PowerSchool Holdings Inc (PWSC) 2022 Q4 法說會逐字稿

Ladies and gentlemen, greetings, and welcome to the PowerSchool Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Shane Harrison, SVP, Investor Relations. Please go ahead.

女士們，先生們，大家好，歡迎來到 PowerSchool 2022 年第四季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。現在我很高興向您介紹您的主持人，投資者關係高級副總裁 Shane Harrison。請繼續。

Thank you, operator. Welcome, everyone, to PowerSchool's Earnings Conference Call for the Fourth Quarter Ended December 31, 2022. I wanted to first let you know that we posted a slide deck to the Investor Relations section of our website that accompanies our remarks here.

謝謝你，運營商。歡迎大家參加 PowerSchool 截至 2022 年 12 月 31 日的第四季度收益電話會議。我想首先讓您知道，我們在我們網站的投資者關係部分發布了一張幻燈片，並附有我們的評論。

On the call today, we have PowerSchool's CEO, Hardeep Gulati; and CFO, Eric Shander. Before getting started, I'd like to emphasize that this call, including the Q&A portion, will include statements related to the expected future results of our company, which are therefore forward-looking statements. Our actual results may differ materially from our projections due to a number of risks and uncertainties. The risks and uncertainties that forward-looking statements are subject to are described in our earnings release and other SEC filings.

在今天的電話會議上，我們有 PowerSchool 的首席執行官 Hardeep Gulati；和首席財務官 Eric Shander。在開始之前，我想強調的是，這次電話會議，包括問答部分，將包括與我們公司預期未來業績相關的陳述，因此這些陳述是前瞻性陳述。由於許多風險和不確定性，我們的實際結果可能與我們的預測存在重大差異。我們的收益發布和其他 SEC 文件中描述了前瞻性陳述所涉及的風險和不確定性。

Today's remarks will also include references to non-GAAP financial measures. Additional information, including definitions and reconciliations between non-GAAP financial information and the GAAP financial information is provided in the corresponding press release and results presentation, which are both posted on PowerSchool's investor relations website at investors.powerschool.com, and a replay of this call will also be posted to this same website.

今天的評論還將包括對非 GAAP 財務指標的引用。其他信息，包括非 GAAP 財務信息和 GAAP 財務信息之間的定義和對賬，在相應的新聞稿和結果演示中提供，它們均發佈在 PowerSchool 的投資者關係網站 investors.powerschool.com 上，並對此進行了重播電話也將發佈到同一網站。

Let me now pass the microphone over to Hardeep.

現在讓我將麥克風交給 Hardeep。

Thank you, Shane, and thank you, everyone, for joining us today. We are excited to discuss our performance in Q4 and full year 2022. We had a strong close to a very successful year. We have committed to you that we will continue to deliver annual double-digit top line growth, coupled with margin expansion.

謝謝你，Shane，也謝謝大家今天加入我們。我們很高興討論我們在第四季度和 2022 年全年的表現。我們在非常成功的一年中表現出色。我們向您承諾，我們將繼續實現每年兩位數的收入增長，同時利潤率也會擴大。

As you see from this quarter results, we delivered this commitment in 2022 by significantly expanding our EBITDA margin and growing revenue double digits for the year. You will also see from our guidance, which Eric will discuss in more detail later, we are looking forward to another year of double-digit revenue growth and further margin expansion.

正如您從本季度的結果中看到的那樣，我們在 2022 年實現了這一承諾，顯著擴大了我們的 EBITDA 利潤率，並使當年的收入增長了兩位數。您還將從我們的指導中看到，Eric 稍後將更詳細地討論該指導，我們期待著又一年的兩位數收入增長和進一步的利潤率擴張。

As you see on Slide 4, Fourth quarter revenue reached $161 million, growing 10% over the prior year, and our adjusted EBITDA grew 59% year-over-year to $53 million, representing a 32.8% margin. ARR grew 11% over the prior year to $596 million as we continued our trend of strong net revenue retention.

正如您在幻燈片 4 中看到的那樣，第四季度收入達到 1.61 億美元，比上年增長 10%，我們調整後的 EBITDA 同比增長 59% 至 5300 萬美元，利潤率為 32.8%。由於我們繼續保持強勁的淨收入保留趨勢，ARR 比上一年增長 11% 至 5.96 億美元。

Now looking at the specific highlights in the quarter and for the full year 2022. On Slide 5, our strong business momentum continued across all product lines with breakout performance from our Unified Insights data analytics product suite. In this quarter, we won our largest statewide Unified Insights contract with value ramping up to $5 million per year ARR with Alabama State Department of Education to enable their learning acceleration and student support program. This adds to the state's usage of 6 of our other platform products, which work together to benefit all students in the state.

現在看看本季度和 2022 年全年的具體亮點。在幻燈片 5 中，我們所有產品線的強勁業務勢頭都在持續，我們的 Unified Insights 數據分析產品套件取得了突破性的表現。在本季度，我們與阿拉巴馬州教育部贏得了我們最大的全州統一洞察合同，每年 ARR 價值高達 500 萬美元，以支持他們的學習加速和學生支持計劃。這增加了該州對我們其他 6 個平台產品的使用，這些產品共同使該州的所有學生受益。

During the quarter, the Unified Insights solution suite also had its biggest Snowflake Connected Intelligence win for whole child analytics at the second largest school district in the U.S. Los Angeles Unified School District, integrating to numerous systems. Another important cross-sell in the quarter was to Philadelphia School District. To date, a customer of Naviance College, Career, Life Readiness tool, they are now expanding their use of our platform by implementing 2 of our talent solutions that will help them more efficiently evaluate, train and develop their teachers.

在本季度，Unified Insights 解決方案套件還在美國第二大學區洛杉磯聯合學區的整個兒童分析方面贏得了最大的 Snowflake Connected Intelligence 勝利，並集成到眾多系統中。本季度另一個重要的交叉銷售是費城學區。迄今為止，作為 Naviance College、Career、Life Readiness 工具的客戶，他們現在正在通過實施我們的 2 個人才解決方案來擴大對我們平台的使用，這將幫助他們更有效地評估、培訓和發展他們的教師。

One key new customer win was sale of our Unified Home Communication Solution to one of the top 50 largest school districts in U.S., Jefferson County Public School in Louisville, they chose our Unified Home Communication Solution to improve their capabilities in family engagement and student attendance. These wins across the platform helped drive a record Q4 cross-sell performance, propelling our NRR rate to a record 109.1% in the quarter.

贏得一個重要的新客戶是將我們的統一家庭通信解決方案出售給美國最大的 50 個學區之一路易斯維爾的杰斐遜縣公立學校，他們選擇了我們的統一家庭通信解決方案來提高他們在家庭參與和學生出勤方面的能力。這些跨平台的勝利幫助推動了創紀錄的第四季度交叉銷售業績，推動我們的 NRR 在本季度達到創紀錄的 109.1%。

While we also added over 100 new logos in the same period. I am proud of the tremendous progress we have made as a company in 2022. For the full year, we eclipsed $600 million in revenue, finished with annual revenue growth of 13%, improved our adjusted EBITDA margin by 2.2 percentage points to 31.1%, and generated $104 million of free cash flow.

同時我們還增加了 100 多個新徽標。我為我們在 2022 年取得的巨大進步感到自豪。全年，我們的收入超過 6 億美元，年收入增長 13%，調整後的 EBITDA 利潤率提高 2.2 個百分點至 31.1%，並產生了 1.04 億美元的自由現金流。

Our go-to-market teams were very successful during the year, adding almost 600 new customers to our base. And during the year, the number of students benefiting from our solution now exceeds $50 million.

我們的上市團隊在這一年非常成功，為我們的基地增加了近 600 名新客戶。在這一年中，受益於我們解決方案的學生人數現已超過 5000 萬美元。

As we look at these 2022 results and our go-forward 2023 plans, I would like to give you a progress update on the 4 key foundations, which we have reinforced with you in the past and are the pillars of our success, strategy and go-forward commitment.

在我們審視這些 2022 年的結果和我們 2023 年的前進計劃時，我想向您介紹 4 個關鍵基礎的最新進展，我們過去與您一起加強了這些基礎，它們是我們成功、戰略和前進的支柱-前瞻性承諾。

First, the resiliency of our business and the K-12 market. Second, the differentiation of our comprehensive, diversified platform. Third, our financial durability that drives predictable double-digit top line growth coupled with consistent margin expansion. Fourth, the opportunity and the further upside through international expansion, innovation and M&A.

首先，我們業務和 K-12 市場的彈性。第二，我們全面、多元化平台的差異化。第三，我們的財務穩定性推動了可預測的兩位數收入增長以及持續的利潤增長。第四，國際擴張、創新和併購帶來的機遇和進一步的好處。

The first foundation is our business resiliency, a key factor in the predictability of our success. As shown on Slide 6, this resiliency is built by several factors: strong customer demand of sticky mission-critical products with robust budgets. U.S. education funding continues to be robust.

第一個基礎是我們的業務彈性，這是我們成功的可預測性的關鍵因素。如幻燈片 6 所示，這種彈性是由幾個因素構成的：客戶對具有穩健預算的粘性關鍵任務產品的強烈需求。美國的教育資金繼續保持強勁。

As we have seen over decades, its ability to remain relatively insulated in the face of the macroeconomic headwinds. In 2022, the U.S. Department of Education received its greatest increase in discretionary spending since the start of the pandemic. Additionally, $100 billion of federal relief, ESSER funds, still remains to be spent. The robust budgets are supporting the continued increase in strong demand of our products, which are fueled by the urgent and growing need of digital transformation across a variety of K-12 processes.

正如我們幾十年來所看到的那樣，面對宏觀經濟逆風，它有能力保持相對獨立。 2022 年，美國教育部的可自由支配支出出現了自大流行開始以來的最大增幅。此外，仍有 1000 億美元的聯邦救濟金 ESSER 資金有待支出。強勁的預算支持了我們產品的強勁需求的持續增長，這是由各種 K-12 流程的數字化轉型的迫切和不斷增長的需求推動的。

As shown in our continued strong deal velocity, and we are seeing ARR pipeline growth of nearly 25% year-over-year for the first half of the year. Reinforcing the resiliency of this -- our business, we saw increased demand across our product portfolio. Our largest and most mission-critical product line, student information system, center of all the technology infrastructure of any K-12 organization saw accelerated growth of ARR in the low teens for the full year 2022 from many new customers, large and small.

正如我們持續強勁的交易速度所示，我們看到今年上半年 ARR 管道同比增長近 25%。為了加強我們業務的彈性，我們看到了對我們產品組合的需求增加。我們最大和最關鍵的產品線、學生信息系統、任何 K-12 組織的所有技術基礎設施的中心都見證了 2022 年全年來自許多大小新客戶的低青少年 ARR 的加速增長。

And 2023 is off to a great start. We are very excited to share that we have been chosen for a (inaudible) SIS deployment for Puerto Rico. The Puerto Rico Department of Education is seeking to modernize and transform their K-12 education infrastructure by selecting our SIS as the core to power their scheduling, registration, attendance, compliance, reporting, grading and a lot more for their 250,000 students.

2023 年是一個良好的開端。我們非常高興地宣布，我們已被選中為波多黎各部署（聽不清）SIS。波多黎各教育部正在尋求實現其 K-12 教育基礎設施的現代化和轉型，選擇我們的 SIS 作為核心，為他們的 250,000 名學生提供日程安排、註冊、出勤、合規、報告、評分等更多支持。

We look forward to partnering with them on this critical project and their further technology initiatives to drive improved operational continuity and education outcomes for every student in the territory. Our differentiated platform is the second key foundation of our strategy and success.

我們期待與他們合作開展這個關鍵項目以及他們進一步的技術舉措，以推動改善該地區每個學生的運營連續性和教育成果。我們差異化的平台是我們戰略和成功的第二個關鍵基礎。

On Slide 7, as you know, no other player in the industry has the comprehensive and diversified product platform that cover all the key pillars of SIS and operations, classroom and talent and has market leadership in all these pillars. We are also continuing to see further adoption of the full breadth of our platform. The number of customers that are using products from each of our pillars is approaching thousand and the amount of our ARR that comes from customers with 7 or more products is now over $100 million.

在幻燈片 7 上，如您所知，業內沒有其他公司擁有涵蓋 SIS 和運營、課堂和人才的所有關鍵支柱的全面和多元化的產品平台，並且在所有這些支柱上都處於市場領先地位。我們還將繼續看到我們平台的全部範圍得到進一步採用。使用我們每個支柱產品的客戶數量接近一千，來自擁有 7 種或更多產品的客戶的 ARR 金額現已超過 1 億美元。

We continue to differentiate even further with increased leadership and expanded opportunity in data-centric solutions. Unified Insights and Connected Intelligence Data-as-a-Service grew well over 50% in 2022. And we are confident of a strong growth of these products in the coming years.

隨著以數據為中心的解決方案的領先地位和機會的擴大，我們將繼續進一步差異化。 Unified Insights 和 Connected Intelligence Data-as-a-Service 在 2022 年增長了 50% 以上。我們對這些產品在未來幾年的強勁增長充滿信心。

On Slide 8, we update you on the progress on our third key foundation, our financial durability. The attractiveness of our financial model comes from large, under penetrated and growing $3 billion cross-sell TAM within U.S. and Canada, and with a significant percentage of the market still using outdated legacy and paper-based solutions. With over 15,000 existing customers and a growing platform of products, our accelerating cross-sell opportunity provides a meaningful path to a sustained, durable long-term growth when you consider these customers currently only having to offer 19 products on average.

在幻燈片 8 上，我們向您介紹了我們第三個關鍵基礎的進展情況，即我們的財務可持續性。我們財務模型的吸引力來自於美國和加拿大境內規模龐大、滲透率低且不斷增長的 30 億美元交叉銷售 TAM，並且很大一部分市場仍在使用過時的遺留和紙質解決方案。擁有超過 15,000 名現有客戶和不斷增長的產品平台，當您考慮這些客戶目前平均只需提供 19 種產品時，我們加速的交叉銷售機會為持續、持久的長期增長提供了一條有意義的途徑。

We have demonstrated continued momentum in cross-selling the platform. With the number of customers with 4 or more of our products growing nearly 30% to over 2,400 as of the end of 2022. We are seeing this cross-sell success being further amplified by the flywheel effect in which products benefit from each other, compounding the value for our customers and increasing the stickiness of our suite.

我們在交叉銷售平台方面表現出了持續的勢頭。到 2022 年底，擁有 4 種或更多產品的客戶數量增長了近 30%，達到 2,400 多個。我們看到這種交叉銷售的成功因飛輪效應而進一步擴大，在飛輪效應中，產品相互受益，複合為我們的客戶創造價值並增加我們套件的粘性。

Our recently announced 6 persona-specific multiproduct cloud bundles will further increase our cross-sell velocity and create more operating leverage. We also have several other margin expansion opportunities given our scalable SaaS and operating business model.

我們最近宣布的 6 個特定於角色的多產品雲捆綁包將進一步提高我們的交叉銷售速度並創造更多的運營槓桿。鑑於我們可擴展的 SaaS 和運營業務模型，我們還有其他幾個利潤擴張機會。

In 2022, we grew our international operations in India to now total over 1,200 employees and cover nearly all functions within the company.

2022 年，我們擴大了在印度的國際業務，目前員工總數超過 1,200 人，幾乎涵蓋了公司的所有職能。

Our fourth key foundation is the further upside through international expansion, innovation and M&A, as shown on Slide 9. We are delivering double-digit growth in North America and expect this to continue over the long run with additional upside through international expansion.

我們的第四個關鍵基礎是通過國際擴張、創新和併購進一步上行，如幻燈片 9 所示。我們在北美實現了兩位數的增長，並預計這種增長將長期持續，並通過國際擴張獲得額外的上行空間。

We announced late in the year that we will be opening our sales and support office in Dubai this spring to support growth in the Middle East with several new logo wins and a strong pipeline for 2023.

我們在今年晚些時候宣布，我們將於今年春天在迪拜開設銷售和支持辦事處，以通過贏得幾個新徽標和 2023 年的強大管道來支持中東地區的增長。

Today, I am very excited to announce our expansion into Africa through our strategic partnership with OneConnect. Based in Johannesburg, OneConnect is a provider of full-service technology solutions in Africa and is committed to bringing PowerSchool solution to over 0.5 million students this year with a strong long-term opportunity for us to support improving education outcome for over 240 million students across the sub-Saharan Africa. Innovation is at the heart of our company, and we are investing in product road maps. An example of this innovation is our recent announcement last month of our new LearningNAV and ContentNAV solutions.

今天，我非常高興地宣布我們通過與金融壹賬通的戰略合作夥伴關係向非洲擴張。 OneConnect 總部位於約翰內斯堡，是一家在非洲提供全方位服務技術解決方案的提供商，致力於在今年為超過 50 萬學生提供 PowerSchool 解決方案，這為我們提供了一個強大的長期機會，可以支持改善全球超過 2.4 億學生的教育成果撒哈拉以南非洲。創新是我們公司的核心，我們正在投資產品路線圖。這種創新的一個例子是我們最近在上個月發布的新 LearningNAV 和 ContentNAV 解決方案。

Key milestones in the push towards a data-centric, automated and highly impactful personalized learning solution. A market opportunity, we estimate to be over $100 billion. These tools utilize artificial intelligence to automate a student's learning pathway and ease the selection of customer approved content resources that support those instructional pathways. M&A has been an important tool for expanding our technology capabilities and growth opportunities, and we have demonstrated tremendous success with each of our acquisitions. The recent acquisition of Kickboard, Kinvolved, Chalk and Headed2 have already been integrated and are outperforming our deal models, driving growth in each of the pillars and have expanded our cross-sell TAM by over $500 million.

推動以數據為中心、自動化且極具影響力的個性化學習解決方案的關鍵里程碑。一個市場機會，我們估計超過 1000 億美元。這些工具利用人工智能使學生的學習路徑自動化，並簡化了支持這些教學路徑的客戶認可內容資源的選擇。併購一直是擴大我們的技術能力和增長機會的重要工具，我們在每一次收購中都取得了巨大的成功。最近對 Kickboard、Kinvolved、Chalk 和 Headed2 的收購已經整合，並且表現優於我們的交易模式，推動了每個支柱的增長，並將我們的交叉銷售 TAM 擴大了超過 5 億美元。

We intend to continue acquiring best-of-breed technologies to enhance our platform and global presence in 2023 and beyond. As I have outlined in these 4 key takeaways, we have proven our capability to execute on our financial metrics and goals. During our IPO, in the summer of 2021, we communicated several targets for our key metrics, most of which we have surprised in our first 1.5 years of being a public company.

我們打算在 2023 年及以後繼續收購同類最佳技術，以增強我們的平台和全球影響力。正如我在這 4 個要點中概述的那樣，我們已經證明了我們執行財務指標和目標的能力。在我們 2021 年夏季的首次公開募股期間，我們為我們的關鍵指標傳達了幾個目標，其中大部分在我們成為上市公司的頭 1.5 年中都讓我們感到驚訝。

On Slide 10, you will see that our stated long-term target NRR rate of between 105% to 107% was surpassed this year, reaching 109% in this fourth quarter. We also have already met our long-term net debt leverage target of 3 to 4x EBITDA, finishing the year at 3x.

在幻燈片 10 上，您會看到我們今年已超過 105% 至 107% 的長期目標 NRR，在第四季度達到 109%。我們也已經實現了 3 至 4 倍 EBITDA 的長期淨債務槓桿目標，今年年底達到 3 倍。

Our IPO targets for 2022 revenue and adjusted EBITDA were eclipsed. And on the unlevered free cash flow, we beat our 2022 target of $127 million by $6 million. This speaks to our ability to perform and deliver on our commitments. And you can expect us to increase many of these targets in our 2023 Investor Day that Eric will share.

我們 2022 年收入和調整後 EBITDA 的 IPO 目標黯然失色。在無槓桿自由現金流方面，我們比 2022 年 1.27 億美元的目標高出 600 萬美元。這說明了我們履行和兌現承諾的能力。您可以期待我們在 Eric 將分享的 2023 年投資者日提高其中許多目標。

With these strategies, our team and our resilient market, we expect to deliver another year of low double-digit revenue growth, combined with the meaningful margin expansion, which you will see in our guidance. Let me now pass the call over to Eric to review the financial details of the fourth quarter and the full year 2022 and provide the details of our guidance for 2023. Eric?

憑藉這些戰略、我們的團隊和我們有彈性的市場，我們預計將在下一年實現兩位數的低收入增長，並結合有意義的利潤率擴張，您將在我們的指南中看到這一點。現在讓我把電話轉給埃里克，讓他審查第四季度和 2022 年全年的財務細節，並提供我們 2023 年指導的詳細信息。埃里克？

Thank you, Hardeep. We are pleased to finish 2022 with such a great quarter. Looking back on the year, I'm proud of the performance we delivered. We drove top line growth of 13%, coupled with an adjusted EBITDA margin of 31.1%, which reflects a 220 basis point year-over-year improvement. All of this was achieved while continuing to invest in innovation for long-term durable growth.

謝謝你，哈迪普。我們很高興以如此出色的季度結束 2022 年。回顧這一年，我為我們的表現感到自豪。我們推動營收增長 13%，調整後的 EBITDA 利潤率為 31.1%，同比增長 220 個基點。所有這一切都是在繼續投資於創新以實現長期持久增長的同時實現的。

Our customer base has expanded to over 15,000 districts and our differentiated Unified platform of mission-critical products drove record cross-sell performance during the year. This resulted in a meaningful improvement in our net revenue retention rate, which has increased each quarter since we IPO-ed in mid-2021. As Hardeep outlined, we are already well ahead of many of the long-term targets we laid out at the time of the IPO, which is a testament to our team's tremendous ability to execute.

我們的客戶群已擴展到 15,000 多個地區，我們差異化的關鍵任務產品統一平台在這一年推動了創紀錄的交叉銷售業績。這導致我們的淨收入保留率有了顯著提高，自 2021 年年中首次公開募股以來，每個季度都在增加。正如 Hardeep 概述的那樣，我們已經遠遠領先於我們在 IPO 時制定的許多長期目標，這證明了我們團隊強大的執行能力。

Moving to the results and summarized on Slide 11. Fourth quarter total revenue came in at $161 million, up 10% year-over-year and in line with the guidance range we provided on our last earnings call. Full year 2022 revenue was $630 million, representing a growth rate of 13% for the year. Subscription and support revenue, our most strategic revenue stream, grew 10% year-over-year and accounted for 88% of total revenue in the quarter.

轉向結果並在幻燈片 11 上進行總結。第四季度總收入為 1.61 億美元，同比增長 10%，符合我們在上次財報電話會議上提供的指導範圍。 2022 年全年收入為 6.3 億美元，全年增長率為 13%。訂閱和支持收入是我們最具戰略意義的收入來源，同比增長 10%，佔本季度總收入的 88%。

For the year, S&S grew 14% and represented 86% of total revenue. Our services business generated revenue of $15 million, an increase of 6% year-over-year, which has moderated from prior period growth rates driven by our faster implementations and more efficient deployment cycles.

這一年，S&S 增長了 14%，佔總收入的 86%。我們的服務業務產生了 1500 萬美元的收入，同比增長 6%，由於我們更快的實施和更高效的部署週期所推動的前期增長率有所放緩。

On a full year basis, our services business grew 14% over 2021. Revenue from license and other, which relates mainly to our third-party revenue came in at $4 million for the quarter, representing a 21% increase over last year. As a reminder, L&O is our least strategic and nonmaterial revenue stream representing only 3% of total revenue. We ended the year with an annual recurring revenue balance of $596 million, an 11% increase over last year.

從全年來看，我們的服務業務比 2021 年增長了 14%。本季度主要與我們的第三方收入相關的許可和其他收入為 400 萬美元，比去年增長 21%。提醒一下，L&O 是我們最不具戰略性和非物質性的收入來源，僅佔總收入的 3%。年底，我們的年度經常性收入餘額為 5.96 億美元，比去年增長 11%。

Our net revenue retention rate or NRR came in at 109.1%, representing a sequential improvement of 40 basis points and our fifth consecutive quarter of sequential improvement. Year-over-year NRR improved 270 basis points. This strong performance was driven primarily by higher cross-sell and our normal contracted price increases. Our net retention success reflects the deep value and ROI we provide to our customers who continue to expand the relationship with PowerSchool.

我們的淨收入保留率或 NRR 為 109.1%，環比提高 40 個基點，也是我們連續第五個季度環比提高。 NRR 同比提高 270 個基點。這種強勁的表現主要是由更高的交叉銷售和我們正常的合同價格上漲推動的。我們的淨保留成功反映了我們為繼續擴大與 PowerSchool 的關係的客戶提供的深層價值和投資回報率。

Adjusted gross profit for the quarter came in at $112 million with a 69.5% margin, representing a 110 basis point sequential increase and a 370 basis point year-over-year improvement. For the full year, adjusted gross profit reached $429 million or a 68.1% margin, representing an 80 basis point improvement over 2021.

本季度調整後的毛利潤為 1.12 億美元，利潤率為 69.5%，環比增長 110 個基點，同比增長 370 個基點。全年，調整後的毛利潤達到 4.29 億美元或 68.1% 的利潤率，比 2021 年提高了 80 個基點。

Looking at fourth quarter operating expenses, our non-GAAP research and development expense came in at $22 million, representing 13.8% of revenue compared with 16.9% last year. Including capitalized R&D expenses, the total invested in R&D was 19% of revenue compared with 22.1% last year.

看看第四季度的運營費用，我們的非 GAAP 研發費用為 2200 萬美元，佔收入的 13.8%，而去年為 16.9%。包括資本化的研發費用在內，研發總投入佔收入的19%，而去年為22.1%。

Full year non-GAAP R&D expense grew 5% to $90.5 million. Non-GAAP SG&A expense declined 3% year-over-year in the fourth quarter to $37 million, representing 23% of revenue, which is 320 basis points lower than the 26.2% in Q4 of last year. Non-GAAP SG&A expense for the full year 2022 increased 11%.

全年非 GAAP 研發費用增長 5% 至 9050 萬美元。第四季度非 GAAP SG&A 費用同比下降 3% 至 3700 萬美元，佔收入的 23%，比去年第四季度的 26.2% 低 320 個基點。 2022 年全年的非 GAAP SG&A 費用增長了 11%。

Our fourth quarter adjusted EBITDA was $53 million or 32.8% margin exceeding the high end of our guidance range by $2 million. Full year adjusted EBITDA was $196 million, representing a 31.1% margin and 22% higher than 2021 and 190 basis points higher than the original guidance we provided at the beginning of 2022.

我們第四季度調整後的 EBITDA 為 5300 萬美元或 32.8% 的利潤率，超出我們指導範圍的上限 200 萬美元。全年調整後的 EBITDA 為 1.96 億美元，利潤率為 31.1%，比 2021 年高 22%，比我們在 2022 年初提供的原始指導高 190 個基點。

Non-GAAP net income in the fourth quarter was $0.27 per fully diluted share, which is nearly double the $0.14 per diluted share in the same time period last year. Full year 2022 non-GAAP EPS was $0.85, and 35% higher than the $0.63 we earned in 2021.

第四季度非 GAAP 淨收入為每股完全攤薄收益 0.27 美元，幾乎是去年同期每股攤薄收益 0.14 美元的兩倍。 2022 年全年非 GAAP 每股收益為 0.85 美元，比我們 2021 年的 0.63 美元高出 35%。

On Slide 12, you will see a summary of our 2022 margin improvement driven by multiple levers. The strong adjusted gross profit performance was driven by improved operational scale, responsible hiring and a continued focus on process efficiencies. Non-GAAP R&D expense declined as a percent of revenue as our development is streamlined associated with more cloud bundles and our India Center of Excellence continues to accelerate the pace of our innovation.

在幻燈片 12 上，您將看到我們 2022 年由多個槓桿驅動的利潤率改善的摘要。強勁的調整後毛利表現得益於運營規模的擴大、負責任的招聘以及對流程效率的持續關注。非 GAAP 研發費用佔收入的百分比下降，因為我們的開發與更多雲捆綁相關聯，並且我們的印度卓越中心繼續加快創新步伐。

On adjusted SG&A, we saw a 40 basis point improvement year-over-year in spend as a percentage of revenue as we realize savings from our 2022 facilities consolidation, savings from various G&A process and cost rationalization initiatives and the normalization of fixed public company costs we brought on in 2021.

在調整後的 SG&A 方面，我們看到支出佔收入的百分比同比提高 40 個基點，因為我們實現了 2022 年設施整合的節省、各種 G&A 流程和成本合理化計劃的節省以及固定上市公司成本的正常化我們在 2021 年推出。

One of our biggest priorities is to continue improving our already strong margins in 2023 and beyond. We will do this by being laser focused on operational efficiencies and innovation initiatives.

我們最大的優先事項之一是在 2023 年及以後繼續提高我們本已強勁的利潤率。我們將通過專注於運營效率和創新計劃來做到這一點。

As I have mentioned before, our target is to improve our adjusted EBITDA margin by 50 to 100 basis points each year. In 2023, we expect to exceed the high end of this range, delivering almost 150 basis points of improvement.

正如我之前提到的，我們的目標是每年將調整後的 EBITDA 利潤率提高 50 至 100 個基點。到 2023 年，我們預計將超過該範圍的高端，實現近 150 個基點的改善。

Fourth quarter free cash flow, a non-GAAP measure, was $33.2 million, up 182% from the same time period last year and was driven primarily by increased profitability. Full year free cash flow was $104 million or 16.5% of revenue.

第四季度自由現金流（非美國通用會計準則指標）為 3320 萬美元，比去年同期增長 182%，主要受盈利能力提高的推動。全年自由現金流為 1.04 億美元，佔收入的 16.5%。

Moving to the balance sheet. We ended the quarter with $137 million in cash and equivalents, an increase of 59% over the same period last year, driven by strong free cash flow performance. Net debt leverage at the end of the year was 3x a meaningful improvement over the 4.1x a year earlier.

轉到資產負債表。在強勁的自由現金流表現的推動下，本季度末我們擁有 1.37 億美元的現金和等價物，比去年同期增長 59%。與去年同期的 4.1 倍相比，今年年底的淨債務槓桿率是 3 倍，意義重大。

Now turning to our 2023 full year and first quarter financial outlook on Slide 13. For the full year 2023, we expect total revenue in the range of $688 million to $694 million, with the midpoint representing a 10% year-over-year growth rate and adjusted EBITDA of $222 million to $227 million, representing a 32.5% adjusted margin at the midpoint.

現在轉向我們在幻燈片 13 上的 2023 年全年和第一季度財務展望。對於 2023 年全年，我們預計總收入在 6.88 億美元至 6.94 億美元之間，中點代表同比增長率為 10%調整後的 EBITDA 為 2.22 億美元至 2.27 億美元，中點調整後利潤率為 32.5%。

For the first quarter, we expect to deliver total revenue in the range of $158 million to $160 million, representing a 7% year-over-year growth rate at the top end, and we remain committed to our low double-digit full year top line growth expectations. This Q1 growth rate is being impacted by the delay of a very large deal which affected the timing of services and L&O revenue recognition.

對於第一季度，我們預計總收入將在 1.58 億美元至 1.6 億美元之間，最高同比增長率為 7%，我們仍然致力於實現低兩位數的全年最高收入線增長預期。第一季度的增長率受到一項非常大的交易的延遲的影響，這影響了服務的時間和 L&O 收入的確認。

For the first quarter, adjusted EBITDA, we expect a range of $47 million to $49 million, representing a 30.2% margin at the midpoint. Our adjusted EBITDA margin for the first quarter is impacted by some seasonal in-person events such as a sales kickoff, which are held early in the year to maximize their impact.

對於第一季度，調整後的 EBITDA，我們預計範圍為 4700 萬至 4900 萬美元，中點利潤率為 30.2%。我們調整後的第一季度 EBITDA 利潤率受到一些季節性現場活動的影響，例如銷售啟動，這些活動在年初舉行以最大限度地發揮其影響。

For modeling purposes, we expect capital expenditures, excluding capitalized software of approximately $5 million to $8 million and share-based compensation expense of approximately $70 million for the full year. Fully diluted shares by the end of the year are expected to be in the range of 200 million to 205 million shares.

出於建模目的，我們預計全年的資本支出約為 500 萬至 800 萬美元的資本化軟件和約 7000 萬美元的股權補償費用。預計到年底完全攤薄後的股份將在2億至2.05億股之間。

And we're excited to announce we will host our first Investor Day, which will take place on Wednesday, July 12 and in conjunction with our EDGE 2023 event, which is our flagship user group event. Attendees will hear from our executive leadership team, including updated long-term goals and will also have the opportunity to meet with our top customers and product leaders and attend breakout sessions to dive deeper into PowerSchool's products. This will be our first EDGE event since the pandemic began in 2020 and our inaugural Investor Day, so we're very excited to share the latest and greatest with all of you.

我們很高興地宣布，我們將舉辦第一個投資者日，該日將於 7 月 12 日星期三與我們的 EDGE 2023 活動同時舉行，這是我們的旗艦用戶組活動。與會者將聽取我們執行領導團隊的意見，包括更新的長期目標，還將有機會與我們的頂級客戶和產品負責人會面，並參加分組會議以更深入地了解 PowerSchool 的產品。這將是我們自 2020 年大流行開始以來的第一個 EDGE 活動，也是我們的首屆投資者日，因此我們很高興與大家分享最新和最重要的信息。

In closing, we are proud of our team and the execution in 2022 and look forward to continuing our momentum in 2023. We believe the large and resilient global K-12 market is recognizing the importance and impact of technology in advancing student outcomes, which positions us to deliver long-term durable growth and provide significant value to our customers and shareholders. This concludes our prepared remarks.

最後，我們為我們的團隊和 2022 年的執行感到自豪，並期待在 2023 年繼續我們的勢頭。我們相信，龐大而有彈性的全球 K-12 市場正在認識到技術在提高學生成績方面的重要性和影響，這定位我們實現長期持久增長，並為我們的客戶和股東提供重要價值。我們準備好的發言到此結束。

Operator, will you please open the line for Q&A.

接線員，請您打開問答熱線。

(Operator Instructions) Our first question comes from the line of Saket Kalia from Barclays.

（操作員說明）我們的第一個問題來自巴克萊銀行的 Saket Kalia 系列。

Nice way to end the year. Hardeep, maybe for you. A couple of big wins that you called out in your prepared remarks and the press release, which included Unified Insights, I believe, in 1 or 2 of them. I was wondering if you could just remind us how Unified Insights and maybe that broader data portfolio complements the broader product slate for power school, how that Unified Insights offering is priced and maybe how much room there is inside of your base for further adoption?

結束這一年的好方法。 Hardeep，也許適合你。你在準備好的發言和新聞稿中提到了幾個重大勝利，我相信其中有 1 或 2 個包括 Unified Insights。我想知道您是否可以提醒我們 Unified Insights 以及更廣泛的數據組合如何補充電力學校更廣泛的產品範圍，Unified Insights 產品的定價方式以及您的基礎內部有多少空間可以進一步採用？

Sure, Saket. You're absolutely right. One of the beauties of our Unified Insights products is not only the most differentiated, given that we have the breadth of the platform, so we are able to offer all-channel analytics, it's also a very large opportunity. We have multiple products within Unified Insights around Student Success, Student Essentials, Talent Analytics, Operational Analytics as well as Career Analytics as well.

當然，Saket。你是絕對正確的。我們 Unified Insights 產品的優點之一不僅是最具差異化，因為我們擁有平台的廣度，因此我們能夠提供全渠道分析，這也是一個非常大的機會。我們在 Unified Insights 中擁有多種產品，包括學生成功、學生基礎、人才分析、運營分析以及職業分析。

So when you look at the breadth of that, right, that's almost $10 to $20 per student. So if just within North America, that's a $1 billion plus TAM. We still only penetrated less than 10% of our base in the market. So there is a significant upside more.

所以當你看一下它的廣度時，是的，每個學生幾乎是 10 到 20 美元。因此，如果僅在北美，那就是 10 億美元以上的 TAM。我們仍然只滲透了不到 10% 的市場基礎。所以還有更多的顯著優勢。

We're already seeing phenomenal growth of almost 50% plus through the Unified Insights. And given our leadership today as well as with some of the investments we have done by adopting Snowflake and on AWS as a platform, we're actually opening up a whole stew of opportunities around Connected Intelligence where we're able to even go beyond the K-12 districts through counties, to states, to even countries on whole workforce analytics, bringing not just K-12, but K-20 data. So very strong and big opportunity ahead of us.

通過 Unified Insights，我們已經看到近 50% 以上的驚人增長。鑑於我們今天的領導地位以及我們通過採用 Snowflake 和 AWS 作為平台所做的一些投資，我們實際上正在圍繞 Connected Intelligence 打開一整套機會，我們甚至能夠超越K-12 學區通過縣、州、甚至國家進行整體勞動力分析，不僅帶來 K-12 數據，還帶來 K-20 數據。擺在我們面前的是非常強大和巨大的機會。

Yes, that's really interesting. Eric, maybe for my follow-up for you. Great to see the margin expansion for next year off of already a year that's expanded margins nicely. Maybe for '23, maybe you could just talk to us about 2 things within that expansion. First, how you're thinking about services mix, right? Because, of course, that has gross margin -- a gross margin impact. And then also how you're thinking about the investment in international scaling, just as the revenue there grows but also as you continue to invest there?

是的，這真的很有趣。埃里克，也許是為了我跟進你。很高興看到明年的利潤率在已經很好地擴大了利潤率的一年中有所擴大。也許對於 23 年，也許你可以和我們談談擴展包中的兩件事。首先，您是如何考慮服務組合的，對吧？因為，當然，這有毛利率——毛利率影響。然後你如何考慮國際擴張的投資，就像那裡的收入增長一樣，同時你繼續在那裡投資？

So let me just -- as you think about the adjusted gross margins, as mentioned, we've expanded them over 220 basis points year-over-year, 2021 versus 2022. And then in our guide, you're seeing another 150 basis points. Within that, I think it's important that we've been really reiterating this is investments like personalized learning, investments like the international, which are key priorities for us. Those are still folding into that.

所以讓我 - 當你考慮調整後的毛利率時，如前所述，我們已經將它們與去年同期相比擴大了 220 個基點，2021 年與 2022 年相比。然後在我們的指南中，你會看到另外 150 個基點點。其中，我認為重要的是我們一直在重申這是像個性化學習這樣的投資，像國際化這樣的投資，這是我們的關鍵優先事項。那些仍在折疊。

So while we're able to continue to manage the margin expansion, we're also reinvesting significantly in these key priorities. So I think it's important that international, personalized learning. Those are top priors. Those are going to continue to be primary investments.

因此，雖然我們能夠繼續管理利潤率擴張，但我們也在這些關鍵優先事項上進行了大量再投資。所以我認為國際化、個性化的學習很重要。這些都是先驗。這些將繼續成為主要投資。

When you think about the services business, and Hardeep had mentioned one of the large deals in Q1 that we've been chosen for, you'll see some of the impacts that the services business will have in the results. Certainly, the Q1 revenue guide was a bit lower. That's all driven in, as I mentioned in my prepared remarks, by services revenue as well as L&O revenue.

當你考慮服務業務時，Hardeep 提到了第一季度我們被選中的一項大型交易，你會看到服務業務將對結果產生的一些影響。當然，第一季度的收入指南要低一些。正如我在準備好的發言中提到的那樣，這一切都是由服務收入和 L&O 收入推動的。

So I think it's important that we are going to see, as we continue to get larger and more strategic. There will be some services variability. And as you mentioned, it does come with a little bit of a lower margin profile. But however, we're still going to manage the overall margin profile to expand.

因此，我認為隨著我們繼續變得更大和更具戰略意義，我們將會看到這一點很重要。會有一些服務可變性。正如你所提到的，它確實有一點較低的利潤率。但是，我們仍將管理整體利潤率以擴大規模。

And then some of the services variability will impact just the revenue that we see from quarter-to-quarter. But I think it's important and we reiterated it very much so in our prepared remarks that we are absolutely committed to driving low double-digit revenue growth.

然後一些服務的可變性只會影響我們從季度到季度看到的收入。但我認為這很重要，我們在準備好的發言中重申了這一點，我們絕對致力於推動低兩位數的收入增長。

Obviously, the most strategic piece of our revenue is our subs and support, and we remain committed to driving that low double digits. So I think it's important to hit that head on because I know certainly some of the -- as you look at the Q1 guide, we'll note that it's going to be a little bit lower, but obviously, full year, we're right at the 10%, which is our commitment.

顯然，我們收入中最具戰略意義的部分是我們的訂閱和支持，我們仍然致力於推動這一低兩位數的增長。因此，我認為直面這一點很重要，因為我當然知道一些——當你查看第一季度指南時，我們會注意到它會稍微降低一點，但顯然，全年，我們就在 10%，這是我們的承諾。

Our next question comes from the line of Brent Thill from Jefferies.

我們的下一個問題來自 Jefferies 的 Brent Thill。

This is David on for Brent. I wanted to ask about the OneConnect partnership that you guys have in Africa. Just talk to us a little bit about how the economics vary there, but you guys are kind of going in and doing it yourself? And how we should think about you guys deploying the strategy a little bit further in some of the other international regions?

這是布倫特的大衛。我想問一下你們在非洲的 OneConnect 合作夥伴關係。只是和我們談談那裡的經濟學有何不同，但是你們有點想自己動手做嗎？我們應該如何考慮你們在其他一些國際地區進一步部署該戰略？

Sure, David. Thank you. David, as you know that we've already talked about some of our investment in Middle East with our foot -- boots on the ground, there's offices there. We've also seen expansion in India. We continue to further invest there. This is very exciting with our partnership with OneConnect, which is an exclusive partnership. We've got a partner who's committing 0.5 million students who are going to adopt it with a multimillion dollar commit, and that's the kind of partnership we're looking for. Expect that before year-end, pretty much most of the regions across the globe. We could have very exclusive, tight relationships with dozens of partners who are going to have major commitments around adopting PowerSchool solutions with the local school districts, not just international and private schools, but even with government schools. So we do expect international to almost double up this year. But over the next 3 to 5 years, we expect this to grow almost $80 million to $100 million, and we're going to be walking through some of that road map in the Investor Day with you guys.

當然，大衛。謝謝。大衛，正如你所知，我們已經用腳談論了我們在中東的一些投資——腳踏實地，那裡有辦事處。我們也看到了在印度的擴張。我們繼續在那裡進一步投資。我們與 OneConnect 的合作夥伴關係非常令人興奮，這是一種獨家合作夥伴關係。我們有一個合作夥伴承諾 50 萬學生將以數百萬美元的承諾採用它，這就是我們正在尋找的合作夥伴關係。預計在年底之前，全球幾乎大部分地區都會出現這種情況。我們可以與數十個合作夥伴建立非常獨特、緊密的關係，這些合作夥伴將在與當地學區採用 PowerSchool 解決方案方面做出重大承諾，不僅是國際和私立學校，甚至還有公立學校。因此，我們確實預計今年國際業務幾乎翻了一番。但在接下來的 3 到 5 年裡，我們預計這一數字將增長近 8000 萬到 1 億美元，我們將在投資者日與你們一起討論其中的一些路線圖。

Got it. That's super helpful. And then maybe as a follow-up, I'm sorry to keep pounding on the international side, but obviously, it's an exciting growth opportunity. I know it's super early. You haven't even opened up all the offices. But as you guys think about maybe some of the biggest roadblocks you've experienced, maybe it's localization of content or either the product or regulation. Just curious, what are some of the roadblocks that you guys are coming up against?

知道了。這非常有幫助。然後也許作為後續行動，我很抱歉在國際方面繼續衝擊，但顯然，這是一個令人興奮的增長機會。我知道現在超級早。你甚至還沒有打開所有的辦公室。但是你們想想你們可能遇到的一些最大障礙，可能是內容的本地化，或者是產品或法規。只是好奇，你們遇到的一些障礙是什麼？

Well, the beauty is that when you look at our core SIS platform and our Schoology platform. We actually have adoptions already in multiple countries, right, almost 90 countries, not just the American education schools international, but even the local and private schools. So the platform does localize.

好吧，美妙之處在於，當您查看我們的核心 SIS 平台和我們的 Schoology 平台時。實際上，我們已經在多個國家/地區進行了收養，對，將近 90 個國家/地區，不僅是美國國際教育學校，甚至還有本地和私立學校。所以該平台確實本地化了。

We still do need to, to your point, invest in partnerships and content and curriculum with the local partners. That's where these exclusive partnerships really come into picture as they invest with us in building those integrations to the local curriculum providers and allows us to have full turnkey solutions. So we're already seeing some great success, and these partnerships will help us actuate this pretty quickly.

就您的觀點而言，我們仍然需要投資於與當地合作夥伴的合作夥伴關係以及內容和課程。這就是這些獨家合作夥伴關係真正發揮作用的地方，因為他們與我們一起投資構建與本地課程提供商的集成，並允許我們擁有完整的交鑰匙解決方案。因此，我們已經看到了一些巨大的成功，這些合作夥伴關係將幫助我們迅速實現這一目標。

Our next question comes from the line of Koji Ikeda from Bank of America.

我們的下一個問題來自美國銀行的 Koji Ikeda。

I actually wanted to kind of go back to a previous question and thinking about the guidance and really kind of honing in on the subscription and support revenue line. So looking at the guide and the commentary previously on the services and kind of the L&O revenue, I guess the question is, could -- or should subscription revenue for 2023 stay at the double-digit level? Or is there an instance where this could dip into the 9s, kind of like 9% growth range to kind of get to that guidance?

我實際上想回到之前的問題並考慮指導，並真正磨練訂閱和支持收入線。因此，看看之前關於服務和 L&O 收入類型的指南和評論，我想問題是，2023 年的訂閱收入能否或應該保持在兩位數的水平？或者有沒有一個例子，這可能會下降到 9s，有點像 9% 的增長范圍來達到那個指導？

Yes. We -- so Koji, thanks for the question. We absolutely do not see any case where on the full year basis that the S&S revenue will dip below 10%. We just don't see that.

是的。我們——所以 Koji，謝謝你提出這個問題。我們絕對看不到全年 S&S 收入會跌破 10% 的情況。我們只是看不到。

Got it. Okay. No, that's super helpful. And then on the net revenue retention, 109.1%, really nice there, 6 straight quarters of expansion too. I mean, where could this metric go? How should we be thinking about this metric? Could it expand into the kind of the [110] plus range here in 2023? And what assumptions do you have for net revenue retention for the guidance for 2023?

知道了。好的。不，那超級有用。然後在淨收入保留方面，109.1%，真的很好，連續 6 個季度擴張。我的意思是，這個指標可以去哪裡？我們應該如何考慮這個指標？它能否在 2023 年擴展到 [110] 以上範圍？您對 2023 年指南的淨收入保留有哪些假設？

Yes. So what you see when we finished the year is really a reflection of the strong cross-sell that we saw as well as the industry-leading gross retention rates that we see. So that's why we ended as high as we did. And as I mentioned in my prepared remarks, we've seen a nice increase since the beginning of the year. .

是的。因此，當我們結束這一年時，您所看到的實際上反映了我們所看到的強勁交叉銷售以及我們所看到的行業領先的總保留率。所以這就是為什麼我們最終達到如此高的水平。正如我在準備好的發言中提到的那樣，自今年年初以來我們已經看到了不錯的增長。 .

What I would say, and if you go back to the long-term guidance that we provided when we went public is we said we would be in the [108% to 110% range]. What I would say is we're going to tighten that up a little bit to the [109% to 110%] range this year. And you'll see a little bit of variability from quarter-to-quarter.

我要說的是，如果你回到我們上市時提供的長期指導，我們說我們會在 [108% 到 110% 的範圍內]。我要說的是，今年我們將把它收緊到 [109% 到 110%] 的範圍。你會看到每個季度都有一些變化。

But I think this year, what I would tell you is we should be in the high 109% range. And then as we start to get a little bit further into this year, I think we can provide some further guidance on that in terms of does it go into 110% or some level beyond that in the future. But at this point, I would say remaining within our long-term guide of 108% to 110% and with the current results, I would say that we'll be on the higher end of that range.

但我認為今年，我要告訴你的是我們應該處於 109% 的高位。然後，隨著我們開始進一步進入今年，我認為我們可以就它是否進入 110% 或未來超過該水平的某個水平提供一些進一步的指導。但在這一點上，我想說保持在我們 108% 到 110% 的長期指導範圍內，根據目前的結果，我想說我們將處於該範圍的較高端。

Our next question comes from the line of Stephen Sheldon from William Blair.

我們的下一個問題來自 William Blair 的 Stephen Sheldon 的台詞。

Congrats on the strong end to the year here. First question, just as we think about the SIS, and I think you talked about revenue acceleration there in 2022. I think you've talked about 40% market share in the U.S. still being held by a variety of smaller fragmented kind of legacy SIS player. So, I guess, would you expect to see a continued pickup in school districts on smaller, more legacy solutions convert to a higher-end solution over the next few years? And what's the holdup from them doing so in this type of environment?

祝賀今年的強勢收尾。第一個問題，就像我們考慮 SIS 一樣，我想你談到了 2022 年那裡的收入加速。我想你已經談到美國 40% 的市場份額仍然由各種較小的、分散的遺留 SIS 持有播放器。所以，我想，您是否希望在未來幾年內看到學區繼續採用更小、更傳統的解決方案，轉變為更高端的解決方案？在這種環境下，他們這樣做有什麼阻礙？

Sure, Stephen. First, thanks for your comments about the quarter. We're definitely very excited about the success broadly on the platform with a record cross-sell for Q4. But then also, to your point, success is within our products like over the largest product base, which is in SIS, having almost growth in teams. So we do expect that with the wins like what you shared with Puerto Rico choosing us.

當然，斯蒂芬。首先，感謝您對本季度的評論。我們對平台在第四季度創下交叉銷售記錄的廣泛成功感到非常興奮。但是，就您而言，成功也在於我們的產品，就像在 SIS 中最大的產品基礎上，團隊幾乎在增長。因此，我們確實希望像您與波多黎各分享的勝利那樣選擇我們。

We definitely see that growth to sustain. As more and more, the 40%, the legacy SIS space, is seeing challenges around being able to cope up with some of the digital transformation needs, whether that's around more automation, more data visibility as well as more data security and all those things are kind of key drivers which are actually driving the legacy customers to accelerate.

我們肯定會看到這種增長會持續下去。隨著越來越多的 40%，傳統的 SIS 空間，看到了圍繞能夠應對一些數字化轉型需求的挑戰，無論是圍繞更多的自動化、更多的數據可見性以及更多的數據安全性等等是一種關鍵驅動因素，實際上正在推動傳統客戶加速發展。

And that's why you see the growth actually accelerating post pandemic, and we expect that to continue as most of the districts who are kind of kept themselves -- went through the pain during the pandemic and realizing that they've got to start modifying business.

這就是為什麼你看到大流行後增長實際上在加速，我們預計這種情況會繼續下去，因為大多數保持自我的地區——在大流行期間經歷了痛苦，並意識到他們必須開始調整業務。

Got it. That's helpful. And then as a follow-up, I wanted to ask about the pipeline. And I think I heard that the pipeline is up 25% year-over-year, so I just wanted to confirm that. And as we progress towards the key selling season, is coming up here. Are you seeing anything surprising about the level of interest across different products in your portfolio at this point?

知道了。這很有幫助。然後作為後續行動，我想詢問有關管道的問題。我想我聽說管道同比增長了 25%，所以我只是想確認一下。隨著我們走向關鍵的銷售季節，即將到來。此時，您是否對您投資組合中不同產品的興趣水平感到驚訝？

Yes. First, reiterating my comment. The pipeline is 25% up even for the first half. It's still early for the full year pipeline, and we'll get more visibility throughout the year for you and we'll provide that. Our deal velocity, our deal demand across the product remains consistent. As I mentioned, the bright spots definitely are the analytics, the SIS transformation, talent management continues to go actually very strongly, as well as the classroom products. So we're seeing pretty much growth in all of our major product lines.

是的。首先，重申我的評論。即使在上半年，管道也增加了 25%。全年管道還為時過早，我們將在全年為您提供更多可見性，我們將提供。我們的交易速度，我們對產品的交易需求保持一致。正如我所提到的，亮點肯定是分析、SIS 轉型、人才管理實際上繼續非常強勁，以及課堂產品。所以我們看到我們所有的主要產品線都有很大的增長。

Our next question comes from the line of Matt Hedberg from RBC.

我們的下一個問題來自 RBC 的 Matt Hedberg。

Congrats from me as well on the strong end of the year. Hardeep, obviously, one of the standouts was the new wins, but also the cross-sell and NRR that somebody asked about previously. I guess, I'm curious, we've sort of been impressed with the true platform play that PowerSchool, we think it is. That said, can you talk about the competitive environment? Have you -- have your win rates improved the last couple of years? Just maybe a little bit more on the competitive dynamic.

我也祝賀今年年底的強勁表現。顯然，Hardeep 的突出表現之一是新的勝利，還有之前有人問過的交叉銷售和 NRR。我想，我很好奇，我們對 PowerSchool 的真正平台遊戲印象深刻，我們認為它是。那就是說，你能談談競爭環境嗎？在過去的幾年裡，你的勝率有提高嗎？在競爭動態上可能會多一點。

Yes. Thanks again, Matthew, for your comments there. And absolutely, our win rates are actually holding up well, in fact, improving, especially when it comes to win rate against the legacy vendors. And to your point, one of the differentiators which is really playing out is the platform, right? There's a lot of people who call themselves platform, but their platforms are just within 1 pillar of a classroom or from an operation. Nobody has the SIS, which is the core, the classroom, the talent and all those pieces. .

是的。再次感謝 Matthew 的評論。當然，我們的贏率實際上保持良好，事實上，在提高，尤其是在與傳統供應商的贏率方面。就您而言，真正發揮作用的差異化因素之一是平台，對嗎？有很多人稱自己為平台，但他們的平台就在教室或手術室的一根柱子內。沒有人擁有 SIS，它是核心、課堂、人才和所有這些東西。 .

And one of the data points I shared, when you look at customers who actually have products from each of the pillar, that itself now is in [1,000s]. And customers who have 7-plus product, almost a full platform that almost is [$100 million] for ARR. So almost 20% of our business coming from those customers. So -- and that's a flywheel effect. The more they're buying, they're buying more products from us, and that's what [accelerating] the cross-sell as well as creating more demand outside that in net new, who are realizing that, hey, we have best-in-class products, and they can really start consolidating their platforms.

我分享的一個數據點，當你查看實際擁有每個支柱產品的客戶時，它本身現在在 [1,000s] 中。擁有 7+ 產品的客戶，幾乎是一個完整的平台，幾乎是 [1 億美元] 的 ARR。因此，我們近 20% 的業務來自這些客戶。所以——這就是飛輪效應。他們購買的越多，他們從我們這裡購買的產品就越多，這就是 [加速] 交叉銷售以及在淨新之外創造更多需求的原因，他們意識到，嘿，我們有最好的級產品，他們可以真正開始整合他們的平台。

Got it. Helpful. And then last quarter, you announced your new CRO, Tony Kender, just sort of now you have a chance to work with him a bit longer, any changes that he's making to sort of the sales kickoff or territories or plant quotas or anything like that, that's worth noting?

知道了。有幫助。然後在上個季度，你宣布了你的新 CRO Tony Kender，現在你有機會和他一起工作更長時間，他正在對銷售啟動或區域或工廠配額或類似的事情做出任何改變，這值得注意嗎？

We actually had a very phenomenal kickoff with almost 400 people. Our sales team is almost double when you look at from just 2 years back from where it is. So we're very excited to see all the sales really geared up. And Tony is bringing a lot of discipline around not just the commitment and the forecasting process but actually is solution selling, which you saw from our press release around bundling and selling more solutions. So we're actually selling more products at the same time. So that actually creates our customer acquisition and cross-sell acquisition even faster.

實際上，我們有近 400 人參加了一場非常精彩的開幕式。從 2 年前的現在來看，我們的銷售團隊幾乎翻了一番。所以我們很高興看到所有的銷售都真正做好了準備。托尼不僅圍繞承諾和預測過程帶來了很多紀律，而且實際上是解決方案銷售，你從我們關於捆綁和銷售更多解決方案的新聞稿中看到了這一點。所以我們實際上同時銷售更多產品。因此，這實際上使我們的客戶獲取和交叉銷售獲取速度更快。

What's exciting about is with people like Tony who have years of experience at Oracle and NetSuite, with people like Paul, we've brought in as a CCO with public company experience like HashiCorp and New Relic and Oracle. Eric, for example, with years of experience at Red Hat, we now have management team who actually not only manage billion dollar-plus businesses, but actually even help them scale up and manage the public company commitment expectations as well. So very excited about the leadership team and where that allows us to almost make us into a $1 billion enterprise.

令人興奮的是，像 Tony 這樣在 Oracle 和 NetSuite 有多年經驗的人，以及像 Paul 這樣的人，我們已經聘請了具有上市公司經驗的 CCO，例如 HashiCorp、New Relic 和 Oracle。例如，埃里克，憑藉在紅帽多年的經驗，我們現在擁有管理團隊，他們實際上不僅管理著十億美元以上的業務，而且實際上什至幫助他們擴大規模和管理上市公司的承諾期望。對領導團隊感到非常興奮，這讓我們幾乎可以成為一家價值 10 億美元的企業。

Our next question comes from the line of Joe Vruwink from Baird.

我們的下一個問題來自 Baird 的 Joe Vruwink。

I wanted to go back to Unified Insights. And, I guess, I'm curious on the labeling of this quarter as the breakout quarter since it's been your -- one of your faster-growing products. Certainly, it's not a stranger to statewide deals. Was this maybe more just referring to the absolute size of the orders in the quarter? Or are you may be starting to see the scope and use cases broaden out and so the potential for this suite becomes something bigger than maybe you thought about when the products like (inaudible) started coming together to make Unified Insights.

我想回到 Unified Insights。而且，我想，我對這個季度被標記為突破季度感到好奇，因為它是你的 - 你增長更快的產品之一。當然，全州交易並不陌生。這可能更僅僅指的是該季度訂單的絕對規模嗎？或者您是否可能開始看到範圍和用例擴大，因此該套件的潛力變得比您在（聽不清）等產品開始整合以形成 Unified Insights 時想像的更大。

That's a great fine point, Joe. So when you look at some -- we already have market leadership in Unified Insights. In fact, we have 10-plus trade contracts. We talked about Maryland earlier last year. What's exciting about the Alabama win is the fact that it's not only the student success analytics, there are actually multiple modules of analytics, including our new product on MTSS, multi-tiered systems of support, we launched last year. It's already showing this differentiation. And as Alabama looked through an RFP process and looked through all vendors, they selected us to be that partner who can give that the holistic analytics and MTSS support. So that just shows you the strength of our leadership already and the innovation and how we are quickly able to bring those innovations to the district.

這是一個很好的觀點，喬。所以當你看一些 - 我們已經在 Unified Insights 領域處於市場領先地位。事實上，我們有 10 多個貿易合同。去年早些時候我們談到了馬里蘭州。阿拉巴馬州的勝利令人興奮的是，它不僅是學生成功分析，實際上還有多個分析模塊，包括我們去年推出的 MTSS 新產品、多層支持系統。它已經顯示出這種差異化。當阿拉巴馬州查看 RFP 流程並查看所有供應商時，他們選擇我們作為可以提供整體分析和 MTSS 支持的合作夥伴。因此，這只是向您展示了我們的領導力和創新能力，以及我們如何快速將這些創新帶到該地區。

And then you take another spectrum of LA Unified, where they're adopting our Snowflake platform for Connected Intelligence, bringing data even from -- they don't use our SIS. They're bringing data from multiple of their system. And (inaudible) is another good one. So there's a lot more districts we're actually now adopting our Snowflake Connected Intelligence. And that also shows you the breadth for us to now able to go with analytics to even a much broader audience. And I think that's why it's a very exciting quarter from the analytics perspective.

然後你再看看 LA Unified 的另一個範圍，他們正在採用我們的 Snowflake 平台來實現互聯智能，甚至從他們不使用我們的 SIS 中獲取數據。他們從他們的多個系統中獲取數據。並且（聽不清）是另一個很好的。所以我們現在實際上有更多的地區採用我們的 Snowflake Connected Intelligence。這也向您展示了我們現在能夠為更廣泛的受眾提供分析的廣度。我認為這就是為什麼從分析的角度來看這是一個非常令人興奮的季度。

Okay. That's great. I guess, on new logos, so as I recall, I think last year was a very high rate of growth in new logos. And I think this year is higher as well and yet you're bringing in more new customers and your net retention is still going up. So, I guess, the question is the new customers of PowerSchool do not seem to be necessarily smaller where the deals are getting smaller in scope. Is that fair?

好的。那太棒了。我想，在新標識方面，我記得，我認為去年新標識的增長率非常高。而且我認為今年也更高，但是您正在引入更多新客戶並且您的淨保留率仍在上升。所以，我想，問題是 PowerSchool 的新客戶似乎不一定會在交易範圍越來越小的情況下變小。這公平嗎？

And then, I guess, it begs the question, since you do have fairly large coverage of the market already, we shouldn't really think about as you're moving maybe into a down market or private that, that's a lesser opportunity. It sounds like these new customers are continuing along kind of the same journey as your heritage customers.

然後，我想，這引出了一個問題，因為你已經對市場進行了相當大的覆蓋，我們不應該真正考慮你可能進入低迷市場或私人市場，這是一個較小的機會。聽起來這些新客戶正在繼續與您的老客戶相同的旅程。

No, it's a great point. And what I would say is that we take example of a district in Rhode Island, (inaudible) or a community unit school District (inaudible) in Illinois. They're not just buying our sits to the platform. They're actually buying 4 or 5 modules in that chart.

不，這是一個很好的觀點。我要說的是，我們以羅德島州的一個學區（聽不清）或伊利諾伊州的一個社區單位學區（聽不清）為例。他們不只是購買我們在平台上的席位。他們實際上購買了該圖表中的 4 或 5 個模塊。

So to your point, we are seeing more multi-module deals with our new logos as well, including tons of the charter schools and small schools as well, including private schools. So Epic Charter doubled down with the adoption of our curriculum solution. We've got tons of success happening at that level as well. YES Prep in Texas buying our Schoology platform. So we are seeing the demand across the full spectrum.

因此，就您的觀點而言，我們也看到了更多與我們的新徽標相關的多模塊交易，包括大量特許學校和小型學校，包括私立學校。因此，Epic Charter 通過採用我們的課程解決方案加倍努力。我們在那個層面上也取得了很多成功。 YES Prep 在德克薩斯州購買我們的 Schoology 平台。因此，我們看到了全方位的需求。

Our next question comes from the line of Fred Havemeyer from Macquarie.

我們的下一個問題來自 Macquarie 的 Fred Havemeyer。

Congrats, Hardeep, Eric and the entire PowerSchool team here. I think just bigger picture on ESSER funding at this point. We're at a place where schools can certainly continue to deploy as funding. And at the same time, we're considering the 2024 time frame ending of the availability of some of those funds. Hardeep and Eric, can you just give some context about how schools are thinking about continuing their purchasing of PowerSchool in any case where perhaps ESSER funds were applied?

祝賀 Hardeep、Eric 和整個 PowerSchool 團隊。我認為此時 ESSER 資金的大局觀。我們處在一個學校肯定可以繼續部署資金的地方。與此同時，我們正在考慮在 2024 年結束其中一些資金的可用性。 Hardeep 和 Eric，您能否提供一些背景信息，說明學校如何考慮在可能使用 ESSER 資金的情況下繼續購買 PowerSchool？

Yes. Thanks, Fred. Fred, the first thing is that based on all of our deals reservation, still majority of the deals, in fact, 80% plus of them still are using the core funding. They're not relying on ESSER. We do feel some of the districts would adopt the ESSER fund for the first 2 years, and then they still are allocating budget for an ongoing basis for those products because the beauty of our business -- products are right, when they adopt it. It's sticky. They're doing it for multiyear. So they're not necessarily using ESSER as the only buying pattern. It does help them. It provides them the cushion. So the initial implementation costs and everything they can extract. A good example of that, how Puerto Rico is doing that. .

是的。謝謝，弗雷德。弗雷德，第一件事是，根據我們所有的交易預訂，仍然有大部分交易，事實上，其中 80% 以上仍在使用核心資金。他們不依賴 ESSER。我們確實認為一些地區會在前 2 年採用 ESSER 基金，然後他們仍在為這些產品持續分配預算，因為我們業務的優點——產品是正確的，當他們採用它時。它很粘。他們這樣做了多年。因此，他們不一定將 ESSER 用作唯一的購買方式。它確實幫助了他們。它為他們提供了緩衝。因此，初始實施成本以及他們可以提取的一切。一個很好的例子，波多黎各是如何做到的。 .

But that's definitely not a restriction. As you said, there's still about [$100 billion] to be spent on ESSER. So we still feel that the budget environment, core budget environment remained stable. ESSER continues to provide that additional cushion, but we're not expecting this to change over demand or adoption or growth rate in any shape or form.

但這絕對不是限制。正如您所說，仍有大約 [1000 億美元] 用於 ESSER。所以我們仍然覺得預算環境、核心預算環境保持穩定。 ESSER 繼續提供額外的緩衝，但我們預計這不會以任何形式或形式隨著需求或採用或增長率而改變。

Got it. And so it sounds like it's really just helping getting deals across the line there, especially on some of those nonrecurring items. Is that...

知道了。所以聽起來它真的只是幫助在那里達成交易，尤其是在一些非經常性項目上。就是它...

That's a fair comment. Yes.

這是一個公平的評論。是的。

Awesome. And it was really helpful seeing some of the comparison of what you achieved versus your initial IPO time frame targets. Back of the IPO, we were also talking about how PowerSchool has penetrated, not just among schools but in terms of the overall wallet share of just IT spend within schools and software spend. And I wanted to check in on that just at that time, we've seen substantial multiproduct progress here, certainly seeing [30%] year-over-year growth in the overall 4-plus product customers you have. Just where do you presently stand? Or where does PowerSchool stand with respect to overall wallet penetration among IT spend to schools? And can you remind us about how to think about where that could go over time?

驚人的。看到你所取得的成就與你最初的 IPO 時間框架目標的一些比較真的很有幫助。在 IPO 之後，我們還討論了 PowerSchool 如何滲透，不僅在學校中，而且在學校內部 IT 支出和軟件支出的整體錢包份額方面。我當時想檢查一下，我們在這裡看到了多產品的實質性進展，當然看到您擁有的 4 種以上產品客戶的整體同比增長 [30%]。你現在站在哪裡？或者 PowerSchool 在學校 IT 支出中的整體錢包滲透率如何？你能提醒我們如何考慮隨著時間的推移會發生什麼嗎？

Sure. when you look at from a multi-product like the win 2 products. We've said, on average, our customers have a little more than 2 products, and that has improved. In fact, now the number of customers who have 2-plus products has improved from almost 2021, it was in the low 40s to almost now in the high 40s. So we are already seeing more adoption.

當然。當你從多產品來看像win 2的產品。我們說過，平均而言，我們的客戶擁有 2 種以上的產品，而且這種情況有所改善。事實上，現在擁有 2+ 產品的客戶數量已經從幾乎 2021 年的 40 多歲增加到現在的 40 多歲。所以我們已經看到更多的採用。

But what's interesting is that especially we're focused on strategic and enterprise customers, that multi-product option is already 3 plus. So our biggest focus in our sales channels are actually showing that we can easily move our customers 3 plus. And now we're translating that to the enterprise and the small inside customers as well. So we do have a lot of opportunity, and it continues to improve. But as we also said -- as we are improving that, we also added 5 million new students. So it's kind of -- that's changing the denominator as well.

但有趣的是，特別是我們專注於戰略和企業客戶，多產品選項已經超過 3 個。因此，我們對銷售渠道的最大關注實際上是表明我們可以輕鬆地讓我們的客戶 3 加。現在我們正在將其轉化為企業和小型內部客戶。所以我們確實有很多機會，而且它還在不斷改進。但正如我們所說——隨著我們不斷改進，我們還增加了 500 萬新學生。所以它有點——這也在改變分母。

Our next question comes from the line of Brian Peterson from Raymond James.

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

I'll echo my congrats on the strong quarter. So maybe 2 higher-level ones for Hardeep. But first, on the international opportunity, I kind of wanted to hone in on Africa little bit. I'd be curious what products do you think will be kind of the first to be adopted in that market? Curious about things like learning loss or compliance orientation, where you guys are really strong here in North America. But like, I guess, I would be curious if there's a narrative on point of emphasis for the initial adoption there. What would that look like as you guys build up in Africa?

我將對強勁的季度表示祝賀。所以也許 Hardeep 有 2 個更高級別的。但首先，關於國際機會，我有點想在非洲磨練一下。我很好奇您認為哪些產品會率先被該市場採用？對學習損失或合規導向等事情感到好奇，你們在北美真的很強大。但是，我想，如果有關於最初採用的重點的敘述，我會很好奇。你們在非洲建立起來會是什麼樣子？

That's a great question. And the primary -- initial adoption of 0.5 million student commitment is actually coming from our student information system and the Schoology products. So those are our 2 main products where we are basing the commitment on. We do have upsell opportunity as we expand into the data insights and to the talent products as well. So those would be future kind of a road map. But typically, when we're entering the market, those are the 2 products we are entering the market with and then having the rest of the products follow-through.

這是一個很好的問題。最初採用 50 萬學生的承諾實際上來自我們的學生信息系統和 Schoology 產品。因此，這些是我們做出承諾的兩個主要產品。隨著我們擴展到數據洞察力和人才產品，我們確實有追加銷售的機會。所以這些將是未來的路線圖。但通常情況下，當我們進入市場時，這些是我們進入市場的 2 種產品，然後讓其餘產品跟進。

Now we have seen and take example in Middle East, where we give examples of customers who are buying multiple products as well. So they're almost buying like 9 to 10 products. So we do have opportunities with these products to pretty much apply, but we initially focus on SIS and Schoology.

現在我們已經在中東看到並舉了例子，我們也舉了購買多種產品的客戶的例子。所以他們幾乎購買了 9 到 10 種產品。因此，我們確實有機會使用這些產品進行大量應用，但我們最初專注於 SIS 和 Schoology。

Great. Super clear. And a follow-up just on pricing. And I wanted to look at that maybe in some of your analytics offerings. And obviously, you had some large deals that you referenced in the call today. I'm curious, what is the variability on what some districts can pay for that? Is it -- are you able to kind of address maybe the smaller and then the larger because maybe they would have different needs? Or is that how it works? I just -- I'd love to understand the balance on a pricing perspective, just given that there may be functionally different needs.

偉大的。超級清晰。以及關於定價的後續行動。我想看看你們的一些分析產品。顯然，您在今天的電話會議中提到了一些大宗交易。我很好奇，某些地區可以為此支付的費用有何差異？是嗎 - 您是否能夠解決先小後大的問題，因為他們可能有不同的需求？或者它是如何工作的？我只是 - 我很想了解定價角度的平衡，只是因為可能存在功能上不同的需求。

Yes, this is fair Brian. So when you think about it, there are multiple analytics that we're talking about, right? You've got the core essential analytics and you have the student suspect analytics that allows you to do modeling around where the students are, what are the acts of students. We've got talent analytics, we have operational analytics and then even broader connected intelligence to bring other data.

是的，這很公平，布賴恩。所以當你考慮它時，我們正在談論多種分析，對吧？你有核心的基本分析，你有學生懷疑分析，允許你圍繞學生的位置、學生的行為進行建模。我們有人才分析，我們有運營分析，然後更廣泛的互聯智能可以帶來其他數據。

So there are multiple -- each of these products are $5 to $10 kind of price points, right, per student typically, we price it. If you're a large district or state, you're paying the lower end, you're smaller state or district, you're paying the higher end. But then as you bundle, you get an option to buy these clouds as well, which allows you to kind of take advantage of that. So we can walk through this a little bit more in our Investor Day, so you guys kind of get a clear picture.

所以有多種 - 這些產品中的每一種都是 5 到 10 美元的價格點，對，通常每個學生，我們定價。如果你是一個大的地區或州，你支付的是低端，你是較小的州或地區，你支付的是高端。但是當你捆綁時，你也可以選擇購買這些雲，這讓你可以利用它。因此，我們可以在投資者日對此進行更多介紹，這樣你們就可以清楚地了解情況。

Our next question comes from the line of Rich Hilliker from Credit Suisse.

我們的下一個問題來自瑞士信貸的 Rich Hilliker。

I wanted to circle back and talk about new persona specific cloud. Hardeep, I think, you touched a little bit on this, but I was wondering if you could more fully flesh out how you think about this really playing into your go-to-market strategy, multiproduct expansion efforts, the way the portfolio looks, feels and how customers maybe buy moving forward would love to understand your trajectory and your view there?

我想回過頭來談談新角色特定的雲。 Hardeep，我想，你稍微談到了這一點，但我想知道你是否可以更全面地充實你如何看待這真正發揮你的上市戰略、多產品擴張努力、投資組合的樣子，感覺以及客戶可能如何購買向前發展會喜歡了解你的軌跡和你在那裡的觀點嗎？

Yes. That's great question, Rich. So when I think about what we were seeing as people are buying multiple of our products, we're also seeing based on persona their likelihood to be buying multiple products at the same time. So we created these bundles on solutions of Student Cloud on personalized learning cloud for classroom, for Student Success Cloud around college readiness and the (inaudible) workforce planning. So we're creating these bundles that allows us to grow with the persona and give them the full turnkey solution for all their key problems rather than one à la carte kind of a product at a time. And that is based on how we are seeing the deals happening. It helps us kind of create more efficiencies on our side with selling and marketing.

是的。這是個好問題，里奇。因此，當我考慮人們購買我們的多種產品時所看到的情況時，我們也看到基於角色他們同時購買多種產品的可能性。因此，我們在 Student Cloud 解決方案上創建了這些捆綁包，用於課堂個性化學習雲、圍繞大學準備和（聽不清）勞動力規劃的 Student Success Cloud。因此，我們正在創建這些捆綁包，使我們能夠與角色一起成長，並為他們提供針對所有關鍵問題的完整交鑰匙解決方案，而不是一次只提供一種產品。這是基於我們如何看待交易的發生。它可以幫助我們在銷售和營銷方面提高效率。

To Eric's point about services, right? It also creates efficiency in our services to implement these things more together. So that does bring our services cost a little bit lower, right? That's why you receive some of the reflection on the services revenue, but it actually is great for the customer and great for exploration of our velocity of creating more business in our overall subscription growth.

關於 Eric 關於服務的觀點，對嗎？它還提高了我們服務的效率，以更多地一起實施這些事情。所以這確實使我們的服務成本降低了一點，對嗎？這就是為什麼你會收到一些關於服務收入的反映，但它實際上對客戶來說非常好，也非常適合探索我們在整體訂閱增長中創造更多業務的速度。

And that's how we've kind of structured this, and we are already seeing some good results. And even development and our hosting in all processes are getting optimized around these cloud rollouts.

這就是我們構建它的方式，我們已經看到了一些好的結果。甚至開發和我們在所有流程中的託管都圍繞這些雲部署進行了優化。

Excellent. Okay. That's very helpful. And then maybe just as a follow-up, the LearningNAV and ContentNAV, I think you highlighted how this really helps position you even more strongly for the $100 billion personalized learning opportunity. I was wondering if you can bring to life how this changes the average customer's path towards this vision, which I think a few years ago felt a little lofty, but now it seems like it's coming into focus. So how does this change the game for customers really striving towards personalized learning?

出色的。好的。這很有幫助。然後也許只是作為後續行動，LearningNAV 和 ContentNAV，我認為你強調了這如何真正幫助你在價值 1000 億美元的個性化學習機會中更加強大。我想知道您是否可以將這如何改變普通客戶實現這一願景的道路付諸實踐，我認為幾年前這個願景有點崇高，但現在它似乎正在成為人們關注的焦點。那麼，這如何改變真正致力於個性化學習的客戶的遊戲規則呢？

It's a great point, Rich. As we've been talking about the unique opportunity we have is because we have the biggest platform, we have the biggest -- we have the system of record. We have the system of engagement across these persona. We also have the system of intelligence with the data. We are in a unique position to provide more personalization and automation through AI to really augment the teacher in achieving this. And we've been working towards this and building all the pieces and now we are actually there and launching with this content recommendation and learning path recommendation using AI, we're actually now able to start working with the districts on creating that. We're still -- it's 1 to 2 years before we kind of pretty much harden these models and AI models to be able to really launch it fully across the North American base. But expect that over the next 2, 3 years, we actually would be in a position where we can fully have a personalized learning platform for our customer base.

這是一個很好的觀點，Rich。我們一直在談論我們擁有的獨特機會是因為我們擁有最大的平台，我們擁有最大的 - 我們擁有記錄系統。我們有跨這些角色的參與系統。我們還有帶有數據的智能係統。我們處於獨特的位置，可以通過 AI 提供更多的個性化和自動化，以真正幫助教師實現這一目標。我們一直在朝著這個方向努力並構建所有的部分，現在我們實際上已經在那裡並使用 AI 啟動了這個內容推薦和學習路徑推薦，我們實際上現在能夠開始與地區合作創建它。我們仍然——還需要 1 到 2 年的時間，我們才能大大加強這些模型和人工智能模型，以便能夠真正在北美基地全面推出它。但預計在接下來的 2、3 年內，我們實際上將能夠為我們的客戶群提供一個完全個性化的學習平台。

Our next question comes from the line of Gabriela Borges from Goldman Sachs.

我們的下一個問題來自高盛的 Gabriela Borges。

This is [Kelly Valenti] on for Gabriela. Congrats on the continued business momentum. So what are customers telling you or kind of the biggest gaps in the PowerSchool portfolio that you guys have yet to address? And can you share how these discussions are informing your organic product road map and maybe M&A priorities?

這是 [Kelly Valenti] 替補加布里埃拉。祝賀持續的業務勢頭。那麼，客戶告訴您什麼，或者你們尚未解決的 PowerSchool 產品組合中最大的差距是什麼？您能否分享這些討論如何為您的有機產品路線圖和併購優先事項提供信息？

Look, as we do -- we've been talking about that. We've got all the mission-critical pieces. The most core companies, if you ask a district, we actually have that in the platform. But we do see continued expansion opportunities on other adjacencies as well as international and tuck-ins around technology or for the functionality. .

看，就像我們一樣——我們一直在談論這個。我們已經獲得了所有關鍵任務部分。最核心的公司，如果你問一個地區，我們實際上在平台上有那個。但我們確實看到了其他鄰接領域的持續擴張機會，以及圍繞技術或功能的國際和投資機會。 .

And we've been doing that, things like communication curriculum. We do have a road map around further expansion, especially around analytics on Unified parent experiences and stuff like that with payments to be another area of expansion. Those things will both coming through organic plus M&A road map that allow us to continue expanding the platform.

我們一直在這樣做，比如溝通課程。我們確實有一個關於進一步擴展的路線圖，特別是圍繞統一父母體驗的分析以及諸如支付之類的東西是另一個擴展領域。這些東西都將通過有機加併購路線圖實現，使我們能夠繼續擴展平台。

That makes sense. And then as a follow-up, where is Schoology continuing to gain share? Are you seeing any changes in competition or any noticeable trends with the types of deals you're seeing in the space? My impression, it's a little bit more competitive than the other learning management system, so it would be good to get some color.

這就說得通了。然後作為後續行動，Schoology 在哪裡繼續獲得份額？您是否看到競爭發生任何變化或您在該領域看到的交易類型有任何明顯趨勢？我的印像是，它比其他的學習管理系統更具競爭力，所以最好能有點顏色。

Yes. I think it's basically, I would call it, us and the Canvas are the 2 strong LMS platforms, and then you've got Google Classroom, which district wants to have a low-end kind of collaboration than they have a Google Classroom. So we typically see Google Classroom customers as well as 25% market which doesn't use anything to be where we get it. We added about 1.5 million students plus in Schoology this year, and we are -- that's what was happening before pandemic. In pandemic, we did add almost 4 million plus students. But we're kind of back to prepandemic levels of about 1 million to 1.5 million students.

是的。我認為基本上，我會這樣稱呼它，我們和 Canvas 是兩個強大的 LMS 平台，然後你有了 Google Classroom，與 Google Classroom 相比，哪個地區希望進行低端協作。因此，我們通常會看到 Google Classroom 客戶以及 25% 的市場，這些市場不使用任何東西來成為我們獲得它的地方。今年我們在學校增加了大約 150 萬學生，而且我們是——這就是大流行之前發生的事情。在大流行期間，我們確實增加了近 400 萬多名學生。但我們有點回到大流行前的水平，大約有 100 萬到 150 萬學生。

Our next question comes from the line of Karl Keirstead from UBS.

我們的下一個問題來自瑞銀的 Karl Keirstead。

Okay. Great. Maybe 2 for me. Eric, you pinned the Q1 revenues coming in a little bit light on the delay of a very large deal, elaborating how one-off was that and when you expect the deal to close?

好的。偉大的。也許2對我來說。埃里克，你將第一季度的收入歸因於一筆非常大的交易的延遲，詳細說明了這是一次性的，以及你預計交易何時結束？

Yes. So the deal should be closing any time now. It's a rather large deal that Hardeep had mentioned in his prepared remarks. And yes -- so it's just -- it's a matter of days away from actually getting closed. Now I will tell you, I mean, a lot of times when we have these deals that we're very confident we're going to win, we do a lot -- we'll do to the extent we can, we'll do some upfront work to help kind of accelerate that. But I can tell you the majority of the impact that we're seeing in Q1 will start picking that up in the out quarters when this big deal does sign.

是的。所以這筆交易現在應該隨時結束。這是哈迪普在他準備好的發言中提到的一筆相當大的交易。是的 - 所以它只是 - 距離實際關閉只有幾天的時間。現在我要告訴你，我的意思是，很多時候當我們有這些交易時，我們非常有信心我們會贏，我們做了很多——我們會盡我們所能，我們會做一些前期工作來幫助加速。但我可以告訴你，我們在第一季度看到的大部分影響將在這筆大交易簽署後的幾個季度開始顯現。

Got it. Okay. And then secondly, Eric, as we try to model our cash flow I do notice in 2022, your EBITDA margins were up about 220 bps year-over-year, but your operating cash flow margins were down 190 bps. So there was a big divergence there. So when we're modeling 2023 operating cash flow, should it be a little bit more correlated to the pace of the EBITDA margin expansion? Or is there something funky in 2023 that you would advise, we keep in mind as we model out cash flow?

知道了。好的。其次，埃里克，當我們嘗試對現金流建模時，我確實注意到 2022 年，您的 EBITDA 利潤率同比增長了約 220 個基點，但您的經營現金流利潤率下降了 190 個基點。所以那裡有很大的分歧。因此，當我們為 2023 年的運營現金流建模時，它是否應該與 EBITDA 利潤率擴張的步伐更加相關？或者在 2023 年有什麼時髦的建議，我們在模擬現金流時會牢記在心？

Yes. So I mean, we historically do not provide cash flow guidance, but what I would just say, Karl, if you're looking at operating cash flows, what I would encourage you to look at is look at 2022 dynamics as an indicator for 2023. 2021, obviously, we had a couple items in there that would have been a little bit more favorable. So I would say look at the dynamics in 2022 as you're kind of going through some of your assumptions. And we're happy to work offline with you in terms of some of your modeling assumptions, if that's helpful as well.

是的。所以我的意思是，我們歷來不提供現金流量指導，但我想說的是，卡爾，如果你正在研究運營現金流量，我鼓勵你關注的是將 2022 年的動態作為 2023 年的指標. 2021 年，顯然，我們在那裡有幾件商品會更優惠一些。所以我想說看看 2022 年的動態，因為你正在經歷一些假設。我們很樂意根據您的一些建模假設與您離線工作，如果這也有幫助的話。

Okay. That's helpful. And congrats on the margin performance this past year.

好的。這很有幫助。並祝賀過去一年的利潤率表現。

Thank you.

謝謝。

Our next question comes from the line of Ryan MacDonald from Needham.

我們的下一個問題來自 Needham 的 Ryan MacDonald。

Congrats on a nice quarter. Hardeep, I wanted to get your sense of the funding dynamics that you're seeing within the core budgets across the states. We're seeing more governor's budgets now in state addresses talk about, obviously, sustained support for K-12, but we're also seeing sort of an increase in tax cuts that are being proposed as well, which could have an impact on state budgets. So I'm just curious, as you think about the 2023 to 2024 school year upcoming and what that budget cycle could look like, how you're feeling about the pipeline and potential opportunities there?

祝賀一個不錯的季度。 Hardeep，我想讓你了解你在各州的核心預算中看到的資金動態。我們現在看到更多的州長預算在州地址中談論，顯然，對 K-12 的持續支持，但我們也看到正在提議的減稅措施有所增加，這可能會對州產生影響預算。所以我很好奇，當你想到即將到來的 2023 到 2024 學年以及預算週期會是什麼樣子時，你對管道和那裡的潛在機會有何看法？

What we think is still the budget situation to be pretty strong and healthy. As you said, the mostly K-12 budgets are protected from most of the federal and the state level stuff and especially with the additional federal discretionary spend with ESSER that's providing some of the cushion or the concern if anybody has about it, if there is any pressure on the state's tax based budget allocation. So -- and one of the beauties that what we do is mission-critical, right? So -- and typically, it actually helps districts save money. So a lot of time actually, even if the budget gets tied, they actually do adopt our solution because that's the only way for them to have a sustained execution.

我們認為預算狀況仍然非常強勁和健康。正如您所說，大多數 K-12 預算都受到大多數聯邦和州級預算的保護，尤其是與 ESSER 的額外聯邦可自由支配支出提供了一些緩衝或擔憂，如果有人對此有疑問，如果有的話對國家基於稅收的預算分配的任何壓力。所以 - 我們所做的事情之一是關鍵任務，對吧？所以——通常情況下，它實際上可以幫助地區省錢。所以實際上很多時候，即使預算有限，他們實際上還是採用了我們的解決方案，因為這是他們持續執行的唯一途徑。

Super helpful. Maybe just a quick follow-up on that. One of the main priorities that keeps getting cited at the state level is mental health services within K-12. So I'm curious what impact you think this has on the demand for the Kickboard offering and sort of whether or not you think this may be increased focus heading into '23 here creates a potential inflection point in the adoption cycle of that offering.

超級有幫助。也許只是對此的快速跟進。在州一級不斷被引用的主要優先事項之一是 K-12 中的心理健康服務。所以我很好奇你認為這對 Kickboard 產品的需求有什麼影響，以及你是否認為這可能會增加對 23 年的關注，這會在該產品的採用周期中創造一個潛在的拐點。

Yes, there is a lot of focus on social and emotional support. And in fact, a lot of that is also what's driving some of the analytics as well because part of the analytics is to understand the whole child, not just the academic achievement but also bringing the SEL data. And we definitely see that SEL to be focused in our data opportunities, our behavior opportunities as well as upgrading their SIS because that also helps them get a better understanding and communication aspects with the parents and the students.

是的，很多人都關注社會和情感支持。事實上，其中很多也是推動某些分析的原因，因為部分分析是為了了解整個孩子，而不僅僅是學業成績，還帶來了 SEL 數據。我們肯定會看到 SEL 將重點放在我們的數據機會、我們的行為機會以及升級他們的 SIS 上，因為這也有助於他們更好地理解和與家長和學生進行溝通。

Our next question comes from the line of Brett Knoblauch from Cantor Fitzgerald.

我們的下一個問題來自 Cantor Fitzgerald 的 Brett Knoblauch。

Congrats on the quarter. I guess, now that you guys have reached your maybe long-term net debt leverage target as 2023 expected probably to be a bigger free cash flow year. Would you consider using some of that incremental cash to pay down debt given kind of interest expense has gone up a bit? Or is M&A your kind of primary focus there?

祝賀這個季度。我想，既然你們已經達到了可能的長期淨債務槓桿目標，因為預計 2023 年可能會是一個更大的自由現金流年。考慮到利息支出有所增加，您是否會考慮使用一些增量現金來償還債務？還是併購是您的主要關注點？

Yes, Brett, it's Eric. I appreciate the question. So absolutely, look, as you heard from Hardeep, we are going to continue to be very opportunistic around M&A. And M&A remains a top priority. So -- we feel that that's a more likely use of the cash versus paying down the debt. We're going to continue to work down the debt in its normal schedule terms, but we feel very optimistic around the M&A opportunities and are still very active in the market.

是的，布雷特，是埃里克。我很欣賞這個問題。所以絕對，看，正如你從 Hardeep 那裡聽到的那樣，我們將繼續在併購方面非常投機。併購仍然是重中之重。所以 - 我們認為這更有可能使用現金而不是償還債務。我們將繼續按正常時間表條款減少債務，但我們對併購機會感到非常樂觀，並且在市場上仍然非常活躍。

Perfect. And maybe just one follow-up. In terms of that large deal like a pushback, did you include that in year-end ARR or no?

完美的。也許只有一次跟進。就像推遲這樣的大筆交易而言，您是否將其包括在年終 ARR 中？

No.

不。

Thank you. Ladies and gentlemen, we have reached the end of the question-and-answer session, and I would like to turn the conference over to Hardeep Gulati, CEO, for closing comments.

謝謝。女士們，先生們，我們的問答環節已經結束，我想將會議轉交給首席執行官 Hardeep Gulati 發表閉幕評論。

Thank you. Sorry for running a few minutes late. A lot of great questions. As you can see, we had a phenomenal good fourth quarter, but what's exciting is we have poised for another year of double-digit revenue growth and even further margin expansion. We operate in a market that is really large, growing and durable.

謝謝。抱歉遲到了幾分鐘。很多很棒的問題。如您所見，我們在第四季度表現出色，但令人興奮的是，我們已經準備好迎接又一年的兩位數收入增長，甚至進一步擴大利潤率。我們在一個真正龐大、不斷增長和持久的市場中運營。

And with our sticky mission-critical products, we are kind of really essential to the school operations. So we really feel excited about our ability to continue to perform. And as a player who -- only player who has the most comprehensive platform, we are really poised to meet the evolving needs of K-12 ecosystem.

憑藉我們粘性的關鍵任務產品，我們對學校的運營來說確實是必不可少的。因此，我們對繼續執行的能力感到非常興奮。作為一個玩家——唯一擁有最全面平台的玩家，我們真的準備好滿足 K-12 生態系統不斷變化的需求。

I want to thank each one of you for joining on our earnings call as well as our employees and customers for their support. We are excited about all the opportunities ahead of expansion as well, and we'll keep you guys updated as we progress on them throughout the year. Thank you again for your time for joining us today.

我要感謝你們每一位參加我們的財報電話會議，以及我們的員工和客戶的支持。我們也對擴張之前的所有機會感到興奮，並且我們會在全年的進展中讓你們了解最新情況。再次感謝您今天抽空加入我們。

Thank you. The conference of PowerSchool has now concluded. Thank you for your participation. You may now disconnect your lines.

謝謝。 PowerSchool 會議現已結束。感謝您的參與。您現在可以斷開線路。