Logility Supply Chain Solutions Inc (LGTY) 2024 Q3 法說會逐字稿

Hello and welcome to the third-quarter fiscal year 2024 earnings results conference. (Operator Instructions)

您好，歡迎來到 2024 財年第三季財報發表會。（操作員說明）

Please note that this call is being recorded and I will be standing by should you need anything.

請注意，此通話正在錄音，如果您需要任何幫助，我將隨時待命。

I would now like to turn the conference over to Vince Klinges, CFO of American Software. Please begin.

現在我想將會議轉交給美國軟體公司財務長文斯克林格斯 (Vince Klinges)。請開始。

Thank you and good afternoon, everyone, and welcome to American Software's third-quarter fiscal 2024 earnings call. With me on the call is Allan Dow, President and CEO of American Software. Alan will provide some opening remarks and then I will review the numbers.

謝謝大家，大家下午好，歡迎參加美國軟體公司 2024 財年第三季財報電話會議。與我一起參加電話會議的是美國軟體公司總裁兼執行長艾倫·道 (Allan Dow)。艾倫將發表一些開場白，然後我將回顧這些數字。

But first, our Safe Harbor statement. 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.

但首先，我們的安全港聲明。本次電話會議可能包含前瞻性聲明，包括有關我們的業務策略和成長策略等的聲明。任何此類前瞻性陳述僅代表當前情況。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，其中一些風險和不確定性無法預測或量化，並且超出了我們的控制範圍。

Future developments and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There are a number of risks -- a number of factors that could cause actual results to differ materially from those anticipated by statements made on this call. 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 effective competitive products and pricing and other competitive pressures, and the irregular and unpredictable pattern of revenues.

未來的發展和實際結果可能與前瞻性陳述中闡述、預期或潛在的結果有重大差異。存在許多風險－許多因素可能導致實際結果與本次電話會議中聲明的預期有重大差異。這些因素包括但不限於總體經濟狀況的變化和不確定性、我們的產品和服務的市場成長率、這些產品和服務的及時可用性和市場接受度、有效競爭的產品和定價以及其他競爭性因素。壓力以及不規則且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.

鑑於這些風險和不確定性，無法保證前瞻性資訊將被證明是準確的。

At this time, I'd like to turn the call over to Allan for opening remarks.

現在，我想將電話轉給艾倫致開幕詞。

Thank you, Vince. Good afternoon, everyone, and thank you for joining us today. Our third quarter was one of the busiest periods we've seen in the last year and a half, particularly as we entered into the new calendar year. Our clients and prospects are reengaging on transformational supply chain initiatives that have been in the works for some time.

謝謝你，文斯。大家下午好，感謝您今天加入我們。我們的第三季是過去一年半中最繁忙的時期之一，特別是在我們進入新的日曆年。我們的客戶和潛在客戶正在重新參與已經實施了一段時間的供應鏈轉型計畫。

And while we continue to experience some delays in the larger deals, the demand environment appears to be improving. Against this backdrop, our third-quarter results were in line with our expectations, and we remain on track to deliver the fiscal year 2024 guidance we provided last quarter.

儘管我們在大型交易中繼續遇到一些延遲，但需求環境似乎正在改善。在此背景下，我們第三季的業績符合我們的預期，我們仍有望實現上季提供的 2024 財年指引。

Before I review the third-quarter results in more detail, I'd like to provide an update on the integration of Garvis, which we've rebranded as DemandAI plus and represents the next generation demand intelligence platform. Our teams have been fully integrated and we're actively collaborating on both sales opportunities and our product roadmap.

在更詳細回顧第三季業績之前，我想先介紹一下 Garvis 整合的最新情況，我們已將其重新命名為 DemandAI plus，代表下一代需求智慧平台。我們的團隊已經完全整合，我們正在積極合作銷售機會和產品路線圖。

From a go-to-market perspective, we've continued to leverage pilots to gain access to new strategic accounts. However, the primary emphasis with both new prospects and our existing client community is to drive towards rapid deployment of DemandAI plus into full production use as quickly as possible.

從進入市場的角度來看，我們繼續利用試點來獲得新的策略客戶。然而，新的潛在客戶和我們現有的客戶社群的主要重點是盡快推動將 DemandAI plus 快速部署到全面生產使用中。

We expect to close several longer-term engagements in the fourth quarter, which resulted from winding down the previous pilot engagements and converting them to long-term contracts with broader production deployments.

我們預計將在第四季度完成幾項長期合同，這是由於先前的試點合約逐漸減少，並將其轉換為具有更廣泛生產部署的長期合約。

In addition, our pipeline of lift and shifts has increased dramatically as we continue to drive awareness of our AI native demand forecasting capabilities and the first production-worthy use of generative AI capabilities to streamline decision-making for supply chain planning across our client community.

此外，隨著我們不斷提高對人工智慧原生需求預測能力的認識，以及首次使用生成式人工智慧功能來簡化整個客戶社群的供應鏈規劃決策，我們的提升和轉變管道也大幅增加。

In fact, we've already seen some existing agility accounts adopt DemandAI plus. One is a rapid-growing US-based coffee brand with a highly promoted product line. The DAI plus solution will help them better manage the spikes in demand they often experience and determine the most cost-effective promotions to profitably grow their company. We are encouraged by this early success and believe that DemandAI plus will play a critical role in the migration of our existing clients to the cloud in the coming years.

事實上，我們已經看到一些現有的敏捷帳戶採用 DemandAI plus。其中之一是一個快速成長的美國咖啡品牌，擁有高度推廣的產品線。DAI plus 解決方案將有助於他們更好地管理經常遇到的需求高峰，並確定最具成本效益的促銷活動，以實現公司的獲利成長。我們對這一早期成功感到鼓舞，並相信 DemandAI plus 將在未來幾年將我們現有客戶遷移到雲端發揮關鍵作用。

Turning back to our third-quarter results, we're pleased to see another sequential uptick in our backlog as our clients and prospects began to reengage on previously stock hold initiatives. Our revenues largely tracked our internal expectations. But we note that the declines in our maintenance and service revenues respectively were exacerbated by the divestiture of our transportation group and the lower utilization during the holiday periods.

回到我們的第三季業績，我們很高興看到我們的積壓訂單再次連續上升，因為我們的客戶和潛在客戶開始重新參與先前的股票持有計劃。我們的收入很大程度上符合我們的內部預期。但我們注意到，我們的維護和服務收入的下降分別因運輸集團的剝離和假期期間利用率的降低而加劇。

From a profit standpoint, our adjusted EBITDA margin held steady on a sequential basis despite the inclusion of Garvis' expenses for the full quarter and some additions to our product development team. Overall, we continue to see signs of improvement in the demand environment. We have a robust pipeline for entering Q4, leaving us poised for a strong finish to our fiscal year.

從利潤的角度來看，儘管計入了 Garvis 整個季度的費用以及我們產品開發團隊的一些新增人員，但我們調整後的 EBITDA 利潤率環比保持穩定。總體而言，我們繼續看到需求環境改善的跡象。我們擁有進入第四季的強勁管道，為我們的財年畫下完美句點。

Our guidance for fiscal 2024 remains unchanged and we continue to expect to see recurring revenue between $85 million and $88 million, adjusted EBITDA between $14.5 million and $16 million, and total revenue between $100 million to $104 million. Given our performance to date, though, we anticipate reaching at least the midpoint on these respective guidance ranges.

我們對2024 財年的指導維持不變，我們繼續預期經常性收入在8,500 萬美元至8,800 萬美元之間，調整後EBITDA 在1,450 萬美元至1,600 萬美元之間，總收入在1 億美元至1.04億美元之間。不過，考慮到我們迄今為止的表現，我們預計至少會達到這些各自指導範圍的中點。

Finally, I want to provide an update on other initiatives that have been discussed previously. We bought back over $5 million in stock during the third quarter and have now repurchased all of the shares remaining under our prior authorization.

最後，我想提供之前討論過的其他舉措的最新情況。我們在第三季回購了超過 500 萬美元的股票，現在已經回購了我們事先授權的所有剩餘股票。

Yesterday, we announced that our Co-Founder, Executive Chairman, and Treasurer, Jim Edenfield, retired from the Board as well as his role as the company's Treasurer. After over 50 years of leadership for the company, Jim was not only a steadfast leader of our company, which we'll be forever grateful, but he was also a visionary for our industry as a whole. We appreciate Jim's willingness to continue as an advisor to our Board and to me.

昨天，我們宣布聯合創始人、執行主席兼財務主管 Jim Edenfield 從董事會退休，並不再擔任公司財務主管。在領導公司 50 多年之後，吉姆不僅是我們公司堅定的領導者（我們將永遠感激這一點），而且他還是我們整個行業的遠見卓識。我們感謝吉姆願意繼續擔任我們董事會和我的顧問。

Jim Miller, who has been our Board member since 2002, accepted the role as Chairman and along with other Board members, will guide us through the strategic initiatives we had previously laid out. Furthermore, in regards to our dual class structure, we remain engaged with our Class B shareholder to consider various options. Jim's retirement has no impact on the previously announced timeframe for that work.

自 2002 年起擔任我們董事會成員的吉姆·米勒 (Jim Miller) 接受了董事長一職，並將與其他董事會成員一起指導我們實施之前製定的戰略舉措。此外，關於我們的雙層結構，我們仍與 B 類股東接觸，考慮各種選擇。吉姆的退休對先前宣布的這項工作的時間表沒有影響。

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

此時，我會將電話轉給文斯，他將提供我們財務表現的詳細資訊。

Thanks. Thanks, Allan. Before I discuss our results in more detail, I want to remind everyone that due to the divestiture in the second quarter of our IT staffing business unit, the proven method, our financial statements have been recast to show the proven method as discontinuing operations. So our discussion of the current and comparable periods will focus only on the continuing operations from this point on.

謝謝。謝謝，艾倫。在更詳細地討論我們的結果之前，我想提醒大家，由於第二季度剝離了我們的IT 人員配置業務部門（經過驗證的方法），我們的財務報表已被重新編制，以將經過驗證的方法顯示為停止營運。因此，我們對目前和可比較期間的討論將僅關注從此時起的持續經營業務。

The total revenues for the third quarter came in at $25.5 million, a decrease of 7% from $27.4 million, same period last year, and it's primarily due to lower revenues from professional services and maintenance. Our subscription fees increased 9% year over year to $14.1 million from $13 million in the same period last year. Our software license revenue was $0.30 and that compares to $1 million in the prior-year period.

第三季總收入為2,550萬美元，比去年同期的2,740萬美元下降7%，主要是由於專業服務和維護收入下降。我們的訂閱費年增 9%，從去年同期的 1,300 萬美元增至 1,410 萬美元。我們的軟體授權收入為 0.30 美元，而去年同期為 100 萬美元。

Our professional services and other revenues decreased 28% to $3.4 million from $4.8 million the same period a year ago. And that's reflecting lower utilization during our holiday period and our decision to offload more services to our SI partners.

我們的專業服務和其他收入從去年同期的 480 萬美元下降 28% 至 340 萬美元。這反映出我們假期期間的利用率較低，以及我們決定向 SI 合作夥伴提供更多服務。

Our maintenance revenues declined 11% year over year to $7.7 million, reflecting the normal fall-off rate for the quarter, as well as divestiture of our transportation group, which reduced our maintenance revenues by approximately $250,000 for the quarter. Our total recurring revenues comprised of both subscription and maintenance fees represented 86% of our total revenues for the third quarter. And that's up from 79% in the same period last year.

我們的維護收入年減 11% 至 770 萬美元，反映了本季的正常下滑率，以及運輸集團的剝離，導致本季的維護收入減少了約 25 萬美元。我們的經常性總收入（包括訂閱費和維護費）佔第三季總收入的 86%。這比去年同期的 79% 有所上升。

Our gross margin was 64% for the current period compared to 66% in the same period last year. Our subscription fee margin was 65% in the current period compared to 69% in the same period last year. But if you exclude the non-cash amortization of a tangible expense of $1.1 million, our subscription gross margin was 72% in both the current and prior-year period. The amortization of a tangible expense was $425,000 in the same period last year.

本期毛利率為 64%，去年同期毛利率為 66%。本期我們的認購費利潤率為 65%，去年同期為 69%。但如果排除 110 萬美元有形費用的非現金攤銷，我們本期和去年同期的認購毛利率均為 72%。去年同期有形費用攤提為42.5萬美元。

License fee margin was 80% compared to 65% in the same period last year. Our gross margins for services decreased to 21% from 26% last year due to lower revenues, primarily from a dramatically quieter holiday period this year.

許可費利潤率為 80%，而去年同期為 65%。我們的服務毛利率從去年的 26% 下降至 21%，原因是收入下降，主要是因為今年假期期間大幅減少。

Our maintenance margin was 81% for both the current and prior-year period. Our gross R&D expenses were 18% of total revenues for the current period, and that compares to 16% in the same period last year as we filled open rolls during the quarter and had a full quarter of expenses from our acquisition of Garvis.

本期及去年同期的維持利潤率均為 81%。我們的總研發費用佔本期總收入的 18%，而去年同期為 16%，因為我們在本季度完成了開放式研發，並且整個季度的費用都來自收購 Garvis。

Our sales and marketing expenses were 20% of revenues for the current period, and that compares to 18% in the same period last year. Our G&A expenses were 23% of total revenues for the current quarter, and that compares to 21% last year.

我們的銷售和行銷費用佔本期收入的 20%，而去年同期為 18%。我們的一般管理費用佔本季總收入的 23%，而去年為 21%。

On a GAAP basis, our operating income was $0.8 million for this quarter, compared to $2.7 million in the same period last year, primarily due to lower revenues and also the costs related to the Garvis acquisition.

以 GAAP 計算，本季我們的營業收入為 80 萬美元，而去年同期為 270 萬美元，主要是由於收入下降以及與 Garvis 收購相關的成本。

Our net income was $4.1 million. Our earnings diluted share of $0.12 compared to net income of $3.2 million or $0.09 per diluted share, including a net income gain of $1.4 million related to the sale of our transportation group.

我們的淨利潤為 410 萬美元。我們的攤薄收益為 0.12 美元，而淨利潤為 320 萬美元，攤薄後每股收益為 0.09 美元，其中包括與出售運輸集團相關的 140 萬美元淨收益。

On an adjusted basis, which excludes non-cash amortization of intangible expenses related to acquisitions and stock-based compensation expense, our adjusted operating expenses was $3.6 million and that compares to $4.3 million 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和股票補償費用的非現金攤銷，我們調整後的營運費用為 360 萬美元，而去年同期為 430 萬美元。

Our adjusted EBITDA was $4 million, and that compares to $4.8 million same period last year; and adjusted net income of $6.4 million, or adjusted earnings diluted share of $0.19 for the third quarter. And that compares to adjusted net income of $4.4 million or $0.13 in the same period last year.

我們調整後的 EBITDA 為 400 萬美元，去年同期為 480 萬美元；第三季調整後淨利為 640 萬美元，或調整後稀釋收益份額為 0.19 美元。相比之下，去年同期調整後淨利潤為 440 萬美元，即 0.13 美元。

Looking at international revenues, this quarter was approximately 22% of revenues. That's up from 20% last year. Our remaining performance obligation, we exited the quarter with RPO, or what we call is backlog of $119 million.

從國際營收來看，本季約佔總營收的 22%。這比去年的 20% 有所上升。我們剩餘的履約義務，我們以 RPO 結束本季度，或我們所說的積壓 1.19 億美元。

Looking at our balance sheet, our financial position remained strong with total and cash investments of $78.2 million at the end of the quarter. During the quarter, we paid $3.8 million in dividends and repurchased over $0.5 million shares at a total cost of $5.4 million.

從我們的資產負債表來看，我們的財務狀況依然強勁，截至本季末的總投資和現金投資為 7,820 萬美元。本季度，我們支付了 380 萬美元的股息，並回購了超過 50 萬美元的股票，總成本為 540 萬美元。

Our day sales outstanding at the end of January 31, 2024, was 86 days. And that is down from 101 days, same period last year.

截至 2024 年 1 月 31 日，我們的每日銷售額為 86 天。這比去年同期的 101 天有所下降。

Turning to the 2024 outlook, our guidance remains -- as Allan said, our guidance remains unchanged and reflects only our continuing operation. And we believe we will achieve the midpoint of these ranges is the most likely scenario given our year-to-date performance.

談到 2024 年的展望，我們的指導仍然存在——正如艾倫所說，我們的指導保持不變，僅反映了我們的持續運作。我們相信，鑑於我們今年迄今的表現，最有可能出現的情況是我們將達到這些範圍的中點。

So we anticipate revenues in the range of $100 million to $104 million, including recurring revenue of $85 million to $88 million. And adjusted EBITDA, we anticipate in the range of $14.5 million to $16 million.

因此，我們預計營收在 1 億美元至 1.04 億美元之間，其中經常性收入為 8,500 萬美元至 8,800 萬美元。調整後的 EBITDA 預計在 1,450 萬美元至 1,600 萬美元之間。

At this time, I'd like to turn the call over to any questions.

此時，我想將電話轉接至任何問題。

(Operator Instructions)

（操作員說明）

Willow Miller.

威洛·米勒.

Hi, I'm Willow Miller. I'm on for Matt Pfau. Thanks for taking our question. So starting off, how are sales cycles year to date? It sounds like they're improving similar to last quarter. And are there any changes on how customers are thinking about budgets for 2024?

嗨，我是威洛·米勒。我代表馬特·普福。感謝您提出我們的問題。那麼首先，今年迄今的銷售週期如何？聽起來他們的進步與上季類似。客戶對 2024 年預算的看法是否有任何改變？

Willow, thank you for joining us and thank you for the questions. The sales cycles are still extended beyond where they were in years' past. It's really the scrutiny on budgets and whatnot, but we are seeing them start to break loose now.

Willow，感謝您加入我們並感謝您提出的問題。銷售週期仍然比過去幾年延長。這實際上是對預算之類的審查，但我們看到它們現在開始放鬆。

So I think as we move forward, the time has already passed on many of those projects and we're trying to get them up and running now. But as we're anticipating with the energy in the market right now that as we get into the later in the spring and into the summer, that we'll have seen those sales cycles start to close up now because people are moving a little bit more quickly.

所以我認為，隨著我們的前進，許多專案的時間已經過去了，我們現在正在努力讓它們啟動並運行。但正如我們目前預計市場上的能量一樣，當我們進入春季晚些時候和夏季時，我們將看到這些銷售週期現在開始結束，因為人們正在稍微移動更快速。

In regards to budget, very encouraging. Much more activity going on this time period than we were coming into the holiday season, say, six months ago. Things have really picked up and we're quite excited about the growth in our pipeline that we're seeing now as a result of that. So really positive trend for the future.

在預算方面，非常令人鼓舞。這段時間的活動比六個月前進入假期季節時多得多。事情確實有所好轉，我們對我們現在看到的管道增長感到非常興奮。所以未來的趨勢確實是正面的。

Got you. That's helpful. And just one last question. So earlier this month, you released a press release about adding gen AI capabilities to agility. So just wanted to know what the goal is here. Is it to stay competitive, keep up to date with technology? Or is it to monetize it longer term if there's enough value added to customers?

明白你了。這很有幫助。還有最後一個問題。本月早些時候，您發布了一份關於將新一代人工智慧功能添加到敏捷性的新聞稿。所以只是想知道這裡的目標是什麼。是為了保持競爭力、跟上科技的發展嗎？或者如果能為客戶帶來足夠的附加價值，是為了長期貨幣化？

It's tremendous value add actually and it's a leapfrog. We were first to market with production ready capabilities around generative AI. That generative AI, many of us are familiar when we talk to our phone or maybe talk to our car, get directions, and that sort of thing. It's a similar technology. We're applying it specifically to the supply chain planning.

實際上這是巨大的增值，而且是跨越式的。我們率先將生成型人工智慧的生產就緒能力推向市場。當我們與手機交談或與汽車交談、獲取路線或諸如此類的事情時，我們很多人都熟悉生成式人工智慧。這是類似的技術。我們將其專門應用於供應鏈規劃。

At its beginning stages, at its lowest level, what generative AI brings is more insights, more quickly to a broader community. So the ability to make decisions faster come as a result of it.

在起步階段，在最低水平，產生人工智慧帶來的是更多的見解，更快地為更廣泛的社群帶來。因此，更快做出決策的能力就是它的結果。

Some of the same information you could get by pounding on the keyboard, you can get through the same method. But it's much more intuitive, much easier, and it opens up the insights that are capable through our system to a much broader audience. So it's more inclusive around the decision making, strategic decisions that need to be made around the applications.

有些訊息你可以敲擊鍵盤得到相同的訊息，你可以透過同樣的方法得到。但它更直觀、更容易，並且它透過我們的系統向更廣泛的受眾開放了能夠獲得的見解。因此，它在決策、需要圍繞應用程式做出的策略決策方面更具包容性。

We look at generative AI in four phases. The first phase is insights, and that's kind of the phase we're in now, where people are really starting to get their arms around it. Phase two will be directed activity. We're starting to introduce that into the platform today. Directed activity helps now where a user can issue a command or request an action.

我們分四個階段來看生成式人工智慧。第一個階段是洞察力，這就是我們現在所處的階段，人們真正開始擁抱它。第二階段將是定向活動。我們今天開始將其引入平台。定向活動現在可以幫助使用者發出命令或請求操作。

After that, we move to more autonomous capabilities. We have autonomous capabilities today, but directed through the generative AI capabilities, and ultimately, really starting to automate many more things through user interaction. And so that would be stage four.

之後，我們轉向更自主的能力。今天我們擁有自主能力，但透過產生人工智慧能力進行指導，並最終真正開始透過使用者互動實現更多事情的自動化。這將是第四階段。

Stage one is available today. Stage two is coming to the marketplace, really starting to come into play. And stage three and four are a little horizon oriented. So it will be breakthrough technology that will radically change the way people use supply chain planning applications.

第一階段現已推出。第二階段即將進入市場，真正開始發揮作用。第三階段和第四階段有點面向地平線。因此，這將是一項突破性技術，將從根本上改變人們使用供應鏈規劃應用程式的方式。

Yes, that's helpful color. Thanks for taking my questions.

是的，這是有用的顏色。感謝您回答我的問題。

Matthew Galinko.

馬修·加林科。

Hey. Congrats on the quarter, and thanks for taking my questions. I think you touched on transformational deals beginning to move again. So can you add a little bit more color on just how quickly they're moving along and whether you expect those to -- and you to get across the finish line in the next four quarters? And what do you think specifically contributed to them starting to move again?

嘿。恭喜本季度，感謝您回答我的問題。我認為你談到了轉型交易再次開始行動。那麼，您能否對他們的進度以及您是否期望這些以及您在接下來的四個季度內衝過終點線添加更多的色彩？您認為是什麼促使他們再次開始行動？

Yeah, I think confidence -- Matthew, thank you for the question, first of all. Confidence in the economy stabilizing. Every day you wake up, it swings one way or the other. Interest rates are going to go down, then they're going to stabilize and they're going up.

是的，我認為有信心——馬修，首先感謝你提出這個問題。對經濟穩定的信心。每天你醒來時，它都會向一側或另一側擺動。利率會下降，然後穩定下來，然後上升。

But overall, what we're seeing -- what we're hearing people talk about, our clients, our prospects talk about, is a stabilization around their business and continued improvement going forward.

但總的來說，我們所看到的——我們聽到人們、我們的客戶、我們的潛在客戶談論的是他們的業務穩定和未來的持續改進。

So their willingness to commit to a bigger investment, willing to put more resources at the table to accomplish more, is really what's stimulating. The need for a transformational project hasn't changed. But their nervousness about the kind of investment it takes to really tackle something like that, they were very anxious about that. So the pace had slowed.

因此，他們願意投入更大的投資，願意投入更多的資源來完成更多的事情，這確實令人興奮。對轉型項目的需求沒有改變。但他們對真正解決此類問題所需的投資感到緊張，他們對此感到非常焦慮。所以速度也慢了下來。

So yes, we're seeing an uptick. We see more of those projects coming into the pipeline. And over the next four quarters, certainly we anticipate that they'll come to fruition and we'll get started on those projects, start implementing them, and get more and more of that activity going.

所以是的，我們看到了上升。我們看到更多這樣的計畫正在醞釀中。在接下來的四個季度中，我們當然預計它們將會取得成果，我們將開始這些項目，開始實施它們，並讓越來越多的活動進行起來。

So nice add-ons, nice lift and shift capability, nice several capabilities, projects going on. But then these transformational ones kicking in will help us in the long term as well.

如此好的附加元件，良好的提升和轉移能力，良好的多種功能，正在進行的專案。但從長遠來看，這些變革性的措施的啟動也將對我們有所幫助。

Thank you. And as a follow-up, you just mentioned lift and shift. And I think you said that it accelerated. Again, is that partially just confidence in your customers coming back in? Or is there some element of your new AI approach and sort of cloud-native assets opening more opportunities to shift legacy to kind of premise to cloud? Just maybe talk a little bit about that.

謝謝。作為後續行動，您剛才提到了提升和轉變。我想你說過它加速了。再說一次，這部分只是對你的客戶回來的信心嗎？或者，您的新人工智慧方法和某種雲端原生資產中是否存在某些元素，為將遺留問題轉移到雲端的前提提供了更多機會？也許只是談談這一點。

Yeah, there's really three things that are driving it right now. The predominance of it is the new capabilities we brought to the market, including DAI plus, DemandAI plus, bringing new capabilities that are only available in the cloud.

是的，現在確實有三件事在推動它。其中的優點是我們為市場帶來的新能力，包括DAI plus、DemandAI plus，帶來了只有在雲端才有的新能力。

So that's been an incentive for more and more clients to look at that and say it's time. So that's probably representing half of that growth, just the new capabilities that are available, the in-generative AI capabilities only available in the cloud.

因此，這激勵了越來越多的客戶關注這一點並說是時候了。因此，這可能代表了成長的一半，只是可用的新功能，以及僅在雲端中可用的生成人工智慧功能。

Out of the remaining 50%, another 25% is the budget that we just talked about. People now have the -- they wanted to move. They wanted to get an update. They wanted to get some new technology, but now have access to funds.

剩下的50%中，另外25%就是我們剛才講的預算。人們現在想要搬家。他們想了解最新情況。他們想要獲得一些新技術，但現在可以獲得資金。

So that's probably helped to stimulate another quarter of the overall pipeline growth. The other quarter is coming from the continued exposure to risk that our clients have in housing their own applications in the data environment.

因此，這可能有助於刺激整體管道成長的另一個季度。另一個季度來自我們的客戶在數據環境中放置自己的應用程式時持續面臨的風險。

It's quite shocking. The number of those incidents that have come about in the marketplace, not necessarily directly against our applications but in their IT data center, which gave them a lot of heartburn. And so more and more of that is coming to the table now where clients are basically saying, we need to be out of this business. We need to have professional management, a better -- more robust data center, better administration, and stay up to date and that's stimulating some of the demand as well.

這是相當令人震驚的。市場上發生的此類事件數量並不一定直接針對我們的應用程序，而是發生在他們的 IT 資料中心，這讓他們感到非常心痛。因此，越來越多的問題現在擺在桌面上，客戶基本上都在說，我們需要退出這個業務。我們需要專業的管理、更好、更強大的資料中心、更好的管理，並保持最新狀態，這也刺激了一些需求。

Thank you.

謝謝。

Anja Soderstrom.

安雅·索德斯特羅姆。

Hi, thank you for taking my questions and congratulations on the progress in the quarter. I'm just curious with you saying that the deals have been starting to lose up, but you say that larger deals are taking longer.

您好，感謝您回答我的問題並祝賀本季度取得的進展。我只是好奇你說交易已經開始失敗，但你說更大的交易需要更長的時間。

How should we think about fiscal 2025 and beyond in terms of that? Could we expect revenue growth to accelerate helped by those larger deals coming through or --?

我們該如何看待 2025 財年及以後的情況？我們是否可以預期收入成長會在這些較大交易的幫助下加速？——？

Yes. It's early in that phase now. It's only February, but for fiscal '25 for us starts in May and runs out for another 12 after that. But we're anticipating the same thing, Anja. We're seeing the budgets that are freeing up.

是的。現在還處於該階段的早期。現在才 2 月份，但我們的 25 財年從 5 月份開始，之後還有 12 個財年。但我們期待著同樣的事情，安雅。我們看到預算正在釋放。

We're seeing that people are serious about it. Many clients are on a calendar year, so they are now just getting access to those budgets and kicking off the projects in anticipation of launching them and starting spending in calendar year 2024, which would predominantly fall into our fiscal year 2025.

我們看到人們對此很認真。許多客戶都採用日曆年，因此他們現在剛剛獲得這些預算並啟動項目，預計在 2024 年啟動項目並開始支出，這主要屬於我們的 2025 財年。

So we're quite bullish about it. We think that the momentum is coming around as we anticipate it for the spring and into the summer and are looking forward to a robust year, a very busy year ahead of us.

所以我們非常看好它。我們認為，正如我們預計的春季和夏季，這種勢頭正在出現，並期待著強勁的一年，即將到來的非常忙碌的一年。

Okay, thank you. And in terms of the gen AI, you said that we're kind of in the first phase there, going into the second out of four phases. Do you think that might be a roadblock in terms of the sales cycle? Your customer wants to wait and see how that pans out before they make any decisions.

好的謝謝。就新一代人工智慧而言，您說我們正處於第一階段，正在進入四個階段中的第二階段。您認為這可能會成為銷售週期的障礙嗎？您的客戶希望在做出任何決定之前先看看結果如何。

No, I don't think so. So it's such a novel and unique capability that people are clamoring for it. It's a natural progression anyway. What we're seeing in the marketplace is that with the excitement, there's a little bit of fear and concern.

不，我不這麼認為。因此，這是一種新穎而獨特的功能，人們都在呼籲它。無論如何，這是一個自然的進展。我們在市場上看到的是，在興奮的同時，也有一點恐懼和擔憂。

One of the things we've done very successfully is to put a wrapper around it to give them assurance that generative AI within our application is not going to be out surfing the World Wide Web and coming up with risky factors around that sort of thing or exposing their data in any way to the outside world.

我們做得非常成功的一件事就是對其進行包裝，以向他們保證我們應用程式中的生成人工智慧不會在萬維網上沖浪並提出圍繞此類事情的風險因素或以任何方式向外界公開他們的數據。

So we've given our clients confidence around that. Now they want to get started. They want to get a feel for what this means, build momentum, and build credibility and trust, and then be willing to take the next step.

因此，我們對此給予了客戶信心。現在他們想要開始。他們希望了解這意味著什麼，建立動力，建立信譽和信任，然後願意採取下一步。

So the evolution of the technology and the ability for people to absorb it and really understand it and appreciate and build the trust is going in lockstep. So we don't anticipate any delay in deals because of the evolution of this technology now.

因此，技術的發展以及人們吸收技術、真正理解技術、欣賞和建立信任的能力正在同步進行。因此，我們預計不會因為這項技術的發展而導致交易出現任何延遲。

Okay, thank you. And I'm sorry if you mentioned this, but you said you exhausted the authorized buyback program. Did you approve a new one? Or do you expect that to be approved? Or how are you thinking about buybacks going forward?

好的謝謝。如果你提到這一點，我很抱歉，但你說你已經用盡了授權回購計畫。你批准新的了嗎？或者您希望獲得批准嗎？或者您如何考慮未來的回購？

We haven't made any decision about what to do next. We just completed that right as the holidays were coming together and wrapped up the last one that had been approved for many years now. We had the availability to make that buyback happen.

我們還沒有就下一步要做什麼做出任何決定。我們剛剛在假期即將來臨之際完成了這項工作，並完成了多年來已獲得批准的最後一項。我們有能力實現回購。

So we'll take that up in the new fiscal year and consider all possibilities. As we said, we're still sitting on a healthy balance sheet with cash available, just short of $80 million. And in the new year, new fiscal year, we'll make some decisions about how best to deploy that.

因此，我們將在新的財政年度解決這個問題並考慮所有可能性。正如我們所說，我們的資產負債表仍然健康，可用現金僅剩 8,000 萬美元。在新的一年，新的財政年度，我們將就如何最好地部署它做出一些決定。

Okay. And as a follow-up to that, what do you see in the M&A market now?

好的。作為後續行動，您現在對併購市場有何看法？

Interesting market. It's kind of mixed right now of what's out there. There's some interesting things we would take an eye to. But we don't have any specific announcements around at this time.

有趣的市場。現在的情況有點混雜。我們會專注在一些有趣的事情。但目前我們還沒有任何具體公告。

We've not exited that market. We're still interested and we're still engaged. And when we find the right thing and get mutual agreement on that, we'll make some announcements about that next move.

我們還沒有退出這個市場。我們仍然感興趣並且仍然參與其中。當我們找到正確的事情並就此達成共識時，我們將就下一步行動發布一些公告。

Okay. Thank you. That was all for me.

好的。謝謝。這就是我的全部。

Thank you, Anja.

謝謝你，安雅。

Zach Cummins.

扎克·康明斯。

Hi, Allan. Hi, Vince. Thanks for taking my questions. Allan, I was curious in terms of your go-to-market strategy with Garvis, now rebranded as Demand AI, can you talk about just the progression of going through these initial pilots?

嗨，艾倫。嗨，文斯。感謝您回答我的問題。艾倫，我很好奇您與 Garvis（現已更名為 Demand AI）的上市策略，您能談談這些初步試點的進展嗎？

And it sounds like some of these are on the verge of committing to pretty substantial upsizes and longer-term contracts. So do you get a sense of the potential uplift you can see if you're able to sign kind of a full longer-term contract with DemandAI with some of these new prospects?

聽起來其中一些公司即將承諾大幅擴大規模並簽訂長期合約。那麼，如果您能夠與 DemandAI 與其中一些新潛在客戶簽訂一份完整的長期合同，您是否感受到了潛在的提升？

Yeah. So at the point of acquisition of Garvis, that team was very successfully building a book of clients and getting momentum and proof points with the product in the marketplace using the pilot strategy.

是的。因此，在收購 Garvis 時，該團隊非常成功地建立了客戶名冊，並利用試點策略在市場上的產品上獲得了動力和證據。

Very effective from a startup standpoint. What we're seeing is many of those pilots had already matured to the point where we are actively engaged in finalizing contracts for the long term.

從啟動的角度來看非常有效。我們看到，許多試點計畫已經成熟，我們正在積極參與最終確定長期合約。

Pretty substantial upside in those opportunities when we convert those to long term because the pilots weren't really built to manage the entire enterprise. They were maybe a product line or a few product lines or a segment, a division of the business, or maybe a regional area or something of that nature.

當我們將這些機會轉化為長期機會時，這些機會具有相當大的優勢，因為試點並不是真正為管理整個企業而建立的。它們可能是一條產品線或幾條產品線或一個部門、一個業務部門，或者可能是一個區域或類似性質的東西。

So the upside on it, Zach, as you said, is quite significant and coming about. We anticipate that we'll have some of those transactions completed in our fourth quarter. More of them coming on the heels of that in the first quarter.

所以，扎克，正如你所說，它的好處是相當重要的，而且即將出現。我們預計其中一些交易將在第四季度完成。緊隨第一季之後，還有更多的此類事件發生。

Some of those clients are substantial, complex, can be difficult to negotiate contracts with. So we just really got engaged with them at the beginning -- at the end of the calendar year last year, beginning of this year, and rolling up our sleeves and diving in. So we're quite excited about that.

其中一些客戶規模龐大、複雜，可能很難與之談判合約。所以我們從一開始就真正與他們接觸——去年年底、今年年初，然後捲起袖子投入其中。所以我們對此感到非常興奮。

We've retained that model. We see it's quite effective. Many clients, particularly larger companies that have significant investments, maybe in any ARP enterprise like an SAP or something like that, are hesitant to bring new applications in.

我們保留了這個模型。我們看到它非常有效。許多客戶，尤其是擁有大量投資的大公司（可能是 SAP 等任何 ARP 企業）對於引入新應用程式猶豫不決。

So this is proving to be a good model to penetrate into the account, get some proof points, build momentum, and then grow it from within. So we like the model, but we are only doing so when there's a clear opportunity to develop a long-term relationship.

因此，這被證明是一個很好的模式，可以滲透到帳戶中，獲得一些證據，建立動力，然後從內部發展它。所以我們喜歡這種模式，但只有在有明確的機會發展長期關係時我們才會這樣做。

We're not in the business of running pilots for an extended period of time. So we're really looking at that as a strategy.

我們的業務不是長期運作試點。所以我們確實將其視為一種策略。

So yes, we see that as a whole new market and channel and approach to the market, go-to market for us, something we've never done before. But we've learned from that team that came in from Garvis, and we're seeing some advantages in keeping that model in place.

所以，是的，我們認為這是一個全新的市場、通路和進入市場的方法，對我們來說，進入市場是我們以前從未做過的事情。但我們從 Garvis 的團隊中吸取了教訓，並且看到了保持模型的一些優勢。

Got it. That's great to hear and encouraging on that front to potentially secure some longer-term opportunities.

知道了。很高興聽到這一消息，並在這方面鼓勵我們有可能獲得一些長期機會。

Final question for me, Allan, is just really around the pipeline. Can you give us a sense of the size of the pipeline versus maybe where you were a year ago going into this point? And kind of give us a little bit of understanding of the mix of lift and shift opportunities versus completely new engagements within that pipeline?

艾倫，我的最後一個問題實際上是圍繞管道進行的。您能否讓我們了解一下管道的規模以及一年前您進入這一點的情況？讓我們對提升和轉移機會的組合與管道中全新的參與有一點了解？

Yeah. I would say the growth -- well, there's really three areas that are driving the pipeline. One is the lift and shift that we referenced. It's representing about a third of the new opportunities that are coming into the pipeline.

是的。我想說的是，成長其實是由三個領域推動的。一是我們提到的提升與轉變。它約佔即將出現的新機會的三分之一。

The other is to extend the relationship with existing clients. So those that are already in the cloud that we're adding new functionality, expanding to new regions, new user communities, new product lines, something along that nature. So it's an extension of what we currently have.

另一個是擴大與現有客戶的關係。因此，對於那些已經在雲端的產品，我們正在添加新功能，擴展到新區域、新用戶社群、新產品線，等等。所以它是我們目前所擁有的延伸。

As I mentioned in my earlier talk, for example, we had DemandAI plus sold to an existing client that was already in the cloud. So it was an extension to their footprint.

例如，正如我在先前的演講中提到的，我們將 DemandAI plus 出售給了現有已經在雲端的客戶。所以這是他們足跡的延伸。

And then, of course, the new clients that are coming in. Those opportunities are typically larger by a factor of two or three times, an add-on or a lift and shift. So it doesn't take a lot of those to add to the pipeline. But it's roughly three equal parts that are helping us build pipeline.

當然，還有不斷湧入的新客戶。這些機會通常會增加兩倍或三倍、附加或提升。因此，不需要將很多內容添加到管道中。但大約是三個相等的部分在幫助我們建立管道。

If we look at our pipeline over where we were this time last year, we're up about 40%. So it's pretty substantial. So we're seeing a growth in our pipeline month after month after month. We've been seeing that for the last three or four months now.

如果我們看看去年這個時候我們的管道狀況，我們會發現我們成長了約 40%。所以這是相當可觀的。因此，我們看到我們的管道逐月成長。過去三、四個月我們一直看到這種情況。

So it's quite encouraging. It wasn't just one pop and then running off of that. It's continuing to grow every month as we march forward.

所以這是相當令人鼓舞的。這不只是一聲爆響然後就跑掉了。隨著我們前進，它每個月都在繼續增長。

Got it. Well, sounds great and best of luck in your fiscal 4Q.

知道了。嗯，聽起來不錯，祝您第四財季好運。

Thank you very much. Thank you for joining us today.

非常感謝。感謝您今天加入我們。

(Operator Instructions)

（操作員說明）

There are no additional questions at this time. I'd like to now turn it back to our presenters for any closing remarks.

目前沒有其他問題。我現在想把它轉回給我們的主持人做總結發言。

All right. Well, thank you all for joining us today. We really appreciate the time you spent with us. Some great questions, thank you for those as well. And we look forward to chatting with you again someday in the near future. Have a good afternoon.

好的。好的，謝謝大家今天加入我們。我們非常感謝您與我們一起度過的時光。一些很好的問題，也感謝您提出這些問題。我們期待在不久的將來有一天再次與您聊天。祝你下午好。

Thank you, ladies and gentlemen. This concludes today's presentation. You may now disconnect.

謝謝你們，女士們、先生們。今天的演講到此結束。您現在可以斷開連線。