I3 Verticals Inc (IIIV) 2025 Q2 法說會逐字稿

Good day, everyone, and welcome to the i3 Verticals second quarter 2025 earnings conference call. Today's call is being recorded, and a replay will be available starting today through May 16. The number for today's -- for the replay is 877-344-7529 and the code is 5899364. The replay may also be accessed for 30 days at the company's website.

大家好，歡迎參加 i3 Verticals 2025 年第二季財報電話會議。今天的通話將會被錄音，從今天開始到 5 月 16 日都可以重播。今天的重播號碼是 877-344-7529，代碼是 5899364。您也可以在該公司的網站上觀看 30 天的重播。

At this time, for opening remarks, I would like to turn the call over to Clay Whitson, Chief Strategy Officer. Please go ahead, sir.

現在，為了致開幕詞，我想將電話轉給首席策略長 Clay Whitson。先生，請繼續。

Good morning, and welcome to the second quarter 2025 conference call for i3 Verticals. Joining me on this call are Greg Daily, our Chairman and CEO; Rick Stanford, our President; Geoff Smith, our CFO; and Paul Christians, our Chief Revenue Officer.

早安，歡迎參加 i3 Verticals 2025 年第二季電話會議。參加本次電話會議的還有我們的董事長兼執行長 Greg Daily、我們的總裁 Rick Stanford、我們的財務長 Geoff Smith 和我們的首席營收長 Paul Christians。

To the extent any non-GAAP financial measure is discussed in today's call, you will also find a reconciliation to the most directly comparable GAAP financial measure by reviewing yesterday's earnings release. It is the company's intent to provide non-GAAP financial information to enhance understanding of its consolidated GAAP financial information. This non-GAAP financial information should be considered by each individual in addition to, but not instead of the GAAP financial statements.

如果在今天的電話會議中討論了任何非 GAAP 財務指標，您還可以透過查看昨天的收益報告找到與最直接可比較的 GAAP 財務指標的對帳。該公司旨在提供非 GAAP 財務信息，以增強對其合併 GAAP 財務資訊的理解。每個人都應該考慮這些非 GAAP 財務信息，作為 GAAP 財務報表的補充，但不能取代它。

This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding the company's expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. You are hereby cautioned that these forward-looking statements may be affected by important factors, among others, set forth in the company's earnings release and in reports that are filed or furnished to the SEC.

本次電話會議可能包含《1995 年私人證券訴訟改革法案》所定義的前瞻性陳述，其中包括有關公司預期財務和營運績效的陳述。為此目的，本次電話會議中所做的任何非歷史事實陳述均可視為前瞻性陳述。特此提醒您，這些前瞻性陳述可能會受到公司收益報告以及向美國證券交易委員會提交或提供的報告中列出的重要因素的影響。

Consequently, actual operations and results may differ materially from those discussed in the forward-looking statements. Finally, the information shared on this call is valid as of today's date, and the company undertakes no obligation to update it, except as may be required under applicable law.

因此，實際營運和結果可能與前瞻性陳述中討論的大不相同。最後，本次電話會議中分享的資訊自今日起有效，本公司不承擔更新資訊的義務，除非適用法律另有要求。

I will now turn the call over to the company's Chairman and CEO, Greg Daily.

現在我將把電話轉給公司董事長兼執行長格雷格·戴利 (Greg Daily)。

Thanks, Clay, and good morning to everyone on the call. We have some exciting things to discuss on the call today. I'd like to start by saying thank you to everyone in our health care revenue cycle management or RCM business. It's been a pleasure to have you on the team, and I know you're going to do great things together with Infinx. We're proud of your performance and wish you the very best.

謝謝，克萊，各位電話裡的各位早安。我們今天在電話會議上要討論一些令人興奮的事情。首先，我要向醫療保健收入周期管理或 RCM 業務中的每個人表示感謝。很高興您加入團隊，我知道您將與 Infinx 一起做出偉大的事情。我們為您的表現感到自豪並祝您一切順利。

After the divestiture of our RCM business, we're excited to be streamlined and focused on public sector vertical market. That business had a second quarter revenue growth of 12% and SaaS revenue grew at 23%. It's an exciting time to be building in the public sector. There's been a lot of focus on efficiency and cost savings, particularly at the federal level. While we're focused at the state and local level, we embrace this national conversation.

在剝離我們的 RCM 業務之後，我們很高興能夠精簡業務並專注於公共部門垂直市場。該業務第二季營收成長 12%，SaaS 營收成長 23%。現在是公共部門建設的激動人心的時刻。人們非常關注效率和成本節約，尤其是在聯邦層級。雖然我們的重點是州和地方層面，但我們也歡迎這場全國性的對話。

We believe that better software is one of the best ways for government -- better ways that government can become more efficient while improving their services to their citizens. That is what we're committed to, helping government deliver on their promises with excellence. Something that excites me is that there are many small public sector-focused software businesses that share that perspective. One such business joined us on April 1. Rick is going to share more later, but we're excited about the management team and the increased market presence in utilities.

我們相信，更好的軟體是政府提高效率並改善其為公民提供的服務的最佳方式之一。這就是我們的承諾：幫助政府出色地兌現承諾。令我興奮的是，許多專注於公共部門的小型軟體企業都持有這種觀點。其中一家企業於 4 月 1 日加入了我們。里克稍後會分享更多信息，但我們對管理團隊和公用事業市場佔有率的提高感到興奮。

I will now turn the call over to Clay -- to Geoff, and he'll provide us more details on the financial performance. When he's finished, Rick will address our most recent deal. And finally, Paul will discuss revenue, and then we'll open up the call for questions.

現在我將把電話轉給克萊——傑夫，他將向我們提供有關財務表現的更多詳細資訊。講完之後，瑞克會談到我們最近的交易。最後，保羅將討論收入問題，然後我們將開始提問。

Thanks, Greg. The following pertains to the second quarter of fiscal year 2025, which is the quarter ended March 31, 2025. Please refer to the slide presentation titled Supplemental Information on our website and provided with our Form 8-K for reference with this discussion. On Tuesday, we announced the sale of our Healthcare RCM business. The business we sold had approximately $39 million of revenues and approximately $8 million of adjusted EBITDA in our guidance for fiscal 2025. The sale will reduce our headcount by over 400 employees. This sale follows the sale of our Merchant Services business last September, and we need to start by clarifying some labels and classifications. The sale of our healthcare RCM business did not qualify as assets held for sale or discontinued operations as of March 31, our current reporting period. As such, for financial reporting purposes, when you look at our earnings release or later our 10-Q, continuing operations refers to our results exclusive of the Merchant Services business, but including the healthcare RCM business.

謝謝，格雷格。以下內容涉及 2025 財年第二季度，即截至 2025 年 3 月 31 日的季度。請參閱我們網站上標題為「補充資料」的幻燈片簡報以及我們的 8-K 表格以供參考。週二，我們宣佈出售醫療保健 RCM 業務。根據我們對 2025 財年的預測，我們出售的業務的收入約為 3,900 萬美元，調整後的 EBITDA 約為 800 萬美元。此次出售將使我們的員工總數減少 400 多人。此次出售是繼去年 9 月出售我們的商家服務業務之後進行的，我們需要先澄清一些標籤和分類。截至本報告期間 3 月 31 日，我們出售的醫療保健 RCM 業務不符合持有待售資產或停止經營的條件。因此，出於財務報告的目的，當您查看我們的收益報告或稍後的 10-Q 時，持續經營是指不包括商家服務業務但包括醫療保健 RCM 業務的業績。

The Healthcare RCM business will then become discontinued operations as part of our Q3 reporting cycle or June quarter, and we will be able to give more complete historical financial information related to the divested business then. For now, when we remove the impact of the divested healthcare RCM business, we will call that RemainCo, and our discussion on our quarterly results in the outlook section will be focused there.

作為我們第三季報告週期或六月季度的一部分，醫療保健 RCM 業務將成為停止營運的業務，屆時我們將能夠提供與剝離業務相關的更完整的歷史財務資訊。目前，當我們消除剝離的醫療保健 RCM 業務的影響時，我們將其稱為 RemainCo，我們在展望部分對季度業績的討論也將集中在那裡。

RemainCo revenues for the second quarter of fiscal 2025 increased 11.6% to $54.1 million from $48.5 million for Q2 '24, reflecting $4.4 million of organic growth or 9% and $1.2 million of revenue from the permitting and licensing acquisition we made last year in the public sector. Growth for the education revenues were in line with organic growth for RemainCo as a whole.

RemainCo 2025 財年第二季的營收從 2024 年第二季的 4,850 萬美元成長 11.6% 至 5,410 萬美元，其中有機成長 440 萬美元，成長 9%，營收來自我們去年在公共部門獲得的許可和執照收購，增幅達 120 萬美元。教育收入的成長與 RemainCo 整體的有機成長一致。

Annual recurring revenues for RemainCo increased 9.2% to $164.5 million for Q2 2025 compared to $150.6 million for Q2 2024. 76% of our revenues from the quarter came from recurring sources, driven by SaaS revenue growth of 23%, transaction-based revenue growth of 8% and recurring software services growth of 12%.

RemainCo 的年度經常性收入在 2025 年第二季成長 9.2%，達到 1.645 億美元，而 2024 年第二季為 1.506 億美元。本季我們 76% 的營收來自經常性收入來源，其中 SaaS 營收成長 23%，基於交易的營收成長 8%，經常性軟體服務成長 12%。

Nonrecurring sales of software licenses for RemainCo increased to $2.8 million for Q2 2025 from just $1 million for Q2 2024. We expect software license sales to be lower for the second half of the fiscal year relative to the first half. RemainCo software and related services represented 70% of RemainCo revenues for Q2, with payments 26% and other 4%. Adjusted EBITDA for RemainCo increased 17%, outpacing revenues to $15.8 million for Q2 2025 from $13.5 million for Q2 2024. Adjusted EBITDA as a percentage of revenues was 29.3%, an increase from 27.9% for Q2 2024, reflecting higher software sales, which carry high margins.

RemainCo 的軟體授權非經常性銷售額從 2024 年第二季的 100 萬美元增至 2025 年第二季的 280 萬美元。我們預計本財年下半年的軟體許可證銷售額將低於上半年。RemainCo 軟體和相關服務佔 RemainCo 第二季營收的 70%，支付佔 26%，其他佔 4%。RemainCo 的調整後 EBITDA 成長了 17%，超過了收入，從 2024 年第二季的 1,350 萬美元增至 2025 年第二季的 1,580 萬美元。調整後的 EBITDA 佔營收的百分比為 29.3%，高於 2024 年第二季的 27.9%，這反映了軟體銷售額的增加，從而帶來了高利潤率。

Regarding the balance sheet, following the sale of our Merchant Services business last September and the sale of our RCM Healthcare business this week, our balance sheet is strong and well positioned for the future. As of March 31, net debt stood at $4 million. We repaid the balance of our convertible notes at maturity during February. Following quarter end, we purchased the utility billing software company for $9 million, which Rick will profile. We also paid an earn-out of $1.5 million associated with the divested health care RCM business, and we sold the RCM Healthcare business for $96 million, less transaction costs and taxes of almost $18 million. So we currently have a cash position of approximately $64 million. We still have $400 million of borrowing capacity under our revolving credit facility with a 5x leverage constraint, and we intend to use the cash and any borrowings for acquisitions and potential stock repurchases.

關於資產負債表，繼去年 9 月出售我們的商家服務業務以及本週出售我們的 RCM 醫療保健業務之後，我們的資產負債表表現強勁，為未來做好了準備。截至 3 月 31 日，淨債務為 400 萬美元。我們在二月償還了到期的可轉換票據餘額。在接下來的季度末，我們以 900 萬美元收購了公用事業計費軟體公司，Rick 將對其進行介紹。我們還支付了與剝離的醫療保健 RCM 業務相關的 150 萬美元的盈利，並且我們以 9600 萬美元的價格出售了 RCM 醫療保健業務，減去近 1800 萬美元的交易成本和稅金。因此，我們目前的現金狀況約為 6,400 萬美元。我們的循環信貸額度下仍有 4 億美元的借貸能力，槓桿率限制為 5 倍，我們打算將現金和任何借款用於收購和潛在的股票回購。

The following introduces guidance for RemainCo for fiscal 2025. The outlook does not include acquisitions or dispositions that have not been announced or transaction-related costs. The utility billing software acquisition is a high-margin business and the price of $9 million was on the high end of our normal multiple range. The effective date was April 1. Revenues, $207 million to $217 million; adjusted EBITDA, $56 million to $61 million; depreciation and internally developed software amortization, $11 million to $12 million; cash interest expense, $0 to $750,000; pro forma adjusted diluted earnings per share, $0.96 to $1.06.

以下介紹了 2025 財年 RemainCo 的指導方針。該展望不包括尚未宣布的收購或處置或交易相關成本。公用事業計費軟體的收購是一項高利潤業務，900 萬美元的價格處於我們正常倍數範圍的高端。生效日期為4月1日。收入為 2.07 億美元至 2.17 億美元；調整後 EBITDA 為 5,600 萬美元至 6,100 萬美元；折舊和內部開發軟體攤提為 1,100 萬美元至 1,200 萬美元；現金利息支出為 0 至 750,0000 美元；調整後每股攤薄收益為 0.96 美元。

In view of recent trade friction between the US and Canada and ongoing delays with our Manitoba contract, we have removed about $2.5 million of revenues, which were previously included in our outlook for fiscal 2025, principally in the second half of the fiscal year. We still continue to expect high single-digit organic revenue growth for RemainCo in the absence of the Healthcare RCM business, and we continue to expect adjusted EBITDA margin improvement of 50 to 100 basis points per year.

鑑於最近美國和加拿大之間的貿易摩擦以及我們與曼尼托巴省的合約持續延遲，我們取消了約 250 萬美元的收入，這筆收入之前已包含在我們對 2025 財年的展望中，主要是在該財年的下半年。在沒有醫療保健 RCM 業務的情況下，我們仍然預計 RemainCo 的有機收入將實現高個位數成長，並且我們仍然預計調整後的 EBITDA 利潤率每年將提高 50 至 100 個基點。

From a seasonality standpoint, we currently expect our revenue distribution for the remaining two quarters to approximate the following: Q3, 48%; Q4, 52%. Public sector payments and software services revenues declined seasonally during Q3, along with education revenues while school is out. Although software license sales are less a factor than in years past, they still represent the most variable line item to forecast and can distort seasonality in any given quarter.

從季節性的角度來看，我們目前預計剩餘兩季的營收分佈大致如下：第三季度，48%；第四季度，52%。第三季度，公部門支付和軟體服務收入出現季節性下降，學校放假期間教育收入也出現下降。儘管軟體許可證銷售的影響比過去幾年有所減弱，但它仍然是預測中最易變的項目，並且可能扭曲任何特定季度的季節性。

I will now turn the call over to Rick for comments on M&A.

現在我將把電話轉給 Rick，請他針對併購事宜發表評論。

Thank you, Geoff. Good morning, everyone. I'll speak about our most recent acquisition, and then I'll turn the call over to Paul for updates. In last night's earnings release, we announced that we have closed another public sector acquisition in the utility billing space. This acquisition expands our business in various states, but also creates a new footprint in many states where we do not operate today. With this acquisition, we feel this will give us ample room to run in those new states in the future from a sales perspective.

謝謝你，傑夫。大家早安。我將談論我們最近的收購，然後將電話轉給保羅以了解最新進展。在昨晚的收益發布會上，我們宣布我們已經完成了公用事業計費領域的另一項公共部門收購。此次收購不僅擴大了我們在各州的業務，而且還在我們目前尚未開展業務的許多州創造了新的業務足跡。透過此次收購，我們認為從銷售角度來看，這將為我們未來在這些新州的營運提供充足的空間。

The company we acquired serves small- to medium-sized municipal utilities, providing utility billing and inventory solutions such as inventory cost tracking and supply management that supports purchase orders, project management and work order integration. Their software is cloud-based and mobile compatible. Utility billing platform allows users to import meter reads and supports both AMI, advanced metering infrastructure or two-way communication and AMR, automated meter reading via walk by or drive by reading integration. This helps streamline the billing process and seamlessly integrates into various accounting systems. The software also offers e-mail and text alerts for automated billing reminders. The company has recurring payments and print and mail revenue streams, both of which are outsourced today. This acquisition should enhance i3's offerings in the utilities market overall. For example, being able to track and bill multiple meters per account is a feature that we needed to supply with current and new potential customers. In addition, there are areas of our business model that offer us opportunities for growth. For example, they have historically not licensed their software on a SaaS basis, which is already in the process of changing. In addition, we feel that i3's internal payment processing platform should improve the economics of that portion of their business. They currently outsource that function.

我們收購的公司為中小型市政公用事業提供服務，提供公用事業計費和庫存解決方案，例如支援採購訂單、專案管理和工單整合的庫存成本追蹤和供應管理。他們的軟體基於雲端並且與行動裝置相容。公用事業計費平台允許使用者匯入電錶讀數，並支援 AMI、高級計量基礎設施或雙向通訊和 AMR、透過步行或駕駛讀數整合進行的自動電錶讀數。這有助於簡化計費流程並無縫整合到各種會計系統中。該軟體還提供電子郵件和文字提醒，以自動提醒帳單。該公司擁有經常性付款以及印刷和郵寄收入來源，目前這兩項收入都已外包。此次收購將全面增強 i3 在公用事業市場的產品供應。例如，我們需要為現有客戶和新潛在客戶提供能夠追蹤和計費每個帳戶的多個電錶的功能。此外，我們的商業模式的某些領域也為我們提供了成長機會。例如，他們過去並沒有以 SaaS 方式授權其軟體，但這種情況已在改變。此外，我們認為 i3 的內部支付處理平台應該可以改善其該部分業務的經濟效益。他們目前將該功能外包。

We are encouraged by our integration of prior acquisitions and the ability of our engineering group to build full payments integration into new products and our time to market with our software and payments as a combined solution. To that end, this acquisition's engineering team has already begun the process of coding to our current API so that payments can be made in-house versus using a third-party vendor.

我們對先前的收購進行了整合，我們的工程團隊有能力將完整的支付整合到新產品中，並且我們將軟體和支付作為組合解決方案推向市場，這讓我們感到鼓舞。為此，此次收購的工程團隊已經開始對我們目前的 API 進行編碼，以便可以在內部進行支付，而不是使用第三方供應商。

Beyond printing and payments, i3 has several other products in the utility market, including a best-in-class EIVR, enhanced interactive voice response and customer portal. While these products generally are sold to larger utilities, we expect over time to find cross-sell opportunities with acquisitions existing customer base. Our acquisition pipeline continues to be strong with our primary focus on acquisitions in the public sector vertical and the markets they serve. We look forward to sharing more information on M&A activity as it becomes available.

除了列印和付款之外，i3 在公用事業市場上還有其他幾款產品，包括一流的 EIVR、增強型互動語音應答和客戶入口網站。雖然這些產品通常銷售給較大的公用事業公司，但我們希望隨著時間的推移，透過收購現有客戶群找到交叉銷售機會。我們的收購管道持續保持強勁，主要專注於公共部門垂直領域及其服務市場的收購。我們期待分享更多有關併購活動的資訊。

I'll now turn the call over to Paul for final comments.

現在我將把電話轉給保羅，請他發表最後的評論。

Thank you, Rick. At i3 Verticals, we remain committed to a domain-specific approach across our targeted markets. By offering tailored solutions and deep domain expertise, we create meaningful adoption and barriers to entry. Our customers know that with i3, there is certainty of deliverables and execution, which fosters trust and long-term relationships. This is evident in select enterprise markets that interface with consultants or selection companies that are domain-specific. That has been positive for i3 as the broader market understands our branding, market focus, domain expertise and responsive software solutions.

謝謝你，里克。在 i3 Verticals，我們始終致力於針對目標市場採用特定領域的方法。透過提供客製化的解決方案和深厚的領域專業知識，我們創造了有意義的採用和進入障礙。我們的客戶知道，有了 i3，交付和執行就有了確定性，從而可以建立信任和長期關係。這在與特定領域的顧問或選擇公司對接的精選企業市場中顯而易見。這對 i3 來說是正面的，因為更廣泛的市場了解我們的品牌、市場重點、領域專業知識和響應式軟體解決方案。

We are monitoring the geopolitical landscape and see opportunity for i3. We do not currently have any direct business with the federal government. However, we have seen opportunities emerge at the state and local levels, which appear to be tied to evolving those style efficiency requirements. While those developments are encouraging, it is too early to determine whether they represent a trend.

我們正在關注地緣政治格局並看到 i3 的機會。我們目前與聯邦政府沒有任何直接業務往來。然而，我們已經看到州和地方層級出現了一些機遇，這些機會似乎與改進風格效率要求息息相關。儘管這些發展令人鼓舞，但現在判斷它們是否代表一種趨勢還為時過早。

Our ability to monetize software systems by offering perpetual licensing SaaS user fee plus payment models to our customers drives significant advantages for i3. This structure lowers barrier to entry by reducing upfront financial hurdles. In turn, it accelerates implementation time lines, enhances speed to market for our customers and helps them protect their operating budget, and it insulates us from volatility associated with shifts in government priorities or funding cycles.

我們透過向客戶提供永久許可的 SaaS 用戶費用加付款模式來實現軟體系統貨幣化，這為 i3 帶來了顯著優勢。這種結構透過減少前期財務障礙來降低進入門檻。反過來，它加快了實施時間表，提高了客戶的上市速度，並幫助他們保護他們的營運預算，並使我們免受與政府優先事項或資金週期變化相關的波動的影響。

Cross-selling activities across our public sector markets of ERP, public safety, JusticeTech, public education, utility and transportation remain robust. By concentrating on these markets, we deliver highly integrated solutions that address a wide range of customer needs. Our continued execution in these areas will remain a significant driver of organic growth over time. This has resulted in a healthy balance of contracts across the spectrum of our markets with the number of contracts and bookings revenue up double digits on a sequential quarter basis. The public education market has been particularly productive with new contracts -- with contracts in five new markets, including Idaho, Texas, Oklahoma, North Carolina and Delaware. We are also in the process of finalizing a contract for a statewide court system in our Justice Tech market. We're anticipating having more to share on this on next quarter's call. I am also pleased to share the status of our artificial intelligence applications and initial market acceptance. We have created an i3 infrastructure group, leveraging common infrastructure, security and development platforms in support of our public sector market efforts. Our focus mirrors our domain-specific product sales and deployment model, initially looking to solve client pain points while enhancing client efficiency. This includes the release of an AI service agent in our transportation market that is deployed across the state in each of the 95 counties. In our ERP market, we are just releasing a module in our land records application focused on automated indexing. The module provides clients with significant improvement in accuracy and efficiency.

我們在 ERP、公共安全、司法科技、公共教育、公用事業和交通等公共部門市場的交叉銷售活動仍然強勁。透過專注於這些市場，我們提供高度整合的解決方案來滿足廣泛的客戶需求。我們在這些領域的持續執行將繼續成為長期有機成長的重要推動力。這使得我們各個市場之間的合約數量保持了健康的平衡，合約數量和預訂收入比上一季度增長了兩位數。公共教育市場在新合約方面尤其富有成效——在愛達荷州、德克薩斯州、俄克拉荷馬州、北卡羅來納州和特拉華州等五個新市場簽訂了合約。我們也正在敲定司法技術市場中全州法院系統的合約。我們期待在下個季度的電話會議上分享更多相關資訊。我也很高興分享我們的人工智慧應用和初步市場接受度的現狀。我們創建了一個 i3 基礎設施組，利用通用基礎設施、安全和開發平台來支援我們的公共部門市場工作。我們的重點反映了我們特定領域的產品銷售和部署模型，最初尋求解決客戶痛點，同時提高客戶效率。這包括在我們的運輸市場發布一個人工智慧服務代理，該代理已部署在全州 95 個縣。在我們的 ERP 市場中，我們剛剛在土地記錄應用程式中發布了一個專注於自動索引的模組。該模組為客戶提供了準確性和效率的顯著提高。

On our last call, I discussed the success of our i3 Customer Engagement e-Portal, particularly in Enterprise Utilities markets. We have continued our product evolution by enhancing our AI market offerings that we introduced this week. The initial release focuses on i3 Generative AI bots capable of handling complex end-to-end transactions that integrate with an i3 Agent Assist Dashboard that summarizes account history, generate recommended actions and automate communications, improving customer satisfaction. This is accomplished via a secure i3 AI knowledge layer integrated into billing systems and accessible across i3's e-Portal, IVR and CSR interfaces.

在我們上次通話中，我討論了我們的 i3 客戶參與電子入口網站的成功，特別是在企業公用事業市場。我們透過增強本週推出的人工智慧市場產品來延續我們的產品革新。初始版本專注於 i3 生成式 AI 機器人，該機器人能夠處理複雜的端到端交易，並與 i3 代理輔助儀表板集成，可匯總帳戶歷史記錄、生成推薦操作並自動化通信，從而提高客戶滿意度。這是透過整合到計費系統中的安全 i3 AI 知識層實現的，並且可以透過 i3 的電子入口網站、IVR 和 CSR 介面存取。

This concludes my comments, Rocco. At this time, we will open the call for Q&A, please.

我的評論到此結束，羅科。現在，我們將開始問答環節。

(Operator Instructions)

（操作員指示）

John Davis, Raymond James.

約翰戴維斯、雷蒙詹姆斯。

Geoff, I appreciate the color on the go-forward growth algo, more or less unchanged. Good to see 9% organic growth in the quarter. Our math suggests that the HCM divestiture is probably about 100 basis points accretive to revenue growth and overall margins. As we go into next year, how should we think about or even this year, the run rate of what's left of the health care business? So if you annualize the first half of the year, it would be a $10 million business. If you annualize the second quarter, it's more like $7 million. So just curious how big that remaining health care business is.

傑夫，我很欣賞未來成長演算法的顏色，它或多或少沒有變化。很高興看到本季有機成長率達到 9%。我們的計算表明，HCM 資產剝離可能會使收入成長和整體利潤率增加約 100 個基點。當我們進入明年時，我們應該如何考慮今年剩餘醫療保健業務的運作率？因此，如果將上半年的業績按年計算，這將是一項價值 1000 萬美元的業務。如果按年計算，第二季的營收將達到 700 萬美元。所以只是好奇剩下的醫療保健業務有多大。

So the remaining health care business is this piece of the health care segment that was focused on workflow software for providers specifically. We'll resegment this coming quarter, and it will probably not be large enough to stand on its own as a segment go forward. This growth profile should be fairly consistent with the rest of the remaining public sector business and the education business. It's revenue approximately $8 million for the fiscal year roughly.

因此，剩餘的醫療保健業務是醫療保健領域的一部分，專門針對提供者的工作流程軟體。我們將在下個季度重新進行細分，但其規模可能不足以成為一個獨立的細分市場。這一增長狀況應與其餘公共部門業務和教育業務相當一致。本財政年度其收入約為 800 萬美元。

Okay. And margin profile look more like public sector or look more like health care?

好的。利潤率狀況看起來更像公共部門還是更像醫療保健部門？

Margin profile, fairly consistent with the public sector. Not in the low 40% range.

利潤率狀況與公共部門相當一致。不在 40% 以下的範圍內。

Yes. No, that's great. And then just as we think about free cash flow conversion of RemainCo, obviously, this quarter, free cash or cash flow was muddied by a bunch of different stuff. But historically, you guys have talked about two-thirds of EBITDA from a free cash flow conversion perspective. Is that something similar we should expect for RemainCo or any kind of puts and takes there?

是的。不，那太好了。然後，當我們考慮 RemainCo 的自由現金流轉換時，顯然，本季的自由現金或現金流被一堆不同的因素弄得混亂。但從歷史上看，你們從自由現金流轉換的角度討論了三分之二的 EBITDA。對於留歐協議或任何形式的利弊，我們是否應該期待類似的結果？

Yes. We will remain kind of a little bit muddy because of taxes from these divestitures. But the go-forward free cash flow conversion in a steady state right where we are right now should be well in excess of two-thirds. And that's partially driven by the fact that not only will we not have interest expense for the remainder of this year, assuming no M&A activity, we'll have interest income.

是的。由於這些資產剝離產生的稅收，我們的情況仍會有點混亂。但在目前的穩定狀態下，未來的自由現金流轉換應該遠遠超過三分之二。部分原因是，假設沒有併購活動，我們今年剩餘時間不僅不會有利息支出，而且還會有利息收入。

So even though we're kind of increasing investment and the rate of CapEx and what we're developing on the software side, there's things cutting the other direction on that, too, between AI, offshoring, we're increasing our output without having to increase our cost substantially. And then, obviously, our balance sheet puts us in a position where our free cash flow conversion is excellent right now.

因此，儘管我們正在增加投資和資本支出率以及我們在軟體方面的開發，但在人工智慧、離岸外包之間也存在著相反的方向，我們正在增加產量而不必大幅增加成本。然後，顯然，我們的資產負債表使我們的自由現金流轉換處於當前良好的狀態。

Okay. And then last one for me, Geoff. Just any help on cadence 3Q, 4Q revs and margins. We have a lot of moving pieces here of RemainCo. So obviously, lots of detail on the updated guide and moving pieces there, but just curious if you can help us any with the 3Q, 4Q cadence for revenue and/or margins.

好的。接下來是我的最後一個問題，傑夫。僅提供有關節奏 3Q、4Q 轉速和幅度的任何幫助。我們這裡有很多關於 RemainCo 的活動部分。顯然，更新後的指南和移動部分有很多細節，但我只是好奇您是否可以幫助我們了解第三季、第四季的收入和/或利潤節奏。

Yes. So we noted that the Q3 revenue, that will be our low point should be about 48% of the remaining revenue and Q4 should be -- we expect about 52%. There's a little bit that could move in and out of those depending on when some of the one-time revenues hit. But given the drop in revenue in Q3 that we expect seasonally, that will also be the low point from a margin perspective, dip down into the mid-20s for that quarter before back up into the high 20s in Q4.

是的。因此，我們注意到，第三季度的收入將是我們的最低點，應該佔剩餘收入的 48% 左右，而第四季度的收入應該是 - 我們預計約為 52%。根據一次性收入的到來時間，這些收入可能會有少量進出。但考慮到我們預計第三季營收將出現季節性下降，從利潤率的角度來看，這也將是最低點，該季度將下降至 25% 左右，然後在第四季度回升至 25% 以上。

Peter Heckmann, D.A. Davidson.

彼得‧赫克曼，D.A.戴維森。

Hey, good morning and thanks for taking the questions and congrats on the sale of the RCM business. It looks like a nice deal and the RemainCo certainly is much more of a focused pure play. Just a couple of questions on fine-tuning, but the $64 million in cash at the end of this week, do you anticipate any additional taxes on either divestiture that still need to be paid? Or is that a good net number?

嘿，早上好，感謝您回答問題，並祝賀 RCM 業務的出售。這看起來是一筆不錯的交易，而 RemainCo 無疑更專注於純粹的業務。關於微調，我只想問幾個問題，但是本週末的 6400 萬美元現金，您是否預計任何一項資產剝離仍需支付額外的稅款？或者這是一個好的淨數字？

Yes, that's a net number. I think you keep coming up with.

是的，這是一個淨數字。我認為你會繼續想出辦法。

Okay. Great. And then is the small utility billing acquisition included in updated guidance?

好的。偉大的。那麼小型公用事業計費收購是否包含在更新的指南中？

It is, yes.

是的。

Okay. Great. And then go ahead.

好的。偉大的。然後繼續。

I mean when you're kind of modeling that, expect high end of our range and a high-margin business.

我的意思是，當你對此進行建模時，預計我們的產品範圍會處於高端，並且業務利潤率會很高。

Got it. Okay. That's helpful. So really, as John said, the divestiture really should be enhancing to organic growth rate and to margins and really create almost a pure play on the public sector and give you some really good dry powder to go after M&A. I guess in terms of that pipeline, you said it was quite strong. I guess, are you seeing deals -- should we expect deals kind of consistent with your historical practice with most of the deals being relatively smaller tuck-in deals and then potentially from time to time, something that's more on the midsize -- more of a midsized deal?

知道了。好的。這很有幫助。因此，正如約翰所說，資產剝離確實應該提高有機成長率和利潤率，並真正在公共部門創造幾乎純粹的運作，並為進行併購提供一些非常好的乾粉。我想就該管道而言，您說它非常強大。我想，您是否看到了交易——我們是否應該期待交易與您的歷史做法一致，即大多數交易都是相對較小的整合交易，然後可能時不時地會出現一些中等規模的交易——更多的是中型交易？

Yes, we looked at some larger ones. But that's really not our specialty. I think you'll see us do smaller tuck-ins, very fragmented. Our focus has become very, very focused -- I mean, just more rifle shot now, public sector, utilities, education. I'd like to say we'd do a larger one here or there, but I think you can count on more regular small deals in the next couple of years.

是的，我們看了一些較大的。但這確實不是我們的專長。我想你會看到我們做一些規模較小、非常分散的整合。我們的重點變得非常非常集中——我的意思是，現在更多的是步槍射擊，公共部門、公用事業、教育。我想說我們會在這裡或那裡做一個更大的交易，但我認為你可以指望在未來幾年內有更多定期的小交易。

That makes sense. Okay. And then just last question on Manitoba. I guess, is that taking -- I think you said $2.5 million, but taking some future revenue out of the guidance. Is that something that you feel like that's a formal decision? Or is that conservatism just based on some of the discussions you're having with the customer at this time?

這很有道理。好的。最後一個問題是關於曼尼托巴省的。我想，那是——我想你說的是 250 萬美元，但從指導中拿出一些未來收入。您是否認為這是一個正式的決定？或者這種保守態度只是基於您目前與客戶進行的一些討論？

Definitely conservatism based on discussions with the customer. That's something that has repeatedly been delayed, and there now appears to be a sequencing issue with the customer in terms of -- they have some other large enterprise projects, including an ERP one that they think needs to sequentially happen before we can kind of keep progressing on our end. Some of the discussions are exciting in the long run. And so I mean, we're still really happy and grateful to have that relationship with that customer.

根據與客戶的討論，絕對是保守的。這件事情已經被多次推遲，現在似乎與客戶之間出現了一個排序問題——他們還有一些其他大型企業項目，包括一個 ERP 項目，他們認為這些項目需要按順序進行，然後我們才能繼續前進。從長遠來看，有些討論是令人興奮的。所以我的意思是，我們仍然很高興並感激能與那位客戶建立這種關係。

We obviously wish that we could go faster, but we are in client service, and we have to kind of fall in line with what they think. And so the picture -- we thought we had kind of adequate conservatism when we were guiding last fall and everything was moving in that direction from a momentum perspective. And the picture just changed right now, unfortunately. So that's why we've made the choice we have.

我們顯然希望能夠加快速度，但我們是在為客戶服務，我們必須按照他們的想法去做。因此，我們認為，當我們在去年秋天進行指導時，我們已經有足夠的保守主義，而且從勢頭的角度來看，一切都朝著這個方向發展。不幸的是，現在情況已經改變了。這就是我們做出這個選擇的原因。

(Operator Instructions)

（操作員指示）

Alex Markgraff, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Alex Markgraff。

Geoff, just curious on the RemainCo ARR growth number that you gave, I think it was 9.6%. Any sort of compare you can give for us sequentially or otherwise, just to understand how that has trended?

傑夫，我只是對你給出的 RemainCo ARR 成長數字感到好奇，我認為是 9.6%。您能否按順序或其他方式為我們提供任何類型的比較，只是為了了解其趨勢如何？

Yes. So I think sequentially, it's down versus past quarter just slightly. Main component of that being the payments revenue. I have a much more optimistic view of payments revenue in the back half of this fiscal year. There's a few situations where we're on a pricing structure that is convenience fee, and we're enduring some higher interchange rates before our price increases went into effect.

是的。因此我認為，與上一季相比，環比略有下降。其中主要部分是支付收入。我對本財年下半年的支付收入持更樂觀的看法。在某些情況下，我們的定價結構是便利費，在我們的價格上漲生效之前，我們會承受一些更高的交換費率。

And so we expect the margin to tick up a little bit, and that to lead to a little bit better growth on the back half of the year on payments growth. So we expect that to be -- it was only 4% year-over-year this quarter and expect that to be up back in line with the broader company growth rate by the end of this fiscal year.

因此，我們預計利潤率會略有上升，這將導致下半年支付成長略有改善。因此，我們預計本季的同比增長僅為 4%，並預計到本財年末將與公司整體成長率保持一致。

And we still think that most quarters, the ARR growth is going to lead our normal organic growth. It's a little bit out of sync this quarter because we had such a great license quarter. But normally, that would be the leader. And you can see that, especially as the SaaS momentum kind of continues to grow and launch forward, that's just really going to keep carrying us and carry a further outsized pull on the overall picture.

我們仍然認為，大多數季度，ARR 成長將引領我們的正常有機成長。本季的情況有點不同步，因為我們有一個非常好的許可證季度。但通常情況下，那人應該是領導者。您可以看到，特別是隨著 SaaS 勢頭的持續增長和向前發展，它將繼續推動我們，並對整體形勢產生更大的拉動作用。

And then maybe one for maybe Greg or Paul, just on the AI products that are being introduced. Could you just speak to sort of the readiness for AI at your customer segment?

然後也許還有 Greg 或 Paul 的關於正在推出的人工智慧產品的內容。您能否談談您的客戶群對人工智慧的準備？

Yes, I can take that one, Greg. The interest level has been really high. I think part of the reason that the interest level has been so high is that our focus is on solving pain points and doing that in a very specific focused fashion. And so it's tangible for customers in the sense that they've struggled with something for a period of time, and they're having a hard time being responsive to it. And by having the company organized its domain expertise and the deliverables the way they do, we can get to market quicker on those and solve those pain points.

是的，我可以接受，格雷格。人們的興趣程度確實很高。我認為人們興趣如此之高的原因之一是我們專注於解決痛點，並且以非常具體的方式做到這一點。因此，對於客戶來說，這是切實的，因為他們在一段時間內一直在為某個問題而苦苦掙扎，並且很難做出回應。透過讓公司以他們的方式組織其領域專業知識和可交付成果，我們可以更快地將這些產品推向市場並解決這些痛點。

So the interest level has been high and the adoption -- indicators of adoption on that continue also to be high. And it's evident that there's a need there, and they're a little bit lost in the sense of really large enterprise things about how to employ that. And we developed platforms internally to support it, but we're -- but the application of -- it's really more of an applied AI technology, which makes it more tangible and easier for them to pull the trigger on, which is being well received.

因此，興趣程度一直很高，採用率——採用率指標也持續處於高位。顯然，那裡有需求，但他們對於如何在大型企業中利用這種需求還有些困惑。我們在內部開發了平台來支援它，但我們——但它的應用——實際上更像是一種應用人工智慧技術，這使得它更加切實，更容易被他們實施，並且受到了好評。

Ladies and gentlemen, this concludes our question-and-answer session. At this time, I'd like to turn the conference back over to Greg Daily for any closing remarks.

女士們、先生們，我們的問答環節到此結束。現在，我想將會議交還給 Greg Daily 來做結束語。

Again, thank you for your interest and support. We're excited about what -- our next couple of years. So stay tuned and reach out to us if you have any questions. Thank you.

再次感謝您的關注與支持。我們對未來幾年感到興奮。因此，請繼續關注，如有任何疑問，請與我們聯繫。謝謝。

This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

今天的電話會議到此結束。感謝大家參加今天的演講。現在您可以斷開線路，享受美好的一天。