Instructure Holdings Inc (INST) 2023 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Instructure's Second Quarter 2023 Earnings Call. (Operator Instructions) Please be advised that this conference is being recorded.

女士們、先生們，感謝你們的支持，歡迎參加 Instruct 的 2023 年第二季財報電話會議。 （操作員說明）請注意，本次會議正在錄製中。

I would now like to turn the conference over to your first speaker, David Banks, Vice President, Investor Relations. David, please go ahead.

現在我想將會議交給第一位發言人、投資者關係副總裁 David Banks。大衛，請繼續。

Thank you, Josh. Good afternoon, and welcome to Instructure's Q2 '23 Earnings Conference Call. We will discuss results announced in our press release issued after market close today. With me are Instructure's Chief Executive Officer, Steve Daly; and Chief Financial Officer, Dale Bowen.

謝謝你，喬許。下午好，歡迎參加 Instruct '23 年第 2 季財報電話會議。我們將討論今天收盤後發布的新聞稿中宣布的結果。和我在一起的還有 Instruct 的執行長 Steve Daly；財務長戴爾鮑文 (Dale Bowen)。

Before we begin, I'd like to remind you that today's conference call will include forward-looking statements based on the company's current expectations. These forward-looking statements are subject to a number of significant risks and uncertainties, and our results may differ materially.

在開始之前，我想提醒您，今天的電話會議將包括基於公司當前預期的前瞻性陳述。這些前瞻性陳述受到許多重大風險和不確定性的影響，我們的結果可能會有重大差異。

For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release and other reports and filings we make from time to time with the Securities and Exchange Commission. All of our statements are made as of today, July 31, based on information available to us today. And except as required by law, we assume no obligation to update any such statements.

有關可能影響我們未來財務表現和業務的因素的討論，請參閱今天的收益發布中的披露以及我們不時向美國證券交易委員會提交的其他報告和文件。我們的所有聲明均是根據今天（7 月 31 日）今天掌握的資訊作出的。除非法律要求，我們不承擔更新任何此類聲明的義務。

During the call, we will also refer to both GAAP and non-GAAP financial measures. You can find the reconciliation of our GAAP to non-GAAP measures included in our press release, which is posted in the Investor Relations section of our website.

在電話會議中，我們也將參考公認會計原則和非公認會計原則財務指標。您可以在我們網站的投資者關係部分發布的新聞稿中找到我們的 GAAP 與非 GAAP 措施的調整表。

With that, let me turn the call over to Steve.

接下來，讓我把電話轉給史蒂夫。

Thanks, David. I'm delighted to welcome everyone to Instructure's Q2 2023 Earnings Call. During today's call, Dale and I will share the details of our Q2 results and provide guidance for Q3 and the full year 2023.

謝謝，大衛。我很高興歡迎大家參加 Instruct 的 2023 年第二季財報電話會議。在今天的電話會議中，戴爾和我將分享我們第二季業績的詳細信息，並為第三季和 2023 年全年提供指導。

Q2 results exceeded our previously committed guidance range for our revenue and adjusted EBITDA, fueled by our efficient go-to-market organization and unyielding dedication to customer satisfaction. Q2 revenue was $131.1 million, up 14.4% year-over-year, impacted by a constant currency headwind of 160 basis points. Q2 adjusted EBITDA grew 29% year-over-year to $51.3 million, driving a 39.1% margin. We believe the strength of our Q2 performance demonstrates the effectiveness of our business model.

在我們高效的上市組織和對客戶滿意度的不懈奉獻的推動下，第二季度的業績超出了我們先前承諾的收入和調整後 EBITDA 的指導範圍。受 160 個基點持續匯率逆風影響，第二季營收為 1.311 億美元，年增 14.4%。第二季調整後 EBITDA 年增 29% 至 5,130 萬美元，帶動利潤率達 39.1%。我們相信第二季的強勁業績證明了我們業務模式的有效性。

Before we delve into highlights from the second quarter, I want to provide some takeaways from our InstructureCon conference that took place in Denver a few days ago, the first such event we've held in person since 2019. We had nearly 2,000 customers, over 100 partners and more than 2,300 attendees at this sold-out event. It was gratifying to find the Instructure community is as vibrant as ever.

在我們深入研究第二季度的亮點之前，我想提供幾天前在丹佛舉行的 InstructorCon 會議的一些要點，這是我們自 2019 年以來首次親自舉辦此類活動。我們有近 2,000 名客戶，超過此次活動共有100 家合作夥伴和2,300 多名與會者參加，場場門票已售罄。令人欣慰的是，Instruction 社區一如既往地充滿活力。

We unveiled enhanced and expanded Instructure Learning Platform innovation centered around core teaching and learning, advanced analytics, lifelong learning and platform integration. We believe these new solutions will save educators time, personalize learning experiences for students and simplify complex tasks for administrators. We also previewed some of our AI strategies and are excited by the feedback from our customers as we move forward with that.

我們推出了增強和擴展的 Instruct 學習平台創新，以核心教學、高級分析、終身學習和平台集成為中心。我們相信這些新的解決方案將節省教育工作者的時間，為學生提供個人化的學習體驗，並簡化管理員的複雜任務。我們也預覽了一些人工智慧策略，並在我們繼續推進過程中對客戶的回饋感到興奮。

Now I will share highlights from the quarter, including 4 key drivers: strong new logo sales, cross-sell uplift, the power of our platform strategy and how we are leveraging our business model. First, our new logo win rates remain strong across all of our markets. Success there is driven by our ability to solve real-world challenges across the teaching and learning landscape.

現在，我將分享本季的亮點，包括 4 個關鍵驅動因素：強勁的新商標銷售、交叉銷售提升、我們平台策略的力量以及我們如何利用我們的業務模式。首先，我們的新商標在所有市場上的獲勝率仍然很高。那裡的成功取決於我們解決教學領域現實挑戰的能力。

Our focus on lifelong learning and vocational training resulted in a win with Duke University. Duke made a significant investment in the entire Instructure Learning Platform with the implementations of Canvas LMS, Impact, Canvas Studio and Canvas Credentials. Duke's Office of Teaching and Learning spearheaded this transition to bolster their ambition of being a frontrunner in lifelong nontraditional education. We now serve all of the top 10 universities in the United States with Canvas.

我們對終身學習和職業培訓的關注導致了杜克大學的勝利。杜克大學對整個 Instruct 學習平台進行了大量投資，實施了 Canvas LMS、Impact、Canvas Studio 和 Canvas Credentials。杜克大學教學辦公室率先進行了這一轉變，以增強他們成為終身非傳統教育領跑者的雄心壯志。我們現在為美國所有排名前 10 的大學提供 Canvas 服務。

Also in North American higher ed, we had a significant win with Ohio University. After 20-plus years on a legacy provider, OU chose Canvas for a 10-year contract, one, because of the strength of the Canvas community, our presence in other flagship institutions in Ohio, our overall market leadership and our ability to deliver a value-based comprehensive solution.

同樣在北美高等教育中，我們與俄亥俄大學取得了重大勝利。在與傳統提供者合作了20 多年後，OU 選擇Canvas 簽訂了一份10 年期合同，其中之一是因為Canvas 社區的實力、我們在俄亥俄州其他旗艦機構的影響力、我們的整體市場領導地位以及我們提供優質服務的能力。基於價值的綜合解決方案。

In North American K-12, our platform continues to support our market-leading position. The green shoots we mentioned during our last quarterly call resulted in strong bookings in Q2 as K-12 decision-makers continue to recognize our products as mission critical. Cincinnati Public Schools joined the Canvas universe in the quarter. A long-time user of a competitive solution, Cincinnati ran a lengthy process, seeking feedback from parents, teachers and students. Their strategy was to implement a new LMS that would deliver best-in-breed results. Canvas was far away the winner as our LMS clearly matched the district's innovative approach to education. Our reputation for consistent uptime, [big] feature releases, unmatched service and support and unrivaled student experience allowed them to confidently displace the incumbent provider with Canvas.

在北美 K-12，我們的平台繼續支持我們的市場領先地位。我們在上一季電話會議中提到的新芽導致了第二季度的強勁預訂，因為 K-12 決策者繼續認識到我們的產品是關鍵任務。辛辛那提公立學校在本季度加入了 Canvas 領域。作為競爭性解決方案的長期用戶，辛辛那提經歷了漫長的過程，尋求家長、教師和學生的回饋。他們的策略是實施新的學習管理系統，以提供同類最佳的結果。 Canvas 遙遙領先，因為我們的 LMS 明顯符合該學區的創新教育方法。我們在一致的正常運行時間、[大]功能發布、無與倫比的服務和支援以及無與倫比的學生體驗方面享有盛譽，使他們能夠自信地用 Canvas 取代現有的提供者。

Among the new international deals in Q2, we secured a direct win with University of Continuing Education Krems in Austria, the leading public university for continuing education in Europe. Krems serves a changing demographic with an increasing average retirement age and a skill gap between the workforce and graduates. They saw Canvas as a way to address the needs of their student population, allowing them to serve both traditional and nontraditional students. Similar to other institutions in Europe, Krems has strict privacy standards that must be met by their partners. Our global privacy strategy, which centers on safeguarding student data and reducing our customers' regulatory burden, allows Krems to comply with rigorous privacy standards in the region. It's gratifying to see our customers responding positively to our unwavering dedication to privacy.

在第二季的新國際交易中，我們直接贏得了歐洲領先的繼續教育公立大學奧地利克雷姆斯繼續教育大學。克雷姆斯服務於不斷變化的人口結構，平均退休年齡不斷提高，勞動力和畢業生之間的技能差距也越來越大。他們將 Canvas 視為滿足學生群體需求的一種方式，使他們能夠為傳統和非傳統學生提供服務。與歐洲其他機構類似，克雷姆斯有嚴格的隱私標準，其合作夥伴必須遵守這些標準。我們的全球隱私策略以保護學生資料和減輕客戶的監管負擔為中心，使 Krems 能夠遵守該地區嚴格的隱私標準。很高興看到我們的客戶對我們對隱私堅定不移的奉獻做出了積極回應。

Second, we continue to drive growth with existing customers, both through cross-sell and upsell, where we see $1 billion-plus opportunity. Internationally, we secured a meaningful upsell with [Global Pro], one of the largest registered training organization, or RTOs, in Europe, making them our largest customer by user member in Europe. This also demonstrates our ability to serve the needs of nontraditional learning institutions.

其次，我們繼續透過交叉銷售和追加銷售來推動現有客戶的成長，我們看到了超過 10 億美元的機會。在國際上，我們與歐洲最大的註冊培訓組織 (RTO) 之一的 [Global Pro] 達成了有意義的追加銷售，使他們成為我們在歐洲按用戶成員計算的最大客戶。這也顯示我們有能力滿足非傳統學習機構的需求。

Cross-sell is fueled by deals such as Charlotte-Mecklenburg Schools, a long-time Canvas and MasteryConnect customer. After a multi-vendor evaluation, the district chose our assessment content because of the rigor and accuracy of the solution that gives better insight in student growth.

交叉銷售受到夏洛特梅克倫堡學校（Charlotte-Mecklenburg Schools）等交易的推動，該學校是 Canvas 和 MasteryConnect 的長期客戶。經過多供應商評估後，學區選擇了我們的評估內容，因為解決方案的嚴謹性和準確性可以更好地洞察學生的成長。

This further validates our platform strategy and the strength of our suite of products. This platform strategy, our third key driver, drives on innovation and partnerships. During InstructureCon, Shiren Vijiasingam, our Chief Product Officer, provided a glimpse into many new product initiatives designed to shift the education paradigm, enhance teacher efficiency and posture student success.

這進一步驗證了我們的平台策略和我們產品套件的實力。該平台策略是我們的第三個關鍵驅動力，推動創新和合作夥伴關係。在 InstructorCon 期間，我們的首席產品長 Shiren Vijiasingam 介紹了許多旨在改變教育範式、提高教師效率和促進學生成功的新產品計劃。

Among the most important partner-driven wins in the quarter, we won a contract with one of the preeminent technology companies in the world and wanted to conduct research to prove the efficacy of handheld devices. We created a proposal that examined the impact of [MAP] intervention on both student outcomes and teacher outcomes. In addition to expanding a great partnership with a large technology business, [the win] also has started to pay attention to large districts that are looking to participate in research. And we are thinking big about partnerships.

本季度最重要的合作夥伴驅動的勝利之一是，我們贏得了與世界上一家傑出技術公司之一的合同，並希望進行研究以證明手持設備的功效。我們創建了一項提案，研究 [MAP] 介入對學生成績和教師成績的影響。除了擴大與大型科技企業的良好合作關係外，[勝利]也開始關注那些希望參與研究的大型地區。我們正在認真考慮合作關係。

Also at InstructureCon, we announced that we are teaming with Khan Academy, bringing together our Instructure Learning Platform with Khan's AI-powered student tutor and teaching assistant, Khanmigo. Through this partnership, we are offering world-class content from the Khan Academy with the industry's most widely used commercial LMS, leveraging generative AI to empower educators to meet students where they are in their educational journey. We're committed to bringing AI to the teaching and learning process with intent, safety and equity.

同樣在 InstructorCon 上，我們宣布與 Khan Academy 合作，將我們的 Instructor 學習平台與 Khan 的人工智慧學生導師和助教 Khanmigo 結合在一起。透過這種合作關係，我們透過業界最廣泛使用的商業學習管理系統提供來自可汗學院的世界級內容，利用生成式人工智慧使教育工作者能夠滿足學生在教育旅程中的需求。我們致力於將人工智慧有意、安全和公平地引入教學過程。

To that end, we also announced the Emerging AI Marketplace last week, which gives educators visibility and access to the AI solutions that are integrated into the Instructure Learning Platform. We have worked with our customers to define privacy and security standards to ensure AI solutions are safe, and each partner in the marketplace is committed to the standard.

為此，我們上週還宣布了新興人工智慧市場，該市場使教育工作者能夠了解並存取整合到 Instruct 學習平台中的人工智慧解決方案。我們與客戶合作定義隱私和安全標準，以確保人工智慧解決方案的安全，並且市場上的每個合作夥伴都致力於遵守該標準。

In just the last 2 years, we have nearly doubled our partner base. Truly, our investment in the Instructure Learning Platform gives our customers access to innovation across the (inaudible) landscape.

在過去的兩年裡，我們的合作夥伴數量幾乎增加了一倍。確實，我們對 Instruct 學習平台的投資使我們的客戶能夠在整個（聽不清楚）領域中獲得創新。

And finally, our results are indicative of our ability to drive leverage in the business. Because of our disciplined investments, we've been able to deliver best-in-class margins that in turn allow us to invest in our platform and drive long-term durable growth. Our business model permits us to continue to driving strong top line results without sacrificing margins and profitability.

最後，我們的結果顯示了我們推動業務槓桿的能力。由於我們嚴格的投資，我們能夠提供一流的利潤率，這反過來又使我們能夠投資於我們的平台並推動長期持久成長。我們的業務模式使我們能夠在不犧牲利潤和獲利能力的情況下繼續推動強勁的營收業績。

As evidence of this, we saw record renewals in Q2 as customers that came under the COVID-19 pandemic continue to see value in a more normalized environment. With adjusted gross margins approaching 80% and adjusted EBITDA margins nearly 40%, we expect to continue to produce free cash flow that will allow us to reinvest both organically and through M&A to drive long-term durable growth.

作為這一點的證據，我們在第二季度看到了創紀錄的續訂，因為受到 COVID-19 大流行影響的客戶繼續在更正常化的環境中看到價值。隨著調整後毛利率接近 80%，調整後 EBITDA 利潤率接近 40%，我們預計將繼續產生自由現金流，這將使我們能夠透過有機方式和併購進行再投資，以推動長期持久成長。

In conclusion, we believe our impressive Q2 results and expanded impact on education position us as the clear leader in the education technology space. And we look forward to the opportunity to continue to drive value for our customers and shareholders in the months and years ahead.

總之，我們相信我們第二季令人印象深刻的業績以及對教育的更大影響使我們成為教育科技領域的明顯領導者。我們期待在未來的歲月裡有機會繼續為我們的客戶和股東創造價值。

Now I will turn it over to Dale to provide further details on our Q2 financial performance and guidance for Q3 and the full year 2023. Dale, please go ahead.

現在我將把它交給 Dale，提供有關我們第二季度財務業績的更多詳細信息以及第三季度和 2023 年全年的指導。Dale，請繼續。

Thank you, Steve, and thanks again to everyone for joining us today. Before discussing our detailed financial results, I'd like to point out that in addition to our GAAP results, I will be discussing certain non-GAAP results. Our GAAP financial results, along with the reconciliation between GAAP and non-GAAP results, can be found in our earnings release, which is posted in the Investor Relations section of our website.

謝謝你，史蒂夫，並再次感謝大家今天加入我們。在討論我們詳細的財務業績之前，我想指出，除了我們的 GAAP 業績之外，我還將討論某些非 GAAP 業績。我們的 GAAP 財務表現以及 GAAP 和非 GAAP 業績之間的調整表可以在我們網站的投資者關係部分發布的收益報告中找到。

In Q2, we continue to show a combination of strong top line growth and best-in-class adjusted EBITDA margins. As Steve mentioned, we generated total GAAP revenue of $131.4 million. Subscription and support accounted for 90% of our Q2 revenue at $118.6 million, up 15% year-over-year, driven by healthy growth across all of our key markets with particular emphasis in K-12 and with cross-sell. Professional services and other revenue accounted for 10% of our Q2 revenue at $12.5 million, up 7% year-over-year. Deferred revenue at the end of Q2 was $330.7 million, up 17% year-over-year.

第二季度，我們持續展現強勁的營收成長和一流的調整後 EBITDA 利潤率。正如 Steve 所提到的，我們的 GAAP 總收入為 1.314 億美元。訂閱和支援占我們第二季營收的 90%，達到 1.186 億美元，年增 15%，這得益於我們所有主要市場（尤其是 K-12 和交叉銷售）的健康成長。專業服務和其他收入占我們第二季營收的 10%，達到 1,250 萬美元，年增 7%。第二季末遞延營收為 3.307 億美元，年增 17%。

We ended Q2 with remaining performance obligations, or RPO, of $853.6 million, up 9% year-over-year. We expect to recognize revenue on approximately 72% of our RPO over the next 24 months.

第二季結束時，我們的剩餘履約義務 (RPO) 為 8.536 億美元，年增 9%。我們預計在未來 24 個月內將以 RPO 的約 72% 確認收入。

In discussing the remainder of the income statement, please note that unless otherwise stated, all reference to our expenses, operating results and share count are on a non-GAAP basis. Our strong gross profit margin profile was supported by our optimized cloud architecture and flexible support model that scales to meet seasonal customer demand. In Q2, gross profit was $104.1 million, representing a 79.5% gross margin, up from 77.6% in Q2 of last year.

在討論損益表的其餘部分時，請注意，除非另有說明，否則所有對我們的費用、經營業績和股份數量的引用均基於非公認會計原則。我們強勁的毛利率得益於我們優化的雲端架構和靈活的支援模型，可擴展以滿足季節性客戶需求。第二季毛利為 1.041 億美元，毛利率為 79.5%，高於去年第二季的 77.6%。

Turning now to operating expenses. Sales and marketing expenses for Q2 were $27.6 million or 21% of revenue, down slightly from 21.5% of revenue in Q2 of 2022. Research and development expenses for Q2 were $16.6 million or 13% of revenue compared to 14% in Q2 of 2022. General and administrative expenses for Q2 were $9.8 million or 8% of revenue, down from 9% in Q2 of last year.

現在轉向營運費用。第二季的銷售和行銷費用為2,760 萬美元，佔營收的21%，略低於2022 年第二季佔營收的21.5%。第二季的研發費用為1,660 萬美元，佔營收的13%，而2022 年第二季為14%。第二季的一般及管理費用為 980 萬美元，佔營收的 8%，低於去年第二季的 9%。

Non-GAAP operating income for Q2 was $50.2 million, representing a 38.3% operating margin, up from 33.7% in Q2 of 2022. Q2 adjusted EBITDA margin was $51.3 million, representing a 39.1% adjusted EBITDA margin, up from 34.6% in Q2 of last year. Non-GAAP net income was $28 million in Q2 or $0.19 per share compared with $23.8 million or $0.17 per share a year ago.

第二季非GAAP 營業收入為5,020 萬美元，營業利潤率為38.3%，高於2022 年第二季的33.7%。第二季調整後EBITDA 利潤率為5,130 萬美元，調整後EBITDA 利潤率為39.1 %，高於2022 年第二季的34.6%。去年。第二季非 GAAP 淨利為 2,800 萬美元，即每股 0.19 美元，而去年同期為 2,380 萬美元，即每股 0.17 美元。

Turning to the balance sheet and cash flow statement. We ended Q2 with $129.8 million of cash, cash equivalents and restricted cash and $488.4 million of long-term debt, net of discount, resulting in a 1.83x net debt to trailing 12-month adjusted EBITDA ratio. Free cash flow for the quarter was $23.5 million compared to $6.6 million in the prior year, up more than 250%.

轉向資產負債表和現金流量表。在第二季末，扣除折扣後，我們的現金、現金等價物和限制性現金為 1.298 億美元，長期債務為 4.884 億美元，淨債務與過去 12 個月調整後 EBITDA 比率為 1.83 倍。本季自由現金流為 2,350 萬美元，較上年同期的 660 萬美元成長超過 250%。

Adjusted unlevered free cash flow, which adjusts for the impact of transaction costs, sponsor costs, impaired leases and other nonrecurring costs paid in cash, was $37.1 million, a 129% year-over-year increase from $16.2 million in the year ago quarter. Note that our free cash flow was quite strong this quarter due chiefly to accelerated collections. We expect that these will normalize as we move through the balance of the year.

調整後的無槓桿自由現金流（根據交易成本、保薦成本、減損租賃和其他以現金支付的非經常性成本的影響進行調整）為 3,710 萬美元，較去年同期的 1,620 萬美元增長 129%。請注意，本季我們的自由現金流相當強勁，這主要是由於收款速度加快。我們預計，隨著今年剩餘時間的推移，這些情況將會正常化。

I will now conclude the call by providing guidance for Q3 and the full year of '23 for revenue and adjusted EBITDA. We have provided additional guidance details in our earnings press release.

現在，我將透過提供第三季和 23 年全年的收入和調整後 EBITDA 指引來結束本次電話會議。我們在收益新聞稿中提供了更多指導細節。

For the third quarter of fiscal 2023, we expect revenue in the range of $132 million to $133 million. For the full year, we expect revenue to be in the range of $524 million to $528 million, up $2.9 million at the midpoint compared with the annual guidance that we provided in May. We expect Q3 adjusted EBITDA in the range of $52.5 million to $53.5 million, representing an adjusted EBITDA margin of 38.8% at the midpoint.

2023 財年第三季度，我們預期營收在 1.32 億美元至 1.33 億美元之間。我們預計全年收入將在 5.24 億美元至 5.28 億美元之間，比我們 5 月提供的年度指引中位數增加 290 萬美元。我們預計第三季調整後 EBITDA 在 5,250 萬美元至 5,350 萬美元之間，調整後 EBITDA 利潤率為中點 38.8%。

For the full year, we expect adjusted EBITDA in the range of $203.5 million to $207.5 million, representing an adjusted EBITDA margin of 39% at the midpoint. For the full year, we expect adjusted unlevered free cash flow to be in the range of $207 million to $211 million for an adjusted unlevered free cash flow margin of 39.7% at the midpoint.

我們預計全年調整後 EBITDA 在 2.035 億美元至 2.075 億美元之間，調整後 EBITDA 利潤率為中點 39%。我們預計全年調整後無槓桿自由現金流將在 2.07 億美元至 2.11 億美元之間，調整後無槓桿自由現金流中點率為 39.7%。

In summary, we believe that our first half results put us in a great position to drive an even better 2023 than originally expected. We executed at a very high level, exceeding our guidance and continuing to deliver a rare combination of double-digit growth and best-in-class [margin]. We couldn't be more pleased about our momentum in the marketplace and look forward to updating you on our progress throughout 2023.

總而言之，我們相信上半年的業績使我們處於有利地位，可以推動 2023 年的表現比最初預期更好。我們的執行水準非常高，超出了我們的指導，並繼續實現罕見的兩位數成長和一流的[利潤率]組合。我們對我們在市場上的發展勢頭感到非常高興，並期待向您通報我們在 2023 年的最新進展。

With that, Steve and I are happy to take any of your questions.

就此而言，史蒂夫和我很樂意回答您的任何問題。

(Operator Instructions) Your first question comes from the line of Josh Baer with Morgan Stanley.

（操作員說明）您的第一個問題來自摩根士丹利的 Josh Baer。

Congrats on a strong quarter. I was hoping to get an updated view on growth expectations across K-12, higher ed and international. Sometimes you give kind of ranges there. And I wanted to ask just to get also a sense for the gross margins or EBITDA margins or contribution margins across those segments, thinking about how to assess the impacts from mix shift, presumably to faster-growing international and maybe to K-12, how that could impact margins, too.

恭喜季度表現強勁。我希望獲得 K-12、高等教育和國際教育成長預期的最新觀點。有時你會在那裡給出某種範圍。我想問的只是為了了解這些細分市場的毛利率或EBITDA 利潤率或貢獻利潤率，思考如何評估混合轉變的影響，可能是對成長更快的國際市場，也可能是對K-12 的影響，如何這也可能會影響利潤率。

Thanks, Josh, and I appreciate the question. We've provided some growth expectations in general terms for North America K-12 with North America high ed being in the high single digits and international to be in the low double digits. And that's how we look at the business moving forward.

謝謝，喬什，我很欣賞這個問題。我們對北美 K-12 的整體成長預期進行了預測，其中北美高中的成長預期為高個位數，國際成長預期為低兩位數。這就是我們對業務發展的看法。

Now in terms of margins, we've not broken out margins by any of those different segments that we've talked about. However, I will say that we're very confident in our operating model that we can get very good and positive contribution margins in each of the areas where we participate.

現在就利潤率而言，我們還沒有按我們討論過的任何不同細分市場細分利潤率。然而，我要說的是，我們對我們的營運模式非常有信心，我們可以在我們參與的每個領域中獲得非常好的和積極的邊際貢獻。

Josh, we've made investments, for instance, in our channel program that were negative margins, frankly, as we began making those investments, and we've still been able to improve our margins in the process. So that's the model that we're taking, is that we'll continue to see those improvements even as we see the mix shift between those.

喬許，例如，我們在通路計畫方面進行了投資，坦白說，當我們開始進行這些投資時，我們的利潤率為負，但在此過程中我們仍然能夠提高利潤率。這就是我們正在採用的模型，即使我們看到這些改進之間的混合變化，我們也將繼續看到這些改進。

Okay. That's helpful. And then any change in the competitive landscape across those end markets? Or is it the same story?

好的。這很有幫助。那麼這些終端市場的競爭格局有什麼改變嗎？還是同一個故事？

Yes. We're seeing similar competitive dynamics across K-12, higher ed and international. So no change there, Josh.

是的。我們在 K-12、高等教育和國際領域都看到了類似的競爭動態。所以沒有變化，喬許。

Your next question comes from the line of Steve Enders with Citi.

您的下一個問題來自花旗銀行的史蒂夫恩德斯 (Steve Enders)。

I guess I did want to start on asking about takeaways from the conference. And I know there are a lot of product announcements, but I guess what's kind of the early feedback on some of the AI initiatives from the customers that you've talked to? And I guess how should we be thinking about the potential for that to layer into the model here over the next few years?

我想我確實想開始詢問會議的要點。我知道有很多產品發布，但我想您所交談過的客戶對一些人工智慧計劃的早期反饋是什麼樣的？我想我們應該如何考慮未來幾年將其融入模型中的潛力？

Yes. It was good to see you there, Steve. We -- the feedback was generally very positive. So we had taken time before -- for basically the last 18 months, we've worked with some customer user groups. We were very pragmatic and really spent time with them understanding where were areas that they'd like us to make investments. And so investments like using artificial intelligence to help create pages within Canvas, that creator experience using AI -- use regular language to do that was very well received, some of the stuff that we showed in the labs -- in the educational moments of the future room.

是的。很高興在那裡見到你，史蒂夫。我們——反饋總體上非常積極。所以我們之前就花了一些時間——基本上在過去 18 個月裡，我們與一些客戶用戶群進行了合作。我們非常務實，確實花時間與他們了解他們希望我們在哪些領域進行投資。因此，像使用人工智慧來幫助在Canvas 中創建頁面這樣的投資，使用人工智慧的創作者體驗——使用常規語言來做到這一點非常受歡迎，我們在實驗室中展示的一些東西——在教育時刻未來的房間。

They were very excited about [global] search being one of those, some of the things we did, recognizing sentiment within a remote environment as well as some of the other pieces that we highlighted. We had a lot of sign-ups, if you will, or customers that want to be part of the early adopter program as we work through some of the details on these.

他們對[全球]搜尋成為其中之一感到非常興奮，我們所做的一些事情，識別遠端環境中的情緒以及我們強調的其他一些內容。當我們處理這些細節時，我們有很多註冊用戶，或希望成為早期採用者計畫一部分的客戶。

So in general, very positive. I'd say it's still early days as far as what impact this is going to have on the business model long term, and we're working through those with our customers as we work to understand which of this functionality, the value that it's bringing result in changes in pricing or what the cost structure looks like. So it's a little early to be building anything into the models, Steven.

所以總的來說，非常積極。我想說，就這對商業模式的長期影響而言，現在還為時過早，我們正在與客戶一起研究這些功能，以了解該功能的哪些功能以及它帶來的價值導致定價或成本結構發生變化。所以史蒂文，現在將任何東西構建到模型中還為時過早。

Okay. Perfect. No, that's helpful there. I guess to follow up, it's good renewal activity and good bookings here in the quarter. How are you feeling about the kind of current budget environment? And kind of what's the view into pipeline opportunity going into 3Q?

好的。完美的。不，這很有幫助。我想接下來，本季的續約活動和預訂量都很好。您對目前的預算環境有何看法？對進入第三季的管道機會有何看法？

Yes. We feel good about where our pipeline sits going into the second half. I would say you've read all the headlines about some of the challenges that higher ed is facing. What we're finding is, in general, those are good -- we help them deal with a lot of those challenges. So we feel it's a good long-term backdrop for us. And so things like better consolidation that we're starting to see happen. Customers have told us that they want to standardize around a few strategic platforms, ours being one of those.

是的。我們對進入下半年的管道狀況感到滿意。我想說，您已經閱讀了有關高等教育面臨的一些挑戰的所有頭條新聞。我們發現，總的來說，這些都是好的——我們幫助他們應對許多挑戰。所以我們認為這對我們來說是一個很好的長期背景。因此，我們開始看到諸如更好的整合之類的事情發生。客戶告訴我們，他們希望圍繞著一些策略平台進行標準化，我們的平台就是其中之一。

The work that we've been investing in over the last 2 years is to really ensure that we give solutions to address nontraditional students, the work we've done to really go after those nontraditional education institutions, all are good backdrops for us for long-term durable growth. So we feel good about where we're sitting going into the second half as well as really long term from a growth perspective.

過去兩年我們一直在投資的工作是為了真正確保我們為非傳統學生提供解決方案，我們為真正追隨那些非傳統教育機構所做的工作，所有這些都是我們長期發展的良好背景長期持久增長。因此，我們對進入下半年以及從成長角度來看的長期狀況感到滿意。

Your next question comes from the line of Fred Havemeyer with Macquarie.

你的下一個問題來自麥格理的 Fred Havemeyer。

Congratulations on the quarter. I think I would like to just begin by asking a little bit about international as well, too. Just generally, certainly, we saw you highlighted the Austria win. Just how do you think about that opportunity going into -- throughout the balance of this year and, of course, into next year? Just how far along do you feel you are with your international go-to-market program? And just how confident are you in the international opportunities?

恭喜本季。我想我也想先詢問一些有關國際的問題。總的來說，當然，我們看到您強調了奧地利的勝利。您如何看待今年剩餘時間，當然還有明年的這個機會？您認為您的國際市場進入計劃進展到什麼程度了？您對國際機會有多少信心？

Yes. It's a good question, Fred. We feel really good about our positioning for international. So as we highlighted in the script, the wins with Krems was in Austria. Part of the value proposition that we bring to particularly our European customers but even across the board is the work that we've done really to put in a very robust privacy and security framework. And so we feel good that demonstrates the value of those, particularly when you're dealing with some of the regulatory environments each of the regions is dealing with.

是的。這是個好問題，弗雷德。我們對自己的國際定位感到非常滿意。正如我們在劇本中強調的那樣，克雷姆斯的勝利是在奧地利。我們為歐洲客戶帶來的價值主張的一部分，甚至是全面性的，都是我們為建立一個非常強大的隱私和安全框架所做的工作。因此，我們感覺很好，這證明了這些的價值，特別是當您處理每個地區正在處理的一些監管環境時。

So feel good about -- Moodle is still 70% of the market there. We believe in the opportunity to continue to grow, still our fastest grower and that we can drive big business over time. So still feel similar to as we've talked about in the past, Fred, about the opportunity there and particularly about our position to be able to win.

所以感覺很好——Moodle 仍然佔據那裡 70% 的市場。我們相信繼續成長的機會，仍然是我們成長最快的企業，並且隨著時間的推移，我們可以推動更大的業務。所以，弗雷德，我仍然感覺與我們過去談到的類似，關於那裡的機會，特別是關於我們能夠獲勝的位置。

Channel investment is still continuing, and we're starting to see some progress in the channel. But again, that's probably something that occurs a little bit later in time as far as having a meaningful impact on the top line.

通路投資仍在持續，我們開始看到通路方面取得了一些進展。但同樣，就對營收產生有意義的影響而言，這可能會發生得晚一些。

And I think just another one. Just we've seen Canvas is performing well. Your product is absolutely solid, but of course, you've been building a broader portfolio of solutions, too. So I'm curious if you can add a little more context also on just where you're seeing adoption of just outside your core Canvas solution and how that's trending throughout this year.

我認為只是另一個。我們剛剛看到 Canvas 表現良好。您的產品絕對可靠，但當然，您也一直在建立更廣泛的解決方案組合。因此，我很好奇您是否可以添加更多背景信息，了解您在核心 Canvas 解決方案之外採用的情況以及今年的趨勢。

Yes. So we saw particular success in K-12 with assessments. So Mastery-branded products, whether it's the MasteryConnect, the sentiment management system or the content that rides along with that. So a good quarter from that perspective. We're seeing a lot of pickup with our catalog and credentials as we help either higher ed institutions address the nontraditional or as we go to -- we go after some of those nontraditional, those RTO organizations like we talked about in the script. So those 2 have been particularly successful from a cross-selling perspective, those 2 areas.

是的。因此，我們在 K-12 評估方面取得了特別成功。所以 Mastery 品牌的產品，無論是 MasteryConnect、情緒管理系統或是隨之而來的內容。從這個角度來看，這是一個很好的季度。當我們幫助高等教育機構解決非傳統問題時，我們看到我們的目錄和證書有很多提升，或者我們去尋找一些非傳統的 RTO 組織，就像我們在劇本中談到的那樣。因此，從交叉銷售的角度來看，這兩個領域特別成功。

And then we're seeing good success with our LearnPlatform acquisition. And so from the ability to sell on both sides of the network, either the educational institution as well as selling services to the partners and providers has been -- it's met our expectations and where the pipeline has grown and nearly doubled since we did the acquisition. So we're feeling good.

然後我們看到 LearnPlatform 收購取得了巨大成功。因此，從在網路雙方銷售的能力來看，無論是教育機構還是向合作夥伴和提供者銷售服務，它都滿足了我們的預期，自我們收購以來，通路已經成長並幾乎翻了一番。所以我們感覺很好。

Your next question comes from the line of Stephen Sheldon with William Blair.

你的下一個問題來自史蒂芬謝爾頓和威廉布萊爾的對話。

First one here, just great to see renewal trends supporting the step-up in RPO. So if you went through this heavy renewal period, did anything surprise you either positively or negatively in terms of things like renewal rates, deal lengths, pricing, upselling, et cetera? Are there any trends that you saw consistently such as maybe longer-term -- longer-duration contract renewals? Just any detail on the renewal activity.

第一個，很高興看到更新趨勢支持 RPO 的提升。那麼，如果您經歷了這段繁重的續約期，在續約率、交易長度、定價、追加銷售等方面，是否有任何事情讓您感到驚訝，無論是積極還是消極？您是否一直看到任何趨勢，例如可能更長期限的合約續約？只是有關續訂活動的任何詳細資訊。

Yes. Thanks for pointing out the RPO, David (sic) [Stephen]. Really pleased with it. What we did call out is a historic number for us on RPO, and really pleased with the renewals team.

是的。感謝 David（原文如此）[Stephen] 指出 RPO。真的很滿意。我們確實指出了 RPO 的歷史性數字，並且對續約團隊非常滿意。

So I would say the one constant thing that we're seeing out of this group is that we have a lot of customers come on board 3 years ago in the beginning stages of the pandemic, and they're finding value still today with the learning platform. And they're building around the learning platform. And so very, very high retention rate.

因此，我想說的是，我們從這個群體中看到的一個不變的事情是，我們有很多客戶在三年前大流行的開始階段就加入了，他們今天仍然透過學習發現了價值平台。他們正在圍繞學習平台進行建構。所以保留率非常非常高。

We are seeing some deal length -- contract length extending mainly in the high ed space. And the other thing that I would say is those renewals are now coming with additional products that we have out of our portfolio. So really good things coming out of a strong renewal quarter we just closed.

我們看到一些交易長度——合約長度主要在高端領域延長。我要說的另一件事是，這些續約現在附帶了我們產品組合中的其他產品。我們剛結束的強勁續訂季度帶來了非常好的事情。

Good to hear. I appreciate that. As a follow-up, it seemed like there was a lot of focus at the user conference last week on credentialing in higher ed. It looks like that was included in the Duke win. So how frequently are you seeing that being included in conversations with new and existing higher ed customers? Is this going to be something that practically every university will need to be thinking about to be relevant over the medium term in your view? And what could that mean for your financial opportunity with these types of solutions?

很高興聽到。我很感激。作為後續行動，上週的用戶會議似乎非常關注高等教育的認證問題。看起來這也包含在杜克大學的勝利中。那麼，您在與新的和現有的高等教育客戶的對話中看到這種情況的頻率有多高？在您看來，這是否是幾乎每所大學都需要考慮的事情，以便在中期內發揮作用？這些類型的解決方案對您的財務機會意味著什麼？

Yes. This is a conversation that we're having with almost every institution, right? They're looking at how do they meet the needs of the workforce of the future, how do they demonstrate skills along the way rather than just pointing to the diploma at the end of their educational journey. So it is absolutely a point of conversation. It's in almost every conversation that we're having from a selling perspective.

是的。這是我們與幾乎所有機構進行的對話，對吧？他們正在研究如何滿足未來勞動力的需求，如何在整個過程中展示技能，而不僅僅是在教育旅程結束時指向文憑。所以這絕對是一個話題。幾乎在我們從銷售角度進行的每一次對話中都是如此。

It's my belief that, over time, every institution will have to figure out how to deal with this. And the customer panels, not just the one that we have together, but also others, are kind of confirming that this really is an opportunity for higher education to really ensure that enrollments go up and they're addressing the skills-based economy going forward.

我相信，隨著時間的推移，每個機構都必須弄清楚如何處理這個問題。客戶小組（不僅是我們的客戶小組，還有其他客戶小組）都在某種程度上確認，這確實是高等教育的一個機會，可以真正確保入學率上升，並解決未來基於技能的經濟問題。

Your next question comes from the line of Joe Vruwink with Baird.

你的下一個問題來自 Joe Vruwink 和 Baird 的對話。

Maybe I'll go back quickly to the last discussion on RPO. Is it possible to translate what you just saw in terms of financial metric like net retention rates and maybe how the recent renewal cohorts are evolving relative to -- I think you've talked about 105% to 110% in the past. Is that changing for better or worse just in terms of your recent activity?

也許我會快速回到上次關於 RPO 的討論。是否可以將您剛才看到的內容轉化為淨保留率等財務指標，以及最近的續約群體相對於如何發展——我想您過去曾談到過 105% 到 110%。僅就您最近的活動而言，這種情況會變得更好還是更糟？

I would say, Joe, that RPO number is really noisy. And the main driver for that is the multiyear engagement business with our customers. And so I don't know that I would overindex on that particular number as it translates to any of the metrics. I would say this though. We have -- in this quarter, we saw really good growth in deferred revenue. We saw good growth in our RPO, and we had really good bookings growth.

我想說，喬，RPO 數字確實很吵。其主要驅動力是與客戶的多年合作業務。因此，我不知道我會過度索引該特定數字，因為它會轉換為任何指標。不過我會這麼說。在本季度，我們看到遞延收入確實出現了良好的成長。我們看到 RPO 取得了良好的成長，預訂量也取得了非常好的成長。

On NRR, there's a couple of things that we would also point to, which would be some of the growth that we saw with renewals adding other products to it and some price increases. So that does come through in the NRR number.

關於 NRR，我們也需要指出一些事情，這將是我們透過續訂添加其他產品以及一些價格上漲所看到的一些成長。所以這確實體現在 NRR 數字中。

I think, Joe, I would -- I don't -- I think it would be tough to read through on the RPO number to extrapolate what NRR is going to be. We're still holding to our guidance on NRR, where we think that's going to be end of the year.

我想，喬，我會——我不會——我認為通過閱讀 RPO 數字來推斷 NRR 會是多少是很困難的。我們仍然堅持對 NRR 的指導，我們認為這將在今年年底實現。

Okay. That's helpful. And then I wanted to ask about guidance. It looks like the forecast for the second half of the year, Intel's revenue growth dipping into the high single-digit range. How much of that is just reflecting some of the bookings trends you were discussing in the latter part of last year? And then on the flip side, as I just look at this quarter's RPO number and think about maybe RPO billings, it does seem like there's been an improvement in growth rates kind of back to the low double-digit range. Is this all maybe just a matter of the timing of when RPO gets deployed and low double digits as feasibly a better expectation but maybe the earlier part of next year?

好的。這很有幫助。然後我想詢問指導。看起來就像對今年下半年的預測一樣，英特爾的營收成長將跌至高個位數範圍。其中有多少只是反映了您去年下半年討論的一些預訂趨勢？另一方面，當我查看本季度的 RPO 數字並考慮 RPO 帳單時，成長率似乎確實有所改善，回到了較低的兩位數範圍。這是否只是 RPO 部署時間的問題，低兩位數的預期可能是更好的預期，但也許是明年早些時候？

So the second half growth really follows the guidance that we provided. It really follows the normal seasonal pattern that we see. It aligns to North America's fall start, school systems where we have most of the revenues already built into our plan. But we always provide guidance that we're confident in delivering. And the stable customer base gives us that confidence that we can hit those numbers (inaudible).

因此，下半年的成長確實遵循了我們提供的指導。它確實遵循我們看到的正常季節性模式。它與北美的秋季開學學校系統一致，我們的大部分收入已經納入我們的計劃中。但我們總是提供我們有信心提供的指導。穩定的客戶群讓我們有信心達到這些數字（聽不清楚）。

And we'll guide to 2024 numbers in our Q4 call, Joe.

喬，我們將在第四季的電話會議中介紹 2024 年的數字。

Your next question comes from the line of Brian Peterson with Raymond James.

你的下一個問題來自布萊恩彼得森和雷蒙詹姆斯的對話。

Congrats on the quarter, and it was great to see you last week. So 2 on the cross-sell that you guys referenced this quarter. So just on the cadence, I'd love to understand if that's more of a renewal dynamic and you're seeing that as part of contracts coming up. Or is that actually happening kind of outside of that traditional negotiation cycle maybe with that outside of the RFPs? I'd love to maybe unpack that a little bit.

恭喜本季度，很高興上週見到您。所以 2 關於你們本季提到的交叉銷售。因此，就節奏而言，我很想了解這是否更像是續約動態，並且您將其視為即將簽訂的合約的一部分。或者這實際上是在傳統談判週期之外發生的，也許是在 RFP 之外？我很想稍微解開一下。

Yes. Brian, I mean, it's a little bit tough to kind of break it out because this is our -- the kind of June, July, August time frames are our biggest renewal months. And we did see good cross-sell motion in this quarter. So yes, that helps. It's always good to intercept a renewal when it comes to cross-sell.

是的。布萊恩，我的意思是，要打破它有點困難，因為這是我們的——六月、七月、八月的時間框架是我們最大的更新月份。我們在本季度確實看到了良好的交叉銷售勢頭。所以是的，這有幫助。在交叉銷售方面，攔截續訂總是好的。

We don't -- but we still do cross-sell outside of renewal cycles. So it isn't tied necessarily to the renewal, but absolutely, the renewal helps when it comes to being able to intercept budgets and things like that, if that makes sense.

我們不這樣做，但我們仍然在續訂週期之外進行交叉銷售。因此，它不一定與更新有關，但絕對是，更新在能夠攔截預算和類似的事情方面有所幫助，如果這有意義的話。

Understood. And maybe just a follow-up -- no, it does. But I guess maybe for Dale, as we're thinking about cross-sell in some of the newer products, how do we think about like $1 booked to $1 going-live revenue? Is that much shorter than the LMS? Or does it matter by product? I'd love to just understand as we think about that diversification of the booking stream, how does that flow into revenue?

明白了。也許只是後續行動——不，確實如此。但我想也許對於 Dale 來說，當我們考慮一些新產品的交叉銷售時，我們如何看待 1 美元的預訂到 1 美元的上線收入？是不是比 LMS 短很多？還是產品重要？我很想了解，當我們考慮預訂流的多樣化時，它是如何轉化為收入的？

Yes. It's a good question. What we're finding is that if we're able to capture what -- a solution for a customer that has an issue and show them value in our product, they will buy it prior to a contract renewal. And we see that in some of the products we have. Like the LP products are a good example of that. Impact is a good example of that.

是的。這是一個好問題。我們發現，如果我們能夠為有問題的客戶找到解決方案並向他們展示我們產品的價值，他們就會在續約合約之前購買它。我們在一些產品中看到了這一點。 LP 產品就是一個很好的例子。影響力就是一個很好的例子。

And what happens, Brian, is that usually we see like an upsell at the time of renewal when they expand that to the large part of their student base. And so it happens all the time, and so it's hard for me to tell you after a booking when that's going to start because it just happens all the time and it's based upon the customers' needs.

布萊恩，發生的情況是，當他們將其擴展到大部分學生群體時，我們通常會在續訂時看到追加銷售。這種情況一直在發生，所以我很難在預訂後告訴你什麼時候開始，因為這種情況一直在發生，而且是基於客戶的需求。

Your next question comes from the line of Terry Tillman with Truist Securities.

您的下一個問題來自 Truist Securities 的 Terry Tillman。

Steve, Dale and David, not to worry, I still have some questions left, so you're not getting out of this that simple. I know credentials and catalog has been asked like 4 times, but I thought I'd ask a fifth time. I was -- when I was talking to customers, just on an ad hoc basis at the conference, it actually was coming up regularly. And I've attended [drills and] conferences for many years, whether virtually or in-person.

史蒂夫、戴爾和大衛，別擔心，我還有一些問題要問，所以你們不會這麼簡單地擺脫這個問題。我知道憑證和目錄已被問過大約四次，但我想我應該問第五次。當我在會議上臨時與客戶交談時，這個問題實際上經常出現。我多年來一直參加[演習和]會議，無論是虛擬的還是面對面的。

And I'm curious, the credentials and catalog, how do they stack up now in terms of kind of the mix of new bookings coming from those add-on products versus maybe some of the other products? And it's basically just kind of related to that. Where are we in the adoption cycle for those 2 modules? Because it was coming up on a pervasive way. And then I have a follow-up.

我很好奇，憑證和目錄，在這些附加產品與其他產品的新預訂組合方面，它們現在如何疊加？它基本上與此相關。這兩個模組的採用週期處於什麼階段？因為它正在以一種普遍的方式出現。然後我有一個後續行動。

Yes. Terry, we don't break out between the different products as far as percentage of bookings, that kind of thing. But to your point, it is top of mind for most institutions. We are still early days. So a lot of conversations, a lot of strategies, some pilot -- customers rolling out pilots, some like Duke that are committing to it right up front. But from a revenue contribution perspective, it's still a pretty small contribution. We're still kind of early innings.

是的。特里，我們不會對不同產品進行細分，例如預訂百分比之類的。但就您而言，這是大多數機構的首要考慮因素。我們還處於早期階段。因此，我們進行了很多對話，並制定了很多策略，進行了一些試點——客戶推出了試點，有些人像杜克大學一樣預先承諾了這一點。但從收入貢獻的角度來看，這仍然是一個很小的貢獻。我們還處於早期階段。

Okay. Got it. Understood. And I guess just the follow-up question is it was striking in terms of the commentary and the narrative around lifelong learning. You all talked about now over a couple of quarters some of these nontraditional kind of educational institutions and where it's kind of like reskilling opportunities.

好的。知道了。明白了。我想接下來的問題是，圍繞終身學習的評論和敘述令人震驚。幾個季度以來，你們都談到了一些非傳統類型的教育機構，以及類似的再培訓機會。

What I'm curious about is, where are we in terms of how much that's starting to kind of shake out in the pipeline of some of this kind of more emerging kind of business? Because I'm not suggesting we're going to have a new segmentation, another segment. Dale doesn't want to have to deal with that. But how much is this starting to proliferate the new deal activity, these deals that are outside of the traditional 4-year academic institutions?

我很好奇的是，就這類新興業務的發展進程而言，我們處於什麼階段？因為我並不是建議我們要建立一個新的細分市場，另一個細分市場。戴爾不想處理這個問題。但是，這對新交易活動（這些交易不在傳統的四年制學術機構之外）的擴散程度有多大？

We don't break that out, again, Terry, as far as that level of detail. But we've been intentional as we've included these deals in our transcripts for the last several quarters because we are seeing a lot more activity in this RTO, further education, those nontraditional education institutions.

特里，我們不會再詳細說明這一點。但我們是有意為之的，因為我們在過去幾季的成績單中包含了這些交易，因為我們看到 RTO、繼續教育和那些非傳統教育機構中有更多的活動。

So we do believe that's a -- it will be a long-term driver for growth for us, right? It will be an important offset for existing customers as far as enrollments go, and it will be a driver for our upsell and cross-sell over the long term. But again, on both sides of those, whether it's existing institutions, traditional institutions or nontraditional, we're still early innings as far as its contribution to our overall results.

所以我們確實相信這將成為我們成長的長期驅動力，對吧？就註冊而言，這將是對現有客戶的重要抵消，並且從長遠來看，它將成為我們追加銷售和交叉銷售的驅動力。但同樣，無論是現有機構、傳統機構或非傳統機構，就其對我們整體結果的貢獻而言，我們仍處於早期階段。

Got it. And I guess though on that kind of emerging part of the business, does Chris Ball need to do anything different with the go-to-market? Or do existing sales reps kind of get opportunistically on those deals? Anything you can share about like the go-to-market, if it needs to be any different?

知道了。我想，儘管在業務的新興部分，克里斯·鮑爾是否需要在進入市場方面做一些不同的事情？或者現有的銷售代表是否會在這些交易中投機取巧？如果需要有所不同的話，您可以分享一些關於上市的事情嗎？

Yes. That's a great question. We do believe that we have an -- we can go faster if we put dedicated reps on that nontraditional learner group. It does require a little bit different messaging, positioning, packaging, those types of things. So historically, we have addressed those with our existing higher ed sales team. Over time, I think that will segment out from a selling perspective.

是的。這是一個很好的問題。我們確實相信，如果我們在非傳統學習者群體中配備專門的代表，我們就能走得更快。它確實需要一些不同的訊息傳遞、定位、包裝等類型的東西。因此，從歷史上看，我們已經透過現有的高等教育銷售團隊解決了這些問題。隨著時間的推移，我認為這將從銷售的角度進行細分。

Your next question comes from the line of Matt VanVliet with BTIG.

您的下一個問題來自 BTIG 的 Matt VanVliet。

Nice job in the quarter. I guess when you look at some of the conversations with prospective customers, how much, especially in higher ed, is starting maybe to be driven by some of these credentialing or nontraditional components as they're looking at using technology to really kind of jump into that environment and then you're going to follow up on maybe the more traditional Canvas LMS deals? Or is it still almost all driven by at least LMS being a major part of it?

本季工作做得很好。我想當你看看與潛在客戶的一些對話時，有多少，特別是在高等教育中，可能開始受到其中一些認證或非傳統組件的驅動，因為他們正在考慮使用技術來真正進入那種環境，然後您會跟進更傳統的Canvas LMS 交易嗎？或者它仍然幾乎全部由 LMS 驅動，至少是其中的一個主要部分？

Yes. It's interesting, Matt, because there's a -- the nontraditional is definitely an interest point within the selling process in most institutions that we're talking to. The other big trend that's kind of related to this is that institutions are recognizing that historically the way they've tried to go after these is with a -- maybe it's a continuing education team, which is separate from the team that's worried about how does the on-campus experience look. And what they're recognizing is they want one platform to drive across all modalities, right? And all -- we call it omni-channel, right?

是的。馬特，這很有趣，因為在我們交談的大多數機構中，非傳統絕對是銷售過程中的一個興趣點。與此相關的另一個大趨勢是，機構正在認識到，從歷史上看，他們試圖追求這些目標的方式是與一個——也許是一個繼續教育團隊，該團隊與擔心如何實現這些目標的團隊是分開的。校園體驗看起來。他們認識到他們想要一個平台來驅動所有模式，對吧？我們稱之為全通路，對吧？

They want one experience, whether you come on campus full time, whether you're fully remote, whether you're doing this to reskill or you're coming for a degree or just for credentials. So that's the bigger driver of the discussions. And then the use of catalog, which is organically built into the Canvas platform, the addition of credentialing, those things are the natural progression of the sales call, is, okay, you need these in order to address that part of your overall platform strategy, if that makes sense.

他們想要一種體驗，無論你是全職來到校園，無論你是完全遠程，無論你這樣做是為了重新學習技能，還是為了獲得學位或只是為了獲得證書。所以這是討論的更大推動力。然後使用目錄（有機地內建在 Canvas 平台中）、添加認證，這些都是銷售拜訪的自然進展，好吧，您需要這些來解決整體平台策略的這一部分，如果有道理的話。

Yes. No, that's great. And then maybe one more on this topic. Obviously, it was very, very front and center at the conference and has been for a little while in your commentary. But have you done much work internally or that you'd be willing to share in terms of how much sort of addressable market expansion all this provides? Or is some of this maybe offsetting potential other declining factors in particularly higher ed and it's a good backfill but maybe not as additive as it seems at the moment?

是的。不，那太好了。然後也許還有關於這個主題的一個。顯然，它在會議上非常非常重要，並且在您的評論中已經有一段時間了。但是，您是否在內部做了很多工作，或者您願意分享這一切提供了多少類型的可尋址市場擴展？或者其中的一些因素可能會抵消特別是高等教育中潛在的其他下降因素，而這是一個很好的補充，但可能不像目前看起來那樣具有附加作用？

Yes. We think this is a big opportunity for us as far as the number of addressable students and the revenue drivers. So we've sized the nontraditional space. It's about a $5 billion market opportunity. Some of that is included in our calculation of the existing $1 billion cross-sell that we've shared with you in the past. But a lot of that is incremental and much bigger than the kind of traditional LMS market. So we don't -- we believe it will be a grower -- or long-term durable growth versus a replacement for declining revenues in other places.

是的。我們認為，就潛在學生數量和收入驅動因素而言，這對我們來說是一個巨大的機會。所以我們調整了非傳統空間的大小。這是一個價值約 50 億美元的市場機會。其中一些已包含在我們過去與您分享的現有 10 億美元交叉銷售的計算中。但其中許多是增量的，並且比傳統的 LMS 市場大得多。因此，我們不會——我們相信它將是一個成長者——或長期持久的成長，而不是其他地方收入下降的替代品。

Your next question comes from the line of Devin Au with KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Devin Au。

The first one I have is congrats on the new lands at Duke and Ohio. Definitely encouraged to see you're getting larger and multiple products attached. Also, I don't think you've highlighted multiple new wins in U.S. higher ed in your prepared remarks for quite some time. So I just wanted to maybe double-click on the strength in that market specifically. Do you attribute kind of the strength there just from overall increasing priority from these institutions looking to add more solutions? Or would you attribute the strength to just overall better execution from your side?

我的第一個願望是祝賀杜克大學和俄亥俄大學獲得新土地。看到您變得越來越大並且附加了多個產品，我們絕對受到鼓舞。另外，我認為您在相當長的一段時間內沒有在準備好的演講中強調美國高等教育中的多項新勝利。所以我只是想雙擊該市場的實力。您是否將這些力量歸因於這些尋求添加更多解決方案的機構總體上日益優先考慮的因素？或者您會將這種優勢歸因於您方面整體更好的運動？

Yes. I think we tend to do very well in North American higher ed, particularly in the enterprise segment of that market. And so we have had some good big wins over the last several quarters. This is just continuing on that momentum. And it's been a -- it's a part of the market that we started in. That's a part of the market where we have 44% market share now in terms of enrollment. And so what we're seeing is in those discussions is our position in the market, our lighthouse accounts and references that we can bring to the table, the fact that we have a scalable platform that has scaled up rapidly during the pandemic and that they rely on it to scale to their needs, those are all coming into decision factors in addition to just around a typical feature, function sort of discussion.

是的。我認為我們在北美高等教育領域往往做得很好，特別是在該市場的企業領域。因此，我們在過去幾個季度取得了一些重大勝利。這只是繼續這種勢頭。這是我們開始進入的市場的一部分。就註冊人數而言，我們現在擁有 44% 的市場份額。因此，我們在這些討論中看到的是我們在市場中的地位，我們的燈塔帳戶和我們可以帶到桌面上的參考資料，事實上我們擁有一個可擴展的平台，在大流行期間迅速擴大規模，並且它們依靠它來擴展以滿足他們的需求，除了圍繞典型特性、功能類型的討論之外，這些都成為決策因素。

The other thing that we are seeing is that many of these institutions are either, as I talked about earlier, trying to want a single platform across all of the different opportunities that they have to reach students, but also that they're trying -- really trying to -- now that they've gone through that explosion that happened during the pandemic trying to consolidate around a few strategic vendors. And that's tending in our favor, particularly as we are able to not only offer the LMS, but also as was noted in the Duke win credentialing and catalog and those other consists across sports. So it really is a continuation of the strength that we've seen with our position within North America and higher ed.

我們看到的另一件事是，正如我之前談到的，這些機構中的許多要么試圖想要一個單一的平台來覆蓋他們接觸學生的所有不同機會，但他們也正在嘗試——現在他們已經經歷了大流行期間發生的爆炸式增長，試圖圍繞一些戰略供應商進行整合，他們真的很努力。這對我們有利，特別是因為我們不僅能夠提供 LMS，而且還能夠提供杜克大學獲勝證書和目錄以及跨體育項目的其他內容。因此，這確實是我們在北美和高等教育領域所看到的實力的延續。

That's great to hear. One quick follow-up I have is just on the gross margin in the quarter. Really impressive, 79.5%. Any additional color you can offer on what drove the higher margin there? And should we expect gross margin to climb higher reminder of the year?

聽到這個消息我很高興。我的一個快速跟進是本季的毛利率。確實令人印象深刻，79.5%。您可以提供任何其他顏色來推動更高的利潤嗎？我們是否應該預期今年的毛利率會攀升？

It's a good question. So Devin, we're really pleased with the gross margin figures that we had in Q2. And this is part of just a regular model of expanding margins over time. However, I would say that Q2, we did see some higher margins driven largely by timing of some revenue. However, we expect that future quarters will normalize back to that steady, consistent expansion that we've seen over the last 8 quarters. So to be clear, we have set long-term targets to have gross margins in the upper 7s, and we're making progress.

這是一個好問題。 Devin，我們對第二季的毛利率數據非常滿意。這只是隨著時間的推移擴大利潤的常規模型的一部分。然而，我想說，在第二季度，我們確實看到了一些更高的利潤率，這主要是由一些收入的時機所推動的。然而，我們預計未來幾季將恢復正常，恢復到過去 8 個季度穩定、持續的擴張狀態。需要明確的是，我們設定了毛利率在 7 以上的長期目標，我們正在取得進展。

Your next question comes from the line of Ryan MacDonald with Needham & Company.

您的下一個問題來自 Needham & Company 的 Ryan MacDonald。

I wanted to start on the K-12 space. Last week at the conference, there was quite a bit of interest in demand for the LearnPlatform functionality now that you're rolling that in and integrating that in for customers. Just curious as you think about -- how you think about the cross-sell opportunity there. And then given the demand in the K-12

我想從 K-12 空間開始。在上週的會議上，人們對 LearnPlatform 功能的需求非常濃厚，因為您正在為客戶推出並整合該功能。只是好奇您如何看待那裡的交叉銷售機會。然後考慮 K-12 的需求

(technical difficulty)

（技術難度）

funding for more analytical solutions, is there an opportunity to lead with those types of assets and then sort of get your foot in the door and then sort of cross-sell in LMS over time?

為更多分析解決方案提供資金，是否有機會以這些類型的資產為主導，然後涉足其中，然後隨著時間的推移在 LMS 中進行交叉銷售？

Yes. Let me start with the first question about cross-selling of LearnPlatform. So LearnPlatform, as we -- when we did the acquisition earlier this year, right, what we recognized was that K-12 is dealing with a massive ecosystem of edtech providers. So they're looking for help in rationalizing what's working, what's not working in those environments.

是的。讓我從關於LearnPlatform交叉銷售的第一個問題開始。因此，LearnPlatform，當我們今年稍早進行收購時，我們認識到 K-12 正在與一個龐大的教育科技提供者生態系統打交道。因此，他們正在尋求幫助來合理化在這些環境中什麼是有效的，什麼是無效的。

So we really have 2 sides of the network with LearnPlatform. One are the schools and districts, the state education authorities that are looking at it as a tool to really drive questions of what's being used, how often is it being used as well as what's being used in the environment, doing what they claim it can do.

因此，我們確實擁有 LearnPlatform 網路的兩端。其中之一是學校和學區、州教育當局將其視為一種工具，以真正推動有關使用內容、使用頻率以及環境中使用內容的問題，並做他們聲稱可以做的事情。

Likewise, on the other side of the network is the providers. And they're also wanting to understand it and demonstrate that what they're providing is working, right, and getting the outcomes that they're trying for.

同樣，網路的另一端是提供者。他們也想理解它並證明他們所提供的東西是有效的，正確的，並獲得了他們想要的結果。

And so we do think that this is going to be great cross-sell opportunities on both sides of those networks, right, which on the district and state level, we're seeing good pipeline build. We're seeing good integration points with Canvas. We announced that the overall usage reports will be integrated in Canvas for free so that you can start to see some of that data. And we expect that to drive a lot of interest and continue to generate lead gen for us to go sell or cross-sell the full-blown product. We're seeing a really rapid pipeline build and great success selling to the providers as well. That evidence as a service is growing. The pipeline has grown pretty dramatically.

因此，我們確實認為這將是這些網路雙方的巨大交叉銷售機會，在地區和州一級，我們看到良好的管道建設。我們看到與 Canvas 的良好整合點。我們宣布整體使用情況報告將免費整合到 Canvas 中，以便您可以開始查看其中的一些數據。我們預計這會引起很大的興趣，並繼續為我們銷售或交叉銷售成熟的產品帶來潛在客戶。我們看到管道建設非常迅速，並且向供應商銷售也取得了巨大成功。這種證據即服務正在不斷增長。管道增長得相當驚人。

So to your first question, yes, it absolutely is a key driver for us. And we believe it's going to -- we're reaching a point where it's going to be really important for districts, and we think it will be a big growth driver for us in the future.

所以對於你的第一個問題，是的，這絕對是我們的關鍵驅動力。我們相信，我們正在達到一個對各地區非常重要的地步，我們認為它將成為我們未來的一個巨大成長動力。

On the analytics side, we drive with a platform strategy when we have these conversations with our customers and our prospects. And so yes, this is a key part of that landing strategy for us. We think that it's a key differentiator against our competitors in this space, and we'll continue to use it as that, but again, with the idea that we're -- this is about a platform and a platform for teaching and learning that they're working to. So I think the answer to your second part of question, yes, it can be a good part of our land strategy in addition to the expand part of our cross-sell.

在分析方面，當我們與客戶和潛在客戶進行對話時，我們會採用平台策略來推動。是的，這是我們落地策略的關鍵部分。我們認為這是與我們在這個領域的競爭對手的一個關鍵區別，我們將繼續使用它，但我們的想法是——這是一個平台，一個用於教學和學習的平台，他們正在努力。所以我認為你問題第二部分的答案是，是的，除了擴大我們的交叉銷售之外，它還可以成為我們土地策略的重要組成部分。

Excellent. And maybe just one follow-up, just on the international partner channel. Obviously, you started to see some success with that with some deals in Asia Pac last quarter. Just curious as how that is progressing as sort of the pipeline builds for the international solutions there.

出色的。也許只是一個後續行動，就在國際合作夥伴頻道上。顯然，上個季度亞太地區的一些交易開始取得一些成功。只是好奇隨著國際解決方案的管道建設進展如何。

Yes. We are seeing -- we're seeing good pipeline build. We're focused on the channel partners that we believe are going to be our best bet in those space. We're training them up. We are helping them with lead generation. We're helping them with deployments. So we're very optimistic about the progress we're making there. But again, we'll probably see the benefits start to really occur next year as those investments pay off and as we ramp those channel partners. But good progress, particularly in some of the Asian geographies. But Latin America is where we see the most success with our partners.

是的。我們正在看到——我們正在看到良好的管道建設。我們專注於我們認為將成為我們在這些領域的最佳選擇的通路合作夥伴。我們正在訓練他們。我們正在幫助他們開發潛在客戶。我們正在幫助他們進行部署。因此，我們對在那裡取得的進展非常樂觀。但同樣，隨著這些投資得到回報以及我們擴大這些通路夥伴，明年我們可能會看到收益真正開始顯現。但進展良好，特別是在一些亞洲地區。但拉丁美洲是我們與合作夥伴最大成功的地方。

Your next question comes from the line of Noah Herman with JPMorgan.

您的下一個問題來自摩根大通的諾亞·赫爾曼 (Noah Herman)。

For the first one, have you seen any change in the pace of consolidation compared to what maybe you've seen before in the last year or so at the higher ed or K-12 level?

對於第一個問題，與去年左右在高等教育或 K-12 級別上看到的情況相比，您是否看到整合速度有任何變化？

Yes. I would say in the last year or year or so, more of the conversations have been about how do I get a common platform across each of the modalities, whether it's in continuing education department versus the in-person traditional campus experience. So yes, those conversations have been more common. I would say the bigger conversations around better consolidation and what can -- how do we reduce the number of suppliers, those are fairly new for us. Those are -- in the last quarter or 2 is where those have started to happen more and more.

是的。我想說，在過去一年或一年左右的時間裡，更多的對話是關於如何在每種模式中獲得一個通用平台，無論是在繼續教育部門還是在面對面的傳統校園體驗。所以，是的，這些對話已經更常見了。我想說的是，圍繞著更好的整合以及我們如何減少供應商數量的更大對話，這些對我們來說是相當新的。這些是——在過去一兩個季度，這種情況開始越來越多地發生。

Got it. And then just a quick follow-up. Some of these new features are being layered more into the platform. Do you see any reason to change the sales compensation structure going forward as part of the go-to-market strategy?

知道了。然後進行快速跟進。其中一些新功能正在更多地融入平台中。作為進入市場策略的一部分，您認為有什麼理由需要改變未來的銷售薪酬結構嗎？

No, we play -- we are -- we've changed the comp model -- each year, things get tweaked on it. I don't know that we'll see any major comp changes that happen in the coming years as far as how we compensate for, for instance, new features. You're really talking about cross-sell and some of the products that layer on top of Canvas, I think, in that question. So we do have -- in the existing structure, we do have tiered comp models depending on which products you sell. We move those around occasionally based on what we want to incent. But the fundamental structure, there won't be a massive change in our cost strategy in the future.

不，我們玩——我們是——我們改變了比賽模式——每年，事情都會進行調整。我不知道未來幾年我們會看到任何重大的補償變化，例如我們如何補償新功能。我認為，在這個問題中，您實際上是在談論交叉銷售以及 Canvas 之上的一些產品。所以我們確實有——在現有的結構中，我們確實有分層的補償模型，這取決於你銷售的產品。我們偶爾會根據我們想要激勵的內容來調整這些內容。但從基本架構來看，未來我們的成本策略不會有太大的改變。

Our final question comes from the line of Brent Thill with Jefferies.

我們的最後一個問題來自布倫特·希爾和傑弗里斯的對話。

It's David Lustberg on for Brent. I wanted to ask -- well, rather, drill in on assessments. I appreciate some of the commentary earlier. But I think last quarter, you guys said it was the fastest-growing product within K-12. I was just curious if you could provide an update on maybe if that held true in Q2. And more broadly, how should we think about the durability of growth in this offering? Is it more so with everyone catching up and assessing what learning loss from the pandemic is? Is that why maybe it's harder now and maybe it's not as durable? And on top of that, can you just remind us of the ARPU there? I think in the past, you said it's maybe 2 to 3x larger than LMS, but I appreciate any color you could add there. So I know that's a lot.

大衛·拉斯特伯格（David Lustberg）替補布倫特（Brent）。我想問——嗯，更確切地說，深入研究評估。我很欣賞之前的一些評論。但我想上個季度，你們說這是 K-12 中成長最快的產品。我只是好奇您能否提供更新信息，說明第二季度情況是否屬實。更廣泛地說，我們應該如何考慮該產品成長的持久性？當每個人都在追趕並評估疫情造成的學習損失時，情況是否更是如此？這就是為什麼現在可能更難並且可能不那麼耐用的原因嗎？除此之外，您能提醒我們那裡的 ARPU 值嗎？我想在過去，您說過它可能比 LMS 大 2 到 3 倍，但我很欣賞您可以在那裡添加的任何顏色。所以我知道很多。

Yes. No, it's -- and great to hear from you, David. The -- whether it would continue to be our fastest-growing segment in K-12, from a durability of growth perspective, this is a kind of digital transformation that will happen. And it's not -- some of the catalyst is learning loss, but the idea of being able to provide a teacher with real-time feedback in the classroom of how a student is doing against those -- the standards that they'll be tested against at the end of the year, that's something that's going to endure. And having a solution in place to be able to address that is going to be just as important as it is to have a learning management system in place for a digital transformation strategy.

是的。不，很高興收到你的來信，大衛。無論它是否會繼續成為我們 K-12 中成長最快的細分市場，從成長持久性的角度來看，這是一種即將發生的數位轉型。這並不是——一些催化劑是學習損失，而是能夠在課堂上向老師提供即時回饋，了解學生在這些標準上的表現——他們將根據這些標準進行測試到了年底，這種情況將會持續下去。擁有一個能夠解決這個問題的解決方案與為數位轉型策略建立一個學習管理系統同樣重要。

So I absolutely believe it's going to be -- it is going to drive growth for us. It's not going to be a flash in the pan, and it's going to be an important part of anybody's digital transformation strategy and the platform that supports it. You're right, if they buy the whole stack from us through the assessment space, including the content as well as the assessment management system, then it can be 2 to 3x than the average selling price of the Canvas implementation. So it does create for us a long-term growth opportunity. We still got low penetration, low double-digit penetration into the existing base with our assessment solution. So there's still a lot of room to grow from a growth perspective there.

所以我絕對相信這將推動我們的成長。它不會是曇花一現，它將成為任何人數位轉型策略及其支援平台的重要組成部分。你是對的，如果他們透過評估空間從我們這裡購買整個堆疊，包括內容以及評估管理系統，那麼它可能是 Canvas 實施的平均售價的 2 到 3 倍。因此，它確實為我們創造了長期成長機會。透過我們的評估解決方案，我們對現有基地的滲透率仍然很低，低兩位數的滲透率。因此，從成長的角度來看，那裡仍然有很大的成長空間。

Super helpful. And then maybe one brief follow-up before we -- I let you guys wrap it up. On the LMS and K-12, obviously, half of the market is still unvended, using free lightweight solutions. I wanted to get your view on what's the catalyst that gets that -- these districts to really start paying for premium LMS. Is it maybe that some of these -- just continue to -- can always use these free lightweight solutions? Or maybe is it some of these ESSER dollars start to get towards back half of '24, use it or lose it? Is that maybe a good driver there? And maybe, again, is there any percentage that you think just will forever remain unpaid?

超級有幫助。然後也許是我們之前的一個簡短的後續行動——我讓你們總結一下。顯然，在 LMS 和 K-12 上，一半的市場仍然無人販售，使用的是免費的輕量級解決方案。我想聽聽您對實現這一目標的催化劑是什麼——這些學區真正開始為優質 LMS 付費。也許其中一些 - 只是繼續 - 可以始終使用這些免費的輕量級解決方案？或者也許這些 ESSER 美元中的一些開始到 24 世紀下半年，使用它或失去它？那可能是個好司機嗎？或許，您認為是否有比例的人將永遠不會得到報酬？

Yes. It is -- it isn't -- there's an interesting dynamic and a little bit of everything that you talked about, Brent (sic) [David]. I do think the ESSER funding is -- creates a good backdrop as far as making decisions about when to start a true digital transformation. That's really the driver for a district that wants to make an investment in a commercial element like ours or -- and really, it takes time for -- and it takes maturity within the district to be ready for something like that. And so they tend to be very planful, take time.

是的。是的，不是的，布倫特（原文如此）[大衛]，有一種有趣的動態以及你談到的所有內容。我確實認為 ESSER 資金為決策何時開始真正的數位轉型創造了良好的背景。這確實是一個想要對像我們這樣的商業元素進行投資的地區的驅動力，或者說——實際上，這需要時間——並且需要該地區的成熟度來為類似的事情做好準備。所以他們往往非常有計劃，需要時間。

What we're driving is they want more enterprise features, right? They want more integrations with the ecosystem. They want better visibility across the entire district, not just in a classroom or in a school. They'll want better analytics, for instance, integrated into those solutions. All of those will be kind of the drivers where they really want to take that step in their digital transformation.

我們的目標是他們想要更多的企業功能，對吧？他們希望與生態系統有更多的整合。他們希望在整個學區有更好的可見性，而不僅僅是在教室或學校。例如，他們希望將更好的分析整合到這些解決方案中。所有這些都將成為他們真正想要在數位轉型中邁出這一步的驅動力。

So I do think, again, as I said earlier, ESSER is a good backdrop for this, and we feel good about that pace of conversion from free to paid. Whether or not there's a portion that does ever lose to an enterprise, eventually, everybody is going to need to at some level. Maybe it was a school with 30 or 40 kids and that might not be. But everybody at some point is going to need to digitally transform that experience in the classroom.

因此，我確實認為，正如我之前所說，埃索是一個很好的背景，我們對從免費到付費的轉變速度感到滿意。無論企業是否會損失一部分，最終，每個人都在某種程度上需要這樣做。也許這是一所有 30 或 40 個孩子的學校，但也可能不是。但每個人在某個時候都需要對課堂體驗進行數位化改造。

There are no further questions. I'd like to turn the call back to CEO Steve Daly for closing remarks.

沒有其他問題了。我想將電話轉回給執行長史蒂夫戴利 (Steve Daly)，讓其致閉幕詞。

Great. Thank you. Thank you, again, for the insightful questions, as always. As you've heard today, we believe our commitment to innovation, customer success and disciplined investments in our platform will continue to unlock the opportunities and drive value for our customers and shareholders in the dynamic education technology landscape. We're excited about the future, and we look forward to continuing to drive that combination of top line growth as well as profitability in the months and years ahead. So thank you for your time and participation and look forward to speaking with you again.

偉大的。謝謝。再次感謝您一如既往地提出富有洞察力的問題。正如您今天所聽到的，我們相信，我們對創新、客戶成功和對平台的嚴格投資的承諾將繼續在動態的教育科技領域為我們的客戶和股東帶來機會並創造價值。我們對未來感到興奮，並期待在未來幾個月和數年繼續推動營收成長和獲利能力的結合。感謝您的時間和參與，並期待再次與您交談。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。