PowerSchool Holdings Inc (PWSC) 2023 Q2 法說會逐字稿

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

女士們、先生們，下午好，歡迎參加 PowerSchool 2023 年第二季度財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the call over to Shane Harrison, Senior Vice President of Investor Relations. Thank you, sir. Please go ahead.

我現在想將電話轉給投資者關係高級副總裁肖恩·哈里森 (Shane Harrison)。謝謝你，先生。請繼續。

Thank you, operator. Welcome, everyone, to PowerSchool's earnings conference call for the second quarter ended June 30, 2023.

謝謝你，接線員。歡迎大家參加 PowerSchool 截至 2023 年 6 月 30 日的第二季度收益電話會議。

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 Power Schools CEO, Hardeep Gulati; and CFO, Eric Shander. We apologize for the schedule change today, but Hardeep had a scheduling conflict due to him attending an education summit at the White House that overlapped our original timing. As such, Hardeep's portion of these prepared remarks have been recorded, but we expect them to be available for the live Q&A to follow these prepared remarks.

我想首先讓您知道，我們在網站的投資者關係部分發布了幻燈片，並附有我們的言論。今天的電話會議由 Power Schools 首席執行官 Hardeep Gulati 主持。和首席財務官埃里克·尚德。我們對今天的日程變更表示歉意，但哈迪普因參加白宮教育峰會而與我們原來的時間重疊，因此發生了日程衝突。因此，哈迪普的這些準備好的發言的部分已經被記錄下來，但我們希望它們可以用於這些準備好的發言之後的現場問答。

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.

我想強調的是，這次電話會議，包括問答部分，將包括與我們公司的預期未來業績相關的陳述，因此這些陳述屬於前瞻性陳述。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。我們的收益報告和其他 SEC 文件中描述了前瞻性陳述所面臨的風險和不確定性。

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 Relations website at investors.powerschool.com.

今天的講話還將提及非公認會計準則財務指標。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文稿中提供，這些信息均發佈在 PowerSchool 投資者關係網站 Investors.powerschool.com 上。

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

此次通話的重播也將發佈到同一網站上。

I will now turn the call over to Hardeep.

我現在將把電話轉給哈迪普。

Thanks, Shane. Thanks to everyone for joining us for PowerSchool's second quarter earnings call. We had a great second quarter where we increased the adoption of our expanded platform with large districts and states, saw continued strength in our innovative data solutions and drove outstanding financial results.

謝謝，謝恩。感謝大家參加 PowerSchool 第二季度財報電話會議。第二季度的表現非常出色，我們在大型地區和州中增加了擴展平台的採用，看到了我們創新數據解決方案的持續優勢，並推動了出色的財務業績。

The second quarter results are summarized on Slide 4, where you will see we delivered another quarter of double-digit ARR growth and net revenue retention rate expansion. Revenue grew 10% year-over-year to $174 million at the top end of our previously communicated guidance.

第二季度業績總結在幻燈片 4 中，您將看到我們又一個季度實現了兩位數的 ARR 增長和淨收入保留率擴張。收入同比增長 10%，達到我們之前公佈的指導上限的 1.74 億美元。

Adjusted EBITDA grew 26% year-over-year to $61 million, exceeding our previously communicated guidance range and was the continued expansion of our profitability profile coming in at a 35% margin.

調整後 EBITDA 同比增長 26%，達到 6100 萬美元，超出了我們之前傳達的指導範圍，並且我們的盈利能力持續擴大，利潤率達到 35%。

Net revenue retention grew another 40 basis points to 109.5% on a record quarterly sales to our existing customers. Given the continued strength and the strong momentum in our business, we are reiterating our commitment to double-digit revenue growth and increasing our margin guidance for the full year. This success is the result of significant momentum we are seeing in many facets of our business, including momentum in bookings, solution innovation and platform and international expansion.

現有客戶的季度銷售額創歷史新高，淨收入保留率又增長了 40 個基點，達到 109.5%。鑑於我們業務的持續實力和強勁勢頭，我們重申對兩位數收入增長的承諾，並提高全年利潤指引。這一成功是我們在業務的許多方面看到的巨大動力的結果，包括預訂、解決方案創新和平台以及國際擴張的動力。

I'll start on Slide 5 with our customer bookings momentum. In our seasonally strongest selling quarter, we saw record results for new and cross-sell our business. We continue to see a trend in winning very large deals, which we define as deals that are over $1 million in combined ARR and nonrecurring revenue. We've booked a record 5 such deals in the second quarter, which brings our year-to-date large deal combined ARR and nonrecurring value of $31 million, which compares to $11 million in value in the first half of last year.

我將從幻燈片 5 開始介紹我們的客戶預訂勢頭。在季節性銷售最強勁的季度，我們的新業務和交叉銷售業務取得了創紀錄的業績。我們繼續看到贏得超大型交易的趨勢，我們將其定義為 ARR 和非經常性收入合計超過 100 萬美元的交易。我們在第二季度預訂了創紀錄的 5 筆此類交易，這使得我們今年迄今為止的大型交易的 ARR 和非經常性價值合計達到 3100 萬美元，而去年上半年的價值為 1100 萬美元。

Our pipeline remains strong with a wide array of opportunities that we will continue to work through in the second half. We are excited to announce another new state level contract, a new local win with the State of Montana Office of Public Instruction. Montana selected Unified Insights and Connected Intelligence to supercharge their use of longitudinal data to improve the outcomes of nearly 150,000 public K-12 students.

我們的渠道仍然強勁，有很多機會，我們將在下半年繼續努力。我們很高興地宣布另一份新的州級合同，這是與蒙大拿州公共教育辦公室的一項新的當地合同。蒙大拿州選擇統一洞察和互聯智能來加強縱向數據的使用，以改善近 150,000 名公立 K-12 學生的成績。

From an ARR by product perspective, the growth drivers in the quarter were diverse with particular strength in our Student Information Cloud, Student Success Cloud, Educator Recruitment and Workforce Development Cloud. And as with the prior quarter, our data solutions continue to exceed expectations with ARR growth of nearly 100% versus last year, demonstrating the value and the leadership of our differentiated and comprehensive platform of cloud solutions and our unique comprehensive analytics capabilities.

從按產品的 ARR 角度來看，本季度的增長動力多種多樣，其中學生信息雲、學生成功云、教育者招聘和勞動力發展雲的優勢尤為明顯。與上一季度一樣，我們的數據解決方案繼續超出預期，ARR 較去年增長近 100%，展示了我們差異化的綜合雲解決方案平台的價值和領導力以及我們獨特的綜合分析能力。

This brings me to the momentum and innovation that we are seeing in the business as summarized on Slide 6. In Q2, we doubled down on innovation, ensuring we are anticipating the needs of our customers, particularly regarding the data analytics and AI. At our recent EDGE User Conference in Orlando, we announced 3 major innovations. First, the expansion of our Connected Intelligence Data as a service platform; second, our new My PowerSchool unified user experience for students and families and third of our expanded generative AI capabilities and road map.

這讓我想到了幻燈片 6 中總結的我們在業務中看到的動力和創新。在第二季度，我們加倍創新，確保我們能夠預測客戶的需求，特別是在數據分析和人工智能方面。在最近於奧蘭多舉行的 EDGE 用戶大會上，我們宣布了 3 項重大創新。首先，擴展我們的互聯智能數據作為服務平台；第二，我們為學生和家庭提供的新的 My PowerSchool 統一用戶體驗，第三，我們擴展的生成人工智能功能和路線圖。

The strong customer demand for effective data analytics is why we develop Connected Intelligence, the industry's first turnkey fully managed data as a service platform for education and government agencies on Snowflake Data Cloud. In June, Snowflake awarded PowerSchool, their 2023 Powered by Snowflake Growth Partner of the Year Award for Connected Intelligence.

客戶對有效數據分析的強烈需求是我們開發 Connected Intelligence 的原因，這是業界第一個在 Snowflake Data Cloud 上為教育和政府機構提供交鑰匙完全託管數據即服務平台。 6 月，Snowflake 授予 PowerSchool 2023 年 Powered by Snowflake 年度互聯智能增長合作夥伴獎。

Combining Connected Intelligence with our powerful Unified Insight analytics layer, we are supporting districts and states with K-20 longitudinal data systems across power school and any other data sources, providing our customers with limitless capabilities to understand the trends, factors, details and gaps to improve education outcome.

將互聯智能與我們強大的統一洞察分析層相結合，我們通過電力學校和任何其他數據源的K-20 縱向數據系統為地區和州提供支持，為我們的客戶提供無限的能力來了解趨勢、因素、細節和差距提高教育成果。

In the second quarter, 7 of the top 10 deals included either Unified Insight or Connected Intelligence, and 4 of these deals included both solutions. Notably, we are very excited to further our partnership with the Los Angeles Unified School District, the second largest school district in the U.S. with nearly 500,000 students. Ranking among 1 of the largest deals for us and most comprehensive deployment of a full analytics capabilities in the country. LAUSD purchased our entire Unified Insights and Connected Intelligence solutions to power whole child view and drive insights across their data sources for use throughout their district needs.

第二季度，前 10 筆交易中有 7 筆涉及 Unified Insight 或 Connected Intelligence，其中 4 筆交易同時包含這兩種解決方案。值得注意的是，我們非常高興能夠進一步與洛杉磯聯合學區合作，該學區是美國第二大學區，擁有近 500,000 名學生。躋身我們最大的交易之一，並且是該國最全面的完整分析能力部署。洛杉磯聯合學區購買了我們的整個統一洞察和互聯智能解決方案，以支持整個兒童的視圖並推動跨數據源的洞察，以滿足整個學區的需求。

These data products are also supporting broader cross-sell of our other products. As an example, in the second quarter, the Newark Board of Education purchased both Connected Intelligence and Unified Insights MTSS solution along with adding assessment and curriculum planning on top of their existing use of over SIS, eCollect Forms and Unified Insights product.

這些數據產品還支持我們其他產品的更廣泛的交叉銷售。例如，在第二季度，紐瓦克教育委員會購買了 Connected Intelligence 和 Unified Insights MTSS 解決方案，並在現有的 SIS、eCollect Forms 和 Unified Insights 產品的基礎上添加了評估和課程規劃。

Additionally, the Dallas Independent School District purchase Unified Insights and MTSS to overlay their existing user PowerSchool SIS, enrollment and special education solutions. These wins showcase our ability to launch timely products organically and inorganically that are differentiated and address critical market needs supported by our access and deep understanding of the challenges and opportunities in our 15,000-plus customers.

此外，達拉斯獨立學區購買了 Unified Insights 和 MTSS，以覆蓋其現有的用戶 PowerSchool SIS、入學和特殊教育解決方案。這些勝利展示了我們通過有機和無機方式及時推出差異化產品的能力，並通過我們對 15,000 多名客戶的挑戰和機遇的了解和深入了解來滿足關鍵的市場需求。

We recently published a 2023 education focus report that highlighted many trends in the industry based on a survey of over 1,750 educators. And 1 highlighted finding was that only 2 in 10 educators say that they have the data, they need to evaluate teaching intervention success, which supports the demand we are seeing in their own data products.

我們最近發布了一份 2023 年教育焦點報告，該報告基於對 1,750 多名教育工作者的調查，強調了該行業的許多趨勢。一項突出的發現是，只有十分之二的教育工作者表示他們擁有數據，他們需要評估教學乾預的成功，這支持了我們在他們自己的數據產品中看到的需求。

At our EDGE Conference, we also announced My PowerSchool, a new, cohesive user experience that consolidates all relevant information and applications into a single streamlined platform that is tailored to a specific user personas. My PowerSchool simplifies how families interact with their children's schools, how teachers interact with the students and families and how core technology leaders manage their PowerSchool solutions by providing a central point of access based on if the user is a student, family member, educator or administrator.

在我們的 EDGE 會議上，我們還推出了 My PowerSchool，這是一種新的、有凝聚力的用戶體驗，它將所有相關信息和應用程序整合到一個針對特定用戶角色定制的簡化平台中。 My PowerSchool 通過根據用戶是學生、家庭成員、教育工作者還是管理員提供中心訪問點，簡化了家庭與子女學校的互動方式、教師與學生和家庭的互動方式以及核心技術領導者管理PowerSchool 解決方案的方式。

From assignments and grades to attendance and also includes a new payments module, My PowerSchool consolidate all the information families and students need in a single user interface. This will help support additional cross-sell and improve our existing customer experience.

從作業、成績到出勤，My PowerSchool 還包括一個新的支付模塊，將家庭和學生所需的所有信息整合到一個用戶界面中。這將有助於支持額外的交叉銷售並改善我們現有的客戶體驗。

Finally, we are excited about the tremendous opportunity for AI to accelerate our product road map and business model. We are already leveraging AI in several of our existing products, including MTSS and Learning Navigation to deliver personalized intervention and learnings based on individual student needs and learning goals.

最後，我們對人工智能加速我們的產品路線圖和商業模式的巨大機會感到興奮。我們已經在包括 MTSS 和學習導航在內的多個現有產品中利用人工智能，根據個別學生的需求和學習目標提供個性化的干預和學習。

At the EDGE event, we demonstrated our latest generative AI functionality that will save educators a significant amount of time in their day to day. First, we have embedded within our Performance Matters Assessment solution an automated generator that creates assessment questions that are aligned to a desired learning objective, grade level, subject and standard, which the teacher can use to deliver more frequent formative assessments at scale.

在 EDGE 活動中，我們展示了最新的生成式 AI 功能，該功能將為教育工作者的日常工作節省大量時間。首先，我們在績效評估解決方案中嵌入了一個自動生成器，該生成器可以創建與所需學習目標、年級水平、主題和標準相一致的評估問題，教師可以使用這些問題來大規模地提供更頻繁的形成性評估。

Second, we previewed 1 of the generative AI capabilities that is coming to Connected Intelligence. A top to data functionality that will help nontechnical users offer solutions get powerful data insights easily. We have been able to accelerate these generative AI roadmaps throughout our recent announced collaboration with Microsoft Azure's OpenAI service and the usage of their OpenAI large language models.

其次，我們預覽了互聯智能即將推出的生成式人工智能功能之一。頂級數據功能將幫助非技術用戶提供解決方案輕鬆獲得強大的數據洞察。通過最近宣布的與 Microsoft Azure 的 OpenAI 服務的合作以及使用其 OpenAI 大語言模型，我們已經能夠加速這些生成式 AI 路線圖的發展。

These product innovations are stepping stones towards a very significant opportunity for PowerSchool given our unique position to monetize generative AI in our solutions entrenched with our customer base and opens up a $100 billion personalized TAM.

這些產品創新是PowerSchool 邁向非常重要機會的墊腳石，因為我們擁有獨特的地位，可以在我們的解決方案中利用生成式AI 貨幣化，這些解決方案根植於我們的客戶群，並開闢了價值1000 億美元的個性化TAM。

Moving to Slide 7. We are continually investing to expand our business in highly strategic and capital efficient ways. This expansion includes growing our platform as well as expanding our geographical footprint. As a reminder, in July, we announced a significant advancement in our home communication solutions with the planned acquisition of SchoolMessenger, a leading provider of K-12 communication tool in North America. The unified communications solution further expands our product offerings and has been a top focus for our customers given the need to consolidate fragmented school to family interaction technologies.

轉向幻燈片 7。我們不斷投資，以高度戰略性和資本效率的方式擴展我們的業務。此次擴張包括發展我們的平台以及擴大我們的地理足跡。提醒一下，7 月份，我們宣布計劃收購北美 K-12 通信工具領先提供商 SchoolMessenger，從而在我們的家庭通信解決方案方面取得重大進展。統一通信解決方案進一步擴展了我們的產品範圍，並且由於需要整合分散的學校與家庭交互技術，因此一直是我們客戶的首要關注點。

The synergies we see with the addition of these communication capabilities span several of our clouds, including within our Student Information Cloud for deep integration of student and class data into My PowerSchool for a centralized experience with richer communication content and automation.

通過添加這些通信功能，我們看到的協同效應跨越了我們的多個雲，包括在我們的學生信息雲中，用於將學生和班級數據深度集成到My PowerSchool 中，從而提供更豐富的通信內容和自動化的集中體驗。

Within our Personalized Learning Cloud for integrated 2-way chat and notification embedded into Schoology and other classroom solutions, and within our Student Success Cloud for improved engagement with families to improve attendance and at-risk interventions.

在我們的個性化學習雲中，可將雙向聊天和通知嵌入到 Schoology 和其他課堂解決方案中；在我們的學生成功云中，可改善與家庭的互動，從而提高出勤率和風險干預措施。

We are also laser-focused on our continued international growth and momentum. In July, we announced our latest international channel partner, Samart Telcoms, who will help us support expansion in Thailand and the neighboring regions with plans to serve more than 100,000 students in Thailand in next year. This continues our very focused partnership strategy to have strong commitments from our partners in key regions globally. We continue to see growth in our international pipeline.

我們還高度關注我們持續的國際增長和勢頭。 7 月，我們宣布了最新的國際渠道合作夥伴 Samart Telcoms，該合作夥伴將幫助我們支持在泰國及周邊地區的擴張，併計劃明年為泰國超過 100,000 名學生提供服務。這延續了我們非常專注的合作夥伴戰略，以獲得全球關鍵地區合作夥伴的堅定承諾。我們的國際管道繼續增長。

To summarize, this was a great quarter with record sales and record adjusted EBITDA that beat our guidance. Our pipeline continues to grow supported by several large deals. Our investments in innovation and platform expansion are driving continued demand of our differentiated cloud and analytics solutions, enabling us to consistently deliver long-term durable growth and margin expansion.

總而言之，這是一個出色的季度，銷售額創歷史新高，調整後的 EBITDA 也創歷史新高，超出了我們的預期。在幾筆大型交易的支持下，我們的管道繼續增長。我們對創新和平台擴展的投資推動了對我們差異化雲和分析解決方案的持續需求，使我們能夠持續實現長期持久增長和利潤擴張。

Let me now turn the call over to Eric to cover the second quarter financial results.

現在讓我把電話轉給埃里克，介紹第二季度的財務業績。

Thank you, Hardeep. We delivered a great second quarter highlighted by continued execution on our top line growth and margin expansion, driven by consistent strong demand across our product portfolio and strength in our market-leading data and analytics offerings.

謝謝你，哈迪普。在我們的產品組合持續強勁的需求以及我們市場領先的數據和分析產品的實力的推動下，我們第二季度的業績表現出色，突出表現在我們的營收增長和利潤擴張方面的持續執行。

As summarized on Slide 8, we delivered second quarter total revenue of $174 million representing a 10% year-over-year increase coming in at the top end of our guidance range we provided in the last earnings call. Subscription and support revenue grew 9% year-over-year to $147 million and accounted for 84% of total revenue in the quarter. Subscription and support revenue from the Puerto Rico Department of Education deal was minimal in the quarter as our teams continue to work diligently to implement our best-in-class [SEL] solution for the entire territory.

正如幻燈片 8 所總結的那樣，我們第二季度的總收入為 1.74 億美元，同比增長 10%，處於我們在上次財報電話會議中提供的指導範圍的上限。訂閱和支持收入同比增長 9%，達到 1.47 億美元，佔本季度總收入的 84%。本季度來自波多黎各教育部交易的訂閱和支持收入微乎其微，因為我們的團隊繼續努力工作，為整個地區實施我們一流的 [SEL] 解決方案。

As a reminder, subscription revenue may lag ARR in these larger deals given the complex implementation deliverables whereby subscription revenue typically does not start until the solution is delivered to the customer.

提醒一下，在這些較大的交易中，鑑於復雜的實施交付成果，訂閱收入可能會滯後於 ARR，而訂閱收入通常要等到解決方案交付給客戶後才會開始。

Revenue from our Services business totaled $20 million in the quarter, representing 6% growth over the same time period last year. We continue to drive the efficiency and velocity of our implementations, which increases the time to value for our customers.

本季度服務業務收入總計 2000 萬美元，比去年同期增長 6%。我們不斷提高實施的效率和速度，從而縮短為客戶實現價值的時間。

Revenue from license and other totaled $7 million for the quarter, more than doubling over the prior period year. The main driver was the exciting Connected Intelligence LAUSD deal, which is $14 million in total value over the 3-year contract with approximately $4 million in upfront license fees. As I've mentioned previously, our L&O revenue can fluctuate significantly on a quarterly basis.

該季度來自許可和其他的收入總計 700 萬美元，比上年同期增長了一倍多。主要推動因素是激動人心的 Connected Intelligence LAUSD 交易，該交易為期 3 年，合同總價值 1,400 萬美元，其中預付許可費約為 400 萬美元。正如我之前提到的，我們的 L&O 收入可能會按季度大幅波動。

We ended the quarter with an annual recurring revenue balance of $636 million, representing a 10% year-over-year increase as we continue to cross-sell successfully, attract new logos and maintain strong retention rates. Our net revenue retention rate came in at 109.5%, up 220 basis points year-over-year and improving 40 basis points versus our first quarter of this year. This is a record net revenue retention performance.

截至本季度末，我們的年度經常性收入餘額為 6.36 億美元，同比增長 10%，因為我們繼續成功進行交叉銷售、吸引新徽標並保持強勁的保留率。我們的淨收入保留率為 109.5%，同比增長 220 個基點，比今年第一季度提高 40 個基點。這是創紀錄的淨收入保留業績。

Adjusted gross profit for the quarter came in at $124 million with a 71.4% margin representing a 340-basis point year-over-year improvement, driven by greater operational scale, reduced third-party costs and the flow-through benefit from the exciting LAUSD deal.

本季度調整後毛利潤為 1.24 億美元，利潤率為 71.4%，同比提高 340 個基點，這得益於運營規模擴大、第三方成本降低以及令人興奮的 LAUSD 帶來的流通效益交易。

Moving to the second quarter operating expenses. Non-GAAP research and development expense came in at $21 million representing 12.1% of revenue compared with 14.1% in the same time period last year. This 200-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 we continue to invest in game-changing innovation to drive long-term growth, including capitalized R&D expenses, the total invested in R&D was 18% of revenue compared with 21.7% last year, representing a 370-basis point improvement.

轉向第二季度的運營支出。非 GAAP 研發費用為 2100 萬美元，佔收入的 12.1%，而去年同期為 14.1%。調整後的研發費用佔收入的百分比下降了 200 個基點，反映了我們研發模式的效率和成本狀況的改善，同時我們繼續投資於改變遊戲規則的創新以推動長期增長，包括資本化研發費用、研發總投入佔收入的18%，較去年的21.7% 提高了370 個基點。

Non-GAAP SG&A expense totaled $42 million in the second quarter, representing 24.1% of revenue compared with $37 million or 23.3% of revenue in the second quarter of last year. The increase reflects investments we are making in our sales organization and go-to-market activities that will fuel our future top line growth.

第二季度非 GAAP SG&A 費用總計 4200 萬美元，佔收入的 24.1%，而去年第二季度為 3700 萬美元，佔收入的 23.3%。這一增長反映了我們對銷售組織和上市活動的投資，這將推動我們未來的收入增長。

Second quarter adjusted EBITDA exceeded the high end of our guidance range, coming in at $61 million, representing a 35.2% margin, which was 430 basis points better than last year.

第二季度調整後 EBITDA 超出了我們指導範圍的上限，達到 6100 萬美元，利潤率為 35.2%，比去年好 430 個基點。

Non-GAAP net income in the second quarter was $0.23 per fully diluted share, up $0.01 or 5% from the $0.22 per diluted share we had in the same time period last year.

第二季度非 GAAP 淨利潤為每股完全稀釋每股 0.23 美元，比去年同期每股稀釋每股 0.22 美元增長 0.01 美元，即 5%。

Second quarter free cash flow which is seasonally a negative cash flow quarter given a significant amount of our renewals happened in the third quarter was negative $44 million compared with negative $28 million in the same time period last year. This is driven primarily by the change in net working capital and higher interest expense versus last year.

由於第三季度發生了大量續約，第二季度自由現金流為負 4400 萬美元，而去年同期為負 2800 萬美元，因此季節性現金流為負。這主要是由於淨營運資本的變化和與去年相比更高的利息支出造成的。

Moving to the balance sheet. We ended the quarter with $28 million in cash and equivalents an increase of 84% over the same time period last year. During the quarter, we drew $10 million on our revolver compared with a draw of $40 million in the same time period last year, which reflects our strong and improving cash generation profile. We have since paid off the $10 million revolver draw in July. Our net debt leverage at the end of the quarter was 3.3x compared with 4.8x a year earlier.

轉向資產負債表。截至本季度末，我們的現金及等價物為 2800 萬美元，比去年同期增長 84%。本季度，我們的左輪手槍提取了 1000 萬美元，而去年同期提取了 4000 萬美元，這反映了我們強勁且不斷改善的現金生成狀況。我們已經在 7 月份還清了 1000 萬美元的左輪手槍抽獎。本季度末我們的淨債務槓桿率為 3.3 倍，而去年同期為 4.8 倍。

As Hardeep mentioned, we're excited about the prospect of adding SchoolMessenger to our platform. We expect the transaction to close in September and will fund the $300 million purchase price with an approximate even split between cash on hand and our existing debt facilities.

正如 Hardeep 提到的，我們對將 SchoolMessenger 添加到我們的平台的前景感到興奮。我們預計該交易將於 9 月份完成，並將為 3 億美元的收購價格提供資金，手頭現金和我們現有的債務融資之間大致平分。

Now turning to our third quarter and full year 2023 financial outlook on Slide 9. Given that the acquisition has not yet closed, our guidance today does not include any expected contribution from SchoolMessenger. During our upcoming Investor Day in mid-September, we plan to provide updated guidance for the full year, including SchoolMessenger if the transaction is closed by then.

現在轉向幻燈片 9 上我們的第三季度和 2023 年全年財務展望。鑑於收購尚未完成，我們今天的指導不包括 SchoolMessenger 的任何預期貢獻。在即將到來的 9 月中旬投資者日期間，我們計劃提供全年的最新指導，包括 SchoolMessenger（如果屆時交易已完成）。

For the third quarter, we expect total revenue in the range of $178 million to $181 million, consistent with our financial model going into 2023. We expect third quarter adjusted EBITDA to be in the range of $55 million to $57 million, representing a 31.2% margin at the midpoint. This incorporates the return of our in-person market-leading EDGE User Conference as well as the delivery of the scanner component of our Puerto Rico contract, which customarily carries a lower margin profile.

對於第三季度，我們預計總收入在1.78 億美元至1.81 億美元之間，這與我們進入2023 年的財務模型一致。我們預計第三季度調整後EBITDA 將在5500 萬美元至5700 萬美元之間，佔31.2%中點處的邊距。這包括我們市場領先的 EDGE 用戶面對面會議的回歸，以及波多黎各合同中掃描儀組件的交付，該合同通常利潤率較低。

For the full year 2023, we are increasing our guidance for adjusted EBITDA to a range of $226 million to $230 million, representing a 33% margin at the midpoint. Consistent with our stated goal of delivering low double-digit annual revenue growth, we are reiterating our full year 2023 guidance of $688 million to $694 million with the midpoint representing a 10% year-over-year growth rate.

對於 2023 年全年，我們將調整後 EBITDA 的指導提高至 2.26 億美元至 2.3 億美元的範圍，即中點利潤率為 33%。與我們實現兩位數年收入低增長的既定目標相一致，我們重申 2023 年全年營收目標為 6.88 億美元至 6.94 億美元，其中中點代表 10% 的同比增長率。

For modeling purposes, we expect full year capital expenditures, including capitalized software of approximately $42 million to $46 million and share-based compensation expense of approximately $65 million to $69 million. Fully diluted shares by the end of the year are expected to be in the range of 203 million to 207 million shares.

出於建模目的，我們預計全年資本支出，包括約 4200 萬至 4600 萬美元的資本化軟件和約 6500 萬至 6900 萬美元的股權激勵費用。到今年年底，完全稀釋後的股份預計將在2.03億股至2.07億股之間。

As a reminder, we will be hosting our inaugural Investor Day on Thursday, September 14 in New York City. We're excited to share updates on our product road map, go-to-market strategy, international playbook, long-term financial targets and much more.

謹此提醒，我們將於 9 月 14 日星期四在紐約市舉辦首屆投資者日活動。我們很高興分享我們的產品路線圖、上市策略、國際策略、長期財務目標等方面的最新信息。

In summary, this was a fantastic quarter. We are growing the footprint of our platform of software and data solutions across our customer base, as well as demonstrating that this platform will continue to attract new customers and state level deals. We're also committed to driving margins higher as demonstrated by our guidance raise for the full year, which is 200 basis points above full year 2022 and ahead of our initial outlook that we provided in February.

總而言之，這是一個非常棒的季度。我們正在擴大我們的軟件和數據解決方案平台在客戶群中的覆蓋範圍，並證明該平台將繼續吸引新客戶和州級交易。我們還致力於提高利潤率，我們對全年指導的上調就證明了這一點，該指導比 2022 年全年高出 200 個基點，並且比我們 2 月份提供的初步預期要早。

We will continue to execute in the second half on our strategies around innovation, go-to-market and customer success with a focus on growth and profitability.

下半年，我們將繼續執行圍繞創新、進入市場和客戶成功的戰略，重點關注增長和盈利能力。

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，請您開通問答線路。

(Operator Instructions) And the first question comes from the line of Joe Vruwink with Baird.

（操作員說明）第一個問題來自 Joe Vruwink 和 Baird 的線路。

I guess I wanted to start on the data products. Can you maybe just speak to how the progress here compares to your internal expectations so far? And is the early success actually may be causing a rebalancing of resources or a change in product road maps towards this direction of PowerSchool.

我想我想從數據產品開始。您能否談談目前的進展與您的內部期望相比如何？早期的成功實際上可能會導致資源的重新平衡或產品路線圖朝 PowerSchool 的這一方向發生變化。

And as a quick follow-up, just from a financial standpoint, does growth in the data products come through at any different margin framework than has been the case for the rest of the Unified platform so far?

作為快速跟進，僅從財務角度來看，數據產品的增長是否以與迄今為止統一平台其他部分不同的利潤框架實現？

Thanks, Joe. This is Hardeep. Thanks for the question. When you look at from our roadmap, even at the time of IPO, we actually highlighted data product is going to be 1 of our big differentiators in the market because have access to all the different systems and a variety of data. And as we were seeing post-COVID, there's a lot of focus for districts and state to have a better understanding of where the student engagements are, where the learning gaps are, how do you provide the right interventions. And then also, there's a big focus now, which is around not just college part, but even career pathways for the students. So the states are looking for better visibility.

謝謝，喬。這是哈迪普。謝謝你的提問。當你從我們的路線圖來看時，即使在首次公開募股時，我們實際上也強調數據產品將成為我們在市場上的一大差異化因素，因為可以訪問所有不同的系統和各種數據。正如我們在新冠疫情后所看到的，各學區和州非常關注如何更好地了解學生的參與情況、學習差距在哪里以及如何提供正確的干預措施。此外，現在的一個重點不僅是大學部分，甚至是學生的職業道路。因此，各州正在尋求更好的可見性。

So we have actually been focused on the data products. It is actually beating our expectations in terms of both the Unified Insights as well as our Connected Intelligence product, which is our Data as a Service, platform. One of the key highlights is that we are very unique in the -- being able to provide the Unified Insights, which have the breadth as well as this Data as a Service platform, which is also unique, that's creating the extra demand for us in terms of both from large districts as well as state.

所以我們實際上一直專注於數據產品。實際上，它在統一洞察以及我們的互聯智能產品（即我們的數據即服務平台）方面都超出了我們的預期。關鍵亮點之一是我們在以下方面非常獨特——能夠提供具有廣度的統一見解以及這個數據即服務平台，這也是獨一無二的，這為我們創造了額外的需求來自大地區和州的條款。

We do expect this to continue because we are seeing the interest in the pipeline to be exceptionally strong. And we are putting a fair amount of resources in our roadmap already to continue. So 1 of the -- as I mentioned at the EDGE conference, we highlighted our investment in now almost a K-20 dashboards through our Connected Intelligence, and that allows even states like Montana and others to be able to really have a better longitudinal view across all the different elements so they can plan better on career pathways for students. So it's a lot of exciting work here.

我們確實預計這種情況會持續下去，因為我們看到人們對管道的興趣異常強烈。我們已經在路線圖中投入了大量資源以繼續下去。因此，正如我在 EDGE 會議上提到的，我們強調了我們現在通過互聯智能對幾乎 K-20 儀表板的投資，這甚至使蒙大拿州和其他州能夠真正擁有更好的縱向視圖涵蓋所有不同的要素，以便他們可以更好地為學生規劃職業道路。所以這裡有很多令人興奮的工作。

And Joe, this is Eric. Just to follow up on the question around the margin profile. So as Hardeep mentioned, we are investing and we are reallocating resources to this exciting area. So as with any new products that go out, I mean, the margins are slightly lower than some of our more mature products.

喬，這是埃里克。只是為了跟進有關保證金概況的問題。正如哈迪普提到的，我們正在投資並重新分配資源到這個令人興奮的領域。因此，與任何推出的新產品一樣，我的意思是，利潤率略低於我們一些更成熟的產品。

But as that continues to scale and as we continue to see revenue pick up in that area, the margin profile starts to kind of rebalance out. But given the investments we're making in there, the margins are a little bit lower, again, I think the value and the beauty of having a platform is we have other products that are more established that are generating a much higher margin. So in aggregate, we don't see any kind of dilution to the margin profile.

但隨著這一規模的不斷擴大，並且我們繼續看到該領域的收入回升，利潤率狀況開始重新平衡。但考慮到我們在那裡進行的投資，利潤率有點低，我認為擁有一個平台的價值和美妙之處在於我們擁有其他更成熟的產品，可以產生更高的利潤。因此，總的來說，我們沒有看到利潤率出現任何形式的稀釋。

The next question comes from the line of Brent Thill with Jefferies.

下一個問題來自布倫特·希爾和杰弗里斯的對話。

Just on the revenue guide for the year, you brought the bottom line up many investors asking what you're seeing in the top line. Why maintain given the strength of some of these large wins that you highlighted. Can you just give us some color in terms of what you're seeing on that side?

就在今年的收入指南中，您提出了許多投資者的底線，詢問您在頂線中看到了什麼。考慮到您所強調的一些重大勝利的實力，為什麼還要堅持呢？你能給我們一些你在那邊看到的情況的信息嗎？

Sure, Brent. I can start and I'll ask Eric to jump in as well. When you look at from what we have always said that we are a low double-digit grower. And that's really strength of our business is that predictable and sustainable growth, but we've also said that we have a huge opportunity here to continue margin expansion. And that's why you see not only our margin coming better, we have increased the guidance as well.

當然，布倫特。我可以開始了，我也會請埃里克加入。當你從我們一直所說的來看，我們是一個低兩位數的種植者。我們業務的真正優勢在於可預測和可持續的增長，但我們也說過，我們在這裡有巨大的機會繼續擴大利潤率。這就是為什麼您不僅看到我們的利潤率變得更好，而且我們還增加了指導。

Now you will see some amount of seasonality around the quarters as well as large deals, which create some level of quarter beat. So having the Q1 beat and now Q2 beat definitely gives you an expectation that, hey, why are we not increasing? So we do have a very strong deal -- larger profile for the last 2 quarters, which is definitely creating that beat. We do think there is more upside, but we don't want to get ahead of ourselves.

現在，您將看到各個季度的一定程度的季節性以及大額交易，這會產生一定程度的季度節拍。因此，第一季度的增長和現在第二季度的增長肯定會讓你產生一種期望，嘿，為什麼我們不增加？因此，我們確實達成了一項非常強有力的協議——過去兩個季度的規模更大，這肯定會創造這種節奏。我們確實認為還有更多的好處，但我們不想超越自己。

Again, we want the market to continue to trust our predictable double-digit -- low double-digit guidance, and that's what we're trying to not get ahead. Now we do have an opportunity with the SchoolMessenger, around the Investor Day, we would actually give you the full perspective for the year as well as how we predict the next year to be.

再次，我們希望市場繼續相信我們可預測的兩位數——低兩位數指導，而這正是我們試圖避免的。現在，我們確實有機會與 SchoolMessenger 合作，在投資者日前後，我們實際上會為您提供今年的完整視角以及我們對明年的預測。

Some of the larger wins that you've landed, are those tracking to implementation times that are on time or any delay in those larger deals that I think you've won that may be going a little slower.

您獲得的一些較大的勝利是那些跟踪按時實施時間的項目，或者是那些我認為您已經贏得的較大交易中的任何延遲，這些交易的進度可能會慢一些。

Sure. I can guess and I think I'll let Eric jump in here as well. We are progressing well. In fact, when you look at our implementations for Puerto Rico, we actually almost a go live right now. So that's actually a record time to bring almost 275,000 multi-district whole territory deployment go live. So we are -- those go-lives are actually tracking exceptionally well.

當然。我能猜到，我想我也會讓埃里克也加入進來。我們進展順利。事實上，當您查看我們在波多黎各的實施時，我們實際上幾乎現在就上線了。因此，這實際上是近 275,000 個跨地區全領土部署上線的創紀錄時間。所以我們——這些上線實際上進展得非常好。

With L.A., we actually did start some of the work with them last year as part of their Whole Child Analytics, which was a small portion. And now they're actually looking at the full entire element of Unified Insights. So we are very much already have laid the foundation. So we do expect that they actually -- in the coming school year, they are going to be able to take advantage of that in a matter of few weeks and months. So most of the large deals are actually tracking very well, and there is no concerns on any go lives or implementation delays. But as you mentioned, there are a little bit of -- couple of months of compared to a weeks for a small district. So there's definitely that revenue -- ARR to revenue aspects, but that's why we are also still committing to the full year guidance.

在洛杉磯，我們去年確實開始了一些與他們合作的工作，作為他們的整體兒童分析的一部分，這只是一小部分。現在他們實際上正在研究統一洞察的全部元素。所以我們已經奠定了基礎。因此，我們確實希望他們實際上 - 在即將到來的學年中，他們將能夠在幾周和幾個月內利用這一點。因此，大多數大型交易實際上進展順利，並且不存在任何上線或實施延遲的問題。但正如您所提到的，對於一個小地區來說，需要幾個月的時間，而不是幾週的時間。因此，肯定存在收入——收入方面的ARR，但這就是為什麼我們仍然致力於全年指導。

Eric, do you want to jump in?

埃里克，你想跳進去嗎？

Yes. I think you answered it quite well, Hardeep. I think the only thing I would just say in addition to that, Brent, is as I had in my prepared remarks, minimal revenue in the quarter for Puerto Rico in Q2, we obviously as we hand the system over to them here shortly, then the revenue will start kicking in. So you'll start to see more contribution in Q3 and for the rest of the year.

是的。我認為你回答得很好，哈迪普。布倫特，我想除此之外我唯一要說的是，正如我在準備好的發言中所說的那樣，波多黎各第二季度的收入極低，顯然我們很快就把系統移交給他們，然後收入將開始增加。因此，您將開始看到第三季度和今年剩餘時間的更多貢獻。

I think the important thing is that we've been really focused on is just continuing to reiterate the full year guidance. There is going to be -- from quarter-to-quarter, there can be some lumpiness in terms of when the revenue kicks in from some of these larger deals. But the important part is, from a full year basis, we're very much on track with the low double-digit growth that we're seeing.

我認為重要的是，我們真正關注的是繼續重申全年指導。從季度到季度，這些較大交易的收入何時開始出現，可能會出現一些波動。但重要的是，從全年來看，我們正在朝著我們所看到的低兩位數增長的軌道前進。

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

下一個問題來自加拿大皇家銀行資本市場公司的馬特·赫德伯格 (Matt Hedberg)。

Hardeep, you continue to call out good growth in international markets, good progress on that front. Just sort of curious, how do you think about allocating resources internationally? What sort of -- we know -- we all know it's a huge opportunity, but maybe just kind of walk us through sort of the steps that you're taking beyond some of the initial investments you're making to sort of plant those seeds and also obviously continue to focus on what is a large domestic opportunity here.

Hardeep，您繼續指出國際市場的良好增長，在這方面取得了良好的進展。只是有點好奇，您如何看待國際資源配置？我們知道，我們都知道這是一個巨大的機會，但也許只是引導我們完成除了為播下這些種子而進行的一些初始投資之外，您正在採取的一些步驟顯然，我們還將繼續關注國內的巨大機遇。

Yes. Great question, Matt. I think I want to reiterate the point I made on a few earnings back about our international strategy. The key element there is it's a huge opportunity. It's almost 7x the size of our U.S. and Canada opportunity, right? So we have a big TAM. There is nobody else internationally who's got the full breadth and depth of the scale to implement and tackle large states, countries and even large private schools who can -- who need these systems. And we are seeing demand really increase after COVID because most of the countries and schools have to deal with the disruption.

是的。好問題，馬特。我想我想重申一下我在一些收益報告中就我們的國際戰略提出的觀點。關鍵因素是這是一個巨大的機會。這幾乎是我們美國和加拿大機會規模的 7 倍，對嗎？所以我們有一個很大的 TAM。國際上沒有其他人擁有如此全面的廣度和深度來實施和解決大型州、國家甚至大型私立學校的問題，他們可以——他們需要這些系統。我們看到，在新冠疫情之後，需求確實增加了，因為大多數國家和學校都必須應對這種干擾。

We are seeing the demand. But we also wanted to be careful, as you pointed out, that there's a huge opportunity in the U.S. for us, right? We have almost a $3.5 billion plus cross-sell TAM just in our U.S. market. So we don't want to completely lean in and we want to focus on very sustainable growth international.

我們看到了需求。但正如您所指出的，我們也想小心，美國對我們來說有巨大的機會，對嗎？僅在美國市場，我們就有近 35 億美元的交叉銷售 TAM。因此，我們不想完全依賴，我們希望專注於非常可持續的國際增長。

With that said, we still believe over the next 3 to 5 years, this is going to be a material almost 10% of our overall revenue. The way we are approaching this is with a very concerted effort with the target markets where we are going to have very exclusive, strong partnerships who are going commit to revenue and student growth in those regions. What that allows us to do is rather than our own boots on the ground in each region for every aspect, we're going to have partners who are going to co-invest with us in building those markets and actually growing them as well.

儘管如此，我們仍然相信在未來 3 到 5 年內，這將占我們總收入的近 10%。我們實現這一目標的方式是與目標市場進行非常一致的努力，我們將在這些目標市場建立非常獨特、強大的合作夥伴關係，他們將致力於這些地區的收入和學生增長。這使我們能夠做的是，我們將擁有與我們共同投資建設這些市場並實際發展這些市場的合作夥伴，而不是我們自己在每個地區的各個方面腳踏實地。

But these are hard commits. They are committing both in terms of dollars as well as in terms of number of students they're going to bring over stuff. And as we have updated over the year, we already have now half a dozen partners with that commitment. And in fact, we -- I mentioned Samart in Thailand. We, in fact, just signed another partner CCS, which is actually in Egypt. Egypt actually has 23 million kids in K-12. And CCS is 1 of the large technology infrastructure provider. And they have also committed almost 0.5 million students over the next 18 months to bring in that region to -- on PowerSchool.

但這些都是艱難的承諾。他們既承諾了金錢，也承諾了他們將帶來的學生數量。隨著我們一年來的更新，我們現在已經有六個合作夥​​伴做出了這一承諾。事實上，我們——我提到了泰國的 Samart。事實上，我們剛剛簽署了另一個合作夥伴 CCS，該合作夥伴實際上位於埃及。埃及實際上有 2300 萬兒童在 K-12 學習。 CCS 是大型技術基礎設施提供商之一。他們還承諾在未來 18 個月內讓近 50 萬名學生進入 PowerSchool。

So that's a way for us to be able to invest sustainably and with partnerships to really grow that business. So far, our goal for this year is about having these 12 strategic partnerships in the different regions where we see the highest demand, and we are on track on that.

因此，這是我們能夠進行可持續投資並通過合作夥伴關係真正發展業務的一種方式。到目前為止，我們今年的目標是在需求最高的不同地區建立這 12 個戰略合作夥伴關係，我們正在朝著這個目標邁進。

That's great. Eric, can I ask you just a quick follow-up. You had a lot of good things to say in your prepared remarks, but record NRR. I mean, in your slide deck, it continues to move up into the right. I'm sort of curious, where could that go? And does your full year guidance assume that, that kind of continues to tick up or kind of stay consistent with what you've seen, but it's been an impressive trend.

那太棒了。埃里克，我可以請你快速跟進一下嗎？您在準備好的發言中說了很多好話，但請記錄 NRR。我的意思是，在你的幻燈片中，它繼續向上移動到右側。我有點好奇，那能去哪裡？您的全年指導是否假設這種情況繼續上升或與您所看到的保持一致，但這是一個令人印象深刻的趨勢。

Thanks for the question, Matt. So we were certainly thrilled with it coming in at 109.5%. What I would just encourage everybody to keep in mind is Q3 is our largest renewal season. So 60-plus percent of our book of business is renewed in Q3. So any level of churn that you're going to have is typically going to happen and be more pronounced in Q3.

謝謝你的提問，馬特。所以我們對它達到 109.5% 的成績當然感到非常興奮。我只是鼓勵大家記住，第三季度是我們最大的續訂季節。因此，我們 60% 以上的業務在第三季度進行了更新。因此，任何級別的客戶流失通常都會發生，並且在第三季度更加明顯。

So from a metric standpoint, I think sequentially, you could see it flat, maybe slightly down for the full year, we believe and expect it to be in the 109-plus percent range. Look, in terms of where it can go, we've got some of the industry-leading renewal rates, really good sticky products. We're seeing a lot of cross-sell momentum. So we are going to be refreshing this for our Investor Day in terms of our outlook there. But suffice to say, I think being in the 110% range and perhaps a little bit beyond that as we go forward in the upcoming years is certainly what we're going to be working towards.

因此，從指標的角度來看，我認為，您可以看到全年持平，甚至可能略有下降，我們相信並預計它會在 109% 以上的範圍內。看，就其發展方向而言，我們擁有一些行業領先的續訂率，非常好的粘性產品。我們看到了大量的交叉銷售勢頭。因此，我們將在投資者日更新我們的展望。但我只想說，我認為在未來幾年裡，我們的目標肯定是在 110% 的範圍內，甚至可能稍微超出這個範圍。

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

下一個問題來自斯蒂芬·謝爾頓和威廉·布萊爾的台詞。

I wanted to all ask about kind of how you're thinking about the sequential trend in ARR heading into the third quarter given what you're seeing on the renewal side, maybe you just kind of talked about it a little bit and then the trend in bookings. Should we be kind of expecting the same seasonal pattern? Do you normally see where ARR is pretty flat sequentially? Or could there be any support from bookings that happened so far in 3Q, especially around the EDGE User Conference that was in the third quarter?

我想問大家，鑑於您在續訂方面看到的情況，您如何看待進入第三季度的 ARR 連續趨勢，也許您只是稍微談論了一下，然後是趨勢在預訂中。我們是否應該期待同樣的季節性模式？您通常是否會看到 ARR 連續比較平穩的地方？或者，第三季度迄今為止發生的預訂是否會提供任何支持，尤其是第三季度 EDGE 用戶大會期間的預訂？

Yes. So I'll let Eric comment around the seasonality in the numbers but you're actually right. Q3 is from a renewals perspective, does create that effect from an ARR. But I think again, we are looking at the full year, we are tracking to double-digit growth on the ARR. And we see a tremendous amount of pipeline and confidence in achieving that.

是的。所以我會讓埃里克評論一下數字中的季節性，但你實際上是對的。第三季度從續訂的角度來看，確實通過 ARR 產生了這種效果。但我再次認為，我們著眼於全年，我們的 ARR 正在實現兩位數的增長。我們看到了巨大的渠道和實現這一目標的信心。

Eric, I'll let you expand that more.

埃里克，我會讓你進一步擴展。

Yes, sure. So I think, Stephen, as you rightly noted, typically, we'll see -- from Q2 to Q3, we'll see ARR pretty much flat. Although the last couple of years, we've seen a tick up a little bit. As Hardeep mentioned, a really strong pipeline. We see a lot of business momentum in Q3. So I actually would not be surprised if we see ARR tick up in Q3 on a sequential basis. It will be at least flat, if not up from our expectations.

是的，當然。所以我認為，斯蒂芬，正如您正確指出的那樣，通常我們會看到 - 從第二季度到第三季度，我們會看到 ARR 幾乎持平。儘管在過去的幾年裡，我們看到了一點點的增長。正如哈迪普提到的，這是一條非常強大的管道。我們在第三季度看到了很大的業務勢頭。因此，如果我們看到第三季度的 ARR 連續上升，我實際上不會感到驚訝。即使沒有達到我們的預期，至少也會持平。

Got it. Very helpful. And then a product question. What's kind of the early feedback you've received on the My PowerSchool dashboard for parents. I know it's still really early, but -- has there been any potential improvement in the user experience for them? I know parents have been wanting more visibility into how their kids are progressing, maybe wasn't that easy for them -- for parents to have access to that visibility before. And then also, how quickly do you plan to roll out My PowerSchool for other user types, think about teachers, administrators, et cetera?

知道了。很有幫助。然後是產品問題。您在 My PowerSchool 家長儀表板上收到的早期反饋是什麼樣的？我知道現在還為時過早，但是——他們的用戶體驗有任何潛在的改進嗎？我知道父母一直希望更多地了解他們的孩子的進步情況，也許對他們來說並不容易——父母以前能夠獲得這種可見性。另外，您計劃多快為其他用戶類型（例如教師、管理員等）推出 My PowerSchool？

Great question, Stephen. I think you remember from the -- our User Conference, we actually -- when we unveiled, we actually literally had phenomenal excitement from our customer base universally. I think this is pretty much any parent, right, who have got kids in school would appreciate that. Right now, pretty much a majority of the school district, you have to go check your report card or grades in 1 system. Your -- any assignments you might be looking at different systems. You have to go to a different systems for paying, for enrolling the students or forms you have to submit that's a whole different systems, your messaging communication on phone lines and other. It's a very fragmented aspect in -- of experience for a parent, which really frustrates parents and it actually prevents them to engage in their students. And as we have seen that if the parents are more engaged, you clearly have a better student outcomes.

好問題，斯蒂芬。我想你還記得——我們的用戶大會，我們實際上——當我們揭曉時，我們的客戶群實際上對我們的普遍興奮感到非常興奮。我認為這幾乎是所有有孩子上學的家長都會感激的。現在，幾乎大多數學區，您都必須在 1 個系統中檢查您的成績單或成績。您可能正在查看不同系統的任何作業。您必須使用不同的系統進行付款，註冊學生或提交表格，這是一個完全不同的系統，您通過電話線等進行消息通信。對於家長來說，這是一個非常碎片化的經歷，這確實讓家長感到沮喪，並且實際上阻礙了他們與學生的互動。正如我們所看到的，如果家長更加積極參與，學生的成績顯然會更好。

So this has been 1 of the requirements. And now we are in a position given all the broader elements we have in our ecosystem in our platform, especially with the acquisition announcement of SchoolMessenger with the communication as well as our payments new product launch, we are able to really provide that full experience for parents to be have one-stop shop where they're coming in and having that end-to-end experience.

這是要求之一。現在，考慮到我們平台生態系統中擁有的所有更廣泛的元素，特別是通過通信收購 SchoolMessenger 的公告以及我們的支付新產品的推出，我們能夠真正為學生提供完整的體驗。父母可以擁有一站式商店，在那裡他們可以進來並獲得端到端的體驗。

And that is something, which we have universally seen as a requirement from a lot of our customers. Some of the solutions we'll try to tackle that don't really have the depth of attendance or grades or report cards. So they only kind of focus on communication part of it, where we are able to really provide them full end-to-end of all elements of different things that parents need to access in 1 place.

我們普遍認為這是許多客戶的要求。我們將嘗試解決的一些解決方案並不真正具有出勤率、成績或成績單的深度。因此，他們只關注其中的溝通部分，我們能夠真正為他們提供父母需要在一個地方訪問的不同事物的完整端到端的所有元素。

We already have signed up actually almost close to 100-plus customers on some of our beta as well as the early control of ability launch. And our goal is by -- in the next 6 months, we would have actually a lot of them already go live with the full with the -- as we integrate SchoolMessenger after the acquisition is closed, then we would actually be able to really have a more -- a full experience and roll out of that detailed time line when the acquisition is closed, we'll announce that. So stay tuned on that, and you will update you on the more detailed roadmap on it.

實際上，我們已經在我們的一些測試版以及能力發布的早期控制中註冊了近 100 多個客戶。我們的目標是——在接下來的 6 個月內，我們實際上會讓其中很多已經完全投入使用——當我們在收購完成後整合 SchoolMessenger 時，那麼我們實際上就能夠真正擁有更全面的體驗，並在收購完成後推出詳細的時間表，我們將宣布這一點。因此，請繼續關注，我們將為您更新更詳細的路線圖。

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

下一個問題來自加布里埃拉·博爾赫斯與高盛的關係。

This is Kelly Valenti on for Gabriela. First 1 for me is just any initial comments on the growth or profitability profile of SchoolMessenger? And kind of what is pricing going to look like for customers who want to add that functionality to their existing products?

我是加布里埃拉的凱莉·瓦倫蒂。我的第一個問題只是對 SchoolMessenger 的增長或盈利能力有何初步評論？對於想要將該功能添加到現有產品的客戶來說，定價會是什麼樣子？

So Kelly, I'll let Eric comment on a little bit on the stuff. I don't think we are in a position given that we have not closed to represent anything on the pricing. I just want to reiterate, it's a very strategic acquisition. In fact, it's 1 of the top demand areas we have seen from our customers that they want to hold comms capability integrated into their SIS, the two-way chat integrated into Schoology and have 1 place for a unified communication. So parents don't have to be with all these fragmented.

凱利，我會讓埃里克對這些事情發表一些評論。鑑於我們尚未就定價發表任何意見，我認為我們目前處於不利地位。我只想重申，這是一次非常具有戰略意義的收購。事實上，這是我們從客戶那裡看到的最大需求領域之一，他們希望將通信功能集成到 SIS 中，將雙向聊天集成到 Schoology 中，並擁有 1 個統一通信的位置。所以父母不必和這些支離破碎的人在一起。

So it's a very strategic acquisition for us. It's a high demand area our customer perspective. And actually, the -- both the growth and the EBITDA profile for SchoolMessenger is actually very similar to PowerSchool. And we actually -- it's going to be actually both growth and EBITDA accretive.

所以這對我們來說是一次非常具有戰略意義的收購。從我們的客戶角度來看，這是一個高需求領域。事實上，SchoolMessenger 的增長和 EBITDA 概況實際上與 PowerSchool 非常相似。事實上，我們實際上會實現增長和 EBITDA 增值。

Eric, do you want to comment a little bit more on the numbers?

埃里克，你想對這些數字發表更多評論嗎？

Yes. So I think you just hit the last part. What I would just say is I think it's important that not only is the strategic asset, but it does come as a profitable company -- scaled out profitable company. So think of the growth and the profit profile of PowerSchool will be very similar for SchoolMessenger, and it will not be dilutive to our financials.

是的。所以我認為你剛剛完成了最後一部分。我想說的是，我認為重要的是，這不僅是戰略資產，而且它確實是一家盈利的公司——規模化盈利的公司。因此，考慮到 PowerSchool 的增長和利潤狀況與 SchoolMessenger 非常相似，並且不會稀釋我們的財務狀況。

All right. Great. And then second one for me. Just around the Microsoft Azure OpenAI announcement, just would be great to get any early feedback from customers and kind of what your longer-term vision is for that partnership?

好的。偉大的。然後是我的第二個。就在 Microsoft Azure OpenAI 發布之際，如果能從客戶那裡獲得任何早期反饋以及您對該合作夥伴關係的長期願景是什麼，那就太好了？

Great question, Kelly. So we actually announced just for everybody's benefit at the ST conference, the Microsoft partnership around the OpenAI. And one of the key elements there, as we have announced, and we previewed this at our EDGE Conference, where we are leveraging -- we already have been using AI for the last couple of years in our systems on at-risk interventions predictability as well as in our Learning Navigation around how we create personalized learning pathways.

好問題，凱利。因此，為了大家的利益，我們實際上在 ST 會議上宣布了 Microsoft 圍繞 OpenAI 的合作夥伴關係。正如我們所宣布的那樣，其中的關鍵要素之一是我們在EDGE 會議上預覽了這一點，我們正在利用這一點- 過去幾年我們已經在我們的系統中使用人工智能來進行風險干預的可預測性，以及我們如何創建個性化學習路徑的學習導航。

With the generative AI partnership now, we are actually adding capabilities right into our Performance Matters Assessment. So lesson plans and items could be created through generative AI. So it saves a lot of time for teachers to create those personalized questions and lesson planning. And the second element of that also is we are integrating that into our Data as a Service platform or Connected Intelligence. So we can actually use that to allow even any administrator or even a normal user to be able to more easily get those insights with almost like generative AI kind of questions on the data. So that will make our analytics product even more differentiators.

現在，通過生成式人工智能合作夥伴關係，我們實際上正在將功能添加到我們的績效評估中。因此，可以通過生成式人工智能來創建課程計劃和項目。因此，教師可以節省大量時間來創建個性化問題和課程計劃。第二個要素也是我們正在將其集成到我們的數據即服務平台或互聯智能中。因此，我們實際上可以使用它來讓任何管理員甚至普通用戶都能夠通過幾乎類似於生成人工智能類型的數據問題來更輕鬆地獲得這些見解。這將使我們的分析產品更具差異化。

Where we are really taking this a bit further is our real differentiator around the fact that we are in the heart of the classroom with all day-to-day activities around the homeworks and the lesson plans by actually bringing personalized learning pathways and personalized homework, which we have a very unique opportunity to really allow now generative AI to be leveraged right in the context to support child on their homework. And being able to really have personalized homework, which actually is a game changer in terms of really allowing kids to be able to have learned better right within the context of the classroom.

我們真正更進一步的地方是我們真正的與眾不同之處在於，我們位於教室的中心，通過實際帶來個性化的學習途徑和個性化的作業，圍繞作業和課程計劃開展所有日常活動，我們有一個非常獨特的機會，可以真正讓現在的生成式人工智能在支持孩子完成家庭作業的背景下得到利用。能夠真正擁有個性化的家庭作業，這實際上是一個遊戲規則的改變者，讓孩子們能夠在課堂上更好地學習。

So they don't -- you're not asking them to spend more time on supplemental and other areas. You are actually making their teacher's life more easier and you're making a student help to write on their day-to-day homework. So that's a very unique opportunity, and we expect again being able to really have a huge market advantage of this by -- as we roll out these systems.

所以他們不會——你並不是要求他們在補充和其他領域花更多的時間。實際上，您使老師的生活變得更加輕鬆，並且使學生幫助寫日常作業。因此，這是一個非常獨特的機會，當我們推出這些系統時，我們希望能夠再次真正擁有巨大的市場優勢。

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

下一個問題來自 Saket Kalia 與巴克萊銀行的關係。

Hardeep, a quick -- maybe a quick question for you here. Associating you're in DC at the moment, I think -- what are you hearing from customers? I guess, on their willingness to spend ESSER funds? And do you see any changes from either the government or school districts or any other sort of constituents as I think we have about another year to sort of earmark some of those funds. Does that make sense?

Hardeep，這是一個簡短的問題——也許是一個簡短的問題。考慮到您現在在華盛頓，我想 — 您從客戶那裡聽到了什麼？我猜想，他們是否願意花費艾索資金？您是否看到政府或學區或任何其他類型的選民有任何變化，因為我認為我們還有大約一年的時間來指定其中一些資金。那有意義嗎？

Yes. Thanks, Saket. And I appreciate everybody's flexibility with our delayed timing. We have a very exciting work we are doing actually with the Department of Education with Secretary Cardona as well as Homeland Security around the whole focus on cybersecurity. And thanks to first lady and the White House to kind of give a forum for us to share some of the work we have already done to be able to show even additional thing, which we actually are offering now what we call free Security as a Service, which will make it available for all -- not just our customers, but any U.S. school districts or state in supporting training and education, how we really protect them against all the different cybersecurity threats.

是的。謝謝，薩凱特。我感謝大家對我們推遲的時間的靈活性。我們正在與教育部、卡多納部長以及國土安全部一起圍繞網絡安全開展一項非常令人興奮的工作。感謝第一夫人和白宮為我們提供了一個論壇，讓我們分享我們已經完成的一些工作，以便能夠展示更多的東西，我們現在實際上正在提供我們所謂的免費安全即服務，這將使所有人都可以使用它——不僅是我們的客戶，還包括任何美國學區或州，以支持培訓和教育，了解我們如何真正保護他們免受所有不同的網絡安全威脅。

I think one of the big advantages we have is there's a lot of legacy systems out there manual touch points. And not only we provide tools on digital transformation by improving those, but we also help districts be more secure in that process of actually managing those transformation. So a lot of exciting opportunity. In fact, we'll be speaking at the conference tomorrow.

我認為我們擁有的一大優勢是有很多遺留系統存在手動接觸點。我們不僅通過改進數字化轉型提供工具，而且還幫助各地區在實際管理這些轉型的過程中更加安全。所以有很多令人興奮的機會。事實上，我們將在明天的會議上發言。

Now to your point about the ESSER. What we see is ESSER continues to be one of the sources of funding for school districts. But last time, as we have mentioned that ESSER is not the -- in all, right? There is a lot of opportunity for funding around digital transformation. Typically, the ROI for it, our solution pays for it by itself because you're saving paper cost and manual costs and as well as in terms of just having to deal with trying to do that without automation.

現在談談埃索的觀點。我們看到，ESSER 仍然是學區的資金來源之一。但上次，正如我們所提到的，埃索並不是——總而言之，對嗎？圍繞數字化轉型有很多融資機會。通常，我們的解決方案本身就可以收回投資回報率，因為您可以節省紙張成本和人工成本，並且只需在沒有自動化的情況下嘗試做到這一點。

So our systems kind of pay for it by even with the normal funding in terms of actually improving the funding spend. What we do see is, again, ESSER continues to provide that cushion. So when you're looking at some of our large deals as well as a lot of our midsized deals, there would be -- sometimes districts would take advantage of some of the ESSER elements in their buy. But we -- most of the districts would comment to us is that these are systems they will do irrespective of ESSER because these are technology systems. It's unlike content or other areas where they might be leveraging short-term spend around -- related to that.

因此，我們的系統甚至可以通過正常資金來實際改善資金支出來支付費用。我們所看到的是，艾索繼續提供這種緩衝。因此，當您查看我們的一些大型交易以及許多中型交易時，有時各地區會在購買中利用一些艾索元素。但我們——大多數地區都會向我們評論說，這些系統是他們將採用的系統，與 ESSER 無關，因為這些是技術系統。這與他們可能利用短期支出的內容或其他領域不同——與此相關。

Now definitely, one of the reasons you're seeing analytics as well is because most of districts want to make their spend much more surgical. So rather than peanut butter spread on making tutoring or content available to address learning gaps, they can have more surgical intervention strategies.

當然，您看到分析的原因之一是因為大多數學區都希望他們的支出更加精確。因此，他們可以採取更多的外科干預策略，而不是通過提供輔導或內容來解決學習差距。

So we are seeing more demand for MTSS and things like that so that their overall ESSER spending is being more effective. Now we do see that to be even still a continued factor because these districts always have these funding. And data and more intervention strategies, which are more surgical, are going to be the norm going forward. So I hope I'll answer that question.

因此，我們看到對 MTSS 等的需求越來越多，因此他們的整體 ESSER 支出更加有效。現在我們確實看到這仍然是一個持續的因素，因為這些地區總是有這些資金。數據和更多的干預策略（更具手術性）將成為未來的常態。所以我希望我能回答這個問題。

That does. That does. That's super helpful, and it sounds like a really interesting and great initiative that you're working on there as well. Eric, maybe for my follow-up for you. Great to see the services line accelerate again as just some of those bigger implementations, I think, get rolling. How do you -- maybe the question is zooming out a little bit, how do you kind of think about services revenue and just non-subscription revenue in general this year. I mean, clearly, the subscription machine is working based on what we've seen with ARR. How do you think about some of the nonsubscription stuff this year?

確實如此。確實如此。這非常有幫助，聽起來您也正在那裡開展一項非常有趣且偉大的舉措。埃里克，也許是為了我對你的後續行動。我認為，很高興看到服務線再次加速，因為其中一些更大的實施正在開始實施。你怎麼看——也許問題有點縮小，你如何看待今年的服務收入和非訂閱收入。我的意思是，顯然，訂閱機器正在根據我們在 ARR 中看到的情況運行。您如何看待今年的一些非訂閱內容？

So it's a great question, Saket. So I -- as we look at the trend for this year, first, the services revenue, I would anticipate the trend line to be very similar to the way it behaved last year. So yes, we will see typically when third quarter peaking in terms of the level of revenue, and then it will trail down in Q4, just given the not as many implementations they're done at the end of the year. And then pick back up in Q1 and then build in Q2, et cetera.

所以這是一個很好的問題，Saket。因此，當我們審視今年的趨勢時，首先是服務收入，我預計趨勢線將與去年的表現非常相似。所以，是的，我們通常會看到第三季度收入水平達到頂峰，然後在第四季度下降，只是考慮到他們在年底完成的實施數量並不多。然後在第一季度恢復，然後在第二季度建立，依此類推。

So we expect that trend to continue. The margins in this business will remain in the low 20% range because, again, this revenue is really geared towards enabling our customers to leverage the technology and the training, et cetera, so that they get the most value out of it.

因此我們預計這種趨勢將持續下去。該業務的利潤率將保持在 20% 的低水平，因為這一收入實際上是為了讓我們的客戶能夠利用技術和培訓等，以便他們從中獲得最大價值。

And then I think the license and other, as you all have seen, continues to be the smallest piece of our overall revenue, but it's going to be the most variable piece in terms of onetime items coming in there and partnership agreements. So I think service is pretty consistent. And then the L&O, we'll try and give as much color as we have it as we go into each quarter going forward.

然後，我認為許可證和其他內容，正如大家所看到的，仍然是我們總收入中最小的部分，但就一次性項目和合作協議而言，它將成為變化最大的部分。所以我認為服務非常一致。然後是 L&O，我們將在進入每個季度時盡力提供盡可能多的色彩。

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

我們的下一個問題來自布萊恩·彼得森和雷蒙德·詹姆斯的對話。

This is Johnathan McCary on for Brian. It'll just be 1 from us tonight. So I had a question kind of on M&A. So it's great to hear the SchoolMessenger acquisition. I'm just kind of curious how that could influence your appetite for additional M&A? And then what's the latest on private market valuations?

我是喬納森·麥卡里 (Johnathan McCary) 替布萊恩發言。今晚我們就只有 1 條消息。所以我有一個關於併購的問題。因此，很高興聽到 SchoolMessenger 被收購。我只是有點好奇這會如何影響您對更多併購的興趣？那麼私募市場估值的最新情況如何？

So we look at these acquisitions in a way that how one they're -- how they are accretive to our growth and EBITDA profile. How they strategically fit into our portfolio based on where we see the top demand for our customers' needs are, which helps our portfolio to be even more differentiated and comprehensive and also how it actually helps us accelerate growth in the long term.

因此，我們以一種方式來看待這些收購——它們如何促進我們的增長和 EBITDA 狀況。根據我們對客戶需求的最大需求，它們如何戰略性地融入我們的產品組合，這有助於我們的產品組合更加差異化和全面，也實際上幫助我們加速長期增長。

So when you look at all of our acquisitions, whether they are small tuck-ins like in the curriculum space or behavior space or in terms of career pathways you see that each one of them are addressing some of the key demand areas we are seeing in the market. As I said, messaging was one of the critical elements we see at a mission-critical component for a lot of school districts. So this has been where we actually partner with SchoolMessenger and we saw clearly the demand and the value of having that more in our platform. So that's why we kind of went ahead with the acquisition.

因此，當您查看我們所有的收購時，無論它們是在課程空間或行為空間中的小型收購，還是在職業道路方面，您都會發現它們中的每一項都在解決我們所看到的一些關鍵需求領域市場。正如我所說，消息傳遞是我們在許多學區的關鍵任務組件中看到的關鍵要素之一。因此，這就是我們與 SchoolMessenger 實際合作的地方，我們清楚地看到了在我們的平台上提供更多功能的需求和價值。這就是我們繼續進行收購的原因。

We will continue to remain acquisitive. But at the same time, we're going to make sure that it fits with our -- as I said, our growth profile as well as our strategic rationale. And then at the same time, we are also making sure that our net leverage average continues to improve as well.

我們將繼續保持收購熱情。但與此同時，我們將確保它符合我們的——正如我所說的，我們的增長概況以及我們的戰略理由。與此同時，我們還確保我們的平均淨槓桿率也繼續提高。

So I'll let Eric comment on the second part as well.

所以我也會讓埃里克評論第二部分。

Yes. I mean, look, it's -- as you're looking at any of these acquisitions, given the rate -- the interest rates are at, we have to look at the capital structure. We are being very mindful around our overall debt that we have, which is why we funded SchoolMessenger with half of our cash on hand with our existing debt facilities. So we expect to be around 3.5x to 3.6x net levered by the end of the year, and we'll continue to work on that.

是的。我的意思是，當你考慮這些收購中的任何一項時，考慮到利率，我們必須考慮資本結構。我們非常關注我們的總體債務，這就是為什麼我們用現有債務融資的一半手頭現金為 SchoolMessenger 提供資金。因此，我們預計到今年年底淨槓桿率將達到 3.5 倍至 3.6 倍左右，我們將繼續努力實現這一目標。

But look, as Hardeep said, we're going to continue to look for really good assets out there that makes sense. And then to your last question around the private markets, we are starting to see them come back a little bit more in line with the public company valuation. So we are seeing some of the expectations come down a little bit.

但是，正如哈迪普所說，我們將繼續尋找真正有意義的優質資產。關於你關於私募市場的最後一個問題，我們開始看到它們的回歸與上市公司的估值更加一致。因此，我們看到一些期望有所下降。

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

下一個問題來自池田浩司與美國銀行的對話。

This is Natalie Howe on for Koji. A quick 1 from me. I wanted to ask about the Samart Telcoms' partnership. Is the 100,000 students commit? Or is that an opportunity that can be addressed over the next few years?

我是娜塔莉·豪 (Natalie Howe) 為 Koji 配音。我的快速 1。我想詢問 Samart Telcoms 的合作關係。十萬學生有承諾嗎？或者說這是一個可以在未來幾年內抓住的機會嗎？

Natalie, as I was mentioning a little bit earlier that these are hard commits in terms of over the next 12 months -- 12 to 18 months of these partners. And typically, that allows us to ramp up these regions with schools and stuff. So we already have a presence in -- actually in Thailand with almost a few tens of thousands of students. And now we can actually really grow this to be a little bit with the broader market. So -- but these are good ramp-up ways for us to be able to take that region as well as some of the neighboring countries in that area.

Natalie，正如我之前提到的，這些合作夥伴在未來 12 個月（12 到 18 個月）中做出了艱難的承諾。通常，這使我們能夠在這些地區建立學校和其他設施。因此，我們實際上已經在泰國開展業務，擁有近數万名學生。現在我們實際上可以將其發展到與更廣闊的市場相適應的程度。所以，但這些都是很好的提升方式，讓我們能夠佔領該地區以及該地區的一些鄰國。

The next question comes from the line of Claire Gerdes with UBS.

下一個問題來自瑞銀集團的克萊爾·格德斯 (Claire Gerdes)。

Similar to Saket question earlier. So for Eric, you mentioned the trends for non-subscription revenue segments, but is there any updated color you can give us on growth in the subscription segment? I think previously, you'd mentioned a reversion to low double digits in the second half just as those larger deals kick in.

類似於之前的 Saket 問題。對於埃里克（Eric），您提到了非訂閱收入細分市場的趨勢，但是您可以向我們提供有關訂閱細分市場增長的任何最新信息嗎？我想之前，您曾提到下半年隨著那些較大的交易開始，業績將恢復到低兩位數。

And then also on the license and other line, I know that's a bit hard to model since it varies so much. But I think previously you had mentioned that 3Q would be the peak, but wonder if maybe that's changed based on the $4 million benefit in 2Q from that LA deal.

然後在許可證和其他方面，我知道這有點難以建模，因為它變化很大。但我想你之前曾提到第三季度將是峰值，但想知道這是否會因為第二季度洛杉磯交易帶來的 400 萬美元收益而改變。

Yes. Great questions, Claire. So let me just first start with the subs and support. So we still -- as I mentioned, in Q2, we had minimal revenue attributed from Puerto Rico, that will start kicking in into the Q3 and Q4. So we do expect that to be in the low double-digit range. I think the other thing that's important, too, for everybody to is you kind of look at the disaggregation of revenue for subs and support, the most critical piece of that, you're seeing really starting. You look at the SaaS part of that S&S revenue, and that's about 80% of the overall revenue, that's growing 10% to 11%. It's really the maintenance part of the S&S revenue that's growing in the low single digits, which is the lesser strategic component of the S&S revenue. So I think that's also important. So I would just call out, if you're looking at the 10-Q to look at the disaggregation of revenue page, you can kind of see that trend as well.

是的。很好的問題，克萊爾。讓我先從替補和支援開始。因此，正如我所提到的，在第二季度，我們來自波多黎各的收入仍然很少，這將開始進入第三季度和第四季度。因此，我們確實預計該數字將在較低的兩位數範圍內。我認為對每個人來說，另一件事也很重要，那就是你要看看潛艇和支持的收入分類，這是其中最關鍵的部分，你會看到真正的開始。你看看 S&S 收入中的 SaaS 部分，它約佔總收入的 80%，並且正在增長 10% 到 11%。實際上，S&S 收入的維護部分以低個位數增長，這是 S&S 收入中戰略性較小的部分。所以我認為這也很重要。所以我只想指出，如果您查看 10-Q 來查看收入分類頁面，您也可以看到這種趨勢。

In terms of the L&O, so we -- I still think that you'll see a pretty decent -- we're not going to give a specific number for L&O for Q3 because it's embedded in the overall revenue number. because it is somewhat variable. And again, the timing of some of these items can be somewhat from 1 quarter to the next. But I think the piece that's important and that was in my prepared remarks is there is, as we modernize the Puerto Rico classroom of the future, right? There is scanner component of that deal with Puerto Rico. And we do expect a good part of that scanner revenue, which will be onetime in nature to come into the Q3.

就 L&O 而言，所以我們——我仍然認為你會看到一個相當不錯的——我們不會給出第三季度 L&O 的具體數字，因為它嵌入在總體收入數字中。因為它有些可變。同樣，其中一些項目的時間安排可能會從一個季度到下一個季度。但我認為我準備好的發言中最重要的一點是，隨著我們對未來波多黎各課堂的現代化，對嗎？與波多黎各的交易有掃描儀部分。我們確實預計掃描儀收入的很大一部分將一次性進入第三季度。

So the L&O, I still think that's going to be a relatively decent number in the third quarter, and a lot of that is going to be attributed to the revenue coming from the Puerto Rico scanner components. So hopefully, that color is a little helpful in terms of giving you an idea of where we're expecting it to trend.

因此，我仍然認為第三季度的 L&O 數字相對不錯，其中很大一部分將歸因於波多黎各掃描儀組件的收入。因此，希望這種顏色能夠幫助您了解我們期望它的趨勢。

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

下一個問題來自布雷特·諾布勞赫 (Brett Knoblauch) 和康托·菲茨杰拉德 (Cantor Fitzgerald) 的對話。

I guess on the acquisition of SchoolMessenger, you guys bought another messaging solution called -- beginning of last year, Kinvolved. Can you just help elaborate on what this acquisition gives you that maybe that acquisition did not give you? Or how should I think about the combined call it communication solution that you now have with these 2 products?

我想在收購 SchoolMessenger 時，你們去年年初購買了另一個名為 Kinvolved 的消息解決方案。您能否幫助詳細說明一下這次收購給您帶來了哪些可能沒有給您帶來的好處？或者我應該如何考慮您現在使用這兩種產品所擁有的組合通信解決方案？

Sure, Brett. This is Hardeep. I can take that. So when you look at some of the Kinvolved when we acquired -- if you look at that, it's actually more of an attendance intervention and messaging component. What a lot of districts have taken advantage of that is where you're doing a very targeted communication from schools about delinquencies as well as truancy in terms of where the kids are -- may not be attending.

當然，布雷特。這是哈迪普。我可以接受。因此，當你看看我們收購的一些 Kinvolved 時，你會發現它實際上更多的是出勤干預和消息傳遞組件。許多學區都利用了這一點，學校就拖欠和逃學問題進行了非常有針對性的溝通，了解孩子們在哪裡——可能沒有上學。

So you will get even like a reminder, this is your kids third attendance miss. And if you miss the next one, the repercussion, right? And so you're able to track individual ways on understanding how to drive better attendance. A lot of the school districts were struggling post pandemic in terms of kids not coming to the school or losing that engagement. And it's 1 of the very strategic areas. We are seeing a tremendous amount of demand even with districts like San Diego, which actually rolled this out, and saw very strong feedback from parents and teachers about the value of such a solution.

因此，您甚至會收到提醒，這是您的孩子第三次缺勤。如果你錯過了下一場比賽，後果不堪設想，對嗎？因此，您可以跟踪個人的方式來了解如何提高出勤率。許多學區在大流行後都陷入困境，因為孩子們沒有來學校或失去了參與度。這是非常具有戰略意義的領域之一。即使是像聖地亞哥這樣的地區，我們也看到了巨大的需求，這些地區實際上已經推出了這一解決方案，並且家長和老師對這種解決方案的價值給出了非常強烈的反饋。

When you look at from an overall communication needs, there's also emergency notification, broader messaging from the districts, messaging from schools as well as teacher and student and parent bidirectional 2-way communication as well. What we're trying to bring with Kinvolved attendance messaging intervention, along with SchoolMessenger and our 2-way chat capabilities around alignment with in -- under a 1 unified communication umbrella.

從整體溝通需求來看，還有緊急通知、來自學區的更廣泛的消息、來自學校的消息以及師生和家長的雙向溝通​​。我們試圖通過 Kinvolved 出勤消息傳遞干預、SchoolMessenger 以及我們的 2 向聊天功能來實現 - 在 1 統一通信保護傘下。

And what that does, it gives a one-stop shop for parents districts, teachers, students to be able to understand all the different elements of communication because right now, you will get phone calls, you will get messaging, you will get some in-app notifications and it's like very chaotic all over the place. And this gives us a unique opportunity to bring the most comprehensive communication system under 1 umbrella and all integrated into their My PowerSchool experience. So they don't have to go anywhere else to get that.

它的作用是，它為家長區、教師、學生提供了一站式服務，讓他們能夠了解溝通的所有不同要素，因為現在，你會接到電話、收到消息、收到一些信息。 - 應用程序通知，到處都很混亂。這為我們提供了一個獨特的機會，將最全面的通信系統納入一個保護範圍，並將其全部集成到他們的 My PowerSchool 體驗中。所以他們不必去其他地方就能得到它。

Understood. And maybe just as a follow-up. All I guess, the kind of enterprises right now is trying to figure out how they can use AI internally to kind of become more efficient, whether that's in a go-to-market teams or R&D, I just was curious to your view of how schools are thinking about AI and generative AI. Are you seeing a pickup in conversations to rounding AI, especially given your recent announcement with Gen AI and kind of Microsoft Azure's OpenAI capabilities? And what do you expect that to translate into from maybe a pricing power, maybe increased pricing uplift in the future? How should we think about those conversations?

明白了。也許只是作為後續行動。我想，現在的企業正在試圖弄清楚如何在內部使用人工智能來提高效率，無論是在市場推廣團隊還是研發團隊中，我只是很好奇您對如何使用人工智能的看法學校正在考慮人工智能和生成式人工智能。您是否看到圍繞人工智能的對話有所回升，特別是考慮到您最近宣布了 Gen AI 和 Microsoft Azure 的 OpenAI 功能？您預計這會轉化為定價能力，或者未來定價提升的幅度會怎樣？我們應該如何看待這些對話？

Brett, this is a very exciting question. And in fact, we'll be planning to share a lot about this in our Analyst Day. But I'll try to give -- try to cover such an exciting topping in a minute. What I'll say is that, look, we are seeing a lot of interest in education actually represent 1 of the biggest opportunities for generative AI. A lot of the school districts actually see a clear need because if they don't adopt it, they're going to be anyway -- they anyway need to rethink their student engagement with these kind of technology because students are going to start using a lot of that.

布雷特，這是一個非常令人興奮的問題。事實上，我們將計劃在分析師日分享很多相關內容。但我會盡力在一分鐘內介紹如此令人興奮的配料。我要說的是，我們看到對教育的濃厚興趣實際上代表了生成式人工智能的最大機會之一。許多學區實際上看到了明確的需求，因為如果他們不採用它，無論如何他們都會這樣做——無論如何，他們需要重新考慮學生對此類技術的參與，因為學生將開始使用很多。

What we're also seeing is that for us, given we are the system of engagement, and we have the system of intelligence with a great product. We are in a unique position to be the platform for all these school districts and state to leverage these and monetize that effectively. So we have a very exciting opportunity. In fact, we're going to share some of that, how we -- the monetization of the generative AI is going to happen over the next few years for us. But we see this definitely as a game changer.

我們還看到，對於我們來說，鑑於我們有參與系統，並且我們擁有具有出色產品的智能係統。我們處於獨特的地位，可以成為所有這些學區和州利用這些資源並有效貨幣化的平台。所以我們有一個非常令人興奮的機會。事實上，我們將分享其中的一些內容，我們將如何在未來幾年內實現生成式人工智能的貨幣化。但我們認為這絕對會改變遊戲規則。

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

下一個問題來自麥格理的 Fred Havemeyer。

Hardeep, I wanted to ask, as PowerSchool has now gone through the major purchasing cycle. I wanted to really just take a high-level approach and ask, what are the biggest pain points that schools are now looking at here? Can you just help walk me through where in the PowerSchool portfolio in addition to data you're just finding the most traction at this point in time. And then since you're in D.C. and you're with the White House, fantastic to see that, fantastic to see the leadership position you're in. Just what are the conversations there like? And what is the White House focused on right now in terms of education.

Hardeep，我想問一下，因為 PowerSchool 現在已經經歷了主要的採購週期。我真的想採取一種高層次的方法來問，學校現在正在考慮的最大痛點是什麼？您能否幫我介紹一下，除了數據之外，您目前在 PowerSchool 產品組合中發現了最具吸引力的地方。然後，既然你在華盛頓，在白宮，很高興看到這一點，很高興看到你所處的領導地位。那裡的對話是什麼樣的？白宮目前在教育方面關注的重點是什麼？

Great, Fred. In fact, I'll share a little bit more about this thing over the next few days as we work through the White House, but I also encourage you guys to look at the EdTech report we put -- education report we put which we launched at our EDGE Conference, which is actually feedback from a lot of our customers.

太棒了，弗雷德。事實上，在接下來的幾天裡，當我們在白宮工作時，我將分享更多關於這件事的信息，但我也鼓勵你們看看我們發布的教育科技報告——我們發布的教育報告在我們的EDGE 會議上，這實際上是我們很多客戶的反饋。

And I think if you look at some of the key trends I highlighted 1 in the prepared remarks, which was around data. I think a lot of the districts are still kind of flying blind. They have a lot of different systems and a lot of different initiatives. But how do you see the ROI of it? How do you make sure that they're able to get all the data real time and be able to really have the surgical support, so their budgets are more reaching the kids who need the most help. That is a big thing and our MTSS capabilities, our Connected Intelligence, we clearly seeing that, that's leadership is really driving a lot of the growth in the market and because of the unique position and the unique solutions we have in the market on that.

我想如果你看看我在準備好的評論中強調的一些主要趨勢，這些趨勢是圍繞數據的。我認為很多地區仍然處於盲目狀態。他們有很多不同的系統和很多不同的舉措。但您如何看待它的投資回報率？您如何確保他們能夠實時獲取所有數據並能夠真正獲得手術支持，以便他們的預算更多地惠及最需要幫助的孩子。這是一件大事，我們的 MTSS 能力、我們的互聯智能，我們清楚地看到，這種領導地位確實推動了市場的大量增長，因為我們在市場上擁有獨特的地位和獨特的解決方案。

The second area we still see is in terms of the area around -- in terms of the teacher burnout and teacher empowerment. So we're tools around how we are helping with generative AI to make teachers more efficient support them as well as with how they can easily engage through our comms tools with My PowerSchool. So their communication, which is a big drag on teachers time, all that said is improved. That's where you see our announcements of innovation as well as inorganic stuff all around to improve and reduce teacher burnout and improve their empowerment.

我們仍然看到的第二個領域是圍繞教師倦怠和教師賦權而言的。因此，我們的工具圍繞如何幫助生成人工智能，讓教師更有效地為他們提供支持，以及他們如何通過我們的通信工具與 My PowerSchool 輕鬆互動。因此，他們的溝通雖然極大地拖累了老師的時間，但所有這些都得到了改善。在這裡，您可以看到我們宣布的創新以及無機材料，以改善和減少教師倦怠並提高他們的能力。

The third area is the cybersecurity. This is where the White House is -- there is a lot of legacy system. I shared in our press release today, just PowerSchool alone, we are able to successfully defend over 1 billion-cyber attacks for our districts across our solutions. So imagine, we are about 10% of the market. So the actual number of attacks is probably 10x. And districts and states don't have those kind of resources. And this is where we have a huge opportunity with the digital transformation as well as getting districts to be able to start using more modern cloud solutions and get that safety.

第三個領域是網絡安全。這就是白宮所在的地方——有很多遺留系統。我在今天的新聞稿中分享了，僅靠 PowerSchool，我們就能夠通過我們的解決方案成功地為我們的地區抵禦超過 10 億次網絡攻擊。想像一下，我們大約佔市場的 10%。所以實際的攻擊次數大概是10倍。地區和州沒有此類資源。這就是我們在數字化轉型以及讓各地區能夠開始使用更現代的雲解決方案並獲得安全方面擁有巨大機會的地方。

So we have still a lot of upside in terms of the transformation that's ahead of us and White House and private sectors are putting in investments actually to help districts with those modernization as well. So good to see a very concerted effort around those areas.

因此，在我們面前的轉型方面，我們仍然有很多優勢，白宮和私營部門實際上也在投入投資，以幫助各地區實現這些現代化。很高興看到圍繞這些領域的一致努力。

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

下一個問題來自瑞士信貸銀行的 Rich Hilliker。

I wanted to touch on the persona-based cloud bundles. Obviously, it's new this spring, and there was an emphasis at the EDGE User Conference. Wondering if you can give us a sense of how much that contributed to the strong bookings performance, specifically in Q2? I know that was a first half number that you guys disclosed today. And then I was also wondering how you think of that as a lever as you enter into your largest renewal quarter here?

我想談談基於角色的雲捆綁包。顯然，它是今年春天的新產品，並且在 EDGE 用戶大會上得到了強調。想知道您能否讓我們了解這對強勁的預訂業績有何貢獻，特別是在第二季度？我知道這是你們今天披露的上半年數字。然後我還想知道，當您進入最大的續訂季度時，您如何看待這一槓桿？

Yes. Great. Rich, as you mentioned, with our cloud launches, what that does is allow districts to kind of more easily adopt multiple solutions rather than individual products. So we're seeing a tremendous amount of interest actually on the Student Success Cloud, which is around MTSS with behavior and attendance interventions being able to really bring that all together. So we saw a strong demand there.

是的。偉大的。 Rich，正如您所提到的，隨著我們的雲發布，它的作用是讓各地區更容易地採用多種解決方案而不是單個產品。因此，我們實際上看到了人們對學生成功云的巨大興趣，該雲圍繞 MTSS，通過行為和出勤干預措施真正將所有這些結合在一起。所以我們看到那裡有強勁的需求。

Our Student Cloud, as we've been sharing this whole year, our Student Information Cloud continues to actually really be strong. So we are seeing a lot of school districts who are sitting legacy. Great example is Jackson and Mississippi bought our entire Student Cloud to really roll out. It's actually the third largest district in Mississippi. So these are -- those clouds we are working.

我們的學生雲，正如我們今年一直在分享的那樣，我們的學生信息雲實際上仍然非常強大。所以我們看到很多學區都處於遺產狀態。很好的例子是傑克遜和密西西比州購買了我們的整個學生雲以真正推出。它實際上是密西西比州第三大區。這些就是我們正在研究的雲。

And then the third area is the Workforce spanning cloud. This includes our whole K-20 view for states to be able to better view and support the career and college pathways. So these are some of the bright spots in our clouds, which we are seeing. We continue to see healthy demand in our Personalized Learning Cloud with LMS and assessments, which continue to be driving million students plus adoption in a year.

第三個領域是跨雲勞動力。這包括我們對各州能夠更好地看待和支持職業和大學道路的整個 K-20 觀點。這些是我們所看到的雲層中的一些亮點。我們繼續看到對帶有 LMS 和評估的個性化學習雲的健康需求，這繼續推動了一年內數百萬學生的採用。

So we do expect the -- our clouds are going to really help us in all elements around that in terms of growth and will help us improve the cross-sell. We will share some of that more data at our Analyst Day, so you guys can see how these are coming to fruition.

因此，我們確實期望——我們的雲將真正幫助我們在增長方面的所有方面，並將幫助我們改善交叉銷售。我們將在分析師日分享更多數據，以便大家可以了解這些數據是如何實現的。

There are no further questions at this time. And I would like to turn the floor back over to Hardeep for any closing comments.

目前沒有其他問題。我想將發言權轉回哈迪普以徵求結束意見。

Great. Thank you, operator. We really appreciate everyone joining, and thank you for your flexibility with the change schedule. As we can -- with our remarks, you saw that we are very happy with our first half 2023 performance, and we are also excited about the opportunity ahead of us. And the strength of our business to have a predictable growth and continue to have a better margin profile really gives us confidence to continue to be have a very attractive financial profile.

偉大的。謝謝你，接線員。我們非常感謝大家的加入，並感謝您對變更時間表的靈活性。正如我們所能——通過我們的發言，您看到我們對 2023 年上半年的表現非常滿意，我們也對擺在我們面前的機會感到興奮。我們的業務實力具有可預測的增長並繼續擁有更好的利潤狀況，這確實讓我們有信心繼續擁有非常有吸引力的財務狀況。

I think what we're most excited, the strategic deals we are doing shows the leadership we have in the industry. Our innovation will continue to differentiate us even further and our ability to do strategic acquisitions continue to allow us to even further add to our growth with the -- in terms of being able to have a more comprehensive platform. We are very excited to ahead to share more about our broader road map at the Investor Day, I'm looking forward to interacting with all of you there.

我認為最令我們興奮的是，我們正在進行的戰略交易顯示了我們在行業中的領導地位。我們的創新將繼續使我們進一步脫穎而出，我們進行戰略收購的能力將繼續使我們能夠進一步促進我們的增長——就能夠擁有一個更全面的平台而言。我們非常高興能夠在投資者日分享更多有關我們更廣泛的路線圖的信息，我期待著與大家互動。

So thank you, everyone, for joining, and looking forward to sharing more.

謝謝大家的加入，並期待分享更多。

Ladies and gentlemen, this does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

女士們、先生們，今天的會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。