Model N Inc (MODN) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to Model N's Second Quarter of Fiscal 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

下午好，歡迎來到 Model N 的 2023 財年第二季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。

With that, I would now like to turn the call over to Carolyn Bass, Investor Relations. Thank you.

有了這個，我現在想把電話轉給投資者關係部的 Carolyn Bass。謝謝。

Good afternoon. Welcome to Model N's Second Quarter and Fiscal 2023 Earnings Call. This is Carolyn Bass, Investor Relations for Model N. With me on the call today are Jason Blessing, Model N's Chief Executive Officer; and John Ederer, Chief Financial Officer. Our earnings press release was issued at the close of market today and is posted on our website. The primary purpose of today's call is to provide you with information regarding our second quarter of fiscal 2023 performance and offer a financial outlook for our third quarter and fiscal year ending September 30, 2023.

下午好。歡迎來到 Model N 的第二季度和 2023 財年收益電話會議。我是 Model N 投資者關係部門的 Carolyn Bass。今天和我一起打電話的還有 Model N 的首席執行官 Jason Blessing；首席財務官 John Ederer。我們的收益新聞稿於今天收盤時發布，並發佈在我們的網站上。今天電話會議的主要目的是向您提供有關我們 2023 財年第二季度業績的信息，並提供我們截至 2023 年 9 月 30 日的第三季度和財年的財務展望。

The commentary made on this call may include forward-looking statements. These forward-looking statements are based on management's current views and expectations as of today and should not be relied upon as representing our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. Actual results may differ materially. Please refer to the risk factors in our most recent Form 10-Q filed with the SEC.

對此次電話會議的評論可能包含前瞻性陳述。這些前瞻性陳述基於管理層截至今天的當前觀點和預期，不應被視為代表我們在任何後續日期的觀點。我們不承擔任何更新任何前瞻性陳述或展望的義務。實際結果可能存在重大差異。請參閱我們最近向美國證券交易委員會提交的 10-Q 表格中的風險因素。

In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, GAAP results. Reconciliations of the non-GAAP metrics to the nearest GAAP metrics are included in the earnings press release issued today, which is available on our website.

此外，在今天的電話會議中，我們將討論非 GAAP 財務措施。這些非 GAAP 財務措施應作為 GAAP 結果的補充，而不是替代或孤立於 GAAP 結果。非 GAAP 指標與最接近的 GAAP 指標的對賬包含在今天發布的收益新聞稿中，可在我們的網站上獲取。

I encourage you to visit our Investor Relations website at investor.modeln.com in order to access our second quarter fiscal 2023 press release, periodic SEC reports and the webcast replay of this call. Finally, unless otherwise stated, all financial comparisons in this call will be to our fiscal year 2022 results.

我鼓勵您訪問我們的投資者關係網站 investor.modeln.com，以訪問我們的 2023 財年第二季度新聞稿、SEC 定期報告和本次電話會議的網絡直播重播。最後，除非另有說明，否則本次電話會議中的所有財務比較都將針對我們 2022 財年的結果。

And with that, let me turn the call over to Jason.

有了這個，讓我把電話轉給傑森。

Thank you, Carolyn, and welcome to our call today. I am pleased to report that our second quarter results beat expectations across the board. We exceeded guidance for total revenue, subscription revenue and professional services revenue. This was another strong quarter and underscores our commitment to driving profitable growth. Our Q2 SaaS metrics were also strong, driven by SaaS ARR, which grew by 40% year-over-year. In addition, our SaaS net dollar retention accelerated to 138% year-over-year. I am very proud of our team and the business model transformation that we are driving, especially in a difficult macro environment.

謝謝您，Carolyn，歡迎您今天來電。我很高興地報告，我們第二季度的業績全面超出預期。我們超出了總收入、訂閱收入和專業服務收入的指導。這是又一個強勁的季度，凸顯了我們推動盈利增長的承諾。在 SaaS ARR 的推動下，我們第二季度的 SaaS 指標也很強勁，同比增長 40%。此外，我們的 SaaS 淨美元保留率同比增長 138%。我為我們的團隊和我們正在推動的商業模式轉型感到非常自豪，尤其是在困難的宏觀環境中。

Given this, I am often asked about the impact of the macro on our business, so I would like to proactively address this question. First, we serve 2 resilient end markets with secular tailwinds, and Life Sciences in particular is a naturally defensive vertical in times of macro uncertainty. Second, we believe that companies in both verticals that we serve are prioritizing IT investments that deliver tangible ROI and help companies respond to dynamic operating environments, both of which played to Model N's core value proposition. That said, during the quarter, we did see some customers applying more scrutiny to incremental spend, and in some cases, additional approvals were required to get deals done.

鑑於此，我經常被問到宏觀對我們業務的影響，所以我想積極回答這個問題。首先，我們服務於 2 個具有長期順風的彈性終端市場，特別是生命科學是宏觀不確定時期自然防禦的垂直市場。其次，我們相信，我們所服務的兩個垂直領域的公司都在優先考慮 IT 投資，以提供切實的投資回報率並幫助公司應對動態的運營環境，這兩者都符合 Model N 的核心價值主張。也就是說，在本季度，我們確實看到一些客戶對增量支出進行了更多審查，在某些情況下，需要額外批准才能完成交易。

Despite the challenging macro, our financial performance this quarter highlights our ability to execute while also delivering further margin expansion with adjusted EBITDA growing 39% year-over-year. We remain focused on finishing our business model transition and driving long-term profitable growth. In fact, several of our newer solutions are resonating now more than ever given the focus on profitability and increasing complexity of pharma regulations.

儘管宏觀環境充滿挑戰，但我們本季度的財務業績凸顯了我們的執行能力，同時還進一步擴大了利潤率，調整後的 EBITDA 同比增長 39%。我們仍然專注於完成我們的商業模式轉型並推動長期盈利增長。事實上，鑑於對盈利能力的關注和製藥法規日益複雜，我們的幾個新解決方案現在比以往任何時候都更能引起共鳴。

Next, I'd like to share some of the business highlights from the quarter. Success in Q2 was driven by a healthy contribution from all areas of the business. We signed new deals, closed another large SaaS transition, saw numerous customer expansions, and we also enjoyed solid renewals.

接下來，我想分享本季度的一些業務亮點。第二季度的成功得益於業務各個領域的健康貢獻。我們簽署了新交易，完成了另一項大型 SaaS 轉型，見證了眾多客戶的擴張，並且我們也享受到了穩定的續約。

Starting with SaaS transitions. During the quarter, we signed Takeda, the largest pharmaceutical company in Asia and one of the top 20 largest pharma companies in the world. Takeda's decision to move to our SaaS solution was based on several factors, including the following: lower total cost of ownership; access to our automated testing suite, which helps customers validate a new Model N release; new regulatory updates, including those to support compliance with the Inflation Reduction Act; and access to over 30 new features that will drive immediate business improvements for Takeda. Takeda is the latest example of a longtime customer that sees value in our cloud offering and is renewing their partnership with Model N to help them maintain commercial and regulatory compliance in an increasingly complex operational environment.

從 SaaS 過渡開始。在本季度，我們與亞洲最大的製藥公司和全球前 20 大製藥公司之一的武田簽約。武田決定轉向我們的 SaaS 解決方案是基於幾個因素，包括：降低總體擁有成本；訪問我們的自動化測試套件，幫助客戶驗證新的 Model N 版本；新的法規更新，包括那些支持遵守《降低通貨膨脹法》的法規；並訪問 30 多項新功能，這些功能將推動 Takeda 的即時業務改進。武田是長期客戶的最新例子，他們看到了我們雲產品的價值，並正在更新與 Model N 的合作夥伴關係，以幫助他們在日益複雜的運營環境中保持商業和法規合規性。

During Q2, we also expanded our footprint at Amneal Pharmaceuticals, a global company that provides a broad portfolio of generic and specialty pharmaceuticals that make healthy possible. Amneal recently acquired AvKARE to boost its generic business in the U.S. As a part of the team's operational efficiency initiative, Amneal deployed Model N to support the revenue management needs of AvKARE. This is the latest example of how Model N helps our customers execute on their business objectives, in this case, strategic M&A. During the quarter, we also signed several meaningful expansion deals, including at strategic customers such as Novo Nordisk, J&J and BMS.

在第二季度，我們還擴大了 Amneal Pharmaceuticals 的足跡，Amneal Pharmaceuticals 是一家全球性公司，提供廣泛的仿製藥和特種藥物組合，使健康成為可能。 Amneal 最近收購了 AvKARE 以提升其在美國的仿製藥業務。作為團隊運營效率計劃的一部分，Amneal 部署了 Model N 來支持 AvKARE 的收入管理需求。這是 Model N 如何幫助我們的客戶執行其業務目標（在本例中為戰略併購）的最新示例。在本季度，我們還簽署了幾項有意義的擴張交易，包括與諾和諾德、強生和 BMS 等戰略客戶的交易。

Turning to Business Services. We expanded our relationship during the quarter with an existing customer, who is also a leading vaccine provider, to support their new go-to-market partnership with a top 10 global pharma company. These 2 companies required a solution that could be quickly deployed to validate membership eligibility for a new product launch. Model N worked closely with both companies to design the solution, leveraging Model N's Business Services to support the integrated business process between the 2 companies. Our ability to work quickly with these customers in a creative way, leveraging our broad portfolio of solutions, demonstrates our ability to meet virtually any pharma revenue management use case.

轉向商業服務。我們在本季度擴大了與一位現有客戶的關係，該客戶也是一家領先的疫苗供應商，以支持他們與一家全球十大製藥公司的新上市合作夥伴關係。這兩家公司需要一種可以快速部署的解決方案，以驗證新產品發布的會員資格。 Model N 與兩家公司密切合作設計解決方案，利用 Model N 的業務服務支持兩家公司之間的集成業務流程。我們能夠利用我們廣泛的解決方案組合，以創造性的方式與這些客戶快速合作，這表明我們有能力滿足幾乎任何製藥收入管理用例。

Turning to High Tech. In Q2, we signed a new logo, u-blox, which is a Swiss-based fabless semiconductor company that develops some of the world's leading IoT and satellite communication modules to support the industrial, automotive and consumer markets. u-blox is transitioning from a direct sales model to a channel sales network and needed a solution to enable them to manage their tremendous distribution partner growth. u-blox selected Model N for our industry-leading technology and expertise in delivering comprehensive deal and channel management solutions. With Model N, u-blox will be able to easily analyze key data sets like point-of-sale information so they can make more informed decisions on how to profitably manage their channel distribution business.

轉向高科技。在第二季度，我們使用了新標識 u-blox，這是一家總部位於瑞士的無晶圓廠半導體公司，開發了一些世界領先的物聯網和衛星通信模塊，以支持工業、汽車和消費市場。 u-blox 正在從直銷模式過渡到渠道銷售網絡，需要一個解決方案來幫助他們管理分銷合作夥伴的巨大增長。 u-blox 選擇 Model N 是因為我們在提供綜合交易和渠道管理解決方案方面擁有行業領先的技術和專業知識。借助 Model N，u-blox 將能夠輕鬆分析銷售點信息等關鍵數據集，以便他們能夠就如何盈利地管理其渠道分銷業務做出更明智的決策。

We also had several High Tech expansions in Q2. One example is at Micro Commercial Components, or MCC, which produces high-quality semiconductors for the consumer and industrial markets. MCC expanded their product footprint by adding channel data management to support the growing demand of their various sales channels. We also expanded our relationship with Nexperia, AMD and other High Tech customers in the quarter.

我們在第二季度也進行了幾次高科技擴張。一個例子是 Micro Commercial Components，即 MCC，該公司為消費和工業市場生產高質量的半導體。 MCC 通過添加渠道數據管理來支持其各種銷售渠道不斷增長的需求，從而擴展了他們的產品足跡。本季度我們還擴大了與 Nexperia、AMD 和其他高科技客戶的關係。

Turning to professional services. Our team exceeded expectations with a very strong quarter. The results of our professional services organization symbolized the strong demand for our mission-critical high-ROI solution, especially in the current macro environment as companies seek to drive bottom line improvement. Our professional services team continues to do a terrific job of getting new customers live on time and on budget. And 2 of the latest examples are Abbott Diagnostics and Edwards Lifesciences.

轉向專業服務。我們的團隊以非常強勁的季度表現超出預期。我們的專業服務組織的結果表明對我們的任務關鍵型高投資回報率解決方案的強烈需求，尤其是在當前的宏觀環境中，因為公司正在尋求提高利潤。我們的專業服務團隊繼續出色地讓新客戶按時按預算入住。最新的兩個例子是 Abbott Diagnostics 和 Edwards Lifesciences。

Abbott Diagnostics is one of the early adopters of Model N in the med tech industry. This division of Abbott delivers diagnostic tests that are designed to increase accuracy and drive operational efficiencies. And if you've ever used a home COVID test over the last couple of years, it was most likely manufactured by Abbott. Abbott went live on our cloud platform, allowing their users across 9 countries to work from a centralized state-of-the-art revenue management platform. This project allowed Abbott to standardize their contracting approach, retire multiple customizations and dramatically increase system performance. Congratulations to Abbott and our professional services team on another critical milestone as we move all of our customers to the cloud.

Abbott Diagnostics 是醫療技術行業 Model N 的早期採用者之一。雅培的這個部門提供旨在提高準確性和提高運營效率的診斷測試。如果您在過去幾年中曾經使用過家庭 COVID 測試，那麼它很可能是由 Abbott 製造的。雅培在我們的雲平台上線，讓他們在 9 個國家/地區的用戶可以在一個集中的最先進的收入管理平台上工作。該項目使 Abbott 能夠標準化他們的合同方法，取消多項定制並顯著提高系統性能。祝賀雅培和我們的專業服務團隊在我們將所有客戶遷移到雲端時取得了另一個重要里程碑。

Another important go-live in the quarter was at Edwards Lifesciences, a med tech company that specializes in artificial heart valves and other offerings to improve cardiovascular health. Edwards also went live on time and on budget and is taking advantage of several new enhancements to our product to enable them to more efficiently run their business and get their life-changing products to the world.

本季度另一個重要的項目是 Edwards Lifesciences，這是一家醫療技術公司，專門從事人造心臟瓣膜和其他改善心血管健康的產品。 Edwards 還按時按預算上線，並利用我們產品的幾項新增強功能，使他們能夠更有效地開展業務，並將改變生活的產品推向世界。

With an eye towards future growth, we also continue to cultivate a partner ecosystem around Model N. A recent example of this is the new strategic partnership with Impartner, a leading provider of channel management technologies in the High Tech vertical. Under the terms of this new agreement, Model N and Impartner will bring to market an integrated offering of Model N's current channel products with Impartner's partner relationship management and partner marketing automation solutions. This will enable high-tech companies to manage their partner relationships and accelerate revenue and profitability through their indirect sales channel.

著眼於未來的增長，我們還繼續圍繞 Model N 培養合作夥伴生態系統。最近的一個例子是與 Impartner 的新戰略合作夥伴關係，Impartner 是高科技垂直領域的領先渠道管理技術提供商。根據這項新協議的條款，Model N 和 Impartner 將向市場推出 Model N 當前渠道產品與 Impartner 的合作夥伴關係管理和合作夥伴營銷自動化解決方案的集成產品。這將使高科技公司能夠管理他們的合作夥伴關係，並通過他們的間接銷售渠道加速收入和盈利能力。

Also during Q2, a new study by Forrester Consulting revealed how improved channel data management leads to better collaboration and bottom line results. This study identified the need for improved channel data management solutions and highlights the importance of optimizing channel revenue within the semiconductor and electronic component manufacturing industries. Accurate channel revenue data is no longer a nice-to-have but instead is a strategic imperative in today's economic climate. Successfully leveraging channel data management solutions enables suppliers to make informed decisions on partnerships, hiring, operations and more, which leads to higher productivity, profitability and overall business performance. I encourage you to download this study from our website.

同樣在第二季度，Forrester Consulting 的一項新研究揭示了改進渠道數據管理如何帶來更好的協作和底線結果。該研究確定了改進渠道數據管理解決方案的必要性，並強調了優化半導體和電子元件製造行業渠道收入的重要性。準確的渠道收入數據不再是錦上添花，而是當今經濟形勢下的戰略要務。成功利用渠道數據管理解決方案使供應商能夠在合作夥伴關係、招聘、運營等方面做出明智的決策，從而提高生產力、盈利能力和整體業務績效。我鼓勵您從我們的網站下載這項研究。

Finally, in June, we will be holding Rainmaker, our 19th annual customer conference. I am excited to announce that this year's event will be held in Nashville. Rainmaker is a great thought leadership event and educational conference focused on Life Sciences and High Tech and will bring together hundreds of executives and industry experts from around the world. I am looking forward to the event and especially looking forward to being back together in person with our customers and partners.

最後，我們將在 6 月舉行第 19 屆年度客戶大會 Rainmaker。我很高興地宣布，今年的活動將在納什維爾舉行。 Rainmaker 是一場專注於生命科學和高科技的偉大思想領袖活動和教育會議，將匯集來自世界各地的數百名高管和行業專家。我很期待這次活動，尤其期待與我們的客戶和合作夥伴再次見面。

Let me conclude by saying that I'm pleased with our continued execution in an uncertain macro environment. Our team takes our DARE core values very seriously, which stands for Dream, Align, Respect and Excel. These values embrace building an inclusive workplace and a maniacal focus on customer success. Our reported Q2 results reflect this passion. And as we look ahead to the second half of the year, we will continue building a great company, delivering value to our customers, all while driving growth and improving profitability.

最後讓我說，我很高興我們在不確定的宏觀環境中繼續執行。我們的團隊非常重視我們的 DARE 核心價值觀，它代表夢想、對齊、尊重和超越。這些價值觀包括建立一個包容的工作場所和對客戶成功的瘋狂關注。我們報告的第二季度業績反映了這種熱情。展望下半年，我們將繼續打造一家偉大的公司，為客戶創造價值，同時推動增長並提高盈利能力。

With that, I'll turn the call over to John to discuss our Q2 financial results and provide guidance for the second half of the year. John?

有了這個，我會把電話轉給約翰討論我們第二季度的財務業績並為下半年提供指導。約翰？

Thank you, Jason, and good afternoon to everyone on the call today. As Jason noted, we delivered very solid Q2 results that exceeded all of our guidance metrics. And I was particularly pleased by our profit performance as adjusted EBITDA grew 39% versus Q2 last year. The transformation of our business to a SaaS model has been the key driver of our overperformance on both the top and bottom line. We posted very strong SaaS ARR and SaaS net retention metrics again this quarter, and growth in SaaS revenue is now overcoming the declines in our maintenance stream to drive our overall subscription revenue higher.

謝謝你，傑森，今天在電話中的每個人下午好。正如 Jason 指出的那樣，我們交付了非常可靠的第二季度業績，超出了我們所有的指導指標。我對我們的利潤表現感到特別滿意，因為調整後的 EBITDA 比去年第二季度增長了 39%。將我們的業務轉變為 SaaS 模式一直是我們超額業績的關鍵驅動力。本季度我們再次發布了非常強勁的 SaaS ARR 和 SaaS 淨保留指標，SaaS 收入的增長現在正在克服維護流的下降，從而推動我們的整體訂閱收入更高。

Looking specifically at our financial results for the second quarter. Total revenue grew 18% to $62.6 million, which exceeded the top end of our guidance. Subscription revenue increased by 17% to $44.9 million and also exceeded the upper end of our guidance range. Lastly, professional services revenue grew by 18% to $17.7 million, which was well above the high end of our guidance as the team ran at a much higher-than-expected utilization rate.

特別關注我們第二季度的財務業績。總收入增長 18% 至 6,260 萬美元，超出了我們指引的上限。訂閱收入增長 17% 至 4,490 萬美元，也超過了我們指導範圍的上限。最後，專業服務收入增長 18% 至 1,770 萬美元，遠高於我們指導的上限，因為團隊的利用率遠高於預期。

In terms of our profitability, please keep in mind that we'll be discussing non-GAAP numbers, and a full reconciliation of our results is provided in our earnings release. For the second quarter, total non-GAAP gross profit was $37.8 million, representing a gross margin of 60.3% versus 59.8% in Q2 last year, an improvement of 52 basis points. Non-GAAP subscription gross margin was 68% compared to 66.8% in Q2 of the prior year as SaaS revenue increased as a percentage of total subscription revenue. Non-GAAP professional services gross margin was 41% compared to 42% in Q2 last year. The higher-than-expected utilization in Q2 also drove overperformance on professional services margin. Looking ahead, we still expect professional service margins to normalize over the second half of the year and be in the mid- to high 30s range.

就我們的盈利能力而言，請記住我們將討論非 GAAP 數據，我們的收益發布中提供了我們結果的完整對賬。第二季度，非美國通用會計準則毛利潤總額為 3780 萬美元，毛利率為 60.3%，而去年第二季度為 59.8%，提高了 52 個基點。非 GAAP 訂閱毛利率為 68%，而去年第二季度為 66.8%，因為 SaaS 收入佔總訂閱收入的百分比有所增加。非 GAAP 專業服務毛利率為 41%，而去年第二季度為 42%。第二季度高於預期的利用率也推動了專業服務利潤率的超常表現。展望未來，我們仍然預計專業服務利潤率將在下半年恢復正常，並處於 30 多歲的中高水平。

Adjusted EBITDA for the quarter was $9.2 million, an increase of 39% from the second quarter of fiscal 2022 and well ahead of our guidance range. Adjusted EBITDA margin improved to 14.7% compared to 12.4% for the second quarter last year. Finally, non-GAAP net income was $8.6 million, an increase of 71% from Q2 of last year. And non-GAAP earnings per share was $0.22, which was $0.04 above the high end of our guidance.

本季度調整後的 EBITDA 為 920 萬美元，比 2022 財年第二季度增長 39%，遠高於我們的指導範圍。調整後的 EBITDA 利潤率從去年第二季度的 12.4% 提高到 14.7%。最後，非 GAAP 淨收入為 860 萬美元，比去年第二季度增長 71%。非 GAAP 每股收益為 0.22 美元，比我們指導的上限高出 0.04 美元。

As I mentioned earlier, our SaaS business is hitting critical mass and starting to drive our overall results. For Q2, our SaaS ARR reached $125.8 million, which was an increase of $35.9 million or 40% versus Q2 of last year. In addition, trailing 12-month SaaS net retention hit 138% in Q2, reflecting our ability to successfully cross-sell and upsell customers. Over the last year, our SaaS ARR growth rate has been accelerating from 17% in Q2 a year ago to 40% this quarter as we've been benefiting from SaaS transition activity. The cross-sell and upsell activity that occurs around SaaS transitions has also boosted our net retention number, and we have seen a similar acceleration of that metric over the last year.

正如我之前提到的，我們的 SaaS 業務正在達到臨界點並開始推動我們的整體業績。對於第二季度，我們的 SaaS ARR 達到 1.258 億美元，比去年第二季度增加 3590 萬美元或 40%。此外，過去 12 個月的 SaaS 淨保留率在第二季度達到 138%，反映出我們成功交叉銷售和追加銷售客戶的能力。去年，我們的 SaaS ARR 增長率從一年前第二季度的 17% 加速到本季度的 40%，因為我們一直受益於 SaaS 轉型活動。圍繞 SaaS 過渡發生的交叉銷售和追加銷售活動也提高了我們的淨保留數量，並且我們看到該指標在去年出現了類似的加速。

As we've noted on our last couple of earnings calls, SaaS revenue is increasing as a proportion of our total subscription revenue, and that trend continued in Q2 with SaaS revenue representing 69% of our total subscription revenue as compared to 66% in Q1 and 60% for fiscal 2022. This mix shift is benefiting our overall subscription growth rate as well as our subscription gross margin.

正如我們在最近幾次財報電話會議上指出的那樣，SaaS 收入占我們總訂閱收入的比例正在增加，並且這種趨勢在第二季度繼續，SaaS 收入占我們總訂閱收入的 69%，而第一季度為 66% 2022 財年為 60%。這種組合轉變有利於我們的整體訂閱增長率和訂閱毛利率。

In terms of the balance sheet, we ended the second quarter with $270.6 million in cash and equivalents, which was up $95.4 million from Q1. During the quarter, we added $80.3 million in net proceeds from the refinancing of our convertible debt, and we also generated $12.1 million in cash flow from operations. Accounts receivable increased to $76 million, which was up $9.9 million sequentially versus Q1. The increase in accounts receivable was due to record-high invoicing as anniversary billings for several large SaaS transitions occurred during the quarter.

在資產負債表方面，我們在第二季度結束時擁有 2.706 億美元的現金和等價物，比第一季度增加了 9540 萬美元。本季度，我們通過可轉換債務的再融資增加了 8030 萬美元的淨收益，我們還從運營中產生了 1210 萬美元的現金流。應收賬款增至 7600 萬美元，較第一季度增加 990 萬美元。應收賬款的增加是由於本季度發生了幾個大型 SaaS 過渡的周年賬單，因此發票開具了創紀錄的高位。

Current deferred revenue of $70.8 million was up $3.7 million sequentially versus Q1 and up $13.3 million versus last year. At a high level, we've been seeing increases in SaaS deferred revenue, partially offset by declines in maintenance deferred revenue.

當前遞延收入為 7080 萬美元，比第一季度增加 370 萬美元，比去年增加 1330 萬美元。在較高的層面上，我們一直看到 SaaS 遞延收入的增加，部分被維護遞延收入的下降所抵消。

In addition to deferred revenue, we also focus on RPO, or remaining performance obligations, as an indicator of the future predictability of our business. For Q2, our total RPO was $338.4 million, which was up 19% on a year-over-year basis. The current portion of our RPO balance was up to $146.1 million, representing growth of 18% year-over-year. While the growth in our current RPO has remained consistent over the last couple of years, the growth rate of our total RPO has slowed and is now more in line with the current RPO. This is primarily due to SaaS transition deals over the last few years, which tend to be longer-term commitments and add extra years to the total contract value reflected in our total RPO for previous periods.

除了遞延收入，我們還關注 RPO，即剩餘履約義務，作為我們業務未來可預測性的指標。第二季度，我們的 RPO 總額為 3.384 億美元，同比增長 19%。我們 RPO 餘額的當前部分高達 1.461 億美元，同比增長 18%。雖然我們當前 RPO 的增長在過去幾年中保持一致，但我們總 RPO 的增長率已經放緩，現在更符合當前的 RPO。這主要是由於過去幾年的 SaaS 過渡交易，這些交易往往是長期承諾，並增加了我們前幾期總 RPO 中反映的總合同價值的額外年份。

Looking ahead to our guidance for the remainder of the year. Our outlook reflects the uncertainty in the macro environment, which we feel is prudent. We also had an unprecedented customer bankruptcy that will be a small headwind to subscription growth over the second half of the year. In summary, for Q3, we expect total revenue to be in the range of $61.5 million to $62.5 million, with subscription revenue in the range of $45 million to $45.5 million and professional services revenue in the range of $16.5 million to $17 million. We expect adjusted EBITDA to be in the range of $9.5 million to $10.5 million. And for non-GAAP earnings per share, we expect a range of $0.23 to $0.25 per share based on a fully diluted share count of approximately 38.9 million shares.

展望我們對今年剩餘時間的指導。我們的展望反映了宏觀環境的不確定性，我們認為這是審慎的。我們還經歷了前所未有的客戶破產，這將對今年下半年的訂閱增長造成小的阻力。總之，對於第三季度，我們預計總收入在 6150 萬美元至 6250 萬美元之間，訂閱收入在 4500 萬美元至 4550 萬美元之間，專業服務收入在 1650 萬美元至 1700 萬美元之間。我們預計調整後的 EBITDA 將在 950 萬至 1050 萬美元之間。對於非 GAAP 每股收益，我們預計每股收益在 0.23 美元至 0.25 美元之間，基於約 3890 萬股的完全稀釋股數。

For the full year of fiscal 2023, we are raising our outlook for total revenue and adjusted EBITDA, reflecting the strong performance in Q2. For subscription revenue, we are tightening the range and increasing the bottom end of our guidance. In summary, for fiscal '23, we expect total revenue to be in the range of $244 million to $246 million, with subscription revenue in the range of $180 million to $181 million and professional services revenue to be in the range of $64 million to $65 million. We expect adjusted EBITDA to be in the range of $39 million to $41 million and non-GAAP EPS to be in the range of $0.94 to $0.99 per share based on a fully diluted share count of approximately 38.9 million shares.

對於 2023 財年全年，我們提高了對總收入和調整後 EBITDA 的預期，以反映第二季度的強勁表現。對於訂閱收入，我們正在收緊範圍並提高指導的底端。總之，對於 23 財年，我們預計總收入將在 2.44 億美元至 2.46 億美元之間，訂閱收入將在 1.8 億美元至 1.81 億美元之間，專業服務收入將在 6400 萬至 65 美元之間百萬。我們預計調整後的 EBITDA 將在 3900 萬美元至 4100 萬美元之間，非 GAAP 每股收益將在每股 0.94 美元至 0.99 美元之間，基於約 3890 萬股的完全稀釋股數。

Some additional context regarding our guidance for the remainder of the fiscal year. First, our guidance reflects the ongoing transition of our business model, which is driving strong SaaS ARR growth but partially offset by steeper declines in maintenance revenue. We continue to expect maintenance revenue to decline by 30% or more in fiscal 2023.

關於我們對本財年剩餘時間的指導的一些額外背景。首先，我們的指引反映了我們業務模式的持續轉變，這推動了 SaaS ARR 的強勁增長，但部分被維護收入的急劇下降所抵消。我們繼續預計 2023 財年維護收入將下降 30% 或更多。

Second, while we do not provide specific guidance on SaaS ARR, as we've discussed on our last several calls, we expect more moderated growth in Q3 and Q4 as the year-over-year comparisons get increasingly more difficult. We still expect SaaS ARR growth to be above our long-term target of 20% but below the elevated levels that we have seen over the last few quarters due to SaaS transitions.

其次，雖然我們沒有提供有關 SaaS ARR 的具體指導，但正如我們在最近幾次電話會議上討論的那樣，我們預計隨著同比比較變得越來越困難，第三季度和第四季度的增長將更加溫和。我們仍然預計 SaaS ARR 增長將高於我們 20% 的長期目標，但低於過去幾個季度由於 SaaS 轉型而出現的高水平。

Third, our non-GAAP results for the first half of the year and our outlook reflect the impact of the refinancing of our convertible debt in the second quarter, including adjustments to our accounting treatment of the convertible debt. More specifically, we have elected to settle both the new 2028 notes and what remains of the 2025 notes using the combination settlement method. To give you a consistent view for your models, we have provided an updated version of our EPS calculation and shares outstanding for Q1 that is consistent with our Q2 report and our outlook for the remainder of the year. You can find this table in the supplemental IR deck that is posted on our website.

第三，我們上半年的非美國通用會計準則業績和我們的展望反映了我們第二季度可轉換債務再融資的影響，包括我們對可轉換債務會計處理的調整。更具體地說，我們選擇使用組合結算方法結算新的 2028 年票據和剩餘的 2025 年票據。為了讓您對模型有一個一致的看法，我們提供了第一季度每股收益計算和已發行股票的更新版本，這與我們的第二季度報告和我們對今年剩餘時間的展望一致。您可以在我們網站上發布的補充 IR 平台中找到此表。

In summary, we're very pleased with our execution in Q2 and believe that we are on track for the year. We continue to build strong momentum in our SaaS business, as evidenced by our SaaS ARR growth and our SaaS net retention, and we remain committed to continued improvement on profitability.

總而言之，我們對我們在第二季度的執行情況感到非常滿意，並相信我們在今年步入正軌。正如我們的 SaaS ARR 增長和 SaaS 淨保留率所證明的那樣，我們繼續在我們的 SaaS 業務中建立強勁勢頭，並且我們仍然致力於持續提高盈利能力。

With that, I'll turn the call over to the operator for any questions. Operator?

這樣，如果有任何問題，我會將電話轉給接線員。操作員？

(Operator Instructions) Our first question comes from Joe Vruwink with Baird.

（操作員說明）我們的第一個問題來自 Baird 的 Joe Vruwink。

This might be a tricky question to answer, but just given some of the updates you're making around what you know and also what you're planning, is it possible to split those 2 factors up just as it relates to the FY '23 forecast changes today? And I guess where I'm going with the question, it seems like you know of some things like you alluded to a customer bankruptcy. But on the other hand, just looking at the cRPO trend, it really doesn't seem like there's been much weakness yet, and in fact, that still looks pretty good. So just kind of trying to distinguish between the different variables.

這可能是一個很難回答的問題，但只要考慮到你圍繞你所知道的和你正在計劃的進行的一些更新，是否有可能將這兩個因素分開，就像它與 FY '23 相關一樣今天預測有變化嗎？我想我要問的問題是，你似乎知道一些事情，比如你提到了客戶破產。但另一方面，只看 cRPO 趨勢，似乎還沒有太大的弱點，事實上，這看起來還不錯。所以只是試圖區分不同的變量。

Yes. Joe, this is John speaking. So I think it'd be difficult to kind of break down and parse it in the way you've asked specifically. But I think just generally speaking, when we looked at our forecast and we looked at the macro environment, we felt like it was prudent for us to focus on what we can see today, and that's our typical method when we provide our guidance.

是的。喬，我是約翰。所以我認為很難按照您具體要求的方式對其進行分解和解析。但我認為一般來說，當我們查看我們的預測和宏觀環境時，我們覺得我們應該謹慎地關注我們今天可以看到的情況，這是我們提供指導時的典型方法。

And so when we looked at the current uncertainty in the macro environment, a small headwind coming from a customer that has gone bankrupt, we folded all of that into our outlook and provided the guidance that we did. I would note that for total revenue and adjusted EBITDA, we did increase our outlook for the year, and we will continue to focus on driving profitable growth, whatever the economy may bring.

因此，當我們審視當前宏觀環境的不確定性，來自破產客戶的小逆風時，我們將所有這些都納入了我們的展望，並提供了我們所做的指導。我要指出的是，對於總收入和調整後的 EBITDA，我們確實提高了今年的預期，我們將繼續專注於推動盈利增長，無論經濟形勢如何。

Okay. That's helpful. And then maybe just looking at your investor materials, the update this quarter. I noticed that market sizing received a change, and there's a bit more detail in just how your market opportunity has evolved since the 2018 Investor Day and specifically maybe some opportunities on the international front.

好的。這很有幫助。然後也許只是看看你的投資者材料，本季度的更新。我注意到市場規模發生了變化，並且有更多細節說明自 2018 年投資者日以來您的市場機會如何演變，特別是國際方面的一些機會。

Just a question. You're calling out that your markets are growing at a high teens pace. Is there any reason, once the Model N transition is over, that subscription growth isn't at a similar high teens pace? And what sort of investment might be needed if more opportunity is emerging on the international front? What sort of investment might be needed to go after it effectively?

就一個問題。您大聲疾呼您的市場正以十幾歲的速度增長。有沒有什麼理由，一旦 Model N 過渡結束，訂閱量增長就不會達到類似的十幾歲的高速度？如果國際上出現更多機會，可能需要什麼樣的投資？可能需要什麼樣的投資才能有效地追求它？

Joe, this is Jason. Thanks for the question. I'll answer that. And you are correct. Over the last 5-plus years, our total addressable market has changed, and there's been a few variables in there. One is the pricing power and our ability to grow as this market grows.

喬，這是傑森。謝謝你的問題。我會回答的。你是對的。在過去 5 年多的時間裡，我們的總潛在市場發生了變化，其中存在一些變數。一個是定價權和我們隨著這個市場的增長而增長的能力。

Secondly, the footprint of the company, as you point out, has changed from being predominantly focused on U.S.-headquartered pharmas and pharmaceutical companies and their operations to now expanding and having a small team in Europe. That's really focused on bringing our Global Tender Management, Global Price Management and international launch excellence products to market there. And then we've also done some things like the M&A in Business Services that further expanded our TAM as well as build new products.

其次，正如你所指出的，公司的足跡已經從主要專注於總部位於美國的製藥公司及其業務轉變為現在在歐洲擴張並擁有一個小團隊。這真正專注於將我們的全球招標管理、全球價格管理和國際發布卓越產品推向市場。然後我們還做了一些事情，比如商業服務領域的併購，進一步擴大了我們的 TAM 並構建了新產品。

So as a company, we have not been static since that last update, and as you aptly noticed, have been starting to get some of this new thinking out into the environment through some of our disclosures. I would also say that some of the investment that you've seen incremental in sales and marketing and product has also been to support that growth. But the best way to think about it is it's not a step change in expenses. It's really an investment to take advantage of these opportunities within our current framework and investment levels.

因此，作為一家公司，自上次更新以來我們並沒有停滯不前，正如您恰當地註意到的那樣，我們已經開始通過我們的一些披露將這種新思維融入到環境中。我還要說的是，您在銷售和營銷以及產品方面看到的一些增量投資也一直在支持這種增長。但最好的思考方式是這不是費用的階躍變化。在我們當前的框架和投資水平內利用這些機會確實是一項投資。

Our next question comes from Craig Hettenbach with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Craig Hettenbach。

Can you talk about how you're feeling about completing the SaaS transition by the end of the year and then also, importantly, how you see the go-to-market sales motion as you focus more on upsell and cross-sell kind of shifting to the next phase of growth?

您能否談談您對在年底前完成 SaaS 過渡的感覺，然後，重要的是，您如何看待進入市場的銷售動議，因為您更加關注追加銷售和交叉銷售的轉變到下一個增長階段？

Yes. Thanks for the question, Craig. So a couple of things. First of all, we still feel really good about our progress on SaaS transitions. And we expect by December of this calendar year, we'll be substantially done with those transitions, or any remaining customers will be currently in flight on projects to get them current.

是的。謝謝你的問題，克雷格。所以有幾件事。首先，我們仍然對我們在 SaaS 過渡方面取得的進展感到非常滿意。我們預計到本日曆年的 12 月，我們將基本完成這些過渡，或者任何剩餘的客戶目前都在進行項目，以使他們了解最新情況。

With respect to the cross-sell, upsell motion, as we've talked about in the past, SaaS transitions have been a great opportunity for us to reengage with customers, retell the Model N story, talk about some of the new products that we've built and brought to market, particularly things around 340B, State Price Transparency Management, just to name a couple. And that has actually really helped us perfect and improve upon our cross-sell, upsell motions in the customer base.

關於交叉銷售、追加銷售，正如我們過去談到的那樣，SaaS 轉型是我們與客戶重新接觸、複述 Model N 故事、談論我們的一些新產品的絕佳機會已經建立並推向市場，特別是 340B 周圍的東西，國家價格透明度管理，僅舉幾例。這實際上確實幫助我們完善和改進了我們在客戶群中的交叉銷售、追加銷售活動。

And in some cases, we've seen SaaS transitions actually drive incremental usage and incremental product footprint in an account. And in other cases, the SaaS transition has been the catalyst to set up a multiyear road map with that customer to consume other products as they get live and in the cloud and then are in a better position to take new products.

在某些情況下，我們已經看到 SaaS 轉換實際上推動了帳戶中的增量使用和增量產品足跡。在其他情況下，SaaS 轉型一直是與該客戶建立多年路線圖的催化劑，以便在其他產品上線和在雲中使用這些產品，然後可以更好地採用新產品。

Got it. And then just as a quick follow-up, the comments in the prepared remarks about kind of sales cycle. And I think up until this point, you've been mostly immune in terms of some more macro disruptions and headwinds, and just was looking for a little bit more context maybe around just the breadth of what you're seeing out there. Is it certain customers or anything else you'd call out in terms of how you're factoring in the macro to your outlook?

知道了。然後作為快速跟進，準備好的評論中關於銷售週期的評論。我認為，到目前為止，你基本上對一些更多的宏觀干擾和逆風免疫，只是在尋找更多的背景，也許只是你所看到的廣度。就您如何將宏觀因素納入您的前景而言，您是否會提到某些客戶或其他任何事情？

Yes, I'll take that one as well, Craig. So obviously, on every public earnings call these days and probably for the last couple of quarters, customers -- or excuse me, companies are getting asked about the macro. And so for me, I wanted to just proactively address that topic. And I think the best way to maybe add a little bit more color for you is to talk a little bit about each of the verticals.

是的，我也要那個，克雷格。很明顯，在這些天的每一次公開財報電話會議上，可能在過去幾個季度裡，客戶——或者對不起，公司都被問到有關宏觀的問題。所以對我來說，我只想主動解決這個話題。而且我認為為您添加更多顏色的最好方法是談談每個垂直領域。

And we feel that Life Sciences continues to be very healthy. It's been -- shown a lot of resilience through the pandemic and through the current cycle that we're in. Some of the things I hear from customers and industry people there are we've got this trifecta of compliance issues our customers are dealing with between the Inflation Reduction Act, State Price Transparency rules, 340B, et cetera. And so that vertical in particular, we feel, which is 85% of our revenue, is pretty resilient.

我們認為生命科學繼續非常健康。通過大流行和我們所處的當前週期，它已經顯示出很大的彈性。我從客戶和業內人士那裡聽到的一些事情是，我們的客戶正在處理這三重合規問題通貨膨脹減少法案、國家價格透明度規則、340B 等。因此，我們認為占我們收入 85% 的垂直領域尤其具有彈性。

We did see High Tech become a little more cautious in the first half of the year and heard customers saying, "Hey, we need to go through additional deal approvals to get a project launched." And we've heard that on and off throughout the last couple of years, but it did seem that High Tech buyers in general had a little more conservatism in the first half of this year. That said, we do -- even in High Tech, we do see some nice green shoots, particularly in semiconductor companies that are benefiting from the semiconductor backlog, companies that are developing new innovative products that are in high demand. So again, us commenting on it was really to take the question proactively because we know it's getting asked of every company today and just wanted to proactively provide some color.

我們確實看到 High Tech 在今年上半年變得更加謹慎，並聽到客戶說，“嘿，我們需要通過額外的交易批准才能啟動項目。”在過去的幾年裡，我們斷斷續續地聽說過這種說法，但今年上半年，高科技買家似乎總體上更加保守一些。也就是說，我們確實做到了 - 即使在高科技領域，我們也確實看到了一些不錯的萌芽，特別是在受益於半導體積壓的半導體公司，以及正在開發需求量很大的新創新產品的公司。因此，我們再次評論它實際上是為了主動提出這個問題，因為我們知道今天每個公司都被問到這個問題並且只是想主動提供一些顏色。

Our next question comes from Nick Mattiacci with Craig-Hallum Group.

我們的下一個問題來自 Craig-Hallum Group 的 Nick Mattiacci。

This is Nick on for Chad Bennett. John, maybe you could just clarify the level of migration activity you expect in the second half of the year. Just looking at the net new SaaS ARR in the second half, it looks like that could be down quite a bit year-over-year. Is this just due to the difference in transition contribution year-over-year? Is there kind of a way we can think about non-transition net new SaaS growth in the back half of the year?

這是查德貝內特的尼克。約翰，也許你可以澄清下半年你預期的遷移活動水平。看看下半年淨新的 SaaS ARR，它看起來可能會同比下降很多。這僅僅是因為過渡貢獻的同比差異嗎？有沒有一種方法可以讓我們考慮下半年的非轉型淨新 SaaS 增長？

Yes. Those are some good questions, Nick, and I'll try to give you some additional color beyond our comments in the script. But I think when we look at SaaS ARR and the outlook in particular for the second half of the year, keep in mind that a big driver for what we're talking about in the year-over-year growth rate is really due to Q3 and Q4 last year. And so we had a lot of SaaS transition activity start to roll through the model last year. It's continuing to some extent this year. But when we look at those year-over-year comparisons, the hurdles get a lot harder, hence the commentary that we've provided.

是的。這些都是很好的問題，尼克，我會嘗試給你一些超出我們在腳本中的評論的額外顏色。但我認為，當我們審視 SaaS ARR 和特別是下半年的前景時，請記住，我們所談論的同比增長率的一個重要推動力實際上是由於第三季度和去年第四季度。因此，去年我們開始通過該模型進行大量 SaaS 過渡活動。今年在某種程度上仍在繼續。但是，當我們查看這些同比比較時，障礙變得更加困難，因此我們提供了評論。

And I think if we step back from this, what we're really trying to do is just be transparent with all of you. We know this metric gets a lot of attention, and it's been accelerating, and we wanted folks to understand the dynamic that was at play underneath the numbers.

我認為如果我們退後一步，我們真正想做的就是對你們所有人保持透明。我們知道這個指標得到了很多關注，並且一直在加速發展，我們希望人們了解數字背後的動態。

Got it. And then just on the guidance, specifically for what it implies for Q4 professional services revenue. It looks like that line item is expected to decline both year-over-year and even more so sequentially from Q3. Can you just help us to understand what's driving that expectation for the decline?

知道了。然後只是關於指導，特別是它對第四季度專業服務收入的含義。看起來該訂單項預計將同比下降，從第三季度開始更是如此。您能否幫助我們了解是什麼推動了對下降的預期？

Yes. There is typically a little bit of seasonality in our professional services business in Q4 with vacation cycles. And so from Q3 to Q4, I think if you look at the pattern last year, you'll see the same thing.

是的。我們的專業服務業務在第 4 季度通常會因休假週期而出現一些季節性。所以從第三季度到第四季度，我想如果你看看去年的模式，你會看到同樣的事情。

Next question comes from Ryan MacDonald with Needham.

下一個問題來自 Ryan MacDonald 和 Needham。

This is Matt Shea on for Ryan. Congrats on a strong quarter. Wanted to follow up on the macro question. So wanted to confirm. It sounds like High Tech is maybe a bit more pressured than Life Science right now. Has that been a consistent trend? And then with that in mind, how do you see the Impartner partnership helping to unlock maybe some of that deal scrutiny or hesitation in the High Tech market and unlock some of those more pressured conversations?

這是 Ryan 的 Matt Shea。祝賀一個強勁的季度。想跟進宏觀問題。所以想確認一下。聽起來高科技現在可能比生命科學面臨更大的壓力。這是一貫的趨勢嗎？然後考慮到這一點，您如何看待 Impartner 合作夥伴關係有助於解開高科技市場中的一些交易審查或猶豫，並解開一些壓力更大的對話？

Yes, Matt, it's a great question. So you are right. I mean kind of consistently with what we've talked about over the last 2 or 3 years from the pandemic and now into a continued uncertain macro, we have definitely seen more durability in Life Sciences in terms of demand and buyers' willingness to kick off large projects with us. So think of it as the relative comparison of strength between the 2 still exists, and we are, again, seeing a little bit more conservativeness in High Tech, at least in the first half of this year.

是的，馬特，這是一個很好的問題。所以你是對的。我的意思是與我們在過去 2 或 3 年中從大流行到現在進入持續不確定的宏觀經濟中所談論的內容一致，我們在需求和買家啟動意願方面肯定看到了生命科學領域的更多持久性與我們合作的大型項目。因此，將其視為兩者之間的相對實力比較仍然存在，我們再次看到高科技領域更加保守，至少在今年上半年是這樣。

That said, the Impartner partnership reflects our -- one, our commitment to High Tech, and two, the fact that we're excited about that vertical and believe it has nice secular tailwinds behind it even after we get out of this current macro environment that we're in. So the Impartner relationship was more of an eye towards the future and driving growth and partnering with another company that has very complementary offerings to us.

也就是說，與 Impartner 的合作夥伴關係反映了我們——第一，我們對高科技的承諾，第二，我們對這個垂直領域感到興奮，並相信即使在我們擺脫當前的宏觀環境之後，它背後也會有很好的長期順風我們所處的位置。因此，與 Impartner 的關係更多地是著眼於未來，推動增長，並與另一家為我們提供非常互補的產品的公司合作。

And also any time you have a partnership like this, it's a force multiplier for you. We'll be selling side by side with them, sharing leads and pipeline in the field. So again, I think it has the opportunity to help today, but even more importantly, help us long term as the sector and the economy recover.

而且任何時候你有這樣的伙伴關係，它對你來說都是一個力量倍增器。我們將與他們並肩銷售，在現場共享線索和渠道。因此，我認為它有機會在今天提供幫助，但更重要的是，隨著該行業和經濟的複蘇，它會長期幫助我們。

Yes, makes sense. Appreciate that. And then given that you guys are hitting critical mass in the SaaS transitions, you've talked about as you go through the year, more discretionary spend can shift towards new logos or cross-sells, upsells, more of a balanced sales capacity approach. Are you seeing those discretionary dollars unlock? And how is that kind of informing some of the investments you plan to make for the back half of the year and into next year to hit on those pillars of new logos, white space and international expansion?

是的，有道理。感謝。然後考慮到你們在 SaaS 轉型中達到了臨界點，你們在這一年中談到過，更多的可自由支配的支出可以轉向新的標識或交叉銷售、追加銷售，以及更多的平衡銷售能力方法。你看到那些可自由支配的美元解鎖了嗎？這如何為您計劃在今年下半年和明年進行的一些投資提供信息，以實現新徽標、空白空間和國際擴張的支柱？

Yes, it's another great question. So we've actually been investing in our sales capacity over the last 2 to 3 quarters. And as I've talked about in prior quarters, we've had a slight bias towards white space because it's a large near-term opportunity. As I said in the answer to the prior question, SaaS transitions are a great catalyst as well for cross-sell, upsell opportunities. So we've certainly had a bit of a bias towards customer base sales capacity investment over the last few quarters.

是的，這是另一個很好的問題。因此，在過去的 2 到 3 個季度中，我們實際上一直在投資於我們的銷售能力。正如我在前幾個季度所說的那樣，我們對白色空間有輕微的偏見，因為這是一個巨大的近期機會。正如我在回答前一個問題時所說，SaaS 轉型也是交叉銷售和追加銷售機會的重要催化劑。因此，在過去幾個季度中，我們肯定對客戶群銷售能力投資有一些偏見。

But that has changed, and we've definitely been hiring in our new logo team, really with an eye towards growth over the next couple of years and getting those new sales professionals on board this year and really focused on the remaining large accounts that are out there in both Life Sciences and High Tech. And I'm excited about that team and the new capacity that's starting to come online as we move into the back half of the year and look forward to our fiscal '24.

但這已經改變了，我們肯定在我們的新徽標團隊中招聘，真正著眼於未來幾年的增長，並在今年讓這些新的銷售專業人員加入，並真正專注於剩餘的大客戶在生命科學和高科技領域都有。當我們進入今年下半年並期待我們的 24 財年時，我對該團隊和開始上線的新產能感到興奮。

Our next question comes from Matt VanVliet with BTIG.

我們的下一個問題來自 BTIG 的 Matt VanVliet。

Maybe digging a little deeper on some of the cross-sell opportunity, a number of products around State Price Transparency and other similar sort of regulatory components. I think you mentioned the Inflation Reduction Act as well. Curious on any kind of information you can share with us in terms of take rates or overall sort of market penetration of maybe that as a basket of modules, not maybe getting into individual ones. But how do you feel like that ability to cross-sell that regulatory required reporting is going in your customer base? And what is sort of the upper bound of penetration that you think is reasonable?

也許更深入地挖掘一些交叉銷售機會，一些圍繞國家價格透明度和其他類似監管成分的產品。我想你也提到了通貨膨脹減少法案。對您可以與我們分享的任何類型的信息感到好奇，這些信息可能是作為一籃子模塊的採用率或整體市場滲透率，而不是進入單個模塊。但是，您如何看待您的客戶群中交叉銷售監管要求報告的能力？您認為合理的滲透上限是多少？

Yes, it's a great question, Matt. So I mean just as I guess as a reminder, the 3 -- broadly speaking, the 3 cross-sell, upsell opportunities have or sales motions that we have in the customer base are selling new products, moving into new divisions and moving into new geographies. Right now, I'm seeing a lot of great teamwork between our teams in the U.S. and our team in Europe and teaming on deals where we might be -- a customer might be using Model N in the U.S., and there's an opportunity in Europe to roll out Global Price Management, Global Tender Management. So I've been happy with how that's going. And I would also characterize it as early days and not anything that's going to drive growth this year but certainly over the next couple of years.

是的，這是一個很好的問題，馬特。所以我的意思是，正如我想提醒的那樣，這 3 個——廣義上講，我們在客戶群中擁有的 3 個交叉銷售、追加銷售機會或銷售動議正在銷售新產品、進入新部門並進入新的領域地理。現在，我看到我們在美國的團隊和我們在歐洲的團隊之間有很多很棒的團隊合作，並且在我們可能進行的交易中合作——客戶可能在美國使用 Model N，而歐洲有機會推出全球價格管理、全球招標管理。所以我對目前的情況很滿意。而且我還將其描述為早期階段，而不是今年會推動增長的任何事情，但肯定會在未來幾年內推動增長。

And then in terms of new products, so Inflation Reduction Act is a bit of literature that was published last summer, and we're actually still working with industry leaders and our customers to determine the impact of that. Probably not a new product for us but definitely a secular tailwind as people need to be current or using a product like Model N to comply with that act as it starts to come to fruition, most likely at the end of this year and '24.

然後在新產品方面，所以通貨膨脹減少法案是去年夏天出版的一些文獻，我們實際上仍在與行業領導者和我們的客戶合作以確定其影響。對我們來說可能不是新產品，但絕對是長期的順風，因為人們需要保持最新狀態或使用像 Model N 這樣的產品來遵守該行為，因為它開始取得成果，最有可能在今年年底和 24 年。

And then 2 of the products that -- kind of thinking again in that trifecta of regulatory drivers in the environment right now, 340B and State Price Transparency Management are in the conversation with every prospect, just about every prospect and customer. State Price Transparency Management, we've seen a good take rate on that. I mean that product came out a little over a year ago, and we've got double-digit customers on that product now. 340B is relatively early compared to State Price Transparency Management. We worked with a couple of customers, built the product. They're live and in production and referenceable now. And so now we're really trying to capitalize on that to drive success with other customers and prospects now that the product's GA.

然後，其中 2 種產品——在目前環境中的監管驅動因素的三重奏中再次思考，340B 和國家價格透明度管理正在與每個潛在客戶，幾乎每個潛在客戶和客戶進行對話。國家價格透明度管理，我們已經看到了很好的接受率。我的意思是該產品在一年多前問世，現在我們已經有兩位數的客戶購買該產品。與國家價格透明度管理相比，340B 相對較早。我們與幾個客戶合作，構建了產品。它們已經上線，正在製作中，現在可以參考。所以現在我們真的在努力利用它來推動其他客戶和潛在客戶的成功，因為該產品的 GA。

All right. Very helpful. And then when you look at the Business Services group and some of the success you have maybe pushing into areas of your existing customer base that maybe under Deloitte's tutelage, they weren't really going after more in the mainstream market in the enterprise level, are you still seeing traction for that? Or have budgets maybe dried up a little bit on something a little more comprehensive on that front? So just kind of what is the outlook maybe for the second half of the year? And then longer term, how much growth sort of in your existing customer base do you feel like you can penetrate?

好的。很有幫助。然後，當您查看商業服務集團時，您可能會在德勤的指導下進入現有客戶群領域取得的一些成功，他們並沒有真正在企業層面的主流市場上追求更多，而是你仍然看到牽引力嗎？或者在這方面更全面的事情上預算可能會枯竭一點？那麼今年下半年的前景可能如何？然後從長遠來看，您認為您可以滲透到現有客戶群中多少增長？

Yes. What I would say, Matt, is again, as you move into large pharma companies, their ability to invest right now and the overall health and willingness to invest still feels really good. And in the script, I mentioned the case where we have one of our large vaccine providers and a top 10 pharma company that are partnering to bring a product to market. And they actually selected our Business Services offering to help them with some of the initial go-to-market and determining who's eligible to participate in the program and how the pricing works.

是的。馬特，我要說的是，當你進入大型製藥公司時，他們現在的投資能力以及整體健康狀況和投資意願仍然感覺非常好。在劇本中，我提到了我們的一家大型疫苗供應商和一家排名前 10 的製藥公司合作將產品推向市場的案例。他們實際上選擇了我們的商業服務產品來幫助他們進行一些初步的上市，並確定誰有資格參與該計劃以及定價如何運作。

And I think right there is a good example of 2 industry leaders coming together and coming to us as their strategic partner to help figure out how we were going to enable this go-to-market. And the ability to move quickly with Business Services really resonated with them. And so I think it's just another proof point of Business Services. That value prop does resonate upmarket where, again, the inclination to invest still seems pretty healthy.

我認為有一個很好的例子，兩個行業領導者齊聚一堂，作為他們的戰略合作夥伴來找我們，幫助弄清楚我們將如何實現這一上市。借助 Business Services 快速行動的能力確實引起了他們的共鳴。所以我認為這只是商業服務的另一個證明點。這種價值支撐確實引起了高端市場的共鳴，投資傾向似乎仍然相當健康。

Our next question comes from Joe Meares with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Joe Meares。

This is Dominique Manansala on for Joe. So you've noted that one of the key drivers to your subscription growth has been providing high ROI and mission-critical solutions. So what is the typical payback period for a new customer on your platform? And do you have a range there that you could share?

我是 Joe 的 Dominique Manansala。您已經註意到，訂閱增長的關鍵驅動因素之一是提供高投資回報率和關鍵任務解決方案。那麼您平台上新客戶的典型投資回收期是多少？你有可以分享的範圍嗎？

It's interesting. We always work with -- every one of our sales cycles, whether you're in High Tech or Life Sciences, is a highly ROI-driven sales cycle. Customers are sometimes a little reticent to share all of that because it can get into pricing negotiations. But I have heard with pretty strong consistency across our customers that whether they're implementing Model N for the first time or implementing one of our new products like 340B vigilance or State Price Transparency Management that the ROI is usually within a year.

這真有趣。我們始終與 - 我們的每一個銷售週期，無論您是在高科技還是生命科學領域，都是一個高度投資回報率驅動的銷售週期。客戶有時不太願意分享所有這些，因為這可能會導致價格談判。但我聽說我們的客戶非常一致地表示，無論他們是第一次實施 Model N 還是實施我們的一個新產品，如 340B 警戒或國家價格透明度管理，投資回報率通常在一年內。

Great. And one more for me. So you noted last quarter that 7 of the top 10 global vaccine providers are Model N customers. Were you able to add any more of these in the quarter? And if not, are you engaging with them? Or have -- do you have plans to engage with the remaining 3 anytime soon?

偉大的。還有一個給我。所以你在上個季度注意到全球前 10 大疫苗供應商中有 7 家是 Model N 客戶。您能否在本季度添加更多這些內容？如果沒有，您是否與他們互動？或者 - 您是否有計劃很快與其餘 3 人合作？

Yes. I think of it more in terms of our -- the top 100 pharma companies in the world, and some of those happen to be vaccine providers, and some aren't. And so certainly for the top 100 list and even beyond that, customers or prospects who are not currently a customer, we would most likely have all of those assigned out in a territory and a new logo rep pursuing them.

是的。我更多地從我們的角度來考慮——世界前 100 家製藥公司，其中一些恰好是疫苗供應商，而另一些則不是。因此，對於前 100 名甚至更多的客戶或目前不是客戶的潛在客戶，我們很可能會將所有這些人分配到一個地區，並有一個新的徽標代表來追求他們。

(Operator Instructions) Our next question comes from Rishi Jaluria with RBC.

（操作員說明）我們的下一個問題來自 RBC 的 Rishi Jaluria。

Nice to see a continued resilience in the business. I wanted to ask a 2-part question around generative AI. Let me start with the first part, which is really better understanding how you're thinking about your near-term strategy around generative AI because as we see it, you have a strong market leadership position. You've got a lot of data. There seems to be a lot of kind of automation that you can offer and unique insights. Maybe if you can walk us through how you're thinking about your generative AI strategy. And I don't want to spoil anything that we might expect at Rainmaker, but anything there would be helpful. And then I've got a quick follow-up.

很高興看到業務持續恢復活力。我想問一個關於生成 AI 的兩部分問題。讓我從第一部分開始，這真的是更好地理解你如何思考你圍繞生成人工智能的近期戰略，因為正如我們所看到的，你擁有強大的市場領導地位。你有很多數據。您似乎可以提供多種自動化和獨特的見解。也許如果你能告訴我們你是如何考慮你的生成人工智能策略的。我不想破壞我們在 Rainmaker 上可能期待的任何東西，但那裡的任何東西都會有所幫助。然後我有一個快速的跟進。

Yes. I mean it's certainly a transformative technology, and we're looking at a variety of different ways to weave it into our product road map. And I hear a lot of companies talking about how they may use it in the future, but I think what's exciting about Model N is to talk about how we're using it today. And we've got 2 great use cases.

是的。我的意思是它肯定是一項變革性技術，我們正在尋找各種不同的方法將其融入我們的產品路線圖。我聽到很多公司都在談論他們將來如何使用它，但我認為 Model N 令人興奮的地方在於談論我們今天如何使用它。我們有 2 個很棒的用例。

One is a product called Global Launch Excellence. And Global Launch Excellence allows us to ingest all of the complex pricing rules that exist in EMEA, which are called reference prices. And really, the best way to think about it is in Europe, the price of a drug in one country is most likely the derivative of how it's priced in another country. And so Global Launch Excellence takes all of these dependencies into account and runs complex simulations that outline the most profitable country launch sequence.

一種是名為 Global Launch Excellence 的產品。 Global Launch Excellence 使我們能夠吸收 EMEA 中存在的所有復雜定價規則，這些規則稱為參考價格。實際上，最好的思考方式是在歐洲，一個國家的藥物價格很可能是另一個國家定價方式的衍生物。因此，Global Launch Excellence 將所有這些依賴性都考慮在內，並運行複雜的模擬來概述最有利可圖的國家/地區發射順序。

And then also for products that are in market, we have a real-time AI engine that can take a look at, let's say, a discount that you may be considering in Italy, the impact of the price of that drug in Greece and do it in real time. So country managers and European market access teams can make more thoughtful decisions on how they may or may not discount on existing products that are in market. So again, that's a great example of where we're using it today.

然後對於市場上的產品，我們有一個實時人工智能引擎，可以查看，比方說，你可能正在考慮在意大利的折扣，該藥物在希臘的價格的影響，並做它是實時的。因此，國家經理和歐洲市場准入團隊可以就如何對市場上的現有產品打折或不打折做出更周到的決定。再一次，這是我們今天使用它的一個很好的例子。

Our product, 340B vigilance, which we've talked about on several of our calls, is another interesting use case, I think, where we are taking the entire database of prescription scripts that customers' products are dispensed against, comparing that to the original contracting vehicle and then flagging patterns in the data where we think there might be fraud where people are erroneously claiming rebates or other incentives or people who are trying to buy accidentally under the wrong contract. And so that's another example of where we're using it today.

我們的產品 340B 警惕性，我們已經在我們的幾個電話中討論過，我認為這是另一個有趣的用例，我們正在獲取客戶產品配藥所針對的整個處方腳本數據庫，並將其與原始數據庫進行比較簽約車輛，然後在數據中標記我們認為可能存在欺詐的模式，即人們錯誤地要求回扣或其他激勵措施，或者人們試圖根據錯誤的合同意外購買。這是我們今天使用它的另一個例子。

And again, I think those are 2 important ones to point to because a lot of people talk about how they could be using the technology in the future and we're actually using it today. And a couple of those -- both of those products are examples of ones that really resonate well with our customers.

再一次，我認為這是需要指出的兩個重要問題，因為很多人都在談論他們將來如何使用該技術，而我們今天實際上正在使用它。其中有幾個——這兩種產品都是真正引起我們客戶共鳴的例子。

Wonderful. That's really helpful. And then maybe kind of as a follow-up on the generative AI side. When you're talking to your customer base, what are you seeing from them in terms of how they plan to better integrate generative AI in their processes? I know we've seen some of the headlines of drugs going through clinical trials that have been developed entirely by generative AI, for example. But love to kind of hear how -- what you're hearing from customers and how you think that can maybe shape your strategy or your business model over the near or medium term.

精彩的。這真的很有幫助。然後可能是生成人工智能方面的後續行動。當你與你的客戶群交談時，你從他們那裡看到了什麼，他們計劃如何更好地將生成人工智能集成到他們的流程中？例如，我知道我們已經看到了一些正在接受臨床試驗的藥物的頭條新聞，這些藥物完全由生成式人工智能開發。但喜歡聽聽如何——你從客戶那裡聽到的，以及你認為這可能會在近期或中期塑造你的戰略或商業模式。

Well, I'm not really qualified to talk on the science side of how customers may use it, but I certainly think, again, giving good -- 2 good examples of how it's being used today. I think in market access, one of the other areas that I hear from customers and that we're also working on is how can generative AI go back and look at, in some cases, maybe decades of contracts and pricing data and make recommendations to customers on -- or make recommendations to market access groups on how to better structure contracts going forward in the future.

好吧，我真的沒有資格從科學的角度談論客戶如何使用它，但我當然認為，再次給出很好的 - 2 個很好的例子來說明它今天是如何使用的。我認為在市場准入方面，我從客戶那裡聽到並且我們也在努力的其他領域之一是生成人工智能如何回過頭來查看，在某些情況下，可能是幾十年的合同和定價數據，並提出建議客戶 - 或就如何更好地構建未來的合同向市場准入小組提出建議。

In many cases, if you're a drug manufacturer and you're working with a big pharma -- excuse me, a big payer provider, sometimes those contracts can be literally thousands of pages long. And so being able to draft a contract or at least a contract shell that can be then used for a negotiation is one of the next things on the road map that we hear commonly from customers.

在許多情況下，如果你是一家藥品製造商並且你正在與一家大型製藥公司合作——對不起，一家大型付款供應商，有時這些合同可能長達數千頁。因此，能夠起草合同或至少起草合同外殼，然後可以用於談判是我們經常從客戶那裡聽到的路線圖上的下一件事。

Our next question comes from Brian Peterson with Raymond James.

我們的下一個問題來自 Brian Peterson 和 Raymond James。

This is Johnathan McCary on for Brian. I just have one today. So how do you guys think about investments in TAM-expanding products? Do you think that's going to be a key growth driver for you guys post cloud transition? Or are you kind of comfortable with the opportunity in terms of white space within the existing product set and given the increasingly complex regulatory landscape to the markets you cover?

這是 Johnathan McCary 為 Brian 做的。我今天只有一個。那麼你們如何看待對 TAM 擴展產品的投資？你認為這將成為你們雲轉型後的主要增長動力嗎？還是您對現有產品集中的空白空間機會感到滿意，並且考慮到您所涵蓋的市場日益複雜的監管環境？

Yes. It's a good question, Johnathan. I mean I think the answer is both. I mean we've still got a really meaningful amount of white space with our existing customers in terms of selling existing products, expanding into geographies and other divisions. And then we still have an interesting new logo greenfield amount that's left. So if we were to do nothing, we actually feel really good about -- with our current product portfolio and footprint, we feel good about what we could drive. But certainly, new products and new geographies are the lifeblood of the company and are what really drive that growth over a longer-term horizon over the next 3 to 5 years.

是的。這是個好問題，喬納森。我的意思是我認為答案是兩者兼而有之。我的意思是，在銷售現有產品、擴展到地域和其他部門方面，我們與現有客戶仍有大量空白。然後我們還有一個有趣的新標誌綠地數量。因此，如果我們什麼都不做，我們實際上感覺非常好 - 憑藉我們目前的產品組合和足跡，我們對我們可以駕駛的東西感覺很好。但可以肯定的是，新產品和新地區是公司的命脈，也是未來 3 到 5 年內真正推動長期增長的因素。

There are no further questions at this time. I would like to turn the floor back over to CEO Jason Blessing for closing remarks.

目前沒有其他問題。我想把發言權轉回給首席執行官傑森·布萊辛，讓他發表閉幕詞。

Well, thank you, operator, and I'd like to thank everyone for joining today. We appreciate all of the engaged questions as well as your support. And once again, I'd also like to thank all of our employees, customers and partners for supporting us and partnering with us to drive another strong quarter. So thanks again, and have a great night.

好吧，謝謝接線員，我要感謝大家今天的加入。我們感謝所有參與的問題以及您的支持。再一次，我還要感謝我們所有的員工、客戶和合作夥伴對我們的支持，並與我們合作推動另一個強勁的季度。再次感謝，祝您度過一個美好的夜晚。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。