Logility Supply Chain Solutions Inc (LGTY) 2025 Q1 法說會逐字稿

Good day everyone and welcome to today's first quarter 2025 earnings results. (Operator Instructions) Please note today's call will be recorded and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Vince Klinges, Chief Financial Officer for American Software. Please go ahead.

大家好，歡迎來到今天的 2025 年第一季獲利結果。（操作員說明）請注意，今天的通話將被錄音，如果您需要任何幫助，我將隨時待命。現在我很高興將會議交給 American Software 財務長 Vince Klinges。請繼續。

Thank you, Chloe. Good afternoon everyone and welcome to American Software's first quarter 2025 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.

謝謝你，克洛伊。大家下午好，歡迎參加 American Software 2025 年第一季財報電話會議。與我通話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，但首先是我們的安全港聲明。

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 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 in 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. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate.

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。有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不確定性變化、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、競爭性產品和定價的影響以及其他競爭壓力，以及不規則且不可預測的收入模式。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 our opening remarks.

現在，我想將電話轉給艾倫，請他致開幕詞。

Thank you, Vince. Good afternoon, everyone, and thank you for joining us today. Our first quarter performance was consistent with our internal expectations and provided a solid start to our fiscal 2025. Reflecting the improvement in our bookings over the past few quarters, our revenue increased slightly both on a sequential and year-over-year basis, led by sustained growth in our cloud revenue, high retention rates, and a return to growth in our services.

謝謝你，文斯。大家下午好，感謝您今天加入我們。我們第一季的業績符合我們的內部預期，為 2025 財年提供了良好的開端。我們的營收季比和年比均略有成長，這反映出過去幾季我們的預訂情況有所改善，這主要得益於我們的雲端收入持續成長、高留任率以及服務成長的恢復。

This, in turn, translated to the strongest gross margin performance we've seen in over a year, which, combined with the disciplined expense management, drove our adjusted EBITDA margin up to nearly 18%. Our AI-first approach to supply chain planning continues to resonate with new and existing clients. In May, we launched additional generative AI capabilities across the Logility platform, as well as the new Decision Command Center capabilities, which provide a structured and insight-rich approach to guiding users and organizations through critical decision processes.

這反過來又轉化為我們一年多來最強勁的毛利率表現，再加上嚴格的費用管理，使我們的調整後 EBITDA 利潤率達到近 18%。我們以人工智慧為先的供應鏈規劃方法繼續引起新舊客戶的共鳴。5 月份，我們在 Logility 平台上推出了額外的生成式 AI 功能，以及新的決策指揮中心功能，這些功能提供了一種結構化且見解豐富的方法來引導使用者和組織完成關鍵決策流程。

The combination of these enhanced capabilities is accelerating and improving the quality of supply chain decisions, while making those decisions more transparent and inclusive for all levels of our clients' supply chain teams. As we continue to advance and mature the use of AI across our platform, we are making a concerted effort to elevate the existing self-managed clients who operate our software in on-prem deployments up to our current version, where we manage the applications for them in our cloud hosted realm.

這些增強功能的結合正在加速和提高供應鏈決策的質量，同時使這些決策對我們客戶的供應鏈團隊的各個層級都更加透明和包容。隨著我們在整個平台上不斷推進和成熟人工智慧的使用，我們正在齊心協力，將在本地部署中操作我們軟體的現有自我管理客戶提升到我們當前的版本，在該版本中我們管理應用程序他們在我們的雲端託管領域。

While still early days, we have initiated conversations with many of our clients about when and how to budget for this transition, and expect to see an uptick in cloud migrations towards the end of our fiscal year, once funding for the new calendar year initiatives have been secured.

雖然還處於早期階段，我們已經開始與許多客戶討論何時以及如何為這一過渡制定預算，並預計一旦新日曆年計劃的資金到位，我們的財年末雲遷移就會有所增加。 。

As anticipated, conversion of our pipeline remained low by historical standards due to the combined impacts of seasonal softness we typically experience during the summer months, and pushouts on potential projects as buyers remain cautious in an uncertain economic environment. However, we are pleased to have generated higher bookings in this Q1 than we did at the start of our last fiscal year, and we are encouraged by the increased contribution from new and existing clients.

正如預期的那樣，由於我們通常在夏季經歷的季節性疲軟的綜合影響，以及由於買家在不確定的經濟環境中保持謹慎而推遲潛在項目的綜合影響，我們的管道轉換率按照歷史標準仍然較低。然而，我們很高興第一季的預訂量比上一財年年初更高，新舊客戶的貢獻增加也讓我們感到鼓舞。

Not surprisingly, DAI Plus featured prominently among our new client wins this quarter. We also saw increased traction from our network design optimization solution among both new and existing clients. This combination is providing them a unique solution to overcome the supply chain volatility they are experiencing in this market.

毫不奇怪，DAI Plus 在我們本季贏得的新客戶中佔據了顯著位置。我們也看到我們的網頁設計優化解決方案在新客戶和現有客戶中的吸引力不斷增加。這種組合為他們提供了獨特的解決方案，以克服他們在這個市場上遇到的供應鏈波動。

Looking forward, our late-stage pipeline has continued to expand due to the delays we've experienced over the past 18 to 24 months, and new interest that is being stimulated by the calendar year 2025 budgeting cycle.

展望未來，由於我們在過去 18 至 24 個月中經歷了延誤，以及 2025 年預算週期激發了新的興趣，我們的後期管道將繼續擴大。

Although we remain cautious on forecasting any meaningful short-term improvement in the demand environment, the growth in our pipeline, coupled with some indications from our clients and prospects that they are finally ready to move forward with projects, provides us with the confidence that we can meet and perhaps exceed the guidance we put forth at the start of the fiscal year. We plan to reassess our full-year expectations once the first half is complete and our clients and prospects have had an opportunity to see through the anticipated interest rate adjustments and the election process.

儘管我們對預測需求環境出現任何有意義的短期改善仍持謹慎態度，但我們管道的成長，加上我們的客戶和潛在客戶最終準備好推進專案的一些跡象，使我們有信心：可以達到甚至超過我們在本財年開始時提出的指導方針。我們計劃在上半年結束後重新評估全年預期，我們的客戶和潛在客戶有機會了解預期的利率調整和選舉過程。

In the meantime, we're reaffirming our prior fiscal 2025 guidance for a total revenue of $104 million to $108 million, recurring revenue between $87 million to $89 million, and adjusted EBITDA of $15 million to $16.4 million. Lastly, I want to thank our shareholders for approving our proposal to eliminate the dual-class structure that has been in place for many years. We believe the move enhances our corporate governance and aligns with the transformation we have undertaken to become a pure-play, AI-first supply chain software company.

同時，我們重申先前對 2025 財年的指導，總收入為 1.04 億美元至 1.08 億美元，經常性收入為 8700 萬美元至 8900 萬美元，調整後的 EBITDA 為 1500 萬美元至 1640 萬美元。最後，我要感謝我們的股東批准我們的提議，以消除已經存在多年的雙重股權結構。我們相信此舉增強了我們的公司治理，並符合我們為成為純粹的、人工智慧優先的供應鏈軟體公司而進行的轉型。

At this time, I'll turn the call over to Vince, who will provide the 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, Allan. Before I discuss our results in more detail, I want to remind everyone that due to the divestiture IT staff business unit, the proven method in the second quarter of fiscal year 2024, our financial statements for the comparable period last year have been recast to show the proven method as a discontinuing operation.

謝謝，艾倫。在更詳細地討論我們的業績之前，我想提醒大家，由於剝離IT人員業務部門，2024財年第二季度經過驗證的方法，我們去年可比期間的財務報表已被重新改寫，以顯示將經過驗證的方法作為中斷操作。

Results of the sale of our transportation rating solutions were not considered material enough to recast as discontinuing operations and are still reflected in our prior year comparisons for continuing operations. Our discussion for the current and comparable periods will focus only on our continuing operations from this point on.

我們的運輸評級解決方案的銷售結果被認為不足以重述為中止業務，並且仍然反映在我們上一年的持續業務比較中。我們對目前和可比較期間的討論將僅集中於我們從此時起的持續經營業務。

For the first quarter of fiscal 2025, revenues came in at $26.2 million, a 1% increase from $25.9 million, same period last year. This is primarily due to higher revenues from our subscription fees and professional services, which were more than offset by the declines in the maintenance.

2025 財年第一季的營收為 2,620 萬美元，比去年同期的 2,590 萬美元成長 1%。這主要是由於我們的訂閱費和專業服務收入增加，但維護費用的下降足以抵消這筆收入。

So our subscription fees increased 7% year-over-year to $14.8 million, compared to $13.8 million in the same period last year. Software license revenues were $0.2 million compared to $0.3 million in the prior year period. Professional services increased 5% to $3.9 million, compared to $3.7 million in the same period last year, reflecting an uptick in our bookings activity over the past few quarters.

因此，我們的訂閱費年增 7%，達到 1,480 萬美元，去年同期為 1,380 萬美元。軟體授權收入為 20 萬美元，而去年同期為 30 萬美元。專業服務成長 5%，達到 390 萬美元，而去年同期為 370 萬美元，反映出過去幾季我們的預訂活動增加。

Our maintenance revenues declined 11% year-over-year to $7.3 million, and that reflects a normal fall-off rate for the quarter, as well as the divestiture of our transportation group, which reduced our maintenance revenues by approximately $250,000. Total recurring revenues comprised of subscription and maintenance fees increased 1% and represent 84% of total revenues for the quarter.

我們的維護收入年減 11% 至 730 萬美元，這反映了本季的正常下降率，以及我們運輸集團的剝離，這使我們的維護收入減少了約 25 萬美元。由訂閱費和維護費組成的總經常性收入成長了 1%，佔本季總收入的 84%。

Gross margin was up to 67% for the current quarter, compared to 65% in the prior year period. Subscription fee margin was 68% for the current period, and that compares to 69% for the prior year period. If you exclude the non-cash amortization of intangible expense of $667,000, our subscription gross margin was 73% for the current period, and that compares to 72% in the prior year period. Amortization of intangible expense was $340,000 in the same period last year.

本季毛利率高達 67%，而去年同期為 65%。本期認購費利潤率為 68%，去年同期為 69%。如果排除 667,000 美元無形費用的非現金攤銷，我們當期的認購毛利率為 73%，而去年同期為 72%。去年同期無形費用攤提為34萬美元。

Our license fee margin was 82%, compared to 75% in the same period last year. Our services margin increased to 30%, compared to 17% last year, and that's due to higher revenues and improved utilization. Our maintenance margin was 82% for the current quarter, and that compares to 79% in the period last year.

我們的許可費利潤率為 82%，而去年同期為 75%。我們的服務利潤率從去年的 17% 增加到 30%，這得益於收入的增加和利用率的提高。本季我們的維持利潤率為 82%，而去年同期為 79%。

Our gross R&D expenses were 17% of total revenues for the current period, and that's up from 16% in the prior year period. Sales and marketing expenses were 22% of revenues for both the current and year-ago periods, and G&A expenses were 21% of total revenues for the current quarter and consistent with the same period last year.

我們的研發總費用佔本期總收入的 17%，高於去年同期的 16%。銷售和行銷費用佔本季和去年同期收入的 22%，一般管理費用佔本季總收入的 21%，與去年同期一致。

On a GAAP basis, our operating income was $1.8 million for the quarter, and that's up from $1.4 million in the same period last year, due to higher revenues and improved gross margins. Our net income was $2.1 million, or earnings per diluted share, of $0.06 compared to $2.6 million, or $0.08 per diluted share, last year.

根據 GAAP 計算，我們本季的營業收入為 180 萬美元，高於去年同期的 140 萬美元，原因是收入增加和毛利率提高。我們的淨利潤為 210 萬美元，即稀釋後每股收益 0.06 美元，而去年為 260 萬美元，即稀釋後每股收益 0.08 美元。

On an adjusted basis, which excludes non-cash amortization of intangible expense related to acquisitions and stock-based compensation expense, adjusted operating income was $4.3 million, and that's up from $3.2 million in the same period last year. Adjusted EBITDA was $4.6 million compared to $3.7 million the same quarter last year, and adjusted net income was $4.1 million, or adjusted per diluted share of $0.12 for the first quarter, and that compares to adjusted net income of $4 million, or earnings per diluted share of 13% 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和股票補償費用的非現金攤銷，調整後的營業收入為 430 萬美元，高於去年同期的 320 萬美元。調整後EBITDA 為460 萬美元，去年同期為370 萬美元；第一季調整後淨利為410 萬美元，即調整後每股攤薄收益0.12 美元，而調整後淨利為400 萬美元，即攤薄後每股收益去年同期比例為13%。

International revenues this quarter were 22% of total revenues compared to $18 million last year. Our remaining performance obligations, we exited this quarter, were $125 million, and that's 13% increase from last year at this time. Looking at the balance sheet, our financial position remains strong with cash and investments of approximately $92 million at the end of the quarter, and also during the quarter we paid $3.7 in dividends. Our day sales outstanding as of July 31, 2024, decreased to 61 days in the current period, and that compares to 76 days in the same period last year, and that's due to improved collections.

本季國際營收佔總營收的 22%，而去年為 1,800 萬美元。我們本季退出的剩餘履約義務為 1.25 億美元，比去年同期成長了 13%。從資產負債表來看，我們的財務狀況依然強勁，截至本季末，現金和投資約為 9,200 萬美元，並且在本季度我們支付了 3.7 美元的股息。截至 2024 年 7 月 31 日，我們的每日銷售額在本期減少至 61 天，而去年同期為 76 天，這是由於收款情況有所改善。

Turning to our fiscal '25 outlook, as Allan mentioned, we are maintaining our guidance for the fiscal year. We anticipate revenue in the range of $104 million to $108 million, which includes recurring revenue of a range of $87 million to $89 million, and for adjusted EBITDA, we anticipate a range of $15 million to $16.4 million.

談到我們的 25 財年展望，正如艾倫所提到的，我們維持對本財年的指導。我們預計營收範圍為 1.04 億美元至 1.08 億美元，其中經常性收入範圍為 8,700 萬美元至 8,900 萬美元，調整後的 EBITDA 範圍為 1,500 萬美元至 1,640 萬美元。

At this time, I would like to turn the call over to questions.

此時，我想將通話轉為提問。

(Operator Instructions) Anja Soderstrom.

（操作員說明）Anja Soderstrom。

Hi, and thank you for taking my question. So you noted high retention rate. Can you quantify those and sort of compare them to historicals?

您好，感謝您提出我的問題。所以你注意到高保留率。你能量化這些並將它們與歷史進行比較嗎？

Anja, yeah, our retention rates are kind of inconsistent with what we've been experiencing in the past couple quarters. They've been kind of in the, you know, mid- 90s.

安雅，是的，我們的保留率與過去幾季的經驗有些不一致。他們有點像 90 年代中期。

Okay, thank you. And also, given the slower conversions, are you taking any internal actions or redirecting resources?

好的，謝謝。此外，考慮到轉換速度較慢，您是否採取任何內部措施或重定向資源？

Anja, is that a reference to the conversions from the on-prem to the cloud?

Anja，這是指從本地到雲端的轉換嗎？

Yes.

是的。

Yeah, very good. Yeah. It's not far off our expectations. We didn't have to divert resources, but to accelerate, we've taken a number of steps. Number one is earlier this year, we announced that the last version that would be available to be delivered to our clients for them to manage -- self-manage, came out earlier this year. So there's no more development of versions that would be available to be delivered to them.

是的，非常好。是的。離我們的期望並不遙遠。我們不必轉移資源，但為了加速，我們採取了一些步驟。第一是今年早些時候，我們宣布今年早些時候發布了可交付給客戶進行管理的最後一個版本——自我管理。因此，不再開發可交付給他們的版本。

So that's helped stimulate a lot of dialogue, as well as we've done some internal investments to make it very easy for our clients to make that transition to the environment where we would be able to provide them the latest and greatest capabilities, as well as manage it on their behalf.

因此，這有助於激發大量對話，並且我們進行了一些內部投資，使我們的客戶能夠輕鬆過渡到我們能夠為他們提供最新和最強大功能的環境代表他們進行管理。

So those combinations, along with some packaging up of projects that allow the effort to go more seamlessly and for them to spread the cost over the term of a subscription agreement, all are helping to accelerate those. So those things combined.

因此，這些組合，再加上一些項目的打包，使工作能夠更加無縫地進行，並讓他們在訂閱協議期限內分攤成本，所有這些都有助於加速這些過程。所以這些事情結合起來。

The reality is those are sizable enough projects that they need budget. And as we just initiated those this year in anticipation of entering into this budget season we're in now, we're seeing the impact of that that we had anticipated. Folks are engaging with us, getting the numbers, getting it in the budget, and we're hopeful that they'll stick and we'll get through those.

現實情況是，這些項目規模夠大，需要預算。由於我們今年剛啟動了這些計劃，預計將進入我們現在所處的這個預算季節，我們正在看到我們預期的影響。人們正在與我們互動，獲取數據，將其納入預算，我們希望他們能夠堅持下去，我們也能完成這些任務。

So back to second Vince's comment about the retention rates, it's been consistent, but we were nervous about the economic condition and thought maybe that we'd see a tail off. So the good news is we've been able to hold the line on those and we're quite excited about that.

回到第二個文斯關於保留率的評論，它是一致的，但我們對經濟狀況感到緊張，並認為我們可能會看到下降。所以好消息是我們已經能夠堅持住這些，我們對此感到非常興奮。

Okay, that's good to hear. And then in terms of M&A opportunities, how actively are you looking and what are you seeing in terms of valuations there?

好的，很高興聽到這個消息。那麼就併購機會而言，您的尋找積極程度如何？

A very interesting point. We are not -- we've moved to a more opportunistic posture at this point, primarily because the valuations seem to be misrated. There's either companies that are highly distressed and eager to do something and they've got the challenges you'd have to face in order to get those rationalized and incorporated, or if they're a healthy environment, the valuation seems to be maybe back to the near to the pandemic ratings than what the reality of the marketplace is today, or that's what their expectations are. So they're misaligned.

非常有趣的一點。我們不是——我們現在已經採取了更機會主義的姿態，主要是因為估值似乎被錯誤評估了。要么有一些公司非常陷入困境並渴望做某事，但為了使這些公司合理化和合併，他們必須面對挑戰，或者如果他們有一個健康的環境，估值似乎可能會回來與當今市場的實際情況或他們的期望相比，大流行的收視率更接近。所以他們是錯置的。

So we've taken a more conservative posture. We are still having our eyes open. We're looking for the right tuck-in opportunity, and if it presented itself and had all the right conditions, we would act on it. So far more conservative than maybe we've been in the last couple of years.

所以我們採取了更保守的態度。我們仍然睜大眼睛。我們正在尋找合適的入睡機會，如果它出現並且具備所有合適的條件，我們就會採取行動。到目前為止，我們比過去幾年更加保守。

Okay, thank you. That was all for me. I'll get back into queue.

好的，謝謝。這就是我的全部。我會回到隊列中。

Thank you, Anja. Have a good afternoon.

謝謝你，安雅。祝你下午好。

Matthew Galinko,

馬修·加林科,

Hi, thanks for taking my questions. Maybe first on the professional services margin, I know you mentioned it being up from the prior year, 17, but it was also, I think, the highest quarter for services in, probably about a couple of years, or almost two years. So just curious if this, 30-plus level of the sustainable rate that we might be able to expect, just given the pipeline dynamics that you talked about, or how comfortable are you with that level at this point moving through the year?

您好，感謝您回答我的問題。也許首先是在專業服務利潤率方面，我知道你提到它比前一年 17 有所上升，但我認為，這也是服務業最高的季度，可能是幾年來，或者幾乎兩年。因此，只是好奇，考慮到您談到的管道動態，我們是否可以預期這個 30 多的可持續增長率水平，或者您對今年這一點的水平感到滿意嗎？

Hey, Matthew, this is Vince. Yeah, we're pretty comfortable with that rate. Actually, last year it was 30%. So what -- not last year -- excuse me, not '24, but '23, it was 31%. So we view it as getting back to kind of a normal margin rate at this point.

嘿，馬修，這是文斯。是的，我們對這個價格很滿意。事實上，去年這個數字是30%。那又怎樣——不是去年——對不起，不是'24，而是'23，是31%。因此，我們認為此時保證金率已恢復到正常水準。

Great, thanks. And then I think you mentioned that network optimization is starting to maybe have an impact on -- I don't know if it was pipeline or kind of prospects or existing clients that you're working on, but can you talk a little bit more about how that opportunity is emerging?

太好了，謝謝。然後我想你提到網路優化可能開始產生影響——我不知道你正在處理的是管道、潛在客戶還是現有客戶，但你能多談談嗎關於這個機會是如何出現的？

Yeah, thank you. You nailed all three, actually. We saw in the opportunities that we were closing in the past quarter that it was more prominent than it had been in the past. We do see it more prominent in the pipeline, and we're seeing it combined in with other capabilities like supply planning or forecasting in a way that we had anticipated when we made the acquisition.

是的，謝謝。事實上，你把這三個都搞定了。我們在上個季度關閉的機會中看到，它比過去更加突出。我們確實看到它在管道中更加突出，我們看到它以我們在收購時預期的方式與供應計劃或預測等其他功能相結合。

The whole idea behind it, where the real value proposition for us was not to re-enter the network design, which is really project-based activity, although we've got a robust set of capabilities to do so. The real design was to be able to couple it with the rest of our platform and allow the user community to make day-in and day-out decisions about how to leverage the network they have in place today.

背後的整個想法是，對我們來說真正的價值主張不是重新進入網路設計，這實際上是基於專案的活動，儘管我們擁有一組強大的能力來做到這一點。真正的設計是能夠將其與我們平台的其他部分結合起來，並允許用戶社群就如何利用他們今天擁有的網路做出日復一日的決策。

So as demand fluctuates, as customer orders come in maybe differently than historical patterns, or they take on new business, they can move and pivot and leverage the existing network more effectively. That's what's been really taking shape and getting traction with our clients, so we're very excited about that. That was the original design and strategy.

因此，當需求波動時，當客戶訂單可能與歷史模式不同時，或者他們接受新業務時，他們可以更有效地移動、調整和利用現有網路。這就是真正正在形成並吸引我們客戶的東西，所以我們對此感到非常興奮。這就是最初的設計和策略。

It's helping us win a broader portfolio of products, projects, where we can incorporate that in and we have a competitive advantage, as well as just an add-on to existing clients and helping them more effectively manage their supply chain. So very exciting to see the fruits of our efforts and the original strategy that we laid out come to bear.

它幫助我們贏得更廣泛的產品、專案組合，我們可以將其納入其中，從而獲得競爭優勢，同時也只是對現有客戶的補充，幫助他們更有效地管理供應鏈。看到我們的努力成果和我們所製定的最初策略得以實現，非常令人興奮。

Great, good to hear that that's coming around. Maybe a follow-up question would be, I guess with the engagement on the cloud migration with existing customers and maybe combined with -- it sounds like we're waiting to see a little bit how interest rate dynamics shape up in the back half of the year and some other macro things. Suppose that rates stay relatively high and there's still concerns on macro the back half of the year.

太棒了，很高興聽到這個消息即將到來。也許後續的問題是，我想，隨著現有客戶對雲端遷移的參與，也許還有——聽起來我們正在等待，看看利率動態在下半年會如何形成。假設利率維持在相對較高的水平，且下半年宏觀經濟仍存在擔憂。

Do you expect that we might see customers sort of hit the brakes and not move forward on migration projects and see a sort of greater drop-off in maintenance in that scenario, if kind of the features are now frozen on the premise product or should we see that as maybe a risk or a scenario that could play out if -- the pipeline of conversion doesn't play out as intended or as quickly as intended?

您是否認為我們可能會看到客戶踩剎車，不再推進遷移項目，並且在這種情況下，如果某些功能現在被凍結在前提產品上，維護工作會出現更大的下降，或者我們應該這樣做嗎？

Yeah, we're actually seeing the economic anxiety, I'll call it, is probably a stronger impact on new client opportunities and bigger transformative projects than we see on these transformational projects where we're moving them from self-managed to us providing the latest in the cloud for them. So we're also seeing a combination of things. The moves that we've made and also we're having more and more clients experience the challenges associated with keeping their environments protected from intrusion and from cyber -- cyber security efforts becoming much more dominant, much more complicated, more intrusions around their IT environment.

是的，我們實際上看到了經濟焦慮，我稱之為，可能比我們在這些轉型項目中看到的新客戶機會和更大的轉型項目產生更大的影響，在這些轉型項目中，我們將它們從自我管理轉變為我們提供為他們提供最新的雲端服務。所以我們也看到了一些事情的結合。我們採取的措施以及越來越多的客戶面臨著保護其環境免受入侵和網路攻擊的挑戰 - 網路安全工作變得更加占主導地位，更加複雜，圍繞其 IT 的入侵也越來越多環境。

So there is a pent-up demand to move over, but the reality is it is still a project. It's not just something you pick up and say, let's go do that tomorrow. So it's required this budgeting cycle. So we anticipate that the cloud conversions will not be nearly as impacted by the economic conditions because of the other influencing factors and that it will become a more prominent part of our delivery model as well as our financial results as we go forward into the back half of our fiscal year and on into fiscal 2026.

因此，存在著被壓抑的搬遷需求，但現實是這仍然是一個專案。這不僅僅是你拿起並說，我們明天就去做吧。所以需要這個預算週期。因此，我們預計，由於其他影響因素，雲端轉換將不會受到經濟狀況的影響，並且隨著我們進入下半年，它將成為我們的交付模式以及財務業績中更加突出的一部分我們的財年以及2026財年。

So we're very excited about that move being very well received by our clients, oftentimes a good bit of discussion. And then we're seeing more and more clients these days that are just saying they've got a migration strategy already planned for a comprehensive suite of their applications and we're part of that.

因此，我們對這項舉措受到客戶的好評感到非常興奮，並且經常進行一些討論。現在我們看到越來越多的客戶只是說他們已經為他們的應用程式的全面套件規劃了遷移策略，而我們是其中的一部分。

We don't anticipate an accelerated rate of terminations or cancellations of maintenance because of the nature of our applications, it would be very rare for a client to use the applications without any kind of support. So they're either going to stay with us on support, transition with us, or in some cases, maybe they'll get frustrated and move off. But when they move off, they're going to next application they find is going to be in the cloud too.

由於我們應用程式的性質，我們預計維護終止或取消的速度不會加快，客戶在沒有任何類型支援的情況下使用這些應用程式的情況非常罕見。因此，他們要么會繼續與我們一起獲得支持，與我們一起過渡，要么在某些情況下，他們可能會感到沮喪並離開。但當他們離開時，他們將轉向他們發現的下一個應用程式也將在雲端。

So they might be frustrated that we're asking them to move, but their other move is going to be to the cloud. So there's not a lot of good options. I'd say I want to stay in my old operating mode.

因此，他們可能會因為我們要求他們遷移而感到沮喪，但他們的另一個遷移將是遷移到雲端。所以沒有太多好的選擇。我想說我想保持原來的操作模式。

Great, thank you.

太好了，謝謝。

Zach Cummins

扎克·康明斯

Great. Hi, good afternoon, Allan and Vince. Thanks for taking my questions. Allan, I was curious if you could give an update on Garvis, I guess now been rebranded as DemandAI-plus. If I recall from the last earnings call, I think you were in maybe the later stages of some of these pilot programs, maybe transitioning into longer term contracts. So just curious if you can give any sort of update on the traction with those conversions and maybe the driving interest from new customers.

偉大的。嗨，下午好，艾倫和文斯。感謝您回答我的問題。艾倫，我很好奇你能否提供有關 Garvis 的最新信息，我想現在已更名為 DemandAI-plus。如果我記得上次的財報電話會議，我想你們可能正處於其中一些試點計畫的後期階段，可能會過渡到長期合約。因此，我很好奇您是否可以提供有關這些轉換的吸引力以及新客戶的驅動興趣的任何最新資訊。

Yeah, Zach, thank you for joining us. You nailed it. The company was Garvis, we've branded the product, the demand forecasting product to be DAI plus, DemandAI-plus. So that is, when we talk about DemandAI-plus, being prominent with our new clients and existing clients, we actually have a combination. It is the only forecasting capability we make available in the marketplace today.

是的，扎克，謝謝你加入我們。你成功了。該公司是 Garvis，我們將產品、需求預測產品命名為 DAI plus、DemandAI-plus。也就是說，當我們談論 DemandAI-plus 時，在我們的新客戶和現有客戶中脫穎而出，我們實際上有一個組合。這是我們當今市場上提供的唯一預測功能。

So if a client is going to get forecasting from us, that's what they're getting, what we acquired from the Garvis acquisition. So DAI plus, is the only thing out there. We have a combination, the folks that are moving from their self-managed environment over to our latest capabilities, they're migrating to Demand AI-plus. So that's an existing client migration.

因此，如果客戶要從我們這裡得到預測，這就是他們得到的，也是我們從 Garvis 收購中獲得的。所以 DAI plus 是唯一的東西。我們有一個組合，人們從自我管理的環境轉向我們的最新功能，他們正在遷移到需求人工智慧+。這就是現有的客戶端遷移。

We have clients who are already in the cloud being managed by us who are upgrading to DAI plus, to get the advanced capabilities and improved forecasting accuracy associated with it. It's certainly out there. And then related to the other part of the question was, how are we doing on latching down the clients that came over from the acquisition?

我們的一些客戶已經在由我們管理的雲端中，他們正在升級到 DAI plus，以獲得與之相關的高級功能和更高的預測準確性。它肯定就在那裡。與問題的另一部分相關的是，我們在鎖定收購後的客戶方面做得如何？

They were really short-term clients. Some of them still in pilot, some of them in long- term implementations, but they were going month to month. We've begun that lockdown, getting them into a longer-term contract structure. So that's ongoing and we're making some good progress there. Some of those are a little bigger environments as well. And we've been working with those clients to get them in the budget so that they would have the funds available to commit to a longer-term contract in the new calendar year.

他們確實是短期客戶。其中一些仍處於試點階段，有些處於長期實施階段，但它們正在逐月進行。我們已經開始封鎖，讓他們進入長期合約結構。所以這一切仍在繼續，我們正在這方面取得一些良好進展。其中一些也是更大的環境。我們一直在與這些客戶合作，將他們納入預算，以便他們有足夠的資金在新的日曆年簽訂長期合約。

So good progress all the way around. The team has fully adopted it, well-embraced. The R&D efforts have got it embedded directly into our platform. So it's seamless, just like all the rest of the applications.

一路上都取得了良好的進展。團隊已經完全採用並接受了它。研發工作已將其直接嵌入到我們的平台中。所以它是無縫的，就像所有其他應用程式一樣。

I understood that. That's helpful. And my one follow-up question is really on the competitive environments. With Manhattan releasing their own supply chain planning product this fall, just curious if you've seen any evolution in the marketplace and who you typically go up against.

我明白了。這很有幫助。我的一個後續問題其實是關於競爭環境的。曼哈頓今年秋天發布了自己的供應鏈規劃產品，只是想知道您是否看到了市場的任何演變以及您通常會面對的對手。

Well, related to that one specifically, it seems like it's a press release so far. So we've not had any awareness or no new involvement in them from a competitive landscape. Good company, so I don't want to be disrespectful of them in any way.

嗯，具體來說，到目前為止，這似乎是一份新聞稿。因此，我們在競爭格局中沒有任何意識或沒有新的參與。很好的公司，所以我不想以任何方式不尊重他們。

But getting into the supply chain planning space, being prominent in the supply chain planning space is not an easy game. So we'll see how that plays out. Other than that, our competitive landscape really hasn't changed, hasn't evolved at all. We still see the resistance, the number one competitor in our segments, which are predominantly the consumer goods companies. SAP dominates the space. They are, to the extent that they're there, the CIO and the CFO want to give them as many tries as they possibly can to deliver. But in complex supply chains, long lead times, it's just not very effective. So we have good success there.

但進入供應鏈規劃領域並在供應鏈規劃領域脫穎而出並不是一件容易的事。所以我們將看看結果如何。除此之外，我們的競爭格局確實沒有改變，根本沒有發展。我們仍然看到阻力，即我們細分市場中的頭號競爭對手，主要是消費品公司。SAP 在這一領域佔據主導地位。就他們的存在而言，資訊長和財務長希望盡可能嘗試交付成果。但在複雜的供應鏈和較長的交貨時間中，它的效率並不高。所以我們在那裡取得了良好的成功。

The second most prominent in the consumer goods space from an ERP standpoint is Microsoft, and they really don't have much to offer in this area at all. So we've got good competition from that standpoint when they're there. And then just the traditional folks. I think O9 has actually faded a bit. We aren't seeing them nearly as much and can access a little bit when you get closer to some of the segments where we cross over. But long lead time, complicated supply chains, not so much.

從 ERP 的角度來看，消費品領域第二大的公司是 Microsoft，但他們在這一領域確實沒有什麼可提供的。因此，從這個角度來看，當他們在那裡時，我們就有了很好的競爭。然後就是傳統的人。我覺得O9其實已經有點褪色了。我們幾乎看不到它們，當你靠近我們交叉的一些部分時，我們可以訪問一點。但交貨時間長、供應鏈複雜，情況就沒那麼嚴重了。

And then Blue Yonder seems to be distracted more around their supply chain execution capabilities, but we still see them quite frequently. But that seems to be more prominent than their portfolio, as far as we can tell. So a mixed environment, but really nothing changed over the last six to nine months or a year, probably.

Blue Yonder 似乎更關注其供應鏈執行能力，但我們仍然經常看到它們。但據我們所知，這似乎比他們的投資組合更為突出。這是一個混合的環境，但在過去的六到九個月或一年裡，可能真的沒有任何變化。

Understood. Well, that's very helpful context. I appreciate you taking my questions and best of luck with the rest of the quarter.

明白了。嗯，這是非常有幫助的背景。感謝您回答我的問題，並祝您在本季度剩餘的時間裡一切順利。

Thank you. Thank you for joining us.

謝謝。感謝您加入我們。

And it does appear that there are no further questions at this time.

目前看來確實沒有其他問題了。

All right. Well, Chloe, thank you so much for helping us today. Thank you all of you for joining us on the conference call today. We appreciate your time and attention, and we look forward to speaking to you again in the near future. Have a good afternoon.

好的。嗯，克洛伊，非常感謝你今天幫助我們。感謝大家今天參加我們的電話會議。感謝您的時間和關注，我們期待在不久的將來再次與您交談。祝你下午好。

This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful afternoon.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，度過一個美好的下午。