Lumen Technologies Inc (LUMN) 2023 Q1 法說會逐字稿

Greetings, and welcome to the Lumen Technologies First Quarter 2023 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded Tuesday, May 2, 2023.

您好，歡迎來到 Lumen Technologies 2023 年第一季度收益電話會議。 （操作員說明）提醒一下，本次會議將於 2023 年 5 月 2 日星期二錄製。

I would now like to turn the conference over to Mike McCormack, Senior Vice President, Investor Relations. Please go ahead.

我現在想將會議轉交給投資者關係高級副總裁 Mike McCormack。請繼續。

Thanks, Darcy. Good afternoon, everyone, and thank you for joining Lumen Technologies' First Quarter 2023 Earnings Call. On the call today are Kate Johnson, President and Chief Executive Officer; and Chris Stansbury, Executive Vice President and Chief Financial Officer.

謝謝，達西。大家下午好，感謝您加入 Lumen Technologies 的 2023 年第一季度財報電話會議。今天接聽電話的是總裁兼首席執行官凱特·約翰遜 (Kate Johnson)；執行副總裁兼首席財務官 Chris Stansbury。

Before we begin, I need to call your attention to our safe harbor statement on Slide 2 of our first quarter 2023 presentation, which notes that this conference call may include forward-looking statements subject to certain risks and uncertainties. All forward-looking statements should be considered in conjunction with the cautionary statements on Slide 2 and the risk factors in our SEC filings.

在我們開始之前，我需要提請您注意我們在 2023 年第一季度演示文稿的幻燈片 2 上的安全港聲明，其中指出本次電話會議可能包含受某些風險和不確定性影響的前瞻性聲明。所有前瞻性陳述都應與幻燈片 2 中的警示性陳述以及我們提交給美國證券交易委員會的文件中的風險因素一起考慮。

We'll be referring to certain non-GAAP financial measures reconciled to the most comparable GAAP measures, which can be found in our earnings press release. In addition, certain metrics discussed today exclude cost for special items as detailed in our earnings materials, which can be found on the Investor Relations section of the Lumen website.

我們將指的是某些非 GAAP 財務指標與最具可比性的 GAAP 指標相協調，這些指標可以在我們的收益新聞稿中找到。此外，今天討論的某些指標不包括我們的收益材料中詳述的特殊項目的成本，這些材料可以在 Lumen 網站的投資者關係部分找到。

With that, I'll turn the call over to Kate.

有了這個，我會把電話轉給凱特。

Thanks, Mike. Good afternoon, everyone, and thanks for joining us today. Before I turn the call over to Chris to discuss our first quarter results, I want to give you an update on our company's turnaround plans. As I shared on our last call, we've established a new mission for Lumen: to digitally connect people, data and applications quickly, securely and effortlessly. We assembled a new executive leadership team and created 5 core priorities for the company. We then set financial expectations that included the funding of a portfolio of change programs to deliver on our revenue and EBITDA stability goals.

謝謝，邁克。大家下午好，感謝今天加入我們。在我將電話轉給克里斯討論我們的第一季度業績之前，我想向您介紹一下我們公司的周轉計劃的最新情況。正如我在上次電話會議上分享的那樣，我們為 Lumen 確立了新使命：快速、安全、輕鬆地以數字方式連接人員、數據和應用程序。我們組建了一個新的執行領導團隊，並為公司製定了 5 個核心優先事項。然後，我們設定了財務預期，其中包括為一系列變革計劃提供資金，以實現我們的收入和 EBITDA 穩定性目標。

It's still early days in our transformation journey. We're staffing up the change programs with the right talent. We're standing up an agile project framework to standardize how work gets done, and we're implementing business analytics across the company to help drive execution rigor. These things are the basic scaffolding needed to support our transformation efforts.

我們的轉型之旅仍處於早期階段。我們正在為變革計劃配備合適的人才。我們正在建立一個敏捷的項目框架來標準化工作的完成方式，我們正在整個公司實施業務分析以幫助推動執行的嚴謹性。這些東西是支持我們轉型工作所需的基本腳手架。

Now that said, in addition to an improved revenue story this quarter, we're seeing green shoots of progress in several areas. I'll share some of the leading indicators with you now aligned to our core priorities. I'll start with the first 2 priorities: to develop company-wide customer obsession and to invest and innovate for growth. Obviously, these priorities go hand in hand. We're immersing ourselves in our customer challenges and using that proximity to guide our innovation investment decisions. It's helping us pivot to an outside-in mindset and accelerating our speed to market.

話雖如此，除了本季度收入有所改善外，我們還看到了幾個領域取得進展的萌芽。我將與您分享一些與我們的核心優先事項一致的領先指標。我將從前 2 個優先事項開始：發展全公司範圍內的客戶痴迷，以及投資和創新以實現增長。顯然，這些優先事項是齊頭並進的。我們正沉浸在客戶面臨的挑戰中，並利用這種接近性來指導我們的創新投資決策。它幫助我們轉向由外而內的思維方式，並加快我們的上市速度。

We already have an in-market example of high-value innovation using this new approach. On April 20, we launched Lumen SASE with Rapid Threat Defense, our company's proprietary threat detection and remediation platform powered by our very own Black Lotus Labs. Now you might be asking, why is this innovation example interesting? Because we sat side-by-side with customers and heard their feedback loudly and clearly. They have enough threat detection reports. What they want -- what they need is an automated threat detection and remediation capability.

我們已經有了使用這種新方法進行高價值創新的市場示例。 4 月 20 日，我們推出了帶有 Rapid Threat Defense 的 Lumen SASE，這是我們公司專有的威脅檢測和補救平台，由我們自己的 Black Lotus Labs 提供支持。現在您可能會問，為什麼這個創新示例很有趣？因為我們與客戶並排坐在一起，大聲而清晰地聽到了他們的反饋。他們有足夠的威脅檢測報告。他們想要的——他們需要的是一種自動化的威脅檢測和補救能力。

So with Lumen's intellectual property, we co-innovated with our partner, Fortinet to leapfrog traditional threat protection offerings. And from concept to commercialization, it took just a few short months. And enterprise customers like Huitt-Zollars, a full-service multi-disciplined design firm with extensive construction management expertise, they're seeing the value. We call this new VC-style approach to innovation, the Lumen Growth Operating System, or the GrowthOS for short.

因此，利用 Lumen 的知識產權，我們與我們的合作夥伴 Fortinet 共同創新，以超越傳統的威脅防護產品。而從概念到商業化，只用了短短幾個月的時間。像 Huitt-Zollars 這樣的企業客戶，一家提供全方位服務的多學科設計公司，擁有廣泛的施工管理專業知識，他們看到了價值。我們將這種新的 VC 式創新方法稱為 Lumen Growth Operating System，簡稱 GrowthOS。

And it's not only helping us become more customer focused, but it's also driving tighter alignment with important ecosystem partners while uncovering net new problem spaces where Lumen's proprietary gifts can drive value. For example, we're excited to announce that we're partnering with Microsoft using tools like Digital Twins and large-scale 3D environments that need edge-to-cloud capabilities to support next-gen operations.

它不僅幫助我們變得更加以客戶為中心，而且還推動與重要生態系統合作夥伴更緊密地結合，同時發現 Lumen 的專有禮物可以推動價值的淨新問題空間。例如，我們很高興地宣布，我們正在與 Microsoft 合作，使用數字孿生和需要邊緣到雲功能來支持下一代操作的大型 3D 環境等工具。

Together, Microsoft and Lumen are collaborating with great companies like Sunbelt, a global leader in the equipment rental industry, to solve complex business problems ranging from emergency response and supply chain management to fleet optimization and environmental risk assessment. Our partners and customers alike see the value of our network, security and edge compute capabilities. And even more, they're recognizing and enjoying our appetite to co-innovate.

Microsoft 和 Lumen 正在與設備租賃行業的全球領導者 Sunbelt 等偉大公司合作，以解決從應急響應和供應鏈管理到車隊優化和環境風險評估等複雜的業務問題。我們的合作夥伴和客戶都看到了我們網絡、安全和邊緣計算能力的價值。更重要的是，他們認識到並享受我們共同創新的意願。

Building reliable execution engine in both mass markets and enterprise is another core priority for Lumen. Here, too, we see several positive indicators of progress on our path to growth. Let's start with enterprise. You may recall that beginning in January of 2023, we changed our sales incentive plan to drive a laser focus on growth. In the first quarter, we outperformed our internal revenue target for growth products with strength in IP, wavelength, SASE, managed security and UC&C. It's clear when we focus, we win.

在大眾市場和企業建立可靠的執行引擎是 Lumen 的另一個核心優先事項。在這裡，我們也看到了我們在增長道路上取得進展的幾個積極指標。讓我們從企業開始。您可能還記得，從 2023 年 1 月開始，我們更改了銷售激勵計劃，以推動激光聚焦於增長。在第一季度，我們憑藉在 IP、波長、SASE、託管安全和 UC&C 方面的優勢，超出了增長產品的內部收入目標。很明顯，當我們專注時，我們就贏了。

At the start of the new year, we established a dedicated mid-market sales team, augmenting both direct and indirect selling resources to drive new logo acquisitions. And in Q1, new logo adds were up 5% sequentially, and importantly, these new customers have about 30% higher sales value than the new customer cohort added in the prior quarter.

新年伊始，我們成立了專門的中端市場銷售團隊，增加直接和間接銷售資源以推動新標識的收購。在第一季度，新標識的增加量環比增長了 5%，重要的是，這些新客戶的銷售額比上一季度增加的新客戶群體高出約 30%。

Now to stem organic customer churn and revenue decline in legacy voice products, we established a dedicated outbound calling team to migrate customers to modern UC&C platforms, paired with Lumen network offerings, of course. Early results show that strategic migrations of these legacy customers increase the average spend by about 10%, reduces risk of churn and gives Lumen a modern platform through which we can continue to upsell next-gen offerings.

現在，為了阻止遺留語音產品的有機客戶流失和收入下降，我們建立了一個專門的外呼團隊，將客戶遷移到現代 UC&C 平台，當然還要搭配 Lumen 網絡產品。早期結果表明，這些傳統客戶的戰略遷移使平均支出增加了約 10%，降低了客戶流失的風險，並為 Lumen 提供了一個現代平台，我們可以通過該平台繼續追加銷售下一代產品。

The powerful combination of customer obsession and focused go-to-market execution is really starting to bear fruit. We have several recent wins with customers like Byline Bank, ProLiance Surgeons and iHeartMedia, all of whom trust Lumen with their mission-critical applications as they seek to modernize their digital transformation.

對客戶的痴迷和專注於上市的執行力的強大結合真正開始結出碩果。我們最近與 Byline Bank、ProLiance Surgeons 和 iHeartMedia 等客戶取得了多項勝利，這些客戶在尋求實現數字化轉型現代化時都信任 Lumen 的關鍵任務應用程序。

Now we recognize that we have a lot of work to do on our enterprise sales execution. Over the next few quarters, you'll see us continue to galvanize our sales readiness programs, refuel our digital marketing campaigns and refine our analytics-driven sales platform and upscale our talent across our field organization.

現在我們認識到我們在企業銷售執行方面有很多工作要做。在接下來的幾個季度中，您將看到我們繼續激勵我們的銷售準備計劃，為我們的數字營銷活動加油，完善我們的分析驅動的銷售平台，並在我們的現場組織中提升我們的人才。

I'm going to turn to mass markets next. As you know, we did a reassessment of our Quantum Fiber buildup plan during the fourth quarter of last year. We pivoted away from focusing on counting enabled locations. And instead, we're targeting locations that have the greatest potential for penetration. This move required significant business process and planning changes but will deliver superior returns for our shareholders. Our fiber build factory is now up and running fast, with planning yields approaching 90%, up from as low as 10% last year.

接下來我將轉向大眾市場。如您所知，我們在去年第四季度重新評估了我們的 Quantum Fiber 建設計劃。我們不再專注於計算啟用的位置。相反，我們的目標是具有最大滲透潛力的位置。此舉需要對業務流程和計劃進行重大更改，但將為我們的股東帶來豐厚的回報。我們的纖維構建工廠現已啟動并快速運行，規劃收益率接近 90%，高於去年的低至 10%。

In the first quarter of 2023, we saw net enablement growth accelerate, with March enablements eclipsing January enablements by more than double. This gives us confidence that we'll meet or exceed our 2023 enablement target of 500,000 locations. What's more, fiber installs have exceeded copper installs this quarter, and that gap should widen, accelerating fiber subscriber growth and revenue growth going forward. We're proud to share that our fiber customers, majority of whom choose our 1-gig offering, are enjoying Quantum's world-class experience, driving a Net Promoter Score of above positive 60.

在 2023 年第一季度，我們看到淨支持增長加速，3 月份的支持比 1 月份的支持增長了一倍多。這使我們有信心達到或超過 2023 年 500,000 個地點的啟用目標。更重要的是，本季度光纖安裝量已超過銅纜安裝量，而且這一差距應該會擴大，從而加速光纖用戶增長和未來收入增長。我們很自豪地告訴大家，我們的光纖客戶（其中大多數選擇我們的 1-gig 產品）正在享受 Quantum 的世界級體驗，推動 Net Promoter Score 超過 60。

Look, I hope these impressive execution results make it clear that the Quantum Fiber business is core to our strategy. You're going to see us continue to lean in hard as we ramp our build pace and increase our subscriber adds moving forward.

看，我希望這些令人印象深刻的執行結果表明量子光纖業務是我們戰略的核心。隨著我們加快構建步伐並增加訂閱者數量，您會看到我們繼續努力。

Our priority to radically simplify Lumen, it comes in many forms, from rationalizing IT applications to reducing SKUs in our product portfolio and so much more. We're making material progress on this key priority, which will not only help reduce cost but will also be the foundation for how we create quick, secure and effortless digital experiences for our customers, partners, employees.

我們的首要任務是從根本上簡化 Lumen，它有多種形式，從合理化 IT 應用程序到減少我們產品組合中的 SKU 等等。我們在這一關鍵優先事項上取得了實質性進展，這不僅有助於降低成本，而且還將成為我們為客戶、合作夥伴和員工創造快速、安全和輕鬆的數字體驗的基礎。

I'll share a few quick examples for you now. First, we established an evergreen program called the Stop List, where our 29,000 employees can share ideas for driving simplification by shutting down business practices that don't seem to add value or align to our strategy. And so far, we've shut down 45 nonvalue-added processes, saving the company about 120,000 people-hours and removing tens of millions of dollars of operating costs, which we're now redeploying to support our growth agenda.

我現在將與您分享一些簡單的示例。首先，我們建立了一個名為“停止列表”的常青計劃，我們的 29,000 名員工可以在該計劃中分享通過關閉似乎不會增加價值或不符合我們戰略的業務實踐來推動簡化的想法。到目前為止，我們已經關閉了 45 個非增值流程，為公司節省了大約 120,000 個工時，並消除了數千萬美元的運營成本，我們現在正在重新部署這些成本以支持我們的增長議程。

Next, we've made great progress in dramatically simplifying our product portfolio. We started the year with more than 12,000 enterprise SKUs and retired more than 60% of them so far just by eliminating legacy products. This simplification positions us well to reduce our enterprise ordering systems from 10 systems down to 3, which will dramatically improve our billing accuracy, it's going to reduce customer care costs, and of course, it's going to improve customer experience overall.

接下來，我們在大幅簡化產品組合方面取得了長足進步。今年年初，我們擁有超過 12,000 個企業 SKU，到目前為止，僅通過淘汰舊產品就淘汰了 60% 以上的企業 SKU。這種簡化使我們能夠很好地將我們的企業訂購系統從 10 個系統減少到 3 個，這將顯著提高我們的計費準確性，它將降低客戶服務成本，當然，它將改善整體客戶體驗。

There are just so many more examples of simplification at Lumen such as unifying the company onto 1 communication platform, down from 5, or upgrading our ERP system to reduce our bespoke and complicated business processes. Our simplification agenda is aggressive and it's going to yield material results, and I'll continue to share progress with you throughout the year.

Lumen 的簡化示例還有很多，例如將公司從 5 個減少到 1 個通信平台，或者升級我們的 ERP 系統以減少定制和復雜的業務流程。我們的簡化議程是積極的，它將產生實質性的結果，我將在全年繼續與您分享進展。

Okay, finally, I've been very, very public about our core priority to rebuild this company, starting with our greatest asset, our people. We're building a culture based on team trust and transparency, one that celebrates clarity, customer obsession, a growth mindset and courage, basically one that enables change. We have a lot of progress to share in this space.

好吧，最後，我已經非常、非常公開地公開了我們重建這家公司的核心優先事項，從我們最大的資產——我們的員工開始。我們正在建立一種基於團隊信任和透明度的文化，一種崇尚清晰、客戶至上、成長心態和勇氣的文化，基本上是一種能夠促成變革的文化。我們在這個領域有很多進展可以分享。

First, Lumen is being recognized by the industry for several reasons. In the past few months, we were named as one of America's Most Trustworthy Companies. We were recognized for championing diversity, and we were celebrated for excellence in providing employees with remote work flexibility. Second, we're making bold investments that demonstrate our commitment to building a diverse and inclusive company. Over the past 90 days, we launched initiatives to revamp our performance management systems, systematize courageous leadership skill building and drive greater transparency and remediation of pay disparities with the pay equity platform, Syndeo.

首先，Lumen 被業界認可有幾個原因。在過去的幾個月裡，我們被評為美國最值得信賴的公司之一。我們因倡導多元化而受到認可，並因在為員工提供遠程工作靈活性方面表現出色而受到讚譽。其次，我們正在進行大膽的投資，以表明我們致力於打造多元化和包容性公司的承諾。在過去的 90 天裡，我們發起了一些舉措來改進我們的績效管理系統，將勇敢的領導技能建設系統化，並通過薪酬公平平台 Syndeo 提高透明度和補救薪酬差異。

You take the industry recognition and the people investments I just described, they seem to be paying off. We're seeing lower employee turnover, higher engagement within our workforce and more outside interest in joining the Lumen team. In fact, we've had a greater than threefold increase in employment applications year-over-year. It's clear that we're building a company and a culture that people really want to be a part of, and I'm so proud of the team for making such material progress across all of our priorities in such a short period of time.

考慮到我剛才描述的行業認可和人員投資，它們似乎正在得到回報。我們看到員工流失率降低，員工敬業度提高，外界對加入 Lumen 團隊的興趣增加。事實上，我們的就業申請同比增長了三倍以上。很明顯，我們正在建設一家人們真正想成為其中一部分的公司和文化，我為團隊在如此短的時間內在我們所有優先事項上取得如此重大進展感到自豪。

And with that, I'm going to turn the call over to Chris to discuss our first quarter results. Chris?

有了這個，我將把電話轉給克里斯來討論我們第一季度的業績。克里斯？

Thanks, Kate, and good afternoon, everyone. As Kate described, this is a year of rapid change at Lumen. We're aggressively upgrading systems, processes and our culture as we seek to modernize Lumen to win in the marketplace and return Lumen to growth. While it's early in our journey, we are pleased with the improvements we're starting to see. A specific call-out is the significant improvement we're seeing in our mass markets execution, where our Quantum reassessment period allowed us to adjust our plan, and as we move forward, is proving to have been an excellent decision. As Kate said, we're back and running fast.

謝謝，凱特，大家下午好。正如凱特所描述的，今年是 Lumen 快速變化的一年。我們正在積極升級系統、流程和我們的文化，以實現 Lumen 的現代化，以在市場中取勝並使 Lumen 恢復增長。雖然我們的旅程還處於早期階段，但我們對開始看到的改進感到滿意。一個具體的呼籲是我們在大眾市場執行中看到的重大改進，我們的 Quantum 重新評估期允許我們調整我們的計劃，並且隨著我們的前進，事實證明這是一個很好的決定。正如凱特所說，我們回來了，而且跑得很快。

Before moving on to our first quarter results, I'd like to discuss a few actions we've taken to strengthen our balance sheet to position our company to return to growth. In mid-March, we announced an exchange offer for Lumen's senior notes. This deleveraging action was a win-win. During Q1, we reduced our principal debt balance by $620 million, and Lumen's senior noteholders that participated in the exchange received a higher coupon as well as secured debt in the Level 3 silo.

在繼續我們的第一季度業績之前，我想討論一下我們為加強資產負債表而採取的一些行動，以使我們的公司能夠恢復增長。 3 月中旬，我們宣布了對 Lumen 高級票據的交換要約。這種去槓桿化行動是雙贏的。在第一季度，我們將本金債務餘額減少了 6.2 億美元，參與交換的 Lumen 優先票據持有人獲得了更高的息票以及 3 級筒倉中的擔保債務。

In the first quarter exchange transactions, we issued $915 million of Level 3 secured bonds, and Lumen's annual interest expense remains relatively unchanged. This exchange, combined with the expected proceeds from the EMEA transaction, will allow us to focus on executing against our 2-year turnaround plan, which we expect will return Lumen to growth. We will continue to pursue additional opportunities to enhance our capital structure to support our long-term plan, which we expect will provide strong returns for our stakeholders.

在一季度外匯交易中，我們發行了 9.15 億美元的 Level 3 擔保債券，Lumen 的年度利息支出保持相對不變。此次交換，加上 EMEA 交易的預期收益，將使我們能夠專注於執行我們的 2 年周轉計劃，我們預計這將使 Lumen 恢復增長。我們將繼續尋求更多機會來加強我們的資本結構，以支持我們的長期計劃，我們預計這將為我們的利益相關者帶來豐厚的回報。

With that, I'll discuss the financial summary of our first quarter. This quarter, we have expanded our reporting to include Grow, Nurture, Harvest and Other by business channel. This structure includes a subtotal with Grow, Nurture and Harvest giving visibility to our primary focus within the business channel results, excluding Other. As a reminder, the Other category revenue includes equipment and IT solutions, which tend to experience fluctuations due to the variable nature of these products.

有了這個，我將討論我們第一季度的財務摘要。本季度，我們擴大了報告範圍，按業務渠道包括增長、培育、收穫和其他。該結構包括一個包含成長、培育和收穫的小計，使我們能夠看到我們在業務渠道結果中的主要關注點，不包括其他。提醒一下，其他類別的收入包括設備和 IT 解決方案，由於這些產品的可變性，它們往往會出現波動。

Additionally, beginning this quarter and to better align with recent updates to the SEC's Reg G compliance and disclosure interpretations, we will no longer report revenue, adjusted EBITDA, adjusted EBITDA margin or CapEx on a modified basis, which excludes the impacts of our divested businesses as well as CAF II within historical periods. Instead, we will provide supplemental information on these discrete impacts as footnotes, where applicable, in our earnings presentation and a separate page in our financial training schedule. Accordingly, on this call, I will reference our financial performance primarily on a sequential basis for better comparability and to provide color on the impact that CAF II, the divestitures and commercial agreements had on select year-over-year results.

此外，從本季度開始，為了更好地與 SEC 的 Reg G 合規性和披露解釋的最新更新保持一致，我們將不再報告收入、調整後的 EBITDA、調整後的 EBITDA 利潤率或資本支出，這不包括我們剝離業務的影響以及歷史時期內的 CAF II。相反，我們將在我們的收益報告中以腳註的形式提供有關這些離散影響的補充信息（如適用），並在我們的財務培訓計劃中另闢一頁。因此，在這次電話會議上，我將主要按順序參考我們的財務業績，以提高可比性，並為 CAF II、資產剝離和商業協議對特定年度業績的影響提供色彩。

It's important to note that excluding the impacts we have provided, our year-over-year growth rates are substantially better than the reported rates and are showing improvement in key areas. Our first quarter total revenue declined 1.6% on a sequential basis to $3.738 billion. Adjusted EBITDA was $1.251 billion in the first quarter, with a 33.5% margin. Free cash flow was negative $75 million in the first quarter, including $90 million of taxes paid related to our 2 divestitures in 2022. We now expect total transaction-related taxes of around $1 billion, with the majority of the balance being paid in the second quarter of this year from cash on hand. We reduced net debt by $582 million during the first quarter.

重要的是要注意，排除我們提供的影響，我們的同比增長率大大高於報告的增長率，並且在關鍵領域顯示出改善。我們第一季度的總收入環比下降 1.6% 至 37.38 億美元。第一季度調整後的 EBITDA 為 12.51 億美元，利潤率為 33.5%。第一季度自由現金流為負 7500 萬美元，其中包括與 2022 年兩次資產剝離相關的 9000 萬美元稅收。我們現在預計與交易相關的稅收總額約為 10 億美元，其中大部分餘額將在第二季度支付今年季度來自手頭現金。我們在第一季度減少了 5.82 億美元的淨債務。

Next, I'll review our detailed revenue results for the quarter. Reported revenue was down 20.1%, with the impact of CAF II, the divestitures and commercial agreements representing approximately 80% of the reported decline. Within our 2 key segments, business revenue declined 1.6% sequentially to $2.956 billion. Mass markets revenue also declined 1.6% sequentially to $782 million. Business revenue declined 13.1% on a year-over-year basis, with the impact of the divestitures and commercial agreements representing approximately 3/4 of the reported decline. Mass markets revenue declined 38.7% on a year-over-year basis, with the impact of CAF II and the divestiture impact representing approximately 86% of the reported decline.

接下來，我將回顧本季度的詳細收入結果。報告收入下降 20.1%，受 CAF II 的影響，資產剝離和商業協議約佔報告收入下降的 80%。在我們的 2 個關鍵部門中，業務收入環比下降 1.6% 至 29.56 億美元。大眾市場收入也環比下降 1.6% 至 7.82 億美元。業務收入同比下降 13.1%，資產剝離和商業協議的影響約佔報告下降的 3/4。大眾市場收入同比下降 38.7%，其中 CAF II 的影響和剝離影響約佔報告下降的 86%。

Within our enterprise channels, which is our business segment excluding wholesale, revenue declined 1.4% sequentially. Our exposure to legacy voice revenue continues to improve and is now approximately 11% of enterprise channel revenue and is down approximately 50 basis points sequentially. Large enterprise revenue declined 1.9% sequentially in the first quarter. Large enterprise revenue trends improved year-over-year when excluding the impact of divested businesses, driven primarily by IP and colocation.

在我們的企業渠道中，即我們不包括批發的業務部門，收入環比下降 1.4%。我們對傳統語音收入的敞口繼續改善，現在約佔企業渠道收入的 11%，環比下降約 50 個基點。第一季度大型企業收入環比下降 1.9%。排除主要受 IP 和託管驅動的剝離業務的影響，大型企業收入趨勢同比有所改善。

Public sector revenue declined 0.2% sequentially. Excluding the impacts of our divested businesses, public sector improved significantly from the year-over-year decline last quarter on the same basis. As you know, we've had major wins in this channel over the last 2 years, and those wins are ramping up in revenue. You may have also seen our recent U.S. Defense Information Systems $223 million contract win for providing modern hybrid cloud, voice and conferencing services. Our partnership with the public sector is strong, and we appreciate the confidence these entities have in Lumen and our significant capabilities to deliver these mission-critical solutions.

公共部門收入環比下降 0.2%。排除我們剝離業務的影響，公共部門在同一基礎上較上一季度的同比下降有顯著改善。如您所知，過去 2 年我們在該渠道取得了重大勝利，而且這些勝利的收入也在增加。您可能還看到我們最近贏得了美國國防信息系統公司 2.23 億美元的合同，以提供現代混合雲、語音和會議服務。我們與公共部門的合作夥伴關係牢固，我們感謝這些實體對 Lumen 的信心以及我們提供這些關鍵任務解決方案的強大能力。

Mid-market revenue declined 1.3% sequentially. Excluding the impacts of our divested businesses, there was a similar level of year-over-year decline compared to last quarter. Strength in IP and UC&C was offset by declines in other product categories. Wholesale revenue declined 2.2% sequentially. This is a channel that will continue to decline over time and one we manage for cash.

中端市場收入環比下降 1.3%。排除我們剝離業務的影響，與上一季度相比，同比下降幅度相似。 IP 和 UC&C 的實力被其他產品類別的下滑所抵消。批發收入環比下降 2.2%。這是一個隨著時間的推移將繼續下降的渠道，也是我們管理現金的渠道。

Moving to our business product life cycle reporting. Grow products revenue grew 3.4% sequentially. Importantly, if we exclude the impacts of our divested businesses, this quarter's results showed significant improvement in year-over-year growth at close to double the quarterly sequential growth rate. While this level of improvement may not be linear as we move forward, we expect continued strength in this area as we execute on our overall pivot to growth.

轉到我們的業務產品生命週期報告。種植產品收入環比增長 3.4%。重要的是，如果我們排除剝離業務的影響，本季度的結果顯示同比增長顯著改善，接近季度環比增長率的兩倍。雖然隨著我們的前進，這種改進水平可能不是線性的，但我們預計隨著我們執行整體增長重點，這一領域將繼續保持強勁勢頭。

The Grow category now represents approximately 38% of our business segment and carried an approximate 83% direct margin this quarter. For added color, Grow products represented 58% of our enterprise sales in the first quarter, an improvement from 4Q '22. Getting the Grow product category to grow faster is a key focus of our strategy, and we're pleased with these early results.

Grow 類別現在約占我們業務部門的 38%，本季度的直接利潤率約為 83%。對於增加顏色，第一季度 Grow 產品占我們企業銷售額的 58%，比 22 年第四季度有所改善。讓 Grow 產品類別增長更快是我們戰略的重點，我們對這些早期結果感到滿意。

Nurture products revenue declined 3.1% sequentially, driven by VPN and Ethernet. We will likely face headwinds within both the Nurture and Harvest product categories as we actively work to maintain customer relationships and maximize customer lifetime value by migrating customers to newer technology solutions. Nurture now represents about 31% of our business segment and carried an approximate 65% direct margin this quarter.

在 VPN 和以太網的推動下，培育產品收入環比下降 3.1%。我們可能會在 Nurture 和 Harvest 產品類別中面臨阻力，因為我們積極努力維護客戶關係並通過將客戶遷移到更新的技術解決方案來最大化客戶生命週期價值。培育現在約占我們業務部門的 31%，本季度的直接利潤率約為 65%。

Harvest products revenue declined 4.9% sequentially. As with Nurture, we will see headwinds in this category as we pivot customers to newer technologies with a significant focus on voice migration. Our Harvest team continues to manage these products both by extending the life of some products while also managing customers back to Grow products. Recall that Harvest is an important part of our business and generates cash to fuel our growth initiatives. Harvest now represents approximately 25% of our business segment and carried an approximate 78% direct margin this quarter.

Harvest 產品收入環比下降 4.9%。與 Nurture 一樣，隨著我們將客戶轉向重點關注語音遷移的新技術，我們將看到這一類別的逆風。我們的 Harvest 團隊繼續管理這些產品，既通過延長某些產品的使用壽命，又通過管理客戶恢復 Grow 產品。回想一下，Harvest 是我們業務的重要組成部分，它產生現金來推動我們的增長計劃。 Harvest 現在約占我們業務部門的 25%，本季度的直接利潤率約為 78%。

Other products revenue declined 9.4% sequentially. As I mentioned earlier, our Other product revenue tends to experience fluctuations due to the variable nature of these products.

其他產品收入環比下降 9.4%。正如我之前提到的，由於這些產品的可變性，我們的其他產品收入往往會出現波動。

Moving on to Mass Markets. Revenue declined 1.6% sequentially. Our Mass Markets fiber broadband revenue grew 2.7% sequentially and represented approximately 29% of Mass Markets' broadband revenue. Also note that our exposure to legacy voice and other services revenue continues to improve, with a nearly 60 basis point reduction sequentially. During the quarter, total fiber broadband enablements were approximately 120,000, bringing the total fiber-enabled locations to approximately 3.3 million as of March 31. We had a strong ramp in fiber enablements during the quarter. And as Kate mentioned, we are confident in our ability to meet or exceed our 500,000 new enabled locations target for 2023. We expect to continue ramping this build pace in 2024 and look forward to sharing a longer-term view at our Investor Day on June 5.

轉向大眾市場。收入環比下降 1.6%。我們的大眾市場光纖寬帶收入環比增長 2.7%，約佔大眾市場寬帶收入的 29%。另請注意，我們對傳統語音和其他服務收入的敞口繼續改善，環比減少近 60 個基點。本季度，光纖寬帶啟用總數約為 120,000，使啟用光纖的地點總數達到約 330 萬個（截至 3 月 31 日）。本季度我們在光纖啟用方面實現了強勁增長。正如 Kate 提到的，我們有信心在 2023 年實現或超過 500,000 個新啟用地點的目標。我們預計將在 2024 年繼續加快這一建設步伐，並期待在 6 月的投資者日分享更長遠的觀點5.

In the first quarter, we added 24,000 Quantum Fiber customers. This brings our total Quantum Fiber subscribers to 856,000. As Kate noted, we are ramping quickly with enablement and subscriber momentum building. Our installs of fiber broadband customers exceeded our copper installs, a trend that we expect to continue to widen going forward. Fiber ARPU was approximately $60 in the first quarter, and we see ARPU expansion opportunities with the adoption of in-home WiFi solutions, up-tiering, enterprise-grade security solutions and our recently launched multi-gig offerings, delivering up to 8-gig symmetric services. The plant we are building is capable of further cost-effective multi-gig speed enhancements going forward.

第一季度，我們增加了 24,000 個 Quantum Fiber 客戶。這使我們的 Quantum Fiber 用戶總數達到 856,000。正如 Kate 指出的那樣，我們正在通過支持和用戶勢頭建設迅速提升。我們的光纖寬帶客戶安裝量超過了我們的銅纜安裝量，我們預計這一趨勢將繼續擴大。第一季度光纖 ARPU 約為 60 美元，我們看到了通過採用家庭 WiFi 解決方案、上層、企業級安全解決方案和我們最近推出的多千兆產品（提供高達 8 千兆）的 ARPU 擴展機會對稱服務。我們正在建造的工廠能夠在未來進一步提高成本效益的多千兆速度。

As of March 31, our penetration of legacy copper broadband was less than 12%, highlighting the significant share-taking opportunity as we accelerate the Quantum Fiber build. Our Quantum Fiber penetration stood at approximately 26%. And as we expand our footprint, we expect penetration to fall as we increase our addressable market at a higher rate than new customers are added.

截至 3 月 31 日，我們對傳統銅寬帶的滲透率不到 12%，突顯出隨著我們加速 Quantum Fiber 建設的重要股份收購機會。我們的量子纖維滲透率約為 26%。隨著我們擴大我們的足跡，我們預計滲透率會下降，因為我們以高於新客戶增加的速度增加我們的潛在市場。

Many investors have asked about competing fiber activity. What we are typically seeing is activity on the distant fringes of our core growth markets. Our 6 core metros are hard markets to build out. Zoning and permitting hurdles as well as the underground network infrastructure in these markets, which carries a higher build cost per location, may make other regions more appealing to competitors. While we took a small risk with our Quantum reevaluation phase, we did not see any meaningful change in competitive activity during that short window. As our enablement and subscriber results this quarter demonstrate, we are now focused on accelerating our deployment of fiber-enabled locations and adding subscribers.

許多投資者詢問了競爭性纖維活動。我們通常看到的是我們核心增長市場的遙遠邊緣的活動。我們的 6 個核心都市圈是難以建立的市場。這些市場的分區和許可障礙以及地下網絡基礎設施（每個位置的建設成本更高）可能會使其他地區對競爭對手更具吸引力。雖然我們在 Quantum 重新評估階段冒了一個小風險，但在那個短暫的窗口期間，我們沒有看到競爭活動有任何有意義的變化。正如我們本季度的支持和訂戶結果所表明的那樣，我們現在專注於加快部署支持光纖的位置並增加訂戶。

Our Quantum Fiber 2020 vintage frozen penetration is now above 30%, and we will provide an update next quarter with our 18-month penetration rate of the 2021 vintage. Our Quantum Fiber NPS score is now greater than positive 60, an indication of the quality, value and superior service that Quantum Fiber delivers. Quantum Fiber is an all-digital multi-gig capable prepaid product that features simple pricing with no contracts, helping reduce call center volumes and supporting our very strong NPS scores. We continue to experience no discernible change in customer payment patterns.

我們的 Quantum Fiber 2020 年份冷凍滲透率現在超過 30%，我們將在下個季度提供 2021 年份的 18 個月滲透率更新。我們的 Quantum Fiber NPS 得分現在大於正 60，這表明 Quantum Fiber 提供的質量、價值和優質服務。 Quantum Fiber 是一種全數字多千兆預付費產品，具有簡單的定價特點，無需合同，有助於減少呼叫中心的數量並支持我們非常強大的 NPS 分數。我們繼續在客戶支付模式上沒有明顯的變化。

Turning to adjusted EBITDA. For the first quarter of 2023, adjusted EBITDA was $1.251 billion compared to $1.966 billion in the year ago quarter. The first quarter of last year included $415 million related to the divested businesses and $59 million for CAF II. And the first quarter of this year included a negative impact of $48 million from divestiture-related commercial agreements. These items represent roughly 3/4 of the year-over-year decline. As we discussed in our fourth quarter 2022 earnings call, EBITDA will be pressured from a year-over-year perspective, based on higher inflationary impacts, dissynergies from divested businesses, investments in growth and optimization initiatives and the impact of customer migrations as we focus on improving our customer experience with newer technologies and enhancing customer lifetime value. We incorporated these impacts into our annual guidance and are not changing those assumptions.

轉向調整後的 EBITDA。 2023 年第一季度，調整後的 EBITDA 為 12.51 億美元，而去年同期為 19.66 億美元。去年第一季度包括與剝離業務相關的 4.15 億美元和與 CAF II 相關的 5900 萬美元。今年第一季度，與資產剝離相關的商業協議產生了 4800 萬美元的負面影響。這些項目約占同比下降的 3/4。正如我們在 2022 年第四季度財報電話會議上討論的那樣，基於更高的通脹影響、剝離業務的不協同效應、增長和優化計劃的投資以及我們關注的客戶遷移的影響，EBITDA 將面臨同比壓力通過新技術改善我們的客戶體驗並提高客戶的生命週期價值。我們將這些影響納入了我們的年度指南，並且沒有改變這些假設。

Special items impacting adjusted EBITDA this quarter totaled $114 million. Our first quarter 2023 adjusted EBITDA margin, excluding special items, was 33.5%. Capital expenditures for the first quarter of 2023 were $640 million. In the first quarter of 2023, the company generated free cash flow of negative $75 million. As previously noted, this includes $90 million of taxes paid related to our 2 divestitures that closed last year. Our reported net debt was $18.876 billion.

本季度影響調整後 EBITDA 的特殊項目總計 1.14 億美元。我們 2023 年第一季度調整後的 EBITDA 利潤率（不包括特殊項目）為 33.5%。 2023 年第一季度的資本支出為 6.4 億美元。 2023 年第一季度，公司產生的自由現金流為負 7500 萬美元。如前所述，這包括與我們去年完成的 2 項資產剝離相關的 9000 萬美元稅款。我們報告的淨債務為 188.76 億美元。

Moving on to our 2023 financial outlook. As a result of the debt exchange offer I discussed earlier, we now expect cash income taxes to be in the range of $300 million to $400 million for the full year 2023. We anticipate offsetting this increase through our cost optimization efforts.

繼續我們的 2023 年財務展望。由於我之前討論過的債務交換要約，我們現在預計 2023 年全年的現金所得稅將在 3 億至 4 億美元之間。我們預計通過我們的成本優化工作來抵消這一增長。

In closing, our team remains focused on executing on our growth initiatives to drive long-term profitable revenue growth. We look forward to sharing more about our strategy and our path to growth with you at our Investor Day on June 5.

最後，我們的團隊仍然專注於執行我們的增長計劃，以推動長期盈利性收入增長。我們期待在 6 月 5 日的投資者日與您分享更多關於我們的戰略和增長之路的信息。

With that, we're ready for your questions.

這樣，我們就可以回答您的問題了。

(Operator Instructions) And our first question comes from the line of Simon Flannery with Morgan Stanley.

（操作員說明）我們的第一個問題來自西蒙弗蘭納里與摩根士丹利的合作。

Kate, I wonder if you could talk a little bit about your conversations with the customers and how that's changed over the last few months since you've taken over. And perhaps how they are thinking about optimizing their spend in light of the uncertain macro environment. It sounded like payment patterns on the consumer side were okay. But any color you could provide on what you're hearing from the CIOs?

凱特，我想知道你是否可以談談你與客戶的對話，以及自你接手以來過去幾個月的變化。也許他們正在考慮如何根據不確定的宏觀環境優化支出。聽起來消費者方面的支付模式還不錯。但是，對於您從 CIO 那裡聽到的內容，您可以提供任何顏色嗎？

And then maybe, Chris, just an update on the EMEA day. What's the latest timing? Is that still kind of right at the end of the year, at the start of next year? And any updates on any other potential transactions?

然後，克里斯，也許只是 EMEA 日的更新。最新的時間是什麼時候？在今年年底，明年年初，這仍然是正確的嗎？還有任何其他潛在交易的更新嗎？

Simon, thanks for the question. So with respect to what CIOs are saying, it is a complicated environment for sure, but that represents a huge opportunity, particularly when you're sort of sitting down side-by-side with customers to innovate to solve their greatest business challenges. So they want us to help them deliver cost-effective, reliable core operations. They want us to help them secure their data and applications. They want us to help them innovate.

西蒙，謝謝你的提問。因此，就 CIO 所說的而言，這肯定是一個複雜的環境，但這代表著巨大的機會，尤其是當您與客戶並肩坐下來進行創新以解決他們最大的業務挑戰時。因此，他們希望我們幫助他們提供具有成本效益、可靠的核心業務。他們希望我們幫助他們保護他們的數據和應用程序。他們希望我們幫助他們創新。

And the way to do that is to bring our capabilities in partnership with other great companies to chase after, I think, where the real business opportunities are. Obviously, there's a big story forming in AI and machine learning. There's an enormous set of opportunities in the metaverse where people are sort of doing this 3D rendering, and it consumes a huge amount of data and requires zero latency. All of the companies that we're talking with are thinking like that. And it's these ecosystem partnerships that combine our capabilities with the depth and breadth of other software companies that I think is really resonating.

我認為，做到這一點的方法是將我們的能力與其他偉大的公司合作，以追逐真正的商機所在。顯然，人工智能和機器學習正在形成一個大故事。元宇宙中存在大量機會，人們可以在其中進行這種 3D 渲染，它會消耗大量數據並且需要零延遲。我們正在與之交談的所有公司都這樣想。正是這些生態系統合作夥伴關係將我們的能力與我認為真正引起共鳴的其他軟件公司的深度和廣度相結合。

Most importantly, we're showing up and we're asking them to co-create as partner and that's new. And it's received with a giant smile ear-to-ear. So Chris, do you want to dig in?

最重要的是，我們出現了，我們要求他們作為合作夥伴共同創造，這是新的。它收到了一個巨大的微笑耳對耳。克里斯，你想深入了解一下嗎？

Yes. So on the EMEA transaction, Simon, everything is on schedule. As anticipated, no speed bumps. And we still expect that to close late this year or early next year. And just as a reminder, we'll use the proceeds from that transaction to reduce debt.

是的。所以關於 EMEA 交易，西蒙，一切都按計劃進行。正如預期的那樣，沒有減速帶。我們仍然預計它會在今年年底或明年初關閉。提醒一下，我們將使用該交易的收益來減少債務。

And anything else that you're looking at, real estate sales or anything else that might be...

以及您正在查看的任何其他內容，房地產銷售或任何其他可能...

Yes, we continue to prune the portfolio. We're prudent. We've embraced the hybrid work environment and have announced that we're selling our Broomfield campus. It's underutilized even if everybody showed up that was assigned to this facility. So like a lot of other companies, we're going to monetize that. There's other real estate that we'll be closing on later this year as well that has been in the work for a few years.

是的，我們繼續削減投資組合。我們很謹慎。我們已經接受了混合工作環境，並宣布我們正在出售我們的布魯姆菲爾德校區。即使分配給該設施的每個人都出現了，它也沒有得到充分利用。因此，與許多其他公司一樣，我們將通過它獲利。我們也將在今年晚些時候關閉其他房地產，這些房地產已經投入使用了幾年。

As it relates to other business lines, we continue to look at options as to whether we harvest or we sell. But don't expect big moves from those kinds of things. That's more of a pruning exercise than any kind of a major restructuring of any kind.

由於它涉及到其他業務線，我們將繼續考慮是否收穫或出售的選擇。但不要指望這些事情會出現大動作。與任何類型的重大重組相比，這更像是一種修剪工作。

Great. And just one follow-up, Kate, on your comments. In the past, management's talked about delayed decision-making. Have you noted any changes in the kind of time it takes from customers to actually get a contract signed?

偉大的。凱特，就你的評論進行一次跟進。過去，管理層談到延遲決策。您是否注意到客戶實際簽署合同所需的時間有任何變化？

There hasn't been a material change. And I think what we're really thinking about is how do we show the value, how do we position our capabilities such that it cuts through any additional approval processes that the global macroeconomic environment might have been pushing on over the past 18 months to 2 years.

沒有發生實質性的變化。而且我認為我們真正在考慮的是我們如何展示價值，我們如何定位我們的能力，從而減少全球宏觀經濟環境在過去 18 個月中可能推動的任何額外審批流程到 2年。

Our next question comes from the line of Michael Rollins with Citi.

我們的下一個問題來自花旗銀行的 Michael Rollins。

Two topics, if I could. First, on the sales front. Just curious, with all the locations that you passed and that your fiber is near, is there a quantification of the low-hanging fruit of customer opportunities in terms of size or revenue opportunity?

兩個主題，如果可以的話。首先，在銷售方面。只是好奇，對於您經過的所有位置以及您的光纖就在附近，是否有根據規模或收入機會量化客戶機會的唾手可得的果實？

And then secondly, as you look at the EBITDA performance for the quarter versus the year, can you frame the potential cost or the revenue dilution over the next few quarters that -- is there 1 or 2 quarters in particular that takes the annualized number for 1Q and puts you back into the range for the full year guidance?

其次，當您查看本季度與年度的 EBITDA 業績時，您能否構建未來幾個季度的潛在成本或收入攤薄——是否有 1 或 2 個季度特別採用年化數字1Q，讓你回到全年指導的範圍內？

Michael, I'll take the first one on sales, and I'll let Chris hit the second one. From a sales productivity perspective, putting the right field force in the right locations is obviously incredibly important. What we're doing is over time, we're sort of thinking through what business outcomes do customers want to chase aligned to their particular industry or vertical. And that's really, I think, where the story is. It's like, okay, how can we stitch together our unique capabilities across networking, edge cloud and security to show up in solutions that matter most to customers depending on not just where they're located, but that obviously is deeply connected to our edge capabilities? But that covers 98% of businesses. So I think we've got ubiquity there. It's really about the outcomes aligned to their business models. Chris?

邁克爾，我會拿第一個銷售，我會讓克里斯打第二個。從銷售效率的角度來看，將合適的現場人員放在合適的位置顯然非常重要。我們正在做的是隨著時間的推移，我們正在考慮客戶希望根據他們的特定行業或垂直行業追求什麼樣的業務成果。我認為，這就是故事所在。就像，好吧，我們如何將我們在網絡、邊緣雲和安全方面的獨特能力結合在一起，以出現在對客戶最重要的解決方案中，這不僅取決於他們所在的位置，而且顯然與我們的邊緣能力密切相關？但這涵蓋了 98% 的企業。所以我認為我們在那裡無處不在。這實際上是關於與他們的商業模式保持一致的結果。克里斯？

Yes. And on the -- just the OpEx trend through the year, I mean, obviously, as we entered the year and we gave the guidance and we talked about the investments that we were going to be making to position Lumen for success, we weren't at run rate when we came into the year. So that will be building as we go through the year. And that's why that spend level was a little lower in Q1.

是的。關於 - 只是全年的運營支出趨勢，我的意思是，很明顯，當我們進入這一年並提供指導並討論我們將要進行的投資以使 Lumen 取得成功時，我們不是'我們進入這一年時的運行率。所以這將在我們度過這一年的過程中建立起來。這就是為什麼第一季度的支出水平略低的原因。

Our next question comes from the line of Philip Cusick with JPMorgan.

我們的下一個問題來自摩根大通的 Philip Cusick。

A couple, if I can. I appreciate the detail, Chris, on the Grow, Nurture, Harvest buckets and the commentary on Page 7, and I will go back and read it a few times so I understand it. In the meantime, what can you add on recent trends in sales and funnel and things like that? And when do you expect we'll see these improvements to come through in the net revenue trends?

一對，如果可以的話。克里斯，我很欣賞關於成長、培育、收穫桶的細節以及第 7 頁的評論，我會回去多讀幾遍以便理解。與此同時，關於最近的銷售趨勢和漏斗之類的事情，你能補充些什麼？您預計我們什麼時候會在淨收入趨勢中看到這些改進？

And then second, if you could just talk about any further debt swaps from here, or are you sort of done with that, that would be helpful.

其次，如果你能從這裡談談任何進一步的債務互換，或者你已經完成了，那將是有幫助的。

Yes. I mean, as I mentioned in my prepared remarks, we're pleased with what we're seeing in the Grow category. There's obviously a lot of work around how we migrate customers from legacy technologies to newer technologies. But I do think, Phil, that things will ebb and flow. As it relates to additional metrics behind it, we're not prepared to really talk about that yet today. We will, at our Investor Day, talk about operational metrics that we can provide on an ongoing basis to give you guys better visibility to where we are on this journey. But again, so far so good.

是的。我的意思是，正如我在準備好的發言中提到的，我們對我們在增長類別中看到的內容感到滿意。顯然，圍繞我們如何將客戶從遺留技術遷移到新技術，還有很多工作要做。但我確實認為，菲爾，事情會潮起潮落。由於它涉及到它背後的其他指標，我們今天還不准備真正談論它。在我們的投資者日，我們將討論我們可以持續提供的運營指標，讓你們更好地了解我們在這一旅程中所處的位置。但同樣，到目前為止一切順利。

As it relates to the capital structure side of things, there's a lot of options. And we continue to evaluate those. It obviously is a dynamic environment externally. And so we're certainly not finished. But there's nothing that's firm right now. And obviously, as we firm those things up, we'll keep everybody apprised.

由於它涉及事物的資本結構方面，因此有很多選擇。我們將繼續評估這些。它顯然是外部的動態環境。所以我們當然還沒有完成。但現在沒有什麼是堅定的。很明顯，當我們確定這些事情時，我們會讓每個人都知道。

Maybe if I can ask the first one a little bit in a different way. The Grow bucket, 3.4% growth in the first quarter, quarter-to-quarter in the Grow bucket. How much of that do you think is attributable to new efforts or new products that are being pushed? Is this sort of a revitalized sales effort? I don't know if this is sort of a seasonal impact that's typical anyway.

也許我可以用不同的方式問第一個。 Grow 桶，第一季度增長 3.4%，在 Grow 桶中環比增長。您認為其中有多少可歸因於正在推動的新努力或新產品？這是一種振興的銷售努力嗎？我不知道這是否屬於典型的季節性影響。

Okay. So I'll take that one. Basically, as I said in my opening remarks, we have a ton of work to do to galvanize our enterprise selling machine. That's everything from sales readiness program, digital marketing campaigns, making sure that we're driving analytics and sort of like what's the next best thing to do on our sales platform. And it's upskilling our talent across the field organization.

好的。所以我會拿那個。基本上，正如我在開場白中所說的那樣，我們有大量的工作要做來激發我們的企業銷售機器。這包括銷售準備計劃、數字營銷活動、確保我們正在推動分析以及有點像在我們的銷售平台上下一步要做的最好的事情。它正在提高我們整個現場組織的人才技能。

If you think about that, we've already started doing that, and we're seeing improvements in -- I talked about some mid-market green shoots. I talked about some enterprise, large enterprise green shoots where we're seeing more funnel, we're seeing bigger deal sizes, et cetera. But we're not where we need to be. And if I anchored ourselves on the goal, it would be executing at or better than market in every one of the product categories.

如果你考慮一下，我們已經開始這樣做了，而且我們看到了改進——我談到了一些中端市場的萌芽。我談到了一些企業，大型企業的萌芽，我們看到了更多的漏斗，我們看到了更大的交易規模，等等。但我們不在我們需要去的地方。如果我把自己定在目標上，那麼它在每個產品類別中的執行都將達到或優於市場。

Our next question comes from the line of David Barden with Bank of America.

我們的下一個問題來自美國銀行的 David Barden。

I guess, first, Kate, as you kind of start tackling this opportunity to pursue solutions and be a partner for your customers, the ways that you accomplish that, presuming that there weren't just things on the shelf you weren't already selling, you've got to add arrows to the quiver. And 1 way is to develop applications internally. Another way is to buy companies with those capabilities or hire people with those capabilities. Another way is to wholesale those opportunities.

我想，首先，凱特，當你開始抓住這個機會尋求解決方案並成為客戶的合作夥伴時，你實現這一目標的方式，假設不僅僅是貨架上的東西你還沒有賣，您必須在箭袋中添加箭頭。一種方法是在內部開發應用程序。另一種方法是購買具有這些能力的公司或僱用具有這些能力的人。另一種方法是批發這些機會。

But all of those come with higher expense and complications and their own complexity. So I was wondering if you could kind of elaborate a little bit about how you go from the company that this was a year ago or even 6 months ago to the company that you want it to be? And how does it look? And how does that incremental revenue dollar from solving people's problems come in at some healthy incremental margin?

但所有這些都伴隨著更高的費用和復雜性以及它們自身的複雜性。所以我想知道你是否可以詳細說明一下你是如何從一年前甚至 6 個月前的公司變成你想要的公司的？它看起來如何？解決人們的問題所帶來的增量收入是如何以健康的增量利潤率產生的？

And then along those lines, if I could, Chris, just on this margin -- direct margin breakdown that you've shared. In the Harvest bucket, it seems that if what you're losing predominantly is the voice dollar, that seems like would be going away at 100% margin. But if you -- I think you were saying 58% of the new sales are coming in the Growth bucket. The Growth bucket is, to my -- the question I'm asking, Kate, it's coming with a lot more baggage and stuff that goes along with it, which seems to be a lot lower margin at the increment. So for every $1 Harvest you lose, how many Growth dollars do we need to kind of fill that EBITDA bucket?

然後沿著這些思路，如果可以的話，克里斯，就在這個利潤率上——你分享的直接利潤率細分。在 Harvest 桶中，如果你主要損失的是語音收入，那麼它似乎會以 100% 的利潤率消失。但如果你——我想你是說 58% 的新銷售額來自增長桶。增長桶是，對我來說——我要問的問題，凱特，它帶來了更多的行李和隨之而來的東西，這似乎在增量方面要低得多。因此，對於每失去 1 美元的收穫，我們需要多少增長美元來填補 EBITDA 桶？

Okay. Let me start with your question, and I'm going to -- there was a lot to it, David, so I'd like to just sort of give you my simple answer, which is we have a 3-pronged strategy. Number one, we're going to stem organic decline. That's like VPN, SASE and voice migration efforts. And I can talk a little bit more about what that looks like under the hood in just a second.

好的。讓我從你的問題開始，我打算 - 有很多問題，大衛，所以我想給你一個簡單的答案，那就是我們有一個三管齊下的戰略。第一，我們要阻止有機衰退。這就像 VPN、SASE 和語音遷移工作。我可以在一秒鐘內多談談引擎蓋下的樣子。

Number two, we're going to better execute against the core, and that's where we're going to hit or exceed market growth rates and things like IP waves and Ethernet, et cetera, in the Grow bucket. And then we're going to innovate for growth. And that's both commercializing the things that are on the truck today, which we are undercommercialized, period. We just don't flex our muscles in a way that we can and should, and you'll see us doing that more and more. We're also going to collaborate with partners and customers to create net new capabilities, obviously leveraging our proprietary gifts in security in the edge and the network.

第二，我們將更好地針對核心執行，這就是我們將在增長桶中達到或超過市場增長率以及 IP 浪潮和以太網等事物的地方。然後我們將創新以實現增長。這就是將今天卡車上的東西商業化，而我們商業化程度較低。我們只是沒有以我們可以而且應該的方式展示我們的肌肉，你會看到我們越來越多地這樣做。我們還將與合作夥伴和客戶合作創建全新的功能，顯然是利用我們在邊緣和網絡安全方面的專有天賦。

And then there's the third thing that is basically the main lever for creating operating leverage, which is network-as-a-service, or NaaS, which is where we digitize everything, okay? So 3 legs of the stool, stem organic decline, better execute on the core and innovate for growth. When you talk about sitting with customers and reshaping the company to actually follow the dollars, which tend to stem out of complex business problems that our customers are trying to solve, they need the capabilities that we have, and their need to consume data is just going to increase.

然後是第三件事，它基本上是創造運營槓桿的主要槓桿，即網絡即服務或 NaaS，這是我們將一切數字化的地方，好嗎？所以凳子的 3 條腿，阻止有機衰退，更好地執行核心並創新增長。當您談論與客戶坐在一起並重塑公司以實際跟隨美元時，這往往源於我們客戶試圖解決的複雜業務問題，他們需要我們擁有的能力，而他們使用數據的需求只是會增加。

The more we can digitize our physical assets and bring those capabilities to bear in all of the existing and net new business problems, the more you'll see Lumen being recognized as not just customer-obsessed but a very innovative company. How we afford that? All the things I said, we're simplifying. We're driving a digital enterprise. We're getting rid of the stuff that doesn't make sense. We're optimizing not just for efficiency, we're optimizing for growth, right? So let's talk about your question to Chris, and then Chris, I'll ask you to add comments.

我們越能將我們的有形資產數字化，並將這些能力用於解決所有現有的和全新的業務問題，您就會越多地看到 Lumen 不僅被視為以客戶為中心，而且是一家非常具有創新精神的公司。我們怎麼負擔得起？我說的所有事情，我們都在簡化。我們正在推動數字化企業。我們正在擺脫那些沒有意義的東西。我們不僅在優化效率，還在優化增長，對嗎？那麼讓我們和克里斯談談你的問題，然後克里斯，我會請你添加評論。

If we're cannibalizing ourselves, which I think is what you're asking about. In the Harvest bucket, we've got cash coming off of those products. Why would you actually go after those customers? And I come from tech, right? So I'm new to telecom, so this is sort of mind-blowing for me to think about this notion of not touching anything. Because the whole idea of customer life cycle management is how you increase the value of a customer relationship over the lifetime of that customer. And so if we do nothing, those customers will churn. So we go from 100 pennies to 0.

如果我們正在自相殘殺，我認為這就是您要問的問題。在 Harvest 桶中，我們從這些產品中獲得了現金。你為什麼要真正去追求那些客戶？我來自科技，對吧？所以我是電信的新手，所以想到不接觸任何東西的想法讓我有點興奮。因為客戶生命週期管理的整體理念是如何在客戶的生命週期內增加客戶關係的價值。因此，如果我們什麼都不做，這些客戶就會流失。所以我們從 100 便士變成 0。

We could go after them and do a one-for-one product swap. And yes, some of the newer technologies might result in less margin, but that's not how we're thinking about it. We go after them to get them to net new technologies to modernize their businesses. And we think about it from the perspective of maintaining the customer relationship and maintaining the customer data, understanding how they behave and upselling them in our IP and third-party IP. And net-net, I think what we're finding, and it's extremely early in this process so we don't have all of the tricks yet, but what we're finding is that there's an opportunity up here to increase all of those revenue and EBITDA flows. Chris, do you have anything to add?

我們可以追求他們並進行一對一的產品交換。是的，一些較新的技術可能會導致利潤率降低，但這不是我們考慮的方式。我們追求他們，讓他們獲得新技術，使他們的業務現代化。我們從維護客戶關係和維護客戶數據的角度來考慮，了解他們的行為方式，並在我們的 IP 和第三方 IP 中進行追加銷售。 net-net，我認為我們正在發現什麼，而且在這個過程中還處於非常早的階段，所以我們還沒有所有的技巧，但我們發現的是這裡有機會增加所有這些收入和 EBITDA 流量。克里斯，你有什麼要補充的嗎？

No. I think Kate explained that as well as it could be explained, David. I think the key thing is, and I've been asked this question a lot, obviously, at conferences, it's not an either/or scenario. It's not this either/or scenario of you either get to keep the legacy voice customer and milk it for as long as you can, and then the alternative is just a low-margin replacement. It really is this bundle. And oh, by the way, then there's a tomorrow with the customer and the day after that and the day after that. And it's a very different way of thinking about the space than what I think people are normally accustomed to out of telecom. So that's what we're trying to do here.

不，我認為凱特已經解釋過了，大衛，這也是可以解釋的。我認為關鍵是，我在會議上經常被問到這個問題，這不是非此即彼的情況。這不是你要么保留傳統語音客戶並儘可能長時間地榨取它的這種非此即彼的情況，然後替代方案只是低利潤的替代品。真的是這個包。哦，順便說一句，然後是與客戶的明天，後天和後天。這是一種非常不同的思考空間的方式，與我認為人們通常習慣於電信之外的方式截然不同。這就是我們在這裡要做的。

The next question comes from the line of Batya Levi with UBS.

下一個問題來自瑞銀集團的 Batya Levi。

Just a follow-up on that point. Actually, can you talk a little bit more about why the Growth bucket direct margins are above Harvest where you're running it for cash? And what's driving that upside?

只是關於這一點的後續行動。實際上，你能多談談為什麼增長桶的直接利潤率高於你為現金運行它的收穫嗎？是什麼推動了這種上漲？

And also maybe a little bit more specific for the quarter, but what drove the pickup in the Growth bucket in the quarter? Are there any sort of shift from the Nurture bucket that we should think about as clients take hybrid products? And if you could elaborate a bit on the pricing in the segment, and any change in who you compete with as you change the approach in this category?

也可能對本季度更具體一些，但是是什麼推動了本季度增長桶的回升？當客戶採用混合產品時，我們應該考慮從 Nurture 桶中進行任何類型的轉變嗎？如果你能詳細說明一下這個細分市場的定價，以及你改變這個類別的方法時你與誰競爭的任何變化？

Yes. I would say -- thanks, Batya. I would say that -- I mean, let's start with something we talked about last quarter, which is we've changed our incentive structure with the sales team so that they are incented to drive more growth product and become less dependent on legacy revenues that we know will churn, as Kate just said. So that's something that's going to continue, I think, to put the focus where the focus needs to be.

是的。我會說——謝謝，Batya。我想說的是——我的意思是，讓我們從上個季度談到的事情開始，那就是我們已經改變了與銷售團隊的激勵結構，這樣他們就有動力推動更多的增長產品，並減少對遺留收入的依賴正如凱特剛才所說，我們知道會流失。所以我認為，這將繼續下去，將重點放在需要重點的地方。

When you look at the margins, yes, legacy voice, obviously very high margin. Also, there's a lot of cost in that, right? You've got some heavy NetEx around maintenance and whatnot. And when you think about newer technologies like IP and waves, once you put the capital on the ground, those are extremely, extremely efficient to run. And then on top of that, obviously, as we sell security services, namely, as Kate mentioned in her prepared remarks, with some of the Lumen IP sprinkled on top, that allows us to drive margin as well. So high level, that's the response. But specifically, as it relates to products in the quarter, we said IP and colocation were the biggies.

當您查看利潤率時，是的，傳統語音，顯然利潤率非常高。另外，這裡面有很多成本，對吧？您在維護和其他方面有一些繁重的 NetEx。當你想到像 IP 和 wave 這樣的新技術時，一旦你投入資金，它們的運行效率就會非常非常高。然後最重要的是，顯然，當我們銷售安全服務時，正如凱特在她準備好的發言中提到的那樣，一些 Lumen IP 灑在上面，這也讓我們能夠提高利潤率。如此高的水平，這就是回應。但具體來說，因為它與本季度的產品有關，我們說 IP 和託管是最重要的。

The next question comes from the line of Nick Del Deo with MoffettNathanson.

下一個問題來自 Nick Del Deo 和 MoffettNathanson 的對話。

Kate, you noted some really encouraging new logo in revenue per customer data in Q1 versus Q4. I assume you're looking at sequential trends to kind of strip out the noise from the divestitures. But I'd still be interested if you're able to explain those metrics in sort of a broader historical context. Or even if you can't quantify it, can you say if those sorts of changes in logos and revenues per customer are kind of well outside of the bands of what was historically typical?

凱特，你注意到第一季度與第四季度的每位客戶收入數據中有一些非常令人鼓舞的新標識。我假設您正在研究連續趨勢，以消除資產剝離帶來的噪音。但如果您能夠在更廣泛的歷史背景下解釋這些指標，我仍然會感興趣。或者，即使您無法對其進行量化，您能否說徽標和每位客戶收入的這些變化是否有點超出歷史典型範圍？

I mean, I want to go back to our philosophy of customer lifetime value, and the choice between not chasing the customer and allowing for churn versus moving to a modern platform where you can upsell them on your first-party technology and security and the like versus third-party. I think going after the organic decline strategically is going to pay off in a material way. And it's so early right now, Nick, that it's really hard to characterize.

我的意思是，我想回到我們的客戶生命週期價值理念，以及在不追逐客戶和允許客戶流失與轉向現代平台之間的選擇，在現代平台上您可以通過第一方技術和安全性等向他們追加銷售與第三方。我認為從戰略上追逐有機衰退將以物質方式獲得回報。尼克，現在還太早，很難描述。

And also, I'm going to be very honest and tell you that the data that we have about our sales efforts and our customers, we've put all new analytics in place, and we have transparency all the way down to the rep level that we never had before. So it's extremely hard for me to give you the sort of comparison that you're looking for. I think it's sort of a new set of efforts, and we're excited by the early results.

而且，我將非常誠實地告訴你，我們擁有的關於我們的銷售工作和客戶的數據，我們已經將所有新的分析都放在適當的位置，並且我們一直透明到代表級別我們以前從未有過。因此，我很難為您提供您正在尋找的那種比較。我認為這是一系列新的努力，我們對早期結果感到興奮。

Okay, okay. Understandable. And I guess, you're obviously doing a lot of prep work for some of the systems changes you've talked about. I guess, any early developments or learnings there, whether encouraging or challenging that you think are worth calling out as we think about the work you have to undertake over the next couple of years?

好吧好吧。可以理解。我想，您顯然正在為您談到的一些系統更改做大量準備工作。我想，在我們考慮您在未來幾年必須承擔的工作時，您認為值得一提的任何早期發展或學習，無論是令人鼓舞的還是具有挑戰性的？

I think when you think about a telecom company that is a collection of companies, you need to assume that we have an antiquated IT backbone that's extremely complex, and there's a lot of work to do in order to simplify it. So this is unfortunately not something that we can just snap our fingers and correct quickly or easily or cheaply. It takes investment.

我認為，當您考慮一家由多家公司組成的電信公司時，您需要假設我們有一個非常複雜的過時 IT 骨幹網，而且要簡化它還有很多工作要做。所以不幸的是，這不是我們可以彈指一揮間就能快速、輕鬆或便宜地糾正的事情。這需要投資。

But something that I think is new is our ability to fund our future. And funding our future includes making these systemic changes to enable better coverage of the market, better customer experience, a streamlined operations capability. And so lots more there, I'm sorry, I think we can share more on the fifth, on June 5, but a huge amount of work to do and an enormous opportunity for this company.

但我認為新的東西是我們為未來提供資金的能力。為我們的未來提供資金包括進行這些系統性變革，以實現更好的市場覆蓋、更好的客戶體驗和簡化的運營能力。還有很多，對不起，我想我們可以在 6 月 5 日的第五天分享更多，但是有大量的工作要做，這對這家公司來說是一個巨大的機會。

Okay, okay. Just one last one, if I can. Chris, are you able to share the level of growth and optimization spend in the quarter?

好吧好吧。如果可以的話，就最後一張。克里斯，您能否分享本季度的增長和優化支出水平？

No, we're not disclosing that. But again, if you took our annual guidance and divided it by 4, we were less than that in the quarter, as I said, because we're obviously ramping those efforts. So you'll see a little more spend later in the year than you did at the beginning of the year.

不，我們不會透露這一點。但同樣，如果你把我們的年度指導除以 4，正如我所說，我們在本季度的指導要少，因為我們顯然正在加大這些努力。因此，今年晚些時候你會看到比年初多一點的支出。

Our next question comes from the line of Greg Williams with TD Cowen.

我們的下一個問題來自 Greg Williams 與 TD Cowen 的對話。

A few questions on Quantum Fiber. You noted that the factory is back, so to speak. So can you help us with the fiber subscriber build cadence from here? Typically, the second quarter is a little weaker in broadband, but with this engine up and running, could we expect sequential growth in fiber sub-adds?

關於量子光纖的幾個問題。你注意到工廠回來了，可以這麼說。那麼，您能幫助我們從這裡開始構建光纖用戶節奏嗎？通常情況下，第二季度的寬帶業務會稍弱一些，但隨著這個引擎的啟動和運行，我們是否可以預期光纖子添加量會出現連續增長？

And then the second is just on the increased cost of home passed. I know you've just ticked it up to $1,200 a home passed. But as I think about labor, it could be in short supply, right, when you're trying to accelerate later this year in 2024 as BEAD money chases the same labor pool. Just curious to hear your thoughts and expectations on comfort levels there.

然後第二個是關於增加的家庭成本。我知道你剛剛把它上調到每戶 1,200 美元。但當我想到勞動力時，它可能供不應求，對吧，當你試圖在今年晚些時候在 2024 年加速時，因為 BEAD 資金追逐同一個勞動力池。只是想听聽您對那裡的舒適度的想法和期望。

I'll hit the first one. I'll give you the second one, Chris. So if you think about the factory, we've got the enablement piece up and running, and we're really excited about sort of the breakthroughs that we've made. We aligned the team. We streamlined operations. We've got advisory services in helping us to do better engineering assessments for how to tackle all the enablements.

我會打第一個。我會給你第二個，克里斯。因此，如果您考慮工廠，我們已經啟動並運行了支持部分，我們對我們取得的一些突破感到非常興奮。我們調整了團隊。我們簡化了操作。我們提供了諮詢服務，可幫助我們針對如何解決所有支持問題進行更好的工程評估。

And what's the first thing that you need in order to get a subscriber? You need an enablement. And what do you need in between those 2 outcomes? You need a marketing engine. So now that we've got the enablement, really, really high-quality ones up and running, you're going to see us putting gas in the marketing campaigns, digital marketing campaigns to really, I think, turn the needle on subscriber growth.

為了獲得訂閱者，您需要做的第一件事是什麼？你需要一個支持。在這兩個結果之間你需要什麼？你需要一個營銷引擎。因此，既然我們已經啟動並運行了真正非常高質量的支持，您將看到我們在營銷活動、數字營銷活動中投入大量精力，我認為，真正推動用戶增長.

Yes. And on the cost side, I mean, the good news is, is that we feel good about the guidance that we gave at the beginning of the year. And we also -- and I think this is more important, we talked about the fact that we feel that there's ARPU upside here, and that's something that we'll be looking at going forward. That's the long way of saying that if we do experience movement in the cost, that's a far less impactful metric in terms of the long-term return than the ARPU.

是的。在成本方面，我的意思是，好消息是，我們對年初給出的指導感到滿意。我們也——我認為這更重要，我們談到了一個事實，即我們認為這裡有 ARPU 的上升空間，這是我們未來會關注的事情。這就是說，如果我們確實經歷了成本變動，那麼就長期回報而言，這是一個比 ARPU 影響小得多的指標。

So we continue to watch it. We're not seeing any pressure there today, I want to be very clear about that. The team continues to look for efficiencies, and in some cases, has been able to find efficiency and do the build at a more cost-effective rate than what was initially designed. So we'll continue to press that. But again, I'm less concerned about that number as it relates to the overall return. It really is about penetration and ARPU, and we feel good about both of those.

所以我們繼續關注它。今天我們在那裡沒有看到任何壓力，我想非常清楚這一點。該團隊繼續尋求效率，並且在某些情況下，已經能夠找到效率並以比最初設計的更具成本效益的速度進行構建。因此，我們將繼續推動這一點。但同樣，我不太關心這個數字，因為它與整體回報有關。這真的是關於滲透率和 ARPU，我們對這兩者都感覺良好。

Our next question comes from the line of Frank Louthan with Raymond James.

我們的下一個問題來自 Frank Louthan 和 Raymond James 的台詞。

One of your peers is looking to pursue exiting some copper locations as they're sort of way under their collar obligations. Are there any opportunities there for you as you look forward?

您的一位同行正在尋求退出一些銅位置，因為它們在某種程度上履行了他們的義務。在你期待的時候，那裡有什麼機會嗎？

And then secondly, when you run fiber into an area, how long is it before you can retire the copper there and not have to support 2 networks?

其次，當您將光纖接入一個區域時，您需要多長時間才能在那里淘汰銅線而不必支持 2 個網絡？

Yes, I'll take that, Frank. So on kind of opportunities for additional copper consolidation, I'd say just simply that's not our focus, right? We've got to pivot to the new. It's where the future is for us, and that's what we're 100% focused on.

是的，我會接受的，弗蘭克。因此，關於額外的銅整合機會，我只想說這不是我們的重點，對吧？我們必須轉向新的。這就是我們的未來所在，也是我們 100% 關注的方向。

As it relates to the copper, I don't have an exact answer for you. But what I can tell you is it -- in a way, our job on that front is easy because we're starting from such a lousy place in terms of copper penetration, right? It's at 12% when we go into a market and we can really blast it with fiber, there's really not any major issues in terms of turning copper down. So the team's all over that, and they make those decisions on a market-to-market basis.

由於它與銅有關，我沒有確切的答案給你。但我可以告訴你的是 - 在某種程度上，我們在這方面的工作很容易，因為我們從銅滲透方面的如此糟糕的地方開始，對吧？當我們進入市場時它是 12%，我們真的可以用光纖對其進行爆炸，在降低銅線方面確實沒有任何重大問題。因此，團隊全力以赴，他們根據市場對市場的情況做出這些決定。

Our next question is from the line of Eric Luebchow with Wells Fargo.

我們的下一個問題來自富國銀行的 Eric Luebchow。

In your earlier remarks, you talked about retiring more than 60% of your enterprise SKUs, primarily from legacy products. So wondering, does that had any impact on revenue contribution? And maybe you can provide some early color on what those SKUs were, what type of success you've seen thus far migrating those customers up the stack?

在您之前的發言中，您談到要淘汰超過 60% 的企業 SKU，主要來自遺留產品。所以想知道，這對收入貢獻有什麼影響嗎？也許您可以提供一些關於這些 SKU 的早期顏色，到目前為止，您看到哪些類型的成功將這些客戶遷移到堆棧中？

And then secondly, one for Chris. Given your desire to invest more in Quantum Fiber, any way to break down enterprise CapEx? And if we see any more market dislocation, how much of that is success-based CapEx that you could potentially adjust to help keep leverage in line?

其次，克里斯的一個。鑑於您希望對 Quantum Fiber 進行更多投資，有什麼方法可以分解企業資本支出？如果我們看到更多的市場錯位，其中有多少是基於成功的資本支出，您可以調整以幫助保持槓桿率？

Yes. Regarding the portfolio simplification, the reduction of 60% of the SKUs was nonrevenue impacting. What it did was basically clean up the database of product capabilities that we offer today and seek revenue on, which enables a simplification from ordering all the way down through billing. So it was the first step. Now we've got to take the next couple of steps, which is, A, further simplification. And then B, as we look to upgrade our ERP and do all the complicated work of reducing our application portfolio, we'll probably have some harder decisions to make. But that's the next tranche of work.

是的。關於產品組合簡化，減少 60% 的 SKU 不會對收入產生影響。它所做的基本上是清理我們今天提供的產品功能數據庫並尋求收入，這使得從訂購到計費的整個過程都得到了簡化。所以這是第一步。現在我們必須採取接下來的幾個步驟，即 A，進一步簡化。然後 B，當我們希望升級我們的 ERP 並完成所有減少應用程序組合的複雜工作時，我們可能會做出一些更艱難的決定。但這是下一部分工作。

Yes. And as it relates to the CapEx, again, there's a lot of math that we've shared on this. But I would say simply and directionally, high level, we've said that of our roughly $3 billion in CapEx guidance for the year, it was split roughly 2/3 Enterprise business, I should say, 1/3 Mass Markets, with about $250 million in each of those for maintenance. And so Quantum had about $600 million, and then there's the CapEx that goes into in-home enablements and turnups. So that's the $1 million for consumer.

是的。由於它與資本支出相關，我們再次分享了很多數學知識。但我會簡單而有方向地說，高水平，我們已經說過，在我們今年大約 30 億美元的資本支出指導中，它被分成大約 2/3 的企業業務，我應該說，1/3 的大眾市場，大約每個維護費用為 2.5 億美元。所以 Quantum 有大約 6 億美元，然後是用於家庭支持和開通的資本支出。這就是消費者的 100 萬美元。

On the Enterprise side, after maintenance, you got $1.75 billion left. And we've said that the Enterprise business is really going to be the beneficiary of a lot of the optimization investments we're doing on the CapEx side, which left about $1.25 billion for success-based. Entering the year on success-based, we probably have visibility to where about 30% of that's going because of contracts that were sold last year that will be turned up this year. The rest of it is based off of what we sell this year.

在企業方面，維護後，您還剩下 17.5 億美元。我們已經說過，企業業務確實將成為我們在資本支出方面進行的許多優化投資的受益者，這為基於成功的投資留下了大約 12.5 億美元。以成功為基礎進入這一年，我們可能可以看到其中約 30% 的去向，因為去年出售的合同將在今年出現。其餘部分基於我們今年的銷售情況。

So there's enormous flexibility as we go through the year. If enterprise goes through a period of significant softness, we'll spend less. There's a natural governor and correlation between those 2 numbers. But as we go through this year, we're confident that we can stay within our guidance, given what the Mass Markets team is seeing. And as we look to future years, we'll talk more about that on June 5.

因此，我們在這一年中有很大的靈活性。如果企業經歷一段顯著疲軟的時期，我們就會減少支出。這兩個數字之間存在自然調速器和相關性。但隨著今年的過去，鑑於大眾市場團隊所看到的情況，我們有信心能夠保持在我們的指導範圍內。展望未來，我們將在 6 月 5 日討論更多。

Darcey, we have time for just 1 last question.

Darcey，我們只有最後一個問題的時間。

Our last question comes from the line of Jonathan Chaplin with New Street Research.

我們的最後一個問題來自 Jonathan Chaplin 與 New Street Research 的合作。

Two quick easy ones, if I may. First, I'm wondering if you have a sense of what the BEAD opportunity is within your footprint. How many locations might be BEAD-eligible amongst the portion that you don't upgrade to fiber?

兩個快速簡單的，如果可以的話。首先，我想知道您是否了解您的足跡中的 BEAD 機會。在您未升級到光纖的部分中，有多少位置可能符合 BEAD 條件？

And then a bit of a technical question for Chris. On the proceeds from the EMEA transaction, I understand that those are going to pay down debt. Do they -- can you tell us which silo specifically they go towards? Do the proceeds stay within the Level 3 silo paying down debt there? Or can they go anywhere across the capital structure?

然後是克里斯的一些技術問題。關於 EMEA 交易的收益，我知道這些將用於償還債務。他們 - 你能告訴我們他們具體去哪個筒倉嗎？收益是否留在用於償還債務的 3 級筒倉內？或者他們可以跨越資本結構的任何地方嗎？

Sure. I'll take the first one, I'll let Chris do the second one. With respect to BEAD, so all of our numbers that we've shared with you, the 8 million to 10 million that we've talked about a couple of different times, that's without BEAD funding at all. So anything from BEAD would be a net positive add to the story. And it's early days yet. We're not exactly sure how it's flowing down so we can't give you that kind of transparency or precision yet. But we look at it as a potential upside for sure.

當然。我會拿第一個，我會讓克里斯做第二個。關於 BEAD，我們與您分享的所有數字，我們多次談到的 800 萬到 1000 萬，根本沒有 BEAD 資助。因此，來自 BEAD 的任何內容都會對故事產生積極的影響。現在還為時尚早。我們不確定它是如何流下來的，所以我們還不能給你那種透明度或精確度。但我們肯定將其視為潛在的上行空間。

Yes. And on the EMEA proceeds, we'll get more specific about where those proceeds go as time goes on, but we do have a certain amount of flexibility. The biggest thing is, obviously, we've got to be thoughtful about where we are on covenants. And that's part of what goes into our decision-making on all that.

是的。在 EMEA 收益方面，隨著時間的推移，我們將更具體地了解這些收益的去向，但我們確實有一定的靈活性。顯然，最重要的是，我們必須考慮我們在盟約中的位置。這就是我們在所有這些方面做出決策的一部分。

So thanks, everybody. That concludes our call today. I appreciate your time and look forward to seeing you or hearing from you on June 5. Have a great day.

所以謝謝大家。我們今天的電話會議到此結束。感謝您的寶貴時間，期待在 6 月 5 日見到您或收到您的來信。祝您度過愉快的一天。

We would like to thank everyone for your participation and for using the Lumen conferencing service today. This does conclude the conference call, and we ask that you please disconnect your line. Have a great day, everyone.

我們要感謝大家今天的參與和使用 Lumen 會議服務。這確實結束了電話會議，我們要求您斷開您的線路。祝大家有個美好的一天。