PowerSchool Holdings Inc (PWSC) 2023 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the PowerSchool First Quarter 2023 Earnings Call.

女士們先生們，下午好，歡迎來到 PowerSchool 2023 年第一季度財報電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded. I would now like to turn the call over to Shane Harrison, Senior Vice President, Investor Relations. Please go ahead.

提醒一下，這次會議正在錄製中。我現在想把電話轉給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 First Quarter Ended March 31, 2023.

謝謝你，運營商。歡迎大家參加 PowerSchool 截至 2023 年 3 月 31 日的第一季度收益電話會議。

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. On the call today, we have PowerSchool's CEO, Hardeep Gulati; and CFO, Eric Shander.

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，伴隨著我們在這裡的評論。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。

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結果相關的陳述，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 to the GAAP financial information is provided in the corresponding press release and results presentation, which are both posted on PowerSchool's investor website at investors.powerschool.com.

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 財務信息與 GAAP 財務信息之間的定義和調節，在相應的新聞稿和結果演示中提供，它們均發佈在 PowerSchool 的投資者網站 investors.powerschool.com 上。

A replay of this call will also be posted to the same website.

此通話的重播也將發佈到同一網站。

Let me now turn the call over to Hardeep.

現在讓我把電話轉給 Hardeep。

Thank you, Shane, and thank you, everyone, for joining us today.

謝謝你，Shane，也謝謝大家今天加入我們。

Our 2023 is off to a great start. In Q1, we continued to grow our ARR 10% year-over-year and significantly expanded our adjusted EBITDA margins. We also won a record amount of new logo bookings, saw continued large deal demand from districts and state level opportunities, and made progress on our international expansion.

我們的 2023 年有了一個良好的開端。在第一季度，我們的 ARR 同比繼續增長 10%，並顯著擴大了調整後的 EBITDA 利潤率。我們還贏得了創紀錄數量的新徽標預訂，看到了來自地區和州級機會的持續大量交易需求，並在我們的國際擴張方面取得了進展。

Q1 results are summarized on Slide 4. First quarter revenue reached $159 million with subscription and support revenue growing 9% to $141 million. Our adjusted EBITDA grew 16% to $49 million, representing a 31% margin, an expansion of nearly 3 percentage points year-over-year. Net revenue retention remained strong at 109.1%, increasing 240 basis points year-over-year, helping drive ARR to $612 million.

幻燈片 4 總結了第一季度的結果。第一季度收入達到 1.59 億美元，訂閱和支持收入增長 9% 至 1.41 億美元。我們調整後的 EBITDA 增長 16% 至 4900 萬美元，利潤率為 31%，同比增長近 3 個百分點。淨收入保留率保持強勁，達到 109.1%，同比增長 240 個基點，幫助推動 ARR 達到 6.12 億美元。

As we have shared in our previous earning calls, there are 4 key foundations to our continued success. Our business resilience, our differentiated platform, our growth upside from further expansion, and our financial durability. I'd like to share our Q1 progress in these 4 key foundations.

正如我們在之前的財報電話會議中所分享的那樣，我們的持續成功有 4 個關鍵基礎。我們的業務彈性、我們的差異化平台、我們進一步擴張帶來的增長優勢以及我們的財務可持續性。我想分享我們在這 4 個關鍵基礎上的第一季度進展。

Starting with Slide 5. First is our business resiliency. This resiliency is grounded in sticky mission-critical products that are demanded by a durable market that features robust, multi-sourced budgets that are largely insulated from macroeconomic conditions. This market durability was proven again in the first quarter, where we saw increased demand and strong funding of our technology with record new logo bookings.

從幻燈片 5 開始。首先是我們的業務彈性。這種彈性基於粘性關鍵任務產品，這些產品是持久市場所需要的，該市場具有強大的多源預算，在很大程度上不受宏觀經濟條件的影響。這種市場持久性在第一季度再次得到證明，我們看到需求增加和對我們技術的強大資金支持以及創紀錄的新徽標預訂。

One of our exciting wins was our largest ever deal, an $11 million plus bookings from Puerto Rico Department of Education for digitizing their entire K-12 infrastructure, leveraging our science and enrollment solutions across the territory, supporting over 250,000-plus students.

我們激動人心的勝利之一是我們有史以來最大的一筆交易，即來自波多黎各教育部的 1100 萬美元以上的預訂，用於將其整個 K-12 基礎設施數字化，利用我們在該地區的科學和招生解決方案，為超過 250,000 名學生提供支持。

We continue to see strong demand for our core student information system product, further expanding our clear market leadership. On a trailing 12-month basis, SIS represents approximately 33% of our total new and cross-sell bookings. While these deals do have longer implementation cycles, they are very strategic as they increase our cross-sell success and TAM significantly.

我們繼續看到對我們的核心學生信息系統產品的強勁需求，進一步擴大了我們明確的市場領導地位。在過去 12 個月的基礎上，SIS 約占我們新預訂和交叉銷售預訂總數的 33%。雖然這些交易確實有更長的實施週期，但它們非常具有戰略意義，因為它們顯著提高了我們的交叉銷售成功率和 TAM。

The market tailwinds that we have shared in the past, which include the increased need for digital transformation, enhance data security, operational efficiency, and data insights continue to drive demand for our solutions. In Q1, in addition to the strong new logo activity, we also saw the number of cross-sell deals increase 15% year-over-year. As we roll out our persona-specific multiproduct cloud bundles that will further support the cost and momentum we are seeing.

我們過去分享的市場順風，包括對數字化轉型、增強數據安全性、運營效率和數據洞察的需求增加，繼續推動對我們解決方案的需求。在第一季度，除了強勁的新標識活動外，我們還看到交叉銷售交易的數量同比增長了 15%。隨著我們推出特定於角色的多產品雲捆綁包，這將進一步支持我們所看到的成本和勢頭。

Additionally, our deal velocity continues to be strong. We saw more than 50 transactions above $10,000 or at least one product within each of our 6 cloud bundles.

此外，我們的交易速度繼續保持強勁。我們看到 50 多筆交易超過 10,000 美元，或者我們的 6 個雲捆綁包中的每一個都至少有一個產品。

Additionally, our pipeline grew over 40% year-over-year, which gives us confidence about our business outlook. We are reiterating our full year 2023 guidance, which Eric will discuss in more detail.

此外，我們的管道同比增長超過 40%，這讓我們對我們的業務前景充滿信心。我們重申我們的 2023 年全年指導方針，Eric 將對此進行更詳細的討論。

Moving to Slide 6. Our differentiated platform of K-12 vertical-specific solutions is the second key foundation of our strategy and success. There are 3 elements of our differentiation. First, we have the most comprehensive and diverse platform in the market to be able to meet the evolving needs of the entire K-12 ecosystem.

轉到幻燈片 6。我們的 K-12 垂直特定解決方案的差異化平台是我們戰略和成功的第二個關鍵基礎。我們的差異化有 3 個要素。首先，我們擁有市場上最全面和多樣化的平台，能夠滿足整個 K-12 生態系統不斷變化的需求。

Second, we have the most unified platform to provide an integrated experience for our key personas, students, teachers, parents and administrators. Third is our ability to deliver holistic insights across all data aspects to improve education outcomes.

其次，我們擁有最統一的平台，可以為我們的關鍵人物、學生、教師、家長和管理人員提供綜合體驗。第三，我們有能力在所有數據方面提供全面的見解，以改善教育成果。

In Q1, we continued to see broad demand across our diversified platform with SIS, talent and our data-centric products experiencing the highest growth in our portfolio. Our data-centric solutions ARR grew over 70% year-over-year. One of our data products was purchased in 6 of the top 10 cross-sell deals in Q1, showing the growing importance of districts harnessing and leveraging their data to improve their outcomes.

在第一季度，我們繼續看到對我們多元化平台的廣泛需求，SIS、人才和我們以數據為中心的產品在我們的產品組合中經歷了最高的增長。我們以數據為中心的解決方案 ARR 同比增長超過 70%。我們的一個數據產品在第一季度的前 10 大交叉銷售交易中有 6 筆被購買，這表明地區利用和利用他們的數據來改善他們的結果越來越重要。

One good example is the Weber School District in Utah, which added SIS, Unified Insights and Communication products to their long-time usage of our ERP and talent solutions. We're also very excited by the success we are seeing with our Connected Intelligence solution, the first fully managed data as a service platform for K-12 schools and government agencies that provide a centralized data lake with real-time access and insights of education data across all systems, PowerSchool or third party, within or outside the district, so they can uncover deep insights and improve their decision-making in enhancing their operations and their student outcomes.

一個很好的例子是猶他州的韋伯學區，他們在長期使用我們的 ERP 和人才解決方案的基礎上增加了 SIS、Unified Insights 和 Communication 產品。我們也對 Connected Intelligence 解決方案所取得的成功感到非常興奮，這是第一個完全託管的數據即服務平台，適用於 K-12 學校和政府機構，可提供具有實時訪問和教育洞察力的集中式數據湖學區內外所有系統、PowerSchool 或第三方的數據，這樣他們就可以發現深刻的見解並改進他們的決策，以增強他們的運營和學生的學習成果。

In the quarter, we saw several Connected Intelligence cross-sell wins in all segments of the market, like public school districts, such as Des Moines Public School District and Fairfax County Public School District, private charter school organizations like Epic Charter schools and even private schools like Challenger School Foundation. As schools evaluate the support, they have implemented to address learning loss, the teacher shortage and student life and workforce readiness, data analytics is a rising priority for schools and government leaders to break data silos and leverage the whole child insights for surgical intervention strategies and supporting improved education outcomes for every child.

在本季度，我們在市場的各個領域都看到了幾個互聯智能交叉銷售的勝利，比如公立學區，如得梅因公立學區和費爾法克斯縣公立學區，私立特許學校組織，如史詩特許學校，甚至私立像挑戰者學校基金會這樣的學校。在學校評估支持時，他們已經實施解決學習損失、教師短缺以及學生生活和勞動力準備問題，數據分析成為學校和政府領導打破數據孤島並利用整個兒童洞察力製定手術干預策略和支持改善每個孩子的教育成果。

We recently announced a partnership with Ellucian, the leading higher education operation software provider that would provide a very unique opportunity to bring K-12 data together with higher education data to enable state and local education agencies to build powerful longitudinal data systems across the student life cycle to optimize educational and career success.

我們最近宣布與領先的高等教育運營軟件提供商 Ellucian 建立合作夥伴關係，這將提供一個非常獨特的機會，將 K-12 數據與高等教育數據結合在一起，使州和地方教育機構能夠在整個學生生活中建立強大的縱向數據系統優化教育和職業成功的周期。

These new data solutions successes demonstrate our ability to grow our $3 billion cross-sell TAM that exists within our existing 15,000 customers and opens up new markets for our solutions.

這些新數據解決方案的成功證明了我們有能力發展現有 15,000 名客戶中 30 億美元的交叉銷售 TAM，並為我們的解決方案開闢新市場。

As shown in Slide 7, our third key foundation is our growth opportunity with further expansion of our platform in markets. Each providing support and upside to long-term double-digit growth runway we see in our core markets today.

如幻燈片 7 所示，我們的第三個關鍵基礎是我們的增長機會，即我們的平台在市場上的進一步擴展。每個都為我們今天在核心市場看到的長期兩位數增長跑道提供支持和上行空間。

Starting with platform expansion. You've all heard the growing conversation on the AI inflection point in many industries. We are very excited about providing embedded AI capabilities into our solutions, which leveraged in an integrated and contextual way, will provide enormous opportunities to support teachers and save them valuable time. To appreciate and personalize instruction for students and help efficiently scale school operations.

從平台擴展開始。你們都聽說過許多行業關於 AI 拐點的討論越來越多。我們非常高興能夠在我們的解決方案中提供嵌入式 AI 功能，這些功能以集成和上下文的方式加以利用，將提供巨大的機會來支持教師並為他們節省寶貴的時間。欣賞和個性化對學生的指導，並幫助有效地擴大學校運營規模。

As we have shared previously, we have already implemented AI into several of our solutions, already being leveraged by many of our customers today. Our Student Success Cloud MTSS solution uses AI to help teachers more efficiently predict and identify students, who may require additional support, so the appropriate interventions can be implemented. AI is also a key element of Connected Intelligence offering, providing customers as a data-as-a-service platform to create their own AI and machine learning models. With an estimated 80% of data scientists time spent gathering and prepping data, our Connected Intelligence platform brings together data securely in a near real-time way, eliminating the biggest burden of AI projects and providing AI tools as well as build and deploy functionality.

正如我們之前分享的那樣，我們已經將 AI 實施到我們的幾個解決方案中，今天已經被我們的許多客戶所利用。我們的 Student Success Cloud MTSS 解決方案使用 AI 幫助教師更有效地預測和識別可能需要額外支持的學生，以便實施適當的干預措施。 AI 也是 Connected Intelligence 產品的關鍵要素，為客戶提供數據即服務平台，以創建他們自己的 AI 和機器學習模型。估計有 80% 的數據科學家將時間花在收集和準備數據上，我們的互聯智能平台以近乎實時的方式安全地匯集數據，消除了 AI 項目的最大負擔，並提供 AI 工具以及構建和部署功能。

We are very excited about the launch in the last quarter of our new products, LearningNAV and ContentNAV, both part of our personalized learning cloud. These products utilize AI to assess student mastery of subjects and automatically recommend content specific to their needs, creating a personalized learning journey. These products are key milestones in the push towards a holistic, integrated and highly contextualized personalized learning solution, a market opportunity, we estimate to be over $100 billion.

我們對上個季度推出的新產品 LearningNAV 和 ContentNAV 感到非常興奮，它們都是我們個性化學習雲的一部分。這些產品利用人工智能來評估學生對學科的掌握程度，並自動推薦符合他們需求的內容，打造個性化的學習之旅。這些產品是推動全面、集成和高度情境化的個性化學習解決方案的關鍵里程碑，這是一個市場機會，我們估計超過 1000 億美元。

We are also embedding generative AI models to support educators across our solutions. For example, we are launching automated content creation based on individualized student needs later this year. Other use cases like supporting administrators in curriculum planning and the launch of our PowerSchool Personalized Homework Solution next year will be further supported by generative AI.

我們還嵌入了生成式 AI 模型，以在我們的解決方案中為教育工作者提供支持。例如，我們將在今年晚些時候推出基於個性化學生需求的自動化內容創建。生成式 AI 將進一步支持其他用例，例如支持管理員進行課程規劃和明年推出我們的 PowerSchool 個性化家庭作業解決方案。

While other industries and services may see disruption from generative AI, we believe embedding generative AI into our solution creates additional TAM and market expansion opportunities to enhance our growth. We plan to showcase our progress on these capabilities at our Edge Conference and Investor Day in July. Additionally, we would like to share our progress on the market expansion as we continue to make strides in our international go-to-market.

雖然其他行業和服務可能會受到生成 AI 的破壞，但我們相信將生成 AI 嵌入到我們的解決方案中會創造更多的 TAM 和市場擴展機會，以促進我們的增長。我們計劃在 7 月的邊緣會議和投資者日展示我們在這些功能方面的進展。此外，隨著我們繼續在國際市場上取得長足進步，我們想分享我們在市場擴張方面取得的進展。

We announced late last year our first sales and support office outside of North America in Dubai, which will open this summer. We just announced a new channel partner Board Middle East, BME, that will strengthen our Middle East presence by reselling, and supporting our platform with their local and established team of education technology specialists. BME will augment our reach to millions of additional students in strategic markets of Saudi Arabia, Kuwait and Qatar. And BME has committed to delivering PowerSchool solution to 750,000-plus students in the first year.

去年年底，我們在迪拜宣布了北美以外的第一個銷售和支持辦事處，該辦事處將於今年夏天開業。我們剛剛宣布了一個新的渠道合作夥伴 Board Middle East，BME，它將通過轉售和支持我們的平台與當地和既定的教育技術專家團隊一起加強我們在中東的影響力。 BME 將擴大我們在沙特阿拉伯、科威特和卡塔爾戰略市場的數百萬額外學生的影響力。 BME 已承諾在第一年向 750,000 多名學生提供 PowerSchool 解決方案。

We've also recently announced our proprietary, innovative localization framework, which is a tool that enables our partners and customers to localize and tailor PowerSchool solutions for their specific country and region. This localization framework enables key user experience features such as right to left views, multilingual translation and localized extension and reporting. The extensibility of our tech stack is a very strong differentiator and uniquely supports our ability to quickly expand outside of North America, leveraging different local partners.

我們最近還宣布了我們專有的創新本地化框架，該工具使我們的合作夥伴和客戶能夠針對其特定國家和地區本地化和定制 PowerSchool 解決方案。此本地化框架支持關鍵的用戶體驗功能，例如從右到左的視圖、多語言翻譯以及本地化擴展和報告。我們技術堆棧的可擴展性是一個非常強大的差異化因素，並且獨特地支持我們利用不同的本地合作夥伴快速擴展到北美以外的能力。

The steady nature of our customer base and our differentiated platform, combined with our operational execution capabilities to create a highly durable financial model, which is our fourth key foundation.

我們客戶群的穩定性和我們差異化的平台，結合我們的運營執行能力，創造了一個高度持久的財務模型，這是我們的第四個關鍵基礎。

On Slide 8, you will see that we have created an enviable business model with meaningful operating leverage as demonstrated by the increasing profitability as you move down the P&L from adjusted gross profit to adjusted EPS. We feel this operating leverage is sustainable and will create further margin improvement as showcased by our outperformance on adjusted EBITDA this quarter.

在幻燈片 8 上，您將看到我們已經創建了一個令人羨慕的商業模式，具有有意義的經營槓桿，隨著您將 P&L 從調整後的毛利潤下移到調整後的每股收益，盈利能力的增加就證明了這一點。我們認為這種經營槓桿是可持續的，並將進一步提高利潤率，正如我們本季度調整後 EBITDA 的出色表現所展示的那樣。

I will let Eric speak to the financials for the quarter and the durability of our financial model. Eric?

我會讓 Eric 談談本季度的財務狀況和我們財務模型的持久性。埃里克？

Thank you, Hardeep. We kicked off 2023 with a strong quarter of continued execution, reflecting balanced growth across our platform as our mission-critical products deliver on the key market needs across the K-12 ecosystem.

謝謝你，哈迪普。我們在 2023 年以強勁的季度持續執行拉開了序幕，反映了我們整個平台的平衡增長，因為我們的關鍵任務產品滿足了整個 K-12 生態系統的關鍵市場需求。

As summarized on Slide 9, first quarter total revenue came in at $159 million representing a 7% year-over-year increase, and in line with the guidance range we provided on our last earnings call. Subscription and support revenue grew 9% year-over-year to $141 million and accounted for 88% of total revenue in the quarter. As our business grows, we expect to see an increase in larger strategic deals, which may impact the variability of our financials from 1 quarter to the next.

正如幻燈片 9 總結的那樣，第一季度總收入為 1.59 億美元，同比增長 7%，符合我們在上次財報電話會議上提供的指導範圍。訂閱和支持收入同比增長 9% 至 1.41 億美元，佔本季度總收入的 88%。隨著我們業務的增長，我們預計會看到更大的戰略交易增加，這可能會影響我們第一季度到下一季度財務狀況的可變性。

As we announced in an 8-K filing earlier this quarter, we are thrilled to have won the Puerto Rico Department of Education deal, which was signed on February 27. This large deal represents $11 million in total value, consisting of $3 million of subscription and support revenue, approximately $3 million of services revenue, and $5 million of license and other revenue. We are anticipating customer acceptance of this large strategic implementation to occur over the summer months, which is when the subscription and support revenue will start and the majority of the services activities to occur.

正如我們在本季度早些時候的 8-K 文件中宣布的那樣，我們很高興贏得了波多黎各教育部的交易，該交易於 2 月 27 日簽署。這筆大交易的總價值為 1100 萬美元，其中包括 300 萬美元的訂閱費和支持收入，大約 300 萬美元的服務收入，以及 500 萬美元的許可和其他收入。我們預計客戶會在夏季接受這一大型戰略實施，屆時訂閱和支持收入將開始，大部分服務活動也將開始。

Revenue from our Services business totaled $16 million in the quarter, representing a slight increase over the prior year. As we mentioned previously, Services revenue growth rates will fluctuate quarter-to-quarter due to the variability that comes with large deal wins, such as Puerto Rico, Alabama, LA unified and Stride. We also continue to drive the efficiency and velocity of our implementations, which increases the time to value for our customers.

我們服務業務的收入在本季度總計 1600 萬美元，比上年略有增長。正如我們之前提到的，由於波多黎各、阿拉巴馬州、洛杉磯統一和 Stride 等大筆交易帶來的可變性，服務收入增長率將按季度波動。我們還繼續提高實施的效率和速度，從而縮短為客戶創造價值的時間。

Revenue from license and other, which relates mainly to our third-party revenue, totaled $2 million for the quarter. And as mentioned in previous earnings calls, this is our smallest and least strategic revenue stream that is highly variable on a quarterly basis.

本季度主要與我們的第三方收入相關的許可和其他收入總計 200 萬美元。正如之前的財報電話會議所述，這是我們最小且戰略性最低的收入流，每個季度變化很大。

We ended the quarter with an annual recurring revenue balance of $612 million, representing a 10% increase over the same time period last year. This strong performance was driven primarily by continued strength in cross-selling activity and higher new logo bookings.

本季度結束時，我們的年度經常性收入餘額為 6.12 億美元，比去年同期增長 10%。這種強勁的表現主要是由交叉銷售活動的持續強勁和更高的新標識預訂推動的。

Our net revenue retention rate came in at 109.1%, up 240 basis points year-over-year and consistent on a sequential quarterly basis. Our strong NRR performance was driven by higher trailing 12-month cross-sell momentum coupled with our typical contractual price increases.

我們的淨收入保留率為 109.1%，同比增長 240 個基點，與連續季度保持一致。我們強勁的 NRR 表現是由更高的 12 個月交叉銷售勢頭加上我們典型的合同價格上漲推動的。

Adjusted gross profit for the quarter came in at $109 million with a 68.1% margin, representing a 200 basis point year-over-year improvement, driven by improved operational scale, responsible hiring and a continued focus on process efficiencies.

本季度調整後的毛利潤為 1.09 億美元，利潤率為 68.1%，同比增長 200 個基點，這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。

Moving to the first quarter operating expenses. Non-GAAP research and development expense came in at $20 million, representing 12.5% of revenue compared with 15.7% in the same time period last year. This 320 basis point reduction in adjusted R&D expense as a percentage of revenue reflects the efficiency and improved cost profile of our R&D model, while still investing in our key strategic innovation priorities.

轉到第一季度的運營費用。非美國通用會計準則研發費用為 2000 萬美元，佔收入的 12.5%，而去年同期為 15.7%。調整後的研發費用佔收入的百分比減少了 320 個基點，反映了我們研發模式的效率和成本狀況的改善，同時仍在投資於我們的關鍵戰略創新重點。

Including capitalized R&D expenses, the total invested in R&D was 18.5% of revenue compared with 21.7% last year, representing a 310 basis point improvement.

包括資本化的研發費用在內，研發總投入佔收入的18.5%，而去年為21.7%，提高了310個基點。

Non-GAAP SG&A expense totaled $39 million in the first quarter, representing 24.6% of revenue compared with $33 million or 22% of revenue in the same time period last year. The increase reflects the expenses from our Q1 in-person sales activities, as well as our continued investments that we are making in our sales function as well as our go-to-market activities, which we expect will continue to fuel our future growth.

第一季度非 GAAP SG&A 費用總計 3900 萬美元，佔收入的 24.6%，而去年同期為 3300 萬美元，佔收入的 22%。這一增長反映了我們第一季度的面對面銷售活動的費用，以及我們對銷售職能和上市活動的持續投資，我們預計這些活動將繼續推動我們未來的增長。

Our first quarter adjusted EBITDA was $49.4 million or 31% margin, exceeding the high end of our guidance range and reflects our continued commitment to margin expansion.

我們第一季度調整後的 EBITDA 為 4940 萬美元或 31% 的利潤率，超過了我們指導範圍的上限，反映了我們對擴大利潤率的持續承諾。

Non-GAAP net income in the first quarter was $0.18 per fully diluted share, up $0.02 or 13% from the $0.16 per diluted share we had in the same time period last year. Increased interest expense was a headwind of approximately $0.03 to our non-GAAP earnings per share.

第一季度非 GAAP 淨收入為每股完全攤薄收益 0.18 美元，比去年同期的每股攤薄收益 0.16 美元增加 0.02 美元或 13%。增加的利息支出對我們的非 GAAP 每股收益造成了約 0.03 美元的不利影響。

First quarter free cash flow, which is seasonally our lowest cash flow quarter given the timing of our renewals and bonus payouts, was negative $70 million, an improvement of $5 million or 7% from the same time period last year, and was driven by improved use of working capital and reduced CapEx spending.

第一季度自由現金流為負 7,000 萬美元，比去年同期增加 500 萬美元或 7%，這是受我們改善的推動使用營運資金並減少資本支出。

Moving to the balance sheet. We ended the quarter with $64 million in cash and equivalents, an increase of 173% over the same time period last year. It should be noted that typically in the first quarter, we need to utilize our cash revolver and this year, we did not need to use it due to the strength of our cash collections.

轉到資產負債表。我們在本季度末擁有 6400 萬美元的現金和等價物，比去年同期增長 173%。應該注意的是，通常在第一季度，我們需要使用我們的現金左輪手槍，而今年，由於我們的現金收集量很大，我們不需要使用它。

Net debt leverage as of the end of the quarter was 3.3x, a meaningful improvement compared with the 4.5x a year earlier.

截至本季度末，淨債務槓桿率為 3.3 倍，與去年同期的 4.5 倍相比有了顯著改善。

Now turning to our 2023 full year and second quarter financial outlook on Slide 10. For the full year 2023, we are reiterating our guidance with total revenue expected to be 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 EBITDA margin at the midpoint.

現在轉向我們在幻燈片 10 上的 2023 年全年和第二季度財務展望。對於 2023 年全年，我們重申我們的指導意見，預計總收入將在 6.88 億美元至 6.94 億美元之間，中點代表 10% 的年-同比增長率和調整後的 EBITDA 為 2.22 億美元至 2.27 億美元，中點調整後 EBITDA 利潤率為 32.5%。

For the second quarter, we expect to deliver total revenue in the range of $169 million to $174 million. This second quarter outlook factors the timing variability for the go-live of the large Puerto Rico implementation, which is expected to take place this summer. For second quarter adjusted EBITDA, we expect a range of $55 million to $57 million, representing a 32.7% margin at the midpoint.

對於第二季度，我們預計總收入將在 1.69 億美元至 1.74 億美元之間。第二季度的展望考慮了大型波多黎各實施的上線時間可變性，預計將於今年夏天進行。對於第二季度調整後的 EBITDA，我們預計範圍為 5500 萬至 5700 萬美元，中點利潤率為 32.7%。

For modeling purposes, we expect full year capital expenditures, including capitalized software, of approximately $45 million to $52 million and share-based compensation expense of approximately $68 million to $70 million. 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，我們預計全年資本支出（包括資本化軟件）約為 4500 萬至 5200 萬美元，基於股份的補償費用約為 6800 萬至 7000 萬美元。預計到年底完全攤薄後的股份將在2億至2.05億股之間。

Overall, we're pleased with the progress in the first quarter. We remain focused on growing our top line by executing on our go-to-market strategies, driving innovation in our products and exceeding our 15,000-plus customers' expectations. Our 2023 margin plans are on track, while we continue to invest in our operations, product innovation and international expansion.

總的來說，我們對第一季度的進展感到滿意。我們仍然專注於通過執行我們的上市戰略、推動我們的產品創新和超越我們 15,000 多家客戶的期望來增加我們的收入。我們的 2023 年利潤計劃正在按計劃進行，同時我們繼續投資於我們的運營、產品創新和國際擴張。

Finally, as a reminder, we will be hosting our first Investor Day on Tuesday, July 11, in Orlando, Florida in conjunction with our flagship customer event EDGE 2023. We're excited to share updates on our product road map, go-to-market strategy, international playbook, long-term financial targets and much more with the opportunity to meet top customers and learn about their journey with PowerSchool. 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 our latest thinking with all of you.

最後，作為提醒，我們將於 7 月 11 日星期二在佛羅里達州奧蘭多舉辦我們的第一個投資者日，同時舉辦我們的旗艦客戶活動 EDGE 2023。我們很高興分享我們產品路線圖的更新，前往-市場戰略、國際劇本、長期財務目標等等，還有機會與頂級客戶會面並了解他們與 PowerSchool 的旅程。這將是我們自 2020 年大流行開始以來的第一次 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我們的最新想法。

This concludes our prepared remarks. Operator, will you please open the line for Q&A.

我們準備好的發言到此結束。接線員，請您打開問答熱線。

(Operator Instructions) And our first question is from the line of Gabriela Borges with Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的加布里埃拉博爾赫斯。

This is [Kelly Valenti] on for Gabriela. First question for me is, you have a few new product enhancements around kind of the personalized learning space and recommending student-specific content and lesson plans. Can you talk a bit about what kind of type of ecosystem you're looking to create over the medium term?

這是 [Kelly Valenti] 替補加布里埃拉。我的第一個問題是，你們有一些圍繞個性化學習空間和推薦學生特定內容和課程計劃的新產品增強功能。您能談談您希望在中期創建哪種類型的生態系統嗎？

A great question. As I mentioned, we are very excited about the home personalized learning stations especially the products we have launched, really gets of our foot in the door with the broader personalized learning. The components we talked about, there are 2 parts on to that. One is the actual content, basically, where we have almost a 4 million open education resources as well as partnership with all the major content providers where we are able to provide learning object repository, so we can bring in the content.

一個很好的問題。正如我所提到的，我們對家庭個性化學習站特別是我們推出的產品感到非常興奮，隨著更廣泛的個性化學習，我們真正踏上了大門。我們談到的組件有 2 個部分。一是實際內容，基本上，我們擁有近 400 萬個開放教育資源，並與所有主要內容提供商建立合作夥伴關係，我們能夠提供學習對象存儲庫，因此我們可以引入內容。

One of the components I talked about in the prepared remarks is that we're actually also leveraging generative AI now to create additional content, so that allows us to even create personalized content just specific to a child. So to take an example. If they need help more in a question about ratios, it'll take the set of questions already there and create a personalized content and another question for the child.

我在準備好的評論中談到的一個組成部分是，我們現在實際上也在利用生成 AI 來創建額外的內容，這樣我們甚至可以創建專門針對兒童的個性化內容。所以舉個例子。如果他們在有關比率的問題上需要更多幫助，它將採用已有的問題集並為孩子創建個性化內容和另一個問題。

The second piece of it is the learning navigation. The beauty of that learning navigation is that it actually lets monitor the different mastery levels of every student and being able to create a personalized learning pathway for every child, depending upon their learning pathway. So every kid would actually have a different learning pathway and flow of content and the assessment to help them master their content subject.

第二部分是學習導航。學習導航的美妙之處在於它實際上可以監控每個學生的不同掌握水平，並能夠根據每個孩子的學習途徑為每個孩子創建個性化的學習途徑。所以每個孩子實際上都會有不同的學習途徑和內容流程以及幫助他們掌握內容主題的評估。

The beauty of that is, as we are taking this into the next level, as I mentioned, next year, we're launching our PowerSchool Personalized Homework, now we are able to even take and embed that integrated into the classroom lesson planned for the teacher. So teacher doesn't even have to scrape that homework, the learning navigation will provide the personalized homework for that every child. So this really changes the game in terms of amount of time teachers can save in supporting teachers, and being able to personalize the learning aspects for every child.

這樣做的美妙之處在於，正如我提到的那樣，我們正在將其提升到一個新的水平，明年，我們將推出 PowerSchool 個性化家庭作業，現在我們甚至能夠將其整合到計劃的課堂課程中老師。所以老師甚至不必抓取作業，學習導航將為每個孩子提供個性化的作業。因此，這確實改變了教師在支持教師方面可以節省的時間，並能夠為每個孩子個性化學習方面。

So we're very excited about the next innovation. And hopefully, we get to see you at the Investor Day and get to share this slide.

所以我們對下一個創新感到非常興奮。希望我們能在投資者日見到你並分享這張幻燈片。

And a quick follow-up, if I can. I recognize there's some concern around the impact of generative AI in education. How are you navigating using the technology just given the sensitivity around content in the K-12 space?

如果可以的話，快速跟進。我認識到人們對生成式 AI 對教育的影響存在一些擔憂。鑑於 K-12 空間中內容的敏感性，您如何使用該技術進行導航？

Great question. We had -- when you look at from a perspective of what we do as a software provider, right, what we are providing as a software doesn't -- it's kind of more the mission-critical of providing the environment for the student, teachers and the parents and the administrator to be able to manage the school from an operations perspective, from a collaboration perspective, from teacher support and onboarding, and substitute teacher management.

很好的問題。我們有——當你從我們作為軟件提供商所做的事情的角度來看時，對，我們提供的軟件沒有提供的東西——它更像是為學生提供環境的關鍵任務，教師、家長和行政人員能夠從運營的角度、協作的角度、教師支持和入職以及代課教師管理來管理學校。

So generative AI doesn't necessarily really impact any of our software capabilities. But what it does actually is, as we embed that and contextualize it into the different operations in our software, we actually can now provide a whole lot of additional content services and actually value out of our software for districts. So for us, it's a really exciting time because it actually now allows us to broaden our capabilities to be able to provide more turnkey experience for our school districts and use personas.

因此，生成式 AI 不一定會真正影響我們的任何軟件功能。但它實際上做的是，當我們將其嵌入並將其上下文化到我們軟件的不同操作中時，我們現在實際上可以提供大量額外的內容服務，並且實際上從我們的軟件中為地區創造價值。所以對我們來說，這是一個非常激動人心的時刻，因為它現在實際上允許我們擴大我們的能力，以便能夠為我們的學區提供更多交鑰匙體驗並使用角色。

So we are really embracing it. As I mentioned, AI has been part of our strategy long before that with the things we've already launched and now generative AI helps us to continue to enhance our products even more faster.

所以我們真的很喜歡它。正如我所提到的，人工智能早在我們已經推出的產品中就已經成為我們戰略的一部分，現在生成人工智能幫助我們繼續更快地改進我們的產品。

Congrats on the quarter and look forward to seeing you in July.

祝賀本季度，期待在 7 月見到您。

And our next question is from the line of Stephen Sheldon with William Blair.

我們的下一個問題來自斯蒂芬謝爾頓和威廉布萊爾。

First one, I just wanted to ask about maintaining the 2023 guidance. You outperformed profit expectations in the first quarter. And I think if I heard you correctly, you talked about the pipeline up 40%. So I guess what kept you from increasing the full year guide?

第一個，我只想問一下關於維持 2023 年指南的問題。您在第一季度的利潤超出了預期。我想如果我沒聽錯的話，你談到了 40% 的管道。所以我猜是什麼阻止了你增加全年指南？

Is that mainly just being conservative as you progress through the key selling season here in 2Q, maybe the pace of implementations or I guess just anything else to call out on maintaining the guidance?

這主要是因為你在第二季度的關鍵銷售季節取得進展而保守，也許是實施的速度，或者我想還有什麼可以呼籲維持指導？

Sure. Stephen. Why don't I kick it off, and then I'll ask Eric to jump in. So as you saw, we had a pretty good quarter, right, in terms of the -- not just the record new logo of new business bookings, but also in terms of a cross-sell traction. So we're very excited about the results of the quarter and as well as the traction we are seeing in the market. But as we did mention that we're also -- some exciting part of this is actually we're getting a lot of large deals, not just Puerto Rico, which is one of the largest deals we have seen in the recent history, but even last year, implementation of Stride, implementation of (inaudible) to major SIS implementations. We signed up 2 major state deals last year in Maryland as well as Alabama on Unified Insight.

當然。斯蒂芬。為什麼我不開始，然後我會請埃里克加入。所以正如你所看到的，我們有一個非常好的季度，正確的，不僅僅是新業務預訂的創紀錄的新標誌，而且在交叉銷售方面也是如此。因此，我們對本季度的業績以及我們在市場上看到的吸引力感到非常興奮。但正如我們確實提到的那樣——其中一些令人興奮的部分實際上是我們獲得了很多大筆交易，而不僅僅是波多黎各，這是我們在近期歷史上看到的最大交易之一，但是甚至在去年，Stride 的實施，（聽不清）主要 SIS 實施的實施。我們去年在馬里蘭州和阿拉巴馬州就 Unified Insight 簽署了 2 項主要的州交易。

Some of the go-lives on that, as you can imagine, is going to go into the back end of this year and did the current school year go-live. So -- it is kind of like from a revenue perspective, it is going to be back-end loaded. So that's what we are kind of being cautious about from the guide and both in Q2 as well as the rest of the year. But from the momentum we see, we are absolutely comfortable with the current guide and definitely are seeing great momentum for our core businesses like SIS and our new investments like Unified Insight, so that gets us very excited about the opportunities going forward.

正如您可以想像的那樣，其中一些上線將進入今年年底，並在本學年上線。所以——從收入的角度來看，它有點像後端加載。因此，這就是我們在第二季度和今年剩餘時間對指南和指南持謹慎態度的地方。但從我們看到的勢頭來看，我們對當前的指南絕對滿意，並且肯定看到我們的核心業務如 SIS 和我們的新投資如 Unified Insight 的巨大勢頭，這讓我們對未來的機會感到非常興奮。

Yes. I mean, so you answered it really well, Hardeep. So I think, Stephen, the key here is, as you think about the larger deals, even the larger deals that we have in the pipeline, we feel very confident that we will get them. But the reality is, you won't really start seeing the revenue on those until latter part of this year, most likely first part of next year. So I think it's important as you kind of look at the skewing of the revenue, you'll see, especially for the deals that we signed late last year and early this year, that's when the subscription revenue will really start to pick up in the back half of this year.

是的。我的意思是，所以你回答得很好，Hardeep。所以我認為，斯蒂芬，這裡的關鍵是，當你考慮更大的交易時，即使是我們正在進行的更大的交易，我們也非常有信心我們會得到它們。但現實是，你要到今年下半年才能真正開始看到這些收入，很可能是明年上半年。所以我認為這很重要，因為你會看到收入的傾斜，特別是對於我們去年底和今年年初簽署的交易，那時訂閱收入將真正開始回升今年後半。

So I think it's that -- the funnel is great, the pipeline is strong. it's just as we are reverting back to some of these more -- the system limitations, which are, as you all know, extremely strategic to us, it does certainly take a little bit longer to implement these, given the complexity and size of them. So the revenue will lag a little bit of the booking.

所以我認為就是這樣 - 漏斗很棒，管道很強大。就在我們重新回到其中一些的時候——系統限制，眾所周知，這對我們來說極具戰略意義，考慮到它們的複雜性和規模，實施這些限制肯定需要更長的時間.所以收入會稍微滯後於預訂。

Got it. Makes a lot of sense. A follow-up I wanted to ask another question, I guess, about the -- on the AI side with LearningNAV and ContentNAV. Curious how, I guess, teacher reception has been to those products for those that have tried it? It sounds like it could make teacher lives a lot easier. I think we all know teachers are spread far too thin. And how big of an opportunity could that be?

知道了。很有道理。後續我想問另一個問題，我想，關於 - 在 AI 方面與 LearningNAV 和 ContentNAV。很好奇，我猜，老師對那些已經嘗試過的產品的接待是怎樣的？聽起來它可以讓老師的生活輕鬆很多。我想我們都知道老師的分佈太薄了。那會有多大的機會呢？

It's a great question. So one of the key things the way we are launching all of our (inaudible) initiatives is that, this is meant to augment a teacher, not to replace a teacher. And as you can imagine, you just mentioned about the teachers' life, right, they have a lot of monotonous tasks, just the whole process of assigning homework, collecting homework, grading homework and then being able to really understand where each child is, one of the major time things in terms of how to basically understand where each child is. That's the kind of flows we are augmenting.

這是一個很好的問題。因此，我們啟動所有（聽不清）舉措的關鍵之一是，這是為了增加教師，而不是取代教師。還有你可以想像，你剛剛提到了老師的生活，對吧，他們有很多單調的工作，就是佈置作業，收集作業，批改作業的整個過程，然後才能真正了解每個孩子在哪裡，就如何基本了解每個孩子的位置而言，這是主要的時間問題之一。這就是我們正在增加的流量。

We're also being able to personalize to provide that individual healthy child needs. And one of the beauties of this is when you look at from our ability of integrating our MTSS, which we have a lot of -- like Alabama and a lot of districts leveraging, we're able to surgically provide the interventions of the child's need, who are either on the academic side or on the attendance side or on the behavior side. So AI is really helping just not on the learning navigation and mastery, but actually also helping identify the kids, which need help, and then be able to provide the surgical intervention each healthy kid needs.

我們還能夠提供個性化服務，以滿足兒童健康需求。這樣做的好處之一是，當你從我們整合 MTSS 的能力來看時，我們有很多——比如阿拉巴馬州和很多地區都在利用，我們能夠通過外科手術提供孩子需要的干預措施，他們要么在學術方面，要么在出勤方面，要么在行為方面。所以 AI 的真正幫助不僅僅是學習導航和掌握，而且實際上還幫助識別需要幫助的孩子，然後能夠提供每個健康孩子需要的手術干預。

So the opportunity is tremendous in terms of really augmenting and supporting teachers and educators.

因此，就真正增強和支持教師和教育工作者而言，機會是巨大的。

And our next question is from the line of Brian Peterson with Raymond James.

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

So I wanted to know on the really strong results for SIS. I'd be curious what's driving that? And I know you mentioned some really strong pipeline figures. I'm curious, how does the pipeline specifically look for SIS? And any thoughts on kind of the future deal activity there?

所以我想知道 SIS 真正強勁的結果。我很好奇是什麼驅動了它？我知道你提到了一些非常強大的管道數據。我很好奇，pipeline是怎麼專門找SIS的？對那裡未來的交易活動有什麼想法嗎？

Great, Brian. Absolutely, I think there are many factors which are playing into the SIS. One is, I think, as you know, in the pandemic, there was a lot of focus on classroom assessment as well as understanding where the kids are. And some of the projects are on, they were also having integrated systems, but they didn't want it to move to SIS in the middle of a pandemic. What we have seen is now that demand actually is even higher than what we saw in pre-pandemic on the SIS. And what's happening is multiple factors.

太好了，布賴恩。當然，我認為有很多因素會影響 SIS。一是，我認為，如你所知，在大流行期間，人們非常關注課堂評估以及了解孩子們的位置。有些項目正在進行中，他們也有集成系統，但他們不希望在大流行期間將其轉移到 SIS。我們現在看到的是，需求實際上比我們在 SIS 上看到的大流行前還要高。正在發生的事情是多種因素造成的。

One is realization that you need to core the core operating system, right of a school district if they want to take advantage of all the technology and really not have to deal with any major disruption. So that's number one. It's really modernizing your core infrastructure and platform. Number two, the security is actually playing in the minds of these districts a lot, both in terms of right now the DDoS attacks and the ransomware attacks and the fact that insurance companies have now increased the insurance for all of these districts, if they do not have the right security systems that they are still using flat files to load data for chrome system and everything.

一個是意識到你需要核心操作系統，如果他們想要利用所有技術並且真的不必處理任何重大中斷，那麼學區就可以了。所以這是第一。它真正實現了您的核心基礎設施和平台的現代化。第二，安全實際上在這些地區的腦海中發揮了很大作用，無論是就目前的 DDoS 攻擊和勒索軟件攻擊而言，還是保險公司現在已經增加了所有這些地區的保險這一事實，如果他們這樣做的話沒有正確的安全系統，他們仍在使用平面文件為 chrome 系統和所有內容加載數據。

So that's another thing from a CIOs and (inaudible) perspective, it is almost the cost of doing business, and they got to upgrade that. Third is actually also what's helping is our SIS differentiator in terms of really bringing the full platform together is now giving them a NAV view that it's not just putting another system, they're putting in our platform, gives an operation growth. So all these 3 are really driving the additional demand we are seeing in SIS. And we actually have a very healthy pipe source in U.S. and international on the SIS, not just from the large districts in terms of things, but also a lot of midsized and small schools as well, which are taking advantage of the platform and the wholesome student cloud solution we have launched.

因此，從首席信息官和（聽不清）的角度來看，這是另一回事，這幾乎是開展業務的成本，他們必須對其進行升級。第三，實際上也有幫助的是我們的 SIS 差異化因素，在真正將整個平台結合在一起方面，現在給他們一個 NAV 視圖，即它不僅僅是放置另一個系統，他們正在放入我們的平台，帶來了運營增長。所以所有這 3 個都真正推動了我們在 SIS 中看到的額外需求。我們在 SIS 上實際上在美國和國際上有一個非常健康的管道資源，不僅來自大區的東西，還有很多中小型學校，它們正在利用這個平台和有益健康的優勢我們推出的學生雲解決方案。

That's great to hear. And Eric, maybe a follow-up for you. Just on the renewal seasonality. Can you just remind us how that kind of flows through ARR for the year? And in any early insight you guys may have as you kind of go into the big renewal period in the summer?

聽到這個消息我很高興。埃里克，也許是你的後續行動。只是在續訂季節性。你能提醒我們今年這種情況是如何通過 ARR 的嗎？當你們進入夏季的大更新期時，你們可能有任何早期的洞察力？

Yes, absolutely, Brian. So now that I own it, I can definitely give you guys a lot of good visibility into it. So we had extremely strong operational success in Q1. The retention is extremely high, and in fact, a little bit ahead of our expectations. As we go into Q2 and Q3, just as a reminder for everybody, Q3 is our busiest period. We've got about 65% of our renewals happen in Q3.

是的，當然，布賴恩。所以現在我擁有它，我絕對可以讓你們對它有很多了解。因此，我們在第一季度取得了極其出色的運營成功。留存率非常高，事實上，有點超出我們的預期。當我們進入第二季度和第三季度時，提醒大家，第三季度是我們最忙的時期。我們有大約 65% 的續訂發生在第三季度。

So the team is focused on 2 things: one, executing flawlessly on the Q2 renewals that we're working through; and then certainly, same thing and getting ahead of the Q3 volume. As you think about what that does from an ARR perspective, I think it is important and I appreciate the question. Just as you look at ARR for modeling purposes, typically Q2 to Q3 essentially is around flat because, obviously, any of the net new in Q3 will get offset with any amount of attrition we have, given the fact that we've got 65% of our renewals happen in Q3.

所以團隊專注於兩件事：第一，完美執行我們正在努力的第二季度續約；然後當然，同樣的事情並且領先於第三季度的銷量。當你從 ARR 的角度考慮它的作用時，我認為這很重要，我很欣賞這個問題。正如您出於建模目的查看 ARR 一樣，通常 Q2 到 Q3 基本上持平，因為顯然，考慮到我們有 65%我們的續訂發生在第三季度。

That's when any kind of attrition is going to happen if it's material. But you will see from an ARR perspective, exiting out of this quarter into Q2, right, you'll continue to build that up in Q2 to Q3. ARR will certainly kind of level off, if you will, not go down, but it will level off from quarter-to-quarter sequentially. And then it'll go back to a growth pattern from Q3 to Q4.

那時任何類型的人員流失都會發生，如果它是重要的。但是你會從 ARR 的角度看到，從這個季度退出到第二季度，對，你將在第二季度到第三季度繼續建立它。 ARR 肯定會趨於平穩，如果你願意的話，不會下降，但它會逐季趨於平穩。然後它將回到從第三季度到第四季度的增長模式。

And our next question is from the line of Fred Havemeyer with Macquarie.

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

I am going to do probably what I've done in other quarters and just check in on in part, what we're seeing with ESSER, because I think it's been notable seeing more contracts, including some of those have seen come across for PowerSchool that have been supported in part by ESSER funding. And I'm curious, it seems that many of them are focusing the ESSER funding towards services -- services charges while making room for software is kind of part of a ongoing more basis. I'm just -- as I'm thinking about the summer, I'm thinking about this year's budgeting cycle. Do you think that ESSER funding might be something that can help the schools get more of these deals across the board, get that services, onetime costs out of the way and just facilitate more of the cross-sell and upsell motion that you've been executing so well with?

我可能會做我在其他方面所做的事情，只是部分地檢查一下我們在 ESSER 上看到的情況，因為我認為看到更多的合同是值得注意的，包括 PowerSchool 的一些合同ESSER 資助的一部分。我很好奇，似乎他們中的許多人都將 ESSER 資金集中在服務上——服務收費，同時為軟件騰出空間是持續更多基礎的一部分。我只是——當我在想夏天的時候，我在想今年的預算週期。您是否認為 ESSER 資金可以幫助學校全面獲得更多此類交易，獲得服務，一次性成本，並促進更多交叉銷售和追加銷售活動？執行得這麼好？

Fred, great question. Actually, I got a chance to speak just last week at ASU GSV where I was on the panel for the appropriate title, Halftime for ESSER. And we talked about the panelist members about when you look at the initial ESSER spend, there was a little bit more about some critical things they needed. And as we go into the tail end of the second half of the ESSER, it's a lot more strategic. It's a lot more transformational aspect, lot more innovative aspects.

弗雷德，好問題。實際上，就在上週，我有機會在 ASU GSV 上發言，當時我是 ESSER 的適當標題 Halftime 的小組成員。我們還談到了小組成員，當你看到最初的 ESSER 支出時，他們需要更多的一些關鍵東西。當我們進入 ESSER 後半段的尾聲時，它更具戰略意義。這是更具變革性的方面，更具創新性的方面。

So we are seeing definitely with 18 months more to spend and with the thought that a lot of these districts can even spend for that for a couple of more years in terms of the spend categories. I think there is still -- districts have good funding to support these transformation objectives, as you mentioned. And you're absolutely right. Definitely, one of the beauties of ESSER is that you can actually use it for the initial implementation staff, right, for the onetime that allows you to really help with that. Puerto Rico is a great example of that, with leveraging some of that ESSER money to help with the implementation. But we also felt at the same time, ESSER is not the only opportunity. The Alabama deal, the multimillion dollar Alabama deal we talked about last quarter Unified Insights, that actually got through legislative approval as a special budget.

因此，我們肯定會看到還有 18 個月的支出，並且認為很多這些地區甚至可以在支出類別方面為此再支出幾年。正如您提到的，我認為地區仍然有充足的資金來支持這些轉型目標。你是絕對正確的。毫無疑問，ESSER 的優點之一是您實際上可以將它用於最初的實施人員，對，一次讓您真正幫助他們。波多黎各就是一個很好的例子，它利用 ESSER 的一些資金來幫助實施。但同時我們也感覺到，ESSER並不是唯一的機會。阿拉巴馬州的交易，我們上個季度 Unified Insights 談到的價值數百萬美元的阿拉巴馬州交易，實際上作為特別預算通過了立法批准。

So there is a lot of recognition overall, not just from ESSER support and the district support, but overall from the legislative support in terms of making sure that these digital transformation initiatives critical for education are going through, and the ROI of these are tremendous. So that's why we continue to see the pipeline and the demand to be very strong.

因此，總體上得到了很多認可，不僅來自 ESSER 支持和地區支持，而且總體上來自立法支持，以確保這些對教育至關重要的數字化轉型計劃正在實施，並且這些舉措的投資回報率是巨大的。這就是為什麼我們繼續看到管道和需求非常強勁的原因。

Thank you, Hardeep. And I think I'd like to ask another question here just on international, as we've been seeing more and just international deals coming through here. Of course, you were highlighting in the quarter more deals or rather deals in the Middle East. I'm curious as you're establishing more of a footprint overseas and getting more experience with doing these international deals. Are you finding that there are learnings here and that you can just take and further scale your international go-to-market with and work with partners to further just to get scale in international regions?

謝謝你，哈迪普。而且我想我想在這裡問另一個關於國際的問題，因為我們已經看到越來越多的國際交易通過這裡進行。當然，您在本季度強調了中東的更多交易，或者更確切地說是交易。我很好奇你在海外建立了更多的足跡，並在進行這些國際交易方面獲得了更多的經驗。您是否發現這裡有經驗教訓，您是否可以與合作夥伴一起進一步擴大國際上市並與合作夥伴合作，以進一步擴大在國際地區的規模？

Absolutely, Fred. I think one of the strengths of the PowerSchool capability, especially when it comes to our SIS Schoology, is that we already do business in 90 countries with not just American educational schools, but a lot of the international and private schools in different parts of the world. And what gives us that opportunity and the strength is the fact that even within U.S. as to be able to meet the requirements of all the 50 states, even in the Canada, meeting the requirements of all the different provinces, our system was built with an extensibility to be able to support the experiences, reporting, the localization required for meeting all the local laws and the reporting requirements and different attributes.

當然，弗雷德。我認為 PowerSchool 能力的優勢之一，尤其是在我們的 SIS Schoology 方面，是我們已經在 90 個國家開展業務，不僅有美國的教育學校，還有美國不同地區的許多國際和私立學校世界。給我們機會和力量的事實是，即使在美國，為了能夠滿足所有 50 個州的要求，即使在加拿大，為了滿足所有不同省份的要求，我們的系統也是建立在能夠支持滿足所有當地法律和報告要求以及不同屬性所需的體驗、報告、本地化的可擴展性。

That strength is giving us an ability, along with an already established proven points in a lot of the regions we are already entering with the brand presence, which is known. So if you are in Dubai, one of the best performing school is the American Education School of Dubai. So if you're in Thailand, International School of Bangkok. So when the district or state or even a private school looks for an opportunity, they look at to these schools and say, what system they are using, so they can kind of really replicate that same technology, and we already have strong viewpoint.

這種實力給了我們一種能力，以及在我們已經進入的許多地區已經建立的成熟點，這是眾所周知的。因此，如果您在迪拜，表現最好的學校之一是迪拜美國教育學校。所以如果你在泰國，曼谷國際學校。因此，當地區或州甚至私立學校尋找機會時，他們會看看這些學校並說，他們正在使用什麼系統，這樣他們就可以真正複製相同的技術，我們已經有了強烈的觀點。

And this is the reason what you see is the strong partnership commitments we are getting is because of our -- we are already proven in these regions, and we already have a very strong brand appeal. And what we're doing it rather than going after the individual schools, we're going with these strategic partnerships that helps us make sure that we can scale of our -- more quickly international, and we are getting the localized help for the support, the boots on the ground, the services that way when we can make sure that the experience for the end customer is going to be very exciting.

這就是為什麼你看到我們得到強有力的合作夥伴承諾是因為我們 - 我們已經在這些地區得到證明，並且我們已經擁有非常強大的品牌吸引力。我們正在做的，而不是針對個別學校，我們正在與這些戰略合作夥伴合作，幫助我們確保我們能夠更快地擴大我們的國際規模，並且我們正在獲得本地化的支持幫助，地面上的靴子，當我們可以確保最終客戶的體驗將非常令人興奮時，這種方式的服務。

So it's rather than having 50 or 100 partners. This is very surgical, very strategic, exclusive partnerships in these regions with partners who are really committing and putting their skin in the game of helping us really scale into these regions. So we are very excited about the path we are on.

所以它不是擁有 50 或 100 個合作夥伴。這是在這些地區與真正致力於幫助我們真正擴展到這些地區的合作夥伴的非常手術、非常戰略、獨家的合作夥伴關係。因此，我們對所走的道路感到非常興奮。

And our next question is from the line of Saket Kalia with Barclays.

我們的下一個問題來自巴克萊銀行的 Saket Kalia。

Hardeep, maybe just to start with you. I thought your commentary on SIS earlier was just really interesting and some of the drivers there. Maybe just to level set, can you just talk about roughly how much share PowerSchool has in SIS? And maybe just broad brush, who or what types of systems you're displacing in some of these SIS modernization projects?

Hardeep，也許只是從你開始。我認為你之前對 SIS 的評論真的很有趣，還有一些司機。也許只是水平集，你能談談PowerSchool在SIS中大概有多少份額嗎？也許只是籠統地說，在這些 SIS 現代化項目中，您正在取代誰或什麼類型的系統？

Sure. Saket, when you look at it from a market share, right, we have almost 20 million students on our SIS platform. So in North America, from a 60 million in perspective, we will put roughly 1/3 of the market, which actually leverages our SIS solution. We are by far the market leader. The next 3 vendors combined probably touch that kind of in terms of that percentage. So we definitely have a huge lead over any of our competitors in the market.

當然。 Saket，當你從市場份額來看時，對，我們的 SIS 平台上有將近 2000 萬學生。所以在北美，從 6000 萬的角度來看，我們將投放大約 1/3 的市場，這實際上利用了我們的 SIS 解決方案。我們是迄今為止的市場領導者。就該百分比而言，接下來的 3 家供應商加起來可能會達到這種程度。因此，我們絕對領先於市場上的任何競爭對手。

What you do see is that 40% of the market is actually still very legacy or custom-built solution. So even things like Puerto Rico had a very small legacy vendor where it was highly customized and being maintained. There are still not only large school districts, but also there are a lot of still school districts in whether even in California, or in others, which are leveraging vendors, which only have 1 million to 2 million students on their entire platform.

你所看到的是，40% 的市場實際上仍然是非常傳統或定制的解決方案。因此，即使是像波多黎各這樣的地方，也有一個非常小的遺留供應商，在那裡它是高度定制和維護的。不僅是大學區，還有很多學區，不管是加州還是其他地方，都是在撬動廠商，整個平台上只有100萬到200萬學生。

So as you can imagine, the innovation required, the security apparatus required, the ability to be able to set a platform which can modernize to the needs of being able to leverage data as well as even AI into these school districts. They don't have that apparatus to do that, and that's what's driving a lot of the change that the 40% bottom legacy solutions, which is converting to our SIS platform.

因此，正如您可以想像的那樣，所需的創新、所需的安全設備、能夠設置一個平台的能力，該平台可以現代化以滿足能夠利用數據甚至 AI 進入這些學區的需求。他們沒有那樣的設備來做到這一點，這就是推動 40% 底層遺留解決方案轉變為我們的 SIS 平台的很多變化的原因。

That's great. That's great to hear. Certainly still put plenty of room for growth there. Then Eric, maybe for you for my follow-up. First of all, congrats on the Puerto Rico deal, a great win.

那太棒了。聽到這個消息我很高興。當然，那裡仍有很大的增長空間。然後埃里克，也許是為了你我的後續行動。首先，祝賀波多黎各的交易，一場偉大的勝利。

Can you just maybe talk about how that contract maybe plays into the seasonality for Services and License revenue? Understanding the vast majority of the business here is SaaS. But just given the rev rec on those 2 ones, could you just maybe help us think through those as we kind of model the rest of the year on revenue?

您能否談談該合同如何影響服務和許可收入的季節性？了解這裡的絕大部分業務是 SaaS。但是只要考慮到這兩個的 rev rec，你能不能幫助我們考慮一下這些，因為我們在今年剩餘時間裡對收入進行建模？

Sure Saket. And actually, if I may, let me just talk about breakout revenue into the most strategic down to the least strategic components, because I think it will help all of you, as you're kind of looking at the revenue and how to model it. From an S&S standpoint, certainly, our Subscriptions and Support most strategic. We're in the high single digits now. As we see these larger deals and the subs and support really start to kick in the second half. You'll see that revert back into the low double digits, ending the full year in the low double-digit revenue growth standpoint.

當然薩克特。事實上，如果可以的話，讓我談談從最具戰略意義的部分到最不重要的部分的收入突破，因為我認為這對你們所有人都有幫助，因為你們正在研究收入以及如何對其建模.從 S&S 的角度來看，當然，我們的訂閱和支持最具戰略意義。我們現在處於高個位數。當我們看到這些更大的交易以及潛艇和支持在下半年真正開始發揮作用時。你會看到它恢復到低兩位數，以低兩位數的收入增長結束了全年。

As you look at our Services, similar to what I said last quarter, I do expect our overall Services business for the full year to be in the mid to high-single digits in the full year-to-year growth. Now why is that? Certainly, we've gotten a lot more efficient in terms of our Services business. The velocity of the time to value for our customers has increased. And we're getting a lot of utilization, a lot more increased utilization out of the team.

當您查看我們的服務時，與我上個季度所說的類似，我確實希望我們全年的整體服務業務在全年同比增長中處於中高個位數。為什麼會這樣？當然，我們在服務業務方面的效率提高了很多。為我們的客戶實現價值的速度有所提高。我們得到了很多利用率，團隊的利用率大大提高了。

Now what that means from a sequential standpoint, you will see sequentially Q1 to Q2, you'll see the revenue and services increase and then you'll see a further increase in Q3 as we have all the back-to-school implementations, et cetera. And then you'll see it slightly taper down in the fourth quarter as projects start to taper off and schools head out for year ending holidays, et cetera. So sequentially, you'll see the revenue on Services pick up in the second quarter, peak in the third quarter and then trail down a little bit in the fourth quarter, ending the full year mid- to high single digit year-over-year growth.

從連續的角度來看，這意味著什麼，你會看到 Q1 到 Q2 的順序，你會看到收入和服務增加，然後你會看到第三季度進一步增加，因為我們有所有返校實施，等等等等。然後你會看到它在第四季度略有下降，因為項目開始逐漸減少，學校開始放年假，等等。因此，按順序，您會看到服務收入在第二季度回升，在第三季度達到頂峰，然後在第四季度略有下降，全年以中高個位數同比結束生長。

L&O, same thing, you'll see quarter-to-quarter perspective, you'll see a pickup in Q2, then peak in Q3 and then again come down slightly in Q4. Just recognizing L&O being our least -- our smallest and least strategic revenue segment. There's a little bit more variability from one quarter to the next. But I would say on a full year basis, we expect that to be around flat. And the majority of the growth, if you will, for the company will be in our S&S, our most strategic revenue component.

L&O，同樣的事情，你會看到季度到季度的觀點，你會看到第二季度有所回升，然後在第三季度達到頂峰，然後在第四季度再次略有下降。只是認識到 L&O 是我們最小的——我們最小和最不具有戰略意義的收入部分。從一個季度到下一個季度會有更多的變化。但我會說，在全年的基礎上，我們預計這將持平。如果你願意的話，公司的大部分增長將來自我們的 S&S，這是我們最具戰略意義的收入組成部分。

So hopefully, I know it's a little bit more than you asked for, but hopefully, that helps everybody kind of think about the overall revenue profile, and how we are looking at it, not only for this quarter but expectations into next quarter and certainly for the full year.

所以希望，我知道這比你要求的要多一點，但希望這能幫助每個人考慮整體收入狀況，以及我們如何看待它，不僅是本季度，還有下個季度的預期，當然還有全年。

And our next question is from the line of Brent Thill with Jefferies.

我們的下一個問題來自 Brent Thill 與 Jefferies 的合作。

Hardeep on AI. Can you speak to when you think that actually turns to a monetization event? Is this a year out? Is it a few months out? I mean, how do you judge the timing and how fast you can infuse a suite with AI? And I had a quick follow-up for Eric after.

哈迪普人工智能。當您認為這實際上變成了貨幣化事件時，您能談談嗎？這是過年了嗎？幾個月了？我的意思是，你如何判斷時機以及你能以多快的速度為套房注入 AI？之後我對埃里克進行了快速跟進。

Sure, Brent. It's a pleasure again. When I mentioned in my prepared remarks, we already do have AI-based access components, which we're selling to customers, and we have dozens of customers who use our access and MTSS solution, leveraging those AI components. So that's something we already monetized. It's a couple of million dollars as part of our Unified Insights solution. So we are continuing to see as more Unified Insights continue to grow 70% and more deployments. We are able to continue to grow that piece as well.

當然，布倫特。又是一種享受。當我在準備好的發言中提到時，我們已經有基於 AI 的訪問組件，我們正在向客戶銷售這些組件，並且我們有數十個客戶使用我們的訪問和 MTSS 解決方案，利用這些 AI 組件。所以這是我們已經貨幣化的東西。作為我們 Unified Insights 解決方案的一部分，它需要幾百萬美元。因此，我們繼續看到更多的 Unified Insights 繼續增長 70% 和更多的部署。我們也能夠繼續發展這一塊。

So that's already -- we are already monetizing the piece. So the second piece of the component, as we mentioned in terms of the LearningNAV and ContentNAV. This is based on some of the IT we have bought, which has already been around for almost a decade, and we actually have now embedded that fully into our Schoology and product at these launch of these additional components. And we are in the pilot phase with a couple of customers and we plan to have it fully showcased in our EDGE conference, so we can start selling them.

所以這已經——我們已經在將這件作品貨幣化了。所以組件的第二部分，正如我們在 LearningNAV 和 ContentNAV 中提到的那樣。這是基於我們購買的一些 IT，它已經存在了將近十年，實際上我們現在已經在這些附加組件的發布中將其完全嵌入到我們的 Schoology 和產品中。我們正處於幾個客戶的試驗階段，我們計劃在我們的 EDGE 會議上充分展示它，這樣我們就可以開始銷售它們了。

We already have a couple of large customers actually who are very interested. So we will start seeing some amount of these deals into the second half. But the real monetization, as you know, this is almost $100 billion TAM. The way we are monetizing it, these will be add-on products to our current cloud into this year. The next year, we will launch additional solutions like PowerSchool Personalized Homework solutions that can open up a huge opportunity. Then you have the opportunity to actually do things like additional tutoring help through that as well as in terms of helping on the areas of what we call the full learning pathways support, leveraging our Naviance and Workforce planning to help kids with the supplemental learning.

實際上，我們已經有幾個非常感興趣的大客戶。因此，我們將在下半年開始看到一些此類交易。但如您所知，真正的貨幣化幾乎是 1000 億美元的 TAM。我們將其貨幣化的方式是，這些將在今年成為我們當前云的附加產品。明年，我們將推出更多解決方案，例如 PowerSchool 個性化家庭作業解決方案，這將帶來巨大的商機。然後你就有機會實際做一些事情，比如通過它提供額外的輔導幫助，以及在我們稱之為全面學習途徑支持的領域提供幫助，利用我們的 NAVIANCE 和勞動力計劃來幫助孩子進行補充學習。

And then you can kind of start looking at the longer picture of even moving that to be even outside the classroom help. So it's a much -- it's like a 3- to 4-year plan to launch these components, but you already have monetization and you'll see more monetization happening over the later half in the next year.

然後你可以開始著眼於甚至將其移動到課堂之外的幫助。所以這很重要 - 這就像推出這些組件的 3 到 4 年計劃，但你已經有了貨幣化，你會在明年下半年看到更多的貨幣化發生。

Okay. Great. Eric, on the guide, I just -- this is kind of the first quarter, we haven't seen the cadence of you raising and then you kind of go back to big deals. We can only go back to is it going to take (inaudible) take 50 to close this out? Or is it going to -- thanks to bonus with a bunch of layups. But I guess you go back to everyone's hearing, is this riding on the big shots? And can you just address that concern of trying to get the full year over the goal line on going after the bigger elephants versus the antelopes?

好的。偉大的。埃里克，在指南中，我只是——這是第一季度，我們還沒有看到你提高的節奏，然後你又回到了大交易中。我們只能回到是否需要（聽不清）50 分鐘才能結束？或者它會——多虧了一堆上籃的獎勵。不過我猜你回去大家聽聽，這是騎在大人物身上嗎？你能不能解決這個問題，即試圖讓全年都超過目標線來追逐更大的大象而不是羚羊？

I mean, look, Brent, I think it's a great question. What I would say, though, is the big elephants have already been bagged. It's just a matter of us doing the services work and getting the projects implemented. So it's a matter of timing. And the teams -- as you can appreciate, Puerto Rico, the size of the deal, which is why we included in the prepared remarks, is one of our largest deals that we've had in the last several years. So as you can appreciate, there's a tremendous amount of executive oversight management focus.

我的意思是，布倫特，我認為這是一個很好的問題。不過，我要說的是，大像已經被裝袋了。這只是我們做服務工作和實施項目的問題。所以這是一個時間問題。和團隊——正如你所理解的，波多黎各，交易的規模，這就是我們在準備好的評論中包含的原因，是我們在過去幾年中最大的交易之一。因此，正如您所理解的，有大量的執行監督管理重點。

And given the fact that it's a core system implementation in Puerto Rico, that then creates a flywheel for a huge amount of cross-sell opportunities in the future, right? So what I would say is the team is laser-focused on LA Unified, on Alabama, on Puerto Rico, which are the big deals that we're confident, we will start to see the revenue pick up in the second half. So I guess I would just say is there isn't -- as Hardeep talks about the pipeline, which we're super excited about, especially on the bigger deal side there, those items from a revenue standpoint, you really won't see those start to contribute anything meaningfully until maybe latter part of this year, most likely for first part of next year, which is, again, everything we've modeled in.

鑑於它是波多黎各的核心系統實施這一事實，它會為未來的大量交叉銷售機會創造一個飛輪，對吧？所以我要說的是，團隊專注於 LA Unified、阿拉巴馬州和波多黎各，這些都是我們有信心的大交易，我們將在下半年開始看到收入回升。所以我想我只想說沒有——正如 Hardeep 所說的管道，我們對此非常興奮，特別是在更大的交易方面，從收入的角度來看，這些項目，你真的不會看到那些人可能會在今年下半年之前開始做出任何有意義的貢獻，最有可能在明年上半年，這也是我們模擬的所有內容。

So I would just -- while there's a little bit of noise, I think it's important -- and candidly, as Hardeep and I talk about it, we're excited because as the deals get bigger, it's a demonstration of just how strategic we are becoming with our customers. So we are going to have bigger deals. They are going to continue. But just rest assured that we're very confident in the second half of the year in terms of the revenue that's going to roll off of these once the implementations go-live.

所以我只是 - 雖然有一點噪音，但我認為這很重要 - 坦率地說，正如我和 Hardeep 談論的那樣，我們很興奮，因為隨著交易越來越大，這證明了我們的戰略性正在成為我們的客戶。所以我們將有更大的交易。他們將繼續。但請放心，我們對今年下半年的收入非常有信心，一旦實施上線，這些收入就會減少。

And our next question is from the line of Matt Hedberg with RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Matt Hedberg。

I'll keep it to one for the sake of time. I guess for either of you, refresh our memory again about how we should think about U.S. Fed funding flowing into this year. I know there's been a bunch of moving parts coming out of COVID.

為了節省時間，我會保留一個。我想對於你們中的任何一個，再次刷新我們應該如何考慮流入今年的美聯儲資金的記憶。我知道 COVID 有很多活動部件。

And then maybe specifically for Eric. How do you think about that relative to sort of the midpoint of your kind of full year guidance range?

然後可能專門針對埃里克。相對於你的全年指導範圍的中點，你如何看待這一點？

Sure. So from a funding perspective, I can quickly address that, Matt. So I think the funding is largely when you look at the funding that has continued to be stable even throughout the last couple of years. So there is no change to the core funding. Federal piece component goes to about 20%, 30% of it. We have stayed in the local. And we have seen that across states and pretty much back to be very stable. The ESSER money is on top of that. That's a $200 billion ESSER, 3 tranches of ESSER. The first 2 tranches have been -- some part of them have been spent and the third tranche is still make it work. So total, you can -- as I mentioned, you can put roughly 40%, 50% being spent and then the rest still available to the districts for spend.

當然。所以從資金的角度來看，我可以很快解決這個問題，馬特。所以我認為資金主要是當你查看甚至在過去幾年中一直保持穩定的資金時。所以核心資金沒有變化。聯邦片成分約佔20%、30%。我們一直住在當地。我們已經看到跨州並且幾乎回到非常穩定的狀態。 ESSER 錢是最重要的。那是一個 2000 億美元的 ESSER，ESSER 的 3 個部分。前兩筆付款已經用完——其中一部分已經用完，第三筆付款仍在進行中。所以總的來說，你可以——正如我提到的，你可以把大約 40%、50% 花掉，然後剩下的仍然可供地區花掉。

So from that perspective, that still flows another for 18 months for decision-making and then even spend can be a little bit better. So the funding environment seems to be very stable and also with ESSER further supported by that.

因此，從這個角度來看，這仍然需要 18 個月的時間來進行決策，然後甚至支出可能會好一點。因此，資金環境似乎非常穩定，而且 ESSER 也得到了進一步的支持。

Yes. And Matt, specifically on the guidance, we have not assumed any dependency on the ESSER funding to deliver the rest of this year. When we do have visibility to deals that may use ESSER funding, it's usually a pretty small percentage. So there's very little risk there of things not getting funded because that didn't get spent, et cetera. So we've -- the guide, I think, is fairly balanced, what I would say, and we haven't put any dependency on ESSER for the second half.

是的。 Matt，特別是在指導方面，我們沒有假設任何依賴 ESSER 資金來交付今年剩餘時間。當我們確實了解可能使用 ESSER 資金的交易時，它通常只佔很小的比例。因此，由於沒有花錢等原因而得不到資金的風險很小。所以我們 - 我認為指南是相當平衡的，我想說的是，我們在下半年沒有對 ESSER 有任何依賴。

And our next question is from the line of Rich Hilliker with Credit Suisse.

我們的下一個問題來自瑞士信貸的 Rich Hilliker。

Just wanted to have another go here at international. One quick one on my end. Exciting to see the BME partnership, the OneConnect partnership, and I know these have minimum commitments. What I'm wondering is how much freedom do these partners have?

只是想在國際上再去一次。一個快速的在我這邊。很高興看到 BME 合作夥伴關係、OneConnect 合作夥伴關係，我知道這些都是最低限度的承諾。我想知道的是這些合作夥伴有多少自由？

As you mentioned, you're 90-plus countries. You've rolled out this localization framework. Are they able to sell whatever they want? Is it kind of that one more product, rally cry? Are they -- are you pushing them with bundles? What does it look like? How much freedom do they have?

正如你提到的，你們有 90 多個國家。您已經推出了這個本地化框架。他們可以隨心所欲地出售嗎？是不是又一種產品，集會吶喊？他們是——你是在用捆綁來推他們嗎？它是什麼樣子的？他們有多少自由？

Rich, yes, very fair question. So the core focus on international right now is the non-novel core products, SIS, the learning management systems, the enrollment, things where you need core school operations to be able to run the school operation, communicate and manage learning and collaboration with the parent students. So -- and we also see demand of actually insights and analytics, which is coming up international, even outside, people who are buying our system LMS.

豐富，是的，非常公平的問題。因此，目前國際上的核心焦點是非新穎的核心產品、SIS、學習管理系統、註冊，以及你需要核心學校運營才能運行學校運營、溝通和管理學習以及與家長學生。所以——我們也看到了對實際洞察力和分析的需求，這些需求正在國際上出現，甚至是在國外，購買我們系統 LMS 的人。

So those are the core area of focus for us for the international. We're not really launching our -- all of our 20-plus products international. So these are the core products, which are the Phase I. And that's where these partners are enabled, trained and that's what the experience is actually most of the partner already have in some respects with working with the local school there.

因此，這些是我們國際關注的核心領域。我們並沒有真正在國際上推出我們所有的 20 多種產品。所以這些是核心產品，即第一階段。這就是這些合作夥伴被啟用、培訓的地方，這實際上是大多數合作夥伴在與當地學校合作時在某些方面已經擁有的經驗。

Excellent. That's really helpful. And then last one on that topic. Can you kind of help us think through -- you talked about these are exclusive partnerships. So it's not like we're going to see 50 of them. Can you give us a sense, is this going to be like a handful? Is this going to be double digits? And over what period of time are you thinking of rolling the majority of these out?

出色的。這真的很有幫助。然後是關於該主題的最後一個。你能幫我們想清楚嗎——你談到了這些是獨家合作夥伴關係。所以我們不會看到其中的 50 個。你能給我們一個感覺，這會像少數人一樣嗎？這會是兩位數嗎？您打算在多長時間內推出其中的大部分內容？

Yes, great question. So when you look at it, we're not trying to go cover every country in every region. We're covering the biggest regions. We actually have brought in the management consulting firm to actually do the analysis for us in terms of looking at the local buying patterns and competition and budgets and different scenarios. And we prioritized about 12 regions where we are establishing these different exclusive partnerships to kind of really go after, which actually opens up to almost $100 million plus of student TAM in just within those private schools and very focused strategies in these 12 regions.

是的，很好的問題。所以當你看它時，我們並沒有試圖覆蓋每個地區的每個國家。我們正在覆蓋最大的地區。實際上，我們已經聘請了管理諮詢公司，根據當地的購買模式、競爭、預算和不同的場景為我們做分析。我們優先考慮了大約 12 個地區，在這些地區我們正在建立這些不同的獨家合作夥伴關係以真正追求，這實際上在這些私立學校和這 12 個地區的非常集中的戰略中開闢了近 1 億美元以上的學生 TAM。

So that's a very -- it's a very targeted approach and expect that probably another half a dozen partnerships throughout this year and then going into the next year to almost 12 to 15 exclusive partnerships.

所以這是一個非常 - 這是一個非常有針對性的方法，預計今年可能會有另外六個合作夥伴關係，然後進入明年將有近 12 到 15 個獨家合作夥伴關係。

And our last question is from the line of Brett Knoblauch with Cantor Fitzgerald.

我們的最後一個問題來自 Brett Knoblauch 和 Cantor Fitzgerald。

I'll be quick here. Just kind of want to touch base now that you guys have (inaudible) the 6 core cloud. Have you seen any efficiency gains on the go-to-market strategy with that?

我會很快的。既然你們擁有（聽不清）6 核雲，就有點想接觸基地。您是否看到了上市策略的任何效率提升？

Brett, so when you look at it, we started launching these cloud this quarter and one of the things I mentioned in my prepared remarks, we almost pretty much really have seen each of the products, depending on each of the clouds. We've almost seen 50-plus transactions in each of the cloud. So that's helping us, whether it's a student cloud or it's our educator effectiveness overage, educator recruitment cloud or a workforce planning cloud. So we're kind of really launching these things into our customer base to make sure that they can understand the benefit of really buying -- based on that persona, buying all the products rather than buying the individual products.

布雷特，所以當你看到它時，我們本季度開始推出這些雲，我在準備好的發言中提到的一件事，我們幾乎真的看到了每一種產品，這取決於每一種雲。我們幾乎在每個雲中看到了 50 多個事務。所以這對我們有幫助，無論是學生雲還是我們的教育工作者效能超額、教育招聘雲或勞動力規劃雲。因此，我們實際上是在向我們的客戶群推出這些東西，以確保他們能夠理解真正購買的好處——基於那個角色，購買所有產品而不是購買單個產品。

So we are getting -- we're not trying to discourage any of our customers to buy individual products. We're still selling majority of that. But we are able to have them start educating them, then when they're buying the product, they actually have an avenue to really be able to take advantage of the full cloud for that persona. And what we did see is actually we almost saw 60-plus deals in the quarter where customer either bought the whole cloud -- one of the whole cloud or they topped up their existing products to be able to have the full cloud. So that's a very encouraging sign even with early on that we are actually able to get customers to start thinking about this in a perspective.

所以我們得到 - 我們並沒有試圖阻止我們的任何客戶購買個別產品。我們仍在銷售其中的大部分。但是我們能夠讓他們開始對他們進行教育，然後當他們購買產品時，他們實際上就有了一個真正能夠為該角色利用完整雲的途徑。我們確實看到的是，實際上我們在本季度幾乎看到了 60 多筆交易，客戶要么購買了整個雲——整個雲中的一個，要么他們補充了現有產品以獲得完整的雲。所以這是一個非常令人鼓舞的跡象，即使在早期我們實際上能夠讓客戶開始從一個角度考慮這個問題。

We're really going to be doing a full launch of this at the EDGE conference. So expect that by the second half for our customer base to be able to really have a full alignment. And then we really are going to start seeing the benefit of this coming into the later half of the next year in terms of the new bookings.

我們真的打算在 EDGE 會議上全面發布它。因此，預計到下半年，我們的客戶群能夠真正實現完全一致。然後我們真的會開始看到明年下半年在新預訂方面帶來的好處。

And there are no further questions at this time. Hardeep, I will now turn the call back to you for closing remarks.

目前沒有其他問題。 Hardeep，我現在將電話轉回給您，請您作結束語。

Great. Well, thank you, operator. Let me just take a minute to thank everyone for joining us today as well as thanking our employees and our customers for really the continued dedication and belief in our vision to be able to improve education outcomes globally.

偉大的。嗯，謝謝接線員。讓我花一點時間感謝大家今天加入我們，並感謝我們的員工和客戶真正持續的奉獻和對我們能夠改善全球教育成果的願景的信念。

To summarize, right, this was a great start to 2023 and we had not only a record new logo bookings, but also very exciting growth in our cross-sell. We have a [phenomenal] traction of our data-centric products and Unified Insights and Connected Intelligence. Also, as we mentioned, the SIS, which is a very strategic core part, which expands over cross-sell TAM, having the wins like Puerto Rico were really game changing in terms of the ability. And then international expansion further tops it off in terms of our future -- supporting our future growth.

總而言之，這是 2023 年的一個良好開端，我們不僅獲得了創紀錄的新徽標預訂，而且我們的交叉銷售也取得了非常令人興奮的增長。我們以數據為中心的產品以及統一洞察力和互聯智能具有[驚人的]吸引力。此外，正如我們提到的，SIS 是一個非常具有戰略意義的核心部分，它擴展了交叉銷售 TAM，像波多黎各這樣的勝利在能力方面確實改變了遊戲規則。然後國際擴張在我們的未來方面進一步達到頂峰——支持我們未來的增長。

This success is really driven by where -- the fact that we are the most differentiated mission critical platform in the industry, serving a very large and stable vertical market. And we operate on a very durable financial model that has a strong operating leverage. And coupled with our tremendous growth opportunity, especially through international and even the personalized learning and innovation, we are really positioned well for the growth. We are excited about the opportunities that present us and look forward to executing on the strategies throughout 2023 and beyond. So thank you again.

這種成功實際上是由什麼驅動的——我們是業內最具差異化的關鍵任務平台，服務於一個非常龐大和穩定的垂直市場。我們採用非常耐用的財務模式運營，該模式具有強大的運營槓桿。再加上我們巨大的增長機會，尤其是通過國際乃至個性化的學習和創新，我們確實為增長做好了準備。我們對呈現給我們的機會感到興奮，並期待在整個 2023 年及以後執行這些戰略。所以再次感謝你。

That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect.

這確實結束了今天的電話會議。我們感謝您的參與，請您斷開連接。