Model N Inc (MODN) 2024 Q1 法說會逐字稿

Good afternoon and welcome to Model N first quarter of fiscal 2024 earnings conference call. (Operators Instructions) As a reminder this conference is being recorded. With that, I would like to turn the call over to Carolyn Bass, Investor Relations. Please go ahead.

下午好，歡迎參加 Model N 2024 財年第一季財報電話會議。（操作員指示）提醒一下，本次會議正在錄製中。說到這裡，我想把電話轉給投資者關係部的卡洛琳巴斯 (Carolyn Bass)。請繼續。

Good afternoon. Welcome to Model N first quarter of fiscal 2024 earnings call. This is Carolyn Bass, Investor Relations for Model N. With me on the call today are Jason Blessing, Model N's President and Chief Executive Officer; and John Ederer, Chief Financial Officer.

午安.歡迎參加 Model N 2024 財年第一季財報電話會議。我是 Model N 投資者關係部 Carolyn Bass。今天與我一起參加電話會議的還有 Model N 總裁兼執行長 Jason Blessing 和財務長 John Ederer。

Our earnings press release was issued at the close of market and is posted on our website. The primary purpose of today's call is to provide you with information regarding our first quarter performance and offer a financial outlook for a second quarter and fiscal year ending December 31, 2024.

我們的收益新聞稿在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第一季度業績的信息，並提供截至 2024 年 12 月 31 日的第二季度和財政年度的財務展望。

The commentary made in 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.

本次電話會議中的評論可能包括前瞻性陳述。這些前瞻性陳述是基於管理階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 or in isolation from GAAP results. Reconciliations of the non-GAAP metrics to the nearest GAAP metrics are included in the earnings release issued today, which is available on our website.

此外，在今天的電話會議中，我們將討論非公認會計準則財務指標。這些非 GAAP 財務指標應作為 GAAP 結果的補充考慮，而不能替代或孤立於 GAAP 結果。今天發布的收益報告中包含了非 GAAP 指標與最接近的 GAAP 指標的對賬，您可以在我們的網站上查閱。

I encourage you to visit our Investor Relations website at investors.modeln.com to access our first quarter of fiscal 2024 press release, periodic SEC reports and the webcast replay of this call. Finally, unless otherwise stated, all financial comparisons in this call will be made to our fiscal 2023 results. And with that, let me turn the call over to Jason.

我鼓勵您造訪我們的投資者關係網站 investors.modeln.com，以查看我們 2024 財年第一季的新聞稿、定期的 SEC 報告以及本次電話會議的網路直播重播。最後，除非另有說明，本次電話會議中的所有財務比較都將與我們 2023 財年的業績進行比較。說完這些，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 first quarter results exceeded guidance for total revenue, subscription revenue, professional services revenue and adjusted EBITDA. We also generated over $20 million in incremental cash flow from operations in Q1 versus the first quarter of last year. This metric is another proof point that demonstrates the overall health of our business and the progress we've made on our business model transformation.

謝謝你，卡羅琳，歡迎參加我們今天的電話會議。我很高興地報告，我們的第一季業績超過了總收入、訂閱收入、專業服務收入和調整後 EBITDA 的預期。與去年第一季相比，我們第一季的營運現金流增量還超過了 2,000 萬美元。這項指標再次證明了我們業務的整體健康狀況以及我們在業務模式轉型方面的進展。

Our Q1 SaaS ARR grew by 16% year-over-year, while SaaS net dollar retention was 115%. As we said on the last two calls, we faced tough comparable this year in the first few quarters when compared to last year's record-setting SaaS metrics. That said, we expect our SaaS growth metrics to improve as we exit the year and we are pleased with our start to 2024.

我們第一季的 SaaS ARR 年增 16%，而 SaaS 淨美元保留率為 115%。正如我們在前兩次電話會議上所說的那樣，與去年創紀錄的 SaaS 指標相比，今年前幾季我們面臨嚴峻的挑戰。也就是說，我們預計今年年底我們的 SaaS 成長指標將會改善，我們對 2024 年的開始感到滿意。

Next, I'd like to share a selected business highlights from the quarter. I am encouraged by Q1 because we signed one of our last remaining large SaaS transitions, but more importantly, we saw a meaningful contribution from our long-term growth drivers. The bookings mix included new logos and numerous customer base deals, including transactions involving recently released products. I was also pleased to see a strong quarter from business services.

接下來，我想分享本季精選的業務亮點。我對第一季感到鼓舞，因為我們簽署了最後剩下的大型 SaaS 轉型之一，但更重要的是，我們看到了長期成長動力的重大貢獻。預訂組合包括新標誌和眾多客戶群交易，包括涉及最近發布的產品的交易。我也很高興看到商業服務本季表現強勁。

In Q1 our new logo team posted a strong start to the year. In life sciences, I am pleased to announce a [marquee] win with the signing of Bayer Pharmaceuticals, a top 20 global pharma company that is currently going through its own transformation. Bayer's broad portfolio includes many world-famous products that has shaped their iconic brand.

在第一季度，我們的新標誌團隊取得了強勁的開局。在生命科學領域，我很高興地宣布與拜耳製藥簽約，取得了一項重大勝利。拜耳製藥是一家全球排名前 20 的製藥公司，目前正在經歷自身的轉型。拜耳的產品組合廣泛，包括許多世界知名的產品，塑造了其標誌性品牌。

This was a competitor of wins and includes our full suite of cloud offerings, including all commercial government pricing and medicaid solutions. Bayer saw a best-of-breed solution to address their revenue management challenges, which included many manual and outsource processes. Additionally Bayer is looking to establish a robust platform to support multiple upcoming product launches, Model N will be instrumental in supporting these new launches while also delivering several operational improvements resulting in a strong ROI when the system is fully deployed.

這是一場勝利的競爭，其中包括我們的全套雲端產品，包括所有商業政府定價和醫療補助解決方案。拜耳找到了解決其收入管理挑戰的最佳解決方案，其中包括許多手動和外包流程。此外，拜耳正在尋求建立一個強大的平台來支援即將推出的多種產品，Model N 將有助於支援這些新產品的發布，同時還將提供多項營運改進，從而在系統全面部署後帶來強勁的投資回報率。

In life sciences we also continue to see solid growth within our customer base, led by new products that we're releasing. Novartis of prominent Model N SaaS customer recently implemented Moden N Ngage in support of their focus on operational excellence. Ngage is Model N's innovative in application guidance tool, specifically designed to help users navigate the system while also helping to enforce key operational and compliance controls.

在生命科學領域，我們的客戶群也持續穩定成長，這主要得益於我們發布的新產品。著名 Model N SaaS 客戶諾華公司最近實施了 Moden N Ngage，以支持其對卓越營運的關注。Ngage 是 Model N 的創新應用指導工具，專門用於幫助使用者導航系統，同時幫助執行關鍵的操作和合規控制。

Ngage also provides real-time analytics to customers and Model N to help identify where users are having challenges with system usability. This helps us to improve our user experience and empowers customers to streamline user procedures. The adoption of Ngage at Novartis demonstrates this new products ability to help companies be more successful with their Model N investments while also improving overall operational excellence.

Ngage 也為客戶和 Model N 提供即時分析，協助識別使用者在系統可用性方面遇到的挑戰。這有助於我們改善使用者體驗並使客戶能夠簡化使用者程式。諾華採用 Ngage 證明了這款新產品能夠幫助企業在 Model N 投資方面取得更大成功，同時提高整體營運卓越性。

Also in Q1, Apellis Pharmaceuticals selected global launch excellence to augment their existing deployment of Model N's global pricing management. Apellis is a global biopharmaceutical company that develops transformative medicines for people living with rare retinol and neurological diseases.

同樣在第一季度，Apellis Pharmaceuticals 選擇了全球發布卓越來增強其現有的 Model N 全球定價管理部署。Apellis 是一家全球生物製藥公司，致力於為患有罕見視黃醇和神經系統疾病的人開發變革性藥物。

Model N's global launch excellence module will allow Apellis to create complex launch sequences by combining accurate price data, volume forecast and optimization algorithms to ensure that their therapies efficiently reach the patient populations that need them most.

Model N 的全球發布卓越模組將允許 Apellis 透過結合準確的價格數據、數量預測和優化演算法來創建複雜的發布序列，以確保他們的治療方法有效地惠及最需要的患者群體。

Turning to business services. During the quarter, we signed several customer expansions, one I'd like to highlight is that Moderna. Moderna expanded their business services consumption to handle their membership, contract administration and rebates processing to support their growing business. Moderna is also a case study on how business services allows us to engage with an emerging pharmaceutical company and quickly provide fully outsourced revenue management to enable them to deliver their life changing products to the world.

轉向商業服務。在本季度，我們簽署了幾項客戶擴展協議，我想強調的是 Moderna。Moderna 擴大了其商業服務消費，以處理其會員資格、合約管理和回扣處理，以支援其不斷增長的業務。Moderna 也是一個案例研究，它展示了商業服務如何使我們能夠與一家新興製藥公司合作，並快速提供完全外包的收入管理，使他們能夠向世界提供改變生活的產品。

Another terrific example of business services enabling a growth company is that United Therapeutics. United Therapeutics is an existing Model N customer and needed help dealing with the increasing complexity of state price transparency regulations, to address this need this customer selected our newly released state price transparency management business services offering.

商業服務助力公司成長的另一個絕佳例子是 United Therapeutics。United Therapeutics 是現有的 Model N 客戶，需要協助應對日益複雜的州價格透明度法規，為了滿足這一需求，該客戶選擇了我們新發布的州價格透明度管理業務服務產品。

This solution will enable United Therapeutics to accelerate their path to compliance and to ensure that their future state price clients' compliance needs will be properly managed regardless of the changes in regulations.

該解決方案將使 United Therapeutics 能夠加快其合規進程，並確保無論法規如何變化，其未來州價格客戶的合規需求都能得到妥善管理。

Moving on to SaaS transitions. During the quarter, we signed one of our few remaining SaaS transitions with Teva Pharmaceuticals. Teva is the global leader in generic drug manufacturing supplying affordable medicines to nearly 200 million people across six continents every day. This deal extends the 20-plus year revenue management partnership between our two companies.

轉向 SaaS 轉型。在本季度，我們與 Teva Pharmaceuticals 簽署了剩下的幾個 SaaS 轉型協議之一。Teva 是全球領先的仿製藥製造商，每天為六大洲近 2 億人提供可負擔的藥品。這項交易延續了我們兩家公司之間20多年的收益管理合作關係。

Our SaaS platform will allow Teva to to more easily take advantage of innovations and to operate more efficiently while maintaining compliance. Turning to high-tech, this segment continues to show green sheets and posted a strong Q1 that included customer expansions and two new logo wins.

我們的 SaaS 平台將使 Teva 能夠更輕鬆地利用創新並在保持合規性的同時更有效率地運作。轉向高科技，該領域繼續呈現綠色業績，並公佈了強勁的第一季業績，包括客戶擴張和兩個新標誌的勝利。

The first new logo is Taiwan Semiconductor, a multinational semiconductor design and manufacture that also owns the world's first dedicated semiconductor boundary. Taiwan Semiconductor is planning to grow their business globally, especially through their distribution channel, but they are limited by a combination of manual and homegrown systems.

第一個新標誌是台灣半導體，這是一家跨國半導體設計和製造公司，也擁有世界上第一個專用半導體邊界。台灣半導體計劃在全球擴展業務，特別是透過其分銷管道，但他們受到手動和自主研發系統的限制。

They needed a platform to build a consistent global approach to pricing floating and point-of-sale integration. After a thorough evaluation, Taiwan Semiconductor chose Model N's channel data management and revenue cloud to automate these key processes to support their future growth.

他們需要一個平台來建立一致的全球定價浮動和銷售點整合方法。經過全面評估，台灣半導體選擇了 Model N 的通路資料管理和收入雲來自動化這些關鍵流程，以支援其未來的成長。

We also signed another new logo in High Tech with a company that designs and manufactures power conversion, measurement and control solutions that are used by a wide variety of industries. During our sales cycle, we worked with the customer to identify significant operational improvements using model, and that will result inefficiencies in pricing strategies in a meaningful reduction in revenue leakage.

我們還與一家設計和製造廣泛應用於各行各業的電力轉換、測量和控制解決方案的公司簽署了另一個高科技新標誌。在我們的銷售週期中，我們與客戶合作，使用模型確定了重大的營運改進，這將導致定價策略效率低下，從而顯著減少收入流失。

This customer also plans to use Model N as an enabler for future acquisitions. Given that Model N will allow them to quickly implement key channel incentive and pricing strategies into the newly acquired business. It is gratifying to see both of these new high tech customers turn to Model N as the strategic partner to enable their growth strategies.

該客戶還計劃使用 Model N 作為未來收購的推動因素。鑑於 Model N 將允許他們快速將關鍵管道激勵和定價策略實施到新收購的業務中。很高興看到這兩位新的高科技客戶都選擇 Model N 作為策略合作夥伴來實現他們的成長策略。

Turning to professional services, our team exceeded expectations with another strong quarter. The results of our professional services organizations symbolize the strong demand for our mission critical solutions as companies seek to drive top and bottom line improvements. Our professional services team continues to do a terrific job of getting new customer live on time and on budget.

談到專業服務，我們的團隊又一個季度表現強勁，超出了預期。我們的專業服務組織的成果象徵著在企業尋求推動頂線和底線改善的同時，對我們的關鍵任務解決方案的強烈需求。我們的專業服務團隊繼續出色地完成工作，按時、按預算吸引新客戶。

One project that I'd like to call out is Genentech, and their successful SaaS transition to support their pharma business. Genentech is the latest example of our team working closely with a long time customer with a very complex configuration and successfully moving them to our cloud platform. This project also includes the implementation of our proprietary testing suite that helps pharma companies more easily maintain compliance with internal audit, while also being able to quickly adapt innovation and regulatory updates. Again, congratulations to Genentech and our services team for achieving this important milestone in our relationship.

我想提及的一個項目是 Genentech，他們成功實現了 SaaS 轉型以支持其製藥業務。Genentech 是我們團隊與長期擁有非常複雜配置的客戶密切合作並成功將其遷移到我們的雲端平台的最新案例。該專案還包括實施我們的專有測試套件，幫助製藥公司更輕鬆地保持內部審計合規性，同時能夠快速適應創新和監管更新。再次恭喜 Genentech 和我們的服務團隊在我們的合作關係中取得這一重要里程碑。

As we focus on future growth, we continue to build new products in collaboration with our customers, one recent example is price management for high tech, a new product that enables manufacturers to simultaneously manage price execution across direct and indirect channels globally. This new modules fully integrated with our deal management product and streamlines pricing updates to enable tight pricing control and real-time market execution of changes.

在我們關注未來成長的同時，我們將繼續與客戶合作開發新產品，最近的一個例子是高科技價格管理，這是一種新產品，使製造商能夠同時管理全球直接和間接通路的價格執行。這個新模組與我們的交易管理產品完全集成，並簡化了價格更新，從而實現了嚴格的價格控制和即時市場變化的執行。

Finally, earlier today, we issued our new 2024 state of revenue report. This marks our sixth annual report, which identifies the top challenges and opportunities for pharmaceutical, med tech and high tech manufacturers. This report is based on the results of a survey of more than 300 C-suite executives directly responsible for revenue management. Three themes stand out to me in the 2024 report because they reflect the dynamic operating environment that has become a new normal and each is something that Model N can help our customers address.

最後，今天早些時候，我們發布了新的 2024 年收入狀況報告。這是我們的第六份年度報告，其中指出了製藥、醫療技術和高科技製造商面臨的最大挑戰和機會。本報告是根據對 300 多名直接負責收入管理的高階主管的調查結果。2024 年報告中有三個主題讓我印象深刻，因為它們反映了已成為新常態的動態營運環境，而每個主題都是 Model N 可以幫助我們的客戶解決的問題。

The three themes are executive named, process efficiency, and cost savings, as top priorities in this operating environment and are increasingly looking to advanced analytics and AI to achieve these priorities. For a second year in a row, supply chain disruption emerge as one of the top obstacles across all industries. And finally, pharmaceutical executives do not see the pace of regulatory change slowing down anytime soon.

這三個主題分別是高階主管命名、流程效率和成本節約，是這個營運環境中的首要任務，並且越來越多地尋求高階分析和人工智慧來實現這些優先事項。供應鏈中斷連續第二年成為所有產業面臨的最大障礙之一。最後，製藥公司的高層並不認為監管變革的步伐會很快放緩。

These insights help us better understand how to tailor our solutions to empower our customers to create and bring their life-saving products to the world. I encourage all of you to read the 2024 state of revenue reported by downloading up from our website at modeln.com.

這些見解有助於我們更了解如何客製化我們的解決方案，以使我們的客戶能夠創造並向世界提供他們的救生產品。我鼓勵大家從我們的網站 modeln.com 下載並閱讀 2024 年的收入狀況報告。

Let me conclude by saying that I'm pleased with our continued execution, and I am proud of the leverage we're showing on our bottom line as we navigate the end of our business model transition. We are also posting tangible proof points that our long-term growth levers of new logos, customer expansion and product innovation continues to mature and are materially contributing to our bookings. I'd also like to thank Model N centers around the world that continuing to focus on customer success, our dare core values and driving profitable growth.

最後，我想說，我對我們的持續執行感到滿意，並且我對我們在業務模式轉型結束時在底線上展現出的槓桿作用感到自豪。我們也發布了切實的證據，證明我們的新標誌、客戶擴展和產品創新等長期成長槓桿正在不斷成熟，並對我們的預訂量做出了實質的貢獻。我還要感謝世界各地的 Model N 中心繼續專注於客戶成功、我們敢於追求的核心價值並推動獲利成長。

Because of you, we kicked off the year with a solid Q1, and I am excited about the year ahead. With that, I'll turn the call over to John to discuss our Q1 financial results and offer our outlook for Q2 and fiscal 2024. John?

因為有你們，我們以穩健的第一季成績開啟了新的一年，我對未來的一年充滿期待。接下來，我將把電話轉給約翰，討論我們的第一季財務業績，並提供我們對第二季和 2024 財年的展望。約翰？

Thank you, Jason, and good afternoon to everyone on the call today. As Jason noted, we had a very solid start to fiscal year 2024 with Q1 results exceeding our expectations for revenue, adjusted EBITDA and free cash flow. I was particularly pleased by our free cash flow performance, which at $43.5 million for the trailing 12 months ending Q1 and was up 172% on a year-over-year basis.

謝謝你，傑森，祝今天電話會議中的各位下午好。正如 Jason 所指出的，我們在 2024 財年有一個非常穩健的開端，第一季的業績超出了我們對營收、調整後 EBITDA 和自由現金流的預期。我對我們的自由現金流表現特別滿意，截至第一季的 12 個月內，自由現金流為 4,350 萬美元，年增 172%。

Looking specifically at our financial results for the first quarter, total revenue grew 7% to $63.5 million, which exceeded the high end of our guidance range, driven by upside on both subscription and professional services revenue. Subscription revenue increased by 8% to $47.7 million while professional services revenue grew by 6% to $15.8 million and both were above guidance.

具體來看我們第一季的財務業績，總收入成長 7%，達到 6,350 萬美元，超過了我們預期範圍的高端，這得益於訂閱和專業服務收入的上漲。訂閱收入成長 8% 至 4,770 萬美元，專業服務收入成長 6% 至 1,580 萬美元，均高於預期。

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 first quarter, total non-GAAP gross profit was $38.3 million, representing a gross margin of 60.3%. Non-GAAP subscription gross margin was 68.4%, and non-GAAP professional services gross margin was 35.8% in Q1, in line with Q1 of last year.

就我們的獲利能力而言，請記住，我們將討論非 GAAP 數字，並且我們的收益報告中將提供我們結果的完整對帳。第一季度，非公認會計準則總毛利為 3,830 萬美元，毛利率為 60.3%。第一季非公認會計準則訂閱毛利率為 68.4%，非公認會計準則專業服務毛利率為 35.8%，與去年第一季持平。

Adjusted EBITDA was $9.9 million, representing a margin of 15.5% and above the high end of our guidance range for the quarter. And finally, non-GAAP earnings per share was $0.28 based on a fully diluted shares outstanding of $39.1 million. This was slightly below our guidance due to some variance on below the lines. Turning to our SaaS metrics for Q1, our SaaS ARR reached $134.8 million, which was an increase of $19 million or 16% versus Q1 of last year.

調整後的 EBITDA 為 990 萬美元，利潤率為 15.5%，高於本季指引範圍的高端。最後，基於完全稀釋流通股數 3,910 萬美元，非 GAAP 每股盈餘為 0.28 美元。由於以下情況存在一些差異，因此該數字略低於我們的預期。回顧第一季的 SaaS 指標，我們的 SaaS ARR 達到 1.348 億美元，比去年第一季增加了 1,900 萬美元，即 16%。

In addition, trailing 12 month SaaS net retention was 115% in Q1, these results were right in line with our expectations. As we discussed on last call, we are facing difficult comparisons for our SaaS metrics over the first two to three quarters of this year due to SaaS transition activity last year. Next quarter, our fiscal Q2 is expected to be the most difficult comparison.

此外，過去 12 個月 SaaS 淨留存率在第一季為 115%，這些結果完全符合我們的預期。正如我們在上次電話會議上討論的那樣，由於去年的 SaaS 轉型活動，我們在今年前兩到三個季度的 SaaS 指標比較中面臨著困難。下個季度，我們的財政第二季度預計將是最困難的比較。

However, we do expect growth to trend back up at the end of fiscal 2024 when we get back to more normal year over year comparisons. In terms of the balance sheet, we ended Q1 with $303 million in cash and equivalents, which was up $2 million sequentially from September.

然而，我們確實預計，到 2024 財年末，當我們恢復到更正常的同比水平時，成長趨勢將回升。就資產負債表而言，我們第一季末的現金和等價物為 3.03 億美元，比 9 月環比增加了 200 萬美元。

We also had sequential increases in accounts receivable at $83 million for Q1 and deferred revenue at $74 million for Q1 of due to a record quarter of invoicing. Finally, as mentioned, Q1 was a very strong quarter from a free cash flow standpoint, is trailing 12-month free cash flow increased to $43 million from $23 million last quarter.

由於創紀錄的發票季度，我們的應收帳款在第一季環比增加至 8,300 萬美元，遞延收入在第一季環比增加至 7,400 萬美元。最後，如上所述，從自由現金流的角度來看，第一季是一個非常強勁的季度，過去 12 個月的自由現金流從上一季的 2,300 萬美元增加到 4,300 萬美元。

Turning to remaining performance obligations are total RPO for Q1 was $349 million, which was up 3% on a year-over-year basis. The current portion of our RPO balance was up to $160 million, representing growth of 11% year-over-year and up 8% sequentially from Q4.

談到剩餘的履約義務，第一季的 RPO 總金額為 3.49 億美元，年增 3%。我們的 RPO 餘額的目前部分高達 1.6 億美元，年增 11%，季增 8%。

As I previously noted, our total RPO growth has been impacted over the last few years by long term SaaS transition deals, many of which had contract legs well in excess of three years, as renewals and other non-SaaS transition bookings become a bigger proportion of the total we are seeing in our average contract length and RPO return to a more normalized level.

正如我之前提到的，過去幾年來，我們的整體 RPO 成長受到了長期 SaaS 過渡交易的影響，其中許多交易的合約期限遠遠超過三年，因為續約和其他非 SaaS 過渡預訂在我們平均合約期限中看到的總量中所佔的比例越來越大，而 RPO 也回歸到了更正常的水平。

Looking ahead, as we said on our last call, we are still in a period business model transition during fiscal 2024, for solid growth in SaaS revenue will be partially offset by declines in maintenance revenue. Once we are completely through SaaS transitions and the business model normalizes, we believe that we can return to double digit total subscription growth over the medium term.

展望未來，正如我們在上次電話會議上所說，我們在 2024 財年仍處於業務模式轉型期，SaaS 收入的穩健增長將被維護收入的下降部分抵消。一旦我們完全完成 SaaS 轉型並且業務模式正常化，我們相信我們可以在中期內恢復兩位數的總訂閱成長。

And I would refer you to be investor deck on our website for more details on our midterm financial targets, which we outlined on our last earnings call. In terms of our guidance for the remainder of fiscal 2024, we are raising our outlook for subscription revenue and total revenue, reflecting our subscription performance in Q1 and maintaining our guidance for adjusted EBITDA and non-GAAP earnings per share, which calls for continued margin improvement versus last year.

我建議您參閱我們網站上的投資者資料，以了解有關我們中期財務目標的更多詳細信息，我們在上次收益電話會議上對此進行了概述。就我們對 2024 財年剩餘時間的指導而言，我們上調了對訂閱收入和總收入的預期，反映了我們第一季的訂閱表現，並維持了對調整後 EBITDA 和非 GAAP 每股收益的指導，這要求利潤率與去年相比繼續提高。

Specifically, for fiscal 2024, we expect total revenue to be in the range of $260.5 million to $263.5 million, with subscription revenue in the range of $193.5 million to $195.5 million and professional services revenue to be in the range of $67 million to $68 million. We expect adjusted EBITDA to be in the range of $48 million to $51 million and non-GAAP EPS to be between $1.25 and $1.32 per share based on a fully diluted share count of approximately 40.1 million shares.

具體來說，對於 2024 財年，我們預計總收入將在 2.605 億美元至 2.635 億美元之間，其中訂閱收入將在 1.935 億美元至 1.955 億美元之間，專業服務收入將在 6,700 萬美元至 6,800 萬美元之間。我們預計調整後的 EBITDA 將在 4,800 萬美元至 5,100 萬美元之間，非 GAAP EPS 將在每股 1.25 美元至 1.32 美元之間（基於完全稀釋的股份數量約為 4,010 萬股）。

For the second quarter of fiscal 2024, we expect total revenue to be in the range of $63.5 million to $64.5 million, with subscription revenue in the range of $48.5 million to $49 million and professional services revenue in the range of $15 million to $15.5 million. We expect adjusted EBITDA to be in the range of $9 million to $10 million, and for non-GAAP EPS, we are expecting a range of $0.24 to $0.27 per share based on a fully diluted share count of approximately 39.7 million shares.

對於 2024 財年第二季度，我們預計總收入在 6,350 萬美元至 6,450 萬美元之間，其中訂閱收入在 4,850 萬美元至 4,900 萬美元之間，專業服務收入在 1,500 萬美元至 1,550 萬美元之間。我們預計調整後的 EBITDA 將在 900 萬美元至 1,000 萬美元之間，對於非 GAAP EPS，我們預計每股盈餘將在 0.24 美元至 0.27 美元之間，基於完全稀釋的約 3,970 萬股股票數量。

As a reminder, there is some seasonality to our business, and our second fiscal this quarter is the period when we see increased expenses for payroll taxes and other benefits. As a result, the second quarter is typically the low watermark for adjusted EBITDA margin during the year.

提醒一下，我們的業務具有一定的季節性，本季的第二財季是薪資稅和其他福利支出增加的時期。因此，第二季通常是全年調整後 EBITDA 利潤率的低水位。

To summarize, Q1 was a strong start to fiscal 2024, and we continue to execute well. We're getting through the final stages of our business model transformation, while at the same time, still driving top line growth, margin improvement and strong free cash flow.

總而言之，第一季是 2024 財年的強勁開端，我們繼續表現良好。我們正處於商業模式轉型的最後階段，同時仍在推動營收成長、利潤率提高和強勁的自由現金流。

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

說完這些，我會將電話轉給接線員以解答任何問題。操作員？

Thank you. we will now be conducting a question-and-answer session. (Operators Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Ryan MacDonald, Needham & Co .

Ryan MacDonald，Needham & Co。

Hi, thanks for taking my question. Jason may be a start -- great to hear about the booking commentary and obviously the continued progress in the SaaS transition. You noted your remarks sort of this confidence in returning the double digit growth, and sort of growth improvement as we get into the later parts of the year, once some difficult comp sort of pass through.

你好，謝謝你回答我的問題。傑森可能是一個開始——很高興聽到有關預訂的評論以及 SaaS 轉型顯然持續取得的進展。您指出，您的言論表明，我們對於恢復兩位數成長充滿信心，而且隨著我們進入今年下半年，一旦一些困難的競爭得以解決，成長就會有所改善。

I guess, early in the year as you're sort of having pipeline building discussions and started to see some of that progression, can you talk about what the environment in terms of spending environment and that gives you confidence sort of in that trajectory, and in regards to the SaaS transitions, as we've now passed cost over the end of support date, how was the conversation shifted with the remaining customers?

我想，在今年年初，當您進行管道建設討論並開始看到一些進展時，您能否談談支出環境方面的環境，以及是什麼讓您對這一軌跡充滿信心，關於 SaaS 轉型，由於我們現在已經將成本轉嫁到了支持結束日期，與剩餘客戶的對話是如何轉變的？

Yeah, good series of questions there Ryan, right then back that. So first of all, on the macro environment, I think we are one of the first companies in our space in our fiscal Q2 last year to call out some deal obligation cycles and delayed SaaS transitions and will the softness in discretionary spend, as year went down we subsequently followed up that commentary with statements indicating that we didn't see the demand environment deteriorating anymore, I think as we come into this year.

是的，Ryan，這一系列問題問得很好，就回到剛才的問題。首先，就宏觀環境而言，我認為我們是去年第二財季業內第一批提出一些交易義務週期和延遲 SaaS 轉型以及可自由支配支出疲軟的公司之一，隨著年份的過去，我們隨後發表聲明跟進該評論，表明我們認為需求環境不再惡化，我認為隨著今年的到來。

We feel like we're in a more stable environment, particularly as we have a better -- the market that has a better sense of things like spend some invested exchange rate and and some of the other key metrics. So I would say the backdrop has not deteriorated. And I also think there are particular corner of the world, things like regulatory changes continue to drive demand.

我們感覺我們處在一個更穩定的環境中，特別是因為我們擁有更好的市場——對諸如支出、投資、匯率和其他一些關鍵指標等事情有了更好的認識。所以我想說背景並沒有惡化。我也認為，在世界的某個角落，監管變化等因素會持續推動需求。

And then in terms of, as I look at our pipeline this year, one of the things that means if we are expecting to have a nice contribution from new logos as well as our customer base, and we certainly see that some of the new logos posted in Q1, and it has a good pipeline as we look forward to share, so it's a great team on the new logo side. And then mentions of last call as well to that part of next year, we had a lot of customers that were at or below past transitions.

然後就今年的產品線而言，其中一件事意味著我們是否期望從新標識以及我們的客戶群中獲得良好的貢獻，我們當然看到第一季發布的一些新標識，並且它有一個很好的產品線，我們期待著分享，所以在新標識方面這是一個很棒的團隊。然後提到最後一次通話以及明年的部分，我們有很多客戶的轉換率處於或低於過去的轉換率。

And this year, we have essentially the full base starting to come back to us, really presenting the full opportunity to sell into the base (technical difficulty) And then in terms of now that we're officially passed and belief on December 31, when I look at our customer base now as we reported on our last cohort more than 80% converted process (technical difficulty).

今年，我們基本上已經讓整個客戶群開始回歸，這確實為我們提供了向客戶群銷售產品的完整機會（技術難度）。現在我們已經正式通過了 12 月 31 日的審核，我相信，當我們查看我們的客戶群時，正如我們報告的上一批客戶中，有超過 80% 的客戶已經轉換了流程。（技術難度）。

But I mean, literally talking about a handful of customers and have really good visibility into when those customers those will convert. And we're also converting (technical difficulty) move forward will continue to support event though we are while you're in transition, even though the support for on-premist has laps and that's then a message well received by our few remaining customers that are transitioning.

但我的意思是，實際上談論的是少數客戶，並且能夠很好地了解這些客戶何時會轉換。而且，我們也在轉換（技術難度），儘管我們正處於過渡期，但我們會繼續支援事件，即使對內部部署的支援已經結束，這也是我們正在過渡的少數剩餘客戶的良好反應。

It's great to hear. Maybe just as a follow up on product, a great to see the launching of price management wins within the sort of the semiconductor and high-tech arena. I'm just curious, as you think about the rollout of this offering to that segment of the customer base and the adoption curve, how do you expect that to compare relative to pricing management that you had on the life sciences side?

聽到這個消息真是太好了。也許只是作為產品的後續行動，很高興看到在半導體和高科技領域推出價格管理勝利。我只是好奇，當您考慮向該部分客戶群推出此產品和採用曲線時，您認為這與生命科學方面的定價管理相比如何？

And forgive me for not knowing, but is there any sort of regulatory impetus on the high-tech side that you might when support like you got on the core life sciences business? Thanks.

請原諒我不知道，但在高科技方面是否存在某種監管動力，您可能會獲得像在核心生命科學業務上的支持？謝謝。

Yeah, good question. So this particular new product on the high-tech side, it's not something driven by regulatory changes, its really impressive give the partnered with a couple of customers to build where oftentimes the price book and Arca price book workplaces are stored for that dynamics full time of market. for (technical difficulty) we get it to the front line and enable sales fabs to be in compliance with internal policies, yet also address some of the real-time competition that you see out there.

是的，好問題。因此，這種高科技方面的特定新產品並不是由監管變化驅動的，它真正令人印象深刻的是與幾個客戶合作建立價格手冊和 Arca 價格手冊工作場所，以便隨時了解市場的動態。對於（技術難度），我們將其帶到前線並使銷售工廠遵守內部政策，同時也解決了您在那裡看到的一些即時競爭。

So this is a product that is I think of it as a complement to our deal management products and I was built in conjunction with couple of customers. So and by the way, this is also something that has been asked for by other customers. So I think it's going to be very well received. We've got a customer advisory board coming up with a few weeks where we'll demonstrate this product.

因此，我認為這是一個產品，它是我們交易管理產品的補充，也是我與幾個客戶共同開發的。順便說一句，這也是其他客戶所要求的。所以我認為它會受到熱烈歡迎。我們將在未來幾週內成立一個客戶諮詢委員會來展示該產品。

We've got [rainmaker] coming up here June was of the year before we know and the between the standard enablement we're doing with our sales forward. I'm excited about its products, and I'd like to truly make a difference, particularly in these segments (technical difficulty) margins are facilities.

在我們知道之前，我們已經在六月迎來了 [rainmaker]，這是我們為銷售前進所做的標準支援之間的事。我對其產品感到很興奮，我希望真正有所作為，特別是在這些領域（技術難度）利潤就是設施。

Appreciate the color. Thanks for taking my questions.

欣賞色彩。感謝您回答我的問題。

(inaudible)

（聽不清楚）

Joe Vruwink, Baird.

喬·弗魯溫克，貝爾德。

Great. Thanks for taking my questions. Jason, I wanted to go back to the Bayer win, you mentioned in the comments they're thinking about future pipeline and wanting to ready the right technology at around the business strategy with those pipeline.

偉大的。感謝您回答我的問題。傑森，我想回到拜耳的勝利，你在評論中提到他們正在考慮未來的管道，並希望圍繞這些管道的業務策略準備正確的技術。

I think over the past year, the feedback from a lot of vendors surveying pharma has actually been kind of the opposite, we are hearing from customers they don't know what the pipeline is going to bring. And so they're kind of delaying new tech decisions, not the words in your mouth, but this seems more like offense at your customers is that may be more pervasive at beginning to become more of a offense of our decision making process?

我認為在過去的一年裡，許多調查製藥業的供應商的回饋實際上是相反的，我們從客戶那裡聽到他們不知道這條管道會帶來什麼。因此，他們在某種程度上是在推遲新的技術決策，這不是你嘴上說說而已，但這似乎更像是對客戶的冒犯，這種冒犯在開始時可能更為普遍，甚至可能成為對我們決策過程的冒犯？

And if that's true, what sort of Model N solutions might actually start to register an uptick relative to what the prevailing experiences as that?

如果這是真的，那麼相對於普遍的經驗，什麼樣的 Model N 解決方案實際上可能會開始出現上升趨勢？

Joe, thanks for the question. Joe, can you hear me? I have just been told we're having some audio issues.

喬，謝謝你的提問。喬，你聽得到我說話嗎？我剛剛被告知我們遇到了一些音頻問題。

So far, so good at you were breaking up earlier, but I hear you now.

到目前為止，你們之前分手的事情都很好，但我現在聽到了你們的聲音。

Okay, wonderful. Yeah, so this question, a drug pipeline and the customers playing offense or defense, I think is an interesting one. Some customers certainly have robust pipelines and a unique growth opportunity in front of them. Bayer is certainly one of those, obviously you've been selling Bayer in general on the in the news is they're going through a bit of a business model transition on their own and I think making strategic evolution on their different parts of the business isn't anything confidential.

好的，太棒了。是的，所以這個問題，藥品管道和採取進攻或防守的顧客，我認為是一個有趣的問題。有些客戶確實擁有強大的管道和獨特的成長機會。拜耳當然是其中之一，顯然你一直在新聞中推銷拜耳，他們自己正在經歷一些商業模式的轉型，我認為對其業務的不同部分進行戰略演變並不是什麼秘密。

It's obviously been well reported in the business trade with round up in the month end, so acquisition, but certainly in terms of how their partners with us, they're really excited about their pharma business. And I have the pipeline that differentiates them from some of their other partners in the industry, but they certainly do have a good pipeline of drugs coming up that they've been talking about.

顯然，月底的商業交易中已經充分報道了這一點，因此進行了收購，但就他們與我們的合作而言，他們對他們的製藥業務感到非常興奮。我擁有的研發線使他們有別於業內其他一些合作夥伴，但他們確實擁有他們一直在談論的一系列優質藥物。

And there is one of those companies that I guess it kind of affected revenue manage and their SAP customer. And they had quilty together a revenue management on solution that was some SAP's stuff, some custom stuff, some anecdotal stuff. And I think they finally got to a point where they just said, hey, there's so much ROI here, so much leakage that's happening, and so much infrastructure we're going to need as we're reinventing the company and refocusing on pharma and some of these launches, let's turn to the industry leader.

我猜其中有一家公司的收入管理及其 SAP 客戶受到了一定影響。他們共同製定了一個收入管理解決方案，其中包括一些 SAP 的東西、一些客製化的東西和一些軼事的東西。我認為他們最終會說，嘿，這裡有如此多的投資回報率，如此多的洩漏，以及我們在重塑公司、重新關注製藥和一些新產品時需要的如此多的基礎設施，讓我們轉向行業領導者吧。

And so of course, we were the beneficiary of that. I think the other important point I would mention on Bayer, they basically bought our core footprint to help with commercial and government pricing. And there's also, I think, a pretty interesting set of additional areas where we can help them after we get them live on this initial phase, additional modules in the US plus potential international expansion. So we're excited to welcome Bayer to the Model N family, and I think we can really help this iconic brand.

因此，我們當然是受益者。我想提到的關於拜耳的另一個重要點是，他們基本上購買了我們的核心足跡以幫助商業和政府定價。而且我認為，在初始階段讓他們上線後，我們還可以在一系列非常有趣的額外領域為他們提供幫助，包括在美國提供額外的模組以及潛在的國際擴張。因此，我們很高興歡迎拜耳加入 Model N 大家庭，我認為我們可以真正幫助這個標誌性品牌。

Okay. That's great. And then one for John, SaaS ARR up 16% and 1Q slower than that in Q2, just because of the comps and then trending back up towards year end, should we make the read that they're part 4Q SaaS growth is faster than what you just said in 1Q and so far in terms of your CRPO bookings and, where the pipeline stands as is everything is still kind of supportive of that outlook for a stronger second half of the year?

好的。那太棒了。然後問 John 一個問題，SaaS ARR 增長了 16%，第一季比第二季度慢，只是因為可比性，然後在年底呈回升趨勢，我們是否可以認為第四季度的 SaaS 增長比您剛才所說的第一季度和到目前為止的 CRPO 預訂量更快，而且渠道現狀如何，一切仍然支持下半年更強勁的前景？

Yeah, you hear me okay, We're struggling with the audio connection.

是的，你聽清楚了，我們正在努力解決音訊連線問題。

You're a bit quiet.

你有點安靜。

All right. Any better there?

好的。還有更好的嗎？

Yeah, much better.

是的，好多了。

Okay. So yeah, in terms of the SaaS ARR metric and in Q1 and then also the outlook for the year, the comments are correct, we did have a little bit of pressure on the year over year growth in Q1, and we expect that to be and even more difficult comparison in Q2, when you look at last year, I believe were up 40% year-over-year for that number. And so it's a pretty tough comp for Q2.

好的。所以，是的，就 SaaS ARR 指標和第一季度以及全年前景而言，這些評論是正確的，我們在第一季度的同比增長方面確實面臨一點壓力，我們預計第二季度的同比增長會更加困難，當你回顧去年時，我相信這個數字同比增長了 40%。因此，第二季的競爭相當激烈。

But then after Q2, we can see a path towards improving metrics over the second half of the year. And in closing out the year at a higher level, will still have to book some business between now and then. But we feel like we've got decent line of sight in terms of how that metric is going to perform over the course of the year.

但在第二季之後，我們可以看到下半年指標有所改善。並且為了以更高的水平結束這一年，從現在到那時仍然需要預訂一些業務。但我們覺得，對於該指標在今年全年的表現，我們已經有了相當清晰的認知。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

William McNamara, BTIG.

威廉·麥克納馬拉，BTIG。

Hi, guys. This is Bill on for MaC. I wanted to follow-up on the price management tool and tech question. Is there any insight you can give us about kind of the total addressable market you're seeing for this product?

嗨，大家好。我是 MaC 的 Bill。我想跟進價格管理工具和技術問題。您能否向我們介紹一下該產品的整體潛在市場？

Yeah. So I think we've talked about our high-tech and being around $1 billion in what we've found as we've been rolling out some of these new add-on products, they have the opportunity to provide anywhere from 10% to 30% uplift based on what our customer -- existing customers is paying us, these smaller products that were rolling out our add-on products, probably a better way to characterize them really do have a meaningful impact on our TAM. And they also give us fresh new things that we can bring into our customers and address issues that are top of mind.

是的。所以我想我們已經討論了我們的高科技，我們發現，當我們推出一些新的附加產品時，它們有機會根據我們的客戶——現有客戶向我們支付的費用，提供 10% 到 30% 的提升，這些推出的附加產品中的小產品，可能更好地描述它們確實對我們的 TAM 產生了有意義的影響。他們還為我們提供了新鮮事物，我們可以將這些事物帶給我們的客戶並解決他們最關心的問題。

So we're excited about this. And as I've said, I think in past calls, and this is no exception every new product that we build, we're actually building it in conjunction with a handful of customers that make sure we get the usage patterns and functionality, correct.

所以我們對此感到很興奮。正如我所說的那樣，我認為在過去的電話會議中，這也不例外，我們製造的每一個新產品，實際上都是與少數客戶一起製造的，以確保我們獲得正確的使用模式和功能。

For this product. We have the rights to be able to actually say those customers, but rest assured, this is being battle tested with some customers. I think it's going to be really well received as we share it with our customer advisory boards. Companies that would be great candidates for as well as bring at the rainmaker in a few months and demonstrate it.

對於這個產品。我們有權利真正地告訴這些客戶，但請放心，這正在與一些客戶進行實戰測試。我認為，當我們與客戶顧問委員會分享它時，它會受到熱烈歡迎。這些公司將是優秀的候選人，並在幾個月內帶來奇蹟並展示它。

Great, thanks for tanking my question.

太好了，謝謝你回答我的問題。

Adam Hotchkiss, Goldman Sachs.

高盛的亞當·霍奇基斯。

Great. Thanks for taking the questions. I'd be curious how you're positioning the sales force now that you're mostly past SaaS transitions, you see a significant amount of capacity that's being freed up here for customer success and other expansion activity. And then how do you think that piece impacts net revenue expansion if at all over the next few quarters and into next fiscal year?

偉大的。感謝您回答這些問題。我很好奇，既然你們已經基本完成了 SaaS 轉型，你們如何定位銷售隊伍，你們是否看到這裡有大量的產能被釋放出來用於客戶成功和其他擴展活動。那麼，您認為這對未來幾季以及下一個財年的淨收入成長有何影響？

Yeah. Thanks for the question, Adam. I'll take the first part of that. So on we -- the same sales force that's been selling SaaS transition than transitions on and sells add-on products or cross-sell, upsell and the three motions that we sales motions that we've talked about for cross-sell, upsell or adding new products are expanding the footprint moving into other divisions or moving into new geographies.

是的。謝謝你的提問，亞當。我將討論第一部分。因此，我們 — — 一直在銷售 SaaS 的銷售人員會轉型並銷售附加產品或交叉銷售、追加銷售，我們討論過的交叉銷售、追加銷售或添加新產品的三種銷售動議正在擴大業務範圍，進入其他部門或進入新的地區。

And so that kind of said, I think in response to one of the other questions at the top of the call that team the relationships that they've built going through SaaS transitions, I think uniquely positions them to identify these opportunities. And then particularly as customers get live and are stable in the cloud, it really opens up the full customer base to resell, because we had a sales force that was really load balance to handle SaaS transition.

所以，我想，在回答電話會議開頭的另一個問題時，我認為，團隊在經歷 SaaS 轉型過程中建立的關係，使他們能夠以獨特的方式識別這些機會。然後，特別是當客戶在雲端上線並穩定時，它確實打開了整個客戶群進行轉售，因為我們擁有一支真正能夠平衡負載以處理 SaaS 轉型的銷售團隊。

And now some of the upsells we haven't anticipated or we don't see the need for a large investments in the customer base sales force. One of the things I have talked about is that if you go back a couple of years ago, most of our resources, we're going to put it this way, our sales resources were disproportionately aimed at the customer base to make sure we didn't get stuck in the middle of the SaaS transition. We had to make some difficult trade-offs as a result of that.

現在，有些追加銷售是我們尚未預料到的，或者我們認為沒有必要對客戶群銷售團隊進行大量投資。我談到的一件事是，如果回顧幾年前，我們的大部分資源，我們會這樣說，我們的銷售資源不成比例地針對客戶群，以確保我們不會在 SaaS 轉型過程中陷入困境。因此，我們不得不做出一些艱難的權衡。

And so new logo does suffer a bit in terms of investments in '21 and '22. But knowing as we went into '23 that we were coming to the end of SaaS transitions, we did start to invest more in building out that new logo team to bring a little more balance in our sales capacity. And that's nice to start the year with that team posting a great quarter and see that there's still a meaningful opportunity on the new logos side.

因此，新標誌在 21 年和 22 年的投資方面確實受到了一些影響。但是，當我們進入 23 年時，我們知道 SaaS 轉型即將結束，因此我們確實開始投入更多資金來建立新標誌團隊，以使我們的銷售能力更加平衡。很高興看到團隊在新的一年裡取得了出色的季度業績，並且看到新標誌方面仍然存在有意義的機會。

Adam, this is John. I'll just chime in quickly on the on the net retention numbers. Just as a reminder, that net retention metric is going to track very closely to the SaaS ARR growth rate numbers if you look at historically you will see that the case, and so this year, we're going to have tough comparisons for the net retention number, just like we do on the ARR growth rate.

亞當，這是約翰。我只是想快速地談談網上保留數字。提醒一下，如果你回顧歷史，你會發現淨留存率指標將與 SaaS ARR 成長率數字非常接近，因此今年，我們將對淨留存率數字進行嚴格的比較，就像我們對 ARR 成長率所做的那樣。

If I look out a few year, and if we look at the mid-term target that we talked about on the last call where you have SaaS growth in the 15% to 20% range, in that scenario, I would expect net retention to normalize in the low to mid-teens. So call it kind of the [110% to 115%] range with the remainder of growth coming from new logo activity.

如果我展望幾年，如果我們看看上次電話會議上討論的中期目標，即 SaaS 增長率在 15% 到 20% 之間，在這種情況下，我預計淨留存率將在 15% 到 15% 之間正常化。所以稱之為 [110% 到 115%] 的範圍，其餘的成長來自新標誌活動。

Great. That's really helpful. And then just on the high-tech side, it's going to see the momentum there with Taiwan Semi. Could you just remind us how we should think about the long-term mix of that business compared to life sciences and what the path forward looks like from here given your a little less penetrated there?

偉大的。這真的很有幫助。而在高科技方面，台積電將迎來發展動能。您能否提醒我們，與生命科學相比，我們應該如何看待該業務的長期組合，以及鑑於您在該領域的滲透率較低，未來的道路將是什麼樣的？

Yeah, the revenue mix today is about 15% high-tech and the balances on life sciences. And my guess is that mix doesn't shift materially over time just because of a flywheel that spun up in life sciences, with SaaS transitions and then some of the ad on customer base sales and of course, new logos piling on top of that. Let's not say we're not excited about the high-tech business.

是的，今天的收入結構大約有 15% 來自高科技，其餘來自生命科學。我的猜測是，這種組合不會隨著時間的推移而發生實質性的變化，不會僅僅因為生命科學領域的飛輪旋轉、SaaS 轉型、以及一些針對客戶群銷售的廣告，當然還有新標誌的堆積。我們不能說我們對高科技產業不感興趣。

We did talk over the last couple of years during COVID and raising interest rates, that market did seem to get disproportionately more conservative relative to life sciences. But it's exciting to see the performance in Q1. And I'm very optimistic about this segment of the business as we look forward to the second half, we've got great products and we've got a really good high tech team. So I think they're set up every year.

在過去幾年的新冠疫情和升息期間，我們確實討論過，相對於生命科學，市場似乎變得異常保守。但看到第一季的表現還是令人興奮的。我對這個事業部門下半年的前景非常樂觀，我們有優秀的產品和非常優秀的高科技團隊。所以我認為它們每年都會設立。

Okay. Very helpful. Thanks, Jason. Thanks, John.

好的。非常有幫助。謝謝，傑森。謝謝，約翰。

Thanks, Adam.

謝謝，亞當。

Craig Hettenbach, Morgan Stanley.

摩根士丹利的克雷格·赫滕巴赫。

Yes. Thank you, Jason. Just going back to the cloud transition, Can you give a rough sense of how many customers are remaining? And then importantly, what type of indication is through discussion as to hear from these customers in terms of visibility that they'll move over for the course of the year?

是的。謝謝你，傑森。回到雲端轉型議題，您能大概了解還剩下多少客戶嗎？然後重要的是，透過討論可以得到什麼類型的指示，以便從這些客戶那裡了解他們將在一年內轉移的可見性？

Yeah. Thanks for that and Craig, good question. So we have committed to updating investors on the status SaaS transitions at the beginning of each year. So 85% at the end of last year. And that kind of implies were down roughly a handful of remaining customers of that remaining handful of remaining customer, and about remaining handful, there's really only a whole very large ones in there.

是的。謝謝 Craig，這個問題問得好。因此，我們承諾在每年年初向投資者通報 SaaS 轉型的現狀。去年年底這一比例為 85%。而這種說法意味著剩下的客戶大約只有少數，而剩下的少數客戶中，實際上只有非常大的客戶。

And so the number is small enough that we can play man demand, defense and have a really good sense in each one of these accounts when they're going to move, And I think we've got great visibility into the how these customers move over through the remainder of this fiscal year. And as I said in response to one of the past, question's a good point, just to clarify it again to reemphasize that for these customers that are actively engaged in working with us post end of life in December, we are continuing to be a great partner with them, support them and make sure we've got a great roadmap ahead. But we feel really good about the handful of remaining customers to convert.

因此，這個數字足夠小，我們可以根據需求進行防禦，並且能夠很好地了解每個帳戶何時會轉移，而且我認為，我們可以很好地了解這些客戶在本財年剩餘時間內的轉移情況。正如我在回答過去的一個問題時所說的那樣，這是一個很好的觀點，只是為了再次澄清這一點，再次強調，對於那些在 12 月產品生命週期結束後積極與我們合作的客戶，我們將繼續成為他們的良好合作夥伴，支持他們，並確保我們有一個偉大的未來路線圖。但我們對於剩餘的少數客戶能夠轉換感到非常高興。

Got it. And then just as a follow-up. I wanted to touch on data and analytics rainmaker you talked about it's a new product development in tandem with customers. I know it's early stages back less summer, but just kind of where things stand today and what are your thoughts in terms of commercializing some of these product?

知道了。然後只是作為後續行動。我想談談您談到的數據分析和雨人，這是與客戶共同開發的新產品。我知道現在還處於夏季復甦的早期階段，但就目前的情況而言，您對將這些產品商業化有何想法？

Yeah. That's also a great question, Craig. I think it's an interesting question and that some people say, when are we going to start to see data and analytics products being sold, we already have great examples of products that fit that category for us today. Things like global price management, global launch excellence, 340B vigilance, that are -- our products that are getting a lot of attention from prospects and customers today.

是的。這也是一個很好的問題，克雷格。我認為這是一個有趣的問題，有些人會說，我們什麼時候才能開始看到數據和分析產品被銷售，我們今天已經擁有適合該類別的產品的很好的例子。諸如全球價格管理、全球發布卓越、340B 警戒等——我們的產品如今受到了潛在客戶和客戶的廣泛關注。

But specific to your question last year -- last summer at rainmaker, we announced two new products, formulary access, and syndicated customer master, and we're well on our way to delivering those products. We've got them slated for release in Q3 of this year. And both of those products also are being co-developed with us by top 20, top 50 pharma companies.

但具體到您去年提出的問題——去年夏天，在 Rainmaker，我們宣布了兩款新產品，即處方訪問和聯合客戶主控，我們正在順利交付這些產品。我們計劃於今年第三季發布它們。這兩款產品也由前 20 名和前 50 名的製藥公司與我們共同開發。

So I think we're getting really good insight into the problem statement what really matters to these customers. Formulary access is just ensuring that the hundreds of millions of dollars, patient access fees that pharma companies pay that they're actually getting that access, it's remarkable today, this isn't really being audited. It's manually spot check for some of the bigger therapies, but we'll provide a solution that will provide full coverage on formulary access audit.

所以我認為我們對問題陳述有了很好的了解，知道這些客戶真正關心的是什麼。處方集訪問只是為了確保製藥公司支付的數億美元患者訪問費用確實能夠獲得，這在今天是令人驚訝的，但這並沒有真正受到審計。對於一些較大的療法，我們需要手動抽查，但我們將提供一個解決方案，對處方集訪問審計提供全面覆蓋。

And then the second is what we're calling syndicated customer master. And think of this as an industry, gold copy of the payers and providers and the different purchasing programs that they're eligible to participate in with the manufacturers falls another big pain point as well. So we're on track to deliver those two products and looking forward to it and thanks to our customers, we've had a great group guiding us through the development life cycle over the last three, four quarters.

第二個是我們所謂的聯合客戶主控。將其視為一個行業，付款人和提供者的黃金副本以及他們有資格與製造商一起參與的不同採購計劃也是另一個大痛點。因此，我們正按計劃推出這兩款產品，並對此充滿期待，同時感謝我們的客戶，在過去的三、四個季度裡，我們有一個優秀的團隊指導我們完成整個開發生命週期。

Great, thanks a lot.

太好了，非常感謝。

Thanks Craig.

謝謝克雷格。

Thanks Craig.

謝謝克雷格。

Samad Samana, Jefferies.

薩瑪德·薩馬納（Samad Samana），傑富瑞集團。

Hi, good evening, thanks for taking my questions. Maybe first on just the 2Q guidance and if you can remind us, I think it implies that professional services revenue will be kind of flattish quarter over quarter, if I look back at historical seasonality, you get a bit more of an uptick. Can you just remind us about the seasonality and if there's something that we're missing, just thinking to the guidance?

大家好，晚上好，感謝您回答我的問題。也許首先只是關於第二季度的指引，如果你能提醒我們的話，我認為這意味著專業服務收入將與上一季度持平，如果我回顧歷史季節性，你會發現收入會略有上升。您能否提醒我們有關季節性的問題，以及我們是否遺漏了什麼，是否可以參考指導？

Yeah. this is John. I'll take that one. And it's a good question. So you are correct typically in Q2, we see a little bit of an uptick from a seasonal standpoint in this business. However, this quarter, we're having a little bit of a challenge with a small handful of projects that we can't get underway. And so we're heading to go, but the customers aren't quite ready.

是的，我是約翰。我要那個。這是個好問題。所以您說得對，通常在第二季度，從季節性的角度來看，我們會看到該業務略有上升。然而，本季我們遇到了一些挑戰，少數專案無法啟動。所以我們要出發了，但是顧客還沒準備好。

And so we've had a few delays in Q2. And so it's basically some timing issues that we think we can fix over the course of Q3 and Q4. I would note that, that business actually had a record quarter in bookings in Q1. So we exited Q1 with very strong backlog. We just have a little bit of a timing issue in Q2 here.

因此我們在第二季度遇到了一些延遲。因此，這基本上是一些時間問題，我們認為我們可以在第三季和第四季期間解決這些問題。我要指出的是，該業務在第一季的預訂量實際上創下了紀錄。因此，我們在第一季結束時就擁有非常強勁的積壓訂單。我們在第二季遇到了一點時間問題。

Understand that's helpful. And then anything zooming out. Just you mentioned booking and I was going to ask in a slightly different way, I know you said revenue mixshift shouldn't changed materially between life sciences and high-tech. But when you think about this year, do you think that high tech will increases and mix as a percentage of bookings is given the strength you saw in the first quarter or any help that you're seeing versus what you'd normally team mix-wise and how is the pipeline compare, even if we're thinking into revenue conversion yet?

明白這一點很有幫助。然後任何東西都縮小了。剛才您提到了預訂，我本來想換一種方式問，我知道您說生命科學和高科技之間的收入組合轉變不應該發生實質性變化。但是當您考慮今年時，您是否認為高科技將會增加，並且混合預訂的百分比會隨著您在第一季度看到的強勁勢頭而增加，或者與您通常看到的團隊組合相比有什麼幫助，以及渠道如何比較，即使我們已經考慮收入轉換了？

Yeah, when we take a look at in terms of the bookings mix as well as the revenue mix, I don't see there being a tectonic shift in either including bookings. I will say this and you see it with our color commentary on Q1. We have definitely seen high-tech improve that as a end market over the last 12 to 18 months, and we started I would say year ago, we started see our existing customers, expanding their relationship with us and expanding usage of Model N. And then it's been encouraging to see a new logo pipeline build and matriculate through the two new logos in the quarter.

是的，當我們從預訂組合和收入組合的角度來考慮時，我認為預訂方面並沒有根本性的變化。我會這麼說，您可以透過我們對 Q1 的彩色評論看到這一點。在過去的 12 到 18 個月裡，我們確實看到高科技改善了終端市場，我想說，一年前我們就開始關注現有客戶，擴大他們與我們的關係，擴大 Model N 的使用範圍。令人鼓舞的是，看到新標誌管道在本季建立並透過兩個新標誌進入市場。

Great. Thanks for taking my questions.

偉大的。感謝您回答我的問題。

Thanks, Samad.

謝謝，薩馬德。

Brian Peterson, Raymond James.

布萊恩彼得森、雷蒙詹姆斯。

Hi team, this is Jonathan McCary on Brian tonight. Thanks for taking the question. Some question on sort of midterm targets. So that 15% to 20% subscription growth in the midterm was, as you mentioned low teens coming from expansion, just kind of curious is that do you think that's a reasonable goal with your current product portfolio or as capital require more organic or inorganic investments needed to drive that knid of longer term?

大家好，我今晚 Brian 節目的喬納森·麥卡里 (Jonathan McCary)。感謝您回答這個問題。關於中期目標的一些問題。因此，正如您所提到的，中期訂閱量增長 15% 到 20% 是來自擴張的低位增長，只是有點好奇，您認為對於您當前的產品組合來說，這是一個合理的目標嗎？或者因為資本需要更多的有機或無機投資來推動這種長期成長？

Yeah, this is John. I'll chime in that. That is largely based on what we have today. We're on the brink here rolling out additional products and data and analytics and that would ultimately factor that into that those numbers in a few years as well. But I would say it's predominantly selling what's on the truck today.

是的，這是約翰。我也會附和這一點。這很大程度上是基於我們今天所擁有的。我們即將推出更多產品、數據和分析，最終也會在幾年後將這些因素計入這些數字中。但我想說的是，今天它主要銷售卡車上的東西。

Got it. Got it. And then on the international opportunity that's still kind of setting up mid-single digits range. Would you expect that maybe just shift over time? And what are some of the key gaining factors keeps on expanding internationally?

知道了。知道了。然後就國際機會而言，這仍然處於中等個位數範圍內。您是否認為這種情況可能只是隨著時間而改變？那麼，繼續向國際化擴張的關鍵制勝因素有哪些呢？

Well. So I guess this is actually a really interesting question. So if you look at most of our customers today, they are global pharma companies and we've opened them in their US operations summer headquartered here summer. But nearly all of them have off operations in AMEA just by definition of being large global pharma companies.

出色地。所以我想這其實是一個非常有趣的問題。因此，如果你看看我們今天的大多數客戶，他們都是全球製藥公司，我們已在他們的美國業務部門開設了夏季總部。但幾乎​​所有這些公司都已在 AMEA 開展業務，因為它們是大型全球製藥公司。

The thing that this has allowed us to do is we have actually worked with a number of these customers are in partnership to build a couple of great products that I would say are functionally complete today like the global tender management and global price management and then I suppose you could add a third on global launch excellence, which Apellis took this quarter to complement our global price management.

這使我們能夠與許多客戶合作開發一些出色的產品，我認為這些產品目前在功能上已經很完善，例如全球招標管理和全球價格管理，然後我想您可以在全球發布卓越方面添加第三個功能，Apellis 本季度採用了這些功能來補充我們的全球價格管理。

So this motion of servicing and selling to North American global companies has allowed us to partner with them with to build out products that are functionally complete for the European market. I think like most companies as they start to move into other geographies, sales coverage is always one of the things you have to tackle.

因此，向北美全球公司提供服務和銷售的措施使我們能夠與他們合作，為歐洲市場打造功能齊全的產品。我認為，就像大多數公司開始進入其他地區一樣，銷售覆蓋率始終是你必須解決的問題之一。

We do -- we have started invest in some headcount and region, we also trying headcount in region with global accounts because a lot of the purchasing decisions do involve folks in the US. So I'm excited about the products we have and really just over time is about scaling and making sure that we've got the right selling motions and sales covered in the region.

我們確實已經開始對一些員工和地區進行投資，我們也嘗試在擁有全球帳戶的地區進行員工投資，因為許多採購決策確實涉及美國人。因此，我對我們的產品感到非常興奮，而且實際上，隨著時間的推移，我們會擴大規模並確保我們在該地區擁有正確的銷售動向和銷售覆蓋範圍。

Thank you.

謝謝。

Thanks, Jon.

謝謝，喬恩。

Pat Walravens, Citizens JMP.

Pat Walravens，公民 JMP。

Hi, this Aaron Kimson on for Pat. Of the 15 customers that accounted for about 53% your revenue on September 30. How should we think about where they are in their cloud transition relative to the long tail of customers that account for the other 47% sort of the revenue? Thanks.

大家好，我是 Aaron Kimson，代表 Pat。這 15 位客戶約佔您 9 月 30 日收入的 53%。相對於佔另外 47% 收入的長尾客戶，我們該如何看待他們在雲端轉型中的位置？謝謝。

Yeah, this is John. So I think you're referring to the disclosures in the Q's and K's about the top customers. I would say a high percentage of those have either completed or in process on SaaS transitions. And so that number's typically calculated on a total revenue number, which would include both subscription and services. and so companies that are underway in a SaaS transition, may be showing up on that as well.

是的，這是約翰。所以我認為您指的是 Q 和 K 中有關頂級客戶的披露。我想說，其中很大一部分已經完成或正在進行 SaaS 轉型。因此，該數字通常是根據總收入數字計算的，其中包括訂閱和服務。正在進行 SaaS 轉型的公司也可能顯示在該數字上。

Got it.

知道了。

Thank you. I would like to turn the call over to Jason Blessing for closing remarks.

謝謝。我想將電話轉給 Jason Blessing 做最後發言。

Thank you, operator, and thank you, everyone, for joining us today. As we discussed on today's call, we started out our fiscal 2024 with a good quarter and once again, delivered strong, profitable growth. I really appreciate all of our employees, customers and partners for supporting us. And thanks again for joining us today. And have a wonderful night.

謝謝接線生，也謝謝大家今天加入我們。正如我們在今天的電話會議上所討論的那樣，我們在 2024 財年有一個良好的開端，並且再次實現了強勁的盈利增長。我非常感謝所有員工、客戶和合作夥伴對我們的支持。再次感謝您今天加入我們。祝您有個美好的夜晚。

This concludes today's teleconference. You may disconnect your lines.

今天的電話會議到此結束。您可以斷開線路。