N-Able Inc (NABL) 2024 Q2 法說會逐字稿

Thank you for your patience. The N-able second-quarter 2024 earnings call will begin shortly. (Operator Instructions)

感謝您的耐心等待。N-able 2024 年第二季財報電話會議即將開始。（操作員說明）

Welcome to the N-able's second-quarter 2024 earnings call. My name is Sam, and I will be coordinating your call today. I will now hand you over to your host, Griffin Gyr, to begin. Griffin, please go ahead.

歡迎參加 N-able 的 2024 年第二季財報電話會議。我叫 Sam，今天我將協調您的電話。現在我將把您交給主持人格里芬吉爾開始。格里芬，請繼續。

Thanks, operator, and welcome, everyone, to N-able's second-quarter 2024 earnings call. With me today are John Pagliuca, N-able's President and CEO; and Tim O'Brien, EVP and CFO.

感謝營運商，歡迎大家參加 N-able 的 2024 年第二季財報電話會議。今天和我在一起的有 N-able 總裁兼執行長 John Pagliuca；以及執行副總裁兼財務長 Tim O'Brien。

Following our prepared remarks, we will open the line for a question-and-answer session. This call is being simultaneously webcast on our Investor Relations website at investors.n-able.com. There, you can also find our earnings press release, which is intended to supplement our prepared remarks during today's call.

在我們準備好的發言之後，我們將開通問答環節。本次電話會議同時在我們的投資人關係網站 Investors.n-able.com 上進行網路直播。在那裡，您還可以找到我們的收益新聞稿，該新聞稿旨在補充我們在今天的電話會議上準備的言論。

Certain statements made during this call are forward-looking statements, including those concerning our financial outlook, our market opportunities, and the impact of the global economic environment on our business. These statements are based on currently available information and assumptions, and we undertake no duty to update this information except as required by law. These statements are also subject to a number of risks and uncertainties, including those highlighted in today's earnings release and our filings with the SEC.

本次電話會議中所做的某些陳述屬於前瞻性陳述，包括有關我們的財務前景、市場機會以及全球經濟環境對我們業務的影響的陳述。這些聲明是基於目前可用的資訊和假設，除非法律要求，否則我們不承擔更新此資訊的義務。這些聲明也受到許多風險和不確定性的影響，包括今天的收益報告和我們向 SEC 提交的文件中強調的風險和不確定性。

Additional information concerning these statements, and the risks and uncertainties associated with them is highlighted in today's earnings release and in our filings with the SEC. Copies are available from the SEC or on our Investor Relations website.

有關這些聲明以及與之相關的風險和不確定性的更多資訊在今天的收益報告和我們向 SEC 提交的文件中得到強調。副本可從 SEC 或我們的投資者關係網站取得。

Furthermore, we will discuss various non-GAAP financial measures on today's call. Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures. A reconciliation of certain GAAP to non-GAAP financial measures discussed on today's call is available on our earnings press release and our Investor Relations website.

此外，我們將在今天的電話會議上討論各種非公認會計準則財務指標。除非另有說明，當我們提到財務指標時，我們將指的是非公認會計準則財務指標。今天電話會議上討論的某些 GAAP 與非 GAAP 財務指標的調整表可在我們的收益新聞稿和投資者關係網站上找到。

Now I will turn the call over to John.

現在我將把電話轉給約翰。

Thank you, Griffin, and welcome to everyone joining us on the call. Today, I will discuss our second-quarter results, our progress on top business objectives, and share an update on the market environment and other strategic initiatives.

謝謝格里芬，歡迎大家加入我們的電話會議。今天，我將討論我們的第二季業績、我們在主要業務目標方面的進展，並分享有關市場環境和其他策略舉措的最新情況。

Let's start with our results, where we exceeded the high end of our top and bottom-line guidance. Revenue was $119.4 million, growing approximately 13% year over year on a reported and on a constant currency basis. And adjusted EBITDA was $46.8 million, representing an adjusted EBITDA margin of 39%. This marks our seventh consecutive quarter operating north of the Rule of 45 on a constant currency revenue growth and adjusted EBITDA basis.

讓我們從我們的結果開始，我們超出了頂線和底線指導的上限。營收為 1.194 億美元，按報告和固定匯率計算，年增約 13%。調整後 EBITDA 為 4,680 萬美元，調整後 EBITDA 利潤率為 39%。這標誌著我們連續第七個季度在貨幣收入成長和調整後的 EBITDA 基礎上超出 45 規則的範圍。

Security was a standout theme in the quarter. Small and medium-sized businesses are feeling acute pressure to protect their operations. According to the US Chamber of Commerce Small Business Index report, 60% of surveyed companies cite cybersecurity as a top concern. Our extensive security portfolio of advanced endpoint detection and response, managed detection and response, password management and email protection offers the critical protection they deserve.

安全是本季的一個突出主題。中小型企業正感受到保護營運的巨大壓力。根據美國商會小型企業指數報告，60% 的受訪企業將網路安全視為最關心的問題。我們廣泛的安全產品組合包括進階端點偵測和回應、託管偵測和回應、密碼管理和電子郵件保護，提供了他們應得的關鍵保護。

As one testament to our success in delivering enterprise-grade protection to the SMB, we now protect approximately 1.8 million endpoints with our EDR solution. Powerful capabilities and our frictionless buying experience are key to the success. Enabling one-minute deployment, self-provisioning, and easy configuration across the MSP's multi-tenant environment helped this robust security solution seamlessly protect SMBs while saving our MSP's time and money.

我們現在透過 EDR 解決方案保護約 180 萬個端點，證明了我們成功為中小型企業提供企業級保護。強大的功能和我們順暢的購買體驗是成功的關鍵。在 MSP 的多租戶環境中實現一分鐘部署、自我配置和輕鬆配置，有助於這項強大的安全解決方案無縫保護中小型企業，同時節省 MSP 的時間和金錢。

Our newly launched MDR solution is also resonating. While still in the early innings, MDR is tracking as one of our fastest-growing SKUs at this stage of its life cycle and with a considerable bright spot in the quarter. N-able MDR augment MSP operations, empowering them to provide human eyes on glass without burdening themselves with increased internal staff. This democratizes MSP's ability to add human interpretation to secure alerts and incidents, a true game changer.

我們新推出的 MDR 解決方案也引起了共鳴。儘管仍處於早期階段，MDR 已成為我們生命週期現階段成長最快的 SKU 之一，並且在本季度有相當大的亮點。N-able MDR 增強了 MSP 的運營，使他們能夠在玻璃上提供人眼，而無需增加內部人員的負擔。這使 MSP 能夠添加人工解釋來保護警報和事件，從而實現真正的遊戲規則改變者。

We are confident that we are well positioned to continue penetrating this fast-growing multibillion-dollar MDR market.

我們相信，我們有能力繼續滲透這個快速成長的數十億美元的 MDR 市場。

While stopping an attack is paramount, businesses must also ensure that they have software systems in place to recover data due to a successful cyber-attack, natural disaster, unexpected outage, or any event that could cause data loss.

雖然阻止攻擊至關重要，但企業還必須確保擁有適當的軟體系統，可以在成功的網路攻擊、自然災害、意外中斷或任何可能導致資料遺失的事件時復原資料。

Cove, our data protection solution does just that. With Cove, MSPs can quickly, comprehensively, and affordably restore data and get back to business. Our Microsoft 365 backup solution is now protecting 2.4 million users, and we continue to grow our share in this critical data protection market segment. Security is a priority across organizations.

Cove，我們的資料保護解決方案就是這樣做的。借助 Cove，MSP 可以快速、全面且經濟地恢復資料並恢復業務。我們的 Microsoft 365 備份解決方案現已保護 240 萬用戶，並且我們在這項關鍵資料保護細分市場中的份額持續成長。安全是整個組織的首要任務。

Our quarterly results reflect this paradigm with data protection and the security product group leading our growth. With rising threat levels and cyber regulatory requirements creating considerable pressure and risk, we are steadfast believers in the long-term demand for security software and are proud to bring MSPs and SMBs, the critical protection they deserve, efficiently integrated into our IT management platform.

我們的季度業績反映了這種資料保護範例和引領我們成長的安全產品組。隨著威脅等級的不斷上升和網路監管要求帶來了相當大的壓力和風險，我們堅信對安全軟體的長期需求，並自豪地將MSP 和SMB（他們應得的關鍵保護）有效地整合到我們的IT 管理平台中。

Let's now look at the progress made on our top business objectives. Our product development engine continues to deliver new capabilities. In data protection, we dramatically improved our variable retention capabilities, allowing partners to meet changing legal and compliance requirements.

現在讓我們來看看我們的首要業務目標所取得的進展。我們的產品開發引擎不斷提供新功能。在資料保護方面，我們大大提高了變數保留能力，使合作夥伴能夠滿足不斷變化的法律和合規要求。

We also further bolstered Cove's PSA integration capabilities. This PSA integration highlights product usage information, greatly enhancing the ease of billing. These strong value-added capabilities with clear use cases, build on our foundational product advantages of cloud-first multi-tenant architecture and favorable cost of ownership. We continue to further cost position as a trusted protector of what our enterprise's most critical assets, data.

我們也進一步增強了 Cove 的 PSA 整合能力。這種 PSA 整合突顯了產品使用訊息，大大提高了計費的便利性。這些強大的增值功能和清晰的用例，建立在我們的雲端優先多租戶架構和有利的擁有成本的基礎產品優勢之上。我們將繼續鞏固作為企業最關鍵資產數據的值得信賴的保護者的地位。

We also made great progress with our RMM platforms. One exciting update is the strengthening of our identity centralization management capabilities. We now offer our partners an automated means of provisioning and deprovisioning users into N-able. This highly requested feature is a powerful time-saving enhancement.

我們的 RMM 平台也取得了巨大進展。一項令人興奮的更新是加強我們的身分集中管理能力。現在，我們為合作夥伴提供了一種將使用者配置和取消配置到 N-able 的自動化方法。這項備受期待的功能是一項強大的節省時間的增強功能。

MSPs face considerable complexity and often tedious repetitive process as they manage IT systems for multiple heterogeneous clients. Efficiency boosting improvements like identity centralization are critical for scaling their operations. These product efforts are resonating in the market.

MSP 在為多個異質客戶管理 IT 系統時面臨相當複雜的情況，而且通常是乏味的重複過程。身份集中化等提高效率的改進對於擴大營運規模至關重要。這些產品的努力在市場上引起了共鳴。

N-central, our leading RMM platform, led the way in our new customer acquisition motion, representing four of the top five new customer deals in the quarter. And in central, customer list rose over 20% year over year. A growing number of MSP partner advocates and the strong presence of N-able MSPs on the top third-party MSP industry list gives us confidence that our improvements are meeting the mark. Our mission is to empower MSPs with software that makes IT simpler and safer and we are delivering.

N-central 是我們領先的 RMM 平台，在我們的新客戶獲取行動中處於領先地位，佔本季度前 5 名新客戶交易中的 4 名。在中部地區，客戶數量較去年同期成長超過 20%。越來越多的 MSP 合作夥伴擁護者以及 N-able MSP 在頂級第三方 MSP 行業名單中的強勢表現讓我們相信我們的改進正在達到目標。我們的使命是為 MSP 提供軟體，使 IT 更簡單、更安全，我們正在實現這一目標。

On the go-to-market front, we made key advancements. From a geographic perspective, we invested in our direct sales motion in the German market at the beginning of the year. While we are still in the early part of the investment curve, lead generation has already nearly doubled. With the region representing significant GDP and MSP spending, we believe this investment will have a strong return over the coming months and years.

在進入市場方面，我們取得了重大進展。從地域角度來看，我們年初就在德國市場投入了直銷行動。雖然我們仍處於投資曲線的早期部分，但潛在客戶的產生已經幾乎翻了一番。由於該地區 GDP 和 MSP 支出龐大，我們相信這項投資將在未來幾個月和幾年內獲得強勁回報。

We are also seeing success with our business of security and co-master disaster recovery classes. These programs serve the dual purpose of educating customers on our product set and connecting them with MSPs, enabling them to learn from their peers.

我們也看到我們的安全業務和災難復原課程取得了成功。這些計劃具有雙重目的：向客戶介紹我們的產品組合，並將他們與 MSP 聯繫起來，使他們能夠向同行學習。

Strategic repairing, a human in the loop approach with efficient digital initiatives is part of our customer engagement model that allows us to profitably access the fragmented SME market, and we believe that our go beyond technology model is resonating with our partners and prospects.

策略修復，一種具有高效數位化舉措的人在環方法，是我們客戶參與模式的一部分，使我們能夠在分散的中小企業市場中獲利，並且我們相信，我們超越技術的模式正在與我們的合作夥伴和潛在客戶產生共鳴。

We are also seeing traction with our direct and upmarket customer segments. N-central IT sales continue to grow at a fast clip, and we saw continued success with larger enterprise-focused MSPs. This success reflects both market trends and our operational achievement. From a market perspective, we have seen increasing IT complexity, prompting larger enterprises to outsource portions of their work to specialized mature MSPs.

我們也看到了我們的直接和高端客戶群的吸引力。N-central IT 銷售額持續快速成長，我們看到以企業為中心的大型 MSP 持續取得成功。這一成功反映了市場趨勢和我們的營運成就。從市場角度來看，我們看到 IT 複雜性不斷增加，促使大型企業將部分工作外包給專業的成熟 MSP。

And on the operational front, our product innovation expands our appeal across the market. Our recognition on the MES mid-market 100 stands as a testament to our success in this sector.

在營運方面，我們的產品創新擴大了我們在市場上的吸引力。我們對 MES 中階市場 100 強的認可證明了我們在該領域的成功。

Now turning to an update on our long-term contract initiative and the market environment. We entered 2024 with a strategic objective to transform our customer relationship. As the MSP market matures, so have our customer needs, scaling MSPs prefer operational predictability and stability over consumption level flexibility.

現在談談我們的長期合約計劃和市場環境的最新情況。進入 2024 年，我們的策略目標是轉變我們的客戶關係。隨著 MSP 市場的成熟，我們的客戶需求也隨之成熟，與消費水準靈活性相比，擴展 MSP 更喜歡營運可預測性和穩定性。

To meet this growing demand and to drive a more predictable commercial relationship for N-able, we ramped up our effort to transition customers from consumption and, or month-to-month contracts to annual multiyear agreements.

為了滿足這種不斷增長的需求並推動 N-able 建立更可預測的商業關係，我們加強了力度，將客戶從消費和/或按月合約轉變為年度多年協議。

We began the year with less than 10% of revenue from annual multiyear deals. Now approximately 40% is from long-term contracts, and we expect most of our revenue will be long-term committed MRR by the end of the year. We believe this initiative cements our position as a strategic partner with our customers' operations and will drive stronger alignment and better long-term economics for both sides.

今年年初，我們的年度多年交易收入不到 10%。現在大約 40% 來自長期合同，我們預計到年底我們的大部分收入將來自長期承諾的 MRR。我們相信，這項措施鞏固了我們作為客戶營運策略合作夥伴的地位，並將推動雙方更緊密的合作和更好的長期經濟效益。

Providing our MSPs predictability drives multiple benefits for N-able. We believe entering into long-term contracts with our customers will help minimize future downward spending fluctuations and support strong gross retention. This initiative also frees up our partner success resources, allowing them to spend more time on symbiotic expansion-focused discussions, which can help drive high cross-sell and net retention.

為我們的 MSP 提供可預測性可以為 N-able 帶來多重好處。我們相信，與客戶簽訂長期合約將有助於最大限度地減少未來支出的下行波動，並支持強勁的總保留率。這項舉措也釋放了我們合作夥伴的成功資源，使他們能夠將更多時間花在以共生擴張為重點的討論上，這有助於推動高交叉銷售和淨保留。

We are confident that long-term contracts are the right strategy for sustained success. That said, there have been near-term negative financial impact as customers optimize their estates before signing long-term deals.

我們相信，長期合約是持續成功的正確策略。也就是說，由於客戶在簽署長期協議之前優化他們的資產，短期內會產生負面的財務影響。

Turning to the market. As MSPs continue to scale and strive for operational excellence, they remain cost diligent and face tight customer budgets. The endpoint security space is also maturing. Although these factors have weighed on our growth this year, our channel checks with MSPs remain positive, and MSPs continue to provide mission-critical IT and security services to hundreds of thousands of organizations globally.

轉向市場。隨著 MSP 不斷擴大規模並努力追求卓越運營，他們仍然注重成本控制並面臨緊張的客戶預算。端點安全領域也在日趨成熟。儘管這些因素影響了我們今年的成長，但我們與 MSP 的通路檢查仍然積極，並且 MSP 繼續為全球數十萬個組織提供任務關鍵型 IT 和安全服務。

Customers continue to grow their business with N-able, with our bookings up 20% year over year. And while we navigate short term, our focus is on investing and executing with rigor to drive enterprise value over the long term.

客戶透過 N-able 持續發展業務，我們的預訂量年增 20%。雖然我們只關注短期，但我們的重點是嚴格投資和執行，以推動企業的長期價值。

Our game is fixed on two clear objectives. One top objective is modernizing our IT management platform. Modernization efforts have already delivered a new cloud management capabilities, core performance upgrades and a streamlined user experience. We believe that continuing to execute the strategic focus area will allow us to capture a broader and deeper slice of the expanding SMB IT estate and propel our growth.

我們的遊戲有兩個明確的目標。我們的首要目標之一是實現 IT 管理平台的現代化。現代化工作已經提供了新的雲端管理功能、核心效能升級和簡化的使用者體驗。我們相信，繼續執行策略重點領域將使我們能夠在不斷擴大的中小型企業 IT 產業中獲得更廣泛、更深入的份額，並推動我們的成長。

Another objective is deepening our presence in security. Protection and resilience are paramount to customers and security and cloud backup spending generally projected to grow faster than broader IT budgets. We believe Cove, MDR, and our powerful IT management platform, which is tailored to MSP's unique needs positions us to win in these attractive growth categories.

另一個目標是深化我們在安全方面的存在。保護和彈性對客戶來說至關重要，而安全和雲端備份支出通常預計會比更廣泛的 IT 預算成長得更快。我們相信 Cove、MDR 以及我們強大的 IT 管理平台（根據 MSP 的獨特需求量身定制）使我們能夠在這些有吸引力的成長類別中獲勝。

With that, I would like to turn the call over to Tim to discuss our financial results and outlook. And then I'll circle back for some closing remarks. Tim?

因此，我想將電話轉給提姆，討論我們的財務表現和前景。然後我會回過頭來發表一些結束語。提姆？

Thank you, John, and thank you all for joining us today. Our second-quarter results were strong, exceeding guidance on the top and bottom line. SMEs and MSPs continue to rely on our IT management, data protection, and security solutions to produce critical business outcomes with data protection and security leading our growth in the quarter.

謝謝約翰，也謝謝大家今天加入我們。我們第二季的業績強勁，超越了營收和利潤的指導。中小企業和 MSP 繼續依靠我們的 IT 管理、資料保護和安全解決方案來實現關鍵業務成果，資料保護和安全性引領我們本季的成長。

For our second-quarter results, total revenue was $119.4 million, representing approximately 13% year-over-year growth on a reported and constant currency basis. Subscription revenue was $117.4 million, representing approximately 14% year-over-year growth on a reported and constant currency basis. Other revenue, which consists primarily of revenue from the sale of maintenance services associated with the historical sales of perpetual licenses and revenue from professional services was $2 million.

對於我們第二季的業績，總收入為 1.194 億美元，按報告和固定匯率計算，年增約 13%。訂閱收入為 1.174 億美元，按報告和固定匯率計算，年增約 14%。其他收入主要包括與永久許可證歷史銷售相關的維護服務銷售收入以及專業服務收入為 200 萬美元。

We ended the quarter with 2,194 partners contributing $50,000 or more of ARR, which is up approximately 1% year over year. Partners with over $50,000 of ARR now represent approximately 56% of our total ARR, up from approximately 55% a year ago.

本季結束時，有 2,194 家合作夥伴貢獻了 50,000 美元或更多的 ARR，年增約 1%。ARR 超過 50,000 美元的合作夥伴目前約占我們總 ARR 的 56%，高於一年前的約 55%。

Dollar-based net revenue retention, which is calculated on a trailing 12-month basis was approximately 108% or 106% on a constant currency basis. As a reminder, our pricing and packaging changes, coupled with rationalization related to our long-term contract initiative began materially impacting net revenue retention starting in the second quarter.

以過去 12 個月為基礎計算的以美元為基礎的淨收入保留率約為 108%，以固定匯率計算為 106%。提醒一下，我們的定價和包裝變化，加上與我們的長期合約計畫相關的合理化，從第二季開始對淨收入保留產生了重大影響。

Turning to profit and margins. Note that unless otherwise stated, all references to profit measures and expenses are calculated on a non-GAAP basis and exclude the items outlined in the GAAP to non-GAAP reconciliations provided in today's press release. Second-quarter gross margin was 84.7% compared to 84.8% in the same period in 2023. Second-quarter adjusted EBITDA was $46.8 million, up approximately 34% year over year, representing approximately 39% adjusted EBITDA margin.

轉向利潤和利潤率。請注意，除非另有說明，所有提及的利潤指標和費用均按非公認會計原則計算，並且不包括今天新聞稿中提供的公認會計原則與非公認會計原則調節表中概述的項目。第二季毛利率為 84.7%，而 2023 年同期為 84.8%。第二季調整後 EBITDA 為 4,680 萬美元，較去年同期成長約 34%，調整後 EBITDA 利潤率約 39%。

Unlevered free cash flow was $35.5 million in the second quarter. CapEx inclusive of $1.9 million of capitalized software development costs was $5.1 million or 4.3% of revenue. Non-GAAP earnings per share was $0.14 in the quarter based on 187 million weighted average diluted shares. We ended the quarter with approximately $158 million of cash and an outstanding loan principal balance of approximately $340 million, representing net leverage of approximately 1.1 times. Approximately 46% of our revenue was outside of North America in the quarter.

第二季無槓桿自由現金流為 3,550 萬美元。資本支出（包括 190 萬美元的資本化軟體開發成本）為 510 萬美元，佔收入的 4.3%。基於 1.87 億股加權平均稀釋股票，本季非 GAAP 每股收益為 0.14 美元。本季結束時，我們擁有約 1.58 億美元的現金，未償還貸款本金餘額約為 3.4 億美元，淨槓桿約 1.1 倍。本季我們約有 46% 的營收來自北美以外地區。

Before turning to our financial outlook, I will give commentary on our second-quarter results. Revenue was above the high end of our guidance range. Our performance was driven by steady demand, a positive FX impact of approximately $500,000 relative to expectations and a positive net impact from our long-term contract initiatives.

在討論我們的財務前景之前，我將對我們第二季的業績發表評論。收入高於我們指導範圍的上限。我們的業績受到穩定的需求、相對於預期約 500,000 美元的積極外匯影響以及我們的長期合約計劃的積極淨影響的推動。

The net effect of our long-term contract initiative in the quarter reflects a positive impact from accelerated revenue recognition in accordance with ASC 606 triggered by the signing of long-term contracts, partially offset by the spend rationalization from some customers that John mentioned.

我們本季長期合約計畫的淨效應反映了根據 ASC 606 簽署長期合約引發的加速收入確認的正面影響，部分被 John 提到的一些客戶的支出合理化所抵消。

About 15% of our ARR is on-premise in nature, and ASC 606 accounting standards call for a portion of on-premise revenue in long-term contracts to be recognized as a lump sum in the month the contract begins with the remainder recognized ratably over the contract term. This resulted in an increased amount of in-period revenue recognized from customers that transitioned from month-to-month arrangements to long-term contracts.

我們大約 15% 的 ARR 本質上是內部部署的，並且 ASC 606 會計標準要求長期合約中的部分內部部署收入在合約開始當月一次性確認，其餘部分按比例確認超過合約期限。這導致從按月安排轉變為長期合約的客戶確認的期內收入增加。

606 treatment drives lumpiness in revenue results, which flows through to our adjusted EBITDA and will impact revenue and adjusted EBITDA in future periods. We expect the net positive impact from the long-term contract initiative to be most pronounced in the second quarter and to result in a net positive impact to revenue for the year.

606 處理導致收入結果不穩定，這會影響我們調整後的 EBITDA，並將影響未來時期的收入和調整後 EBITDA。我們預計長期合約計畫的淨正面影響將在第二季最為明顯，並對全年收入產生淨正面影響。

Turning to our financial outlook. Our guidance accounts for the following elements. First, we are assuming FX rates of 1.08 for the euro and 1.27 for the pound for the remainder of 2024, along with updates to other currencies to more closely reflect the current rate environment. These updated rates drive approximately $1.3 million of positive revenue impact for the remainder of 2024 relative to our FX assumptions during our May call.

轉向我們的財務前景。我們的指南考慮了以下要素。首先，我們假設 2024 年剩餘時間內歐元匯率為 1.08，英鎊匯率為 1.27，同時更新其他貨幣以更準確反映當前匯率環境。相對於我們在 5 月電話會議期間的外匯假設，這些更新後的匯率將為 2024 年剩餘時間帶來約 130 萬美元的正面收入影響。

Second, our guidance reflects continued success in converting customers to long-term contracts. We anticipate the net revenue impact associated with our long-term contract initiative will be less pronounced in the second half of the year. We anticipate net retention will face moderate near-term pressures to drive long-term benefits. Third, we anticipate operating in an uncertain macro environment.

其次，我們的指導反映了在將客戶轉變為長期合約方面的持續成功。我們預計，與我們的長期合約計畫相關的淨收入影響在今年下半年將不太明顯。我們預期淨留存率將面臨適度的短期壓力以推動長期效益。第三，我們預計在不確定的宏觀環境中運作。

With that in mind, for the third quarter of 2024, we expect total revenue in the range of $114.5 million to $115 million, representing 6% to 7% year-over-year growth on a reported basis and approximately 7% growth on a constant currency basis.

考慮到這一點，我們預計 2024 年第三季的總收入將在 1.145 億美元至 1.15 億美元之間，按報告計算同比增長 6% 至 7%，按恆定增長約 7%貨幣基礎。

We expect third quarter adjusted EBITDA in the range of $39.5 million to $40 million, representing an adjusted EBITDA margin of 35%. For the full year 2024, we now expect total revenue of $463 million to $465 million, representing approximately 10% year over year growth on a reported and constant currency basis. We are raising our adjusted EBITDA outlook and now expect full-year adjusted EBITDA in the range of $165.5 million to $167.5 million up approximately 16% year over year at the midpoint and representing an approximately 36% adjusted EBITDA margin.

我們預計第三季調整後 EBITDA 在 3,950 萬美元至 4,000 萬美元之間，調整後 EBITDA 利潤率為 35%。對於 2024 年全年，我們目前預計總收入為 4.63 億至 4.65 億美元，按報告和固定匯率計算，年增約 10%。我們正在上調調整後 EBITDA 前景，目前預計全年調整後 EBITDA 在 1.655 億至 1.675 億美元之間，中點年增約 16%，調整後 EBITDA 利潤率約為 36%。

While 606 dynamics created shifts within the quarters, we are slightly raising the midpoint of our full-year revenue outlook and profit outlook relative to our last guidance. We reiterate that we expect CapEx, which includes capitalized software development costs will be approximately 5% of total revenue for 2024. We also expect adjusted EBITDA conversion to unlevered free cash flow to be approximately 64% for the full year.

雖然 606 動態在季度內造成了變化，但我們相對於上次指導，略微提高了全年收入前景和利潤前景的中點。我們重申，預計 2024 年資本支出（包括資本化軟體開發成本）將佔總收入的 5% 左右。我們也預計全年調整後 EBITDA 轉換為無槓桿自由現金流的比例約為 64%。

We expect total weighted average diluted shares outstanding of approximately $187 million to $108 million for the third quarter and $187 million to $189 million for the full year. Finally, we expect our non-GAAP tax rate to be approximately 28% in the third quarter and 25% for the full year.

我們預計第三季加權平均稀釋後流通股總額約為 1.87 億至 1.08 億美元，全年為 1.87 億至 1.89 億美元。最後，我們預計第三季的非 GAAP 稅率約為 28%，全年約為 25%。

In closing, we were pleased with the second quarter and our ability to raise the midpoint of our full year revenue and adjusted EBITDA outlook. While we see some transitory pressures, MSP level retention and new customer acquisitions have remained steady, which we believe set a strong foundation for future growth.

最後，我們對第二季以及我們提高全年收入中點和調整後 EBITDA 前景的能力感到滿意。雖然我們看到一些暫時的壓力，但 MSP 等級的保留和新客戶獲取保持穩定，我們相信這為未來的成長奠定了堅實的基礎。

We will aim to make selective growth investments to capture the growing market opportunity. And with our strong profit margins, cash generation and balance sheet, we also continue to explore avenues for inorganic growth.

我們的目標是進行選擇性成長投資，以抓住不斷成長的市場機會。憑藉我們強勁的利潤率、現金產生能力和資產負債表，我們也持續探索無機成長的途徑。

Now I will turn it over to John for closing remarks.

現在我將把它交給約翰做總結發言。

Thanks, Tim. We believe we've made tremendous progress across the business in the second quarter and have ambitious goals for the second half of the year and beyond. Our view of the long-term opportunity and our growth outlook remains steadfast.

謝謝，蒂姆。我們相信，第二季度我們的業務取得了巨大進展，並為下半年及以後製定了雄心勃勃的目標。我們對長期機會和成長前景的看法仍然堅定。

With platform modernization and security fueling our product vision, we believe successful tactical execution can meaningfully drive the N-able growth algorithm forward. Primary drivers include our contract initiatives and market shift towards larger MSPs to sustain gross retention in the high 80s to low 90s.

隨著平台現代化和安全性推動我們的產品願景，我們相信成功的戰術執行可以有意義地推動 N-able 成長演算法向前發展。主要驅動因素包括我們的合約計劃和市場轉向更大的 MSP，以維持 80 年代至 90 年代的毛保留率。

Successful cross-selling of our expanded product set to drive net retention in the 110% range and growing the market presence of Cove, both with MSPs and internal IT, coupled with our new MDR solution to fuel new customer acquisition and contribute an additional mid-single digit of growth.

成功交叉銷售我們擴展的產品集，將淨保留率提高到110%，並透過MSP 和內部IT 擴大Cove 的市場佔有率，再加上我們新的MDR 解決方案，可促進新客戶的獲取並貢獻額外的中端收入個位數的成長。

In total, we aim to grow the business in the mid-teens. As the recent global outage demonstrated, IT is needed to keep the world running. We believe that our mission to empower MSPs with leading technology has never been more important, and we are excited to continue to drive successful IT outcomes for businesses across the globe.

總的來說，我們的目標是在十幾歲左右發展業務。正如最近的全球停電事件所表明的那樣，需要 IT 來維持世界的運作。我們相信，為 MSP 提供領先技術的使命從未如此重要，我們很高興能夠繼續為全球企業推動成功的 IT 成果。

And with that, we'll open up the line for questions. Operator?

至此，我們將開通提問專線。操作員？

(Operator Instructions) Matthew Hedberg, RBC.

（操作員說明）Matthew Hedberg，RBC。

Hey, guys. It's Mike Richard on for Matt. Thanks for taking the question. Maybe you guys could talk more about the optimization you're seeing from customers? Like how is that come in relative to your expectations? Where are you seeing it from customers in terms of your product portfolio? And then could you quantify that positive impact that you've seen? And was this like already contemplated in guidance heading into the quarter? Thanks.

嘿，夥計們。由邁克理查德取代馬特。感謝您提出問題。也許你們可以多談談你們從客戶那裡看到的優化？與您的期望相比，情況如何？就您的產品組合而言，您從客戶那裡看到了什麼？然後您能量化您所看到的正面影響嗎？這是否已經在本季度的指導中考慮過？謝謝。

Hey. Good morning, Mike. This is John. I'll start. I'll ask Tim to add a little bit more color on the second part of your question. Look, I think it's important to make sure the reason for the strategy and the picture folks are aligned and understand that. We look at it. We've mentioned to this group and also just into the broader audience that within our base, we have an opportunity of about $30-plus per device per month to really go realize. And we've been realizing about $3 to $4 of that.

嘿。早上好，麥克。這是約翰。我開始吧。我會請提姆為你問題的第二部分添加更多色彩。聽著，我認為重要的是要確保策略的原因和人們的想法保持一致並理解這一點。我們看看它。我們已經向這個群體以及更廣泛的受眾提到，在我們的基礎上，我們有機會真正實現每台設備每月約 30 美元以上的收入。我們已經意識到其中大約有 3 到 4 美元。

And part of the strategy is to lock in our customers, give them the predictability so then we can focus on the expand. The timing of this exercise really is more related to the expansion that we have in our offerings. Now that we've added MDR now that we've added additional bits in Cove with that cross-sell opportunity, that white space opportunity growing, we felt the right thing would be to lock in the customer. So I would call it two-third offense, where we're really trying to lean in, but also a third defense.

該策略的一部分是鎖定我們的客戶，為他們提供可預測性，這樣我們就可以專注於擴張。這項活動的時機實際上與我們產品的擴展更為相關。既然我們已經添加了 MDR，我們已經在 Cove 中添加了額外的位，並且交叉銷售機會、空白機會不斷增長，我們認為鎖定客戶是正確的做法。所以我稱之為三分之二進攻，我們確實在努力向前傾斜，但同時也是第三次防守。

When we go into a customer arrangement that's month-to-month or consumption based, we see fluctuations on what those billings would be. And then most notably, the MSP market itself, not us, but the MSP market itself, we do see consolidation. And we believe that when we're locking in our customers to two or three years and there may be consolidation, now we have N-able has a much better opportunity to remain the technology stack of choice, which is what the MSP usually wants.

當我們進行按月或基於消費的客戶安排時，我們會看到這些帳單的波動。最值得注意的是，在 MSP 市場本身，不是我們，而是 MSP 市場本身，我們確實看到了整合。我們相信，當我們將客戶鎖定兩到三年並且可能會進行整合時，現在我們 N-able 有更好的機會保持技術堆疊的選擇，這正是 MSP 通常想要的。

And so for us, it's also just being able to lock in those customers, focusing in on the growth and therefore, we can get going on really that expand part of the equation because the opportunity the white space within our base is massive. So that's really the big bits.

因此，對我們來說，它也只是能夠鎖定這些客戶，專注於成長，因此，我們可以真正擴大等式的一部分，因為我們基地內的空白空間的機會是巨大的。這確實是最重要的部分。

Where we're seeing some of the rationalization -- look, I'd say it's a collection of things. I can give you more of an anecdote in that if a customer might be giving us $10,000 or $15,000 of monthly recurring revenue. That's completely consumption based, and we're asking them to commit to a 36-month period. You can imagine that the customer might look for some pricing concessions in exchange for that long-term commitment.

我們看到了一些合理化的地方——看，我想說這是一些東西的集合。我可以給你更多的軼事，如果客戶可能每月給我們 10,000 美元或 15,000 美元的經常性收入。這完全基於消費量，我們要求他們承諾 36 個月的期限。您可以想像，客戶可能會尋求一些價格優惠以換取長期承諾。

So we are seeing it in situations like that where we're asking the customer to lock in long term. And we're frankly fine with giving them some pricing concessions in exchange for that commitment as a strategic partner. So we're seeing it in there.

因此，我們在要求客戶長期鎖定的情況下看到了這種情況。坦白說，我們願意為他們提供一些價格優惠，以換取作為策略夥伴的承諾。所以我們在那裡看到它。

And then just by nature, when you're asking somebody to commit, they're going to go through their estate and see if there might be some solutions or some devices that they might not necessarily have if there's some software quote, unquote, type of thing, that they might try to realize. There's no really heightened product area, I would say, that's seeing it. It's more about, hey, you're asking me to commit to 24, 36 months, 12 months.

然後本質上，當你要求某人做出承諾時，他們會檢查他們的資產，看看是否有一些解決方案或一些他們可能不一定擁有的設備，如果有一些軟體引用、取消引用、類型他們可能會嘗試去實現這一點。我想說的是，沒有真正提升的產品領域。更重要的是，嘿，你要求我承諾 24、36 個月、12 個月。

Let me look at my estate and make sure that I'm willing to commit" because at the end of the day, these SMEs -- excuse me, these MSPs or SMEs, and they want to make sure that they're driving their top and bottom line in a responsible manner. So we expected some of this.

讓我看看我的財產，並確保我願意做出承諾”，因為歸根結底，這些中小企業——對不起，這些 MSP 或中小企業，他們希望確保自己能夠達到最高水平並以負責任的方式底線。所以我們對此有所期待。

Overall, the LTC program has been ahead of the expectation as far as customers wanting to commit, willing to commit. So that gives us a good vote of confidence that we're putting the right products in market. And as a result, I think what ends up happening is we're ahead of that program, and you're seeing a little bit more pull in that related to 606.

整體而言，就想要承諾、願意承諾的客戶而言，LTC 計畫已經超出了預期。因此，這讓我們對我們將正確的產品推向市場投下了充分的信心。因此，我認為最終發生的情況是我們領先於該計劃，並且您將看到與 606 相關的更多吸引力。

So the pull-in on 606 is more of a kind of an indicator that the customers are willing to commit. And as a result, we have a more resilient revenue base than we had even six months ago.

因此，606 的吸引更多是客戶願意承諾的指標。因此，我們的收入基礎比六個月前更有彈性。

Great. Thanks. And then a quick follow-up. How did linearity shape up in the quarter? Was there anything you guys saw from like a macro perspective that things worsened heading out of the quarter into July and maybe now with some of the market volatility and given some software peers have seen some heightened macro uncertainty? Just some more color on that as well.

偉大的。謝謝。然後快速跟進。本季的線性情況如何？你們是否從宏觀角度看到了從本季到 7 月情況惡化的情況，也許現在市場出現一些波動，並考慮到一些軟體同行已經看到宏觀不確定性加劇？還可以再添加一些顏色。

Sure. The best indicator as far as some of the market velocity is with our bookings. And we referenced in the prepared remarks, elements of our bookings being up 20%. Overall, both in new customer acquisition and new SKU sales, our bookings were also up north of 20%. So that's a good indicator. Again, as late as this quarter, we're continuing to see our products resonating in the market.

當然。就某些市場速度而言，最好的指標是我們的預訂。我們在準備好的評論中提到，我們的預訂量增加了 20%。整體而言，無論是新客戶獲取還是新 SKU 銷售，我們的預訂量也增加了 20% 以上。所以這是一個很好的指標。同樣，直到本季度，我們仍繼續看到我們的產品在市場上引起共鳴。

Anything to call out within the month? Not really. I'd say overall, what we're seeing our customers really just really making sure that they're double checking more the price. The demand is there, MSPs are in high demand, all the channel checks support that, that the MSPs are continuing to be in high demand because they're providing a mission-critical service to their SMEs.

一個月內有什麼需要注意的嗎？並不真地。總的來說，我們所看到的客戶確實只是確保他們仔細檢查了價格。需求就在那裡，MSP 的需求量很大，所有通路檢查都表明，MSP 的需求量仍然很大，因為他們正在為中小企業提供關鍵任務服務。

And those SMEs are quite resilient, right? These SMEs, for the most part, they're in healthcare, they're in the financial institutes, some are even in state and local government. So they're in recession resilient and, I would say, overall resilient SME markets.

這些中小企業的韌性很強，對嗎？這些中小企業大部分在醫療保健產業、金融機構，有些甚至在州和地方政府。因此，它們在經濟衰退中具有彈性，我想說的是，中小企業市場總體上具有彈性。

But that being said, those SMEs are double checking to make sure that they're getting their best value. And we're seeing MSPs making sure that they're paying their right price for things like endpoint security, as an example.

但話雖這麼說，這些中小企業正在仔細檢查，以確保他們獲得最大價值。例如，我們看到 MSP 確保他們為端點安全等服務支付正確的價格。

Jason Ader, William Blair.

傑森·阿德，威廉·布萊爾。

Yeah, thank you. Good morning, guys. On the bookings, up 20%, I just wanted to understand, is that some of the annual shift that's going on there? Because if you're going to do a multiyear 36 month, that's going to really help the bookings number. Is that a factor in why that bookings was so strong?

是的，謝謝。早安，夥計們。預訂量增加了 20%，我只是想了解，這是每年都會發生的變化嗎？因為如果您打算進行多年 36 個月的預訂，這將真正有助於提高預訂量。這是預訂量如此強勁的因素嗎？

Morning, Jason. Great question. I'm glad you asked this so that we could clarify. So the way that we define our bookings are it's the annual contract value. So the value of the 12 months. So frankly, even if it was a multiyear deal, we wouldn't be counting that way. So this is purely the annual contract value from the first 12 months and of our new customer acquisition, some new landed customers to N-able and then new SKU.

早上好，傑森。很好的問題。我很高興你問這個問題，以便我們能夠澄清。因此，我們定義預訂的方式是年度合約價值。所以這12個月的價值。坦白說，即使這是一份多年期的協議，我們也不會這麼算。因此，這純粹是前 12 個月以及我們新客戶獲取、一些新落地客戶到 N-able 以及新 SKU 的年度合約價值。

So if you are a central customer and you made the right decision to now go and consume Cove, that would be a new SKU. And so, it excludes anything or any type of multiyear type of contract, I'd say it's all one year, 12 months.

因此，如果您是核心客戶，並且您做出了正確的決定，現在就去消費 Cove，那麼這將是一個新的 SKU。因此，它不包括任何或任何類型的多年期合同，我想說都是一年零 12 個月。

All right. That's helpful clarification. And then I guess I'm just trying to reconcile the bookings data with the guidance for the second half, which is under 10% growth. So how do you help us reconcile that delta.

好的。這是很有幫助的澄清。然後我想我只是試圖將預訂數據與下半年的指導進行協調，下半年的成長低於 10%。那麼您如何幫助我們協調這個增量。

Jason, it's Tim. A couple of things. One we've spoken to before, one is the grow over the pricing and packaging changes that we spoke to last quarter or the last couple of quarters.

傑森，是提姆。有幾件事。我們之前談過，一個是我們上個季度或過去幾季談到的定價和包裝變化的成長。

And last quarter, we referenced, that's about a 2.5 to 3.0 headwind in quarter two, three, four this year, and that will carry into Q1 of next year as well. And some of the transitory headwinds really carry for four quarters. And so that's part of that equation. That's not part of our bookings.

上個季度，我們提到，今年第二、三、四季的逆風約為 2.5 至 3.0，而這種情況也將延續到明年第一季。一些短暫的不利因素確實會持續四個季度。這就是這個等式的一部分。這不屬於我們預訂的一部分。

What's also not part of our bookings is any of that rationalization that John spoke to as customers have been moving into these long-term contracts. So those two things combined are what I would say, dragging the year-over-year performance that's factored into our guidance in the second half of the year versus the bookings component. So we're really trying to highlight that the fundamentals of the business are very strong.

當客戶已經簽訂這些長期合約時，約翰談到的任何合理化也不屬於我們的預訂的一部分。因此，我想說的是，這兩件事相結合，拖累了我們下半年的指導中與預訂部分相比的同比表現。因此，我們確實想強調該業務的基本面非常強勁。

Our MSP dollar retention is in line with the last three quarters. Bookings are strong, up 20% year-over-year. We just have a couple of those transitory headwinds that will carry with us through the second half of this year and into the early part of 2025. But post that, we'll grow through those transitory headwinds, and we'll have the thesis and the benefit of really focusing on cross-selling into these long-term committed customers through the second half of this year and into next year and beyond to drive what we believe is growth acceleration in 2025, but more acutely in the second half.

我們的 MSP 美元保留率與過去三個季度一致。預訂量強勁，較去年同期成長 20%。我們只是面臨一些短暫的不利因素，這些不利因素將伴隨我們度過今年下半年直至 2025 年年初。但之後，我們將克服這些短暫的逆風而成長，並且我們將在今年下半年、明年及以後真正專注於向這些長期忠誠的客戶進行交叉銷售，並從中受益推動我們所認為的2025 年增長加速，但在下半年加速成長。

All right. Then just a quick two-part follow-up. First is, are other vendors in the market also moving to annual from monthly? Or are you guys unique there? And then secondly, why wouldn't you see more in-period rev rec in the second half like you did in Q2 tied to that shift from monthly to annual?

好的。然後是快速的兩部分跟進。首先，市場上的其他供應商是否也從包月轉向包年？或者你們是獨一無二的嗎？其次，為什麼你不會像第二季度那樣在下半年看到更多與從月度到年度的轉變相關的期內收益記錄？

Sure. Maybe I'll take the first one and you can take the second one. So yes, we are seeing competitors. In fact, a little bit of this. I mentioned the two-thirds offense and the one-third defense. Our competitors, by and large, are locking in customers to multiyear deals, actually. So in some ways, we're playing a little bit more catch-up. It's also a good indicator as the MSPs mature as they're getting larger, there's a willingness.

當然。也許我會選擇第一個，你可以選擇第二個。所以，是的，我們看到了競爭對手。事實上，有一點點。我提到了三分之二進攻和三分之一防守。實際上，我們的競爭對手總體上正在將客戶鎖定在多年期交易中。因此，在某些方面，我們正在追趕。這也是一個很好的指標，隨著 MSP 的規模不斷擴大，它們變得越來越成熟，並且有意願。

And actually, I would say, even a propensity to lock in the contracts for longer term, much more akin to an enterprise type of procurement relationship. So we are seeing the other larger players in the space do the long-term bit.

實際上，我想說，即使是鎖定長期合約的傾向，也更類似於企業類型的採購關係。因此，我們看到該領域的其他較大參與者正在做長期的事情。

And I can pass it over to Tim on the second part.

我可以在第二部分將其傳遞給蒂姆。

Yeah. And Jason, on some of the dynamics of the rev rec, as some of the revenue is accelerated or it becomes more lumpy on upfront, versus over time, it does take away from revenue in future periods. So all the success we had in the first half of 2024 on getting customers committed into these long-term contracts has pulled revenue into the first and more acutely in the second quarter, and that takes some revenue out of Q2 -- sorry, out of Q3 and Q4 for the rest of the year. So like we --

是的。傑森，就轉速記錄的一些動態而言，隨著一些收入的加速或前期收入變得更加不穩定，隨著時間的推移，它確實會減少未來時期的收入。因此，我們在2024 年上半年在讓客戶簽訂這些長期合約方面取得的所有成功，都將收入拉入了第一季度，並且在第二季度更加明顯，這從第二季度中帶走了一些收入- 抱歉，從第二季帶走了一些收入。所以像我們一樣--

But why wouldn't you see more -- if you're converting more customers to annual, why wouldn't you see more of that 606 impact in the --

但是，為什麼您不會看到更多 - 如果您將更多客戶轉化為年度客戶，為什麼您不會在 606 中看到更多影響--

We will. So Q1 and Q2 did not have the headwinds from us committing customers prior to those quarters. So we really started this initiative at the beginning of the year. So there were no real headwinds in Q1 when we started this. There were minimal headwinds in Q2 where we saw, I would say, a bigger portion of ARR committed in that period.

我們將。因此，第一季和第二季並沒有遇到我們在這些季度之前承諾客戶的阻力。所以我們在今年年初就真正開始了這個舉措。因此，當我們開始這項工作時，第一季並沒有真正的阻力。第二季的阻力很小，我想說的是，我們看到了這段時期承諾的 ARR 的大部分。

Q3 and Q4 now have a bigger tax on them because of the success in Q1 and Q2. Q1 and Q2 did not have the same tax that Q3 and Q4 have from the dynamics. We have baked in, and we have assumed that we continue to commit customers into that fashion, but it's offsetting some of the revenue that was pulled forward into Q1 and Q2 from the success that we have there.

由於第一季和第二季的成功，第三季和第四季現在對它們徵收了更大的稅。從動態來看，Q1 和 Q2 沒有與 Q3 和 Q4 相同的稅。我們已經融入其中，並假設我們將繼續讓客戶接受這種時尚，但這抵消了我們從第一季和第二季取得的成功中提取的部分收入。

Brian Essex, JPMorgan.

布萊恩‧艾塞克斯，摩根大通。

Hi. This is Charlotte on for Brian. Thank you so much for taking the question. Quick question on the net dollar retention rate, I know you mentioned some headwinds associated with the pricing and packaging. Can you give us an extent of like how much the headwind is expected to hit that in future periods? And at what point do we expect it to, I guess, maybe go back to the [110] level or above, like at what point should be normalized? What do you have factored into guidance? Thank you.

你好。這是夏洛特替補布萊恩。非常感謝您提出這個問題。關於淨美元保留率的快速問題，我知道您提到了與定價和包裝相關的一些不利因素。您能否告訴我們未來一段時間預計會遇到多大的阻力？我猜，我們期望它在什麼時候回到 [110] 水平或更高，就像什麼時候應該標準化？您在指導中考慮了哪些因素？謝謝。

Yeah, absolutely. Yes, I'll reiterate some of the color I gave previously on some of the transitory headwinds we have on the net revenue retention for the second half of the year and will be part of the beginning parts of 2025 as well. About 2.5 to 3 points is related to some of the pricing and packaging changes that we mentioned last quarter, coupled with the impact from some of the rationalization we've seen from the long-term contract initiative that we've implemented.

是的，絕對是。是的，我將重申我先前對下半年淨收入保留所面臨的一些暫時阻力的看法，這也將是 2025 年年初的一部分。大約 2.5 到 3 個百分點與我們上季度提到的一些定價和包裝變化有關，再加上我們從我們實施的長期合約計劃中看到的一些合理化的影響。

So in terms of timing and the impact, I expect that impact to carry through the second half of this year and into Q1 and Q2 of 2025, I would expect a more normalized dollar-based net revenue pension rate in the second half of 2025.

因此，就時間和影響而言，我預計這種影響將持續到今年下半年，並持續到2025 年第一季和第二季度，我預計2025 年下半年基於美元的淨收入退休金利率將更加正常化。

Mike Cikos, Needham.

麥克·西科斯，尼達姆。

Hey, guys. Thanks for taking the questions here. Maybe just to continue on that point for a second. If we think about those headwinds, is there a way -- like should we expect the headwinds to be most acute in 3Q and then abate thereafter? Or should this be like a mounting pressure where it will actually be the biggest headwind by the time we get to Q2 of next year? Like how do you think about the slope of this as it plays out?

嘿，夥計們。感謝您在這裡提出問題。也許只是繼續討論這一點。如果我們考慮這些不利因素，有沒有辦法──例如我們是否應該預期不利因素在第三季最為嚴重，然後在之後減弱？或者這應該像一個越來越大的壓力，到明年第二季時它實際上將成為最大的阻力？就像你如何看待事情發展的斜率？

I would expect it to be steady on how we do the math on our retention rate is a trailing 12-month average. I would expect additional pressure that we mentioned in the prepared remarks on the dollar-based net revenue retention rate. But from a velocity standpoint, I would expect it to be gradually -- steady to gradually improving as we kind of chart through the end of 2024 and in 2025.

我預計我們如何計算過去 12 個月的平均留存率，結果會保持穩定。我預計我們在準備好的關於以美元為基礎的淨收入保留率的評論中提到的額外壓力。但從速度的角度來看，我預計隨著我們在 2024 年底和 2025 年繪製圖表，它會逐漸穩定到逐步改善。

Okay. Thank you for that. And I guess the other question, I know last quarter, we were talking about this as well as far as the shift to annual commitments. I just wanted to see with the first six months under our belts now. But what is the feedback that you're receiving? Like do they understand the reason for this push?

好的。謝謝你。我想另一個問題，我知道上個季度，我們正在討論這個問題以及向年度承諾的轉變。我現在只想看看前六個月的情況。但您收到的回饋是什麼？他們是否了解這種推動的原因？

And I would think so if John is saying that this seems like it's a little bit more of a catch-up versus other players and competitors out there, but also trying to be cognizant of some of the pain out there just given people are trying to preserve capital and what is this uncertain macro we find ourselves in.

如果約翰說這似乎是與其他玩家和競爭對手相比的一種追趕，但同時也試圖認識到人們正在努力的一些痛苦，我會這麼認為。什麼？

Het, Mike. It's John. Look, the customers, it's actually resonating quite well. I think the customers appreciate the level of predictability. We're giving them -- by the way, we're also -- unlike our competitors, our competitors kind of forced a lot of this on their customer base. We elected not to force this and make it an option. And so, I should make that clear.

哎呀，麥克。是約翰。你看，顧客其實反應很好。我認為客戶欣賞這種可預測性。我們為他們提供——順便說一句，我們也——與我們的競爭對手不同，我們的競爭對手在某種程度上強迫他們的客戶群獲得了很多這樣的東西。我們選擇不強制這樣做，並使其成為一種選擇。所以，我應該說清楚。

And so I think the customer base appreciated the optionality that this afforded them. And effectively, the option was, hey, look, if you're going to stay consumption-based or month-to-month, there will be a steady stream of price increases. If you're looking to commit and provide that stability to us, that will turn into better economics for you that will turn into better predictability to you.

因此，我認為客戶群很欣賞這為他們提供的選擇。實際上，選擇是，嘿，看，如果你要保持基於消費或每月的價格上漲，那麼價格將會穩定成長。如果您希望向我們承諾並提供這種穩定性，這將為您帶來更好的經濟效益，從而為您帶來更好的可預測性。

And so I think overall, given them the optionality is really resonating with the customer base. And then we can put our work and our collective focus on helping them grow their business, expand their services. And that's been the other thing.

所以我認為總的來說，考慮到他們的選擇性確實引起了客戶群的共鳴。然後我們就可以把我們的工作和我們的集體重點放在幫助他們發展業務、擴大他們的服務。那是另一回事了。

A lot of these conversations on earth opportunity when we're having conversations about their two or three-year tech stack, what they're trying to do, their goals over the long term. It's unearthing additional code opportunities that's one thing, additional MDR opportunity.

當我們談論他們兩三年的技術堆疊、他們想要做什麼、他們的長期目標時，地球上有很多這樣的對話機會。它正在挖掘額外的程式碼機會，這是一回事，額外的 MDR 機會。

So we're locking in, they're looking at us as a strategic partner and how we can focus on driving their business forward. So overall, I believe the tone is resonating is differentiated from what some of the other folks in the market have done and I think it's been appreciated.

因此，我們正在鎖定，他們將我們視為策略合作夥伴，以及我們如何專注於推動他們的業務向前發展。因此，總的來說，我認為這種引起共鳴的基調與市場上其他一些人所做的有所不同，我認為它受到了讚賞。

Thank you very much. (Operator Instructions)

非常感謝。（操作員說明）

Jason Ader, William Blair.

傑森·阿德，威廉·布萊爾。

Hi again. I thought I would ask a sort of zoom out question for you, John, just on this MSP space. Do you have a sense of how much of the SMB IT market has shifted to kind of the MSP model and approach versus running their own IT internally? And do you think a weak macro backdrop actually slows down or speeds up the trend, which obviously has been towards MSPs and outsourced IT. But I think it would help investors to just frame where we are in the market in terms of SMB IT shift to the MSP model.

又嗨了。約翰，我想我應該就這個 MSP 空間向您提出一些縮小問題。您是否知道有多少中小企業 IT 市場已轉向 MSP 模型和方法而不是內部運行自己的 IT？您認為疲軟的宏觀背景實際上會減緩還是加速這一趨勢，這顯然是針對 MSP 和外包 IT 的。但我認為這將有助於投資者確定我們在中小型企業 IT 向 MSP 模式轉變方面的市場定位。

Sure. So ultimately, small, medium business, midsized companies, large Fortune 500 companies, they're all left with the choice. And that choice is how do I best monitor, manage and protect my assets? And what we're finding, Jason, is that more and more of those enterprises are saying it's more cost-effective to let someone who's specializing on this to actually provide part of it.

當然。因此，最終，中小型企業、中型企業、大型財富 500 強企業，他們都有選擇。這個選擇是我如何最好地監控、管理和保護我的資產？傑森，我們發現越來越多的企業表示，讓專門從事這方面工作的人實際提供部分服務更具成本效益。

What we're seeing is more and more mid-market and larger companies using MSPs to augment, so the TAM in which the MSPs are actually servicing are growing because Fortune 1000 companies, mid-market companies are now looking to MSP to do part of that. Why? Because it's getting harder. And everyone is struggling with a very low unemployment rate for IT professionals and security professionals.

我們看到越來越多的中端市場和大型公司使用 MSP 進行增強，因此 MSP 實際服務的 TAM 正在成長，因為財富 1000 強公司、中階市場公司現在正在尋求 MSP 來做一部分那。為什麼？因為越來越難了。每個人都在為 IT 專業人員和安全專業人員極低的失業率而苦苦掙扎。

So they're looking to MSPs to help with part of their stack. That could be patching that could be with a security service like an MDR offering that can be with the backup disaster recovery offering. So by and large, we're seeing the demand for these MSPs to go to a further market.

因此，他們正在尋求 MSP 來幫助他們解決部分堆疊問題。這可能是透過安全服務（例如 MDR 產品）進行修補，而 MDR 產品可以與備份災難復原產品一起使用。總的來說，我們看到這些 MSP 需要進入更遠的市場。

I've been in this industry now for over 11 years. And when I started, MSPs were primarily servicing the VSME, companies that were 50 employees and under. MSPs are now servicing Fortune 1000 companies. And what's also happening is that these MSPs are growing up. MSPs are now publicly traded. MSPs are now part of several billion-dollar enterprises as a result of their maturity of their scale, they're now able to service larger and larger enterprises.

我從事這個行業已經超過 11 年了。當我開始工作時，MSP 主要為 VSME 提供服務，這些公司的員工人數不超過 50 人。MSP 現在為財富 1000 強公司提供服務。同時，這些 MSP 也在成長。MSP 現已公開交易。由於規模成熟，MSP 現在已成為數十億美元企業的一部分，他們現在能夠為越來越大的企業提供服務。

So these provide tailwinds overall to the industry, and that's what has us confident in the long-term tailwind of the MSP space. The service that these folks provide are mission critical. And if you're a CIO or a CISO of a midsized company or a large company, now with the level of maturity and the tools that companies like N-able provide, they now can rely on MSPs as a nice augment, a cost-effective augment.

因此，這些為整個產業提供了推動力，這就是我們對 MSP 領域的長期推動力充滿信心的原因。這些人提供的服務是關鍵任務。如果您是中型公司或大型公司的 CIO 或 CISO，現在憑藉 N-able 等公司提供的成熟度和工具，他們現在可以依賴 MSP 作為一個很好的增強，一種成本 -有效增強。

To your other point, if you're a CISO or a CIO of a mid-market company and you're faced with budget pressures from your CFO or your CEO, this augment plays a good way to offload maybe some of the higher labor costs if you were to do it yourself.

另一方面，如果您是一家中型市場公司的 CISO 或 CIO，並且您面臨來自 CFO 或 CEO 的預算壓力，那麼這種增強可能是減輕部分較高勞動力成本的好方法。

And so, I believe, actually, it's a nice play for mid-market companies for larger companies to take a step back and say, hey, where can I outsource some of my cost, some of my labor and do so in a cost effective, number one, but number two, in a lot of ways, more secure manner.

因此，我相信，實際上，對於中型市場公司來說，對於較大的公司來說，這是一個很好的選擇，他們可以退後一步說，嘿，我可以在哪裡外包一些成本、一些勞動力，並以具有成本效益的方式做到這一點。

And so our technology allows for this co-managed play where an internal IT department can have eyes on glass, the same eyes on glass that the MSP can have. So it gives the internal IT department the transparency that they want, but it saves them some of the cost because it's relying on that MSP to provide some of that labor and the expertise, which is why I believe, overall, for a bunch of factors, it's very much a recession-resilient industry.

因此，我們的技術允許這種共同管理的遊戲，內部 IT 部門可以密切關注玻璃，就像 MSP 可以關注玻璃一樣。因此，它為內部 IT 部門提供了他們想要的透明度，但也為他們節省了一些成本，因為它依賴 MSP 提供一些勞動力和專業知識，這就是為什麼我認為總體而言，有很多因素，這是一個能夠抵禦衰退的行業。

Thank you very much. (Operator Instructions)

非常感謝。（操作員說明）

We have no further questions. I will now hand over back to John for closing remarks. John?

我們沒有其他問題了。我現在將交回約翰致閉幕詞。約翰？

Thank you, operator, and thank you all for joining us today. Looking forward to talking to you next quarter.

謝謝運營商，也謝謝大家今天加入我們。期待下個季度與您交談。

That concludes today's call. Thank you for joining. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。