Information Services Group Inc (III) 2024 Q1 法說會逐字稿

Ladies and gentlemen, good morning, and welcome everyone to the Information Services Group, first quarter 2024 conference call. This call is being recorded, and a replay will be available on ISG's website within 24 hours.

女士們、先生們，早安，歡迎大家參加資訊服務集團 2024 年第一季電話會議。本次通話正在錄音，24 小時內將在 ISG 網站上提供重播。

Now I would like to turn the call over to Mr. Barry Holt for his opening remarks and introductions.

現在我想請巴里·霍爾特先生做開場白和介紹。

Mr. Holt, please go ahead.

霍爾特先生，請繼續。

Thank you, operator. Hello and good morning.

謝謝你，接線生。你好，早安。

My name is Barry Holt. I'm a Senior Communications Executive at ISG. I'd like to welcome everyone to ISG's first quarter conference call. I'm joined today by Michael Connors, Chairman and Chief Executive Officer, and Michael Sherrick, Executive Vice President and Chief Financial Officer.

我叫巴里‧霍爾特。我是 ISG 的高級傳播主管。我歡迎大家參加 ISG 第一季電話會議。今天與我一起出席會議的還有董事長兼執行長 Michael Connors 和執行副總裁兼財務長 Michael Sherrick。

Before we begin, I'd like to read a forward-looking statement. It is important to note that this communication may contain forward-looking statements, which represent the current expectations and beliefs of the management of ISG concerning future events and their potential effects. These statements are not guarantees of future results and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated.

在我們開始之前，我想閱讀一份前瞻性聲明。值得注意的是，本通訊可能包含前瞻性陳述，這些陳述代表了 ISG 管理階層目前對未來事件及其潛在影響的期望和信念。這些陳述並不是對未來結果的保證，並且存在某些風險和不確定性，可能導致實際結果與預期結果有重大差異。

For a more detailed listing of the risks and other factors that could affect future results, please refer to the forward-looking statement contained in our Form 8-K, that was furnished last night to the SEC and the Risk Factors section in ISG's Form 10-K covering full year results.

有關可能影響未來結果的風險和其他因素的更詳細列表，請參閱昨晚向 SEC 提供的表格 8-K 中包含的前瞻性聲明以及 ISG 表格 10 中的風險因素部分-K 涵蓋全年業績。

You should also read ISG's annual report on Form 10-K and any other relevant documents, including any amendments or supplements to these documents filed with the SEC. You will be able to obtain free copies of any of ISG's, SEC filings undo on either ISG's website at www.isg-one.com or the SEC's website at www.sec.gov. I see undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

您還應該閱讀 ISG 的 10-K 表格年度報告以及任何其他相關文件，包括向 SEC 提交的這些文件的任何修訂或補充。您將能夠在 ISG 網站 www.isg-one.com 或 SEC 網站 www.sec.gov 上取得任何 ISG、SEC 備案撤銷的免費副本。我認為沒有義務更新或修改任何前瞻性陳述以反映後續事件或情況。

During this call, we will discuss non-GAAP financial measures, which I she believes improves the comparability of the company's financial results between periods and provides for greater transparency of key measures used to evaluate the company's performance.

在這次電話會議中，我們將討論非公認會計準則財務指標，我認為這提高了公司不同時期財務表現的可比性，並提高了用於評估公司績效的關鍵指標的透明度。

The non-GAAP measures, which we will touch on today include adjusted EBITDA, adjusted net earnings and the presentation of selected financial data on a constant currency basis. Non-gaap measures are provided as additional information and should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

我們今天將討論的非公認會計準則指標包括調整後的 EBITDA、調整後的淨利潤以及以固定貨幣為基礎的選定財務數據的列報。非公認會計原則措施作為附加資訊提供，不應單獨考慮或作為根據公認會計原則編制的財務結果的替代品。

For the reconciliation of all non-GAAP measures presented to the most closely applicable GAAP measure. Please refer to our current report on 8-K, which was filed last night with the SEC.

用於將所有非 GAAP 衡量標準與最接近適用的 GAAP 衡量標準進行協調。請參閱我們昨晚向 SEC 提交的有關 8-K 的最新報告。

And now I'd like to turn the call over to Michael Connors, who will be followed by Michael Sherrick.

現在我想將電話轉給邁克爾康納斯 (Michael Connors)，隨後由邁克爾謝里克 (Michael Sherrick) 接聽。

Mike?

麥克風？

Thank you, Barry, and good morning, everyone.

謝謝你，巴里，大家早安。

Today, we will review our results for the first quarter, including an early progress report on ISG Tango, our view of what we see as an improving demand environment and our outlook for Q2. As expected, the broader market for technology services remains soft in Q1. Generally, clients are taking longer to commit to new investments as they weigh economic conditions and work through how to deploy AI for their businesses.

今天，我們將回顧第一季的業績，包括 ISG Tango 的早期進展報告、我們對需求環境改善的看法以及我們對第二季的展望。正如預期的那樣，第一季技術服務整體市場仍然疲軟。一般來說，客戶需要更長的時間來進行新的投資，因為他們權衡經濟狀況並研究如何為其業務部署人工智慧。

As an example, we have two major transactions that were expected to close and begin delivering during the first quarter that were delayed. Overall, spending continues on larger scale transformations and cost optimization programs, and we are involved with many of these, but at a slower pace of implementation with contracts spread out over longer durations. Our pipeline is solid globally, but during this particular quarter, much more difficult to convert.

舉例來說，我們有兩筆預計在第一季完成並開始交付的主要交易被推遲了。總體而言，支出繼續用於更大規模的轉型和成本優化計劃，我們參與了其中許多計劃，但實施速度較慢，合約期限較長。我們的產品線在全球範圍內都很穩固，但在這個特定的季度，轉換起來要困難得多。

Now, the good news for the market and ISG, based on our market analysis, client discussions in our pipeline development. The market seems to have bottomed out in the first quarter and the worst appears to be behind us. We are seeing spending coming back slowly and expect further acceleration over the course of the year, macro conditions permitting, market interest in exploring cost efficiencies through managed services remains at high levels. Additionally, we are now seeing a rise in sourcing activity. And this suggests clients are beginning to balance the desire for cost savings with the need to remain competitive and tech forward.

現在，根據我們的市場分析和客戶對我們管道開發的討論，這對市場和 ISG 來說是個好消息。市場似乎已在第一季觸底，最糟糕的時期似乎已經過去。我們看到支出緩慢回升，並預計在宏觀條件允許的情況下，今年支出將進一步加速，市場對透過託管服務探索成本效率的興趣仍處於較高水平。此外，我們現在看到採購活動增加。這表明客戶開始在節省成本的願望與保持競爭力和技術進步的需要之間取得平衡。

Now, a few comment on AI. AI is a net positive for ISG, clients are looking to ISG as a trusted independent third party advisor to guide them and understanding the impacts of AI, planning their AI strategy of establishing guardrails, identifying use cases and building their AI ecosystem. Enterprises have ambitious AI plans, but are understandably cautious given the implications of AI and the lessons learned from cloud migration.

現在，談談人工智慧的一些評論。人工智慧對ISG 來說是一個淨積極因素，客戶希望ISG 作為值得信賴的獨立第三方顧問來指導他們並了解人工智慧的影響，規劃其建立護欄的人工智慧策略，確定用例並建立其人工智慧生態系統。企業擁有雄心勃勃的人工智慧計劃，但考慮到人工智慧的影響以及從雲端遷移中學到的經驗教訓，企業的謹慎態度是可以理解的。

Our role is to help them with proof-of-concept deployments and then transition to full-scale implementation as the market ultimately moved from the planning phase to the execution phase of AI significant new investment will be made in infrastructure, sourcing and implementation and ISG will be there each step of the way to advise our clients.

我們的角色是幫助他們進行概念驗證部署，然後隨著市場最終從人工智慧的規劃階段轉向執行階段，將在基礎設施、採購和實施以及 ISG 方面進行大量新投資，然後過渡到全面實施我們將在每一步為我們的客戶提供建議。

With regard to our recurring revenue expansion even in a slower market. We continue to see growth in our recurring revenues, which represented about half of our firm-wide revenues in Q1. Over the trailing 12 months ending March 31, we have generated $126 million in recurring revenues, up 10% from the previous 12-month period.

關於我們的經常性收入擴張，即使在市場放緩的情況下。我們的經常性收入持續成長，約佔第一季全公司營收的一半。截至 3 月 31 日的過去 12 個月中，我們產生了 1.26 億美元的經常性收入，比前 12 個月增長了 10%。

Demand continues for our research, governance and platform offerings. Enterprises are leaning on ISG for Market Intelligence and in-depth research to plan their AI and digital futures and identify market opportunities that lie ahead. The acquisition of internal research late last year has been a positive addition, further elevating our value proposition with enterprise clients while also opening up new consulting relationships with software vendors and new research opportunities with service providers.

對我們的研究、治理和平台產品的需求持續成長。企業依靠 ISG 進行市場情報和深入研究來規劃其人工智慧和數位未來，並識別未來的市場機會。去年年底對內部研究的收購是一個積極的補充，進一步提升了我們對企業客戶的價值主張，同時也與軟體供應商建立了新的諮詢關係，並與服務提供者建立了新的研究機會。

Now, a progress report on ISG Tango. As a reminder, just two months ago, we launched ISG Tango, the first fully integrated digital platform to simplify and expedite the sourcing experience. ISG Tango is designed to increase speed to value for clients, improved the speed, efficiency and margins of our sourcing transaction business and expand our addressable market.

現在，ISG Tango 的進度報告。提醒一下，就在兩個月前，我們推出了 ISG Tango，這是第一個完全整合的數位平台，旨在簡化和加快採購體驗。ISG Tango 旨在加快為客戶創造價值的速度，提高我們採購交易業務的速度、效率和利潤，並擴大我們的目標市場。

The feedback thus far from enterprises and service and technology providers has been extremely positive. Going forward, virtually all of our new sourcing engagements will be run through ISG Tango, already more than $2.6 billion of contract value is running on the platform. So good early progress. The macro environment has not been a friend of the industry or ISG. this quarter.

迄今為止，企業、服務和技術提供者的回饋非常積極。展望未來，我們幾乎所有新的採購業務都將透過 ISG Tango 運行，該平台上運行的合約價值已超過 26 億美元。早期進展非常好。宏觀環境對產業或ISG 都不利。本季。

Yet, we are now seeing signs of clients willing to spend more primarily in the US and we will capitalize on this in the quarters ahead. ISG is ideally positioned to meet this demand. We have five key differentiators that set us apart. First, we have the industry's deepest technology benchmark and sourcing contract databases, it's a data [moat] that is difficult to replicate.

然而，我們現在看到有跡象表明客戶願意主要在美國增加支出，我們將在未來幾季利用這一點。ISG 非常適合滿足這項需求。我們有五個關鍵的差異化因素使我們與眾不同。首先，我們擁有業界最深入的技術基準和採購合約資料庫，這是一條難以複製的資料[護城河]。

Second, as a long-standing global leader in advising large transactions, we have raised the bar with ISG Tango, a disruptive platform that gives us the ability to bring our unmatched data, proprietary tools and IP to a broader market.

其次，作為大額交易諮詢領域的長期全球領導者，我們透過ISG Tango 提高了標準，這是一個顛覆性的平台，使我們能夠將無與倫比的數據、專有工具和智慧財產權推向更廣闊的市場。

Third, we are combining our deep sourcing expertise with our knowledge of AI to help organizations navigate the early challenges of AI and harness its full power at scale. For our successful research business is now enhanced by the addition of internal research and combined with our platform businesses will continue to power growth in our recurring revenue streams and that through our ISG next operating model and our IT flex delivery platform, we will continue to drive improvements in speed, efficiency and profitability.

第三，我們將深厚的採購專業知識與人工智慧知識相結合，幫助組織應對人工智慧的早期挑戰並大規模利用其全部力量。因為我們成功的研究業務現在透過增加內部研究而得到加強，並與我們的平台業務相結合，將繼續推動我們經常性收入流的成長，並且透過我們的ISG 下一個營運模式和IT 靈活交付平台，我們將繼續推動速度、效率和獲利能力的提高。

With that let me turn to our regions, all of which experienced declines in consulting revenues in Q1, in line with the rest of the industry. The Americas generated $41 million of revenue in the quarter, down 16% versus the prior year. During despite this, during Q1, we saw double digit growth in our banking industry vertical and in research, Key client engagements during the first quarter included Western Union US Steel and Stanley Black & Decker.

接下來讓我談談我們的地區，所有這些地區在第一季的諮詢收入都出現了下降，與行業其他地區的情況一致。美洲地區本季營收為 4,100 萬美元，比去年同期下降 16%。儘管如此，在第一季度，我們看到銀行業垂直領域和研究領域出現了兩位數的成長，第一季的主要客戶包括西聯美國鋼鐵公司和史丹利百得公司。

During the quarter, ISG won a new multi-million dollar engagement with a spin-off of a large industrial conglomerate. ISG will help the client develop a technology driven product strategy and operating model, selected ecosystem of providers and ensure long-term value realization.

本季度，ISG 與一家大型工業集團的分拆公司贏得了價值數百萬美元的新合約。ISG 將協助客戶制定技術驅動的產品策略和營運模式、選定的供應商生態系統並確保長期價值實現。

In another win, we expanded our long-term relationship with a major cruise line, signing a $2.5 million contract to support this client and modernizing its infrastructure services across its North American brands. The initiative will provide increased agility and scalability and enhance the overall customer experience. And we signed a new deal with a multinational banking and financial services firm, to help this client build a scalable long-term approach to manage its AI architecture and services and select it's AI partners.

在另一場勝利中，我們擴大了與一家大型郵輪公司的長期合作關係，簽署了一份價值 250 萬美元的合約來支持該客戶，並對其北美品牌的基礎設施服務進行現代化改造。該計劃將提高敏捷性和可擴展性，並增強整體客戶體驗。我們與一家跨國銀行和金融服務公司簽署了一項新協議，幫助該客戶建立可擴展的長期方法來管理其人工智慧架構和服務並選擇其人工智慧合作夥伴。

Now, turning to Europe, our Q1 revenues of $18 million were down 23% from last year. Still during the quarter, Europe delivered double digit revenue growth in our consumer and public sector industry verticals and in our network and software businesses, Key client engagements in Europe in the first quarter included Allianz, BASF, EXCITE and Wintershall.

現在，轉向歐洲，我們第一季的營收為 1800 萬美元，比去年下降了 23%。儘管如此，在本季度，歐洲在我們的消費者和公共部門行業垂直領域以及我們的網路和軟體業務方面仍實現了兩位數的收入成長。 EXCITE 和Wintershall。

ISG continue to expand our work with a high-tech facilities company, under our latest agreement worth $2.5 million we are helping the client with a major IT, transformation program covering infrastructure, cloud, workplace security and applications. We are also working with this client to execute an AI and digital first strategy for the firm's engineering function. We also won a $2 million engaged with a public sector client in Switzerland. We are helping this client develop a new operating model aimed at improving costs and efficiency.

ISG 繼續擴大與一家高科技設施公司的合作，根據我們價值 250 萬美元的最新協議，我們正在幫助客戶實施一項涵蓋基礎設施、雲端、工作場所安全和應用程式的重大 IT 轉型計劃。我們也與該客戶合作，為該公司的工程職能執行人工智慧和數位優先策略。我們還贏得了與瑞士公共部門客戶合作的 200 萬美元。我們正在幫助該客戶開發一種旨在提高成本和效率的新營運模式。

Now turning to Asia Pacific, our Q1 revenues of $6 million were down about $1 million. Yet we saw double digit growth in our banking consumer and manufacturing industry verticals. Key clients in the quarter included the Australian Taxation Office, the Department of Home Affairs, Endeavour Group and Insurance Australia Group.

現在轉向亞太地區，我們第一季的營收為 600 萬美元，下降了約 100 萬美元。然而，我們的銀行業消費者和製造業垂直市場出現了兩位數的成長。本季度的主要客戶包括澳洲稅務局、內政部、奮進集團和澳洲保險集團。

During the quarter, we won a significant contract with a major public university in Australia to support their selection of a new ERP platform provider and systems integrator engagement will lead to the modernization of the university's human capital management and finance functions.

本季度，我們與澳洲一所主要公立大學簽訂了一份重要合同，支持他們選擇新的 ERP 平台提供商，而係統整合商的參與將實現大學人力資本管理和財務職能的現代化。

Now, let me turn to guidance. As I mentioned in the outset, we expect the market to accelerate over the course of this year, beginning first in the US, as macro conditions improve, the backlog of technology projects builds up and clients further develop their AI strategy. With this view in mind, we are expecting sequential growth for the second quarter, targeting revenues of between $65 million and $67 million and adjusted EBITDA between $7 million and $8 million. We remain confident in our strategy and with some market momentum we should be returning to our growth and margin expectations as we move through the year.

現在，讓我談談指引。正如我在開頭提到的，隨著宏觀條件的改善、技術項目積壓的增加以及客戶進一步製定人工智慧策略，我們預計今年市場將加速發展，首先從美國開始。考慮到這一觀點，我們預計第二季將實現環比成長，目標營收在 6,500 萬美元至 6,700 萬美元之間，調整後 EBITDA 在 700 萬美元至 800 萬美元之間。我們對我們的策略仍然充滿信心，隨著市場的發展勢頭，我們今年應該會恢復成長和利潤率預期。

So with that, let me turn the call over to Michael Sherrick, who will summarize our financial results.

因此，讓我將電話轉給邁克爾·謝里克（Michael Sherrick），他將總結我們的財務表現。

Michael.

麥可.

Thank you, Mike, and good morning, everyone.

謝謝你，麥克，大家早安。

Revenues for the first quarter were $64.3 million, down 18% compared with the first quarter last year. Currency had a modest $300,000 positive impact on reported revenue. I would note that we faced a particularly difficult comparison with last year, when we generated our highest quarterly revenue ever. In the Americas, reported revenues were $40.8 million, down 16% versus the prior year.

第一季營收為 6,430 萬美元，比去年第一季下降 18%。貨幣對報告收入產生了 30 萬美元的適度積極影響。我要指出的是，與去年相比，我們面臨著特別困難的情況，去年我們創造了有史以來最高的季度收入。在美洲，報告收入為 4,080 萬美元，比上年下降 16%。

In Europe, revenues were $17.8 million, down 23% and Asia Pacific, revenues were $5.6 million, down 20%. First quarter adjusted EBITDA was $4.4 million, down from $11 million in the year ago period, resulting in an EBITDA margin of 6.9% as compared with 14% in the year ago quarter.

在歐洲，收入為 1,780 萬美元，下降 23%；在亞太地區，收入為 560 萬美元，下降 20%。第一季調整後 EBITDA 為 440 萬美元，低於去年同期的 1,100 萬美元，導致 EBITDA 利潤率為 6.9%，而去年同期為 14%。

I see had a first quarter operating loss of $2.4 million compared with operating income of $7.1 million in the prior year. Excluding the impact of severance from the workforce actions taken in the first quarter, operating income would have been $0.5 million from our reported net loss for the quarter was $3.4 million or a loss of $0.07 per fully diluted share as compared with net income of $3.5 million or $0.07 per fully diluted share in the prior year.

我看到第一季的營業虧損為 240 萬美元，而前一年的營業收入為 710 萬美元。排除第一季採取的裁員行動的影響，營業收入將為 50 萬美元，因為我們報告的本季度淨虧損為 340 萬美元，或完全攤薄後每股虧損 0.07 美元，而淨利潤為 350 萬美元或上一年完全稀釋後每股0.07 美元。

First quarter adjusted net income was $0.7 million or $0.01 per share on a fully diluted basis compared with adjusted net income of $6 million or $0.12 per fully diluted share in the prior year's first quarter. Headcount as of March 31, 2024 was 1,561, down 67 physicians compared with the prior year, but up 43 professionals from Q4.

第一季調整後淨利為 70 萬美元，即完全稀釋後每股 0.01 美元，而去年第一季調整後淨利為 600 萬美元，即完全稀釋後每股 0.12 美元。截至 2024 年 3 月 31 日，員工總數為 1,561 人，與前一年相比減少了 67 名醫生，但較第四季度增加了 43 名專業人員。

I would note the sequential change was driven by the addition of Ventana Research, employees and resources. We assume from a client to support a new recurring revenue training as a service contract. Normalizing for these two factors. Our headcount was down 109 professionals compared with the prior year.

我要指出的是，連續的變化是由 Ventana Research、員工和資源的增加所推動的。我們假設客戶支援新的經常性收入培訓作為服務合約。對這兩個因素進行標準化。與前一年相比，我們的專業人員數量減少了 109 名。

For the quarter, consulting utilization was 70%, up 555 basis points sequentially. From the fourth quarter and down 40 basis points compared with the prior year. Based on the workforce actions taken to date and our expectation of improving demand as we move through the year, we expect utilization to improve from current levels, which will contribute to our expected margin expansion.

本季諮詢利用率為 70%，較上一季成長 555 個基點。第四季與上年同期相比下降40個基點。根據迄今為止採取的勞動力行動以及我們對今年需求改善的預期，我們預計利用率將從當前水平提高，這將有助於我們預期的利潤率擴張。

For the quarter, net cash provided by operations was $2.3 million, a strong $5.7 million swing from a $3.4 million usage a year ago. We ended the quarter with cash of $14 million, down from $22.6 million at the end of the fourth quarter.

本季度，營運提供的淨現金為 230 萬美元，較一年前的 340 萬美元大幅波動 570 萬美元。本季末，我們的現金為 1,400 萬美元，低於第四季末的 2,260 萬美元。

During the first quarter, we paid dividends of $2.4 million, repurchased 2.5 million of shares and paid down debt of $5 million. Our next quarterly dividend will be paid July fifth to shareholders of record June 14. We ended the first quarter with a debt balance of $74.2 million, down $5 million from Q4, and our average borrowing rate for the quarter was 7%, up from 6.3% last year. We ended the quarter with 49.7 million fully diluted shares outstanding.

第一季度，我們支付了 240 萬美元的股息，回購了 250 萬股股票，並償還了 500 萬美元的債務。我們的下一個季度股利將於 7 月 5 日支付給 6 月 14 日登記在冊的股東。第一季結束時，我們的債務餘額為 7,420 萬美元，比第四季減少了 500 萬美元，本季的平均借款利率為 7%，高於去年的 6.3%。本季結束時，我們有 4,970 萬股完全稀釋後的流通股。

Overall, our balance sheet continues to provide us with the flexibility to support our business over the long term. And importantly, we remain comfortable with our debt to EBITDA ratio.

總體而言，我們的資產負債表繼續為我們提供長期支持我們業務的靈活性。重要的是，我們對債務與 EBITDA 的比率保持滿意。

Mike will now share concluding remarks before we go to Q&A.

在我們進行問答之前，麥克現在將分享結論性意見。

Mike?

麥克風？

Thank you, Michael.

謝謝你，麥可。

To summarize, after a difficult first quarter, the market is showing signs of improving and we see growth ahead.

總而言之，在經歷了艱難的第一季之後，市場正在顯示出改善的跡象，我們看到未來的成長。

ISG is ideally positioned to capitalize on this market with the data products, services and talent to meet client needs and ensure our long-term success.

ISG 處於有利地位，可以利用數據產品、服務和人才來利用這個市場，以滿足客戶需求並確保我們的長期成功。

Our recurring revenue businesses continue to grow, both in size and share of overall revenues. Research, governance and platforms will remain important drivers of this growth, and we continue to invest for the long term with offerings like our ISG Tango, sourcing platform and our enterprise AI advisory services.

我們的經常性收入業務的規模和佔總收入的份額都在持續成長。研究、治理和平台仍將是這一成長的重要驅動力，我們將繼續對 ISG Tango、採購平台和企業人工智慧諮詢服務等產品進行長期投資。

Overall, we have a strong business plan and operating model in place to enhance our growth and profitability this year and in the years ahead. As always, we are focused on creating shareholder value for the long term, and we are steadfast in our mission to deliver operational excellence to our clients.

總體而言，我們制定了強有力的業務計劃和營運模式，以提高今年和未來幾年的成長和獲利能力。一如既往，我們專注於為股東創造長期價值，並堅定不移地履行為客戶提供卓越營運的使命。

So thank you very much for calling in this morning. And now let me turn the session over to the operator for your questions.

非常感謝您今天早上打電話來。現在讓我將會議轉交給接線員回答你們的問題。

(Operator Instructions)

（操作員說明）

Marc Riddick, Sidoti.

馬克·里迪克，西多蒂。

So I wanted to follow up on the demand commentary that you had there Mike, I was wondering if you could sort of give us sort of a general idea. I know you mentioned with the Americas, you called out banking area as far as some of the areas of strength that you saw in the first quarter. Maybe just sort of dumb, is that sort of leading the way as far as what you're seeing in the Americas going forward as far as from a client industry vertical perspective? And then I have a couple of follow-up.

因此，我想跟進您對需求的評論，邁克，我想知道您是否能給我們一個整體想法。我知道您提到了美洲，您提到了銀行業領域以及您在第一季看到的一些優勢領域。也許只是有點愚蠢，從客戶行業垂直角度來看，這是否是您在美洲看到的領先方式？然後我有一些後續行動。

Sure. Well, first of all, I think as we evolve through this year, Mark, we're seeing that industry verticals that I think are really I would call it picking up some steam well, the energy, healthcare, manufacturing and consumer of those four areas, I think over the next few quarters, I think will be out will be high, and that's what we're seeing in our pipeline area. Primarily in the US, I think I mentioned during the commentary that we expect the US to move at a faster clip than the rest of the world. And that's kind of how we are planning, if you will, the next few quarters.

當然。嗯，首先，我認為，隨著今年的發展，馬克，我們看到我認為真正的垂直行業正在復蘇，能源、醫療保健、製造和消費者這四個行業我認為在接下來的幾個季度裡，我認為將會很高，這就是我們在管道領域看到的情況。主要是在美國，我想我在評論中提到，我們預計美國的行動速度將比世界其​​他國家更快。如果你願意的話，這就是我們未來幾季的計畫。

Great. And then I was wondering if you could talk a little bit about some of the initial early feedback that you're getting from customers regarding Tango, it certainly seems encouraging sort of how it started. Maybe you could sort of talk a little bit about some of the, you know, the special sauce of Tango, if you will, that is really resonating with the with our early adopters?

偉大的。然後我想知道您是否可以談談您從客戶那裡得到的有關 Tango 的一些最初的早期反饋，它的開始方式看起來確實令人鼓舞。也許你可以談談探戈的一些特殊醬汁，如果你願意的話，這真的能引起我們早期採用者的共鳴嗎？

Yeah. So first of all, thanks for that.

是的。首先，謝謝你。

I mean, frankly, where we're really pleased with the quick adoption of the Tango platform, there's really two factors here. Number one, is it's a digital platform that connects the enterprise client with the tech providers and ISG. So all three of us, it allows it's kind of it's an AI supported kind of software platform that enables all three parties to kind of work together to go from the beginning to the end of the lifecycle of a sourcing transaction.

坦白說，我的意思是，我們對 Tango 平台的快速採用感到非常滿意，這實際上有兩個因素。第一，它是一個將企業客戶與技術供應商和 ISG 連接起來的數位平台。所以我們三個人，它允許它是一種人工智慧支援的軟體平台，使所有三方能夠一起工作，從採購交易的生命週期的開始到結束。

So think about a large enterprise company that's looking to improve their infrastructure or their applications. And we might invite three, four or five different providers to such a transaction. This platform allows all of them to operate work together. We have a virtual secure data room. It allows us to pull up all of the data and everybody can view provided permissions or granted all of this information.

因此，請考慮一家正在尋求改進其基礎設施或應用程式的大型企業公司。我們可能會邀請三個、四個或五個不同的提供者參與此類交易。這個平台允許他們所有人一起操作。我們有一個虛擬的安全資料室。它允許我們提取所有數據，每個人都可以查看提供的權限或授予所有這些資訊。

So the quick adoption here, we have about $2.6 billion, $2.7 billion now of contract value sitting on this platform just in the first six, seven, eight weeks that we have launched the platform. So I think the fully kind of integrated approach, it makes the speed to value for our clients. So something that may have taken longer because of the process part will be faster for the clients to get their achieved savings.

因此，這裡的快速採用，在我們推出該平台的前六、七、八週內，我們在該平台上的合約價值約為 26 億美元、27 億美元。因此，我認為完全整合的方法可以加快為我們的客戶創造價值的速度。因此，由於流程部分而可能需要更長時間的事情對於客戶來說會更快地實現節省。

So their speed to value is important, the enterprises who are pursuing these things that can cost them 1 billion or more for a pursuit, see it as an efficient and effective way to operate. And then we as ISG is a margin enhancer for us, because it does not take as much labor for us to accomplish all the tasks to get to the end zone.

所以價值實現的速度很重要，那些追求這些可能要花費10億甚至更多的東西的企業，將其視為一種高效且有效的營運方式。然後，作為 ISG，我們可以增強利潤，因為我們不需要花費太多的勞動力來完成到達終點區的所有任務。

We believe that while we have a margin expansion as a result of that. So it's a win-win-win, if you will, for all parties. And that's why we think the early adoption here is going well. So we'll, of course, monitor this. We expected the course over the first 18 months or so, but we expect by that time, we'll have nearly or virtually all of our transactions going through this platform.

我們相信，儘管我們的利潤率因此而擴大。因此，如果你願意的話，這對各方來說都是雙贏的。這就是為什麼我們認為這裡的早期採用進展順利。所以我們當然會對此進行監控。我們預計該過程將在前 18 個月左右完成，但我們預計到那時，我們幾乎或幾乎所有交易都將透過該平台進行。

Great. And then one last one for me. At least for now. I'm sort of wondering if Mike, how you're feeling about the potential for acquisitions are there any and kind of thoughts as to sort of are there things that you'd like to add at this point?

偉大的。然後是最後一張給我的。最起碼到現在。我有點想知道麥克，您對收購潛力有何看法，目前您是否有什麼想要補充的想法？

Certainly best year on new service offerings on the pipeline, but wonder if you could talk a little bit about maybe sort of what that what the acquisition pipeline looks to you at our valuations, availability of attractive targets and the like.

當然，這是管道中新服務產品的最佳一年，但想知道您是否可以談談收購管道對我們的估值、有吸引力的目標的可用性等的看法。

So again, that's kind of our approach is of a string of pearls approach that we've been using for a number of years. We are always in active discussions and we are as well. On areas that we can improve our kind of digital assets and or recurring revenue streams and use ours channels into the C-suite to drive more value whether that's the internal research or whether that's an enterprise change to put a wrapper around all the technology changes that are occurring in enterprises.

再說一次，我們的方法是我們多年來一直使用的珍珠串方法。我們總是在積極討論，我們也是。在我們可以改善我們的數位資產和/或經常性收入流的領域，並利用我們進入最高管理層的管道來推動更多價值，無論是內部研究還是企業變革，以包裝所有技術變革，都發生在企業中。

And I would say on the valuation front. I do think the valuation expectations are a little softer today. That's an advantage at the end of the day, most everything we work on our own operated. So it's a chance. And it's a it's a it's both a financial as well as a relationship type of acquisition. And so they do take time, but that's how I would describe the environment right now, Mark.

我想說的是估值方面。我確實認為今天的估值預期有點疲軟。歸根究底，這是一個優勢，我們大部分的工作都是自己操作的。所以這是一個機會。這既是一種財務類型的收購，也是一種關係類型的收購。所以它們確實需要時間，但這就是我描述現在環境的方式，馬克。

Thank you very much.

非常感謝。

Dave storms, Stonegate.

戴夫風暴，石門。

Just hoping, I could ask about the demand and the pipeline, kind of how you're thinking about that, how pent-up it is when that demand starts come back, do you anticipate that that's going to come back in a wave or more in a steady flow, maybe with clients remaining (Inaudible) a little hesitant as things, get on board.

只是希望，我可以詢問一下需求和管道，你是如何看待這個問題的，當需求開始回升時，它是如何被壓抑的，你是否預計這會一波或更多地回昇在穩定的流程中，也許客戶還是（聽不清楚）有點猶豫，就加入吧。

So Dave, the pipeline is really pretty strong. I think, I don't expect it to have a dam burst. I do think it will be a measured timing. What we are seeing is a the pipeline is strong and all things still around transformation and optimization with the emphasis on optimization. And we see that being informed by the number of sourcing transactions that are now coming through our pipe.

戴夫，管道真的非常強大。我想，我不希望它發生潰壩。我確實認為這將是一個謹慎的時機。我們看到的是，管道很強大，所有事情仍然圍繞著轉型和優化，重點是優化。我們看到，現在透過我們管道進行的採購交易數量已告知了這一點。

What I think will happen is it will be a measured approach. They're asking us to spend more time upfront. They're asking us to take more time for the execution, and it's kind of a little counterintuitive because you would think that if I can save money, you want it as fast as you can. On the other hand, it also costs money to save money.

我認為將會發生的是，這將是一種謹慎的方法。他們要求我們預先花更多時間。他們要求我們花更多的時間來執行，這有點違反直覺，因為你會認為如果我能省錢，你會希望盡快。另一方面，省錢也是要花錢的。

And so they are using a more paced and more measured approach. And so things are taking a little longer. But the good news is with our platform. If it's a sourcing transaction with Tango is it can move as fast as the client wanted to. But again, we will just have to follow the lead of the client. So we like our pipeline. We would love to have it burst out at a faster speed, but I think it will be measured. I do think the US is going to see it at a faster clip than the rest of the world.

因此，他們正在使用一種更有節奏、更謹慎的方法。所以事情需要更長的時間。但好消息是我們的平台。如果是與 Tango 進行採購交易，那麼它可以按照客戶想要的速度進行。但同樣，我們只需要遵循客戶的領導。所以我們喜歡我們的管道。我們希望它能以更快的速度爆發，但我認為它會被衡量。我確實認為美國將會比世界其他國家更快看到這一點。

Understood. Very helpful. And then just one more for me.

明白了。很有幫助。然後再給我一個。

You were able to bring in operating expenses both sequentially and year over year. How much more room? Is there to bring those in and what of that is reliable going forward?

您能夠連續且逐年計入營運費用。還有多少空間？是否可以引入這些內容？

Yes, Dave, it's Michael. So obviously, the big lever that remains is utilization. And as our utilization improves. As I noted, throughout the rest of this year, we'd expect to continue to see benefits to the gross margin right. We should be able to drive revenue without material change in the direct costs.

是的，戴夫，是麥可。顯然，剩下的重要槓桿就是利用率。隨著我們利用率的提高。正如我所指出的，在今年剩餘時間裡，我們預計毛利率將繼續提高。我們應該能夠在不大幅改變直接成本的情況下增加收入。

First, thanks for taking the questions.

首先，感謝您提出問題。

Joe Gomes, NOBLE Capital Markets.

喬·戈麥斯，NOBLE 資本市場。

So just wanted to take a step back here for a second and kind of see maybe you can give us a little bit of color here. You released fourth quarter or the first week of March, at that point, the guide was for a 65 to 67 in revenue and adjusted EBITDA of six to seven and just trying to figure out what happened in the last three weeks of the quarter, that adjusted EBITDA came in at 4.4. So just looking for a little more information there?

所以只是想退後一步，看看也許你可以在這裡給我們一點顏色。您發布了第四季度或 3 月的第一周，此時，指南的收入為 65 至 67，調整後的 EBITDA 為 6 至 7，只是想弄清楚該季度最後三週發生了什麼，即調整後EBITDA 為4.4。那麼只是想在那裡尋找更多資訊嗎？

Yes. Look, primarily it was around a couple of projects that we expected to start complete and recognized during the first quarter. And two of those projects did not only not get started completed and recognized one of them actually got pushed out until the month of June.

是的。看，主要是圍繞我們預計在第一季開始完成和認可的幾個項目。其中兩個項目不僅沒有開始完成，而且意識到其中一個項目實際上被推遲到了六月。

One of those is a gain share that we don't recognize until everything is done and sign. And so that did not make it into Q1, and so that was also a factor. So we always do the best we can with the most information that we have at the moment, we expected something to close and deliver and recognize that did not happen in Q1. That's the reason primarily, Joe.

其中之一是收益份額，直到一切完成並簽署後我們才會意識到這一點。所以這沒有進入第一季度，所以這也是一個因素。因此，我們總是利用目前掌握的最多資訊盡最大努力，我們預計會完成並交付一些東西，並認識到這在第一季沒有發生。這就是主要原因，喬。

Fair enough. And then last quarter, you talked about you're bullish on the public sector. Just trying to get your feeling for today.

很公平。上個季度，您談到看好公共部門。只是想了解你今天的感覺。

So the public sector, let me start with the US, the public sector growing, so the public sector grow not a large amount, but did grow in the in the first quarter. What we are seeing there is a lot of interest and exploration around AI in the public sector, and they're not the first to adopt most anything, but they are very interested in exploring creating some POs from a proof-of-concept type areas.

那麼公共部門，讓我從美國開始，公共部門正在成長，所以公共部門成長幅度不大，但在第一季確實有所成長。我們看到，公共部門對人工智慧有很多興趣和探索，他們並不是第一個採用大多數東西的人，但他們對探索從概念驗證類型領域創建一些 PO 非常感興趣。

So we are helping a few states in that regard. There's also some work going on up in some of the North East states that we're operating in. They want us to help them understand the guidelines, the guard rails around the use of AI and who will be liable and how would it happen if they introduce it into their motor vehicle system or thing introduced it into their toll system. So it's created a new demand area for us, which fits in perfectly with our AI advisory business.

因此，我們正在這方面幫助一些州。我們正在進行業務的東北部一些州也正在進行一些工作。他們希望我們幫助他們了解人工智慧使用的指導方針、護欄，以及誰將承擔責任，以及如果他們將人工智慧引入他們的機動車輛系統或將其引入他們的收費系統，會發生什麼情況。所以它為我們創造了一個新的需求領域，這與我們的人工智慧諮詢業務完美契合。

And we're seeing a pickup in that area here in the US, I expect the Australian government just kind of going around the globe to be a little sluggish for a few quarters, because they kind of go in cycles. And when they go in cycles, they go in big chunks. There's not any larger kind of RFPs in the system at the moment. They usually sometimes will skip a quarter or so. But that's how I would see the Australian government so that the government work there, I think could be a little sluggish for a couple of quarter or two out that part of the world.

我們在美國看到該地區的經濟復甦，我預計澳洲政府在全球範圍內會在幾個季度內表現得有些遲緩，因為它們是週期性的。當它們循環時，它們會分成大塊。目前系統中沒有任何更大類型的 RFP。他們通常有時會跳過四分之一左右。但這就是我對澳洲政府的看法，因此政府在那裡的工作，我認為對於世界上四分之一或兩個地區來說，政府的工作可能會有點遲緩。

And then in Europe, we're seeing some good strength in Italy, some little less strength in Europe, and we're seeing some strength now in the German market so that's how I would describe that. The overall market, the only exception in Australia was the we got a large deal with a large university in Australia as they want to kind of kind of retool their whole human capital and financial system. So that is a project that will begin late this quarter. So that's kind of how we're going around the globe on the government side.

然後在歐洲，我們在義大利看到了一些強勁的實力，在歐洲看到了一些實力稍差的實力，而我們現在在德國市場看到了一些實力，這就是我的描述。整個市場，澳洲唯一的例外是我們與澳洲的一所大型大學達成了一項大協議，因為他們希望重組其整個人力資本和金融體系。這是一個將於本季末開始的項目。這就是我們政府在全球範圍內採取的行動。

Thanks for that. And just one more on Tango, since it is so exciting here, can you kind of size the number of clients that are using the platform today? And maybe what kind of revenue generation you see coming from Tango?

感謝那。還有一個關於 Tango 的問題，因為這裡非常令人興奮，您能估算一下今天​​使用該平台的客戶數量嗎？也許您認為 Tango 會帶來什麼樣的收入？

Yes. Look, a couple of things. We're not going to talk about the exact number of clients on Tango. We'll talk about in terms of contract value, but I will put it in this context, sourcing component of our business, which is really the foundation of how ISG. was built think about it on a revenue standpoint, that's kind of end up one-third of our business type area. So if you think about it that way and you have 900 clients. That's one wayto look at it, Joe.

是的。看，有幾件事。我們不會談論 Tango 的確切客戶數量。我們將討論合約價值，但我會將其放在我們業務的採購部分的背景下，這實際上是 ISG 的基礎。從收入的角度考慮，這最終佔了我們業務類型領域的三分之一。所以如果你這樣想的話，你有 900 個客戶。這是看待問題的一種方式，喬。

Okay. Thanks.

好的。謝謝。

Vincent Colicchio, Barrington Research.

文森特·科利奇奧，巴靈頓研究中心。

Good morning, Mike.

早上好，麥克。

So you don't most service providers seem to say, the generative AI, given complexity risk and for other related issues has taken some time to get started here. There's a handful here and there is and they're off to the races, but that seems like a little bit of an exaggeration to me. I think you're a good measure of where things are. So I don't know this may not even be a usual question, but it may be useful in a meaningful way. What is your read on when it becomes a meaningful contributor? Is it '25 issue?

所以，大多數服務提供者似乎都沒有這麼說，考慮到複雜性風險和其他相關問題，生成式人工智慧需要一些時間才能開始。這裡有一些，那裡有一些，他們正在參加比賽，但這對我來說似乎有點誇張。我認為你可以很好地衡量事情的情況。所以我不知道這可能不是一個常見的問題，但它可能以有意義的方式有用。當它成為有意義的貢獻者時，您會閱讀什麼？這是25年的問題嗎？

So look, it's a good. It's a very good question and let me tell you how we think about it in the context that we think about it in. If you go back to kind of the cloud adoption, call it 10 years ago and think about how that has matured over the last 10 years. Today, you might see 50 -- 55% of the workloads that could go to the cloud are in the cloud today. So that's number one to think about 10 years later.

所以你看，這是一個很好的。這是一個非常好的問題，讓我告訴你我們在思考這個問題的背景下是如何思考這個問題的。如果你回顧一下雲端的採用，可以將其稱為 10 年前，並想想它在過去 10 年中是如何成熟的。今天，您可能會看到 50% 到 55% 的可以轉移到雲端的工作負載現在都在雲端。所以這是 10 年後最值得考慮的事情。

The second way to look at AI is it's new. It's definitely going to be revolutionary. It still requires lots of education and proof of concept. It requires kind of understanding what it is and what it can do. So there's a large education component.

看待人工智慧的第二種方式是它是新的。這肯定會是革命性的。它仍然需要大量的教育和概念驗證。它需要了解它是什麼以及它能做什麼。所以這裡有很大的教育成分。

They need to understand how the information and the data architecture would feed into AI models. And one of the other elements that all of the tech providers that I'm sure you follow, Vince as well is there is also a liability question. So if a technology provider developed a model for client A, client A. uses that model and all of a sudden it's a Insurance Company. As an example, something goes awry in their claims using this AI model, who's the liable and responsible party.

他們需要了解資訊和資料架構如何輸入人工智慧模型。我確信您也遵循的所有技術提供者（文斯）的其他要素之一是也存在責任問題。因此，如果技術提供者為客戶 A 開發了一個模型，客戶 A 使用該模型，突然之間它就成為了一家保險公司。舉個例子，他們使用這個人工智慧模型的索賠出了問題，誰才是責任方。

So there are a lot of guardrails and legalities around the use of AI models that will take a while to kind of sort out. So I think we're in the stage of pilots, proof of concept. I think the hype is much bigger than the reality, and I think it will be that way for 12 or 18 months. I don't expect, to see large amounts of real AI if you will differentiators before that timeframe.

因此，人工智慧模型的使用存在著許多障礙和合法性，需要一段時間才能解決。所以我認為我們正處於試點階段、概念驗證階段。我認為炒作比現實要大得多，而且我認為這種情況會持續 12 或 18 個月。如果你能在那個時間範圍之前實現差異化，我不希望看到大量真正的人工智慧。

The other aspect of it, is that all the enterprises that we are now dealing with are asking us to consider AI as part of the sourcing transaction that they are doing and they want to understand from the Accentures and the Cap Gemini and all these other providers, how are they thinking about the use of AI? And from the enterprise standpoint, one of the things they want is well, how can I benefit from it from a cost standpoint? I don't really want my tech providers to benefit the entirety of that, how do I as an enterprise get value from the use of AI and that will be ongoing over the course of the next, call it, 12 or 18 months. But there's definitely the hype is bigger than the actual at the moment, but not unexpectedly.

另一方面，我們現在正在處理的所有企業都要求我們將人工智慧視為他們正在進行的採購交易的一部分，他們希望從埃森哲和 Cap Gemini 以及所有其他提供者那裡了解，他們如何考慮人工智慧的使用？從企業的角度來看，他們想要的事情之一是，從成本的角度來看，我如何從中受益？我真的不希望我的技術提供者從這一切中受益，作為一個企業，我如何從人工智慧的使用中獲得價值，這將在接下來的過程中持續進行，稱之為12 或18 個月。但目前的炒作肯定比實際情況更大，但並不出乎意料。

So I think that's that was very helpful color. Thank you for that.

所以我認為這是非常有用的顏色。謝謝你。

And then you highlight the top three practices that should lead a growth going forward?

然後您強調了應該引領未來成長的三大實踐？

Well, number one for us is the recurring revenue streams and in that recurring revenue stream, we have our research. We have our governance. We have our platforms. We have things like our Pro benchmark software platform. We have things like our governance, our platform. So number one is around our recurring revenue streams.

嗯，對我們來說，第一要務是經常性收入流，在經常性收入流中，我們有我們的研究。我們有我們的治理。我們有我們的平台。我們有 Pro 基準測試軟體平台之類的東西。我們有我們的治理、我們的平台等東西。因此，第一個問題是我們的經常性收入流。

Number two is, I believe that the sourcing component where clients are looking at the sourcing element to help them optimize cost and possibly use some of those savings for growth initiatives. We'll accelerate. We're seeing it in our pipeline right now. So that will be a second area.

第二點是，我認為客戶正在尋找採購元素，以幫助他們優化成本，並可能將其中一些節省的資金用於成長計劃。我們會加速。我們現在正在我們的管道中看到它。所以這將是第二個領域。

And thirdly, the transformation journey is still a long way to go. So transformation is still going to be ongoing. The pace of those transformations has been slowed because of the macro cloud. And frankly, I think if we start to see a cut or two in the US from a Fed rate or from the from the upfront from the European theater over the course of this year.

第三，轉型之路依然任重道遠。因此，轉型仍將持續進行。由於宏觀雲的影響，這些轉型的步伐已經放緩。坦白說，我認為今年我們是否會開始看到美國聯準會利率或歐洲戰場的前期利率下調一兩次。

That might also change the sentiment among some of the client buyers that Okay. Maybe the worst is behind us because one day there's no cuts. The other day. There are cuts. One day is wait a minute are we moving toward a recession? The other day is no recession.

這也可能改變一些客戶買家的情緒。也許最糟糕的時刻已經過去了，因為有一天不會有任何削減。另一天。有削減。有一天，等一下，我們會走向衰退嗎？前幾天沒有經濟衰退。

So there's a lot of noise out there. And I think until we see a dozen affirmative kind of movement that will help indicate that, that may help free things up late this year or as we turn into 2025, that's at least that would be our take.

所以外面有很多噪音。我認為，直到我們看到十幾個肯定性的運動將有助於表明，這可能有助於在今年晚些時候或進入 2025 年時解放一切，這至少是我們的看法。

And then one more related to the sourcing platform. So is there a way for you to parse out, business you happen to win on the platform versus?

然後還有一個與採購平台相關的問題。那麼有沒有一種方法可以讓你解析出你在平台上贏得的業務與呢？

Well, I don't know if it's too early to tell what to what extent do you think the platform is the cause for the win?

嗯，我不知道現在說你認為平台在多大程度上是獲勝的原因是否還為時過早？

So I think the first, I think does because we are the global leader in sourcing transactions. And we've said this before, we have a greater we believe we have a greater than 50% share of that marketplace. Number one, they're going to go to ISG no matter what that step one, what that platform enables is that it enables a client then to also understand that I may be able to get time to value much or speed to value much faster using the ISG platform, which then enables me to get to my savings at a faster pace.

所以我認為第一是因為我們是採購交易的全球領導者。我們之前說過，我們相信我們擁有超過 50% 的市佔率。第一，無論第一步是什麼，他們都會去 ISG，該平台使客戶能夠了解，我可以使用以下方式獲得時間來實現價值，或更快地實現價值： ISG 平台，使我能夠更快地獲得儲蓄。

If I so chose it also enables the technology providers that we deal with every day to understand that there will be a likely outcome and that outcome might come a little sooner and therefore, they might be a little more aggressive in their pricing and therefore, it will benefit the enterprise. So I think it's the combination that we have the leadership position. We're now adding a nice, strong, efficient and effective platform together. I think that is why we will continue to lead in this space.

如果我這樣選擇，它也能讓我們每天打交道的技術提供者明白，將會有一個可能的結果，而且這個結果可能會來得更早一些，因此，他們的定價可能會更激進一些，因此，將使企業受益。所以我認為正是這種結合讓我們擁有了領先地位。我們現在正在共同增加一個美好、強大、高效且有效的平台。我認為這就是我們將繼續在這個領域處於領先地位的原因。

Thanks for answering my questions.

謝謝回答我的問題。

Yes, thanks.

對了謝謝。

Michael Mathison, Singular Research.

邁克爾·馬西森，奇異研究。

Good morning and thanks for taking my questions.

早安，感謝您提出我的問題。

So obviously a challenging environment, just a couple of questions about your income statement in the quarter, SG&A was $24 million. I know that included some severance costs. Can you quantify how much of that was severance and what a good working figure would be for modeling going forward?

顯然，這是一個充滿挑戰的環境，僅就本季損益表提出幾個問題，SG&A 為 2,400 萬美元。我知道這包括一些遣散費。你能否量化其中有多少是遣散費，以及對於未來的模特兒工作來說，一個好的工作數字是多少？

So the severance in the quarter was $2.1 billion, excuse me $2.9 million, I think it was $2.9 million. And so you remove that you're down around that [21.5] level. And we would expect to remain pretty consistent with that as we look at our outlook for Q2.

因此，本季的遣散費為 21 億美元，對不起，290 萬美元，我認為是 290 萬美元。所以你消除了你在 [21.5] 水平附近的下降。當我們審視第二季的前景時，我們預計將與這一點保持一致。

Okay, great. Thank you for that. Secondly, coming back to Tango like everybody else, I'm pretty excited by the possibilities still on particularly since you're now having your own analysts, do their work on Tango? You mentioned you're getting some efficiencies out of there.

好的，太好了。謝謝你。其次，像其他人一樣回到 Tango，我對仍然存在的可能性感到非常興奮，特別是因為你們現在有了自己的分析師，他們在 Tango 上工作？您提到您正在從中獲得一些效率。

Your current gross gross margin is kind of high 30s, 38, 39, 40 some times. Do you have any sort of target of what kind of a lift you would get from the increased deficiency vesting depending on, but are we talking to one or 10%, something like that?

您目前的毛利率有時高達 30 倍以上、38 倍、39 倍、40 倍。您是否有任何目標，即您將從增加的缺陷歸屬中獲得什麼樣的提升，具體取決於，但我們是在與 1% 還是 10% 之類的人交談？

Yes, I think it's I think it's too early in the process, Michael. I mean, we clearly expect to see better efficiency and therefore better profitability. But as Mike said, we're still in the early stages, you know, a little over 2.5 billion of volume that's on it. So we want to really see how it matures and what goes into it before we really put a number against that.

是的，我認為這個過程還為時過早，邁克爾。我的意思是，我們顯然希望看到更高的效率，從而獲得更好的獲利能力。但正如 Mike 所說，我們仍處於早期階段，你知道，其交易量略高於 25 億。因此，在我們真正給出數字之前，我們希望真正了解它是如何成熟的以及它會發生什麼。

Understood. Well, good luck with it though, It's a very exciting idea. (Inaudible) Thanks again.

明白了。好吧，祝你好運，這是一個非常令人興奮的想法。（聽不清楚）再次感謝。

And I am showing no further questions. So I will turn the call back to Mr. Mike Connors, for his closing remarks.

我沒有提出任何進一步的問題。因此，我將把電話轉回給麥克康納斯先生，讓他致閉幕詞。

Thank you, Well, let me just close by saying thank you to all of our professionals worldwide for your dedication to our clients and for working together as a global team to drive our long-term success. Our people have a passion for delivering the best advice and support to our clients as they continue their digital journeys in both good times and uncertain times, and I could not be more prouder of them. And I want to say thanks to all of you on the call for your continued support and confidence in our firm. Have a great rest of the day.

謝謝，最後，請允許我向我們全球所有專業人士表示感謝，感謝你們對我們客戶的奉獻，以及你們作為一個全球團隊的共同努力，推動我們的長期成功。我們的員工熱衷於為客戶提供最好的建議和支持，無論他們在順境或不確定的時期繼續他們的數位之旅，我為他們感到無比自豪。我想對所有參加電話會議的人表示感謝，感謝你們對我們公司的持續支持和信任。祝你這一天好好休息。

And ladies and gentlemen, this concludes today's teleconference. We thank you for your participation, and you may disconnect it anytime.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，您可以隨時斷開連線。