LiveVox Holdings Inc (LVOX) 2023 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to the LiveVox Second Quarter 2023 Conference Call. (Operator Instructions) This call is being recorded on Tuesday, August 8, 2023.

大家下午好，歡迎參加 LiveVox 2023 年第二季電話會議。 （操作員說明）此通話錄音時間為 2023 年 8 月 8 日星期二。

I would now like to turn the conference over to Alexis Waadt, Vice President, Head of Investor Relations. Please go ahead.

現在我想將會議交給副總裁兼投資者關係主管 Alexis Waadt。請繼續。

Good afternoon, and thank you for your participation today. With me on the call today are John DiLullo, CEO; [Gregg Clevenger], Executive Vice President and Chief Financial Officer.

下午好，感謝您今天的參與。今天與我一起參加電話會議的是執行長 John DiLullo； [格雷格·克萊文格]，執行副總裁兼財務長。

Before we get started, I would like to remind you that comments made during this conference call and webcast contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement.

在我們開始之前，我想提醒您，在本次電話會議和網路廣播中發表的評論包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，並且存在風險和不確定性。任何涉及未來事件的預期、預測或其他特徵的聲明，包括財務預測或未來市場狀況，均屬於前瞻性聲明。

The company's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including, without limitation, those listed in the Risk Factors section of our SEC filings, including our 10-K filed with the SEC on March 2, 2023. LiveVox assumes no obligation to update any such forward-looking statements.

本公司未來的實際結果可能因任何原因與此類前瞻性聲明中表達的結果存在重大差異，包括但不限於我們向SEC 提交的文件的風險因素部分列出的結果，包括我們於3 月2 日向SEC提交的10-K 報告，2023 年。LiveVox 不承擔更新任何此類前瞻性陳述的義務。

Please also note that past performance is not a guarantee of future results. Certain information discussed on this conference call was derived from third-party sources and has not been independently verified, and accordingly, the company makes no representation or warranty in respect of this information.

另請注意，過去的表現並不能保證未來的結果。本次電話會議討論的某些資訊來自第三方來源，未經獨立核實，因此，本公司對此資訊不作任何陳述或保證。

During this conference call, the company will discuss non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure can be found in the earnings press release which is available on the Investor Relations website, investors.livevox.com.

在本次電話會議期間，本公司將討論 SEC G 條例定義的非 GAAP 財務指標。每項非 GAAP 指標與最直接可比較的 GAAP 財務指標的調整表可在收益新聞稿中找到。在投資者關係網站Investors .livevox.com 上。

A recorded replay of this call, together with related materials, will be available on our Investor Relations website, investors.livevox.com. LiveVox's earnings release and Form 10-Q for the quarter ended June 30, 2023, will also be available on the company's website.

本次電話會議的錄音重播以及相關資料將在我們的投資者關係網站 Investors.livevox.com 上提供。 LiveVox 截至 2023 年 6 月 30 日的季度的收益報告和 10-Q 表格也將在該公司網站上發布。

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

接下來，我會將電話轉給約翰開始。

Thanks, Alexis, and thanks to everyone for joining our quarterly earnings call.

謝謝亞歷克西斯，也感謝大家參加我們的季度財報電話會議。

As you may have seen in our press release earlier this afternoon, LiveVox delivered a strong second quarter, which broadly met or exceeded expectations on nearly every key metric. It was a quarter full of accomplishments of which we are extremely proud, including, most notably, winning more than a dozen new customers, growing our installed base sales, winning three meaningful international orders and exceeding the high end of our guidance for revenue, gross margin and EBITDA. For these achievements, I'd like to thank our customers, suppliers, partners, our supportive investors, the LiveVox Board of Directors and especially our dedicated LiveVox employees.

正如您可能在今天下午早些時候的新聞稿中看到的那樣，LiveVox 的第二季度表現強勁，幾乎每個關鍵指標都基本上達到或超出了預期。這是一個充滿成就的季度，我們對此感到非常自豪，其中最值得注意的是，贏得了十多個新客戶，增加了我們的安裝基礎銷售，贏得了三個有意義的國際訂單，並超過了我們對收入、毛利率的指導上限。利潤率和 EBITDA。對於這些成就，我要感謝我們的客戶、供應商、合作夥伴、支持我們的投資者、LiveVox 董事會，特別是我們敬業的 LiveVox 員工。

In a few moments, our CFO, Gregg Clevenger, is going to share with you more details about our financial results and provide guidance for the balance of the year. In the brief time that I have today, I'd like to share with you color on our results and progress against our many initiatives.

稍後，我們的財務長 Gregg Clevenger 將與您分享有關我們財務業績的更多詳細信息，並為今年剩餘時間提供指導。在今天的短暫時間內，我想與大家分享我們的成果以及我們多項措施所取得的進展。

Our successes in Q2 were punctuated by the achievement of important milestones against our 2023 strategic plan to accelerate growth and to reduce costs. Despite continued uncertainty in the macroeconomic environment, in Q2, our team grew ARR 8.3% year-over-year. Gross margin grew approximately 600 basis points year-over-year, and adjusted EBITDA grew from a loss of $5.6 million to a gain of $1.1 million, an improvement of $6.7 million of quarterly adjusted EBITDA year-over-year.

我們在第二季度取得的成功得益於我們 2023 年加速成長和降低成本策略計畫的重要里程碑的實現。儘管宏觀經濟環境持續存在不確定性，但我們團隊在第二季的 ARR 年比成長了 8.3%。毛利率年增約 600 個基點，調整後 EBITDA 從虧損 560 萬美元增至 110 萬美元，季調整後 EBITDA 成長 670 萬美元。

As I alluded to above, during the quarter, we won 15 new customers. More than half of these wins were outside of our heritage verticals and arose from pronounced sales and marketing efforts to grow both emerging domestic and overseas channels. Bookings in the quarter were stronger than expected, and we are currently ahead of our internal bookings target.

正如我上面提到的，本季我們贏得了 15 位新客戶。其中超過一半的勝利不屬於我們的傳統垂直領域，而是源自於為發展新興國內和海外管道而做出的顯著銷售和行銷努力。本季的預訂量強於預期，目前我們已經提前完成了內部預訂目標。

What's more? A combination of aggressive performance management and excellent sales and marketing execution has seen our pipeline grow to record levels and sales attainment is substantially ahead of where it was this same time last year.

更重要的是？積極的績效管理與出色的銷售和行銷執行相結合，使我們的產品線成長到創紀錄的水平，銷售業績大幅領先於去年同期。

We entered 2023 with less than 2% of sales deriving from international markets. Over several quarters, our sales, customer success and engineering teams have been working hard to support our international expansion plans. As a result of these efforts, our bookings internationally jumped dramatically last quarter, including winning a $2 million annual revenue contract in the United Kingdom for a large inbound MSP opportunity, a mixed-use inbound and outbound solution in Dubai and the expansion of an existing U.S.-based BPO customer into Monterrey, Mexico.

進入 2023 年，我們的銷售額中來自國際市場的比例不到 2%。幾個季度以來，我們的銷售、客戶成功和工程團隊一直在努力支持我們的國際擴張計劃。由於這些努力，上季度我們的國際預訂量大幅增長，包括在英國贏得了一份價值200 萬美元的年收入合同，以獲得大型入境MSP 機會、迪拜的混合用途入境和出境解決方案以及現有的擴建美國 BPO 客戶進入墨西哥蒙特雷。

We also enjoyed several important wins from our newly established channel organization. I'm proud to report that we have now onboarded 6 value-added resellers, 5 cloud service brokers and have in recent weeks engaged our first third-party distributor, Jenne.

我們也從新成立的通路組織中獲得了一些重要的勝利。我很自豪地向大家報告，我們現在已聘請了 6 家加值經銷商、5 家雲端服務經紀人，並在最近幾週聘請了我們的第一個第三方經銷商 Jenne。

Jenne is one of Avaya's largest distributors, and we believe that their extensive reseller network together with our recent admission into Avaya's DevConnect program will bring market momentum to our channel efforts.

Jenne 是 Avaya 最大的經銷商之一，我們相信他們廣泛的經銷商網路以及我們最近加入 Avaya 的 DevConnect 計劃將為我們的通路工作帶來市場動力。

The team has broadly embraced our strategy of opening the aperture and serving the needs of a growing number of prospects anxious to shed themselves of traditional contact center limitations, including costly upgrades, difficult expansions, Arcane closed architectures and rigid old world pricing schemes.

團隊廣泛接受我們的策略，即打開縫隙並滿足越來越多渴望擺脫傳統聯絡中心限制的潛在客戶的需求，這些限制包括昂貴的升級、困難的擴展、神秘的封閉架構和嚴格的舊世界定價方案。

We have been listening to our customers attentively and now offer several new commercial models, including agent-based pricing, consumption-based pricing and simple global contracts for enterprises and BPOs alike that want to reap the performance and economic benefits of moving to our public cloud-based CCaaS platform.

我們一直在認真傾聽客戶的意見，現在提供幾種新的商業模式，包括基於代理的定價、基於消費的定價和簡單的全球合同，供企業和BPO 等希望獲得遷移到我們的公共雲的性能和經濟效益基於CCaaS平台。

Momentum in our go-to-market efforts is building. Q2 was another record quarter for sales-accepted lead and pipeline opportunity creation. Closely watched marketing metrics such as organic website traffic and social engagement also hit new records year-over-year.

我們進入市場的勢頭正在增強。第二季是銷售接受的潛在客戶和管道機會創造的另一個創紀錄的季度。受到密切關注的行銷指標，例如自然網站流量和社交參與度，也逐年創下新紀錄。

In June, we set a record for billable minutes on our LiveVox platform. And our first half new logo bookings in 2023 have already exceeded the new logo bookings from all of fiscal year 2022. As we head into the second half of 2023, we look forward to normal second half seasonality tailwinds and the potential for a recovery in the consumer credit cycle.

六月份，我們在 LiveVox 平台上創下了計費分鐘數的記錄。我們 2023 年上半年的新標誌預訂量已經超過了 2022 年整個財年的新標誌預訂量。隨著我們進入 2023 年下半年，我們期待下半年正常的季節性順風和復甦的潛力消費信貸週期。

We are excited by the energy in our order flow and customer interactions. However, it is a structural reality of our business model that bookings acceleration takes a long time to manifest itself in revenue growth. We understand this process well and continue to be prudent in our investments carefully matching spending with actual revenues.

我們對訂單流和客戶互動中的活力感到興奮。然而，我們業務模式的結構性現實是，預訂加速需要很長時間才能體現在收入成長上。我們非常了解這個過程，並繼續謹慎投資，仔細匹配支出與實際收入。

Improving COGS and controlling expenses have both been a major focus for the team. You may have noticed that in Q2, we successfully hurdled the 70% non-GAAP gross margin milestone for the first time in the company's history.

提高銷貨成本和控制費用一直是團隊的主要關注點。您可能已經注意到，在第二季度，我們在公司歷史上首次成功跨越了 70% 的非 GAAP 毛利率里程碑。

Similarly, we enjoyed a dramatic improvement in our adjusted EBITDA margin which surged from negative 17% of revenue in the second quarter of last year to positive 3% of revenue this quarter.

同樣，我們的調整後 EBITDA 利潤率也有了顯著改善，從去年第二季佔營收的負 17% 飆升至本季佔營收的正 3%。

Last quarter, I reported that we had retired version 13 of our product. I am happy to say that we are equally close to retiring version 15 of our product as well. Each time we retire a platform, it has a profound impact on COGS and support costs. Maintaining fewer releases has been a centerpiece of the efforts that brought us nearly 1,000 basis points of margin improvement in the last five quarters.

上個季度，我報告說我們已經停用了產品的第 13 版。我很高興地說，我們的產品第 15 版也同樣接近退役。每次我們淘汰一個平台，都會對 COGS 和支援成本產生深遠的影響。保持較少的發布量一直是我們努力的核心，在過去五個季度中，我們的利潤率提高了近 1,000 個基點。

As I detailed in last quarter's call, in the early days of Q2, one of our SMS text aggregators unexpectedly notified us of their decision to significantly reduce delivery of messages originating on the LiveVox platform. Although this issue did have a meaningful impact on our Q2 results, most of our customers have now been migrated to other carriers or aggregators. SMS traffic modestly improved in both May and June and the business disruption from this unexpected event appears to be stabilizing.

正如我在上個季度的電話會議中詳細介紹的那樣，在第二季度初期，我們的一個簡訊聚合商出乎意料地通知我們，他們決定大幅減少源自 LiveVox 平台的訊息傳遞。儘管這個問題確實對我們第二季的業績產生了重大影響，但我們的大多數客戶現在已經遷移到其他營運商或聚合商。 5 月和 6 月，簡訊流量略有改善，這起意外事件造成的業務中斷似乎正在趨於穩定。

Lastly, we continue to enjoy a brisk tailwind in pipeline growth from inquiries related to our newly introduced AI solutions and have been characterized as an AI beneficiary by several industry analysts. Our recent platform upgrade to Release 19 introduced to our base new transcription capabilities, automated call rep services, real-time sentiment analysis, virtual agents and proactive agent assist features. Many of our customers continue to struggle from persistent staffing shortages.

最後，由於與我們新推出的人工智慧解決方案相關的詢問，我們繼續享受管道成長的強勁推動力，並被幾位行業分析師描述為人工智慧受益者。我們最近的平台升級到版本 19，引入了新的轉錄功能、自動呼叫代表服務、即時情緒分析、虛擬代理和主動代理協助功能。我們的許多客戶繼續因持續的人員短缺而苦苦掙扎。

LiveVox's usage-based AI pricing model, hardened API integrations and auto scale and cloud infrastructure provide purpose-built easy access to these transformational AI technologies. It is virtually impossible to leverage AI tools in legacy on-premises contact centers. And we believe that the popularity of ChatGPT, large language models and other similar tools will only serve to accelerate migrations to our public cloud-based solution.

LiveVox 基於使用情況的 AI 定價模型、強化的 API 整合以及自動擴展和雲端基礎設施提供了專門構建的對這些變革性 AI 技術的輕鬆存取。在傳統的本地聯絡中心中利用人工智慧工具幾乎是不可能的。我們相信，ChatGPT、大型語言模型和其他類似工具的普及只會加速向我們基於公有雲的解決方案的遷移。

The macro trend that LiveVox enjoys are powerful and enduring. Innovations in AI, the market's acceptance of our new leading capabilities and our commercial flexibility have created a catalyst for success in the potential migration of more than 10 million competitively held legacy contact center seats.

LiveVox 所享有的宏觀趨勢是強大且持久的。人工智慧的創新、市場對我們新的領先能力的接受以及我們的商業靈活性，為成功遷移超過 1000 萬個有競爭力的傳統聯絡中心席位創造了催化劑。

Together with our committed employees and our obsession for customer success, we believe the future for LiveVox is very bright.

加上我們忠誠的員工和對客戶成功的執著，我們相信 LiveVox 的未來非常光明。

Thanks again for your time today. It's my pleasure now to introduce Gregg Clevenger, our Chief Financial Officer, who will walk us through the numbers. Gregg?

再次感謝您今天抽出時間。現在我很高興向大家介紹我們的財務長 Gregg Clevenger，他將向我們介紹這些數字。格雷格？

Thank you, John, and good afternoon, everyone.

謝謝約翰，大家下午好。

I want to remind you that all non-GAAP financial figures that I discuss on the call today are reconciled in a presentation posted on the Investor Relations section on our website, in our press release issued just prior to this call and in our 10-Q. I'll start off with a recap of a very solid second quarter before moving on to guidance for the third quarter and full year 2023.

我想提醒您，我今天在電話會議上討論的所有非GAAP 財務數據均在我們網站投資者關係部分發布的演示文稿、本次電話會議之前發布的新聞稿以及我們的10-Q 報告中進行了核對。 。我將首先回顧非常穩健的第二季度，然後再介紹第三季度和 2023 年全年的指導。

Revenue for the second quarter was $35.4 million, 7% higher than the second quarter of last year and $400,000 above the high end of our guided range of $34 million to $35 million. ARR, which is annualized total revenue for the quarter minus all nonrecurring revenue, was $140.3 million, 8.3% higher than $129.6 million of ARR in the second quarter of 2022.

第二季營收為 3,540 萬美元，比去年第二季成長 7%，比我們指引範圍 3,400 萬美元至 3,500 萬美元的上限高出 40 萬美元。 ARR（本季年化總收入減去所有非經常性收入）為 1.403 億美元，比 2022 年第二季的 ARR 1.296 億美元高出 8.3%。

Net revenue retention stayed steady at 111% versus 112% last quarter and improved from 108% in the second quarter of last year. Adjusted gross margin for the second quarter was 70%, an increase of 170 basis points versus last quarter and nearly 600 basis points better than the second quarter of last year.

淨收入保留率穩定在 111%，上一季為 112%，較去年第二季的 108% 有所改善。第二季調整後毛利率為70%，較上季成長170個基點，較去年第二季提高近600個基點。

Adjusted EBITDA for the quarter was a positive $1.1 million, also well above the high end of our guided range. GAAP earnings per share for the quarter were a negative $0.05 on both a basic and diluted basis versus negative $0.11 per share last quarter and a negative $0.12 in the second quarter of last year. CapEx for the quarter totaled only $50,000, reflecting the capital-light nature of our 100% public cloud product platform. And lastly, we ended the quarter with $53.9 million of debt and $61.4 million of cash and cash equivalents and marketable securities.

本季調整後 EBITDA 為 110 萬美元，也遠高於我們指引範圍的上限。本季 GAAP 每股收益（基本收益和稀釋收益）均為負 0.05 美元，上季為負 0.11 美元，去年第二季為負 0.12 美元。本季的資本支出總計僅為 50,000 美元，反映了我們 100% 公有雲產品平台的輕資本性質。最後，本季結束時，我們的債務為 5,390 萬美元，現金和現金等價物以及有價證券為 6,140 萬美元。

So let's turn now to forward-looking guidance. We expect third quarter revenue to be between $35.5 million and $36.5 million, 1% to 4% growth over the third quarter of 2022. We expect our adjusted gross margin in the third quarter to be at least 70%, and we expect our adjusted EBITDA to be between $1 million and $1.5 million.

現在讓我們轉向前瞻性指引。我們預計第三季營收將在 3,550 萬美元至 3,650 萬美元之間，比 2022 年第三季成長 1% 至 4%。我們預計第三季調整後毛利率至少為 70%，我們預計調整後 EBITDA介於100 萬至150 萬美元之間。

In terms of full year revenue guidance for 2023, we are increasing our previously provided revenue guidance to $145 million to $148 million for the full year which implies that our fourth quarter revenue growth rate is expected to accelerate to 4% to 10% year-over-year versus the 1% to 4% growth in our third quarter revenue guidance. And lastly, we are increasing our previously provided adjusted EBITDA guidance to $5 million to $7 million for the full year.

就 2023 年全年營收指引而言，我們將先前提供的全年營收指引提高至 1.45 億至 1.48 億美元，這意味著我們第四季的營收成長率預計將同比加速至 4% 至 10%與我們第三季營收指引中1% 至4% 的成長相比。最後，我們將先前提供的全年調整後 EBITDA 指引提高至 500 萬至 700 萬美元。

With that, operator, can you please open the line for Q&A?

那麼，接線員，您可以開通問答線嗎？

(Operator Instructions) And your first question comes from Kash Rangan from Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的 Kash Rangan。

This is Jacob on for Kash. A couple of questions. First, very good quarter. I wanted to touch on ARR. I noticed that it was up 8% year-over-year, but it was down sequentially, roughly 2%. Is there anything to call out around that?

這是雅各替補卡什。有幾個問題。首先，非常好的季度。我想談談 ARR。我注意到它同比增長了 8%，但環比下降了大約 2%。周圍有什麼需要注意的嗎？

Yes, Jacob, this is Gregg. That's the impact of the SMS issue that we talked about last quarter, where we guided that we were going to have an impact of $3 million to $4 million of revenue over the remainder of the year. And obviously, that's going to have an impact on our ARR as well.

是的，雅各布，這是格雷格。這就是我們上個季度討論過的 SMS 問題的影響，我們預計在今年剩餘時間內我們將產生 300 萬至 400 萬美元的收入影響。顯然，這也會對我們的 ARR 產生影響。

Okay. Understood. And then can you maybe touch on how you're seeing the macro and maybe sales cycles in Q3 thus far versus what you saw in Q2. And any additional color you can provide around that.

好的。明白了。然後您能否談談您如何看待迄今為止第三季的宏觀以及銷售週期與第二季的情況。以及您可以提供的任何其他顏色。

Sure, Jacob. This is John DiLullo here. We're off to a pretty good start, I would say, in Q3, and it does feel to us like there's good energy in the business. I mentioned last quarter that we had seen slight improvement in sales cycle times. I think we've seen that persist into this quarter as well. And we're seeing generally good energy and momentum in the business.

當然，雅各。我是約翰·迪魯洛。我想說，我們在第三季有了一個很好的開端，我們確實感覺到業務充滿活力。我上季提到，我們看到銷售週期時間略有改善。我認為我們也看到這種情況持續到本季。我們看到業務總體上充滿活力和勢頭。

I would say it's similar to prior quarters, but there doesn't seem to be anything terrifically broken and customers continue to buy, and we're continuing to develop nice momentum and expansion in our pipeline and in our order volume.

我想說，這與前幾季相似，但似乎沒有什麼嚴重的問題，客戶繼續購買，我們的管道和訂單量繼續發展良好的勢頭和擴張。

Your next question comes from Parker Lane from Stifel.

您的下一個問題來自 Stifel 的 Parker Lane。

John, really interesting to see the 3 international deals here in the U.K., Dubai and Mexico. I know that's an area you've been leaning in on since you became CEO here. What do you think the driving force was between -- behind those 3 particular deals this quarter? Where are we in terms of brand recognition? And just how is the go-to-market team structured on an international basis so far?

約翰，看到英國、杜拜和墨西哥的 3 項國際交易真的很有趣。我知道自從您成為這裡的執行長以來，這是您一直關注的領域。您認為本季這 3 筆特定交易背後的驅動力是什麼？就品牌認知度而言，我們處於什麼位置？到目前為止，國際行銷團隊的結構如何？

Parker, great to hear from you. Thanks for the question. Each of those transactions is a snowflake, and so they're all a little bit different. But I would say one thing that they had in common was we didn't do them with a lot of in-country sales support. So we really haven't started to build out our international sales support teams, although we are doing some sales support now in Latin America and Colombia, some sales support in India as well. These are mostly the migration of either existing relationships or existing customers that knew our product, that wanted to embrace it and, in the past, we just weren't ready to support.

帕克，很高興收到你的來信。謝謝你的提問。每筆交易都是一片雪花，因此它們都有點不同。但我想說，他們的一個共同點是我們沒有提供大量的國內銷售支援。因此，我們實際上還沒有開始建立我們的國際銷售支援團隊，儘管我們現在正在拉丁美洲和哥倫比亞提供一些銷售支持，在印度也提供一些銷售支援。這些主要是現有關係或現有客戶的遷移，他們了解我們的產品，想要接受它，而在過去，我們只是沒有準備好提供支援。

I may -- you may remember that I announced in Q1 that we had launched our EU1 cloud platform, and this is, I think, the recognition of that from our customer base and getting access to the workloads. So it's -- there's just a lot of interest internationally from our installed base, and that's going to be the springboard. And then, as needed, we'll make on-the-ground investments.

我可能 - 你可能還記得我在第一季宣布我們推出了 EU1 雲端平台，我認為這是我們的客戶群對此的認可並可以存取工作負載。所以，國際上我們的客戶群對我們很感興趣，這將成為跳板。然後，根據需要，我們將進行實地投資。

Got it. And then maybe as a slight follow-up to last question, but I think you signed something like 30 customers last year. You won 15 this quarter. It seems like there's a decent pickup in sales momentum here. Is that just a testament to some of the sort of internal changes you've made in the organization? Or are you finding that there's more receptiveness out in the market right now?

知道了。也許是對上一個問題的輕微跟進，但我認為您去年簽署了大約 30 個客戶。本季度您贏得了 15 場比賽。這裡的銷售動能似乎有了不錯的回升。這是否只是您在組織中所做的某些內部變革的證明？或者您發現現在市場上的接受度更高？

I'd say -- Parker, I'd say it's both. I do think there is a lot of energy. There's -- our capabilities in AI, our consumption-based model, our pricing, there's a lot of interest in moving off of the legacy infrastructure right now, and that's been a great tailwind for us and a lot of those are new logos.

我會說——帕克，我會說兩者都是。我確實認為有很多能量。我們在人工智慧方面的能力，我們基於消費的模型，我們的定價，現在人們對擺脫遺留基礎設施很感興趣，這對我們來說是一個巨大的推動力，其中許多都是新標誌。

But I would also say that we've -- and I use the phrase in the earnings narrative, open the aperture. But we are opening the aperture to new types of customers. Obviously, the -- two of the three international customers were net new logos, but we've also -- we continue to enjoy just by inviting more people to come in and enjoy the -- and explore the product and being more open to the types of customers we're engaging and investing a little bit differently in marketing.

但我也想說，我們已經——我在收益敘述中使用了這個詞，打開了光圈。但我們正在向新類型的客戶敞開大門。顯然，三個國際客戶中的兩個是淨新徽標，但我們也 - 我們繼續通過邀請更多的人進來享受 - 並探索產品並對產品更加開放我們在營銷方面所吸引和投資的客戶類型略有不同。

We're getting a lot more looks as people get an experience with our product that's resulting in more sales. And what I would say is I really do think this is something persistent. If I look at the pipeline, if I look at the funnel, if I look at the transaction volume, I think this is an area where we could continue to win new logos for quite a while yet.

隨著人們體驗我們的產品，我們獲得了更多的關注，從而帶來了更多的銷售。我想說的是，我確實認為這是持久的。如果我看看管道，如果我看看漏斗，如果我看看交易量，我認為這是我們可以在相當長一段時間內繼續贏得新徽標的領域。

Your next question comes from Jim Fish from Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Jim Fish。

This is Quinton on for Jim Fish. Maybe following up on the last one. The pipeline sounds about as good as it's ever been. I think we've talked about record levels here. Can you talk about who you're seeing the most from the competitive side? What's really driving some of this? Is it that they're seeing and wanting the AI products that you're offering and they want to move to the cloud? Is it some of the kind of compliance offerings that you're bringing? Maybe just give us an idea of what is one or two of the biggest reasons why this pipeline is so much bigger than what we've seen in the past.

這是昆頓為吉姆·菲什配音的節目。也許是在跟進上一篇。管道聽起來和以前一樣好。我想我們已經在這裡討論了創紀錄的水平。您能談談您在競爭方面最常見到的誰嗎？到底是什麼推動了這一切？是不是他們看到並想要您提供的人工智慧產品並且想要遷移到雲端？這是您提供的某種合規產品嗎？也許只是讓我們了解這條管道比我們過去看到的大得多的一兩個最大原因是什麼。

It's great to hear from you, and thanks for the question. We are -- I would say, a lot of the interest -- the people that we're seeing are generally the legacy on-premises customers that are deployed, not leveraging cloud. Now what they want to do and what they're -- I think there's a lot of hype right now around AI, and that is driving those customers to explore what they can do with AI. There's also a lot of pressure on people right now from just staffing challenges and turnover challenges and wage cost. And all of that is driving the legacy customers, the on-premises customers to explore what their options are. I think they very quickly realized that the old world players can't really bring AI solutions to bear with quite the nimbleness that we can, and that's a big differentiator.

很高興收到你的來信，謝謝你的提問。我想說的是，我們所看到的人通常是部署的傳統本地客戶，而不是利用雲端。現在他們想要做什麼以及他們是什麼——我認為現在圍繞人工智慧有很多炒作，這促使這些客戶探索他們可以用人工智慧做什麼。現在，人們也面臨著很大的壓力，包括人員配置挑戰、人員流動挑戰和薪資成本。所有這些都在推動傳統客戶、本地客戶探索他們的選擇。我認為他們很快就意識到舊世界的玩家無法真正讓人工智慧解決方案與我們一樣靈活，這是一個很大的區別。

I would also say, if you look at the continuum of somebody -- we want to be on cloud, we want to leverage AI, we like your consumption-based model, and we have very unique inbound and outbound care and maybe different sales applications or different types of customer support requirements, we really offer solutions across that entire gamut.

我還想說，如果你看看某人的連續體——我們想要在雲端上，我們想要利用人工智慧，我們喜歡基於消費的模型，我們有非常獨特的入站和出站護理，也許還有不同的銷售應用程式或不同類型的客戶支援需求，我們確實提供涵蓋整個範圍的解決方案。

So I think it's a couple of things. AI is certainly fanning the flames. People want to leverage our products there. They realize they need to move their workloads to the public cloud and take advantage of that. And then also the completeness of our product and the flexibility of our commercial offer seems to be helping us to win as many deals as we are.

所以我認為有幾件事。人工智慧無疑是在煽風點火。人們希望在那裡利用我們的產品。他們意識到他們需要將工作負載轉移到公有雲並利用它。我們產品的完整性和商業報價的靈活性似乎也幫助我們贏得了盡可能多的交易。

Yes, that makes a lot of sense. And then maybe more looking at the collections and the usage side. The trends all seem like we're moving in the right direction and the fall rates or out balances are up same rates or low. More looking at a timing perspective, is there a level here where your customers have told you yet, this triggers kind of some of our usage need to come back? Or should we think about this more of a slow build as we work through some of this consumer credit cycle?

是的，這很有意義。然後也許更多地關注集合和使用方面。所有趨勢似乎都在朝著正確的方向發展，下降率或結餘率上升相同或較低。更多地從時間角度來看，您的客戶是否已經告訴您，這會觸發我們的一些使用需要回來？或者，當我們經歷消費信貸週期的某些階段時，我們是否應該將其視為一個緩慢的建構過程？

Thanks, Quinton. I don't think we've seen a sea change with a group of customers that all of a sudden want to consume a lot more. I think we're seeing gradual movements in that direction, where we're seeing the jump-ups in backlog and the jump-ups in bookings and in new logo acquisitions seem to be -- the majority are in emerging use cases are in a lot of care and customer support use cases. And it does not seem, for instance, that there is a huge amount of building momentum just yet around normalization of the credit cycle and all the consumer credit companies that I think you know we have relationships with.

謝謝，昆頓。我認為我們並沒有看到一群顧客突然想要消費更多的情況發生巨大變化。我認為我們正在朝著這個方向逐步發展，我們看到積壓量的激增以及預訂和新徽標收購的猛增似乎是——大多數是在新興用例中很多關懷和客戶支援用例。例如，圍繞信貸週期正常化以及我想你知道我們與我們有關係的所有消費信貸公司的正常化，似乎還沒有形成巨大的勢頭。

Their business is doing well, but it's not certainly -- doesn't feel quite yet like it's back to pre-pandemic levels. But I think we've engineered for growth and sustainability in other ways. And if that comes back, even more power to us. But it's a good quarter on its own merits. And the second half as I telegraphed in the call, is looking also very energetic.

他們的業務做得很好，但還不確定——感覺還沒有回到大流行前的水平。但我認為我們已經透過其他方式實現了成長和永續性。如果這種情況回來，我們就會擁有更多的力量。但就其本身的優點而言，這是一個不錯的季度。正如我在電話中所傳達的那樣，下半場看起來也非常有活力。

Your next question comes from Mike Latimore from Northland Securities.

您的下一個問題來自北國證券公司的麥克拉蒂莫爾。

This is Logan on for Mike. Could you guys talk about kind of initial deal sizes and what you're seeing, if they're growing, shrinking or staying the same? And do you anticipate any changes in deal size moving forward?

這是麥克的羅根。你們能談談初始交易規模以及你們所看到的情況嗎？它們是成長、收縮還是保持不變？您預計未來交易規模會發生什麼變化嗎？

Logan, good to hear from you and to Mike as well, of course. I think it's about the same. The -- about the same as in prior periods. Of course, it seems like every quarter, we have one or two anchor deals, just like we did this quarter, but that's pretty common for us. So I haven't really noticed a big change.

洛根，當然，很高興收到你和麥克的來信。我認為是差不多的。與之前的時期大致相同。當然，似乎每個季度我們都會有一兩筆主力交易，就像我們本季所做的那樣，但這對我們來說很常見。所以我還沒有真正注意到有什麼大的變化。

As I mentioned earlier, though, I am noticing the energy coming from all the excitement around AI, the acceleration of workloads, people moving off of their traditional on-premises and into the public cloud. And it does feel -- I guess, our brand is getting out there as our name is getting bigger, as our customer list is growing that people are more quickly closing transactions and working with the teams very constructively on implementation plans.

不過，正如我之前提到的，我注意到圍繞人工智慧的所有興奮、工作負載的加速以及人們從傳統的本地遷移到公有雲所帶來的能量。我想，隨著我們的名字越來越大，隨著我們的客戶名單不斷增長，人們正在更快地完成交易，並與團隊就實施計劃進行非常建設性的合作，我們的品牌正在逐漸走出去。

We're just getting better and better as a company every day on that. So I'm optimistic that not only do -- will we continue to see bookings velocity, but I think we'll also just get better and better at implementing these customers and bringing them to revenue faster as well.

作為一家公司，我們在這方面每天都在變得越來越好。因此，我樂觀地認為，我們不僅會繼續看到預訂速度，而且我認為我們也會越來越好地實現這些客戶，並更快地為他們帶來收入。

Perfect. And then with the interest in AI being up, is there any use cases that you guys would like to highlight or you guys are excited about?

完美的。隨著人們對人工智慧的興趣日益濃厚，有沒有你們想要強調的或你們感到興奮的用例？

I think we're excited about all of the use cases. The -- I think the big issue in this industry is that you do at some level rely on people, and it's very hard right now to keep the contact centers fully staffed, but also there's the underlying demographic that when you run a contact center, about 10% of the total cost of operating a contact center is the technology, about 90% is the people. And so the opportunity is enormous to arbitrage some of that cost, that cost of running the contact center, of which 90% is the people.

我認為我們對所有用例都感到興奮。我認為這個行業的一個大問題是，你在某種程度上確實依賴於人，現在很難讓聯絡中心配備滿員，而且當你運營聯絡中心時，還有潛在的人口統計，運營聯絡中心的總成本中大約10% 是技術，大約90% 是人員。因此，套利部分成本的機會是巨大的，即營運聯絡中心的成本，其中 90% 是人員。

And so when you think about like the average customer success rep for instance, or a customer service rep or technical support rep, they may spend as much as 30% of their time wrapping up the call. And leveraging large language models as we have in our agent assist product, which is out in Release 19, you can see that we can reduce wrap, in some cases, by 50%. And so if an agent is spending 30% of their time wrapping up calls, and you can reduce that by 50% or more, you've given back time to the contact center, which essentially, you've given back costs or you've made them more productive or you've required them to hire less people for burst times.

因此，例如，當您考慮普通客戶成功代表、客戶服務代表或技術支援代表時，他們可能會花費多達 30% 的時間來結束通話。利用我們在第 19 版中發布的代理輔助產品中的大型語言模型，您可以看到我們可以在某些情況下減少 50% 的換行。因此，如果客服人員花費30% 的時間來結束通話，而您可以將其減少50% 或更多，那麼您就已經將時間回饋給了聯絡中心，這實質上就是您回饋了成本，或者說您已經回饋了成本。提高了他們的工作效率，或者您要求他們在突發時期僱用更少的人員。

And so we think AI is -- it's a very broad brush, and there's a lot of noise around it in general right now, but it is just going to help us immensely and help our operators, the people that are running the contact centers to be much more efficient with their people and also to make the jobs a lot more fun. And hopefully, that will drive less turnover, better training, all of these great things. We just think there's an incredible virtuous connection between AI and the task that we have in providing technology solutions for contact center operators. And so it's all good and it's just getting better every day.

所以我們認為人工智慧是——它是一個非常廣泛的刷子，目前普遍存在很多噪音，但它只會極大地幫助我們，並幫助我們的操作員，即運營聯絡中心的人員與員工相處更加高效，工作也更加有趣。希望這能減少人員流動、提供更好的培訓以及所有這些偉大的事情。我們只是認為人工智慧與我們為聯絡中心操作員提供技術解決方案的任務之間存在著令人難以置信的良性聯繫。所以一切都很好，而且每天都在變得更好。

(Operator Instructions) Your next question comes from Matthew Harrigan.

（操作員說明）您的下一個問題來自 Matthew Harrigan。

I'm sorry, I never had gaps with the mute button, but I just did. Could you update us on the FedRAMP process, the time line and the benefits. And also, I know much of this is the province of AWS, which is what you're seeing in the cybersecurity environment.

抱歉，我從來沒有與靜音按鈕有過間隙，但我就是這麼做了。您能否向我們介紹 FedRAMP 流程、時間表和好處的最新情況。而且，我知道這很大程度上是 AWS 的職責，這就是您在網路安全環境中看到的情況。

Matthew, would you -- the second part of your question, would you mind repeating that?

馬修，你介意重複一下你問題的第二部分嗎？

I know AWS is responsible for much of your security, but just what are you seeing with the cybersecurity environment right now is a particular interest of ours?

我知道 AWS 負責您的大部分安全，但您現在在網路安全環境中看到的是什麼是我們特別感興趣的？

Okay. Excellent. Those are great questions. I didn't talk about FedRAMP in my prepared comments, but it is a very interesting segment for us. As you know, there are very large government agencies, for instance, different departments, Department of Commerce, Department of Treasury, all these. They have gigantic contact centers, and that's a big opportunity, but you need to be FedRAMP-compliant.

好的。出色的。這些都是很好的問題。我在準備好的評論中沒有談論 FedRAMP，但這對我們來說是一個非常有趣的部分。如你所知，有非常大的政府機構，例如不同的部門，商務部、財政部等等。他們擁有龐大的聯絡中心，這是一個巨大的機會，但您需要符合 FedRAMP 要求。

This is a journey that we started a while back. And we've made substantial progress on it. And in fact, I'll commit today to giving you a good update a quarter from now. But we're making a lot of progress there and are optimistic that we'll be able to submit soon for FedRAMP approval.

這是我們不久前開始的旅程。我們已經在這方面取得了實質進展。事實上，今天我將承諾在一個季度後向您提供良好的更新。但我們在這方面取得了很大進展，並且樂觀地認為我們將能夠很快提交 FedRAMP 批准。

I do think that we do expect from that a halo effect with other segments such as state and local government, education, civilian. And there are more and more people in the financial segment these days that are also embracing FedRAMP. So we think this is a good investment. We're excited to be making it. It's not a huge burden on us. And -- but it does open up probably 10 or 20 -- I don't know the exact number, but it's a significant amount of more domestic TAM.

我確實認為，我們確實期望州和地方政府、教育、民間等其他部門產生光環效應。如今，金融領域越來越多的人也開始擁抱 FedRAMP。所以我們認為這是一項很好的投資。我們很高興能夠成功。這對我們來說並不是一個很大的負擔。而且 - 但它確實開放了可能 10 或 20 個 - 我不知道確切的數字，但這是大量的國內 TAM。

As far as the security part of your question, this is an area that I really believe, not only have we continued to make strides, but also our architecture is just inherently more secure than anything you're going to put in a traditional contact center environment or someone hosting their own contact center on their own infrastructure in a private type of a cloud.

就您問題的安全部分而言，我確實相信這是一個領域，我們不僅繼續取得長足進步，而且我們的架構本質上比傳統聯絡中心的任何架構都更安全環境或某人在私有類型的雲中自己的基礎設施上託管自己的聯絡中心。

The reason for that is, as you know, they have to do tons of updating of infrastructure and images and operating systems -- and that is whenever you get involved in that type of business, you open yourself to a lot of errors. We don't have to do any of that because we are on AWS and AWS maintains such a hardened environment and is so diligent about updating operating systems and patching infirmities when they're discovered.

原因是，如您所知，他們必須對基礎設施、映像和作業系統進行大量更新 - 每當您參與此類業務時，您就會面臨很多錯誤。我們不需要做任何這些事情，因為我們在 AWS 上，AWS 維護著這樣一個強化的環境，並且在發現問題時非常勤奮地更新作業系統和修補問題。

Now in addition to that, I would say, as you know, we have a large number of customers, major enterprises that are in the finance vertical. And they have also been quite demanding in our security posture and making sure that we embrace a 0 trust security architecture, and we have.

除此之外，我想說，如您所知，我們擁有大量客戶，都是金融垂直領域的大型企業。他們對我們的安全態勢也提出了相當高的要求，並確保我們採用 0 信任安全架構，我們做到了。

And this is one of the strongest selling points of our product when we introduced this to our customers that we encrypt all of our API traffic. We encrypt every single voice communication. Think about a legacy contact center where in the old days, you could just jack in and listen to what was happening in the contact center.

當我們向客戶介紹我們對所有 API 流量進行加密時，這是我們產品最強大的賣點之一。我們對每一次語音通訊進行加密。想像傳統的聯絡中心，在過去，您可以直接接觸並收聽聯絡中心發生的情況。

All of our voice communications are encrypted. All of our data at rest is encrypted. All of our data in motion is encrypted. All of our APIs are encrypted and all of our API traffic between micro services within the AWS infrastructure is also encrypted. So many of our API calls are doubly encrypted.

我們所有的語音通訊都是加密的。我們所有的靜態資料都經過加密。我們所有的動態資料都經過加密。我們所有的 API 都經過加密，AWS 基礎架構內的微服務之間的所有 API 流量也都經過加密。我們的許多 API 呼叫都經過雙重加密。

So I feel like we have heralded or, I should say, hurdled a level of 0 -- we've advanced to the further -- to the nth degree our 0 trust architecture. And we think that we're providing among the most secure platforms available for deploying contact center solutions with the way we've approached it.

所以我覺得我們已經宣告，或者我應該說，跨越了 0 水平——我們已經進一步前進——我們的 0 信任架構達到了第 n 級。我們認為，我們正在以我們的方式提供最安全的平台，用於部署聯絡中心解決方案。

I can't tell you how much I appreciate the question because people don't ask about it a lot. It may not be top of mind. But it is top of mind for us and for our customers. And so I think, working together with AWS, we have a very secure product.

我無法告訴你我有多欣賞這個問題，因為人們很少問這個問題。這可能不是首要考慮的事情。但這對我們和我們的客戶來說都是首要考慮的。所以我認為，透過與 AWS 合作，我們擁有一個非常安全的產品。

There are no further questions at this time. I'll turn it back to John for closing remarks.

目前沒有其他問題。我將把它轉回給約翰致結束語。

Thank you very much, and I do want to thank -- I want to thank everybody for their great questions. Thanks for continuing to stay with us as partners and investors and genuinely appreciate your time here this afternoon and look forward to talking to you more over the coming days, weeks and months. Thank you very much.

非常感謝你們，我確實要感謝──我要感謝大家提出的好問題。感謝您作為合作夥伴和投資者繼續與我們在一起，衷心感謝您今天下午在這裡度過的時光，並期待在未來幾天、幾週和幾個月內與您進行更多交談。非常感謝。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。