I3 Verticals Inc (IIIV) 2025 Q3 法說會逐字稿

Good day, everyone, and welcome to i3 Verticals third quarter 2025 earnings conference call. Today's call is being recorded, and a replay will be available starting today through August 15. The number of the replay is 877-344-7529 and the code is 4426770. The replay may also be accessed for 30 days at the company's website. At this time, for opening remarks, I would like to turn the call over to Clay Whitson, Chief Strategy Officer. Please go ahead.

大家好，歡迎參加 i3 Verticals 2025 年第三季財報電話會議。今天的通話將會被錄音，從今天開始到 8 月 15 日都可以重播。重播號碼為877-344-7529，代碼為4426770。您也可以在該公司的網站上觀看 30 天的重播。現在，為了致開幕詞，我想將電話轉給首席策略長 Clay Whitson。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.

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。

This non-GAAP financial information should be considered by each individual in addition to, but not instead of, the GAAP financial statements.

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。

The 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.

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。

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 the important factors, among others, set forth in the company's earnings release and in reports that are filed or furnished to the SEC.

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 all of you on the call. Last quarter, we brought you some very big news, the divestiture of our healthcare revenue cycle management business. This means we have fully streamlined our company to fully focus on our public sector software business.

謝謝，克萊，各位電話裡的各位早安。上個季度，我們為您帶來了一些非常重大的消息，即剝離我們的醫療保健收入周期管理業務。這意味著我們已經完全精簡了公司，完全專注於公共部門軟體業務。

First, I want to acknowledge all of those who worked hard to make the healthcare divestiture a reality and a smooth transition. Divesting businesses is complicated, and we now have completed two of them in the last 12 months.

首先，我要感謝所有為實現醫療保健業務剝離和平穩過渡而努力工作的人們。剝離業務非常複雜，過去 12 個月我們已經完成了兩項業務的剝離。

But I'm proud to say both divestitures were well executed, and I appreciate all the people that have gone above and beyond to make these deals happen. i3 now is in a stronger position than ever. The mission in front of us to enable state and local governments and related agencies to serve their constituents in an effective and efficient manner.

但我自豪地說，這兩次資產剝離都執行得很好，我感謝所有為實現這些交易而付出努力的人。 i3 現在比以往任何時候都更強大。我們面臨的任務是使州和地方政府及相關機構能夠以有效和有效率的方式為其選民服務。

To that end, we boast a lineup of mission-critical enterprise software products. Our solution enables organizations within public sector to modernize their systems and to handle significant transaction volume.

為此，我們擁有一系列關鍵任務企業軟體產品。我們的解決方案使公共部門內的組織能夠實現其係統的現代化並處理大量交易。

Our growth rate -- our growth profile continues to improve. In the third quarter, revenue grew 12% and SaaS revenue grew at 24% compared to the prior year third quarter. Our balance sheet is strong with a net cash positive over $50 million and a revolving credit facility with capacity up to $400 million.

我們的成長率－我們的成長狀況持續改善。第三季度，營收成長12%，SaaS營收與去年同期相比成長24%。我們的資產負債表強勁，淨現金超過 5,000 萬美元，循環信貸額度高達 4 億美元。

We plan to continue our investment in government technology but continue a strict discipline in our M&A process. Investment in new product development is equally critical, and we are currently scaling up some of our people costs in preparation for revenue opportunities on our horizon.

我們計劃繼續投資政府技術，但在併購過程中繼續保持嚴格的紀律。對新產品開發的投資同樣重要，我們目前正在增加部分人力成本，為即將到來的創收機會做好準備。

We will begin to feel that those impact of those costs in the fourth quarter, but we believe these investments will bring investors a great return. I now will turn the call over to Geoff, and he will provide more detail on our financial performance. When he is finished, Rick will address our strategic approach to AI. And finally, Paul will discuss revenue. Then we'll open up the call for questions.

我們將在第四季度開始感受到這些成本的影響，但我們相信這些投資將為投資者帶來豐厚的回報。現在我將把電話轉給傑夫，他將提供有關我們財務表現的更多細節。演講結束後，Rick 將闡述我們對人工智慧的策略方針。最後，保羅將討論收入。然後我們將開始提問。

Thanks, Greg. The following pertains to the third quarter of fiscal year 2025, which is the quarter ended June 30, 2025. Please refer to the slide presentation titled Supplemental Information on our website for reference with this discussion.

謝謝，格雷格。以下內容涉及 2025 財年第三季度，即截至 2025 年 6 月 30 日的季度。請參閱我們網站上題為“補充資訊”的幻燈片演示，以供參考本次討論。

As a recap, last quarter, we announced the sale of our Healthcare RCM business, and this sale followed the sale of our Merchant Services business last September. We're now a pure-play software solutions provider for the public sector operating in a single segment.

回顧一下，上個季度，我們宣佈出售我們的醫療保健 RCM 業務，此次出售是繼去年 9 月出售我們的商家服務業務之後的又一舉措。我們現在是一家為公共部門提供單一業務的軟體解決方案提供商。

For financial reporting purposes, when you look at our earnings release or later our 10-Q, continuing operations and RemainCo refer to our results exclusive of the Merchant Services and Healthcare RCM businesses.

出於財務報告目的，當您查看我們的收益報告或稍後的 10-Q 時，持續經營和 RemainCo 指的是不包括商家服務和醫療保健 RCM 業務的業績。

RemainCo revenues for the third quarter of fiscal 2025 increased 12.4% to $51.9 million from $46.2 million for Q3 2024, reflecting organic growth of 8% and approximately $2 million of inorganic revenues from a permitting and licensing acquisition last August and a utility billing acquisition in April.

RemainCo 2025 財年第三季的營收從 2024 年第三季的 4,620 萬美元成長 12.4% 至 5,190 萬美元，其中有機成長 8%，以及去年 8 月許可和執照收購以及 4 月公用事業計費收購帶來的約 200 萬美元無機收入。

Annual recurring revenues for RemainCo increased 12% to $160.8 million for Q3 2025 compared to $143.6 million for Q3 2024. 77% of our revenues in the quarter came from recurring sources, driven by SaaS revenue growth of 24%, payments revenue growth of 11% and transaction-based revenue growth of 9%.

RemainCo 的年度經常性收入在 2025 年第三季成長 12%，達到 1.608 億美元，而 2024 年第三季為 1.436 億美元。本季我們 77% 的收入來自經常性收入來源，這得益於 SaaS 收入增長 24%、支付收入增長 11% 和基於交易的收入增長 9%。

Nonrecurring sales of software licenses for RemainCo increased to $1 million for Q3 2025 from just $400,000 in Q3 2024.

RemainCo 的軟體授權非經常性銷售額從 2024 年第三季的 40 萬美元增至 2025 年第三季的 100 萬美元。

RemainCo software and related services represented 70% of RemainCo revenues for Q3, with payments 25% and other 5%. Adjusted EBITDA for RemainCo increased 18%, outpacing revenues to $12.7 million for Q3 2025 from $10.8 million for Q3 2024.

RemainCo 軟體和相關服務佔 RemainCo 第三季營收的 70%，支付佔 25%，其他佔 5%。RemainCo 的調整後 EBITDA 成長了 18%，超過了收入，從 2024 年第三季的 1,080 萬美元增至 2025 年第三季的 1,270 萬美元。

Adjusted EBITDA as a percentage of revenues was 24.5%, an increase from 23.3% for Q3 2024, principally reflecting lower corporate expenses. Adjusted diluted earnings per share from continuing operations for the quarter was $0.23. Our balance sheet is strong and well positioned for the future.

調整後 EBITDA 佔營收的百分比為 24.5%，高於 2024 年第三季的 23.3%，主要反映了公司費用的降低。本季持續經營業務調整後每股攤薄收益為0.23美元。我們的資產負債表強勁，為未來發展做好了充分準備。

Following stock repurchases totalling $26 million during this quarter, we had $55 million of cash and no debt. We still have $400 million of borrowing capacity under our revolving credit facility with a 5x leverage constraint.

本季回購股票總額達 2,600 萬美元後，我們擁有 5,500 萬美元現金，且無債務。在 5 倍槓桿限制下，我們的循環信貸額度下仍有 4 億美元的借貸能力。

We intend to use the cash and any borrowings for future and opportunistic -- future acquisitions and opportunistic stock repurchases. The following reaffirms the guidance for RemainCo for FY 2025, which was introduced as part of our March quarter earnings release. The outlook does not include acquisitions that have not been announced or transaction-related costs.

我們打算將現金和任何借款用於未來的機會—未來收購和機會性股票回購。以下內容重申了 RemainCo 2025 財年的指導方針，該指導方針是作為我們 3 月季度收益報告的一部分推出的。該展望不包括尚未宣布的收購或交易相關成本。

Revenues, $207 million to $217 million; adjusted EBITDA, $55 million to $61 million; adjusted diluted earnings per share from continuing operations, $0.96 to $1.06. According to past practice, we will provide guidance for FY26 when we release our Q4 results. Last year was an exception to that practice we provided FY 2025 guidance along with our Q3 results, necessitated by the sale of our Merchant Services business. Over the next several years, we continue to expect high single-digit organic revenue growth for RemainCo.

營收：2.07億美元至2.17億美元；調整後息稅折舊攤提前利潤：5,500萬美元至6,100萬美元；持續經營業務調整後攤薄每股收益：0.96美元至1.06美元。根據以往慣例，我們將在發布第四季業績時提供2026財年的業績指引。去年是個例外，由於出售商家服務業務，我們在第三季業績中提供了 2025 財年指引。在接下來的幾年裡，我們繼續預計 RemainCo 的有機收入將實現高個位數成長。

We also continue to expect adjusted EBITDA margin improvement of 50 basis points to 100 basis points per year. During Q3, we increased our investment in talent for our Justice products in order to accelerate certain revenue opportunities. The increased costs will begin to be felt in Q4, while the revenue impact will likely appear in FY 2026.

我們也繼續預期調整後的 EBITDA 利潤率將每年提高 50 個基點至 100 個基點。在第三季度，我們增加了對 Justice 產品的人才投資，以加速某些收入機會。成本增加將在第四季開始顯現，而收入影響可能會在 2026 財年顯現。

From a seasonality standpoint, we originally expected our revenue distribution for the second half of FY 2025 to be 48% and 52% for Q3 and Q4, respectively. Our current expectation is slightly different, 49% for Q3 and 51% for Q4.

從季節性的角度來看，我們最初預計 2025 財年下半年第三季和第四季的收入分配分別為 48% 和 52%。我們目前的預期略有不同，第三季為 49%，第四季為 51%。

Nonrecurring software license sales and professional services were stronger than anticipated in Q3, but some of this was pulled forward from Q4. Although software license sales are less of a factor than in years past, they still represent the most variable line item to forecast and can distort seasonality in any given quarter.

第三季非經常性軟體許可證銷售和專業服務強於預期，但其中一些是從第四季度提前的。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。

A good example was the September quarter of FY 2024 when software license sales were high at $2.5 million. We do not currently expect that to repeat in the September quarter this year. I'll now turn the call over to Rick for comments on our efforts in AI and M&A.

一個很好的例子是 2024 財年 9 月季度，軟體許可證銷售額高達 250 萬美元。我們目前預計今年 9 月季度不會再出現這種情況。現在我將把電話轉給里克，請他評論我們在人工智慧和併購方面的努力。

Thank you, Jeff. Good morning, everyone. I want to take a few moments this morning to speak about our latest efforts around implementing AI within our organization.

謝謝你，傑夫。大家早安。今天早上我想花點時間談談我們在組織內實施人工智慧的最新努力。

And then I'll turn the call over, call for updates. During this past year, our engineers have worked to meet our public customers' needs to better support their constituents relative to certain AI initiatives. Part of this work has been focused on using our expertise to solve domain-specific product needs where AI implementation and technology can rapidly improve user outcomes.

然後我會轉接電話，詢問最新狀況。在過去的一年裡，我們的工程師一直致力於滿足公共客戶的需求，以便更好地支持他們的選民有關某些人工智慧計畫。這項工作的一部分重點是利用我們的專業知識來解決特定領域的產品需求，其中人工智慧實施和技術可以快速改善使用者成果。

This work has focused on areas that are impactful to our business and to our customers. We focused our initial efforts on four main areas, enhanced product features, more efficient service, streamlined product development, and comprehensive testing.

這項工作主要集中在對我們的業務和客戶有影響的領域。我們最初的努力主要集中在四個主要領域：增強產品功能、更有效率的服務、簡化產品開發和全面測試。

Regarding product features, we've added enhancements to help our user data. Our agentic AI tool, which leverages the retrieval augmented generation algorithm, uses natural language processing and generative AI to automatically analyze and extract data from documents.

關於產品功能，我們增加了增強功能來幫助我們的用戶資料。我們的代理 AI 工具利用檢索增強生成演算法，使用自然語言處理和產生 AI 自動分析和提取文件中的資料。

Traditionally, public entities have depended on individuals to manually review, categorize, and find data within documents. Our tool now performs these tasks for them, so they can dedicate more time to customer service and crucial decision making based on the extracted data.

傳統上，公共實體依賴個人手動審查、分類和查找文件中的資料。我們的工具現在可以為他們執行這些任務，因此他們可以將更多時間投入到客戶服務和基於提取的數據做出關鍵決策。

We have successfully implemented this tool in our land records products, resulting in significant user time savings and initial incremental revenue. We're now working on expanding its use to our transportation, justice tech, and ERP products.

我們已成功在我們的土地記錄產品中實施了該工具，從而為用戶節省了大量時間並增加了初始增量收入。我們現在正致力於將其用途擴展到我們的交通、司法技術和 ERP 產品。

In support, we've recognized the value of guiding software users to quick answers for questions about using i3technology or receiving product support. As such, we have started by implementing AI chatbots into Ellie Clark and education solutions. We'll continue rolling these out in our transportation, ERP and Justice tech solutions to accelerate customer productivity and drive down support costs.

在支援方面，我們認識到引導軟體使用者快速回答有關使用 i3technology 或獲得產品支援的問題的價值。因此，我們已開始將 AI 聊天機器人應用到 Ellie Clark 和教育解決方案中。我們將繼續在我們的運輸、ERP 和司法技術解決方案中推廣這些技術，以加快客戶生產力並降低支援成本。

Internally, we have begun using AI tools to streamline our product development and enhance our productivity. For development, we've integrated GitHub, co-pilot, Builder IO and Cursor into our work streams to speed up our development process.

在內部，我們已經開始使用人工智慧工具來簡化我們的產品開發並提高我們的生產力。對於開發，我們將 GitHub、co-pilot、Builder IO 和 Cursor 整合到我們的工作流程中，以加快我們的開發流程。

We then utilize code Rabbit and Zephyr for code review and testing to ensure quality of our solutions in the full product development life cycle.

然後，我們利用程式碼 Rabbit 和 Zephyr 進行程式碼審查和測試，以確保整個產品開發生命週期中解決方案的品質。

Well, it depends on the team and the code. Our engineering team have found 30% to 50% more efficiency in their dev process when incorporating AI.

嗯，這取決於團隊和程式碼。我們的工程團隊發現，融入人工智慧後，開發流程的效率提高了 30% 到 50%。

We will continue to integrate targeted AI solutions for our users to make our solutions more effective for our customers over time.

我們將繼續為用戶整合有針對性的人工智慧解決方案，以便我們的解決方案能夠隨著時間的推移為客戶帶來更有效的效果。

On the M&A front, we are continuing to speak with various parties relative to potential acquisitions, and our acquisition pipeline continues to be full with our focus on acquisitions and our public sector vertical. I'll now turn the call over to Paul for final comments.

在併購方面，我們正繼續與各方就潛在收購進行談判，我們的收購管道仍然充足，我們主要專注於收購和公共部門垂直領域。現在我將把電話轉給保羅，請他發表最後的評論。

Thank you, Rick. i3 Verticals alignment under a single brand and mission as an integrated software solutions provider has been achieved. With our focus in the public sector, we are seeing positive impact in sales results in our strategic markets of transportation, Justice Tech and public safety, public administration, ERP, education and utilities.

謝謝你，里克。 i3 Verticals 在單一品牌和使命下作為綜合軟體解決方案提供者的協調已經實現。由於我們專注於公共部門，我們在交通、司法技術和公共安全、公共管理、ERP、教育和公用事業等策略市場的銷售表現正在產生積極影響。

Sales activity remains strong across our markets. By maintaining a focused approach within these domains, we're able to deliver deeply integrated solutions that meet an array of customer needs and use cases.

我們整個市場的銷售活動依然強勁。透過在這些領域保持專注的方法，我們能夠提供滿足一系列客戶需求和用例的深度整合解決方案。

Market-specific strategy has produced a well-balanced mix of contracts across our portfolio with contracts increasing as market conditions and pipeline remains strong. This is evidenced by our new from new win rates increasing and our sales team's ability to ensure margin expansion continues as new contracts have price escalation provisions.

特定市場策略在我們的投資組合中形成了均衡的合約組合，隨著市場狀況和管道保持強勁，合約數量也在增加。這體現在我們新合約中標率的不斷提高，以及我們的銷售團隊有能力確保利潤率在新合約包含價格上漲條款的情況下繼續擴大。

Our solutions in the Justice Tech and public safety market are resonating with clients. On our Q2 call, I mentioned that we are pursuing a statewide court system. I'm pleased to report that we are now in the final contract negotiations for that statewide solution.

我們在司法科技和公共安全市場的解決方案引起了客戶的共鳴。在我們的第二季電話會議上，我提到我們正在推行全州的司法系統。我很高興地報告，我們現在正處於全州解決方案的最後合約談判中。

We also opened Ohio as a target Justice Tech territory, and we are seeing enhanced adoption across the state with both core Justice Tech products as well as ancillary products and services. Our transportation group is currently rolling out motor vehicle registrations via our i3 kiosk solution for a large southern state, where we have strong multi-market solution presence.

我們也將俄亥俄州作為司法科技的目標區域，我們看到整個州對核心司法科技產品以及輔助產品和服務的採用率都在提高。我們的運輸集團目前正在透過我們的 i3 自助服務終端解決方案為南部一個大州推出機動車登記服務，我們在該州擁有強大的多市場解決方案影響力。

In our public administration and ERP market, i3 is currently deploying a licensing and permitting solution for a large Western Fish and Wildlife agency. Large state agency clients like Fish and Wildlife and offices and consumer affairs are target markets for i3 licensing and permitting with high -- with our modern, highly configurable technology.

在我們的公共管理和 ERP 市場，i3 目前正在為一家大型西部魚類和野生動物機構部署許可和許可解決方案。大型政府機構客戶（如魚類和野生動物管理局、辦公室和消費者事務部）是 i3 許可和許可證的目標市場，我們採用先進的、高度可配置的技術。

The Enterprise utility group continues to gain share with another i3 ePortal and eIVR solution win with the recent addition of Honolulu, Department of Environmental Services.

企業公用事業集團最近贏得了檀香山環境服務部門的另一個 i3 ePortal 和 eIVR 解決方案，繼續擴大市場份額。

Education continues to show strong growth as we opened this school year in four new states: Idaho, North Carolina, South Carolina and Delaware. We are also showing strong market share growth in Texas and Florida. Having successfully coalesced around our single vertical, we have advanced levels of engagement with national consulting firms and selection companies. Our focus is i3, our core markets and associated product sets. This concludes my comments, Ranju.

隨著我們今年在愛達荷州、北卡羅來納州、南卡羅來納州和特拉華州四個新州開設學區，教育繼續呈現強勁增長。我們在德克薩斯州和佛羅裡達州的市場份額也呈現強勁增長。在成功整合我們的單一垂直領域後，我們與國家顧問公司和選擇公司建立了更高層次的合作關係。我們的重點是 i3、我們的核心市場和相關產品系列。我的評論到此結束，Ranju。

At this time, we will open the call for Q&A, please.

現在，我們將開始問答環節。

(Operator Instructions) John Davis, Raymond James.

（操作員指示）約翰·戴維斯、雷蒙德·詹姆斯。

Hey, good morning, guys. Jeff, just to start out on the guide, obviously, you didn't tighten the range. So pretty wide range of outcomes for the fourth quarter. Is the midpoint, the right way to think about, the implied 4Q guide?

嘿，大家早安。傑夫，剛開始看指南，顯然你沒有縮小範圍。因此，第四季的結果範圍相當廣泛。中點是隱含的 4Q 指南的正確思考方式嗎？

Yeah, that's exactly right. Just keep focused on the midpoint since that wasn't something we were trying to move up or down, we just went with reiterate.

是的，完全正確。只需將注意力集中在中點上，因為這不是我們試圖提高或降低的東西，我們只是重申。

Okay, so, I think that would imply organic revenue growth will decelerate, 300 basis points or so, but I think lay mentioned on the call that there was, some license comp in the fourth quarter. It looks like, $2.5 million, you did a million. So essentially the entire deceleration organic growth, the lapping of that strong license quarter, anything else, to call out, as we think about four key revenues.

好的，所以，我認為這意味著有機收入成長將減速，300 個基點左右，但我認為萊伊在電話會議上提到，第四季度有一些許可證補償。看起來，250 萬美元，你賺了 100 萬美元。因此，當我們考慮四個關鍵收入時，基本上整個減速的有機增長，強勁的許可季度的重疊，以及其他任何事情。

I think that's exactly right. It's really comes down to that license, in the past quarter, you remember $2 million of that was related to our utilities deal that we have underway. It's kind of the first slug that. So there's nothing like that that will recur this Q4 unless something shows up on our doorstep that we're not aware of right now, which can happen. I think, it's maybe best when you're thinking about the long-term organic growth dial in on the ARR and, that's been above 10% for the whole fiscal year, we expect to continue in that range in Q4.

我認為這是完全正確的。這實際上歸結於那個許可證，你記得在上個季度，其中 200 萬美元與我們正在進行的公用事業交易有關。這是第一隻蛞蝓。因此，除非我們家門口出現了我們現在不知道的事情，否則第四季度不會再發生類似的事情，而這種情況是可能發生的。我認為，當你考慮長期有機成長時，最好將 ARR 撥入其中，整個財年的 ARR 一直高於 10%，我們預計第四季將繼續保持這個範圍。

Okay, well, that's helpful. I wanted to talk about the justice tech incremental investments here. It looks like, implied Q4 margins are still in kind of that high 20s range. So I assume it was those investments were contemplated, in the guide last quarter, but really just want to dive in a little bit more. What's the opportunity you see, maybe the size or give us kind of the magnitude incremental investments and what the revenue opportunity that you see in 2016 and beyond, from these investments.

好的，這很有幫助。我想在這裡談談司法技術增量投資。看起來，隱含的第四季利潤率仍然在 20% 左右的範圍內。因此，我認為這些投資是在上個季度的指南中考慮過的，但實際上只是想更深入地了解一下。您看到了哪些機會，增量投資的規模或數量，以及您認為 2016 年及以後這些投資能帶來哪些收入機會。

So yeah, I think we want to call that out just because it is going to start compressing margin a little bit in Q4. In the long run we don't see this as something that's going to drag margins significantly down because it is something we're doing with revenue in mind.

是的，我認為我們想指出這一點只是因為它將在第四季度開始稍微壓縮利潤率。從長遠來看，我們認為這不會大幅拉低利潤率，因為我們這樣做是為了增加收入。

As far as like what that revenue is in '26 and beyond. We're getting a lot of great traction. I think Paul mentioned this how well the justice tech space is, what we have in our products and our opportunities are resonating with customers. We're competing on some bigger deals statewide things, and we'll get into more detail on that once we're kind of to a point where we can share more, but at the moment, I think it's worth for the market can understand that.

至於 26 年及以後的收入是多少。我們獲得了很大的進展。我認為保羅提到了司法技術領域的良好發展，我們的產品和機會得到了客戶的共鳴。我們正在就一些全州範圍內的大型交易展開競爭，一旦我們能夠分享更多信息，我們就會更詳細地討論這個問題，但目前，我認為市場能夠理解這一點。

The Justice Tech vertical is really doing well. That's a place where our thesis is really playing out. As far as like whether those were contemplated in the prior guide, I think it is worth pointing out.

司法科技垂直領域確實表現良好。這就是我們的論文真正發揮作用的地方。至於之前的指南是否考慮到了這些，我認為值得指出。

That this choice to accelerate the investment is a more recent choice and in the, last quarter or so, it's, That is something that, wasn't contemplated I guess at the beginning of the year, it's responsive to opportunities that have come up during the year, is the way I would put that.

加速投資的選擇是最近的選擇，大約在上個季度，這是年初沒有考慮到的事情，它是對今年出現的機會的回應，這就是我的說法。

And to quantify JD, it might be about $700,000 in Q4 of incremental expense.

而量化京東，第四季的增量支出可能約為 70 萬美元。

Okay. No, that's super helpful. And then one last one maybe for Greg. We just take a step back, you've sold the merchant business, you sold the RCM business. You kind of have the business you want, pure-play public sector software, highlighted ARR growth, strong, continue to expect high single-digit organic revenue growth.

好的。不，這非常有幫助。最後一個也許是給格雷格的。我們退一步來說，你已經出售了商家業務，你出售了 RCM 業務。您擁有想要的業務，純粹的公共部門軟體，突出的 ARR 成長，強勁，繼續預期高個位數的有機收入成長。

But what pockets of the business are you really excited about? Is it Justice Tech with incremental investments there? Is it transportation? What do you really think is going to drive that growth? And where do you think the most opportunity is over the next 12 to 18 months?

但是，您真正感興趣的是哪些業務領域呢？司法科技是否在那裡進行了增量投資？是交通運輸嗎？您認為真正推動這一成長的是什麼？您認為未來 12 到 18 個月內最大的機會在哪裡？

Great question. I think just about all of our sub verticals are firing on all cylinders. Education is incredible, consistent. People who want our solution. Utilities could be a home run.

好問題。我認為我們所有的子垂直產業都在全力運作。教育令人難以置信，始終如一。想要我們解決方案的人。公用事業可能會取得全壘打。

We've had a lot of traction, a lot of success. We've got a fantastic leader Transportation could be huge. We are -- I'm ready to start talking about '26. '24 was a transition year, '25 has been okay, but I think '26 will be spectacular. But I feel good about all of our verticals.

我們取得了很大的進展和成功。我們有一位出色的領導者，交通運輸業可能發揮巨大作用。我們——我準備開始談論 26 年了。 24 年是個過渡年，25 年還不錯，但我認為 26 年將會非常精彩。但我對我們所有的垂直行業都感到滿意。

None of them are lagging. The transition in the last year has been phenomenal. And our salespeople have kicked it into another gear, and we're seeing wins on a daily basis.

他們中沒有一個人落後。去年的轉變是驚人的。我們的銷售人員已將工作推向新的高度，我們每天都能看到成效。

Thank, appreciate it. Thanks guys.

謝謝，感激不盡。謝謝大家。

Peter Heckmann, D.A. Davidson & Co.

彼得‧赫克曼，D.A.戴維森公司

Hey good morning everyone, thanks for taking the question. In terms of how you're going after some of these deals, I guess, how often are you going out in partnership with either a software integration firm, professional services firm or partnering with independent software company to kind of get these deals? I mean how much coordination does that require, especially as you go after the statewide deals?

大家早安，謝謝你們回答這個問題。關於您如何達成這些交易，我想，您多久會與軟體整合公司、專業服務公司或獨立軟體公司合作來達成這些交易？我的意思是這需要多少協調，特別是在你追求全州範圍的交易時？

That's a great question. We're pretty uniquely qualified that we can handle most aspects of deals in terms of the breadth of product we have as well as integration and implementation capabilities. So it's maybe times out of 5times or one time out of 6times we'll have an integration partner with us. And those tend to be on enterprise level deals and a little bit more often in the transportation sector than in other arenas, but it's not the norm for us.

這是一個很好的問題。就我們擁有的產品廣度以及整合和實施能力而言，我們具有相當獨特的資格來處理交易的大多數方面。因此，我們可能每 5 次或每 6 次就會有一個整合合作夥伴。這些交易往往是企業層面的交易，在運輸領域的交易比在其他領域更常見，但這對我們來說並不常見。

Okay and then how about on the front end are you seeing more procurement consultants, kind of act as a gatekeeper for some of these deals like gatekeeper or potentially recommendation partner any uptick on that side.

好的，那麼在前端，您是否看到更多的採購顧問，充當某些交易的守門人，例如守門人或潛在的推薦合作夥伴，從​​而帶來任何上漲。

Not really. They tend to follow kind of historic patterns. That's a little more common in the utility space, where there's a more evolved group who focus on different arenas in utility. That's staying steady there, and we have great historic relationships with those folks. We'll occasionally see it in justice on statewide programs.

並不真地。他們傾向於遵循某種歷史模式。這在實用領域更為常見，那裡有一個更進化的群體，專注於實用領域的不同領域。這一情況一直保持穩定，而且我們與這些人有著良好的歷史關係。我們偶爾會在州級司法計畫中看到這一點。

We don't see it in education at all. We don't see it in ERP. And again, it's kind of -- it's not uncommon, but it's not also the norm. And maybe instead of [1] of every [5 or 6], we see that out of [1 out of 4.5 or 5].

我們在教育中根本看不到這一點。我們在 ERP 中沒有看到它。再說一次，這並不罕見，但也不是常態。也許不是每 [5 或 6] 人就有 [1] 人，而是[4.5 分或 5 分中得 1 分]。

I think the key point is probably our relationship that our salespeople have with the state, the municipality. And we're constantly in touch with them. We see them at conferences; we visit at office. Yes.

我認為關鍵點可能是我們的銷售人員與州、市政府之間的關係。我們一直與他們保持聯繫。我們在會議上見到他們；我們在辦公室拜訪他們。是的。

To Greg's point, we have, in many cases, multi-decade long-term relationships with folks, and we attend over 300 conferences a year across the spectrum of our engagement of what we do, which is certainly a nice touch point to get everybody together, but there are a lot of incremental on-site in-person visits that are happening.

正如格雷格所說，在許多情況下，我們與人們有著數十年的長期關係，我們每年參加超過 300 場涉及我們各個領域的會議，這當然是一個很好的接觸點，可以讓大家聚在一起，但也有很多正在進行的現場面對面訪問。

The, evolve, the evolving of kind of national consulting firms or selection companies, it's there, it's, prevalent. Our engagement with that is really picking up because the world didn't understand. And us prior to i3coming under one brand, and as we coalesced under one brand and one comprehensive group of products organized by market, we felt an obligation to continue to inform that segment of the world as well as our market as well as our customer base.

國家諮詢公司或選拔公司的發展，已經存在，並且很普遍。由於世界尚未理解，我們對此的參與度正在不斷提高。在 i3 歸入一個品牌之前，當我們合併到一個品牌和一個按市場組織的綜合產品組時，我們感到有義務繼續向世界這一部分以及我們的市場和客戶群提供資訊。

Oh well, that's good to hear. All right, I appreciate it.

哦，好吧，聽到這個消息真好。好的，我很感激。

Alex Markgraff, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Alex Markgraff。

Hey everyone, thanks for taking my question. Geoff, maybe just to follow up on the. On the scaling of people and the cost associated with that, I know we're not guiding to '26, but just based on your comments on sort of annual margin expansion of 5 basis points to 100 basis points,

大家好，感謝你們回答我的問題。傑夫，也許只是為了跟進。關於人員規模和相關成本，我知道我們不會指導 26 年，但僅根據您對年度利潤率擴大 5 個基點至 100 個基點的評論，

I mean with the scaling, should we be orienting around the lower end of that range in the near term or any color you could offer there just in terms of the magnitude and in '26.

我的意思是，透過縮放，我們是否應該在短期內圍繞該範圍的下限進行定位，或者您可以就幅度和 26 年提供任何顏色。

When we give our FY26 guide, we'll obviously have a little sharper pencil on that, but at the moment I wouldn't move you off the 50 basis points to 100 basis points. The people investment should be offset by revenue growth.

當我們給出 FY26 指南時，我們顯然會對此有更清晰的了解，但目前我不會將您從 50 個基點移到 100 個基點。人力投資應透過收入成長來抵消。

Okay, and then is that the people investment, is it right to think those are sales folks or is there something else to consider there?

好的，那麼這就是人力投資，認為這些人是銷售人員是否正確，還是有其他需要考慮的因素？

So, we are investing, on the margins on sales, on sale on our sales team, we're always looking for to add good people there, but the investment we're kind of referring to here is more in the, development QA and what we need to, bring great products to the market.

因此，我們在銷售利潤率上、在銷售團隊的銷售上進行投資，我們一直在尋求招募優秀人才，但我們在這裡所指的投資更多的是在開發品質保證以及我們需要將優秀的產品推向市場。

Okay, understood. Thank you.

好的，明白了。謝謝。

Thank you. This concludes our question and answer session. I would like to turn the conference back over to Greg Daily for closing remarks.

謝謝。我們的問答環節到此結束。我想將會議交還給 Greg Daily 最後發言。

Thank you for your interest. I'd like to thank our team. They're doing a great job, especially a shout out to our salespeople. They're kind of rocking along. I love those guys, but we'll talk to you next quarter.

感謝您的關注。我要感謝我們的團隊。他們做得非常出色，特別要感謝我們的銷售人員。他們有點搖擺不定。我喜歡那些傢伙，但我們下個季度再跟你聊。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。