，正如我們所討論的，我們保守地假設，這次罷工會一直持續到今年年底，這不僅會影響我們業務的娛樂部分，還會影響我們的媒體客戶，對嗎？因此，當我們看到電影、製作、廣播開始放緩時，這會對媒體客戶產生影響，而這並不一定適合整個娛樂領域。

Yes. And I would just add, Cory, that as you -- if you look at the numbers, it impacts both Editorial and Creative. So an example would be the evening talk shows, so the late-night talk shows, they will consume a lot of the Creative Content as they're telling jokes and setting things up. And so that's an example where you can see how Creative Content will actually flow through what is largely a media segment impact -- media and production segment impact, but it does impact Creative Content in addition to Editorial Content.

是的。我想補充一點，科里，如果你看一下數字，它會影響編輯和創意。一個例子是晚間脫口秀，所以深夜脫口秀，他們會在講笑話和安排事情時消耗大量的創意內容。因此，在這個示例中，您可以看到創意內容實際上如何通過主要是媒體細分影響（媒體和製作細分影響）流動，但除了編輯內容之外，它確實會影響創意內容。

I would say that to date and on a go-forward basis, we expect it to be more concentrated within Editorial than Creative, but it does impact both parts of the business.

我想說的是，到目前為止，從長遠來看，我們預計它會更多地集中在編輯領域而不是創意領域，但它確實影響了這兩個業務部門。

Our next question comes from the line of Tim Nollen with Macquarie.

我們的下一個問題來自麥格理的蒂姆·諾倫 (Tim Nollen)。

I wonder if you could just give us a little bit more color on the delay in the 10-Q filing if that's possible to do. I know you said it's at this point. looking material, but if you could just give us any indication as to what it is related to.

如果可以的話，我想知道您是否可以就 10-Q 申報的延遲向我們提供更多信息。我知道你說的是現在。看起來很重要，但如果你能給我們任何關於它與什麼相關的指示。

And in addition, you mentioned that most of the litigation costs are first half already. So any updates that you could give us at least on the timing of that situation.

另外，您提到大部分訴訟費用已經是上半年了。因此，您至少可以向我們提供有關該情況發生時間的任何更新。

Jen, I'll refer to you on those.

Jen，我會向你推薦這些。

Yes. Tim, so on the delay of the filing, as you just heard us talk about in prepared remarks, also disclosed in our earnings release, the delay of the Q is due to our independent auditors requiring some additional time to do additional audit processes. That is all in response to a comment arising from a PCAOB inspection which was of the audit work papers of our 2022 financial statements. So importantly, as of today, we're not aware of nor have our independent auditors advised us of any material misstatement for the 2022 financial statement.

是的。蒂姆，關於提交的延遲，正如您剛剛聽到我們在準備好的發言中談到的那樣，Q 的延遲是由於我們的獨立審計師需要一些額外的時間來進行額外的審計流程。這都是對 PCAOB 檢查中提出的評論的回應，該檢查針對的是我們 2022 年財務報表的審計工作底稿。重要的是，截至今天，我們不知道也沒有向我們的獨立審計師告知 2022 年財務報表存在任何重大錯報。

So what I can add to that is that our teams are working closely with our independent auditors to provide any and all assistance and information that's going to help them complete their work as judiciously as possible.

因此，我可以補充的是，我們的團隊正在與我們的獨立審計師密切合作，提供所有幫助和信息，幫助他們盡可能明智地完成工作。

And then on the litigation, that was your second question. So yes, litigation costs, largely concentrated to the first half, specifically in the second quarter. That comment that we're making with respect to those costs being largely concentrated in the first half is not an indication of where we are in that litigation process, but has more to do with the fact that we've got D&O insurance that will start to kick in and absorb any balance of ongoing litigation costs there. So that's not a commentary on where we sit with that litigation. It's more about insurance kicking in and starting to cover those costs.

關於訴訟，這是你的第二個問題。所以，是的，訴訟成本主要集中在上半年，特別是第二季度。我們對這些成本主要集中在上半年的評論並不表明我們在訴訟過程中處於什麼階段，而是更多地與我們即將開始的 D&O 保險有關。啟動並吸收正在進行的訴訟費用的任何餘額。因此，這並不是對我們對該訴訟的立場的評論。更重要的是保險的介入並開始支付這些費用。

And I would just that it's highly concentrated to the warrant litigation. And that did move faster than we thought. We -- actually, we think it's a good thing that we'll be able to hopefully put this to bed soon, but it's one where the case has been moving faster than we would have predicted, and that's a tough thing to actually predict is the pacing of cases through the docket. So much more related to the warrant side of things.

我只想說它高度集中於搜查令訴訟。這確實比我們想像的要快。事實上，我們認為這是一件好事，我們希望能夠盡快解決這個問題，但案件的進展速度比我們預期的要快，而這是一件很難預測的事情案件審理進度。與事情的授權方面有更多的關係。

And our next question comes from the line of Brett Feldman with Goldman Sachs.

我們的下一個問題來自高盛的布雷特·費爾德曼 (Brett Feldman)。

Two, if you don't mind. Craig, I would hope you -- or just would appreciate if you could elaborate a little more on the execution opportunities that you see. So if we were to get questions from clients around examples, I guess what I'm thinking is to what extent does this relate to just maybe better blocking and tackling around opportunities and processes and initiatives that are already in flight versus maybe a little more focused on getting something off the drawing board and into the market so you can benefit from them.

兩個，如果你不介意的話。克雷格，我希望您能詳細說明您所看到的執行機會，或者只是希望您能詳細說明一下。因此，如果我們要從客戶那裡得到關於示例的問題，我想我在想的是，這在多大程度上與更好地阻止和解決已經在進行的機會、流程和舉措有關，而不是更加集中一點將某些東西從繪圖板上推向市場，以便您可以從中受益。

And then the second question is we obviously have heard from the agencies throughout this earnings cycle about the slowdown in tech spending. Is that specifically what's flowing through to your agency business you're just feeling that downstream? Or is there any other exposure or unique pressures you might be feeling that we're not thinking enough about?

第二個問題是，在整個盈利週期中，我們顯然從各機構那裡聽到了有關科技支出放緩的消息。這就是您感覺下游的代理業務的具體情況嗎？或者您可能感覺到我們沒有考慮到任何其他暴露或獨特的壓力？

Great. Thanks, Brett. On the execution -- I mean first, I would say there are things that we're executing quite well again. So I think Jen mentioned our subscriptions, we're seeing, again, an increased consumption, the launch of natural language processing, the progress we're making on AI, the rest of world execution in terms of penetration there, custom content, cost management as well as our marketing efficiency and continuing to drive new customers, continue to drive more customers in the subscriptions and doing that at lower spend levels. So there's a lot of things that the business is doing well.

偉大的。謝謝，布雷特。關於執行——我的意思是，首先，我想說，我們再次執行得很好。所以我認為 Jen 提到了我們的訂閱，我們再次看到消費的增加、自然語言處理的推出、我們在人工智能方面取得的進展、世界其他地區在滲透率、定制內容、成本方面的執行情況管理以及我​​們的營銷效率，並繼續吸引新客戶，繼續吸引更多客戶訂閱，並以較低的支出水平做到這一點。因此，該公司在很多方面都做得很好。

I think my view is it's really concentrated to the sales front where we need to step up our outbound activities. We need to move agreements along to close on a more expeditious manner, and we need to tighten up around that. And so that's one of the things that we're really focused in on. It's not dependent upon new products or new services.

我認為我的觀點是，它確實集中在銷售方面，我們需要加強我們的對外活動。我們需要推動協議以更迅速的方式完成，並且我們需要圍繞這一點加強力度。所以這是我們真正關注的事情之一。它不依賴於新產品或新服務。

We're largely not expecting the AI generative offering to contribute over the second half of the year. Again, we think that's a more long-term revenue item. It's about hand-to-hand combat on the sales side of things. And in a more difficult environment, you need to work 20% harder to get to the same outcome. And that's what we're doing and we're starting to see some of those outcomes.

我們基本上預計人工智能生成產品不會在今年下半年做出貢獻。同樣，我們認為這是一個更長期的收入項目。這是關於銷售方面的肉搏戰。而在更困難的環境中，你需要付出 20% 的努力才能獲得相同的結果。這就是我們正在做的事情，我們已經開始看到其中的一些成果。

I think we talked about some segments where we've got challenge. And in some cases, you have to go through and evaluate what you're getting from those customers relative to maybe some discount agreements that you've had in place and be very candid in the conversations with customers that maybe those discounts aren't warranted at the current spend levels and how do you adjust that and work towards getting back to something that is more reflective of performance.

我想我們討論了一些我們面臨挑戰的領域。在某些情況下，您必須仔細檢查並評估您從這些客戶那裡獲得的東西（相對於您已經制定的一些折扣協議），並在與客戶的對話中非常坦誠地表明這些折扣可能是不合理的在當前的支出水平下，您如何調整併努力恢復到更能反映績效的水平。

So we need to basically continue to execute on the sales front. And I think it's one where we don't control the external environment. We can't really solve for a writers' strike or an actors' strike, but we can go in and up our game.

所以我們基本上需要繼續在銷售方面執行。我認為這是我們無法控制外部環境的原因之一。我們無法真正解決編劇罷工或演員罷工的問題，但我們可以參與併升級我們的遊戲。

On the agency front, I don't think it's just in technology spend. So I think what we've seen with a lot of the agencies is that they've been doing okay top line revenue, but they're seeing a lot more growth from the media side of the business, although they've been seeing pullback on the tech media side of things. But they're seeing growth in PR and data and consulting and events and ad tech. And they're not really seeing growth in the Creative side of their businesses, which is where our product really plays in. And that's why I think we're seeing volume really come off in that segment relative to what they're experiencing in the marketplace. So hopefully, that gives you the color on the agency side of things.

在機構方面，我認為這不僅僅是技術支出。因此，我認為我們在很多機構中看到的是，他們的營收一直不錯，但他們看到媒體業務方面的增長更多，儘管他們已經看到了下滑在科技媒體方面。但他們看到了公關、數據、諮詢、活動和廣告技術的增長。他們並沒有真正看到其業務的創意方面的增長，而這正是我們的產品真正發揮作用的地方。這就是為什麼我認為我們看到該領域的銷量相對於他們在市場。希望這能讓您了解代理機構方面的情況。

And this does conclude the -- ladies and gentlemen, we have reached the end of the question-and-answer session, and this also concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

女士們，先生們，我們的問答環節已經結束，今天的會議也結束了，你們現在可以掛斷電話了。感謝您的參與。

Thanks, everybody.

謝謝大家。