Magic Software Enterprises Ltd (MGIC) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Magic Software Enterprises 2024 our first-quarter financial results conference call.

女士們、先生們，感謝你們的支持，並歡迎參加 Magic Software Enterprises 2024 年第一季財務業績電話會議。

Magic's first quarter 2024 earnings release was issued before the market opened this morning and it has been posted on the company's website at www.magicsoftware.com.

Magic 的 2024 年第一季財報是在今天早上開盤前發布的，並已發佈在該公司網站 www.magicsoftware.com 上。

(Operator Instructions)

（操作員說明）

With us on the line today are Magic's CEO Mr. Guy Bernstein; Magic's CFO, Mr. Asaf Berenstin; and Magic's CTO Mr. Yuval Lavi.

今天與我們通話的是萬智牌執行長 Guy Bernstein 先生；萬智牌財務長 Asaf Berenstin 先生；以及Magic 的技術長Yuval Lavi 先生。

Before we start, I would like to remind everyone that projections or other forward-looking statements may be provided on this conference call and the safe harbor provision provided in the press release issued today also applies to the contents of this call.

在開始之前，我想提醒大家，本次電話會議可能會提供預測或其他前瞻性陳述，今天發布的新聞稿中提供的安全港條款也適用於本次電話會議的內容。

Magic expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations or otherwise.

Magic 明確表示不承擔更新或修改任何這些前瞻性陳述的義務，無論是由於未來事件、新資訊、其觀點或期望的變化還是其他原因。

Also during the course of today's call, management will refer to non-GAAP financial measures.

此外，在今天的電話會議中，管理階層也將參考非公認會計原則的財務指標。

A reconciliation schedule showing GAAP versus non-GAAP results has been provided in the press release issued before the market opened this morning, a replay of this call will be available after the call on the Investor Relations section of the company's website.

今天早上開盤前發布的新聞稿中提供了顯示 GAAP 與非 GAAP 業績的對帳表，電話會議結束後，公司網站的投資者關係部分將提供本次電話會議的重播。

I will now turn the call over to Mr. Asaf Berenstin, CFO of Magic Software.

現在我將把電話轉給 Magic Software 財務長 Asaf Berenstin 先生。

Please go ahead.

請繼續。

Thank you, operator, and thank you everyone for joining us today as we report our first quarter 2024 financial results.

謝謝運營商，也謝謝大家今天加入我們，我們將報告 2024 年第一季的財務表現。

During the call today, I will review highlights from our first quarter results and provide an overview of our outlook.

在今天的電話會議中，我將回顧我們第一季業績的亮點，並概述我們的前景。

Revenues in the first quarter of 2024 decreased $130.7 million, down approximately 8.2% from the first quarter of 2023.

2024 年第一季營收減少 1.307 億美元，較 2023 年第一季下降約 8.2%。

As we already mentioned in past calls, the effect of the currency fluctuation on our revenues was still significant compared to the corresponding quarters of last year.

正如我們在過去的電話會議中已經提到的，與去年同期相比，貨幣波動對我們收入的影響仍然很大。

On a constant currency basis, calculated based on the average currency exchange rates for the three months ended March 31, 2023, revenues for the first quarter of 2024 would have decreased by approximately 6.4% compared to the first quarter of 2023 to $133.3 million, a $2.6 million higher than our reported revenue figure for the quarter.

以固定匯率計算，根據截至 2023 年 3 月 31 日止三個月的平均貨幣匯率計算，2024 年第一季的營收將比 2023 年第一季下降約 6.4%，至 1.333 億美元，比我們報告的本季營收數字高出260 萬美元。

On a sequential basis, revenues for the first quarter increased by 4.1%, as we described in the third quarter result conference call on November 14, 2023.

正如我們在 2023 年 11 月 14 日的第三季業績電話會議中所述，第一季營收季增 4.1%。

The reduction in our revenues was caused primarily by two factors currency headwind caused by the significant deterioration of the new Israeli shekel relative to the USD in 2023, reaching 3.6% for the for this quarter, which has hurt our Israeli shekel denominated operation by $2.56 million for the first quarter.

我們收入的減少主要是由於兩個因素造成的，即以色列新謝克爾相對於美元的匯率在2023 年大幅惡化，本季達到3.6%，這導致我們以以色列謝克爾計價的業務損失了256萬美元。

And it's a substantial and unexpected decline in the demand for professional services for several of our important US-based blue-chip customers, which without any advanced notification in due to internal reasons related to also to services decided during the second half of the third quarter of 2023 and going forward to immediately suspend significant parts of the active time and material based projects.

我們的幾個重要的美國藍籌客戶對專業服務的需求出現了意外的大幅下降，由於與第三季下半年決定的服務相關的內部原因，沒有任何提前通知。活動時間和材料的項目。

Behind the results, also like the ongoing challenging macroeconomic climate, which did not help our ability to overcome the primary other taxes that way against us.

結果的背後，還有持續充滿挑戰的宏觀經濟環境，這無助於我們克服對我們不利的主要其他稅收的能力。

Despite these difficulties working against us, we continue to plow forward with our worldwide dedication and confidence that we can continue to execute on sales of our world-class suite of products providing related services.

儘管有這些困難，我們仍以全球奉獻精神繼續前進，並有信心繼續銷售我們的世界一流產品套件並提供相關服務。

At AI low-code, no-code server and services offerings are critical as customers continue to automate and digitize the systems and products and while some of our newest customers are facing macro and company-specific challenges, the sequential improvement in our top-line results reflect the vast majority of our customers continue to value.

在人工智慧領域，隨著客戶不斷實現系統和產品的自動化和數位化，低程式碼、無程式碼伺服器和服務產品至關重要，儘管我們的一些最新客戶面臨著宏觀和公司特定的挑戰，但我們營收的連續改善表現反映了絕大多數客戶對我們持續的價值。

Our unique proposition and resume to engages in to an increasing degree as a preferred partner for innovative digital transformation initiatives.

我們獨特的主張和履歷表越來越多地成為創新數位轉型計畫的首選合作夥伴。

Furthermore, even in this challenging environment, our non-GAAP operating margin held strong at approximately 13.9% of our revenues, 90 basis points higher compared to the margin during the first quarter of 2023 and 50 basis points higher compared to the full year of 2023.

此外，即使在這種充滿挑戰的環境下，我們的非公認會計原則營業利潤率仍保持強勁，佔收入的約13.9%，比2023 年第一季的利潤率高出90 個基點，比2023 年全年高出50 個基點。

This shows the inherent scalability and defensibility of our business model and our ability to maintain and even improve our operating margin, whether our revenues will fall.

這顯示了我們業務模式固有的可擴展性和防禦性，以及我們維持甚至提高營業利潤率的能力，無論我們的收入是否會下降。

We believe that our ability to maintain the profitability of our operations will keep our balance sheet strong and will enable us to invest in order to drive revenue growth in the future.

我們相信，維持業務獲利能力的能力將使我們的資產負債表保持強勁，並使我們能夠進行投資，以推動未來的收入成長。

As we look at our business, we see that we continue to leverage our digital technologies and cloud-based platforms to create strong demand for our initiatives software solutions and services.

當我們審視我們的業務時，我們發現我們繼續利用我們的數位技術和基於雲端的平台來為我們的計劃軟體解決方案和服務創造強勁需求。

We similarly continued to see excellent execution by our team setting aside the fact that slowed down our revenues in North America, which will beyond our control, we experienced another quarter of solid performance recorded across all other parts of our business.

同樣，我們繼續看到我們團隊的出色執行力，拋開我們在北美的收入放緩這一事實（這將超出我們的控制範圍），我們的所有其他業務部門又經歷了一個季度的穩健業績。

We continue to see exciting opportunities and growth potential in the dynamic world of cloud technology and managed services.

我們繼續在雲端技術和託管服務的動態世界中看到令人興奮的機會和成長潛力。

We have made it our vision to help businesses choose the best cloud migration strategy and avoid the pitfalls associated with moving to the cloud.

我們的願景是幫助企業選擇最佳的雲端遷移策略並避免與遷移到雲端相關的陷阱。

We understand that the cloud is not just a technology shift.

我們知道雲端不僅僅是一種技術轉換。

It's a transformative journey that requires expertise, dedication, and innovation.

這是一趟變革之旅，需要專業知識、奉獻精神和創新。

We apply industry-leading best practices to ensure that our clients' cloud deployments meet the highest standards of performance, scalability security and reliability.

我們應用業界領先的最佳實踐，確保客戶的雲端部署滿足效能、可擴展性、安全性和可靠性的最高標準。

Our suite of managed cloud services is designed to address critical aspect of cloud operation and clients' business continuity, enabling our clients to focus on their core competencies.

我們的託管雲端服務套件旨在解決雲端營運和客戶業務連續性的關鍵方面，使我們的客戶能夠專注於其核心競爭力。

While leaving the management and optimization of the cloud and IT systems environment to us.

而雲端和IT系統環境的管理和最佳化則交給我們。

Our services include network as a service software as a service level for the servicing of the service and much more.

我們的服務包括網路即服務軟體即服務等級的服務等等。

What you have Magic apart is its deep domain expertise, the customer centric approach and a proven track record of delivering successful cloud migration and transformation.

Magic 的獨特之處在於其深厚的領域專業知識、以客戶為中心的方法以及成功實現雲端遷移和轉型的良好記錄。

Our team of seasoned professionals, leveraging their expertise across the three major cloud platform AWS, GCP and Azure.

我們的團隊由經驗豐富的專業人士組成，利用他們在三大雲端平台 AWS、GCP 和 Azure 上的專業知識。

And we are well equipped to provide our customers with the optimal solution tailored to their unique needs

我們有能力為客戶提供適合其獨特需求的最佳解決方案

We have over 350 satisfied customers across various industries and geographies will trust us with their cloud journey.

我們擁有超過 350 個來自不同行業和地區的滿意客戶，他們將信任我們的雲端之旅。

We are committed to delivering excellence, innovation and value to our customers, and we are confident that we can help them achieve their cloud goals.

我們致力於為客戶提供卓越、創新和價值，我們有信心幫助他們實現雲端目標。

Lastly, as you know, GenAI is a game changer in the cloud industry and the leading cloud providers, AWS, Azure and GCP are investing heavily in we at Magic and strategically position a position to leverage their solutions and offer them to our customers with our value added services and expertise, more over the cloud vendors are partnering with us to implement the solutions to customers recognizing our full market presence and reputation.

最後，如您所知，GenAI 是雲端產業的遊戲規則改變者，領先的雲端供應商AWS、Azure 和GCP 對Magic 進行了大量投資，並策略性地定位了一個地位，以利用他們的解決方案，並透過我們的解決方案向我們的客戶提供這些解決方案。

Proceeding to address our first quarter financial results in the first quarter of 2024, our revenues in North America amounted to $52.3 million, which is approximately $19.9 million or 27.4% lower compared to Q1 of 2023 and $1.4 million or 2.7% higher compared to Q4 of 2023.

繼續討論2024 年第一季的第一季財務業績，我們在北美的營收達到5,230 萬美元，與2023 年第一季相比減少約1,990 萬美元，即27.4%，與2023 年第四季相比增加140 萬美元，即2.7%。

Revenues in North America accounted this quarter for 40% of our overall quarterly revenues.

本季北美地區的營收占我們季度總營收的 40%。

Revenues from other Israeli operations amounted to $59.2 million, up by 11.1% compared to $53.3 million reported in the same period last year.

以色列其他業務的收入達 5,920 萬美元，比去年同期的 5,330 萬美元成長 11.1%。

The impact of the continued devaluation of the new Israeli shekel versus the US dollar reduced the increase recorded in our dollar reported Israeli market revenues on a constant currency basis, calculated based on average currency exchange rates for the three months ended March 31, 2023, revenues for the first quarter of 2024 Mobile, Israeli operation would have increased by additional $2.1 million year-over-year to $61.3 million, reflecting a year-over-year growth of 15% in real terms.

以色列新謝克爾兌美元持續貶值的影響減少了以美元計價的增長。第一季度，以色列行動業務將年增210 萬美元，達到6,130 萬美元，實際較去年同期成長15%。

These demonstrate our strong performance in the region and reconfirmed our long-term strategic decision to focus on mature, stable and technology-driven sectors, which allowed us to partially compensate for the COVID slowdown we experienced in North America.

這些證明了我們在該地區的強勁表現，並再次確認了我們專注於成熟、穩定和技術驅動型行業的長期戰略決策，這使我們能夠部分彌補北美地區因新冠肺炎疫情造成的經濟放緩。

The revenues from our Israeli operations accounted for 45% of our overall quarterly revenues.

我們以色列業務的收入占我們季度總收入的 45%。

Turning now to profitability.

現在轉向獲利能力。

Despite continued currency headwinds and the slowdown in the US based revenues as of the second half of 2023, we were nevertheless able to increase our gross margin for the first quarter of 2024 by 110 basis points to 29.3% of revenues of $38.3 million compared to 28.2% in the corresponding quarter of 2023, in which it was $40.1 million.

儘管匯率持續不利，且截至2023 年下半年美國營收放緩，但我們仍能將2024 年第一季的毛利率提高110 個基點，達到佔營收3,830 萬美元的29.3%，而同期毛利率為28.2 %。

The breakdown of our revenue mix for the first quarter of 2024 was approximately 19% related to a software solution with a gross margin of approximately 64% and 81% related to our professional services with a gross margin of approximately 21%, same as in 2023 as a whole.

2024 年第一季我們的收入組合細分約為 19% 與軟體解決方案相關，毛利率約為 64%，81% 與我們的專業服務相關，毛利率約為 21%，與 2023 年相同作為一個整體。

The breakdown of our gross profit mix for the for the first quarter was approximately 42% related to our software solutions and 58% related to US professional services, same as in 2023 as a whole.

第一季毛利組合的細目中，約有 42% 與我們的軟體解決方案相關，58% 與美國專業服務相關，與 2023 年整體情況相同。

Our non-GAAP operating income for the first quarter of 2024 fell on an absolute basis, while increasing on a percentage basis compared to the corresponding period of 2023, it was $18.1 million compared to $18.5 million in the same period last year.

我們 2024 年第一季的非 GAAP 營業收入絕對值下降，但與 2023 年同期相比按百分比增長，為 1,810 萬美元，而去年同期為 1,850 萬美元。

This reflects an operating margin of 13.9% for the quarter compared to 13% in the first quarter of 2023 on a constant currency basis, calculated based on average currency exchange rates for the three-month period ended March 31, 2023, non-GAAP operating income for the first quarter of 2024 would have reached $18.5 million, same as it was in the first quarter of 2023.

這反映了本季營業利潤率為13.9%，而以固定匯率計算，2023 年第一季營業利潤率為13%，根據截至2023 年3 月31 日止三個月期間的平均貨幣匯率計算，非公認會計準則營業利潤率2024 年第一季的營收將達到 1,850 萬美元，與 2023 年第一季相同。

Financial expenses during the quarter, we had financial debt interest expenses of $1.5 million related to our $80 million financial debt compared to $0.7 million of interest expenses recorded in the same quarter last year related to a total financial debt of $50 million.

本季的財務費用，我們的金融債務利息支出為 150 萬美元，與 8,000 萬美元的金融債務相關，而去年同期記錄的利息支出為 70 萬美元，與 5,000 萬美元的金融債務總額相關。

The increase in our financial expenses mainly resulted from the increase in our overall debt during 2023 and in our interest rate level as the majority of our debt builds variable interest rates, which have been subject to higher interest rate in Q1 2024 compared to the same period last year.

我們的財務費用增加主要是由於2023年我們的整體債務以及我們的利率水準增加，因為我們的大部分債務採用浮動利率，而2024年第一季的利率較同期更高去年。

Net income attributed to non-controlling interest as our business combination model has often relied on keeping former shareholders in acquired entities as minority stakeholders.

由於我們的業務合併模式通常依賴將被收購實體的前股東保留為少數股東，因此歸屬於非控制權益的淨利。

In addition to the managerial role in such entities, we are allocating a portion of our net income to these minority shareholders.

除了在這些實體中擔任管理角色外，我們還將部分淨利潤分配給這些少數股東。

Non-GAAP net income attributed to non-controlling interest slightly decreased to $1.6 million compared to $1.9 million for the same period last year.

非 GAAP 歸屬於非控制權益的淨利潤從去年同期的 190 萬美元小幅下降至 160 萬美元。

Our non-GAAP net income for the first quarter decreased by 10.4% to $11.3 million or $0.23 per fully diluted share compared to $20.6 million or $0.26 per fully diluted share in the same period last year, mainly resulting from the increase in our financial expenses, resulting from increased level of debt and increased bank interest rates.

我們第一季的非GAAP 淨利潤下降10.4% 至1,130 萬美元，或完全稀釋每股0.23 美元，而去年同期為2,060 萬美元，或完全稀釋每股0.26 美元，這主要是由於我們的財務費用增加，債務水準增加和銀行利率上升所造成的。

Turning now to the balance sheet.

現在轉向資產負債表。

As of March 31, 2023, cash and cash equivalents and short-term bank deposits amounted to approximately $126 million compared to $107 million as of December 2023.

截至 2023 年 3 月 31 日，現金及現金等價物以及短期銀行存款約為 1.26 億美元，而截至 2023 年 12 月為 1.07 億美元。

Our total financial debt as of March 31, 2024, amounted to $78 million compared to $81 million out of as of December of 2023.

截至 2024 年 3 月 31 日，我們的財務債務總額為 7,800 萬美元，而截至 2023 年 12 月，我們的財務債務總額為 8,100 萬美元。

Our cash flow from operating activities was $27.7 million during the first quarter of 2024 compared to $18.8 million in the same period of 2023 and $12.4 million in the fourth quarter of 2023.

2024 年第一季我們的經營活動現金流量為 2,770 萬美元，而 2023 年同期為 1,880 萬美元，2023 年第四季為 1,240 萬美元。

In our press release issued today, we announced that magic Board of Directors has declared a semi-annual cash dividend in the amount of $0.204 per share in the aggregate amount of approximately $10 million, reflecting approximately 70% of our net income for the second half of 2023.

在今天發布的新聞稿中，我們宣布，Magic 董事會已宣布派發半年度現金股息，每股 0.204 美元，總額約 1000 萬美元，約占我們下半年淨利潤的 70% 2023 年。

The dividend will be paid on July 11, 2024, to shareholders of record as of June 27, 2024.

該股將於2024年7月11日支付給截至2024年6月27日在冊的股東。

Finally, today, we are reiterating our 2024 guidance.

最後，今天，我們重申 2024 年的指導方針。

We expect 2024 full-year revenue in the range of $540 million to $550 million.

我們預計 2024 年全年營收將在 5.4 億美元至 5.5 億美元之間。

I will now turn the call over to the operator for questions.

我現在將把電話轉給接線員詢問問題。

Thank you.

謝謝。

Ladies and gentlemen, at this time we will begin the question-and-answer session.

女士們、先生們，現在我們將開始問答環節。

(Operator Instructions)

（操作員說明）

Maggie Nolan, William Blair.

瑪吉諾蘭、威廉布萊爾。

Please go ahead.

請繼續。

This is Jesse on for Maggie Nolan, and thanks for taking our questions.

我是傑西為瑪吉諾蘭發言，感謝您回答我們的問題。

We had a few for you today.

今天我們為您準備了一些。

So first to start, could you talk about how this quarter compared to your expectations?

首先，您能談談本季與您的預期相比如何嗎？

And what gives you guide on what gives you confidence in achieving full year guidance?

是什麼給您提供了指導，讓您有信心實現全年指導？

I think that first of all, yes, it's met.

我認為首先，是的，它已經滿足了。

Our expectation is we need to remember that still, although it's on a reduced level, we still have around 70 people at the highest level.

我們的期望是，我們需要記住，儘管人數有所減少，但我們仍然擁有大約 70 名最高級別的人員。

It was 200 people back in October, November and now it went down in December to around 120 and 70 people that are still on reserve duties on we saw, except for I would say, if we compare it to last year, except for the US market, though we saw improvement compared to Q4.

10 月、11 月時有 200 人，現在 12 月下降到 120 至 70 人左右，我們看到，他們仍在履行預備役義務，但我想說的是，如果我們與去年相比，美國除外市場，儘管與第四季度相比我們看到了改善。

We in the Israeli market, we see a significant improvement in continued improvement.

我們在以色列市場，我們看到了持續改善的顯著改善。

We also saw that in 2023, 15% on a constant currency basis year-over-year.

我們也看到，到 2023 年，以固定匯率計算，年增 15%。

We see our backlog, which is increasing on we see strong demand for our services and good execution by our by our team.

我們看到我們的積壓訂單不斷增加，因為我們看到對我們服務的強勁需求以及我們團隊的良好執行力。

And with that, we feel confident that we meet that we will meet the guidance that we provided for 2024.

因此，我們有信心實現為 2024 年提供的指導。

We also mentioned that we expect 2024 to act as that in a way that the second half would be much stronger than the first half and 80% of the growth will come from the second during the second half rather than from the first half.

我們也提到，我們預計2024年下半年將比上半年強勁得多，80%的成長將來自下半年而不是上半年。

So this is something that we communicated also in prior calls.

所以這也是我們在之前的電話中傳達的內容。

That's great.

那太棒了。

And then one of my follow-up questions was on the execution you're seeing or could you elaborate on just the execution you're seeing?

然後我的後續問題之一是關於您所看到的執行，或者您是否可以詳細說明您所看到的執行？

Is there anything going on in the sales or delivery organization that you're are part of?

您所在的銷售或交付組織中是否發生了任何事情？

I think that basically single spin-offs are working in plan.

我認為基本上單一的衍生產品正在按計劃進行。

And again, we did some adjustment in the US, the operations, of course, because of the situations that we currently face with our customers on.

當然，由於我們目前與客戶面臨的情況，我們在美國的營運方面做了一些調整。

But in the Israeli market, of course, we push on sales and we see the curve and we see the contribution and the return on our investment in terms of the revenues that we that we that we record and that we do and then that we explain to you about.

但當然，在以色列市場，我們推動銷售，我們看到曲線，我們看到我們的投資貢獻和回報，即我們記錄和所做的收入，然後我們解釋給你關於。

Okay.

好的。

That makes sense to me.

這對我來說很有意義。

And then the last one we had we saw one of your subsidiaries acquired a staffing and technology services firm based in the United States back in April.

最後一次我們看到你們的一家子公司在四月收購了一家位於美國的人力資源和技術服務公司。

Can you talk about the strategic decision behind the acquisition, do you think you'll continue pivoting the business to more of a services company than a software company?

您能談談收購背後的策略決策嗎？

I don't think it's a question of pivoting in the way that you know that the equivalent in Iran is the current state of the business.

我不認為這是一個以你知道的方式轉變的問題，伊朗的情況就是目前的業務狀況。

We have 80% of our operations, which are mainly services and 20% of the business, which is relying on mostly our technology, a proprietary technology.

我們80%的業務主要是服務，20%的業務主要依賴我們的技術，即專有技術。

So this is not something that you know that we call that now we are pivoting towards services.

所以這不是你知道的，我們稱之為現在我們正在轉向服務。

In the US market, if you look back, you would see that, you know, we traditionally did the acquisitions there and mostly in the staffing area, we are acquiring market share.

在美國市場，如果你回顧過去，你會發現，你知道，我們傳統上在那裡進行收購，主要是在人員配置領域，我們正在獲取市場份額。

These are companies that for us, it's the same, very easily to a similar group with our current operations and we manage once we buy them, we managed to improve them in terms of the margins and we managed to push the business forward with the depends in the regions that we are weighing, but the but enhancing, let's say, the clients there and enhancing the automation.

這些公司對我們來說，與我們目前運營的類似集團是一樣的，非常容易，一旦我們收購它們，我們就可以管理它們，我們設法提高它們的利潤率，並且我們成功地推動業務向前發展在我們正在權衡的地區，但是正在增強，比如說，那裡的客戶並增強了自動化。

So this is something that we would that we normally do, and we intend to continue in doing and hopefully with the situation today, the macroeconomic situation in the US, perhaps we will find additional opportunities and continue to even, you know, by more as the time progress.

因此，這是我們通常會做的事情，我們打算繼續這樣做，希望根據今天的情況，美國的宏觀經濟形勢，也許我們會找到更多機會，甚至繼續，你知道，透過更多時間進度。

But this is, you know, very depends on the situation.

但很大程度取決於具體情況。

Awesome.

驚人的。

Thanks for taking our questions.

感謝您回答我們的問題。

Chris Reimer, Barclays.

克里斯·雷默，巴克萊銀行。

Please go ahead.

請繼續。

Hi.

你好。

Thanks for taking my questions.

感謝您回答我的問題。

Glad to see the reiteration of the year-end guidance.

很高興看到年終指引的重申。

I was wondering if you could give any color on the pipeline and maybe where you're seeing strengths.

我想知道您是否可以對管道進行任何顏色說明，也許您在哪裡看到了優勢。

And then just touching on the US customers, who reduced on their interactions with you over the last year.

然後談談美國客戶，他們在去年減少了與您的互動。

Do you see them coming back to the table at some point?

你認為他們會在某個時候回到談判桌嗎？

Are there ongoing discussions?

是否正在進行討論？

Just any color on that would be great.

只要有任何顏色就會很棒。

Thanks

謝謝

Okay.

好的。

So I'll relate first to the strong demand that we see here in the Israeli operation and in Europe.

因此，我首先要談談我們在以色列和歐洲的業務中看到的強勁需求。

And definitely we see a lot of traction around the area backlog there on the defense, all digital areas know it's all growing and we see a strong demand.

當然，我們看到防守方面積壓的地區有很多吸引力，所有數位領域都知道這一切都在成長，我們看到了強勁的需求。

And for the US customers, we usually work with, I would call them probably Fortune 1,000 in the US due to the interest level, some were beginning of last year.

對於我們通常合作的美國客戶，由於興趣水平，我可能稱他們為美國財富 1,000 強，其中一些是去年年初的。

They stopped many of the projects.

他們停止了許多項目。

I think now we saw that it was stabilized and are starting to hire again, they are way more cautious.

我想現在我們看到它已經穩定下來並開始再次招聘，他們更加謹慎了。

So as long as the interest is high, that we're more cautious by the way on the small businesses that we work with now, we do see a strong demand on the bigger ones.

因此，只要興趣很高，我們對現在合作的小企業就會更加謹慎，我們確實會看到對大企業的強勁需求。

I think it will take a bit of time.

我認為這需要一些時間。

But all in all, it's the reduction in force has stopped and they started to hire, but not at the same scale that we were used to.

但總而言之，兵力的減少已經停止，他們開始招聘，但規模與我們習慣的不同。

Got it.

知道了。

And then just touching on your AI strategy, you mentioned the partnerships with the large cloud vendors.

然後在談到您的人工智慧策略時，您提到了與大型雲端供應商的合作夥伴關係。

Can you just give some color on where you are, where are you seeing AI touch the business and some potential use cases that come out of that.

您能否簡單說明您所處的位置、您在哪些方面看到人工智慧對業務的影響以及由此產生的一些潛在用例。

Okay.

好的。

We see the strong change in the GenAI area.

我們看到 GenAI 領域發生了巨大的變化。

I think there is the concept of GenAI.

我認為有GenAI的概念。

I brought a big change to the enterprise customers and to the industry with the fact that we can actually bring a business value using this type of solution.

我為企業客戶和產業帶來了巨大的改變，因為我們實際上可以使用這種類型的解決方案帶來商業價值。

Okay.

好的。

It's no longer like it's a long journey with the hoping will for resolve.

這不再是一場充滿希望的長途旅行。

This is a short journey with a weak evidence of results, maybe even a failure, but then are getting up again and jumping on the on the next iteration.

這是一個短暫的旅程，結果證據薄弱，甚至可能失敗，但隨後會再次站起來，繼續下一次迭代。

And we have the partnership with AWS, Azure and GCP on that and we implement some of our technology in combination with third technology, taking it into our customers since most of our business or a lot of our business is evolving around the data and organizational data.

我們在這方面與AWS、Azure 和GCP 建立了合作夥伴關係，我們將一些技術與第三方技術結合實施，並將其引入我們的客戶，因為我們的大部分業務或許多業務都是圍繞數據和組織數據發展的。

And since we are coming with customers that have data on-prem and are moving to the cloud.

由於我們的客戶擁有本地資料並正在遷移到雲端。

All this combination is putting us in the perfect place of actually bringing value to our customers in all different areas of--in the cloud or on-prem on their data or the cloud data.

所有這些組合使我們處於一個完美的位置，可以為我們的所有不同領域的客戶帶來價值——在雲端或本地數據或雲端數據上。

So we see it very fast happening.

所以我們看到它發生得非常快。

Got it, thanks.

知道了謝謝。

That's it for me.

對我來說就是這樣。

(Operator Instructions)

（操作員說明）

There are no further questions at this time.

目前沒有其他問題。

Mr. Bernstein, would you like to make your concluding statements.

伯恩斯坦先生，請您做一下總結發言。

Thank you, everyone, for joining the call, and I'm glad that we start to see the positive shift again in our business.

謝謝大家加入電話會議，我很高興我們的業務再次開始出現正面的轉變。

And hopefully, we'll be able to bring some good news in the near future.

希望我們能夠在不久的將來帶來一些好消息。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes the Magic Software Enterprises Ltd., 2024 first quarter results conference call.

Magic Software Enterprises Ltd. 2024 年第一季業績電話會議至此結束。

Thank you for your participation.

感謝您的參與。

You may go ahead and disconnect.

您可以繼續並斷開連線。