Logility Supply Chain Solutions Inc (LGTY) 2023 Q3 法說會逐字稿

Good day everyone and welcome to today's American Software Third Quarter Fiscal Year 2023 Preliminary Earnings Results. (Operator Instructions). It is now my pleasure to turn the conference over to your CFO of American Software Vince Klinges. Please go ahead.

大家好，歡迎來到今天的 American Software 2023 財年第三季度初步收益結果。 （操作員說明）。現在我很高興將會議轉交給您的 American Software 首席財務官 Vince Klinges。請繼續。

Thank you, Cloe and good afternoon everyone and welcome to American Software's Third Quarter Fiscal 2023 Earnings Conference Call. On the call with me is Allan Dow, President and CEO of American Software. Allan will provide some opening remarks and then I will review the numbers. But first, our safe harbor statement.

謝謝 Cloe，大家下午好，歡迎來到 American Software 的 2023 財年第三季度收益電話會議。與我通話的是 American Software 總裁兼首席執行官 Allan Dow。艾倫將提供一些開場白，然後我將審查這些數字。但首先，我們的安全港聲明。

This conference call may contain forward-looking statements, including statements regarding among other things, our business strategy and growth strategy. Any such forward-looking statements speak only as of this date. These forward-looking statements are based largely on our expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control.

本次電話會議可能包含前瞻性陳述，包括關於我們的業務戰略和增長戰略等的陳述。任何此類前瞻性陳述僅在該日期有效。這些前瞻性陳述主要基於我們的預期，並受到許多風險和不確定性的影響，其中一些無法預測或量化，並且超出我們的控制範圍。

Future developments and actual results could differ materially from those set forth in or contemplated by or underlying the forward-looking statements. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made on this call.

未來的發展和實際結果可能與前瞻性陳述中闡述的、預期的或潛在的有重大差異。有許多因素可能導致實際結果與本次電話會議上的聲明所預期的結果大相徑庭。

Such factors include, but are not limited to changes and uncertainty in general economic conditions, the growth rate of the market for our products and services, the timely availability and market acceptance of these products and services, the effect of competitive products and pricing and other competitive pressures and the irregular and unpredictable pattern of revenues.

這些因素包括但不限於一般經濟狀況的變化和不確定性、我們產品和服務的市場增長率、這些產品和服務的及時可用性和市場接受度、競爭產品和定價的影響以及其他競爭壓力以及不規則和不可預測的收入模式。

In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. At this time I will turn the call over to Allan for our opening remarks.

鑑於這些風險和不確定性，無法保證前瞻性信息將被證明是準確的。此時，我會將電話轉給艾倫，讓他發表開場白。

Thank you, Vince. We delivered strong cloud revenue growth and adjusted EBITDA in our third quarter results. Similar to last quarter our revenue was mostly in line with expectations. With the exception of our professional services revenue where we were affected by a few factors, which I'll address in a few minutes.

謝謝你，文斯。我們在第三季度業績中實現了強勁的雲收入增長和調整後的 EBITDA。與上一季度相似，我們的收入基本符合預期。除了我們的專業服務收入外，我們受到一些因素的影響，我將在幾分鐘內解決。

We achieved 20% year-over-year growth in our subscription revenue and have maintained a very solid maintenance retention rate, thus delivering recurring revenue that represents 70% of our total revenue. This is the first time our recurring revenue has broken into the 70% range. Reflecting our strong cloud revenue growth and maintenance retention, total revenue in our Supply Chain segment was up 3.5% year-over-year despite the slowdown in services.

我們的訂閱收入實現了 20% 的同比增長，並保持了非常穩健的維護保留率，因此經常性收入占我們總收入的 70%。這是我們的經常性收入首次突破 70% 的範圍。反映我們強勁的雲收入增長和維護保留率，儘管服務放緩，但我們供應鏈部門的總收入同比增長 3.5%。

In regard to the decline in professional services, the pullback was most prominent in our IT consulting business, which is more sensitive to macroeconomic conditions and started to decline late last year. However, we also saw a significant number of Supply Chain projects paused during the holiday period as clients focus their attention on business performance.

在專業服務的下滑方面，我們的 IT 諮詢業務回落最為突出，該業務對宏觀經濟狀況更為敏感，並於去年年底開始下滑。然而，我們也看到大量供應鏈項目在假期期間暫停，因為客戶將注意力集中在業務績效上。

We have just recently seen a recovery of project activity in the Supply Chain segment and are working diligently to continue that trend into the new calendar year. Furthermore, we plan to leverage our service delivery partners in ongoing and new projects to allow for a more profitable and flexible model where we can shift resources with market demands more easily.

我們最近剛剛看到供應鏈領域的項目活動有所復甦，並且正在努力將這一趨勢延續到新的日曆年。此外，我們計劃在正在進行的項目和新項目中利用我們的服務交付合作夥伴，以實現更有利可圖和更靈活的模式，我們可以更輕鬆地根據市場需求轉移資源。

As we head into our fiscal year-end, we're pleased to see a renewed growth in our pipeline. However, the potential for a recession continues to create uncertainty in our core consumer goods and retail markets. We have seen both our existing customers and prospects carefully scrutinizing their costs, resulting in longer collection times and elongated sales cycles.

在我們進入財政年度結束之際，我們很高興看到我們的管道重新增長。然而，經濟衰退的可能性繼續給我們的核心消費品和零售市場帶來不確定性。我們已經看到我們的現有客戶和潛在客戶都在仔細審查他們的成本，從而導致收集時間更長和銷售週期延長。

Although we expect to recover progress in the fourth quarter, it will have a diminished impact on the revenue for the fiscal year, delaying the capture of subscription revenue and professional services while projects go through a ramp-up period.

儘管我們預計第四季度會恢復進展，但它對本財年收入的影響會減弱，從而在項目經歷加速期時推遲訂閱收入和專業服務的獲取。

Given the current market conditions and the ramp time on revenue delivery, we're making a final adjustment to our guidance for fiscal year '23. Due primarily to the reduction in our expectations for professional services, we're lowering our fiscal year revenue guidance to fall between $123.5 million and $125.5 million.

鑑於當前的市場狀況和收入交付的加速時間，我們正在對 23 財年的指導進行最終調整。主要是由於我們降低了對專業服務的期望，我們將本財年收入指引下調至 1.235 億美元至 1.255 億美元之間。

We are also reducing our recurring revenue guidance slightly to land between $84.5 million and $85.5 million. The revised range reflects both the delayed start of projects in our backlog which impacts the timing of when we can recognize subscription revenues and some added conservatism given the challenging economic conditions and our extended collection times.

我們還將經常性收入指引略微下調至 8450 萬美元至 8550 萬美元之間。修訂後的範圍反映了我們積壓項目的延遲啟動，這會影響我們確認訂閱收入的時間，以及考慮到充滿挑戰的經濟條件和我們延長的收集時間，一些額外的保守主義。

To be clear, we have been through these cycles before and we remain confident in the strength of our customer relationships. We have not seen any uptick in churn thus far, but considering our experience during the pandemic we want to ensure we can deliver on our financial guidance. Finally, even with our lower revenue outlook, we're maintaining our prior adjusted EBITDA expectations of $18 million to $20 million.

需要明確的是，我們之前經歷過這些週期，我們對客戶關係的實力仍然充滿信心。到目前為止，我們還沒有看到客戶流失率有任何上升，但考慮到我們在大流行期間的經驗，我們希望確保我們能夠實現我們的財務指導。最後，即使我們的收入前景較低，我們仍維持之前調整後的 EBITDA 預期為 1800 萬至 2000 萬美元。

In summary, we're pleased with the third quarter results in the Supply Chain segment during these uncertain times and expect to see further progress during the calendar year ahead. We will remain disciplined with our investments in the near term, but continue to see a large growing market opportunity for our supply chain solutions.

總而言之，我們對供應鏈部門在這些不確定時期的第三季度業績感到滿意，並希望在未來的日曆年看到進一步的進展。我們將在短期內對我們的投資保持紀律，但我們的供應鏈解決方案將繼續看到巨大的增長市場機會。

At this time I'll turn the call over to Vince, who will provide the details on our financial results.

此時我會將電話轉給文斯，他將提供我們財務結果的詳細信息。

Thank you, Allan. Total revenues for the third quarter were $31 million, that was a decrease of 4% compared to $32.4 million in the same period last year. Subscription fees increased 20% year-over-year to $13 million, while software license fees were $1 million for both the current and prior year period.

謝謝你，艾倫。第三季度的總收入為 3100 萬美元，與去年同期的 3240 萬美元相比下降了 4%。訂閱費同比增長 20% 至 1300 萬美元，而軟件許可費在本年度和上一年期間均為 100 萬美元。

Professional services and other revenues decreased 27% to $8.4 million compared to $11.4 million in the same period last year. The year-over-year decrease reflects a 15% decrease in our supply chain management unit due to a pause in project activity around the holidays. And we also had a 39% decrease in our IT consulting business unit, the Proven Method, which tends to be more sensitive to economic conditions.

專業服務和其他收入下降 27% 至 840 萬美元，而去年同期為 1140 萬美元。同比下降反映了由於假期前後項目活動暫停，我們的供應鏈管理部門減少了 15%。我們的 IT 諮詢業務部門 Proven Method 也減少了 39%，該部門往往對經濟狀況更為敏感。

Maintenance revenues declined 5% year-over-year to $8.6 million, reflecting our normal falloff rate this quarter. Total recurring revenues comprised of both subscription and maintenance revenues represented 70% of our total revenues in the third quarter, compared to 62% in the same period last year.

維護收入同比下降 5% 至 860 萬美元，反映了我們本季度的正常下降率。包括訂閱和維護收入在內的經常性總收入占我們第三季度總收入的 70%，而去年同期為 62%。

So our gross margin increased to 60% for the current period compared to 58% in the same period last year. Subscription fee margin was 69% for the current quarter compared to 68% in the prior year period. Excluding the noncash amortization of intangibles of $425,000 in the third quarter, subscription gross margin would have been 72% versus 74% last year. So the amortization of cap software last year was $628,000.

因此，我們本期的毛利率增至 60%，而去年同期為 58%。本季度的訂閱費利潤率為 69%，而去年同期為 68%。剔除第三季度 425,000 美元的無形資產非現金攤銷，訂閱毛利率為 72%，而去年同期為 74%。因此，cap software 去年的攤銷額為 628,000 美元。

License fee margin was 65% compared to 76% in the same period last year. Our services margin decreased to 24% compared to 30% last year due to lower revenues. Our maintenance margin was 81% for the current quarter compared to 80% in the prior year period. Our gross R&D expenses were 14% of total revenues for the current and prior year period. Sales and marketing expenses were 17% of revenues for the current quarter compared to 16% in the same period last year.

許可費利潤率為 65%，而去年同期為 76%。由於收入下降，我們的服務利潤率從去年的 30% 下降到 24%。我們本季度的維持利潤率為 81%，而去年同期為 80%。我們的總研發費用佔本年度和上一年期間總收入的 14%。本季度銷售和營銷費用佔收入的 17%，而去年同期為 16%。

Our G&A expenses were 19% of total revenues for the current quarter compared to the 18% last year. So on a GAAP basis, our operating income decreased 9% to $3 million this quarter compared to $3.2 million in the same quarter of last year. Net income increased 14% to $3.3 million or earnings per diluted share of $0.10 compared to net income of $0.29 or $0.09 earnings a diluted share last year.

我們的 G&A 費用佔本季度總收入的 19%，而去年為 18%。因此，根據 GAAP，本季度我們的營業收入下降 9% 至 300 萬美元，而去年同期為 320 萬美元。與去年淨收入 0.29 美元或攤薄後每股收益 0.09 美元相比，淨收入增長 14% 至 330 萬美元或每股攤薄收益 0.10 美元。

On an adjusted basis, which excludes noncash amortization of intangible expense related to acquisitions and stock-based compensation expense, adjusted operating income increased 2% to $4.5 million compared to $4.4 million in the same period last year.

在調整後的基礎上，不包括與收購相關的無形費用的非現金攤銷和基於股票的補償費用，調整後的營業收入增長 2% 至 450 萬美元，而去年同期為 440 萬美元。

Adjusted EBITDA decreased 6% to $5 million from $5.3 million last year. Adjusted net income increased 18% to $4.5 million or adjusted earnings diluted share of $0.13 for the third quarter, and that compares to adjusted net income of $3.8 million or adjusted earnings diluted share of $0.11 in the same period last year.

調整後的 EBITDA 從去年的 530 萬美元下降 6% 至 500 萬美元。第三季度調整後淨收入增長 18% 至 450 萬美元或調整後攤薄收益 0.13 美元，而去年同期調整後淨收入為 380 萬美元或調整後攤薄收益 0.11 美元。

International revenues this quarter were approximately 20% of total revenues. That compares to 16% in the same period last year. Taking a look at the year-to-date basis, the 9-month period. Total revenues increased 1% year-over-year to $93.7 million and that's due to a 21% increase in subscription fees to $37.4 million. License fees were $2 million. Professional services declined by 12% to $27.9 million and maintenance revenues declined 5% to $26.4 million.

本季度國際收入約佔總收入的 20%。相比之下，去年同期為 16%。看看年初至今的 9 個月期間。總收入同比增長 1% 至 9370 萬美元，這是由於訂閱費增長 21% 至 3740 萬美元。許可費為 200 萬美元。專業服務收入下降 12% 至 2790 萬美元，維護收入下降 5% 至 2640 萬美元。

Adjusted operating income for the fiscal '23 year-to-date increased to $12.8 million, representing an operating margin of 14% compared to 8 -- excuse me, $10.8 million or 12% margin in the same period last year. Our adjusted EBITDA increased 6% to $14.6 million compared to $13.8 million in the same period last year, representing adjusted EBITDA margin of 16%.@@

23 財年迄今的調整後營業收入增加到 1280 萬美元，營業利潤率為 14%，而去年同期為 1080 萬美元或 12%。與去年同期的 1380 萬美元相比，我們調整後的 EBITDA 增長了 6% 至 1460 萬美元，調整後的 EBITDA 利潤率為 16%。@@

Adjusted net income totaled $11.1 million or $0.33 per diluted share compared to $11.6 million or $0.34 per diluted share in the same period last year. Our remaining performance obligation which we refer to as backlog, was $119 million. Our total RPO was down 8% compared to the prior year, and that was due to shorter contract durations from recent deals. We note that our short-term RPO actually increased 7% from the same period last year and was also up sequentially.

調整後淨收入總計 1110 萬美元或攤薄後每股收益 0.33 美元，而去年同期為 1160 萬美元或攤薄後每股收益 0.34 美元。我們稱為積壓的剩餘履約義務為 1.19 億美元。與上一年相比，我們的總 RPO 下降了 8%，這是由於近期交易的合同期限縮短所致。我們注意到，我們的短期 RPO 實際上比去年同期增長了 7%，而且環比也有所上升。

Looking at the balance sheet, our financial position remains strong with cash and investments at approximately $105 million at the end of the quarter. During the quarter we paid $3.7 million in dividends. Our days sales outstanding as of January 31, 2023 was 101 days for the current period compared to 77 days in the prior year period.

從資產負債表來看，我們的財務狀況依然強勁，本季度末現金和投資約為 1.05 億美元。本季度我們支付了 370 萬美元的股息。截至 2023 年 1 月 31 日，我們本期的銷售未清天數為 101 天，而去年同期為 77 天。

This increase is primarily due to timing of large annual SaaS billings usually in the second half of our fiscal year and some delays in collections when compared to last year. We remain confident that our ability to collect on our outstanding receivables due to the high-quality nature of our customer base.

這一增長主要是由於 SaaS 年度大額賬單的時間通常在我們財政年度的下半年，以及與去年相比收款有所延遲。由於我們客戶群的高質量，我們仍然相信我們有能力收回未償還的應收賬款。

As Allan indicated, we have revised our guidance on revenue to the range of $123.5 million to $125.5 million on the high end. This includes recurring revenue of $84.5 million to $85.5 million. We note that the low end of our recurring revenue guidance assumes an uptick in churn due to our experience in prior recessions, but we -- but so far we've not seen any indication of our customers being in distress.

正如 Allan 所指出的，我們已經將我們的收入指引修改為 1.235 億美元至 1.255 億美元的高端。這包括 8450 萬至 8550 萬美元的經常性收入。我們注意到，由於我們在之前的經濟衰退中的經驗，我們的經常性收入指引的低端假設客戶流失率上升，但我們 - 但到目前為止，我們還沒有看到任何跡象表明我們的客戶陷入困境。

For adjusted EBITDA, we maintain our prior guidance of $18 million to $20 million. And at this time I'd like to turn the call over to questions.

對於調整後的 EBITDA，我們維持之前 1800 萬至 2000 萬美元的指導。現在我想將電話轉為提問。

(Operator Instructions) And we'll take our first question from Zach Cummins.

（操作員說明）我們將從 Zach Cummins 那裡回答我們的第一個問題。

This is Ethan Widel calling in for Zach Cummins. To start, looking at the elongation of sales cycles, can you give us a little additional insight into what's driving that? And do you anticipate customers beginning to move forward with decisions as they become more comfortable with the macro situation and can finalize budgets?

我是 Ethan Widel，正在為 Zach Cummins 打電話。首先，看看銷售週期的延長，你能給我們一些額外的洞察力嗎？隨著客戶對宏觀形勢更加適應並可以最終確定預算，您是否預計客戶會開始做出決策？

Yes. Great question. Thank you so much for that. That is precisely -- the selection process is probably running at the same pace right now. We're not seeing much difference there. It's that final approval phase where they go seek funding and reach out to the CFO's desk. I'm looking across at Vince who are being a little conservative and just trying to balance their expenditures against revenues that are coming in and timing of projects and that sort of thing.

是的。很好的問題。對此感激不盡。準確地說，選擇過程現在可能正在以同樣的速度進行。我們在那裡沒有看到太大的區別。這是他們尋求資金並聯繫 CFO 辦公桌的最後批准階段。我正在看文斯，他們有點保守，只是試圖平衡他們的支出與即將到來的收入以及項目的時間安排和諸如此類的事情。

So that's the delay cycle. The -- actually running the sales cycle, getting to a selection, getting into a contract process is pretty consistent. But we're seeing extended times on those approvals. But it's starting to turn. I think that's the other good news we see in the recent periods here since the New Year. It's picked back up again.

這就是延遲週期。 - 實際上運行銷售週期，進行選擇，進入合同過程是非常一致的。但我們看到這些批准的時間延長了。但它開始轉向了。我認為這是自新年以來我們最近在這裡看到的另一個好消息。又撿回來了。

We've seen it before. Vince and I and many of the others here have been through a number of these recessions. And the pause in the panic is really happens at the front end when the word recession comes out. As you get later in the cycle and people realize that they still got a business to run and things will keep going, then they lean back into those important projects like supply chain projects.

我們以前見過。文斯和我以及在座的許多人都經歷過多次這樣的經濟衰退。而恐慌中的停頓確實發生在前端，當衰退這個詞出現時。隨著你進入周期的後期，人們意識到他們仍然有業務要運行並且事情會繼續下去，然後他們會重新投入到那些重要的項目中，比如供應鏈項目。

And I think that answers my second question. It sounds like project activity is starting to pick up since the holidays. Do you expect this past quarter to be the trough for professional services?

我認為這回答了我的第二個問題。聽起來項目活動從假期開始就開始活躍起來。您預計上個季度會成為專業服務的低谷嗎？

Yes. I think for a couple of factors. One, number one is it's a holiday period. It's always a light period anyway. This year we saw kind of an unusual pattern partly due to the way the days fall in the calendar. It was a nice break, if you wanted to take time off to the way Christmas and New Year's fell, that week in between those 2 as a full solid week and it was a full stop on a lot of projects as things shut down.

是的。我認為有幾個因素。第一，第一是假期。無論如何，這總是一個輕鬆的時期。今年我們看到了一種不尋常的模式，部分原因是日曆中日子的下降方式。這是一個很好的休息時間，如果你想抽出時間享受聖誕節和新年的到來，那一周在這 2 週之間是一個完整的堅實的一周，並且隨著事情的結束，許多項目都完全停止了。

So due to the fact that people were really focused on delivering on their financial results, their business performance as I commented before and the way the calendar fell that made a natural break in projects. So we do believe that the worst is behind us. The hardest period is behind us and we'll see a continued recovery from here.

因此，由於人們真正專注於實現他們的財務業績，正如我之前評論的那樣，他們的業務績效以及日曆的下降方式使項目自然中斷。因此，我們確實相信最壞的情況已經過去。最艱難的時期已經過去，我們將從這裡看到持續的複蘇。

That's really helpful. Then one last question for me. Can you provide any update on your M&A pipeline?

這真的很有幫助。然後是最後一個問題。您能否提供有關您的併購管道的任何更新？

Yes, very active. We've continued to expand our reach there. A number of engagements that are going on right now in the due diligence process. We don't have anything that's imminent yet, but the number of prospects we have, the work that's going into it, the folks that are on the other side of the table are open to this discussion at this point.

是的，非常活躍。我們繼續擴大我們在那裡的影響力。盡職調查過程中目前正在進行的一些活動。我們還沒有任何迫在眉睫的事情，但我們擁有的潛在客戶數量、正在進行的工作、坐在桌子另一邊的人們此時都對這個討論持開放態度。

So I think market conditions have probably helped us a bit in our favor there where they're realizing that maybe it's the right time to be part of a bigger firm with a little more reach and a little more stature behind it and it will be helpful for their long-term business prospects as well. So I think we're going to be able to move on a few things in the months ahead.

所以我認為市場條件可能對我們有利，因為他們意識到也許現在是加入一家影響力更大、地位更高的大公司的合適時機，這將有所幫助他們的長期業務前景也是如此。所以我認為我們將能夠在未來幾個月內繼續推進一些事情。

And we move next to Matthew Galinko.

然後我們轉到 Matthew Galinko 旁邊。

I'm curious about, I guess, the mechanics of keeping the EBITDA guidance despite the revenue tweak. Is that just an underlying mix shift strength in higher margin and dip lower margin, yield kind of consistent or are there any changes in hiring plans or pace of headcount additions given some of the delays you're seeing in the macro environment?

我很好奇，我想，儘管收入調整，但保持 EBITDA 指導的機制。鑑於您在宏觀環境中看到的一些延遲，這是否只是更高利潤率和更低利潤率的潛在組合轉變強度，收益率保持一致，或者招聘計劃或員工增加速度是否有任何變化？

Yes, I think Matt nailed it. There is a mix factor as we have a higher dependence of our revenue or higher mix of our revenue coming from subscriptions, is a higher-margin business. So that allows us to deliver to the bottom line a little bit better. We've also been conservative in our hiring, we're still up in headcount. We're still making progress on our headcount, but we're not running at the pace we thought we were going to.

是的，我認為馬特做到了。有一個混合因素，因為我們對收入的依賴性更高，或者來自訂閱的收入組合更高，這是一項利潤率更高的業務。因此，這使我們能夠更好地實現底線。我們在招聘方面也很保守，我們的員工人數仍在增加。我們在人數方面仍在取得進展，但我們並沒有按照我們預期的速度運行。

There's always a lead time in bringing headcount on and being revenue producing. So when you're in a hiring period there's a bit of a hit in that initial phase before those folks become revenue producing. You think about even in the services side or the sales side, it takes a little time for them to ramp up, get familiar with our processes and start delivering on expectations.

在增加員工人數和創收方面總是有提前期。因此，當您處於招聘期時，在這些人開始創造收入之前的初始階段會受到一些打擊。你想想，即使是在服務方面或銷售方面，他們也需要一點時間來提升、熟悉我們的流程並開始實現預期。

So just the slowdown in the hiring period has helped in the hiring process has helped us a bit on the EBITDA margin also. So those 2 factors have weighed in and we feel really good about where we're going to land on the margin.

因此，招聘期的放緩對招聘過程有所幫助，也對我們的 EBITDA 利潤率有所幫助。因此，這兩個因素已經產生了影響，我們對我們將要落在邊緣的地方感覺非常好。

Got it. All right. And then I guess just a follow-up on subscription margins and outlook. Any update on how you're thinking about the evolution of that as that revenue line and business scaled up?

知道了。好的。然後我想只是對訂閱利潤率和前景的跟進。隨著收入線和業務的擴大，你如何看待它的演變有任何更新嗎？

Yes, Matt. I think we've talked about this before. But we're running at kind of the low 70s. If you take the amortization of cap software out and we kind of anticipate next year, we'll start getting into the mid-70s and maybe towards the end of the year start trending to 70 -- the high end of the 70s.

是的，馬特。我想我們之前已經談過這個了。但我們的運行速度大約是 70 年代的低點。如果你把上限軟件的攤銷拿出來，我們預計明年，我們將開始進入 70 年代中期，也許到年底開始趨向於 70——70 年代的高端。

But it's going to be predicated on how the bookings perform for next year. But once we know that, then we should have some good certainty on getting the gross margins above 75%.

但這將取決於明年的預訂情況。但是一旦我們知道了這一點，那麼我們就應該有把握將毛利率提高到 75% 以上。

(Operator Instructions). Will move next to Anja Soderstrom.

（操作員說明）。將搬到 Anja Soderstrom 旁邊。

I have a couple of follow-ups. So first on the hiring, how do you see that environment now? We hear a lot about layoffs. But it doesn't seem like people are leaving for unemployment, they're moving somewhere else. And have you noticed that it's easing up and has it become maybe even better for you to find talent and at a better expense?

我有幾個後續行動。那麼首先是關於招聘，您如何看待現在的環境？我們聽到很多關於裁員的消息。但似乎人們並不是因為失業而離開，而是搬到了其他地方。你有沒有註意到它正在緩和，你是否可以更好地找到人才並以更好的費用？

I wish the last part of that was true. Better expense would be wonderful. We haven't really seen a pullback. What we've seen the slowdown in the inflation rate, labor inflation rate certainly. We are finding more candidates today than we were in the midst of the pandemic, 6 to 9, 12 months ago. So the recruiting pace is much better.

我希望最後一部分是真的。更好的費用會很棒。我們還沒有真正看到回調。我們所看到的通貨膨脹率放緩，當然是勞動力通貨膨脹率。我們今天找到的候選人比 12 個月前 6 到 9 個月大流行期間還要多。所以招聘速度要好得多。

Typically we were finding 1 or 2 candidates for an open position and trying to make a decision there. Now we're in the range of 4% to 5% that we can select from. We still are in the hiring process. We've got a number of positions we'd love to fill. And as we find the right folks for that, we're going to pull them in.

通常，我們會為一個空缺職位尋找 1 或 2 名候選人，並試圖在那裡做出決定。現在我們可以從 4% 到 5% 的範圍內進行選擇。我們仍在招聘過程中。我們有很多職位空缺。當我們為此找到合適的人選時，我們將把他們拉進來。

We are not laying off. Although our peers in the organization and the technology space as we all know in general is doing some cutbacks. So it's enriched our environment for recruiting. So we feel pretty good about that.

我們沒有裁員。儘管眾所周知，我們在組織和技術領域的同行通常都在進行一些裁員。因此，它豐富了我們的招聘環境。所以我們對此感覺很好。

And also among your customers, is there any sort of grouping that you can call out that's maybe a little bit more challenging -- challenge than others or?

在你的客戶中，是否有任何類型的分組你可以指出，這可能更具挑戰性——比其他人更具挑戰性？

Hate to pick on any bond, but the retailers are always tough. They're naturally tough. That's their business model. But I think they're the front line of what the economic conditions are all about and they're experiencing some of that. But in general as Vince commented, we're not at a point where we're seeing outright cancellations or churn.

討厭挑剔任何債券，但零售商總是強硬的。他們天生堅強。這就是他們的商業模式。但我認為他們是經濟狀況的前線，他們正在經歷其中的一些。但總的來說，正如 Vince 評論的那樣，我們還沒有看到完全取消或流失的地步。

We're just, much like I commented earlier on about people's scrutinizing their authorizations to start new projects. They're doing the same thing on every invoice and looking for an opportunity to find another round of correct this and put the purchase order number on it. And then I'll put it back in the queue and that will buy me another 30 days before I have to send the checkout.

我們就像我之前評論過的那樣，人們正在審查他們啟動新項目的授權。他們在每張發票上都做同樣的事情，並尋找機會找到另一輪更正此問題並將採購訂單號放在上面。然後我會把它放回隊列中，這將在我必鬚髮送結賬前再給我 30 天的時間。

So that's generally what we're seeing as opposed to outright. We're not going to send the check in kind of conversations. Just taking a little extended time. I think as Vince said though, the DSO number is not reflective only of our collections challenges. We had a tremendous billing cycle as we came into the New Year. January being in -- falling in our third quarter.

所以這通常是我們所看到的，而不是直接的。我們不會發送支票進行對話。只是需要稍微延長時間。我認為正如 Vince 所說，DSO 數字並不僅僅反映了我們的收藏挑戰。進入新年時，我們的賬單週期非常長。一月在 - 在我們的第三季度下降。

So we'll see an uptick in collections, an uptick in our cash position. So I think we'll land at the end of next quarter in quite a good position.

所以我們會看到收款量增加，現金頭寸增加。所以我認為我們將在下個季度末處於一個非常好的位置。

That was all for me.

這就是我的全部。

Excellent. Thank you Anja.

出色的。謝謝安雅。

(Operator Instructions). And it does appear there are no further questions at this time.

（操作員說明）。現在看來確實沒有其他問題了。

Cloe, thank you for your assistance this afternoon and thank you for all the participants who joined us this afternoon on our third quarter earnings call. We look forward to getting back with all of you in a few months and talking about the fourth quarter. Have a good evening.

Cloe，感謝您今天下午的協助，並感謝今天下午參加我們第三季度財報電話會議的所有參與者。我們期待在幾個月後與大家一起討論第四季度。晚上好。