Progress Software Corp (PRGS) 2024 Q1 法說會逐字稿

Good day and welcome to the Progress Software Corporation Q1 2024 earnings call.

美好的一天，歡迎參加 Progress Software Corporation 2024 年第一季財報電話會議。

Participants are in a listen-only mode.

參與者處於僅聽模式。

After the speaker presentation, there will be a question and answers question.

演講者演講結束後，將進行問答。

During the session, you will need to press star one one on your telephone.

在會議期間，您需要在電話上一一按星號。

You will then hear an automated message advising your handouts withdraw your question, press star one one Today's conference is being recorded.

然後，您將聽到一條自動訊息，建議您的講義撤回您的問題，按明星一一今天的會議正在錄製。

I would now like to hand the conference over Mr. Mike Micciche, Senior Vice President of Investor Relations.

現在我想將會議交給投資者關係高級副總裁 Mike Micciche 先生主持。

Please go ahead.

請繼續。

Okay.

好的。

Thank you, Sherri.

謝謝你，雪莉。

Good to have you back with us.

很高興你回來和我們在一起。

Good afternoon, everyone, and thanks for joining us for Progress Software's first quarter 2024 fiscal financial results conference call online.

大家下午好，感謝您參加 Progress Software 2024 年第一季財務財務業績線上電話會議。

With me this morning, this afternoon are Yogesh Gupta, President and CEO, and Anthony Folger, our Chief Financial Officer.

今天早上和下午與我在一起的有總裁兼執行長 Yogesh Gupta 和財務長 Anthony Folger。

Before we get started, let's go over our Safe Harbor statements.

在開始之前，讓我們先回顧一下我們的安全港聲明。

During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives and other information that might be considered forward.

在本次電話會議中，我們將討論對未來財務和營運績效的展望、公司策略、產品計劃、成本計劃以及未來可能考慮的其他資訊。

Looking such forward-looking information represents Progress Software's outlook and guidance only as of today and is subject to risks and uncertainties.

此類前瞻性資訊僅代表 Progress Software 截至目前的展望和指導，並存在風險和不確定性。

For a description of the risk factors that may affect our results, please refer to the risk factors in our filings with the Securities and Exchange Commission.

有關可能影響我們業績的風險因素的說明，請參閱我們向美國證券交易委員會提交的文件中的風險因素。

Progress Software assumes no obligation to update the forward-looking statements included in this call today.

Progress Software 不承擔更新今天本次電話會議所包含的前瞻性聲明的義務。

Additionally, please note that all the financial figures referenced on this call are non-GAAP measures unless otherwise indicated, and you can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP figures in our financial results press release, which was issued after the market close today.

此外，請注意，除非另有說明，本次電話會議中引用的所有財務數據均為非GAAP 衡量標準，您可以在我們的財務業績新聞稿中找到這些非GAAP 財務衡量標準與最直接可比較的GAAP數據的調節表，其中是在今天收盤後發布的。

This document contains additional information related to our financial results for the first quarter of 2024, and I recommend that you reference those for specific details.

本文檔包含與我們 2024 年第一季度財務業績相關的其他信息，我建議您參考這些信息以了解具體細節。

We also have prepared to proceed with a presentation that contains updated supplemental data for our first quarter 2024 results, providing highlights and additional financial metric metrics, both the earnings release and the supplemental presentation are available in the Investor Relations section of our website at investors dot progress.com. Today's conference call will be recorded in its entirety and we will be available for replay on the Investor Relations section of our website.

我們也準備繼續進行演示，其中包含 2024 年第一季業績的更新補充數據，提供要點和其他財務指標，收益發布和補充演示可在我們網站的投資者關係部分獲取，網址為 Investors dot進步.com 。今天的電話會議將被完整記錄，我們將在我們網站的投資者關係部分進行重播。

And with that, I will turn it over to Yogesh.

有了這個，我會把它交給 Yogesh。

So thank you, Mike, and good afternoon.

謝謝你，麥克，下午好。

Everyone, and thank you for joining us today.

各位，感謝你們今天加入我們。

As we announce the results of our first quarter of fiscal 2024, it was a busy quarter for us.

當我們宣布 2024 財年第一季的業績時，這對我們來說是一個忙碌的季度。

So let's jump right into total revenue of $185 million in the first quarter came in above the high end of our guidance and represents 12% year-over-year growth once again, our top line benefited from steady demand across geographies and product ARR came in at $571 million, which was up slightly year over year in constant currency and MLR was 99%, which again reflects the resiliency of our business and the strength of our customer relationships.

因此，讓我們直接進入第一季 1.85 億美元的總收入，高於我們指導的上限，並再次代表 12% 的同比增長，我們的營收受益於跨地區的穩定需求，並且產品 ARR 進入達到5.71億美元，以固定匯率計算，較去年同期略有成長，MLR 為99%，這再次反映了我們業務的彈性和客戶關係的實力。

Our operating margins were 42% ahead of our expectations and were driven by our strong top line performance, coupled with solid cost management and the realization of efficiencies as the result of the completion of the Mach logic integration, EPS of $1.25 came in $0.09 above the high end of our latest guidance.

我們的營業利潤率比我們的預期高出42%，這得益於我們強勁的營收業績，再加上紮實的成本管理以及完成馬赫邏輯集成而實現的效率，每股收益為1.25 美元，比預期高出0.09 美元。

And adjusted free cash flow was $72.2 million.

調整後的自由現金流為 7,220 萬美元。

As you saw in our press release, we are raising guidance for both these metrics as our existing business remains strong on the top line and we continue to run been.

正如您在我們的新聞稿中看到的，我們正在提高這兩個指標的指導，因為我們現有的業務在營收方面仍然強勁，並且我們將繼續運作。

Our balance sheet remains strong, and we finished the quarter with cash and cash equivalents of over $133 million.

我們的資產負債表仍然強勁，本季末我們的現金和現金等價物超過 1.33 億美元。

Dsos were 50 based versus 62 last quarter, which is reflective of the timing of collections we mentioned on the fourth quarter call in January.

Dsos 數量為 50 個，上季為 62 個，這反映了我們在 1 月第四季電話會議中提到的收款時間。

In other news, as you might have seen, we also announced a possible offer to acquire Maria IDB, a New York Stock Exchange listed Irish open-source database company, who reported fiscal 2023 revenue of around $53 million.

在其他新聞中，正如您可能已經看到的，我們還宣布了可能收購Maria IDB 的要約，這是一家在紐約證券交易所上市的愛爾蘭開源數據庫公司，該公司報告2023 財年收入約為5300 萬美元。

While EBITDA is used by over 600 enterprises around the globe for their mission-critical applications.

全球有 600 多家企業將 EBITDA 用於其關鍵任務應用程式。

As we have repeatedly demonstrated when we've acquired other enterprise software companies, we focus on serving the needs of our customers as evidenced by our net retention rates of around 100%.

正如我們在收購其他企業軟體公司時反覆證明的那樣，我們專注於滿足客戶的需求，我們大約 100% 的淨保留率就證明了這一點。

This makes us the right home for Maria DB.

這使我們成為 Maria DB 的理想家園。

Our possible offer of $0.6 a share represents an enterprise value multiple of under 1.5 times revenue.

我們可能提出的每股 0.6 美元的報價相當於收入的 1.5 倍以下的企業價值倍數。

We believe that this valuation would represent a truly compelling offer from IDB shareholders as it is a significant premium to their recent stock price.

我們相信，這項估值將代表 IDB 股東提出的真正具有吸引力的報價，因為它比他們最近的股價有顯著溢價。

We are disciplined buyers and will only proceed if the terms generate value from the shareholder.

我們是紀律嚴明的買家，只有在條款為股東帶來價值的情況下才會繼續購買。

Turning to our products and markets, we're seeing customers respond positively to our AI-powered products as these products enable them to rapidly realize the business benefits of AI technologies.

談到我們的產品和市場，我們看到客戶對我們的人工智慧產品做出了積極的反應，因為這些產品使他們能夠快速實現人工智慧技術的商業利益。

For example, HeartLogic and some are for enables sophisticated generative AI applications through that or retrievable automated generation, the retrieval augmented generation RAG is becoming the most popular method to contextualize and to dramatically improve the accuracy of generator responses, morphologic and Semma for enable our customers to leverage their own proprietary data and content to augment the Gemini capabilities of LLS.

例如，HeartLogic 和一些用於透過可檢索的自動生成來實現複雜的生成人工智慧應用程序，檢索增強生成RAG 正在成為最流行的方法，用於情境化並顯著提高生成器響應、形態學和Semma的準確性，從而使我們的客戶能夠利用他們自己的專有數據和內容來增強 LLS 的 Gemini 功能。

We continue to make advances with AI in our digital experiences products as well.

我們也在數位體驗產品中持續利用人工智慧取得進步。

Sitefinity 15 introduced out-of-the-box generative AI capabilities based on Azure open AI that allows content, editors and marketers to generate, improve, optimize and personalize content at the click of a button.

Sitefinity 15 引入了基於 Azure 開放式 AI 的開箱即用的生成 AI 功能，讓內容、編輯和行銷人員可以點擊按鈕以產生、改進、優化和個人化內容。

And last quarter, we released a high-powered observability product flow on D for anomaly detection to help cybersecurity professionals detect understand, prioritize and quickly respond to security events.

上個季度，我們在 D 上發布了用於異常檢測的高效能可觀測性產品流程，以協助網路安全專業人員偵測、理解、確定優先順序並快速回應安全事件。

It operations managers are facing an ever-growing volume of increasingly sophisticated cyber attacks flow.

IT 營運經理面臨著數量不斷增加且日益複雜的網路攻擊流。

Non-eds uses AI to analyze the increasingly complex network operations data to pinpoint issues and to provide context around the potential intrusion to help inform an effective response.

Non-eds 使用人工智慧來分析日益複雜的網路運營數據，以查明問題並提供有關潛在入侵的背景信息，以幫助做出有效的回應。

This product has only been available for three months.

該產品僅上市三個月。

And it's already on the shortlist in two categories of 2024 cloud security awards, namely cloud security, Innovator of the Year and Best Network Security solution.

它已入圍 2024 年雲端安全獎兩個類別的候選名單，即雲端安全、年度創新者和最佳網路安全解決方案。

We also continue to offer new SaaS AIOps products to complement our existing portfolio.

我們也繼續提供新的 SaaS AIOps 產品來補充我們現有的產品組合。

For example, load master three 60 is any SaaS control plane for large load master deployments.

例如，負載主機三 60 是用於大型負載主機部署的任何 SaaS 控制平面。

The product provides telemetry data that will allow customers to realize the value derived from load master deployments, which in turn will lead to expansion opportunities and greater renewal rate freeze only a quarter, though the subscription product is already seen.

該產品提供的遙測數據將使客戶能夠實現從負載主部署中獲得的價值，這反過來又會帶來擴展機會和更大的續訂率凍結，儘管訂閱產品已經出現在四分之一的時間裡。

Meaningful customer adoption and SaaS, which was released on second half of 2023, has also been embraced by many enterprise customers.

有意義的客戶採用，2023年下半年發布的SaaS也受到了許多企業客戶的歡迎。

Amazon recently announced that the AWS Officeworks platform will be discontinued, and several of those customers have moved to SaaS.

Amazon 最近宣布將停止使用 AWS Officeworks 平台，其中一些客戶已轉向 SaaS。

Lastly, we also released a subscription only version of ports of bone, which our partners have embraced enthusiastically.

最後，我們還發布了僅限訂閱的 ports ofbones 版本，受到了合作夥伴的熱烈歡迎。

We'll have several customers sign up within a month of launch and expect that the product will drive adoption of what's up gold even further.

我們將在推出後一個月內有幾位客戶註冊，並期望該產品將進一步推動 What's up gold 的採用。

And as always, our workhorse product OpenEdge performed extremely well as revenues remained robust and customers remain steadfast in their commitment to that plan.

像往常一樣，我們的主力產品 OpenEdge 表現非常出色，收入保持強勁，客戶仍然堅定地致力於該計劃。

Turning to other recent news, at the very end of the quarter, you likely saw that we announced a convertible notes offering, which was upsized to $450 million and a new $900 million revolving credit facility.

轉向其他最近的新聞，在本季度末，您可能會看到我們宣布了一項可轉換票據發行，其規模擴大到 4.5 億美元，並新增了 9 億美元的循環信貸額度。

These transactions will lower our interest rate and give us more flexibility and greater scale for accretive M&A by fortifying our balance sheet.

這些交易將降低我們的利率，並透過強化我們的資產負債表，為我們提供更大的靈活性和更大的增值併購規模。

Even more to provide a bit of detail.

甚至更多地提供一些細節。

We use the proceeds of the convertible notes to pay off all of our previously existing bank debt, which carried a variable interest rate slightly above 7%.

我們使用可轉換票據的收益來償還我們之前所有的銀行債務，這些債務的浮動利率略高於 7%。

With that bank debt refinanced into lower cost convertible notes, we were able to amend our bank facilities and put in place a new $900 million revolving line of credit.

透過將銀行債務再融資為成本更低的可轉換票據，我們能夠修改我們的銀行融資並設立新的 9 億美元循環信貸額度。

This new revolving line of credit is two times the size of our prior revolver and has less restrictive terms, which reflect our solid recurring revenues, durable cash flows and strong record of executing well on acquisitions.

這項新的循環信貸額度是我們之前的循環信貸額度的兩倍，並且限制性條款較少，這反映了我們穩健的經常性收入、持久的現金流以及良好的收購執行記錄。

Anthony will go through both transactions in more detail.

安東尼將更詳細地討論這兩筆交易。

While I want to share that we're very pleased with the outcome and how it positions us to continue executing our strategy going forward.

雖然我想分享的是，我們對結果以及它如何使我們繼續執行我們的策略感到非常滿意。

I want to emphasize that while we now have access to more capital which we can deploy with greater flexibility, our discipline around our total growth strategy will remain unchanged.

我想強調的是，雖然我們現在可以獲得更多資本，可以更靈活地部署，但我們圍繞整體成長策略的紀律將保持不變。

We will still target infrastructure software companies that have excellent technology, a sticky customer base, solid recurring revenues and opportunities for synergies that will allow us to quickly reach our operating margin targets.

我們仍將瞄準那些擁有卓越技術、黏性客戶群、穩定的經常性收入和協同效應機會的基礎設施軟體公司，這些公司將使我們能夠快速實現營業利潤率目標。

Likewise, we intend to remain extremely disciplined with respect to how much we pay for our company to ensure that our return on invested capital exceeds our weighted average cost of capital and be watchful of our net leverage ratio.

同樣，我們打算在為公司支付的金額方面保持嚴格的紀律，以確保我們的投資資本回報率超過我們的加權平均資本成本，並留意我們的淨槓桿率。

So while we have access to more capital and the ability to move quicker opportunities, we do not intend to change the model that has been working well for us so far, the opportunities for M&A remain robust, and we remain very active leading deals within our targeted audience.

因此，雖然我們可以獲得更多資本並有能力更快地抓住機遇，但我們並不打算改變迄今為止對我們來說運作良好的模式，併購機會仍然強勁，而且我們仍然非常積極地在我們的業務範圍內主導交易。

We continue to feel confident not only in the availability of quality companies, but also in our ability to execute more than one transaction in a year.

我們不僅對優質公司的可用性充滿信心，而且對我們一年內執行多筆交易的能力充滿信心。

Before handing off to Anthony, I'd like to take a moment to talk about Moovit as you know, we have been very transparent about motor tolerability in our disclosures, including our recent 10 K. As we have previously shared, the IT that primarily impacted the on-prem version of Moovit, which is deployed in our customers' environments and where we have no insight.

在交給Anthony 之前，我想花點時間談談Moovit，正如您所知，我們在披露的資訊中對運動耐受性非常透明，包括我們最近的10 K。是影響了 Moovit 的本地版本，該版本部署在我們客戶的環境中，而我們對此一無所知。

Nevertheless, we rapidly patched and proactively communicated to our customers to help them defend against the attacks on their mobile device.

儘管如此，我們還是迅速修補並主動與客戶溝通，幫助他們防禦行動裝置上的攻擊。

And while Moovit represents less than 4% of our total revenues for progress, every mobile customer is important, we have received very positive feedback regarding our response to the situation.

雖然 Moovit 的進展僅占我們總收入的不到 4%，但每個行動客戶都很重要，我們收到了有關我們應對這一情況的非常積極的回饋。

And I believe that our customer first approach to everything that we do, he's helped us navigate a difficult situation and minimize the impact to our business.

我相信我們所做的一切都是以客戶為先，他幫助我們度過了困難的局面，並將對我們業務的影響降至最低。

It is also important to note that while the SEC and other governmental entities are conducting fact-finding inquiries into the attack on Moovit, the investigations do not mean that progress or anyone else has violated any laws or that these entities have a negative opinion of promise.

還需要注意的是，雖然 SEC 和其他政府實體正在對 Moovit 攻擊事件進行事實調查，但調查並不意味著進展或任何其他人違反了任何法律，也不意味著這些實體對承諾持負面看法。

Promise has been fully cooperating with the SEC and other governmental entities in their investigation.

Promise 一直全力配合 SEC 和其他政府實體的調查。

While we are currently unable to quantify any potential impact from future proceedings or government investigations.

雖然我們目前無法量化未來訴訟或政府調查的任何潛在影響。

We're grateful for the continued support of our customers, partners and employees, and we will continue to be transparent, proactive and cooperative.

我們感謝客戶、合作夥伴和員工的持續支持，我們將繼續保持透明、積極和合作。

So to finish up, it was another solid quarter for progress and our outlook remains positive.

總而言之，這是另一個取得堅實進展的季度，我們的前景仍然樂觀。

Accretive.

增值性。

M&a, combined with solid execution remains our top priority, and we look forward to the rest of the year with confidence.

併購加上紮實的執行仍然是我們的首要任務，我們滿懷信心地期待今年剩下的時間。

As always, I want to thank my fellow progresses for their hard work and our investors for their continued support.

一如既往，我要感謝我的同事們的辛勤工作，感謝我們的投資者的持續支持。

With that, I'll turn it over to Anthony.

有了這個，我會把它交給安東尼。

Thanks, Yogesh, and good afternoon, everyone, and thanks for joining our call.

謝謝 Yogesh，大家下午好，謝謝您加入我們的電話會議。

As Yogesh mentioned, we're very pleased with our Q1 results, which again exceeded the high end of our guidance range on revenue and earnings per share.

正如 Yogesh 所提到的，我們對第一季的業績非常滿意，該業績再次超出了我們收入和每股收益指導範圍的上限。

We're also very pleased to have recently completed a refinancing of our credit facilities and believe the amended facilities provide progress with significantly more liquidity and flexibility to continue the execution of our total growth strategy.

我們也很高興最近完成了信貸安排的再融資，並相信修改後的安排將帶來顯著更大的流動性和靈活性，以繼續執行我們的整體成長策略。

More on that in a few minutes.

幾分鐘後將詳細介紹。

Turning to our results and starting with top line, we closed the first quarter with ARR of $571 million, which represents modest growth on a year-over-year basis.

轉向我們的業績，從營收開始，我們第一季的 ARR 為 5.71 億美元，比去年同期略有成長。

This growth in ARR was driven by steady demand for several products across our portfolio, especially OpenEdge.

ARR 的成長是由對我們產品組合中多種產品（尤其是 OpenEdge）的穩定需求所推動的。

Another factor that continues to contribute to the resiliency of our top line is strong net retention with Q1 net retention rates coming in at 99%.

持續提高我們營收彈性的另一個因素是強勁的淨留存率，第一季的淨留存率為 99%。

In addition to our solid ARR results, revenue for the quarter of $185 million was above the high end of our guidance range with the overperformance driven by strong demand for multiple products in our portfolio.

除了我們穩健的 ARR 業績外，本季的營收為 1.85 億美元，高於我們指導範圍的高端，這是由於對我們產品組合中多種產品的強勁需求推動的超額業績。

On a year-over-year basis, revenue growth of 12% was driven by a full quarter contribution from Mark logic compared to only one month contribution in Q1 of '23.

與去年同期相比，12% 的營收成長是由 Marklogic 整個季度的貢獻所推動的，而 23 年第一季僅一個月的貢獻。

And this growth was partially offset by the timing of renewals on multiyear subscription contracts.

這一增長被多年訂閱合約的續約時間部分抵消。

As I've noted on previous earnings calls, the timing of subscription contract renewals, especially multi-year subscriptions, can have a significant impact on our revenue in any given quarter and skew results higher or lower using Q1 of '24.

正如我在之前的財報電話會議上指出的那樣，訂閱合約續約的時間，尤其是多年訂閱，可能會對我們在任何給定季度的收入產生重大影響，並且使用24 年第一季度的數據使結果偏高或偏低。

To illustrate this point if we were to exclude both Mark LOGICS contribution and the impact from the timing of renewals on multiyear subscription contracts, our remaining business would have shown low single digit revenue growth generally consistent with our growth in ARR and growth trends in recent quarters.

為了說明這一點，如果我們排除Mark LOGICS 的貢獻以及多年訂閱合約續約時間的影響，我們剩餘的業務將顯示較低的個位數收入增長，與我們的ARR 增長和最近幾個季度的增長趨勢基本一致。

We will, therefore continue to focus on ARR as a barometer of our top line performance.

因此，我們將繼續關注 ARR，將其作為我們營收業績的晴雨表。

And as a reminder, our calculation of ARR is presented on a pro forma basis to include the results of acquired businesses in all periods and in constant currency, with all periods presented at our current year budgeted exchange rate.

提醒一下，我們對 ARR 的計算是在預計的基礎上提出的，包括所有時期和以固定貨幣計算的收購業務的結果，所有時期均按我們當年的預算匯率提出。

I should mention that consistent with past practice, we've updated IRR using our 2024 budgeted rates.

我應該要提到的是，與過去的做法一致，我們使用 2024 年預算利率更新了 IRR。

And as a result, the IRR that was reported in prior periods has changed slightly changes in material and doesn't alter the trend in ARR growth or the net retention rates that we've been reporting over the past several quarters.

因此，前期報告的 IRR 發生了輕微的重大變化，並且不會改變我們在過去幾季報告的 ARR 成長趨勢或淨保留率。

And to illustrate this point, we've included some details in the supplemental presentation filed with our press release.

為了說明這一點，我們在與新聞稿一起提交的補充簡報中包含了一些詳細資訊。

Turning now to expenses.

現在轉向費用。

Our total costs and operating expenses for the quarter were $108 million, up 16% compared to the prior year and slightly lower than our expectations.

本季我們的總成本和營運費用為 1.08 億美元，比上年增長 16%，略低於我們的預期。

Year-over-year increase was driven by the impact of a full quarter of mark logic when compared to last year and to a lesser extent, expected increase in compensation costs across the rest of our business.

同比增長是由與去年相比整個季度的標記邏輯的影響以及我們其他業務的補償成本的預期增長所推動的。

Operating income was $77 million, up $5 million compared to the prior year quarter, our operating margin was 42%, which was well ahead of our expectations and driven by our top line overperformance, combined with strong cost management on the bottom line, earnings per share of $1.25 for the quarter is $0.09 above the high end of our guidance range.

營業收入為7,700 萬美元，比去年同期增加500 萬美元，營業利潤率為42%，遠遠超出了我們的預期，這得益於我們的營收超額業績，加上強大的營收成本管理、每股收益本季 1.25 美元的份額比我們指導範圍的上限高出 0.09 美元。

This overperformance relative to our expectations was, again driven by solid cost management across the business, coupled with the previously mentioned overperformance on the top line.

相對於我們的預期，這種超預期表現再次是由整個業務的可靠成本管理以及前面提到的營收超預期所推動的。

Moving on now to a few balance sheet and cash flow metrics.

現在轉向一些資產負債表和現金流指標。

I'll begin with our recently completed refinancing and remind everyone that our 2030 convertible notes and the amended credit agreement were both completed in March and therefore will not be reflected in our financial statements until Q2.

我將從我們最近完成的再融資開始，並提醒大家，我們的2030 年可轉換票據和修訂後的信貸協議均已於3 月份完成，因此要到第二季度才會反映在我們的財務報表中。

At the outset, our goal was to refinance our previously existing bank debt into a lower-cost fixed rate instrument and to amend our bank facilities so that they better support our business model and future growth.

一開始，我們的目標是將我們以前存在的銀行債務再融資為成本較低的固定利率工具，並修改我們的銀行設施，以便它們更好地支持我們的業務模式和未來成長。

With that, here are some of the details.

接下來是一些細節。

First, our convertible notes offering was complete on March first, 2024 and the total offering amount, including the overallotment option was $450 million for the notes carry an interest rate of 3.5%, a six year maturity and with privately negotiated capped call transactions, they have a 75% effective conversion premium of $92.98. The net proceeds from the offering and capped call transactions were used to repay all existing bank debt, which totaled $338 million at the end of the quarter and to repurchase $25 million of progress shares during the offer.

首先，我們的可轉換票據發行已於2024 年3 月1 日完成，發行總額（包括超額配股權）為4.5 億美元，票據利率為3.5%，期限為6 年，並採用私下協商的上限認購交易。此次發行和上限看漲選擇權交易的淨收益用於償還所有現有銀行債務（截至本季末總計 3.38 億美元），並在發行期間回購 2,500 萬美元的進步股票。

With our existing bank debt repaid using proceeds from the convert, we were able to negotiate a new amended credit facility that provides a $900 million revolving line of credit.

透過使用轉換收益償還現有的銀行債務，我們得以協商一項新的修訂信貸安排，提供 9 億美元的循環信貸額度。

This new line expands our liquidity and provides significant flexibility as we continue executing our total growth strategy, and there are currently no revolving credit loans outstanding under this new facility.

這條新貸款擴大了我們的流動性，並在我們繼續執行全面成長策略的過程中提供了顯著的靈活性，並且目前在這項新貸款下沒有未償還的循環信貸貸款。

In closing, I'll reiterate these financing transactions and the $25 million in related share repurchases were completed after the end of Q1, and they'll be reflected in our balance sheet starting in the second quarter.

最後，我將重申這些融資交易和 2,500 萬美元的相關股票回購是在第一季末後完成的，它們將從第二季開始反映在我們的資產負債表中。

Moving on, we ended up the quarter with cash, cash equivalents and short-term investments of $133 million and total debt of $698 million for a net debt position of $565 million.

接下來，本季結束時，我們的現金、現金等價物和短期投資為 1.33 億美元，總債務為 6.98 億美元，淨債務部位為 5.65 億美元。

This represents net leverage of two times using our trailing 12 month adjusted EBITDA.

這相當於我們過去 12 個月調整後 EBITDA 的淨槓桿率的兩倍。

Our DSO for the quarter was 50 days, an improvement of 12 days when compared to last quarter.

我們本季的 DSO 為 50 天，比上季增加了 12 天。

And adjusted free cash flow was $72 million for the quarter, an increase of $25 million compared to the prior year quarter.

該季度調整後自由現金流為 7,200 萬美元，比去年同期增加 2,500 萬美元。

As we discussed on our last call, the increase in free cash flow was aided by the timing of billings in Q4 and was also driven by stronger than expected Q1 collections and operating performance during the first quarter.

正如我們在上次電話會議中討論的那樣，自由現金流的增加得益於第四季度的帳單時間，以及強於預期的第一季收款和第一季營運表現的推動。

We also repurchased $23 million of PROGRESS stock at the end of the quarter.

我們也在本季結束時回購了 2,300 萬美元的 PROGRESS 股票。

We had $171 million remaining under our current share repurchase authorization.

目前的股票回購授權還剩 1.71 億美元。

Okay.

好的。

Now turning to our outlook for Q2 and the full year 2024, when considering our outlook for Q2.

現在轉向我們對第二季和 2024 年全年的展望，同時考慮我們對第二季的展望。

It's important to reiterate the point I made earlier about the revenue impact of multiyear contract renewals and how their timing can impact our revenue in any given quarter skewing results higher or lower.

重要的是要重申我之前提出的觀點，即多年合約續約對收入的影響，以及續約的時機如何影響我們在任何給定季度的收入，從而導致業績偏高或偏低。

Despite this potential for volatility in quarterly revenue, we would expect ARR to be a good reflection of our fundamental top line performance.

儘管季度收入存在波動的可能性，但我們預計 ARR 將很好地反映我們的基本營收表現。

And as mentioned on our last call, we expect ARR to grow slightly in 2024.

正如我們在上次電話會議中提到的，我們預計 2024 年 ARR 將略有成長。

With that, for the second quarter of 2024, we expect revenue between $166 million and $170 million and earnings per share of between $0.93 and $0.97 for the full year.

因此，我們預計 2024 年第二季全年營收將在 1.66 億美元至 1.7 億美元之間，每股盈餘將在 0.93 美元至 0.97 美元之間。

We continue to see strength in the demand environment for our solutions, and we're also aware that the macro environment may become more challenging as such.

我們繼續看到我們的解決方案的需求環境強勁，我們也意識到宏觀環境可能變得更具挑戰性。

For the full year 2024, we expect revenue between $722 million and $732 million, consistent with our prior guidance, an operating margin of between 39% and 40%, generally consistent with our prior guidance.

對於 2024 年全年，我們預計收入在 7.22 億美元至 7.32 億美元之間，與我們先前的指導一致，營業利潤率在 39% 至 40% 之間，與我們先前的指導基本一致。

Adjusted free cash flow between $205 million and $215 million, an increase of $3 million compared to our prior guidance and earnings per share of between $4.65 and $4.75, an increase of $0.07 compared to our prior guidance.

調整後的自由現金流在 2.05 億美元至 2.15 億美元之間，比我們之前的指導增加了 300 萬美元，每股收益在 4.65 美元到 4.75 美元之間，比我們之前的指導增加了 0.07 美元。

Our annual EPS estimate contemplates a tax rate of approximately 20%, approximately 44.6 million shares outstanding and the impact of 30 million in additional share repurchases, bringing our total share repurchase expectation to [78 million] for 2024.

我們的年度每股盈餘預測考慮了約 20% 的稅率、約 4,460 萬股流通股以及 3,000 萬股額外股票回購的影響，使我們的 2024 年股票回購總額預期達到 [7,800 萬股]。

In closing we're excited to deliver strong financial results across the board in the first quarter, a continuation of the trend we saw for all of 2023.

最後，我們很高興能夠在第一季全面實現強勁的財務業績，這是我們在 2023 年全年看到的趨勢的延續。

We're thrilled with the refinancing of our bank facilities and believe we're very well positioned to deliver strong results for the remainder of 2024 and beyond.

我們對銀行融資的再融資感到非常興奮，並相信我們完全有能力在 2024 年剩餘時間及以後取得強勁業績。

With that, I'd like to open the call for Q&A Q.

至此，我想開始問答環節。

As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be to withdraw your question, please press star one one due to time restraints, we ask that you please limit yourself to one question and one follow-up question.

提醒一下，要提問，請在電話上按星一一，等待您的名字撤回您的問題，由於時間限制，請按星一一，我們要求您僅限於一個問題，並且一個後續問題。

Please stand by while we compile the Q&A.

我們正在整理問答，請稍候。

Yes, our first question will come from the line of Ray McDonough with Guggenheim Securities.

是的，我們的第一個問題來自古根漢證券公司的雷麥克唐納。

Your line is open.

您的線路已開通。

Great.

偉大的。

Thanks.

謝謝。

Yogesh, may be for you.

Yogesh，可能適合你。

Maria DB is obviously based on open source technology and throughout history.

Maria DB 顯然是基於開源技術並且貫穿整個歷史。

There's very few examples of companies that were successful in scaling businesses supporting open source technologies wise, Maria d be different and progress is control and how confident are you that you can ramp margins.

很少有公司能夠成功擴展支援開源技術的業務，瑪麗亞會有所不同，進步就是控制，以及您對提高利潤率有多大信心。

When I just look at the filings that they have there, it seems like they're burning a good amount of cash right now.

當我看看他們那裡的文件時，他們現在似乎正在燒掉大量現金。

So just want to understand kind of what you're seeing in that business in terms of your ability to drive success and drive free cash flow generation?

那麼，只想了解您在該業務中所看到的推動成功和自由現金流產生的能力？

Perhaps the sure Ray than Thank you know.

也許肯定雷比謝謝你知道。

So do things, right.

所以做事吧。

First of all, we do have shaft, which is also an open source product.

首先，我們確實有shaft，它也是一個開源產品。

And we have demonstrated that we can do well with a business like Chef, both from the perspective of customer retention, ARR growth on margin expansion and so on.

我們已經證明，無論是從客戶保留、ARR 成長或利潤率擴張等角度來看，我們都可以在 Chef 這樣的業務上做得很好。

So we have an example of an open-source company that we have done this before with.

我們有一個開源公司的例子，我們之前已經與它合作過。

And with respect to Maria DV.

至於瑪麗亞·DV。

A couple of points there.

有幾點。

Last year's financials actually do not reflect some of the restructuring that they announced at the very end of last year.

去年的財務數據實際上並沒有反映他們去年底宣布的一些重組。

So they have done a significant restructuring.

因此他們進行了重大重組。

I think they publicly announced that they were eliminating at least 28% of their employee headcount.

我認為他們公開宣布要裁員至少 28%。

They have also talked about the fact that they have exited two very, very small, but highly unprofitable businesses.

他們也談到了這樣一個事實：他們已經退出了兩個非常非常小但非常無利可圖的業務。

And they also have, to be honest, public company costs that way, if you can imagine a 50 something million revenue company dealing with a keynote for public company expenses structure, which there is further opportunity for us.

老實說，他們也有這樣的上市公司成本，如果你能想像一家年收入 50 多萬的公司處理上市公司費用結構的主題演講，這對我們來說還有進一步的機會。

We believe that we have tremendous opportunity here to create truly significant meaningful value for our shareholders.

我們相信，我們擁有巨大的機會為股東創造真正重要且有意義的價值。

That makes sense.

這就說得通了。

And then maybe just a follow-up for Anthony.

然後也許只是安東尼的後續行動。

In your comments around guidance.

在您關於指導的評論中。

You mentioned you're aware the macro might become more challenging as we move forward.

您提到您知道隨著我們的前進，宏觀經濟可能會變得更具挑戰性。

I am just wondering, one, is there anything behind those comments in terms of what you're seeing out of your customer base and any sort of product category and to maybe just kind of help us understand what level of prudence you're putting in the guidance here and what could go wrong and what could go right to do or what could be better in the macro and what that would mean in terms of achieving your high end of your guidance?

我只是想知道，第一，這些評論背後是否有任何關於您從客戶群和任何類型的產品類別中看到的內容，也許只是幫助我們了解您所採取的謹慎程度這裡的指導，什麼可能會出錯，什麼可以做正確的事情，或者在宏觀上什麼可以做得更好，以及這對於實現指導的高端意味著什麼？

Yes, sure.

是的，當然。

I think on we continue to see inflation still running through from a cost perspective, right.

我認為，從成本角度來看，我們繼續看到通膨仍在持續，對吧。

And so I think that was the probably the point that we were making is that that's still a bit of a challenge for us and for a lot of companies out there.

因此，我認為這可能是我們要表達的觀點，即這對我們和許多公司來說仍然是一個挑戰。

I think we're pretty good at managing costs and being forward looking in terms of and a higher cost profile is going to develop.

我認為我們非常擅長管理成本並且具有前瞻性，並且將會發展出更高的成本狀況。

And I think it's just a nod to the fact that we're going to have to continue with that because we still see some of the same inflationary pressures in the market and in our business and we'll continue to stay disciplined in managing that managing our margins.

我認為這只是對我們必須繼續這樣做的事實的認可，因為我們仍然看到市場和我們的業務中存在一些相同的通膨壓力，我們將繼續在管理方面保持紀律。

And to sort of just add a bit, I think from a demand side, we are not seeing Kevin to be honest on anything differently, we continue to see steady solid demand across the portfolio.

補充一點，我認為從需求方面來看，我們沒有看到凱文在任何不同的事情上誠實，我們繼續看到整個投資組合穩定可靠的需求。

Great.

偉大的。

Thanks for taking the questions.

感謝您提出問題。

Thank you.

謝謝。

One moment, Farhan question and that will come from the line of Fatima Boolani with Citi.

一會兒，法爾汗（Farhan）提出了一個問題，這個問題將來自花旗銀行的法蒂瑪·布拉尼（Fatima Boolani）。

Your line is open.

您的線路已開通。

Hi, good afternoon.

嗨，下午好。

Thank you for taking my questions.

感謝您回答我的問題。

Yogesh had one for you to start in the follow-up for Anthony.

尤格甚（Yogesh）為您在安東尼的後續行動中提供了一個開始。

Over the course āof last year.

去年的過程中。

Going to one of the themes that come I mean, you had discussed with this opportunity for Mark logic to enjoy some cross-sell synergies with your a very sticky, very large OpenEdge install base.

談到即將到來的主題之一，我的意思是，您已經討論了 Marklogic 與您的非常粘性的、非常大的 OpenEdge 安裝基礎享受一些交叉銷售協同效應的機會。

I'm curious with now a full year under your belt and having been very conservatism or having been very conservative conservative rather on your ability and expectations to kind of cross-sell or cross-pollinate into those bases.

我很好奇你在這一年裡一直非常保守，或者一直非常保守，而不是你在這些基礎上進行交叉銷售或異花授粉的能力和期望。

I'm curious if you're going to take any deliberate or material steps to actually derive that behavior this year.

我很好奇你今年是否會採取任何有意或實質的步驟來真正實現這種行為。

And then just a follow-up, for Anthony.

然後是安東尼的後續行動。

Thanks.

謝謝。

So you know, I Fatima our own our efforts around cross-sell are modest because, as you know, our efforts around go-to-market are in general, modest right.

所以你知道，我法蒂瑪我們在交叉銷售方面的努力是適度的，因為如你所知，我們在進入市場方面的努力總體上是適度的。

That means one of the things that in the trade-off that we make is the trade-off between what happens on the spend on go-to-market efforts and what we deliver in terms of our margins.

這意味著我們所做的權衡之一就是在進入市場的支出與我們交付的利潤之間進行權衡。

So I think fundamentally, we continue to do what I would call targeted efforts around cross-sell, but we have always modeled every single one of our acquisitions with to be honest, right?

因此，我認為從根本上講，我們將繼續圍繞交叉銷售開展我所說的有針對性的工作，但說實話，我們始終以我們的每項收購為模型，對嗎？

And we've said this publicly no cross sell.

我們已經公開表示這不是交叉銷售。

It's modeled in our modeling.

它在我們的建模中建模。

We think of these businesses as having to stand alone to deliver value for our shareholders and if we can actually do some cross-sell, then that's upside.

我們認為這些業務必須獨立為我們的股東創造價值，如果我們實際上可以進行一些交叉銷售，那麼這是有好處的。

So from our perspective, Fatima, I don't see to be honest, any real meaningful cross-sell that sort of move the top line needle in a meaningful way.

因此，從我們的角度來看，法蒂瑪，老實說，我不認為任何真正有意義的交叉銷售能夠以有意義的方式推動營收。

We will continue to do some cross-sell.

我們將繼續進行一些交叉銷售。

We are doing cross-selling, not just actually cross-selling month logic into OpenEdge.

我們正在進行交叉銷售，而不僅僅是將月份邏輯實際交叉銷售到 OpenEdge 中。

It's even cross-selling other products into the March logic customer base.

它甚至向 March 邏輯客戶群交叉銷售其他產品。

So whether it is our chefs product for managing those environments and the deployment and dev ops for those environments, whether it is something like a Sitefinity and other digital experience products that end up front-ending a lot logic application.

因此，無論是我們用於管理這些環境以及這些環境的部署和開發作業的廚師產品，還是像 Sitefinity 和其他數位體驗產品那樣最終前端處理大量邏輯應用程式。

So we see opportunities there as well as we see opportunities with Cinemark logic going into open its customer base but really again, as you know, I keep saying this and I'll I guess I repeat myself over and over that we really don't see a meaningful impact from that on our business.

因此，我們看到了那裡的機會，也看到了喜滿客邏輯進入開放其客戶群的機會，但實際上，正如你所知，我一直這麼說，我想我一遍又一遍地重複自己，我們真的沒有看到這對我們的業務產生有意義的影響。

I appreciate that, Yogesh And Anthony, to you on the net retention rate at 99% now, just to nitpick, that is a shade below your internal threshold at 100%.

我很欣賞 Yogesh 和 Anthony，對你們來說，現在的淨保留率是 99%，只是為了挑剔，這比你們 100% 的內部閾值低了一點。

So any nuances you can offer to us on why that stepped down.

因此，您可以向我們提供有關為何下台的任何細微差別。

Now you've been pretty consistently at the 100, 100-ish level, 100-ish percent So just wanted to get maybe some additional context around that slight compression this quarter.

現在你一直保持在 100、100 左右的水平、100 左右的百分比，所以只是想了解一些有關本季度輕微壓縮的額外背景信息。

Thank you.

謝謝。

Yes, sure.

是的，當然。

Fatima.

法蒂瑪。

I would say that compression because we measure our net retention rates on a trailing 12 month basis, you sort of have to look back over that trailing 12 month period and figure out the ins and outs.

我之所以說壓縮，是因為我們以過去 12 個月為基礎來衡量淨保留率，因此您必須回顧過去 12 個月並找出來龍去脈。

And we mentioned in Q4 that we had a couple of contracts turn out.

我們在第四季提到，我們簽訂了幾份合約。

And one of them was due to M&A, frankly, where we ended up losing a customer and that impacted us in Q4 brought the net retention rate down a little bit and that contract is still in the denominator of our calculation.

坦白說，其中之一是由於併購，我們最終失去了一位客戶，這對我們在第四季度的影響導致淨保留率略有下降，而該合約仍然是我們計算的分母。

It will be there for a couple more quarters.

它將繼續存在幾個季度。

So we're not surprised to see things at 100% or 99% for a little bit and certainly doesn't change our long-term outlook from a net retention and a target perspective of being 100 or better.

因此，看到 100% 或 99% 的情況，我們並不感到驚訝，而且從淨保留率和 100 或更高的目標角度來看，當然不會改變我們的長期前景。

Thank you so much.

太感謝了。

Thank you.

謝謝。

One moment for our next question will come from the line of Brent Thill with Jefferies.

我們的下一個問題將由布倫特希爾 (Brent Thill) 和傑弗里斯 (Jefferies) 提出。

Your line is open.

您的線路已開通。

Hi, guys, thanks for taking the questions.

嗨，夥計們，感謝您提出問題。

And Antonio Venturim for Brent Thill.

安東尼奧·文圖里姆（Antonio Venturim）代表布倫特·希爾（Brent Thill）。

It looks like you guys had an overall strong quarter of top and bottom line.

看來你們季度的營收和利潤整體表現強勁。

Can you just give us your puts and takes on the delta between ARR growth sort of being flat to slightly up versus revenue growth growing in the double digits.

您能告訴我們您的看跌期權和承付金額嗎？

If you can just give us puts and takes on that out that would be great?

如果您能為我們提供看跌期權和認購期權，那就太好了？

Yes, sure.

是的，當然。

Sure, Antonio, I can I can take that.

當然，安東尼奧，我可以，我可以接受。

So for the quarter, Mark logic, if you sort of take a look at the year over year, we only got a month contribution from Mark logic last year, and we get a full quarter this year.

因此，對於本季度，馬克邏輯，如果你逐年查看的話，我們去年只得到了馬克邏輯一個月的貢獻，而今年我們得到了整個季度的貢獻。

So that drove in out of the vast majority of our growth from.

因此，這推動了我們絕大多數的成長。

But there was an offset to that, right.

但這有一個抵消，對吧。

We did have some multiyear subscription contracts that executed last year.

我們確實有一些去年執行的多年訂閱合約。

They renewed last year.

他們去年續約了。

We didn't have the same opportunity this year in the quarter.

今年本季我們沒有同樣的機會。

So when you're looking at revenue on a year-over-year basis, I think the right way to reconcile it is you've got some growth from Mark logic day.

因此，當您查看同比收入時，我認為調節收入的正確方法是您從馬克邏輯日中獲得了一些增長。

It gets offset a little bit by the timing of contract renewals, some of those subscription deals.

它會被合約續約的時間（其中一些訂閱交易）所抵消。

And so you can still sort of reconcile down to low single digit growth on the revenue.

因此，您仍然可以將收入的成長降至較低的個位數成長。

But ARR just ends up being a, I think, a more accurate on more accurate reflection this quarter of what's going on in the in the business fundamentally.

但我認為，ARR 最終更準確地反映了本季業務基本面的情況。

And you know, what's interesting is that when you look at ARR year-over-year last year, the full cleanup pro forma ARR. of my largest was included in last year's results.

您知道，有趣的是，當您查看去年的 ARR 時，您會看到全面清理的預估 ARR。我最大的一項已包含在去年的結果中。

So when you think about it that way, right.

所以當你這樣想的時候，對吧。

When we compare ARR, we include acquisitions, privately are are as though it was part of our business.

當我們比較 ARR 時，我們包括收購，私下就好像它是我們業務的一部分。

So the growth in ARR is really sort of the real growth of the business, the real trajectory of the business where, as you know, until you have a full 12 month cycle, the actual reported revenue looks significantly higher because my logic is adding to this quarter for the full year on quarter, whereas last year, as Anthony said, was just about a month.

因此，ARR 的成長實際上是業務的實際成長，業務的真實軌跡，如您所知，在您擁有完整的 12 個月週期之前，實際報告的收入看起來明顯更高，因為我的邏輯是添加本季為全年環比，而去年，正如安東尼所說，只有一個月左右。

Awesome.

驚人的。

Thanks for taking my question.

感謝您提出我的問題。

Congrats on the quarter.

恭喜本季。

Thanks.

謝謝。

Thank you.

謝謝。

As a reminder, if you would like to ask a question, please press star one.

提醒一下，如果您想提問，請按星號一。

One moment for our next question will come from the line of Pinjalim Bora with JPMorgan. your line open.

我們的下一個問題將來自 Pinjalim Bora 與摩根大通的對話。您的線路已開通。

Great.

偉大的。

Thanks for taking the questions.

感謝您提出問題。

I want to ask you on HeartLogic.

我想在 HeartLogic 上問你。

I heard throughout the world drag along with Mark logic.

我聽說全世界都在跟隨馬克邏輯。

It's harder to document database, but can you remind us what has mark logic?

記錄資料庫比較困難，但是您能提醒我們什麼是標記邏輯嗎？

You have a locked up so far from a rig standpoint and have they created a vector DB. store?

從裝備的角度來看，到目前為止，您已經鎖定了，並且他們創建了向量資料庫。店鋪？

Is there a search layer in there maybe help us understand that absolute targets.

那裡是否有一個搜尋層也許可以幫助我們理解絕對目標。

Are you seeing customers look at that more, you know, seriously as for the RAG use cases?

您是否看到客戶更認真地看待 RAG 用例？

Great question Pinjalim.

很好的問題 Pinjalim。

So what we have done.

那我們做了什麼。

So if you think about Mark logic, of course, this is really unstructured data and but similar for on top of that, right is the semantic analysis of that information.

因此，如果你考慮馬克邏輯，當然，這確實是非結構化數據，但除此之外類似的是，正確的是該資訊的語義分析。

And so the question becomes, you know, when you get information out of an NLM, how do you contextualize it?

所以問題就變成了，當你從 NLM 中獲取資訊時，你如何將其置於上下文中？

So yes, we have actually created capabilities and we have them.

所以，是的，我們實際上已經創造了能力並且擁有它們。

I don't want say customers in production, but we have customers who are looking to figure out how to use it to actually leverage their content and their data using both HeartLogic and some of four on top of their inflammation and then augmenting and in which they will that they do through elements of any generative content until you get through the L&M, we'll do it.

我不想說生產中的客戶，但我們有一些客戶希望弄清楚如何使用它來實際利用他們的內容和數據，使用 HeartLogic 和其中的一些在他們的炎症之上，然後增強，其中他們會通過任何生成內容的元素來完成，直到您完成L&M，我們會這樣做。

Then basically the argument though the generation with information from my logic flash number four and therefore provide more contextual answers.

然後基本上透過我的邏輯閃現第四個資訊的生成來進行爭論，因此提供更多上下文答案。

I wish I had where we get to the point where we have production customers, we can talk about it.

我希望我們能夠達到擁有生產客戶的地步，我們可以談論它。

Interesting.

有趣的。

Yes, thank you.

是的，謝謝。

Thank you for that, Yogesh.

謝謝你，尤格甚。

One for Anthony.

一件是給安東尼的。

I hear you on the comment that you made about kind of the customer churn.

我聽到您對客戶流失的評論。

You had a couple of customers churn last quarter, and that's kind of impacting in our.

上個季度有幾個客戶流失，對我們產生了一定的影響。

But when I see the sequential decline in ARR seems like it's a little bit more and then maybe a year ago or even maybe last quarter.

但當我看到 ARR 的連續下降時，似乎下降幅度更大，可能是一年前，甚至可能是上個季度。

Just wanted to make sure that there is no incremental gross dollar churn that you're seeing at this point?

只是想確保您目前看到的總美元流失量沒有增加？

Thank you.

謝謝。

Yes, sure, Pinjalim.

是的，當然，平賈利姆。

Yes, I would say the trends for us have been generally consistent.

是的，我想說我們的趨勢總體上是一致的。

We do see sort of a seasonal move in ARR. because we're a software company where contracts can lapse on.

我們確實看到了 ARR 的季節性變化。因為我們是軟體公司，合約可能會失效。

We've generally seen a step down from Q4 to Q1.

我們通常會看到從第四季到第一季的下降。

It's not a not uncommon for us in terms of ARR.

就 ARR 而言，這對我們來說並不罕見。

And so we saw that again this quarter, I think it may be slightly higher than what it was last year.

所以我們在這個季度再次看到這一點，我認為它可能會比去年略高。

But from our perspective, in terms of what comes back into the tail in Q2 and just trends in the business.

但從我們的角度來看，就第二季尾部的情況以及業務趨勢而言。

I don't see it as anything meaningful in terms of incremental churn in the quarter.

就本季的增量流失而言，我認為這沒有任何意義。

Got it.

知道了。

Thank you.

謝謝。

Thank you.

謝謝。

I'm showing no further questions in the queue at this time.

目前我在隊列中沒有顯示任何其他問題。

I would now like to turn the call.

我現在想轉接電話。

I'm over to Mr. Yogesh Gupta for any closing remarks.

現在請 Yogesh Gupta 先生致閉幕詞。

Well, thank you, everyone, for joining our call, and we look forward to speaking with you again in a quarter.

好的，謝謝大家加入我們的電話會議，我們期待在一個季度內再次與您交談。

Thank you.

謝謝。

Bye-bye.

再見。

Thank you all for participating.

感謝大家的參與。

This concludes today's program.

今天的節目到此結束。

You may now disconnect.

您現在可以斷開連線。