FiscalNote Holdings Inc (NOTE) 2025 Q3 法說會逐字稿

Good evening. My name is Tamika, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fiscal Note Holdings Incorporated 3rd quarter 2025 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad.

晚安.我叫塔米卡，今天我將擔任你們的會議接線生。在此，我謹代表 Fiscal Note Holdings Incorporated 宣布 2025 年第三季財務業績，歡迎各位參加電話會議。所有線路均已靜音，以防止任何背景噪音。演講結束後，將進行問答環節。在此期間，如果您想提問，只需按下星號鍵，然後按下電話鍵盤上的數字 1 即可。

If you would like to withdraw your question, press star, followed by the number one.

如果您想撤回您的問題，請按星號鍵，然後按數字 1。

Thank you. With that, I will now turn the call over to the company to begin. Please go ahead.

謝謝。接下來，我將把通話交給該公司開始。請繼續。

Good evening. My name is Bob Burrows, investor relations for Fiscal Note, and we are pleased you all could join us. The purpose of today's call is to discuss Fiscal Note's 3rd quarter, 2025 financial results and guidance for both the 4th quarter and full year of 2025. Joining me with prepared comments are Josh Resnik, CEO and President, and Jon Slabaugh, CFO and Chief Investment Officer. Other members of the senior management team will be available as needed during the Q&A session that will follow these prepared comments.

晚安.我是 Fiscal Note 的投資者關係負責人 Bob Burrows，我們很高興各位能夠參與本次活動。本次電話會議的目的是討論 Fiscal Note 2025 年第三季的財務業績以及對 2025 年第四季和全年的業績展望。與我一同發表準備好的評論的還有執行長兼總裁 Josh Resnik 和財務長兼首席投資長 Jon Slabaugh。在這些準備好的發言之後，將進行問答環節，屆時其他高階管理團隊成員將根據需要出席。

Please note today's press release, related current report on Form 8k, and updated version of the corporate overview presentation can all be found on the investor relations portion of the company website. In terms of important housekeeping, please take note of the following. During this call we may make certain statements related to our business that are forward-looking statements under federal securities laws. These statements are not guarantees of future performance, but rather are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements.

請注意，今天的新聞稿、相關的 8-K 表格最新報告以及更新後的公司概況簡報均可在公司網站的投資者關係部分找到。關於重要的內部事務，請注意以下事項。在本次電話會議中，我們可能會就我們的業務發表某些聲明，這些聲明根據聯邦證券法屬於前瞻性聲明。這些聲明並非對未來績效的保證，而是受到各種風險和不確定因素的影響。我們的實際結果可能與任何前瞻性聲明中反映的預期有重大差異。

For a discussion of the material risks and important factors that could affect our actual results, as well as the risks and other important factors discussed in today's earnings release, please refer to our SEC filings which are available either on our company website or the Securities and Exchange Commission's Edger system.

有關可能影響我們實際業績的重大風險和重要因素的討論，以及今天發布的收益報告中討論的風險和其他重要因素，請參閱我們向美國證券交易委員會提交的文件，這些文件可以在我們公司網站或美國證券交易委員會的Edger系統上找到。

Additionally, non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release or the updated version of the corporate overview presentation for a reconciliation of these measures to the most directly comparable GAAP financial measure. And finally, we use key performance indicators or KPIs in evaluating the performance of our business. These include annual recurring revenue or ARR and net revenue retention or NRR. And with that, I'd like to turn the call now over to Fiscal note CEO and President, Josh Resnik. Josh?

此外，本次電話會議也將討論非GAAP財務指標。請參考我們的獲利報告或更新版公司概況簡報中的表格，以了解這些指標與最直接可比較的 GAAP 財務指標的調節情況。最後，我們使用關鍵績效指標（KPI）來評估我們業務的績效。其中包括年度經常性收入（ARR）和淨收入留存率（NRR）。接下來，我想把電話交給 Fiscal note 的執行長兼總裁 Josh Resnik。喬希？

Thank you, Bob, and thanks to everyone for joining us today. I'm glad to be here to discuss Fiscal's 3rd quarter 2025 results and to share an update on the progress we've made on our strategic objectives.

謝謝你，鮑勃，也謝謝今天所有到場的各位。我很高興來到這裡，與大家討論 Fiscal 2025 年第三季的業績，並分享我們在實現策略目標方面取得的進展。

We've been clear and consistent as to our priorities. Put simply, we continue to take a disciplined, focused approach to managing the business, and you see that reflected in our adjusted EBITDA profitability, as well as our management of the balance sheet and progress toward free cash flow. This in turn enables us to build a durable foundation for long-term profitable growth.

我們一直明確且始終如一地堅持我們的優先事項。簡而言之，我們繼續採取嚴謹、專注的方式來管理業務，這一點體現在我們調整後的 EBITDA 獲利能力、資產負債表管理以及自由現金流的進展。這反過來又使我們能夠為長期獲利成長奠定堅實的基礎。

In Q3, revenue totaled $22.4 million in line with guidance and adjusted EBITDA was $2.2 million exceeding guidance. This translates to a margin of 10% and represents the fifth consecutive quarter of adjusted EBITDA margins at or above 10%. Reflecting the ongoing benefits of our cost discipline, sharper prioritization of core growth initiatives, and improving operating leverage.

第三季度，營收總計 2,240 萬美元，符合預期；調整後 EBITDA 為 220 萬美元，超出預期。這意味著利潤率為 10%，並且是連續第五個季度調整後 EBITDA 利潤率達到或超過 10%。這反映了我們持續的成本控制效益、對核心成長計劃的更嚴格優先排序以及營運槓桿的提高。

On a pro forma basis, excluding non-cash and other non-recurring charges and the impact of the 2024 divestitures. OpEx decreased by approximately 8%, reflecting continued cost discipline and operating efficiency. On this front, we're adopting additional automation-based approaches to certain aspects of our operations which should drive higher productivity across the enterprise and yield incremental improvements to our overall profile over time. During the quarter we also shored up our balance sheet with maturities extended out by 4 years, thus strengthening our capital structure and providing long-term flexibility to execute on our strategy. I'll turn to growth and commercial momentum now.

以備考基準計算，不包括非現金和其他非經常性費用以及 2024 年資產剝離的影響。營運支出下降了約 8%，反映了持續的成本控制和營運效率。在這方面，我們正在對營運的某些方面採用更多基於自動化的方法，這將提高整個企業的生產力，並隨著時間的推移逐步改善我們的整體形象。本季度，我們還透過將到期日延長 4 年來鞏固資產負債表，從而加強了我們的資本結構，並為執行我們的策略提供了長期靈活性。接下來我將談談成長和商業動能。

This quarter we stabilized ARR with a modest quarter to quarter increase on a pro forma basis. This signals an initial stabilization of the core business and underscores that the strategic actions we're taking are starting to produce tangible results. Most importantly, it reflects early traction as we continue building a product-led organization positioned for higher levels of long-term growth.

本季度，我們穩定了年度經常性收入（ARR），以備考基準計算，季度較上季略有成長。這標誌著核心業務初步趨於穩定，並強調我們正在採取的策略行動開始產生實際成果。最重要的是，這反映出我們已取得初步進展，我們將繼續建立以產品為主導的組織，以實現更高水準的長期成長。

I'll explain some of the factors behind the current results, and we'll also walk through how this fits in the context of our transformation of the business. Inbound demand remains strong, indicating a continued need for our solutions, as well as specific interests and policy notes, and our teams are maintaining a healthy sales pipeline. Corporate new logo sales also showed continued momentum in Q3. I noted last quarter that win rates among enterprise clients rose 400 basis points quarter over quarter.

我將解釋造成目前業績的一些因素，我們也將探討這如何融入我們業務轉型的大背景下。市場需求依然強勁，顯示市場對我們的解決方案以及具體的興趣和政策方向仍有持續的需求，我們的團隊也保持著健康的銷售管道。第三季度，企業新標誌銷售也持續保持成長動能。我上季注意到，企業客戶的成交率比上季上升了 400 個基點。

In Q3, we saw that momentum continue with another 400 basis point improvement in that segment when compared with Q2. Year-to-date across all corporate segments, win rates are up 500 basis points overall and equally important, we're not just winning more, we're winning higher value deals. Average contract values have trended meaningfully upward over the course of the year. And notably, corporate multi-year contracts for our policy data now account for approximately 50% of new logo AR, up from about 20% in early 2024. A 2.5 times increase that strengthens revenue visibility and is expected to support further improvements in gross retention in 2026.

第三季度，我們看到這一勢頭得以延續，與第二季度相比，該領域又提高了 400 個基點。今年迄今為止，所有企業部門的成交率總體提高了 500 個基點，同樣重要的是，我們不僅贏得了更多，而且贏得了更高價值的交易。今年以來，平均合約價值呈現顯著上升趨勢。值得注意的是，我們政策數據的多年企業合約目前約佔新商標 AR 的 50%，高於 2024 年初的約 20%。成長 2.5 倍，增強了收入可見性，預計將支持 2026 年毛留存率的進一步提高。

This progress in corporates is especially noteworthy in light of the ongoing volatility in the federal space. Including continued disruption this quarter due to the extended government shutdown. Strong corporate performance has helped offset that pressure and should serve as a solid foundation for further growth as conditions in the federal sector stabilize over time. Our product innovation continues to underpin this progress, and in Q3 we released a series of meaningful enhancements to policy notes including AI-powered legislative drafting. Social listening to identify early policy signals, upgraded reporting, and AI generated tariff impact reports.

鑑於聯邦領域持續的動盪，企業界的這項進展尤其值得關注。包括本季因政府長期停擺而持續造成的干擾。強勁的企業業績有助於抵消這種壓力，並且隨著聯邦部門狀況逐漸穩定，這將為進一步成長奠定堅實的基礎。我們的產品創新持續支撐著這項進展，在第三季度，我們發布了一系列對政策說明的重要改進，包括人工智慧驅動的立法起草。社群媒體監聽，用於識別早期政策訊號、升級報告和人工智慧產生的關稅影響報告。

More recently, we launched Bill Comparison, an AI-driven capability that allows users to instantly redline and compare versions of pending bills, a powerful example of our ability to leverage advanced AI to deliver meaningful incremental value to our users and increasingly move towards automating customer workflows. Year-to-date, our product team has now launched more than 35 major enhancements to the PolicyNote platform since its launch in January. These continuous improvements are reinforcing policyNote as a cornerstone of our ecosystem and a key contributor to strengthening customer engagement and retention.

最近，我們推出了帳單比較功能，這是一項由人工智慧驅動的功能，使用戶能夠立即修改和比較待處理帳單的不同版本。這有力地證明了我們有能力利用先進的人工智慧為使用者提供有意義的增量價值，並不斷朝著自動化客戶工作流程的方向發展。今年以來，自1月推出以來，我們的產品團隊已經對 PolicyNote 平台進行了超過35項重大改進。這些持續的改進鞏固了 policyNote 作為我們生態系統基石的地位，並使其成為加強客戶參與度和留存率的關鍵貢獻者。

Usage trends on policy note remain overwhelmingly positive across all nature of metrics that we track internally, including the behaviors that indicate high usage frequency, product stickiness, and highly valuable integration into cost workflows. We view these patterns as early indicators of future improvements to gross and net retention. And combined with our increasing success in new logo sales, they are expected to serve as the foundation for durable, long-term growth.

從我們內部追蹤的所有指標來看，政策說明的使用趨勢仍然總體上是積極的，包括表明高使用頻率、產品黏性和與成本工作流程高度有價值的整合的行為。我們認為這些模式是未來毛留存率和淨留存率改善的早期指標。再加上我們在新標誌銷售方面取得的不斷成功，預計它們將成為持久、長期成長的基礎。

This is why we have placed the focus on moving our existing customers on the policy note, and to that end, migration to PolicyNote continues to go well, with the vast majority of accounts using our legacy fiscal note platform having been successfully transitioned to Policy notes. This will put us in position to have completed the migration from the legacy fiscal note platform by the end of this calendar year as planned.

這就是為什麼我們把重點放在將現有客戶遷移到 PolicyNote 上的原因，為此，向 PolicyNote 的遷移進展順利，絕大多數使用我們傳統財務憑證平台的帳戶都已成功過渡到 PolicyNote。這將使我們能夠按計劃在今年年底前完成從舊版財務報表平台的遷移。

As for our 2025 guidance, Jon will walk through that in more detail. But importantly, the update we've given for both total revenues and adjusted EBITA remain within our previous ranges and reflect our current outlook on the business with 2 months before year end.

至於我們 2025 年的指導方針，Jon 將會詳細講解。但重要的是，我們對總收入和調整後 EBITA 的更新仍然在我們先前的範圍內，並反映了我們目前對業務的展望，距離年底還有 2 個月。

In summary, we continue to see growing momentum in our corporate pipeline and steady progress in our migration of policy notes, which together provide a clear path to renewed sustainable growth. These results reflect steady execution, discipline management, and tangible progress against our strategic priorities. While there's still work ahead, the trajectory is positive, and we remain confident in our ability to deliver sustainable growth, expanding profitability, and long-term value for shareholders. With that, I'll turn it over to Jon to walk through the financials in more detail, Jon.

總而言之，我們看到企業業務發展勢頭持續增強，政策文件遷移工作穩步推進，這兩者共同為實現永續成長提供了清晰的路徑。這些結果反映了我們穩步執行策略重點、嚴格管理並取得實際進展。儘管未來還有很多工作要做，但發展勢頭良好，我們仍然有信心實現永續成長、提高獲利能力，並為股東創造長期價值。接下來，我將把發言權交給喬恩，讓他更詳細地講解一下財務狀況。

Thank you, Josh. Good evening and thank you for joining us.

謝謝你，喬許。晚上好，感謝各位的參與。

In the third quarter, fiscal notes successfully met its previous guidance for both total revenue and adjusted EBITA. As a result, we're updating our full year revenue guidance to a range of $95 to $96 million with adjusted EBITA projected to be approximately $10 million. Both figures remain within our previously established ranges. This updated guidance reflects the strong performance observed in our core business. While also accounting for the specific impact of our public sector business due to unusual disruptions in the federal sector. Overall, operationally, the business is showing resilience and indications of stabilization in the core policy products.

第三季度，財務報告成功實現了先前對總收入和調整後 EBITA 的預期。因此，我們將全年營收預期更新為 9,500 萬至 9,600 萬美元，調整後 EBITA 預計約 1,000 萬美元。這兩個數字均在我們先前確定的範圍內。此次更新後的業績指引反映了我們核心業務的強勁表現。同時考慮到聯邦部門異常中斷對我們公共部門業務的具體影響。整體而言，從營運角度來看，該業務展現出韌性，核心保單產品也出現了趨於穩定的跡象。

Underlying our operations, we also secured our capital structure in a way that affords us the runway and flexibility necessary to execute on our product-led strategy. On that note, the fiscal note previously had several convertible notes on its balance sheet, all subordinate to our senior term loan. These notes carried significant payment and maturity obligations starting in 2025 and continuing into 2026 and 2027, preventing the company from refinancing its senior debt. The August transactions replaced and or amended these convertible notes, reducing their balance and eliminating most of our annual pick interest.

在營運方面，我們也確保了資本結構，從而為我們提供了執行產品主導策略所需的資金和靈活性。需要說明的是，該財政票據先前在其資產負債表上有幾張可轉換票據，所有這些票據均次於我們的高級定期貸款。這些票據從 2025 年開始，一直延續到 2026 年和 2027 年，都存在重大的支付和到期義務，這使得該公司無法對其優先債務進行再融資。8 月的交易替換或修改了這些可轉換票據，減少了它們的餘額，並消除了我們大部分的年度利息。

These transactions enabled Fiscal Note to refinance its senior term loan, and collectively the transactions allow us to better manage our capital structure and provide a stronger foundation for our product-led growth strategy moving forward. The new debt stack can be found in both the revised corporate overview presentation issued today in conjunction with our earnings release and in the Form 10-Q.

這些交易使 Fiscal Note 能夠為其高級定期貸款進行再融資，而這些交易共同使我們能夠更好地管理我們的資本結構，並為我們未來以產品為主導的成長策略奠定更堅實的基礎。新的債務結構可以在今天與我們的盈利報告一起發布的修訂版公司概覽簡報以及 10-Q 表格中找到。

With that as a backdrop, let me dive into some of the key drivers behind our third quarter financial results. Total revenue for Q3 2025 was $22.4 million above the midpoint of our forecast of 21 to $23 million. When compared to the prior year, revenue is $7 million lower, primarily due to the divestiture of AOL in October of 2024, Oxford Analytica and Dragonfly at the end of Q1 2025, and Timebase at the end of Q2 2025. Subscription revenue, which remains the cornerstone of our business, was $21.2 million for the quarter, $6 million lower, again largely due to divestitures. Subscription revenue accounted for 94% of total revenue, slightly higher than our historical trend of 92%. On a pro forma basis, after adjusting for the impact of the mentioned divestitures, Q3 2025 subscription revenue was $1.8 million lower than the prior year period, reflecting our continued transition to policy note from the legacy fiscal note platform.

在此背景下，讓我深入探討我們第三季財務表現背後的幾個關鍵驅動因素。2025 年第三季總收入比我們預測的 2,100 萬至 2,300 萬美元的中點高出 2,240 萬美元。與前一年相比，收入減少了 700 萬美元，這主要是由於 2024 年 10 月剝離了 AOL，2025 年第一季末剝離了 Oxford Analytica 和 Dragonfly，以及 2025 年第二季末剝離了 Timebase。訂閱收入仍然是我們業務的基石，本季為 2,120 萬美元，比上一季減少了 600 萬美元，這主要是由於資產剝離造成的。訂閱收入佔總收入的 94%，略高於我們以往 92% 的趨勢。按備考基準，在調整上述資產剝離的影響後，2025 年第三季訂閱收入比去年同期減少了 180 萬美元，這反映了我們持續從傳統的財務報告平台過渡到政策報告平台。

As of Q3 2025, annual recurring revenue is $84.8 million versus $92.2 million in 2024 on a pro forma basis, a decline of $7.4 million as Josh spoke to earlier, on a sequential basis, Q3 2025 ARR increased by $100,000 versus Q2 2025 on a pro forma basis, adjusting for the divestitures. This is an important indicator of our mounting momentum for our policy note platform launched in January of this year.

截至 2025 年第三季度，以備考基準計算，年度經常性收入為 8,480 萬美元，而 2024 年為 9,220 萬美元，減少了 740 萬美元。正如 Josh 先前提到的，按季度計算，2025 年第三季的年度經常性收入比 2025 年第二季增加了 10 萬美元（按備考基準計算），並已對資產剝離進行了調整。這是衡量我們今年1月推出的政策簡報平台發展動能日益強勁的重要指標。

For the 3rd quarter 2025, net revenue retention was 98%, level with the prior year and up 200 basis points over the second quarter on a pro forma basis. Principal operating expenses in Q3 2025 extended the trend of year over year decreases, reflecting the impact of ongoing efficiency measures initiated in 2023, advanced in 2024, and maintained across 2025. Such discipline is essential to our path to expanding operating margins and adjusted EBITA going forward.

2025 年第三季淨收入留存率為 98%，與前一年持平，以備考基準計算比第二季成長 200 個基點。2025 年第三季主要營運費用延續了年減的趨勢，反映了 2023 年啟動、2024 年推進、2025 年持續實施的效率提升措施的影響。這種自律對於我們未來擴大營業利潤率和調整後 EBITA 至關重要。

Looking at expenses in more detail, Q3 2025 cost of revenue decreased by $1.5 million or 23% versus the prior year. R&D decreased by $1.2 million or 36%. Sales and marketing decreased by $2.8 million or 31%, and editorial decreased by $1.4 million or 30%.

更詳細地來看支出狀況，2025 年第三季的收入成本比前一年減少了 150 萬美元，降幅達 23%。研發支出減少了120萬美元，降幅達36%。銷售和行銷支出減少了 280 萬美元，降幅達 31%；編輯支出減少了 140 萬美元，降幅達 30%。

As for G&A, we saw an increase of $3.3 million or 31%, which included approximately $3.1 million of non-cash charges and approximately $4.3 million of cash costs related to our refinancing activities, the sale of Time Base, as well as other non-recurring costs which we recorded in G&A during the quarter. Excluding these items, G&A would have declined year over year as well. Total Q3 2025 operating expenses fell by $4 million or 11% versus the prior year. On a pro forma basis, excluding non-cash and other non-recurring charges and the impact of the 2024 divestitures. OpEx decreased by approximately $1.7 million or 8%.

至於一般及行政費用，我們看到增加了 330 萬美元，增幅達 31%，其中包括約 310 萬美元的非現金支出和約 430 萬美元的現金成本，這些成本與我們的再融資活動、出售 Time Base 以及我們在本季度計入一般及行政費用的其他非經常性成本有關。剔除這些項目後，一般及行政費用也會較去年同期下降。2025 年第三季總營運支出比去年同期減少了 400 萬美元，降幅達 11%。以備考基準計算，不包括非現金和其他非經常性費用以及 2024 年資產剝離的影響。營運支出減少了約 170 萬美元，即 8%。

Q3 2025 gross margin was 79%, level with the prior year on a GAAP basis. Q3 2025 adjusted gross margin was 87% as compared to 86% in the prior year. Both reflect the impact of discipline cost management. Adjusted EBITDA was a positive $2.2 million a decline over the prior year due to the mentioned divestitures, but slightly above the guidance we gave and the ninth consecutive quarter of positive performance on this important profitability metric. Going forward, we will continue to drive increasing operating leverage across the business while steadily expanding our top-line through product-led growth.

2025 年第三季毛利率為 79%，與去年同期持平（以 GAAP 計算）。2025年第三季調整後毛利率為87%，而去年同期為86%。兩者都體現了紀律成本管理的影響。經調整的 EBITDA 為正值 220 萬美元，較上年同期下降，原因是上述資產剝離，但略高於我們給出的預期，並且是該重要盈利指標連續第九個季度實現正增長。展望未來，我們將繼續推動業務營運槓桿的提升，同時透過產品驅動成長穩步擴大營收。

Cash and cash equivalents including short-term investments at the end of Q3 2025 worth $31.8 million reflecting a sufficient cash level to fund our continuing progress, turning around the core business and transitioning into a durable and sustainable growth engine.

截至 2025 年第三季末，現金及現金等價物（包括短期投資）價值 3,180 萬美元，這反映出我們擁有充足的現金水平，可以為我們持續發展、扭轉核心業務並轉型為持久可持續的成長引擎提供資金。

Finally, let me speak to guidance. We are updating our guidance remaining within our previous guidance range. Specifically, we are narrowing the forecast to now expect full year 2025 revenue of approximately $95 to $96 million from a previous range of $94 to $100 million. In full year 2025 adjusted EBITA approximately $10 million from a previous range of $10 to $12 million. As a consequence, we are expecting fourth quarter 2025 total revenues. Of 22 to $23 million and adjusted EBITA of approximately $2 million.

最後，我想談談指導方面的問題。我們正在更新指導意見，但仍保持在先前的指導範圍內。具體來說，我們將預測範圍縮小至 2025 年全年收入約為 9,500 萬至 9,600 萬美元，而先前的預測範圍為 9,400 萬至 1 億美元。2025 年全年調整後 EBITA 約為 1,000 萬美元，此前預計為 1,000 萬至 1,200 萬美元。因此，我們預計 2025 年第四季總營收將達到 2025 年 4 月。2200萬至2300萬美元，調整後EBITA約200萬美元。

Overall, our Q3 and year-to-date performance demonstrate a healthy business with increasing strength and resilience. Our streamlined operating plan prioritizes innovation, consistently generating positive customer feedback and highlighting the value of policy notes enhancement since its January launch.

總體而言，我們第三季和年初至今的業績表明，我們的業務發展健康，實力和韌性不斷增強。我們精簡的營運計畫優先考慮創新，自 1 月推出以來，不斷獲得正面的客戶回饋，並凸顯了政策說明改進的價值。

We are also committed to prudent cash management, controlling capital expenditures, reducing cash interest expense, and operating expenses. These efforts are all aimed at accelerating our progress towards positive free cash flow and sustainable, profitable long-term growth. Year-to-date, we have achieved a great deal in 2025, and we are encouraged by the clear positive trends we are seeing across the product and customer metrics which drive everything.

我們也致力於審慎的現金管理，控制資本支出，減少現金利息支出和營運費用。這些努力都是為了加快我們實現正自由現金流和可持續、獲利的長期成長的進程。截至目前，我們在 2025 年取得了巨大成就，我們對產品和客戶指標中展現出的明顯正面趨勢感到鼓舞，這些指標驅動著一切。

We know we are on the right path and we look forward to reporting our continued success in establishing durable growth in the business and creating substantial value for customers and shareholders alike. That concludes my prepared remarks. I'll turn it over to the operator to begin the question-and-answer session. Operator.

我們知道我們走在正確的道路上，我們期待繼續報告我們在業務中實現可持續增長以及為客戶和股東創造實質價值的成功。我的發言稿到此結束。我將把電話交給接線員，開始問答環節。操作員。

(Operator Instructions)

（操作說明）

Mike Latimore, Northland Capital Markets.

Mike Latimore，北地資本市場。

Great, thanks. Yeah, good evening. Good to see the ARR andRR improvement here. Nice to see.

太好了，謝謝。晚安.很高興看到這裡的 ARR 和 RR 都有所改善。很高興看到這一點。

Thanks Josh, on the, I think you said that ACV of, deals or ACV overall is getting bigger. Can you get a little more color on that? Is it, more users and current customers, more usage, across, the customer base, or, some solid cross sells like global data.

謝謝 Josh，關於這一點，我想你說過 ACV（年度合約價值）、交易或整體 ACV 都在成長。能再詳細說說嗎？是更多用戶和現有客戶，更多使用量，更廣泛的客戶群，還是像全球數據這樣可靠的交叉銷售？

Sure, Mike, thanks for the question. The single biggest driver behind the higher ACVs really is leveraging global data more. We've done some work to restructure our global data packages, and I think have done a very good job bringing those to market. That in turn extends use cases through the enterprise, which makes it prime for our larger corporate clients, so the larger enterprise and extending down through to mid-market. So we see a lot of potential for that going forward as well.

當然，麥克，謝謝你的提問。提高平均車輛價值的最大驅動因素實際上是更多地利用全球數據。我們已經做了一些工作來重組我們的全球資料包，我認為我們在將這些資料包推向市場方面做得非常好。這反過來又擴展了整個企業的用例，使其成為我們大型企業客戶的理想選擇，從大型企業擴展到中型市場。所以我們看到這方面未來也有很大的發展潛力。

Got you. Okay. And then, you've been migrating customers to policy note, sometimes when companies do those kind of migrations they see churn pick up. It seems like you haven't seen any change materially in churn with these migrations. Is that fair?

抓到你了。好的。然後，您一直在將客戶遷移到保單備註，有時當公司進行此類遷移時，他們會發現客戶流失率上升。看起來這些遷移並沒有在客戶流失率上帶來任何實質的改變。這樣公平嗎？

Yeah, that's correct. We haven't really seen any meaningful migration related churn. We've had a very positive experience moving customers on the policy note, both in terms of how the migration itself has gone, but also, as we've mentioned with the usage metrics and engagement that we see once customers are on there.

是的，沒錯。我們還沒有真正看到任何與遷移相關的顯著人員流失。我們在將客戶遷移到新政策方面獲得了非常積極的體驗，無論是遷移本身的進展情況，還是正如我們之前提到的，客戶遷移後使用情況和參與度方面的數據，都令人滿意。

I got it. And then. I think you highlighted new logo bookings were good again. I just wanted to clarify that you said that and then, were they, was that the trajectory as expected or any different from what you were thinking?

我得到了它。進而。我認為你強調的新logo預訂情況再次很好。我只是想確認一下，你剛剛說了那番話，然後，事情的發展軌跡是否符合預期，還是和你預想的有所不同？

So Mike, yes, that's correct. So we did see continued improvement in new logo bookings for corporates in particular where we do expect to see continued improvements and advancements over time. What we've seen has been success on win rates, success on the higher ACBs, and success in continuing to find new customers to. Multi-year commitments and again we think that's a factor of better execution that we've seen, better offerings that we have both in terms of policy note, specifically the global data packages and the like. We believe that we're delivering significant value to these customers and can continue to drive improvements in ACBs over time.

所以麥克，是的，沒錯。因此，我們看到企業新商標預訂量持續改善，我們預計隨著時間的推移，這一領域將持續改善和進步。我們看到的是，我們在勝率方面取得了成功，在更高的平均客戶貢獻值 (ACB) 方面取得了成功，並且在不斷尋找新客戶方面也取得了成功。多年承諾，我們認為這是執行力提升的一個因素，也是我們在政策說明、全球資料包等方面提供更優質產品和服務的因素。我們相信，我們正在為這些客戶創造巨大的價值，並且能夠隨著時間的推移繼續推動 ACB 的改進。

Yeah and then just one question on kind of operating efficiency. I think you mentioned that there might be opportunities for more automation within the business over time I guess can you just provide a little more detail on that and maybe the magnitude of the factor.

是的，還有一個關於營運效率的問題。我想您提到過，隨著時間的推移，企業內部可能會有更多自動化的機會。您能否就此提供更多細節，以及該因素的影響程度？

Sure, Mike, I'd be happy to do that. So what I'm referring to there are areas where we're really starting to see some tangible success in different areas of the business, leveraging automation in different ways. And so for example, we've been doing a better job of taking advantage of opportunities with using agentic AI in our coding with our R&D teams, and we've seen that reflected in tangible success. With new features that we've been able to launch much more quickly leveraging agentic AI than what we would have been able to do without, and that's an example where I expect to see much higher productivity which will enable us to drive more advanced features for our customers more quickly, which should help improve productivity and top-line and again with our the way we're operating the business, our expanding margins. More and more of those top-line dollars will flow right to the bottom line. There are also other areas of the business where we're leveraging more automation and actually driving internal efficiencies, being able to accomplish more with less, and I expect we'll see both flavors of improvement continue over time. It'll be a real focus of ours for 2026, so no tangible discussion around that until we get to talking about 2026 numbers at a later point, but it's something that we're really starting to see some uptake and opportunity there.

當然可以，麥克，我很樂意這麼做。我指的是，在業務的不同領域，我們確實開始看到一些實際的成功，以不同的方式利用自動化。例如，我們一直在努力利用研發團隊在編碼中使用智慧人工智慧的機會，並且已經看到了實際的成功。借助智慧人工智慧，我們能夠比以前更快地推出新功能，這就是一個例子，我預計這將大大提高生產力，使我們能夠更快地為客戶開發更高級的功能，這應該有助於提高生產力和收入，並且隨著我們業務的運作方式，我們的利潤率也在不斷擴大。越來越多的營收成長將直接轉化為利潤成長。在其他業務領域，我們也正在利用更多的自動化技術來提高內部效率，以便能夠以更少的資源完成更多的工作。我預計隨著時間的推移，這兩種改進方式都會繼續下去。這將是我們 2026 年的重點工作，因此在稍後討論 2026 年的具體數字之前，我們不會就此進行實質性的討論，但我們確實開始看到這方面的一些進展和機遇。

Okay. Sounds good. Best of luck.

好的。聽起來不錯。祝你好運。

Thanks, Mike.

謝謝你，麥克。

(Operator Instructions)

（操作說明）

Zach Cummins, B Riley Securities.

Zach Cummins，B Riley Securities。

Hi there, this is Ethan Widell calling in for Zach Cummins. Thanks for taking my questions. To start, it sounds like good news with ARR stabilizing. Can you maybe speak a little bit to your expectations with regard to, a timeline for renewed year over year.

大家好，我是伊森‧維德爾，替札克‧卡明斯打電話過來。謝謝您回答我的問題。首先，ARR趨於穩定，這聽起來是個好消息。您能否談談您對每年續約時間表的期望？

AR growth?

AR增長？

Thanks for the question, Ethan. So we don't guide on ARR, so we're not providing specific guidance there. And again, as we, at a later point as we talk about 2026, we'll start to talk specifically about what that looks like. What I'll say is that, generally speaking, we're encouraged by the progress that we're seeing in the business. We've talked a lot about the transformation that we've made operationally, the transformation that we've seen through policy note, and we're encouraged by this early traction and stabilization that we're seeing now. The single biggest lever for us in the long-term is going to be, will be around gross retention and net retention, and, again, as we've said, part of the foundation for those improvements in gross retention will come through policy note, the better product, the higher engagement, better experience, etc. As well as what we're able to do with multi-years from a new logo standpoint. And, we're going to, keep pushing on, the new logo improvements as well, and, but again, when we're, talking about kind of what you can expect on a year over year basis in the future, and so on, that'll be a discussion at a later point.

謝謝你的提問，伊森。因此，我們不就 ARR 提供指導，所以我們不會在這方面提供具體指導。而且，稍後當我們談到 2026 年時，我們會具體談談那一年會是什麼樣子。我想說的是，總的來說，我們對目前業務的進展感到鼓舞。我們已經多次談到我們在營運方面所做的轉變，以及我們在政策方面所做的轉變，我們對目前看到的這種早期進展和穩定性感到鼓舞。從長遠來看，對我們來說最重要的槓桿將是毛留存率和淨留存率，而且，正如我們所說，提高毛留存率的部分基礎將來自於政策說明、更好的產品、更高的參與度、更好的體驗等等。此外，還有我們從新標誌的角度出發，利用我們多年所能做的事情。而且，我們還會繼續推進新標誌的改進，但是，當我們談到未來每年可以期待什麼等等時，那將是以後要討論的問題。

Understood. I appreciate that. And then, with regard to the federal government shutdown, can you maybe quantify the impact that you're seeing there? and when you speak to volatility in the federal space, is that primarily from the shutdown or are there other elements at play there?

明白了。我很感激。那麼，關於聯邦政府停擺，您能否量化一下您所看到的影響？談到聯邦領域的波動，這主要是由於政府停擺造成的，還是還有其他因素在起作用？

Yeah, in regards to federal government, we've talked about this, throughout the year as we've been seeing the developments in federal, and we talked previously about the fact that just through the efficiency efforts within federal limitations on spending and the like that we were seeing some friction and impact to that segment of our business over the course of the year.

是的，關於聯邦政府，我們今年一直在討論這個問題，因為我們一直在關注聯邦政府的發展，我們之前也討論過，由於聯邦政府在支出限制等方面的效率提升措施，我們在這一年中看到了一些摩擦和對我們業務這一部分的影響。

We're now seeing some added impact through the extended shutdown. The extent of that impact is not perfectly clear because again the kind of the length of the shutdown is still remaining unclear. I would say though for the full year you could estimate the overall impact at somewhere between 2 and $3 million.

現在，我們看到延長停工帶來了一些額外的影響。由於停工持續時間仍不明朗，因此此次停工的影響程度尚不完全清楚。不過，我認為全年的總影響估計在 200 萬到 300 萬美元之間。

Understood, Paul. I appreciate it. Thank you.

明白了，保羅。謝謝。謝謝。

There are no further questions, Mr. Burows. I turn the call back over to you for closing remarks.

布羅斯先生，沒有其他問題了。現在我把電話交還給你，請你做總結發言。

Thank you, Tamika. That concludes our call this evening and we appreciate everyone's participation and look forward to speaking with all of you again in the future. Good night.

謝謝你，塔米卡。今晚的電話會議到此結束，感謝大家的參與，期待未來能再次與大家交流。晚安。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線了。