PowerSchool Holdings Inc (PWSC) 2023 Q3 法說會逐字稿

Good afternoon, and welcome to the PowerSchool Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

下午好，歡迎參加 PowerSchool 2023 年第三季財報電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Shane Harrison, Senior Vice President, Investor Relations. Please go ahead.

我現在想將會議交給投資者關係高級副總裁肖恩·哈里森 (Shane Harrison)。請繼續。

Thank you, operator. Welcome, everyone, to PowerSchool's earnings conference call for the third quarter ended September 30, 2023. 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 CEO, Hardeep Gulati; and President and CFO, Eric Shander.

謝謝你，接線生。歡迎大家參加 PowerSchool 截至 2023 年 9 月 30 日的第三季財報電話會議。我想先讓您知道，我們在網站的投資人關係部分發布了幻燈片，其中附有我們的言論。今天的電話會議由 PowerSchool 執行長 Hardeep Gulati 主持。以及總裁兼財務長 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 for 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，這次電話會議，包括問答部分，將包括與我們公司預期未來業績相關的陳述，因此這些陳述屬於前瞻性陳述。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有重大差異。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. A replay of this call will also be posted to the same website.

今天的演講也將提及非公認會計準則財務指標。其他信息，包括非 GAAP 財務資訊與 GAAP 財務資訊之間的定義和調節，在相應的新聞稿和結果演示中提供，這些資訊均發佈在 PowerSchool 的投資者關係網站 Investors.powerschool.com 上。這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。

Thank you, Shane, and thank you, everyone, for joining us today. PowerSchool's third quarter was a continuation of the momentum we have been building over the past few quarters with meaningful growth in revenue and profitability. K-12 organizations are accelerating the adoption of our platform to become more efficient and effective, and this is enhancing our ability to execute on our strategies for growth.

謝謝肖恩，也謝謝大家今天加入我們。 PowerSchool 第三季延續了我們過去幾季所建立的勢頭，營收和獲利能力顯著成長。 K-12 組織正在加速採用我們的平台，以變得更有效率和有效，這增強了我們執行成長策略的能力。

Our third quarter results are summarized on Slide 4 of the posted earnings presentation. Revenue was up 12% year-over-year to $182 million, exceeding the high end of our guidance. Product-level growth was diversified with double-digit growth in many of our cloud solutions. Adjusted EBITDA was well ahead of our guidance, reaching $62 million, representing 19% growth over Q3 of 2022 and a 34% margin. We also saw record cash flow in the quarter while continuing to invest in our game-changing product innovations.

我們的第三季業績總結在已發布收益簡報的投影片 4 中。營收年增 12%，達到 1.82 億美元，超出了我們指導的上限。產品層面的成長更加多元化，我們的許多雲端解決方案都實現了兩位數的成長。調整後 EBITDA 遠遠超出我們的指引，達到 6,200 萬美元，較 2022 年第三季成長 19%，利潤率達 34%。我們在本季也看到了創紀錄的現金流，同時繼續投資於改變遊戲規則的產品創新。

ARR grew over 9% year-over-year and was up sequentially in Q3, which is seasonally our lowest quarter for new business as districts are focused on back-to-school opening logistics. We continue to see low double-digit growth in the ARR for the full year excluding SchoolMessenger's contribution. These results showcased the momentum we have created in driving sustainable long-term growth.

ARR 年成長超過 9%，並在第三季度環比成長，這是我們季節性新業務最低的季度，因為各學區專注於返校開放物流。我們繼續看到全年 ARR 的兩位數低成長（不包括 SchoolMessenger 的貢獻）。這些結果展示了我們在推動永續長期成長方面所創造的動力。

Let me now discuss our customer and product momentum in the third quarter, summarized on Slide 5, where we had meaningful customer activity that demonstrated many of our go-to-market strategies. The biggest notable win in Q3 was with the state of Florida Department of Education for several of our talent solutions that will help the state with their recruiting and hiring processes as the industry is experiencing a shortage of talent. The Florida Consortium Job Board will serve all 67 districts, 6 special school districts and over 700 charter schools in the state of Florida to source all talent from all over the country in order to fill vacancies for all job types in the state. This is a competitive replacement of an existing solution and speaks to the strength of the innovation and the capabilities of our talent cloud offerings.

現在讓我討論一下投影片 5 中總結的第三季的客戶和產品勢頭，我們開展了有意義的客戶活動，展示了我們的許多上市策略。第三季最顯著的勝利是與佛羅裡達州教育部合作，提供了我們的幾個人才解決方案，這些解決方案將幫助該州在該行業面臨人才短缺的情況下進行招聘和聘用流程。佛羅裡達聯盟就業委員會將為佛羅裡達州所有 67 個學區、6 個特殊學區和 700 多所特許學校提供服務，從全國各地招募所有人才，以填補該州所有職位類型的空缺。這是現有解決方案的競爭性替代品，體現了我們人才雲端產品的創新優勢和能力。

Florida is a great new logo win and another key new state-level contract. With the Florida win, we have now won a state or a territory-level deal in 9 straight quarters. Additionally, we have been given vendor of choice for a state-level special education solution for another state in the Midwest, which we hope to get through signature and approvals in Q4 or early Q1. These states and large deals are very strategic and provide us an opportunity to further expand our customer footprint and cross-sell across all the district and school in these states.

佛羅裡達州是一項偉大的新標誌勝利，也是另一項重要的新州級合約。隨著佛羅裡達州的勝利，我們現在已經連續 9 個季度贏得了州或領地級別的交易。此外，我們已獲得中西部另一個州州級特殊教育解決方案的選擇供應商，我們希望在第四季度或第一季初獲得簽署和批准。這些州和大型交易非常具有戰略意義，為我們提供了進一步擴大客戶足跡並在這些州的所有學區和學校進行交叉銷售的機會。

The scalable nature of our platform, the diverse best-in-class footprint and the differentiated innovation are driving the momentum for these state-level deals. Our strong double-digit revenue growth in the quarter was across most of our clouds with strong performance in our Student Information Cloud, Student Success Cloud and Talent Cloud.

我們平台的可擴展性、多樣化的一流足跡和差異化創新正在推動這些州級交易的勢頭。本季我們的大部分雲端收入實現了兩位數的強勁成長，其中學生資訊雲、學生成功雲和人才雲表現強勁。

The mission criticality of our core platform, the organic innovations of data and insight solutions and our timely add-on acquisitions like curriculum planning and attendance intervention are addressing the most urgent critical needs of the districts. Take for example year-to-date attendance interventions bookings are up 68% year-over-year. Curriculum and instruction bookings grew 200% year-over-year, and talent bookings are up 21% year-to-date versus the same period last year.

我們核心平台的使命關鍵性、數據和洞察解決方案的有機創新以及我們及時的附加收購（例如課程規劃和出勤幹預）正在解決各學區最緊迫的關鍵需求。以今年迄今的出勤幹預預訂量年增 68% 為例。課程和教學預訂量年增 200%，人才預訂量今年迄今年增 21%。

As we shared during our last earnings call as well as on our Investor Day, our data-centric solutions are the key part of our long-term growth algorithm. In the third quarter, 5 of our largest 10 wins by ARR included Insights or Connected Intelligence report. This included cross-sells of both Insights and Connected Intelligence to Modesto City School District, Colorado Springs School District 11 and Cherokee County School District 1. These are technology-minded districts that were already using 5 to 10 of our platform solutions and are a great example of how districts of all sizes are seeing the benefit of using our data-centric tools to aggregate, secure, analyze and present the data for making better decisions for their students and teachers.

正如我們在上次財報電話會議以及投資者日分享的那樣，我們以數據為中心的解決方案是我們長期成長演算法的關鍵部分。第三季度，ARR 取得的最大 10 項勝利中有 5 項包含洞察或互聯智慧報告。這包括向莫德斯托市學區、科羅拉多斯普林斯學區11 和切羅基縣學區1 交叉銷售Insights 和Connected Intelligence。這些具有技術意識的學區已經使用了5 到10 個我們的平台解決方案，並且是一個很好的選擇。各種規模的學區如何看到使用我們以數據為中心的工具來聚合、保護、分析和呈現數據的好處，以便為學生和教師做出更好的決策。

A key value proposition for data product is also that we are enabling these districts with a Data-as-a-Service platform to power their AI strategies. With our Connected Intelligence data lake solution, we're enabling more secure and efficient way for our customers to bring AI to their data rather than their data to the AI tools.

數據產品的一個關鍵價值主張還在於，我們為這些地區提供數據即服務平台，以支援他們的人工智慧策略。借助我們的互聯智慧數據湖解決方案，我們為客戶提供了更安全、更有效率的方式，將人工智慧引入其數據，而不是將數據引入人工智慧工具。

We continue to innovate on our extensive multiple product AI-centered personalized education road map. In this quarter, we are doing general availability of our first generative AI-based solution for Item & Passage Generation tool as an add-on for our Performance Matters Assessment product after a very successful beta trial.

我們繼續在以人工智慧為中心的廣泛的多產品個人化教育路線圖上進行創新。在本季度，經過非常成功的測試試驗後，我們將全面推出第一個基於人工智慧的專案和段落產生工俱生成解決方案，作為我們的績效評估產品的附加組件。

Additionally, this month, we are kicking off beta trials for 2 other AI products. First is the ability for educators to interact with student data sets using natural language to ask questions and uncover key insights. This functionality will be an add-on to our Connected Intelligence and other products, which will save educators and administrators a tremendous amount of time digging through the massive data sets to find the anomalies, focal areas and other insights into student academic and behavior progress. Also this month, we plan to release the beta for our first version of Personalized Homework Assistant, a gen AI tool for Schoology that understands the context of what is being taught in the classroom and provides assistance to the students who may be stuck on a homework concept.

此外，本月，我們還將啟動另外 2 款人工智慧產品的測試版。首先是教育工作者能夠使用自然語言與學生資料集進行交互，提出問題並發現關鍵見解。該功能將成為我們的互聯智能和其他產品的附加功能，這將為教育工作者和管理人員節省大量時間，讓他們無需深入挖掘海量數據集，找到異常情況、重點領域以及有關學生學業和行為進步的其他見解。同樣在本月，我們計劃發布第一版個人化家庭作業助手的測試版，這是一款用於 Schoology 的人工智慧工具，可以了解課堂教學的背景，並為可能陷入家庭作業的學生提供幫助概念。

Next, I would like to update you on the progress of our recent M&A activity, as shown on Slide 6. Since the end of Q2, we have acquired 2 companies, starting with the completion of the exciting acquisition of SchoolMessenger in October. As with all our acquisitions, the first stage of our integration process centers on people and UI harmonization. And our particular focus with SchoolMessenger is building the deep integration of their direct communication capabilities into our new MyPowerSchool single pane of glass portal for parents, students and teachers.

接下來，我想向您介紹我們最近的併購活動的最新進展，如幻燈片6 所示。自第二季度末以來，我們已經收購了2 家公司，首先是10 月份完成的令人興奮的SchoolMessenger 收購。與我們所有的收購一樣，我們整合流程的第一階段以人員和 UI 協調為中心。我們對 SchoolMessenger 的特別關注是將他們的直接通訊功能深度整合到我們為家長、學生和教師提供的新 MyPowerSchool 單一管理平台入口網站中。

As most parents can attest, the communication process between teachers, families and their schools is disjointed and often confusing. By adding SchoolMessenger to PowerSchool and particularly the MyPowerSchool portal, we are uniquely positioned to create the most differentiated and comprehensive portal for centralized and efficient school-parent communications. This will supercharge the parent-student-teacher communication and therefore drive meaningfully deeper engagement, a leading driver of student success.

大多數家長都可以證明，教師、家庭和學校之間的溝通過程是脫節的，而且常常令人困惑。透過將 SchoolMessenger 添加到 PowerSchool，特別是 MyPowerSchool 門戶，我們處於獨特的地位，可以創建最具差異化和全面的門戶，以實現集中、高效的校家長溝通。這將加強家長-學生-老師的溝通，從而推動有意義的更深入的參與，這是學生成功的主要推動力。

During the third quarter, we also acquired Neverskip, an India-based K-12 ERP and administration software provider. The addition of Neverskip provides us with a localized and high-quality ERP and SIS product for the large India K-12 market that is expandable and scalable with PowerSchool's complementary platform of solutions. This addition expands our reach in India by 1.2 million students.

第三季度，我們也收購了 Neverskip，一家總部位於印度的 K-12 ERP 和管理軟體供應商。 Neverskip 的加入為我們提供了面向龐大的印度 K-12 市場的在地化高品質 ERP 和 SIS 產品，該產品可透過 PowerSchool 的補充解決方案平台進行擴展和擴展。這次增招使我們在印度的學生人數增加了 120 萬名。

Turning now to our broader global international expansion on Slide 6. As we discussed at our Investor Day, we are approaching targeted regions with a direct sales model, while in others we are building our go-to-market with channel partners. Since our last earnings call in August, we are thrilled to have signed up 6 additional partners, bringing our total to 11 so far, well ahead on our plan to sign 12 by the end of the year.

現在轉向幻燈片6 上我們更廣泛的全球國際擴張。正如我們在投資者日討論的那樣，我們正在透過直銷模式進入目標地區，而在其他地區，我們正在與通路合作夥伴建立我們的市場進入計劃。自 8 月上次財報電話會議以來，我們很高興又簽了 6 家合作夥伴，使迄今為止我們的合作夥伴總數達到 11 家，遠遠超出了我們在年底前簽署 12 家合作夥伴的計劃。

For the Middle East and Africa regions, we aligned with CCS for the Egypt market and Bahwan CyberTek for Oman and the UAE. In Asia, we signed an agreement with BeeNet, who will resell PowerSchool products in Hong Kong, Singapore and the Philippines. Our first partner in Europe, Gear Education, will focus on selling in Greece and Cyprus. For the Brazil market, a country with over 37 million primary and secondary school students, we are aligned with LearnBase. And finally, in the New Zealand, we selected Glenn Cook Technologies as our latest channel partner. We look forward to onboarding each of these and our other partners in the coming quarters with the goal of driving meaningful growth of PowerSchool outside of North America.

對於中東和非洲地區，我們在埃及市場與 CCS 合作，在阿曼和阿聯酋與 Bahwan Cyber​​Tek 合作。在亞洲，我們與 BeeNet 簽署了一項協議，後者將在香港、新加坡和菲律賓轉售 PowerSchool 產品。我們在歐洲的第一個合作夥伴 Gear Education 將專注於希臘和塞浦路斯的銷售。對於巴西市場這個擁有超過 3,700 萬名中小學生的國家，我們與 LearnBase 保持一致。最後，在紐西蘭，我們選擇 Glenn Cook Technologies 作為我們最新的通路合作夥伴。我們期待在未來幾季與這些合作夥伴以及我們的其他合作夥伴合作，以推動 PowerSchool 在北美以外地區實現有意義的成長。

These third quarter successes are driven by the strategies we presented at our Investor Day in September when we outlined our vision to personalize education as well as our clear path to $1 billion in revenue and adjusted EBITDA margin in the upper 30s, as summarized on Slide 7. At the event, we showcased our unique and differentiated position as the most comprehensive vertical SaaS platform for a very durable K-12 end market. We discussed how we remain underpenetrated at roughly 6% of the $10.5 billion addressable U.S. and Canada K-12 software market and how this TAM expands nearly 10x to $100 billion when you consider our opportunities in international expansion and personalized education.

第三季的成功得益於我們在9 月的投資者日上提出的策略，當時我們概述了個人化教育的願景，以及實現10 億美元收入和30 多歲調整後EBITDA 利潤率的明確路徑，如投影片7 所總結的在此次活動中，我們展示了我們作為面向非常持久的 K-12 終端市場的最全面的垂直 SaaS 平台的獨特且差異化的地位。我們討論了在美國和加拿大105 億美元的K-12 軟體市場中，我們如何保持約6% 的滲透率不足，以及當考慮到我們在國際擴張和個性化教育方面的機會時，這個TAM 如何擴大近10 倍，達到1000 億美元。

We articulated our go-to-market strategy, reviewed key growth drivers and detailed our playbook for expanding internationally through multiple channels. We also showed our product road map, including many of the [signing] gen AI and personalized education products that we believe will transform the future of the industry. Then Eric wrapped up the day by laying out clear midterm financial targets, including the detailed levers we will employ to generate over $1 billion in revenue by 2026 while expanding EBITDA and free cash flow margins. For anyone who has not reviewed the Investor Day presentation, we encourage you to do so via our Investor Relations website.

我們闡明了我們的市場進入策略，審查了關鍵的成長動力，並詳細介紹了我們透過多種管道進行國際擴張的策略。我們也展示了我們的產品路線圖，包括許多我們認為將改變產業未來的[簽約]一代人工智慧和個人化教育產品。然後，埃里克透過制定明確的中期財務目標來結束這一天，包括我們將在 2026 年之前實現超過 10 億美元收入，同時擴大 EBITDA 和自由現金流利潤率的詳細槓桿。對於尚未查看投資者日簡報的任何人，我們鼓勵您透過我們的投資者關係網站進行查看。

Q3 was a great quarter for PowerSchool. Our teams have built momentum in many facets of our business. We continue to build scale and execute efficiently, deliver meaningful value for our customers and develop our global reach. I am confident in driving durable and efficient growth in both our top and bottom lines.

第三季對於 PowerSchool 來說是一個出色的季度。我們的團隊在業務的許多方面都建立了動力。我們繼續擴大規模並高效執行，為客戶提供有意義的價值並發展我們的全球影響力。我有信心推動我們的營收和利潤實現持久、高效的成長。

With that, let me pass the call over to Eric to cover the financial performance for the quarter.

接下來，讓我將電話轉給艾瑞克，介紹本季的財務表現。

Thank you, Hardeep. We delivered a strong third quarter highlighted by double-digit revenue growth, margin expansion and record cash flow generation. We saw balanced demand across our product portfolio during a busy back-to-school season with particular strength in our data and analytics solutions.

謝謝你，哈迪普。我們第三季業績強勁，營收成長兩位數、利潤率擴張和創紀錄的現金流生成。在繁忙的返校季節，我們的產品組合需求均衡，我們的數據和分析解決方案尤其強大。

As summarized on Slide 8, we delivered third quarter total revenue of $182 million, representing a 12% year-over-year increase and exceeding the high end of our guidance range we provided in the last earnings call. Subscriptions and support grew 9% year-over-year to $149 million and accounted for 82% of total revenue in the quarter, driven by a strong renewal season, good bookings activity in which our teams drove ARR through new logos, cross-sell and upsell. Services revenue totaled $21 million in the quarter, representing 4% growth over the same time period last year, which continues to reflect the efficiency and increased productivity of our services organization. Revenue from license and other totaled $12.5 million for the quarter, more than doubling over the same time period last year. The main driver was the delivery of our new solution of attendance and security tracking across all schools in Puerto Rico.

正如投影片 8 所總結的那樣，我們第三季的總收入為 1.82 億美元，年增 12%，超出了我們在上次財報電話會議中提供的指導範圍的上限。訂閱和支援年增 9%，達到 1.49 億美元，佔本季總收入的 82%，這得益於強勁的續訂季節、良好的預訂活動（我們的團隊透過新商標、交叉銷售和追加銷售。本季服務收入總計 2,100 萬美元，比去年同期成長 4%，這繼續反映了我們服務組織的效率和生產力的提高。該季度來自許可和其他的收入總計 1250 萬美元，比去年同期增長了一倍多。主要推動力是在波多黎各所有學校提供新的出席和安全追蹤解決方案。

We ended the quarter with an annual recurring balance of $640 million, representing a 9% year-over-year increase as we continue to acquire new logos, cross-sell and upsell to existing customers and maintained strong retention rates. As we've discussed previously, the quarterly variability is attributed to seasonality and the timing of our larger and strategic deals. We continue to expect low double-digit growth in ARR for the full year, excluding the addition of the ARR from SchoolMessenger, which closed early in the fourth quarter.

截至本季末，我們的年度經常性餘額為 6.4 億美元，年成長 9%，因為我們繼續收購新商標、向現有客戶進行交叉銷售和追加銷售，並保持強勁的保留率。正如我們之前討論的，季度變化歸因於季節性和我們大型策略交易的時間表。我們繼續預計全年 ARR 會出現兩位數的低成長，不包括 SchoolMessenger 的 ARR（該公司已於第四季初關閉）。

Our net revenue retention rate came in at 107.2%, down 150 basis points year-over-year, however, up 160 basis points from Q3 of 2021. As I've discussed previously, we can see a sequential NRR decline in Q3 given that a high volume of our renewals occur during the third quarter, and in Q3 of 2022, we had the benefit of 2 very large deals impacting this metric.

我們的淨收入保留率為 107.2%，同比下降 150 個基點，但較 2021 年第三季度上升 160 個基點。正如我之前討論的，我們可以看到第三季度的 NRR 連續下降，因為我們的續訂量發生在第三季度，在2022 年第三季度，我們受惠於影響這項指標的兩筆非常大的交易。

Adjusted gross profit for the quarter came in at $129 million with a 71% margin, representing a 260 basis point year-over-year improvement driven by continued operational scale and lowering hosting costs.

該季度調整後毛利為 1.29 億美元，利潤率為 71%，在持續營運規模和降低託管成本的推動下，年增 260 個基點。

Moving to the third quarter operating expenses. Non-GAAP research and development expense came in at $23 million, representing 12.4% of revenue compared with 13.9% in the same time period last year. This 150 basis point reduction in adjusted R&D 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 17.2% of revenue compared with 21.5% last year, representing a 430 basis point improvement.

轉向第三季的營運支出。非 GAAP 研發費用為 2,300 萬美元，佔營收的 12.4%，去年同期為 13.9%。調整後的研發佔收入的百分比下降了 150 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，以推動長期成長。包括資本化研發費用在內，研發投入總額佔營收的17.2%，較去年的21.5%增加了430個基點。

Non-GAAP SG&A expense totaled $45 million in the third quarter, representing 24.6% of revenue compared with $37 million or 22.8% of revenue in the third quarter of last year. The increase reflects the investments we are making in our sales and marketing organization and our international go-to-market activities that will drive long-term growth.

第三季非 GAAP SG&A 費用總計 4,500 萬美元，佔營收的 24.6%，去年第三季為 3,700 萬美元，佔營收的 22.8%。這一成長反映了我們對銷售和行銷組織以及國際市場進入活動的投資，這將推動長期成長。

Third quarter adjusted EBITDA exceeded the high end of our guidance range, coming in at $62 million, representing a 34% margin, which was 190 basis points better than last year and driven by our continued focus on cost management and a strong performance in L&O revenue. Non-GAAP net income in the third quarter was $0.24 per fully diluted share, up $0.03 or 15% from the $0.21 per diluted share we had in the same time period last year.

第三季調整後 EBITDA 超出了我們指導範圍的上限，達到 6,200 萬美元，利潤率為 34%，比去年高出 190 個基點，這得益於我們持續關注成本管理和 L&O 收入的強勁表現。第三季非 GAAP 淨利潤為每股完全稀釋每股 0.24 美元，比去年同期每股稀釋每股 0.21 美元增長了 0.03 美元，即 15%。

Free cash flow in the third quarter, which is seasonally our strongest cash flow quarter, was a record $211 million compared with $174 million in the same time period last year. Our free cash flow margin for the 9 months ended September 30, 2023, was 19% compared with 15% in the same time period last year. Strong collections and working capital improvements contributed to the free cash flow increase.

第三季的自由現金流是季節性現金流最強的季度，達到創紀錄的 2.11 億美元，去年同期為 1.74 億美元。截至 2023 年 9 月 30 日的 9 個月，我們的自由現金流利潤率為 19%，而去年同期為 15%。強勁的收款和營運資金的改善促進了自由現金流的增加。

Moving to the balance sheet. We ended the quarter with $323 million in cash and equivalents, an increase of 197% over the same time period last year. This balance included the upside $100 million term loan, which we used to finance the SchoolMessenger acquisition in Q4. Net debt leverage at the end of the quarter was 2.3x compared with 3.6x a year earlier.

轉向資產負債表。截至本季末，我們的現金及等價物為 3.23 億美元，比去年同期成長 197%。該餘額包括 1 億美元的定期貸款，我們用這些貸款為第四季度收購 SchoolMessenger 提供了資金。本季末的淨債務槓桿率為 2.3 倍，而去年同期為 3.6 倍。

Now turning to our fourth quarter and full year 2023 financial outlook on Slide 9. For the fourth quarter, we expect total revenue in the range of $182 million to $185 million, representing 14% year-over-year growth at the midpoint, which includes our expectations for SchoolMessenger. This outlook also includes our expectation that both services and license and other revenue will be lower than the prior year. This is due to our services team continuing to improve their productivity levels and the timing of L&O revenue in the fourth quarter.

現在轉向投影片 9 上的 2023 年第四季和全年財務展望。對於第四季度，我們預計總收入在 1.82 億美元至 1.85 億美元之間，中間值年增 14%，其中包括我們對SchoolMessenger的期望。這項展望還包括我們對服務、授權和其他收入將低於上一年的預期。這是由於我們的服務團隊不斷提高生產力水準以及第四季度 L&O 收入的時間表。

We expect fourth quarter adjusted EBITDA to be in the range of $56 million to $58 million, representing a 31.1% margin at the midpoint. This guidance includes the platform integration investments we are making in the SchoolMessenger business that Hardeep mentioned.

我們預計第四季度調整後 EBITDA 將在 5,600 萬美元至 5,800 萬美元之間，中間利潤率為 31.1%。本指南包括我們在 Hardeep 提到的 SchoolMessenger 業務中進行的平台整合投資。

For the full year 2023, we are increasing our guidance ranges for both revenue and adjusted EBITDA. For 2023 revenue, we now expect to finish in the range of $697.5 million to $700.5 million, representing an 11% growth at the midpoint. For the full year 2023 adjusted EBITDA, we now expect to finish in the range of $229 million to $231 million, representing a 32.9% margin at the midpoint, which represents a 40 basis point improvement from our original guidance at the beginning of the year and includes all of the SchoolMessenger investments we are making in the fourth quarter.

對於 2023 年全年，我們將提高收入和調整後 EBITDA 的指導範圍。對於 2023 年的收入，我們現在預計將在 6.975 億美元至 7.005 億美元之間，中間值成長 11%。對於 2023 年全年調整後 EBITDA，我們現在預計將在 2.29 億美元至 2.31 億美元之間完成，中間利潤率為 32.9%，比我們年初的原始指引提高了 40 個基點，包括我們在第四季度進行的所有SchoolMessenger 投資。

For modeling purposes, we expect full year capital expenditures, including capitalized software, of approximately $40 million to $42 million and share-based compensation expense of approximately $64 million to $67 million. Fully diluted shares by the end of the year are expected to be in the range of 202 million to 205 million shares.

出於建模目的，我們預計全年資本支出（包括資本化軟體）約為 4,000 萬至 4,200 萬美元，股權激勵支出約為 6,400 萬至 6,700 萬美元。到今年年底，完全稀釋後的股份預計將在2.02億股至2.05億股之間。

Overall, we're pleased with the results we saw in Q3. Our teams are executing the strategies for revenue and profit growth very well. I'm particularly happy with our progress on cash flow throughout the year.

總的來說，我們對第三季的結果感到滿意。我們的團隊正在很好地執行收入和利潤成長策略。我對全年現金流的進展感到特別滿意。

We're looking forward to finishing 2023 strong, where we expect to deliver low double-digit growth in ARR and meaningful margin expansion. This financial momentum reflects our strong business model and durability to grow both top line and profitability while continuing to invest significantly in long-term growth with our next-generation product investments, which we believe will position PowerSchool, our customers and students all over the world for a long future of success.

我們期待 2023 年能實現強勁成長，預計 ARR 將實現兩位數的低成長，利潤率也將大幅成長。這種財務動能反映了我們強大的商業模式和對收入和盈利能力增長的持久性，同時繼續透過我們的下一代產品投資進行大量投資以實現長期增長，我們相信這將為PowerSchool、我們在世界各地的客戶和學生奠定基礎為了長遠的成功。

I will stop here and ask the operator to please open the line for Q&A.

我會在這裡停下來，請接線員打開線路進行問答。

(Operator Instructions) Our first question today is from Saket Kalia with Barclays.

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

Hardeep, maybe we'll start with you. One of your competitors just recently kind of called out a little bit more activity in the K-12 market because of sort of ESSER funding and the associated time lines. Now I think you and the PowerSchool team have been very consistent in sort of talking about it as a helpful item, right, but not necessarily as discrete of a catalyst. But I'm just wondering, right, as we kind of get deeper and deeper into that time line, can you just talk about what PowerSchool is seeing from that just anecdotally?

哈迪普，也許我們就從你開始。由於 ESSER 的資金和相關的時間安排，您的一位競爭對手最近呼籲在 K-12 市場上進行更多活動。現在我認為您和 PowerSchool 團隊一直非常一致地將其視為一個有用的項目，對吧，但不一定是獨立的催化劑。但我只是想知道，隨著我們對時間軸的了解越來越深入，您能否簡單談談 PowerSchool 從中看到了什麼？

Yes, sure, Saket. I think it's very consistent with what we have been saying, and we recently have talked about it at our Investor Day, too, is that it is a helpful item. It provides a good cushion for school districts, especially as they came out of pandemic. There's been a lot of good investments around how -- not just kind of on the school operations, the teachers and services but also on how to make sure that you can accelerate the learning gains for the students.

是的，當然，薩凱特。我認為這與我們一直在說的非常一致，而且我們最近也在投資者日上討論過它，因為它是一個有用的項目。它為學區提供了良好的緩衝，特別是在它們擺脫大流行之後。關於如何進行大量良好的投資——不僅是在學校運作、教師和服務方面，而且還在於如何確保能夠加速學生的學習成果。

And as we've talked about, that it remains as a nice cushion to the overall funding environment. But as you know, our software is more for subscription software, and you do need the long-term commitment for that. So most of the districts would actually spend our dollars for our software [over the long] budget.

正如我們所討論的，它仍然是整體融資環境的良好緩衝。但如您所知，我們的軟體更多的是訂閱軟體，您確實需要為此做出長期承諾。因此，大多數地區實際上會在[長期]預算中花費我們的錢來購買我們的軟體。

With that said, if there is an implementation or early deployments, they might use ESSER funds to be able to get that going as well. And we do see some benefits there, especially on some of the projects, but we have been -- it hasn't had any material impact. We do see that for another year. As you mentioned that there is still about a good chunk which is not spent. Some of that has been earmarked, but there's still areas that districts continue to look at that. And we do get to provide a lot of services and support for districts around that as well.

話雖如此，如果有實施或早期部署，他們也可能會使用 ESSER 資金來實現這一目標。我們確實看到了一些好處，特別是在一些項目上，但我們一直在——它沒有產生任何實質影響。我們確實會在接下來的一年裡看到這種情況。正如您所提到的，仍有很大一部分未花費。其中一些已被指定，但各學區仍在繼續關注某些領域。我們也確實為週邊地區提供了大量的服務和支援。

Got it. Got it. That's very helpful. Eric, maybe for you for my follow-up. Can you just remind us kind of how much SchoolMessenger is adding to ARR revenue and EBITDA this year. And I know that it's too early to kind of guide to '24, but how should we sort of be thinking about SchoolMessenger on sort of an annual basis as we layer into our models?

知道了。知道了。這非常有幫助。艾瑞克，也許是為了你我的後續行動。您能否提醒我們 SchoolMessenger 今年為 ARR 收入和 EBITDA 增加了多少。我知道現在對 24 世紀進行指導還為時過早，但是當我們分層到我們的模型中時，我們應該如何每年考慮 SchoolMessenger？

So good to hear from you. So as we've been talking to all of you when we were looking at the SchoolMessenger business, one of the things that really attracted us to this company, not only just the strategic fit but also the profitability of the business. So what I would say in terms of the best proxy for looking at the financials is if you take the PWSC or the PowerSchool EBITDA multiples, assume a couple of turns better, you can get, if you will, I think, a nice framework for the way to think about the financials. As we're continuing to -- we're knee-deep into the planning phases right now, so still early stages for 2024, but we're certainly really optimistic in terms of the contribution it's going to have.

很高興收到你的來信。正如我們在研究 SchoolMessenger 業務時與大家討論的那樣，這家公司真正吸引我們的因素之一，不僅是戰略契合度，還有業務的盈利能力。因此，我想說的是，就查看財務狀況的最佳代理而言，如果您採用 PWSC 或 PowerSchool EBITDA 倍數，假設好一些，我認為，如果您願意的話，您可以獲得一個很好的框架思考財務的方式。我們目前正處於計劃階段，因此 2024 年仍處於早期階段，但我們對其將做出的貢獻確實非常樂觀。

In terms of ARR, I would -- at this point in time, my best estimate would be a 5-or-so percent incremental from an annual perspective. It could be a little bit more than that, but we're still kind of working through some of the buildup of the ARR as we work with the SchoolMessenger team.

就 ARR 而言，目前我的最佳估計是每年增加 5% 左右。可能比這個多一點，但我們仍然在與 SchoolMessenger 團隊合作時完成 ARR 的一些累積。

The next question is from Brian Peterson with Raymond James.

下一個問題是布萊恩彼得森和雷蒙德詹姆斯提出的。

So Eric, I wanted to hit on the ARR trends. I know there's some moving parts in the NRR, but we saw that moderate a bit, but ARR growth held relatively steady. Is it fair to read that as kind of the net new was stronger this quarter? Am I reading that right? And if so, any color on what drove that?

Eric，我想了解 ARR 趨勢。我知道 NRR 中有一些變化，但我們看到情況有所放緩，但 ARR 增長保持相對穩定。認為本季的淨新增業務更為強勁，這樣理解公平嗎？我讀得對嗎？如果是這樣，有什麼原因可以解釋這一點嗎？

Yes. Look, we have and we continue to see really good momentum in terms of the net new. And as I mentioned in my prepared remarks, we're still estimating ARR to be in the low double digits for the full year. So really good, continued momentum there.

是的。看，我們已經並將繼續看到淨新增方面的良好勢頭。正如我在準備好的演講中所提到的，我們預計全年的 ARR 仍將處於較低的兩位數水準。非常好，勢頭持續。

One thing just for everybody to keep in mind. And you'll recall last quarter, we had the LAUSD transaction, which ended up being a license and other opportunity versus going into ARR. So again, there's going to be a couple of moving parts related to the bigger pieces, but we did see a good part of the net new business in the quarter.

每個人都應該記住一件事。您還記得上個季度，我們進行了 LAUSD 交易，最終獲得了許可證和其他機會，而不是進入 ARR。同樣，將會有一些與更大的部分相關的移動部分，但我們確實看到了本季度淨新業務的很大一部分。

Great. I appreciate the perspective on that. And Hardeep, it sounds like the international partner traction is ramping up quicker than expected. Does that change the time line in which we should expect revenue on that road map? I'd love to get the color there.

偉大的。我很欣賞對此的看法。哈迪普，聽起來國際合作夥伴的吸引力成長得比預期更快。這是否會改變我們在該路線圖上預期收入的時間線？我很想在那裡得到顏色。

Sure. Thanks, Brian. Just adding to the last point, Brian, about your question about the net new logo, I think one of the -- in the prepared remarks, I talked about Florida DOE deal on talent management. Again, that's a net deal of a sizable state rollout of our talent solutions -- of multiple of our talent solutions across the entire state, for the Job Board as well as ATS, so application tracking for a good chunk of the districts in the state. So a great story for our net new logo, and we saw a few more of that as well.

當然。謝謝，布萊恩。布萊恩，我想補充最後一點，關於你關於網路新標誌的問題，我認為其中之一是——在準備好的發言中，我談到了佛羅裡達州能源部關於人才管理的協議。再說一次，這是我們在整個州大規模推出人才解決方案的淨交易——我們在整個州範圍內為就業委員會和 ATS 提供多個人才解決方案，因此對州內大部分地區的申請進行跟踪。對於我們的網路新標誌來說，這是一個很棒的故事，我們也看到了更多這樣的故事。

So moving to the other question. You're asking about the international. Absolutely, we are actually ahead. In fact, I think we are literally hours away from signing [over 12 months]. We basically would have all over 12 partners we were initially targeting and probably exceed that for the year as well.

那麼轉向另一個問題。你問的是國際的。毫無疑問，我們確實領先。事實上，我認為我們距離簽署實際上還有幾個小時的時間（超過 12 個月）。我們基本上會擁有超過 12 個我們最初目標的合作夥伴，並且可能會超過今年的數量。

And more importantly is that we have -- one of our key strategic element was coverage. And having the strategic exclusive partners that is covering -- allowing us to cover the most of the important global growth markets that we wanted to really make a mark, and we have done a phenomenal job of getting that. There is still a lot of hard work to get these partners fully enabled, get them -- the sales engine going. We're already seeing some of traction of that within the quarter. Especially in Egypt, for example, our partner, we already kind of had a good enablement and good traction on some of the deals. Saudi Arabia being another one. And we are seeing similarly Latin America to be a bright spot.

更重要的是，我們的關鍵策略要素之一是涵蓋範圍。擁有策略獨家合作夥伴，使我們能夠涵蓋大部分重要的全球成長市場，我們希望真正在這些市場上留下深刻的印象，而我們在這方面做得非常出色。要讓這些合作夥伴充分發揮作用，讓他們——銷售引擎運轉起來，仍然有很多艱苦的工作。我們已經在本季看到了一些牽引力。特別是在埃及，例如我們的合作夥伴，我們已經在一些交易上獲得了良好的支持和良好的牽引力。沙烏地阿拉伯是另一個。我們也看到拉丁美洲同樣成為亮點。

I think if you look through the international traction, look through our India push, both acquisitions as well as organic, I think we do think it is setting us up pretty well for next year growth. And we do expect that to be kind of a little slightly ahead of the plan, but more -- I would say over the -- what we've talked about, 3 to 5 years, we will be about $80 million to $100 million of business. I think we'll be very much on track on it.

我認為，如果你看看國際的吸引力，看看我們在印度的推動，無論是收購還是有機的，我認為我們確實認為這為我們明年的成長奠定了良好的基礎。我們確實預計這會比計劃稍微提前一點，但更多的是——我想說的是——我們已經討論過，3到5年，我們將花費大約8000萬到1億美元商業。我認為我們將在這方面走上正軌。

The next question is from Ryan MacDonald with Needham & Company.

下一個問題來自 Needham & Company 的 Ryan MacDonald。

Congrats on a nice quarter here. Hardeep, I'm curious on the India acquisition, what sort of drove the decision of sort of buying versus partnering as you're entering that market? And as we think about sort of guidance -- or not guidance for next year but fourth quarter, how much revenue and sort of margin are you expecting from a contribution perspective from that acquisition?

恭喜您度過了一個愉快的季度。 Hardeep，我對印度的收購很好奇，當您進入該市場時，是什麼推動了您做出購買與合作的決定？當我們考慮某種指導時——或者不是明年的指導，而是第四季度的指導時，從這次收購的貢獻角度來看，您預計會有多少收入和利潤率？

Sure. I can start that, and I'll ask Eric to feel for to jump in as well on the numbers. So Ryan, I think on the -- when you look at from the India market, first to just define you the market, it's actually one of the largest education markets in the world, right? 230 million K-12 students. 50 million plus of them are in actually private schools. So it's a very -- think about it from a size perspective, as big as U.S. just in the private school market itself, even outside the government schools as well. So it is a very attractive market for us. We also have a pretty sizable presence with our offshore center with almost 200-plus people there. So we have very strong capabilities to excel there.

當然。我可以開始了，我會請艾瑞克也參與討論數字。所以瑞安，我認為，當你從印度市場來看時，首先要定義這個市場，它實際上是世界上最大的教育市場之一，對嗎？ 2.3 億 K-12 學生。其中超過 5000 萬人實際上就讀於私立學校。因此，從規模角度考慮，私立學校市場本身就與美國一樣大，甚至在公立學校之外也是如此。所以這對我們來說是一個非常有吸引力的市場。我們的離岸中心也擁有相當大的規模，有近 200 多名員工。所以我們有非常強大的能力在這方面脫穎而出。

We have -- over the last couple of quarters, as we have put boots on ground on sales side, we actually saw pretty good traction of our Schoology product. We saw a lot of good traction on some of our even interest in analytics. But one of the areas we would continuously get on the SIS side was a little bit more localization required, especially around ERP, payments and some of the transportation and other logistics element for the local.

在過去的幾個季度中，隨著我們在銷售方面的落地，我們實際上看到了我們的 Schoology 產品的良好吸引力。我們發現我們對分析的一些興趣受到了極大的關注。但我們在 SIS 方面持續關注的領域之一是需要更多的本地化，特別是在 ERP、支付以及當地的一些運輸和其他物流要素方面。

So what we looked at is that it was great to have bringing an acquisition, which actually gives us a localization, still allows us to bring our broader platform to the Indian market, especially over classroom and analytics products, marry that with our SIS for larger, bigger opportunities, for a more bigger rollout. And you now have a perfect combination for something which is not present in the India market. Most of the market who has been addressed for the 50 million is through small shops.

因此，我們看到的是，進行收購真是太好了，這實際上給了我們本地化的機會，仍然使我們能夠將更廣泛的平台帶到印度市場，特別是在課堂和分析產品上，將其與我們的SIS 結合起來，以實現更大的目標。 ，更大的機會，更大規模的推廣。現在您擁有了印度市場上不存在的完美組合。 5000萬的市場大部分是透過小商店進行的。

So now this is also -- while it's -- already has about 1.2 million students out of the 50 million students that we talked about from private school, it's still a small company. So you talk about a couple of dollars per student typical pricing, right? So it's a very small acquisition. But what it does give us is it gives us about 900 schools proof point where we can cross-sell, start selling the broader vision.

所以現在這也——雖然它——已經擁有我們談到的私立學校 5000 萬學生中的大約 120 萬學生，但它仍然是一家小公司。所以你說的是每個學生幾美元的典型定價，對吧？所以這是一次非常小的收購。但它確實給了我們大約 900 所學校的證據，讓我們可以交叉銷售，開始銷售更廣泛的願景。

And also we're looking at more strategic partnerships and we've been -- for potential future acquisitions so we can kind of fill in the full platform including some of the assessments and curriculum around -- for the India market, which will allow us to really enter that market in a big way. So it's an exciting market. I'm really excited about this acquisition. Even though it's small, I think it's going to be very strategic over the long run for us.

此外，我們正在尋找更多的策略合作夥伴關係，我們一直在尋找未來潛在的收購，這樣我們就可以為印度市場填寫完整的平台，包括一些評估和課程，這將使我們能夠真正大舉進入這個市場。所以這是一個令人興奮的市場。我對這次收購感到非常興奮。儘管規模很小，但我認為從長遠來看，這對我們來說非常具有戰略意義。

Yes. I would just -- Ryan, I would just say in terms of -- as you think about the financials, as Hardeep mentioned, fairly immaterial, as you would expect with any tuck-in that we do. But again, for all the reasons that Hardeep mentioned, it really is you bring it into our distribution engine and our ability to be able to scale it. That's what really gave us access to the 900-plus schools. So the financial contribution will be relatively immaterial in the fourth quarter. But again, as we start to scale and as we start to build it up, we'll start to see that momentum really increase as we get into 2024 and beyond.

是的。我只是 - 瑞安，我只是說 - 正如你對財務狀況的思考，正如哈迪普提到的那樣，相當無關緊要，正如你對我們所做的任何投入所期望的那樣。但同樣，出於 Hardeep 提到的所有原因，這確實是您將其帶入我們的分發引擎以及我們能夠擴展它的能力。這才是我們真正能夠進入 900 多所學校的原因。因此，第四季的財務貢獻相對較小。但同樣，當我們開始擴大規模並開始建立它時，我們將開始看到隨著我們進入 2024 年及以後，這種勢頭真正增強。

Maybe just as a quick follow-up on SchoolMessenger. I think you talked about that acquisition having the potential to be accretive to overall EBITDA margins. But you also talked about sort of deep investment in the near term on integrating from a technology perspective. Should we expect sort of that accretion to happen in the next couple of quarters out? Or even with that investment, are you assuming that it would be immediately accretive?

也許只是 SchoolMessenger 的快速跟進。我認為您談到了此次收購有可能增加整體 EBITDA 利潤率。但您也談到了近期從技術角度進行整合的深度投資。我們是否應該預期這種成長會在接下來的幾個季度內發生？或者即使有了這筆投資，您是否認為它會立即增值？

Yes. So Ryan, great question. So one of the things that really got us excited about SchoolMessenger is really bringing it into our MyPowerSchool, which is the single pane of view for teachers and students, et cetera. So we are going to take a quarter or 2 for some investments that we're making for that integration. But post that, I would say, middle part of next year, you will start to see it be accretive to the company. But there is going to be some upfront implementation and integration work that we're doing. So it's going to be a quarter or 2 that we'll focus in on that. And then obviously, it was a profitable company prior to the acquisition, and we believe that we will get it back to that spot and probably even have some further leverage beyond that.

是的。瑞安，這是個好問題。因此，真正讓我們對 SchoolMessenger 感到興奮的事情之一是將其引入我們的 MyPowerSchool，這是教師和學生等的單一視圖。因此，我們將花費一到兩個季度的時間來進行一些整合投資。但我想說的是，明年中期，你將開始看到它對公司有增值作用。但我們正在進行一些前期實施和整合工作。因此，我們將在未來一兩個季度重點關注這個問題。顯然，在收購之前它是一家盈利的公司，我們相信我們將使它回到那個位置，甚至可能擁有除此之外的一些進一步的影響力。

The next question is from Stephen Sheldon with William Blair.

下一個問題是史蒂芬·謝爾頓和威廉·布萊爾提出的。

You got Pat McIlwee on for Stephen today. So just kind of further on some of these prior questions. You put up really nice profit this quarter with an EBITDA margin of 34%. And I know you mentioned there's going to be some expense related to SchoolMessenger in the fourth quarter, but that guidance for the quarter implies a margin of 31%. So just wanted to ask how we should think about that step down, if that's all -- for the most part SchoolMessenger or whether or not there are any other considerations on that front that are worth calling out.

今天你請派特·麥克伊爾威代替史蒂芬。因此，請進一步討論其中一些先前的問題。本季您的利潤非常可觀，EBITDA 利潤率為 34%。我知道您提到第四季度將會有一些與 SchoolMessenger 相關的費用，但該季度的指導意味著利潤率為 31%。因此，我只是想問一下，如果僅此而已，那麼我們應該如何考慮這一步驟——在很大程度上是 SchoolMessenger，或者在這方面是否有任何其他考慮因素值得提出。

Yes. No, it's a great question. And I think the most important way to kind of think about this, there is some timing of activity between Q3 and Q4. As I mentioned in my prepared remarks, there was some L&O activity that happened in Q3 that timing of it could have been Q3, Q4. It could have been either or, but we saw some of that happen in Q3. But what I think is most important is if you think about the full year from an adjusted EBITDA perspective, we are raising by $2 million. We are investing in this integration work that we have. We're super pleased with the Q3 performance.

是的。不，這是一個很好的問題。我認為考慮這個問題的最重要的方法是，第三季和第四季之間有一些活動的時間安排。正如我在準備好的發言中提到的，第三季發生了一些 L&O 活動，時間可能是第三季、第四季。可能是或者，但我們在第三季看到了其中的一些情況。但我認為最重要的是，如果你從調整後的 EBITDA 角度考慮全年，我們將籌集 200 萬美元。我們正在投資我們現有的整合工作。我們對第三季的表現非常滿意。

And what I would say is as you think about the full year, we'll end the full year around 33% in total. That's going to be up 2 points from where we ended full year 2022, which, again, is a full percentage point above our financial model. So we're hitting on all cylinders from a profit standpoint. So again, it's just going to be some minor quarter variability, but I think it's the most important to kind of think about where we're going to be for the full year.

我想說的是，當你考慮到全年時，我們全年的成長率將達到 33% 左右。這將比我們 2022 年全年結束時的水平高出 2 個百分點，這又比我們的財務模型高出整整一個百分點。因此，從利潤的角度來看，我們正在全力以赴。再說一次，這只是一些小的季度變化，但我認為最重要的是思考我們全年的發展。

Yes. Understood. And then my second question. You said ARR for data products. I think in the past -- maybe last quarter was up almost 100% year-over-year. And it sounds like traction there is -- continue to be really strong this quarter. Is there any additional color you can give on what exactly customers are using these products for at this point and then how you might expect that to evolve in the coming quarters and years?

是的。明白了。然後是我的第二個問題。你說的是數據產品的ARR。我認為過去——也許上個季度同比增長幾乎 100%。聽起來似乎有牽引力——本季繼續保持強勁勢頭。您是否可以進一步說明客戶目前使用這些產品的具體用途以及您預計在未來幾季和幾年內會如何發展？

Sure, Patrick. You're absolutely right, our growth rate continues to be pretty strong. And there are multiple use cases we are actually seeing. We saw a lot of use case first for understanding student engagement, right, in terms of, hey, where are my students, who's showing up on the class, what kind of performance we have. We saw that use case has further evolved into what we call MTSS, multi-tier system of support. We actually launched this a couple -- 2 years back and, in fact, had full rollout of this even at a state level in Alabama for the coming school year where every school district in Alabama has a full MTSS support for every student where they can comprehensively look at interventions and support programs for each student.

當然，派崔克。你說得對，我們的成長率仍然相當強勁。我們實際上看到了多個用例。我們首先看到了很多用於理解學生參與度的用例，對吧，嘿，我的學生在哪裡，誰出現在課堂上，我們有什麼樣的表現。我們看到用例已進一步發展為我們所謂的 MTSS，多層支援系統。事實上，我們在兩年前就推出了這項服務，事實上，甚至在阿拉巴馬州的州一級也已在即將到來的學年全面推出了這項服務，阿拉巴馬州的每個學區都盡可能為每個學生提供全面的MTSS 支援全面審視針對每個學生的干預措施和支持計劃。

If a kid is not pretending, you have support plans and intervention strategy for that. If a kid is behind on the academic side, how do you provide support for them. If kid has social, emotional, what support [or] strategies would be required for there. And similarly, you can keep going on career pathways and basically driving a very comprehensive way for supporting every student depending upon their individual need but scaling it to be able to do that at a district level, at a state level and bringing all the resources. And that has been one of the huge growth areas over the last, call it, 12, 18 months.

如果孩子沒有假裝，你就有相應的支持計畫和介入策略。如果一個孩子在學業方面落後，你如何為他們提供支持。如果孩子有社交、情緒上的需求，那麼需要哪些支持[或]策略。同樣，你可以繼續走職業道路，基本上推動一種非常全面的方式，根據每個學生的個人需求來支持他們，但要擴大規模，以便能夠在地區一級、州一級做到這一點，並提供所有資源。這是過去 12 個月、18 個月以來巨大成長的領域之一。

But we're also seeing a huge amount of interest now on Connected Intelligence. On the data product element, we're just bringing one data source where it actually is your data sandbox or you kind of think about your data lake. You're bringing data not just from PowerSchool systems, from your other systems, being able to have all kind of reporting and correlations, things which you may not even understand of where the challenges are, being able to have the data tell you that and also being able to have that as your (inaudible) for security, being able to have it for your -- being able to have a long-term audit as well on that.

但我們現在也看到人們對互聯智能產生了巨大的興趣。在資料產品元素上，我們只是引入一個資料來源，它實際上是您的資料沙箱，或者您可以想像一下您的資料湖。您不僅從 PowerSchool 系統中獲取數據，還從您的其他系統中獲取數據，能夠獲得各種報告和關聯性，甚至您可能不了解挑戰所在的事情，能夠讓數據告訴您這一點，並且也能夠將其作為您的（聽不清）安全性，能夠為您提供它- 也能夠對此進行長期審核。

So it has become a very strong data along with the Insights strategy, and we are seeing interest as we talked about the huge LA deal, Montana deal around not just the data strategy but tying it up to even workforce planning. So you can have a K-20 view on your students and understand where the students are and how you're going to support them. So these use cases continue to be really expansive.

因此，它與洞察策略一起成為一個非常強大的數據，當我們談論洛杉磯的巨大交易時，我們看到了人們的興趣，蒙大拿州的交易不僅圍繞著數據策略，而且將其與勞動力規劃聯繫起來。因此，您可以全面了解學生的 K-20 情況，了解學生的情況以及您將如何支持他們。因此，這些用例仍然非常廣泛。

One of the very exciting things to you in terms of future, what we are seeing is actually interest around AI and how -- think about how this Connected Intelligence is letting districts be able to use -- where they can bring their AI to the data so they can actually run their AI tools on top of Connected Intelligence rather than taking all the data and putting in the AI tools and having not -- risk of security and everything with these new technologies.

就未來而言，對您來說非常令人興奮的事情之一，我們所看到的實際上是對人工智慧的興趣，以及如何——想想這種互聯智慧如何讓各地區能夠使用——他們可以將人工智慧帶入數據中因此，他們實際上可以在互聯智慧之上運行他們的人工智慧工具，而不是獲取所有數據並將其放入人工智慧工具中，但這些新技術不會帶來安全風險和一切風險。

So that has been also of very strong interest. We do expect -- we are launching a lot of focus on educator analytics as well. That's going to be a phenomenal growth area for us as well and also on the career in K-20 broadly. So we do see this to be one of our highest growth area, and you're going to see continued very exciting opportunities here.

因此，這也引起了人們非常濃厚的興趣。我們確實期望——我們也將重點放在教育者分析上。對於我們以及 K-20 的職業生涯來說，這也將是一個驚人的成長領域。因此，我們確實認為這是我們成長最快的領域之一，您將在這裡看到持續的非常令人興奮的機會。

The next question is from Gabriela Borges with Goldman Sachs.

下一個問題來自高盛的加布里埃拉·博爾赫斯。

This is Callie Valenti on for Gabriela. Congrats on the quarter. First one for me would be, since the Investor Day, I've seen a few more press releases with deals that include kind of SIS plus some of the recent add-on functionality you've acquired or built out maybe in the customer space or some of the other modules. They seem very complementary to like the core SIS system though. And I wanted to ask, how important have these add-on modules been such as like special programs or behavioral support to the success you've been seeing in SIS and then just more broadly?

我是加布里埃拉的卡莉·瓦倫蒂。恭喜本季。對我來說，第一個是，自投資者日以來，我看到了更多關於交易的新聞稿，其中包括 SIS 以及您最近在客戶空間或中獲得或構建的一些附加功能。一些其他模組。不過，它們似乎與核心 SIS 系統非常互補。我想問，這些附加模組（例如特殊計劃或行為支援）對於您在 SIS 以及更廣泛的範圍內取得的成功有多重要？

Great question, Callie, and great to talk to you. I think, Callie, one of the things that I remember we talked about in the Investor Day with you was our -- how we are launching our clouds, right, rather than selling individual products but selling multiple add-on products like forms management, document management, special education. Similarly in the classroom, not just trying to sell LMS or assessment but also selling curriculum and instruction and selling behavior as we are looking at the student success, not just MTSS but also selling attendance interventions so -- and behavior elements, so you can actually look at the holistic way of providing support.

很好的問題，凱莉，很高興與你交談。我想，Callie，我記得我們在投資者日與您討論的一件事是我們如何推出我們的雲，對吧，不是銷售單一產品，而是銷售多種附加產品，例如表單管理，文件管理，特殊教育。同樣，在課堂上，不僅要銷售LMS 或評估，還要銷售課程和教學，以及銷售行為，因為我們正在關注學生的成功，不僅是MTSS，還要銷售出勤幹預措施以及行為要素，這樣您實際上就可以著眼於提供支援的整體方式。

We are seeing a good cross-sell of multiple of these modules happening at the same time. So that's what you're observing in the press release and our traction. We also talked about -- in our prepared remarks that when you look at the growth of some of our add-on acquisition, this is where our strategy is working very well. The timeliness of our innovation on things like MTSS and Connected Intelligence but also our add-on acquisition like attendance interventions and curriculum, these are very timely based on what we are seeing as one of the key demand in the market.

我們看到多個這些模組同時發生良好的交叉銷售。這就是您在新聞稿中所觀察到的以及我們的吸引力。我們還在準備好的演講中談到，當你看到我們一些附加收購的成長時，你會發現這就是我們的策略非常有效的地方。我們在 MTSS 和互聯智能等方面的創新的及時性，以及出勤幹預和課程等附加收購，這些都是非常及時的，基於我們所認為的市場關鍵需求之一。

So being able to have the pulse of the 80% of the U.S. market and being able to quickly have the partnerships as well as add-on and acquisitions to react quickly to top needs is allowing us to really drive additional growth in the market based on what is the most important thing for our districts. And you're actually right. If you think about from a school district perspective, there a lot of urban school districts who are worried about, how do I get my enrollment and how do I get more attendance. So then this intervention really speaks to that, and that's why you're seeing good growth.

因此，能夠掌握美國 80% 市場的脈搏，並能夠快速建立合作夥伴關係以及附加和收購，以對首要需求做出快速反應，使我們能夠真正推動市場的進一步增長對於我們地區來說最重要的事情是什麼？事實上你是對的。如果你從學區的角度考慮，有很多城市學區擔心，我如何入學，如何獲得更多的出席率。那麼這次幹預確實說明了這一點，這就是為什麼你看到了良好的成長。

There are a lot of discussion about curriculum and making sure that teachers have a standardized curriculum, so you can be compliant with the state policy. That's driving a lot of curriculum. And as you talk about SEL and behavior, there are still a lot of kids who are still struggling from the social, emotional side and giving them the support. So we are really addressing the most important things that our districts care about.

關於課程有很多討論，並確保教師擁有標準化課程，這樣就可以符合國家政策。這推動了許多課程的發展。當你談論 SEL 和行為時，仍然有很多孩子仍在社交、情感方面掙扎，無法給予他們支持。因此，我們確實正在解決我們地區關心的最重要的事情。

That makes sense. And then just second one for me quickly. I wanted to dig into the full year guidance a little bit. I know people have asked about this in a few different ways, but just to clarify, is there any portion of the like $8 million increase in full year guidance that's coming from outside of those 2 acquisitions you did?

這就說得通了。然後很快就給我第二個。我想深入研究一下全年指導。我知道人們已經以幾種不同的方式詢問過這個問題，但我想澄清一下，全年指導中 800 萬美元的增長是否有一部分來自於您所做的兩次收購之外？

So yes, as you think about it, majority of it is going to be acquisition related. So -- and I think while -- Callie, it's a good question. I think what's important, too, while I'm addressing this, as you think about the full year is absolutely in line with our expectations. What's important to understand, there has been a mix shift, if you will, between the categories. So our services business, given the fact that we've gotten more productive and more efficient as a team, services is coming in lower than our original expectations. That's absolutely good because the team is being more efficient and productive. And obviously, that revenue comes with a bit lower of a margin as well.

所以，是的，正如你所想，其中大部分都與收購有關。所以——我認為——卡莉，這是一個很好的問題。我認為，當我談論這個問題時，你對全年的看法絕對符合我們的預期，這一點也很重要。重要的是要理解，如果你願意的話，不同類別之間存在著混合轉變。因此，我們的服務業務，鑑於我們作為一個團隊已經變得更加富有成效和更加高效，服務的表現低於我們最初的預期。這絕對是件好事，因為團隊的效率和生產力都提高了。顯然，該收入的利潤率也略低。

As you look at the full year though, and I think it's important, and Hardeep and I look at not just the subs and support, but then also the L&O because we look at that as the, if you will, the software component of the revenue pie. That's still going to be in the low double digits growth from a full year perspective. So a bit of a mix shift across some of the components, but again, as you think about the full year, it's very much in line with our expectations.

不過，當你審視全年時，我認為這很重要，哈迪普和我不僅關注替補和支持，還關注 L&O，因為如果你願意的話，我們將其視為軟體組件收入餅。從全年的角度來看，這仍將是低兩位數的成長。因此，某些組成部分發生了一些混合變化，但同樣，當你考慮全年時，它非常符合我們的預期。

The next question is from 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 Matt Hedberg。

Hardeep, earlier on in the call, you -- I think you said -- you talked about some gen AI SKUs, products that were kind of just rolled out this quarter. I'm sort of curious, could you comment on any sort of thoughts on like pricing or adoption or just how we should think about the eventual -- obviously, it would probably be slow at first. But just kind of how do we think about the monetization side of that?

Hardeep，在電話會議的早些時候，您——我想您說過——您談到了一些 gen AI SKU，這些產品是本季剛剛推出的。我很好奇，您能否評論一下有關定價或採用等任何想法，或者我們應該如何考慮最終結果 - 顯然，一開始可能會很慢。但我們如何看待貨幣化方面的問題呢？

Great point, Matt. And we are really excited about some of the innovation we're putting on gen AI. I think when you look at from what we are seeing as not just the differentiation in the market but also from our ability to really do this at scale and embed it into the current applications these -- our districts are already used to, we have a very unique proposition for school districts. And that's why we're getting a lot of strong interest from multiple of districts and even some state level.

很好，馬特。我們對新一代人工智慧的一些創新感到非常興奮。我認為，當你從我們所看到的不僅是市場的差異化，還有我們真正大規模做到這一點並將其嵌入到當前應用程式中的能力來看時——我們的地區已經習慣了，我們有一個對於學區來說是非常獨特的主張。這就是為什麼我們得到了多個地區甚至一些州一級的強烈興趣。

And one of the things what you will see is that these are individual areas of one of the products we talked about in the Performance Matters. I want to be able to have new items and want to be able to create quiz. Well, we are making a GA of that product. I want to be able to create a full lesson plan. I want to have a tutoring help for my kids within Schoology. Well, that's going to be, again, add-on to Schoology. We will have an add-on for our Connected Intelligence, Unified Insights because I'm going to be able to assess quickly the data and have gen AI help me assist and find the areas rather than me navigating. So that's going to be an add-on to all of our data products.

您將看到的一件事是，這些是我們在效能問題中討論的產品之一的單獨區域。我希望能夠擁有新專案並希望能夠建立測驗。嗯，我們正在製作該產品的 GA。我希望能夠創建一個完整的課程計劃。我想在學校學中為我的孩子提供輔導幫助。嗯，這將再次成為學校學的附加內容。我們將為我們的互聯智慧、統一洞察添加一個附加元件，因為我將能夠快速評估數據，並讓 gen AI 幫助我協助和找到區域，而不是由我來導航。因此，這將成為我們所有數據產品的附加組件。

We are launching similarly on our parent side and within My PowerSchool and SchoolMessenger having a whole parent communication gen AI tool, which allows you to engage with the parents in a way that your parents can actually talk to the -- be able to use gen AI to understand how they can support their child and interact with the school. So these are phenomenal opportunities, even with the bigger picture outside of the personalized homework, which is a huge opportunity, for coaching for teachers.

我們在家長方面也推出了類似的產品，在My PowerSchool 和SchoolMessenger 中推出了一個完整的家長溝通gen AI 工具，它允許您以一種您的父母可以實際交談的方式與家長互動——能夠使用gen AI了解他們如何支持孩子並與學校互動。因此，這些都是非凡的機會，即使有個人化作業之外的更大前景，這對於教師輔導來說是一個巨大的機會。

We are -- these are all going to be add-on with multimillion-dollar product lines over the next couple of years, and you will start seeing monetization of that similar to how we monetize our other products, a couple of dollars per student. And on top of that is the data strategy. As I talked about, our Connected Intelligence is becoming the choice of platform for districts for their AI strategy. So we're supporting a broader AI marketplace of how any [PreK] district or who's a PowerSchool district wants to use another AI tool, they will use our platform on data as a way to enable their strategy. So we'll be able to monetize that whole Connected Intelligence at these districts as well.

我們 - 這些都將在未來幾年內添加到價值數百萬美元的產品線中，您將開始看到其貨幣化，類似於我們將其他產品貨幣化的方式，每個學生幾美元。最重要的是數據策略。正如我所說，我們的互聯智能正成為各地區實施人工智慧策略的平台選擇。因此，我們正在支援更廣泛的人工智慧市場，任何 [PreK] 學區或 PowerSchool 學區想要使用另一種人工智慧工具，他們將使用我們的數據平台作為實現其策略的一種方式。因此，我們也將能夠在這些地區將整個互聯智慧貨幣化。

The next question is from Joe Vruwink with Baird.

下一個問題是 Joe Vruwink 和 Baird 提出的。

I wanted to follow up on the big talent management deal in Florida. I think recently, PowerSchool and some of your peers have mentioned the back office solutions like human capital and ERP that's maybe been an area put on the back burner in 2023, but you see it in your pipeline that there's pent-up demand. Would you say the activity in 3Q is an indication maybe the pent-up demand is starting to unlock? Or is it too soon to make that declaration?

我想跟進佛羅裡達州的大型人才管理交易。我想最近，PowerSchool 和你們的一些同行提到了人力資本和 ERP 等後台解決方案，這可能是 2023 年被擱置的領域，但你們在管道中看到了被壓抑的需求。您是否認為第三季的活動顯示被壓抑的需求可能正在開始釋放？或者現在發表這樣的聲明還為時過早嗎？

Good question. So I think some time back, we do club both the talent piece and ERP because that's typically sold to the HR and the CFO. So they kind of -- from a buying perspective, that's a common buyer. So when we group them, our solutions and cloud by buyers, you kind of see them grouped up. But when you look at the talent by itself, this is recruiting teachers, onboarding them, professional development of teachers, substitute teachers, those product lines actually have been growing double digit consistently. In fact, I shared that if you look at year-to-date of new business, that has grown more than 20%. .

好問題。所以我想，不久前，我們確實將人才部分和 ERP 結合起來，因為這通常會賣給人力資源部和財務長。所以從購買的角度來看，他們是個普通的買家。因此，當我們按買家對我們的解決方案和雲端進行分組時，您會看到它們被分組在一起。但當你單獨看人才時，這是招聘教師、入職教師、教師專業發展、代課教師，這些產品線實際上一直在持續兩位數增長。事實上，我說過，如果你看看今年迄今為止的新業務，你會發現成長了 20% 以上。 。

So we have been able to see double-digit growth on our talent product consistently. Even prior to pandemic, during pandemic, even in post-pandemic, that continues to be very healthy. Some of the innovation we have put actually is now allowing us to even displace our nearest competitor like in the case of Florida. And we're actually seeing good traction on that, that we are becoming a clear leader for talent products in the market in K-12.

因此，我們的人才產品始終保持兩位數的成長。即使在大流行之前、大流行期間、甚至大流行之後，這仍然非常健康。我們所實施的一些創新實際上使我們能夠取代最接近的競爭對手，就像佛羅裡達州的情況一樣。事實上，我們看到了良好的吸引力，我們正在成為 K-12 市場人才產品的明顯領導者。

Now ERP is a market which still has been slow. And post -- while we saw good traction pre-pandemic, post-pandemic, it has really gone slow. And that continues to track to be in the low single digits. We do expect that 70% of the market being still legacy. As districts come out of their overall and get to a normal cadence, we are seeing some opportunities. And I think it will be a couple of years before we start drilling the growth there. But we do see pockets within there that could be very interesting for us for immediate -- in the near future, which we are tracking.

現在ERP是一個發展緩慢的市場。儘管我們在大流行前和大流行後看到了良好的牽引力，但它確實進展緩慢。而且這個數字繼續保持在較低的個位數。我們確實預期 70% 的市場仍然是傳統的。隨著各地區擺脫整體困境並恢復正常節奏，我們看到了一些機會。我認為我們還需要幾年的時間才能開始在那裡成長。但我們確實看到其中的一些地方可能對我們來說非常有趣——在不久的將來，我們正在追蹤這些內容。

Okay. And then I wanted to ask, it's 2 big quarters in a row of license strength. I know this is really a strategic emphasis. But just the sheer magnitude of some of these deals? I mean with license, you do get follow-on support contracts typically. So there is a recurring component that comes. I'm just wondering if you're seeing any decided shift in kind of buying preference where licenses might be in vogue for a period of time, and as it gives you a good relationship at a strategic account, we could actually see more license activity over the next year.

好的。然後我想問，這是連續兩個大季度的許可證強度。我知道這確實是一個戰略重點。但其中一些交易的規模究竟有多大？我的意思是，有了許可證，您通常會獲得後續支援合約。因此，出現了一個重複出現的組件。我只是想知道您是否看到購買偏好發生任何決定性轉變，其中許可證可能會在一段時間內流行，並且由於它使您與戰略客戶建立良好的關係，因此我們實際上可以看到更多的許可證活動在接下來的一年。

Yes. So Joe, it's Eric. I'll take that. So I think you guys know, obviously, in this quarter, there was about $4.5 or so million related to Puerto Rico that we've previously been talking about. But aside from that, there are deals such as LAUSD, where it was a strategic discussion with the customer. And it was more or less their desire in terms of how they wanted to utilize the software.

是的。喬，是埃里克。我會接受的。所以我想你們顯然知道，在本季度，我們之前討論過的與波多黎各相關的金額約為 4.5 百萬美元左右。但除此之外，還有一些交易，例如 LAUSD，這是與客戶進行的策略討論。這或多或少是他們想要如何使用該軟體的願望。

I think what I would say, I'm not sure it's going to be an emerging trend, if you will. But from our standpoint, we always will take the customers' consideration in. And if there's a deal that's most appropriately structured where it's more of a point-in-time type transaction, we'll absolutely do it. But L&O even internally is probably the hardest number for us to forecast because these items can be from any one quarter, can be a little bit higher or lower depending upon when they actually happen in the quarter.

我想我想說的是，如果你願意的話，我不確定這是否會成為新興趨勢。但從我們的角度來看，我們總是會考慮客戶的考慮。如果有一項交易結構最合適，更像是時間點類型的交易，我們絕對會這樣做。但即使在內部，L&O 也可能是我們最難預測的數字，因為這些項目可能來自任何一個季度，可能會稍高或略低，這取決於它們在該季度實際發生的時間。

So we're going to continue to monitor it, but I wouldn't necessarily leave the call thinking that, hey, there's going to be a tremendous amount of L&O next year because I just -- we just don't see it. There's going to be one-off deals from time to time, and we absolutely will be very transparent with the Street in terms of what those deals are and why they happen. But we don't necessarily see it as more of a pervasive trend.

因此，我們將繼續監控它，但我不一定會在電話結束時認為，嘿，明年將會有大量的 L&O，因為我只是 - 我們只是沒有看到它。時不時就會出現一次性交易，我們絕對會在這些交易的內容以及發生原因方面對華爾街非常透明。但我們不一定將其視為一種普遍趨勢。

The next question is from Brett Knoblauch with Cantor Fitzgerald.

下一個問題是布雷特·諾布勞赫和康托·菲茨杰拉德提出的。

Just curious as to the historic -- or I guess maybe historical acquisitions you guys have made, how they played out from a growth perspective. I know the main focus is going to be on integrating. But I guess when do you normally begin to turn on the upsell motion to existing customers? Is that something we should expect to happen maybe come 3Q of next year, that's when most renewals occur?

只是好奇歷史性的——或者我猜你們可能進行了歷史性的收購，從成長的角度來看它們是如何發揮作用的。我知道主要重點是整合。但我猜你通常什麼時候開始向現有客戶進行追加銷售？我們應該期望這種情況可能會在明年第三季發生嗎？當時大多數續訂都會發生？

Yes. So Brett, I think it's a good question. And what I would say is it will depend on the type of acquisition we make. So where we make smaller technical tuck-ins, whether it's like a Kinvolved or Kickboard or a Chalk, those pretty much happened in the next quarter. And putting those into our sales distribution engine, we get an immediate pop on those.

是的。布雷特，我認為這是一個很好的問題。我想說的是，這將取決於我們進行的收購類型。因此，當我們製作較小的技術折邊時，無論是 Kinvolved、Kickboard 還是 Chalk，這些幾乎都會在下個季度發生。將它們放入我們的銷售分銷引擎中，我們會立即得到這些結果。

When you're talking about a strategic asset like SchoolMessenger, we're absolutely focused, first and foremost, on integrating the product and getting the team settled. It's a sizable team that we've acquired as well. Making sure that all of the operational elements are in place. Meanwhile, our sales team is certainly building their plans in the pipeline and all of that.

當您談論像 SchoolMessenger 這樣的策略資產時，我們首先絕對專注於整合產品並讓團隊安定下來。我們也收購了一支規模相當大的團隊。確保所有操作要素均已就位。與此同時，我們的銷售團隊肯定正在製定他們的計劃等等。

So I would say that the business momentum will continue. You'll start to probably see an uptick in that particular space most likely in the second half of next year, as you mentioned, when we start seeing the renewals activity and a lot of the integration work is behind us.

所以我想說，業務動能將持續下去。正如您所提到的，您可能會在明年下半年開始看到該特定領域的成長，那時我們開始看到續約活動，並且許多整合工作已經完成。

The next question is from Fred Havemeyer with Macquarie.

下一個問題來自麥格理的 Fred Havemeyer。

I think I wanted to clarify something from a little bit earlier there, Eric. Did I -- I might have misheard this, too. Did I hear that the Puerto Rico deal was coming across in the license revenue line this quarter?

我想我想澄清早些時候的一些事情，埃里克。我是不是——我也可能聽錯了。我是否聽說波多黎各交易將在本季的授權收入中出現？

So just the scanner, the hardware part of it was. There's obviously a -- yes, so that's the only piece. There's obviously a services component of it as well as the subscription piece that came into the quarter.

所以只是掃描儀，它的硬體部分。顯然有一個——是的，所以這是唯一的一塊。顯然，其中有服務部分以及本季推出的訂閱部分。

Got it. And I wanted to ask, last quarter, I think you're talking about how implementation times could lead to some subscription revenues, particularly larger deals, lagging ARR. So I wanted to ask, is that a persistent trend that's tracking this quarter as well?

知道了。我想問，上個季度，我認為您正在談論實施時間如何導致一些訂閱收入（尤其是較大的交易）落後於 ARR。所以我想問，這是否也是本季持續存在的趨勢？

Not this quarter necessarily. I mean typically, you'll see that when you have extraordinarily large deals like a Puerto Rico where there's 250,000 students, large system implementation. You'll see the ARR recognized much quicker than the actual system gets turned over to the region, and then they start using it. So that was more pronounced previously when -- as you look at Q2, Q3. But we haven't seen deals of that size which would cause that delay, if you will, between ARR and revenue.

不一定是這個季度。我的意思是，通常情況下，您會看到，當您有非常大的交易時，例如波多黎各，那裡有 250,000 名學生，需要大型系統實施。您會看到 ARR 的識別速度比實際系統移交給該區域的速度要快得多，然後他們就開始使用它。因此，當您查看第二季和第三季時，這一點之前更加明顯。但我們還沒有看到如此規模的交易會導致 ARR 和收入之間出現延遲（如果你願意的話）。

Got it. And then, Hardeep, I spent a while in my end reading through the White House's AI executive order. And they spent at least a portion of it talking about their interest in generative AI and forming policy there, which will take place over the next year and change. So just curious if you have any initial thoughts about how the White House and U.S. government might be approaching generative AI. Generative AI and education specifically.

知道了。然後，哈迪普，我最後花了一段時間閱讀了白宮的人工智慧行政命令。他們至少花了一部分時間談論他們對產生人工智慧的興趣並制定政策，這些政策將在明年發生並發生變化。所以只是好奇你是否對白宮和美國政府可能如何處理生成人工智慧有任何初步想法。特別是生成人工智慧和教育。

Yes, sure, Fred. And just maybe adding to the last question first, Fred, I think it's very exciting, to Eric's point, about some of the big implementations that we've already achieved in the last quarter, so something to call out. We went live with Puerto Rico in record time, which is one of the biggest implementation of SIS in the about 7 months. And think about the complexity in Puerto Rico with 270,000 students, every parent using our system for the related support card. So it's a phenomenal stride, which is another phenomenal go-live on the multiple of their schools with the virtual schools, Maarif in Saudi Arabia. So we had some -- and Alabama with our Insights and LA with our Connected Intelligence. So very exciting go-lives as well, which actually this quarter was very, very timely.

是的，當然，弗雷德。也許首先補充最後一個問題，Fred，我認為就 Eric 的觀點而言，我們在上個季度已經實現的一些大型實施非常令人興奮，因此值得一提。我們以創紀錄的速度在波多黎各上線，這是大約 7 個月內最大規模的 SIS 實施之一。想想波多黎各的複雜性，這裡有 27 萬名學生，每個家長都使用我們的系統來獲得相關的支援卡。所以這是一個驚人的進步，這是他們的多個學校與虛擬學校（沙烏地阿拉伯的 Maarif）的另一個驚人的上線。所以我們有一些——阿拉巴馬州有我們的洞察力，洛杉磯有我們的互聯情報。上線也非常令人興奮，實際上本季非常非常及時。

I think your point about the generative AI, we are very much plugged into the policy as well as the ethics and the making sure that there is not a bias in the generative AI. In fact, one of the strengths of PowerSchool strategy compared to a lot of companies who will either come from non-K-12 or don't have the data or relationship with the district is that they don't have the opportunity to really factor in the district policies, the state standards as well as to be able to do this at scale and provide the assurance that it's going to have the broader policy elements factored in. And that makes a huge advantage for us in our strategy.

我認為你關於生成人工智慧的觀點是，我們非常關注政策和道德，並確保生成人工智慧不存在偏見。事實上，與許多來自非 K-12 或沒有數據或與學區關係的公司相比，PowerSchool 策略的優勢之一是他們沒有機會真正考慮因素在地區政策、國家標準中，以及能夠大規模地做到這一點，並保證將更廣泛的政策要素納入考量。這為我們的策略帶來了巨大的優勢。

So we are seeing not just districts and state but even charter schools and CMOs and private schools who are actually looking at us to be their partner in helping up shape that strategy to make sure they roll out these AIs in the right way. And having -- starting with the data strategy to make sure that the data elements are being used are -- there is identification, and all the elements of those are factored in, and then looking at the experience around how they can take advantage of the generative AI. So we are really in a very unique advantage position to be able to support districts, to be able to align to the federal policies as well.

因此，我們不僅看到地區和州，甚至特許學校、CMO 和私立學校也實際上希望我們成為他們的合作夥伴，幫助制定策略，以確保他們以正確的方式推出這些人工智慧。從資料策略開始，確保使用資料元素，進行識別，並將所有這些元素都考慮在內，然後看看他們如何利用資料元素的經驗生成式人工智慧。因此，我們確實處於非常獨特的優勢地位，能夠支持各地區，也能夠與聯邦政策保持一致。

The next question is from Koji Ikeda with Bank of America Securities.

下一個問題由美國銀行證券公司的 Koji Ikeda 提出。

This is George McGreehan on for Koji. I was wondering if you could kind of talk about when you look at the cohort of districts that have adopted several products and maybe the cohort that has fewer than several. Could you talk about -- are there any kind of differences there just in kind of like the -- any commonalities between those cohorts and then kind of what you kind of do to help drive that upsell?

我是喬治‧麥格里漢 (George McGreehan)，替 Koji 發言。我想知道您是否可以談談當您查看已採用多種產品的地區隊列以及採用少於幾種產品的地區隊列時的情況。您能否談談這些群體之間是否存在任何差異，例如有什麼共同點，然後您將採取哪些措施來幫助推動追加銷售？

This is a great question. In fact, we tackled this at length in our Investor Day where we talked about if you think about 20% of your customers are contributing right now to 60% of ARR and these are the customers who are actually using 4-plus products, and you look at over the last couple of years -- over the last 4 years, we have grown that base by 34%. So [double of over] 17% growth overall has been over the last 4 years.

這是一個很好的問題。事實上，我們在投資者日詳細討論了這個問題，我們討論瞭如果您認為 20% 的客戶現在貢獻了 60% 的 ARR，而這些客戶實際上正在使用 4+ 產品，那麼您看看過去幾年——在過去4 年裡，我們的基數成長了34%。因此，過去 4 年整體成長了 17% [兩倍以上]。

So to your point, there is very specific cohorts around when you have more than 4-plus products, you're going to actually do more growth. And you're going to buy faster with us, and you're going to get more value. So there is a lot of interest on -- but the exciting also part is 80% of our customers still doesn't have 4-plus products. So as we get more of our customers entrenched with 1 or 2 more products, get them into that cohort, we see exploration of growth. So a big focus for us with the cloud as well as go-to-market is getting more of our customers adopted on multiple products.

因此，就您的觀點而言，當您擁有超過 4 種以上的產品時，就會有非常特定的群體，您實際上會實現更多的成長。您將透過我們更快地購買，並且獲得更多價值。因此，人們對此很感興趣，但令人興奮的是，我們 80% 的客戶仍然沒有 4 以上的產品。因此，當我們讓更多的客戶使用一兩種以上的產品時，讓他們進入這個群體，我們就會看到成長的探索。因此，我們在雲端運算和市場推廣方面的一大重點是讓更多的客戶採用多種產品。

This concludes our question-and-answer session. I would like to turn the conference back over to Hardeep Gulati for any closing remarks.

我們的問答環節到此結束。我想將會議轉回哈迪普·古拉蒂（Hardeep Gulati）發表閉幕詞。

Thank you, operator. Thank you again for -- everyone, for joining us today. We are really looking forward to an exciting finishing of 2023. As you saw, a very strong quarter with both -- be it on guidance on revenue and EBITDA. We are really looking at how we can continue to execute into not just 2023 but 2024 and continue to deliver on the double-digit growth we shared at our Investor Day and [build] our path to $1 billion in the next 3 years both on top line and also 36% plus on our EBITDA profile, which we talked about. So runway for PowerSchool is very exciting. As we talked about, we're less than 6% penetrated. Huge opportunity, and our innovation is going to (inaudible). Really, I want to thank all of our PowerSchool team, our customers and our investors for continuing to believe in us, allowing us to really transform education and bring personalized education to every child. Thank you, everyone.

謝謝你，接線生。再次感謝大家今天加入我們。我們真的很期待 2023 年能有一個令人興奮的結局。正如您所看到的，無論是收入指引還是 EBITDA，這都是一個非常強勁的季度。我們正在真正考慮如何繼續執行到 2023 年和 2024 年，並繼續實現我們在投資者日分享的兩位數增長，並在未來 3 年內[構建]我們邁向 10 億美元的道路線，我們談到的EBITDA 概況也增加了36%。所以 PowerSchool 的跑道非常令人興奮。正如我們所說，我們的滲透率還不到 6%。巨大的機會，我們的創新將會（聽不清楚）。真的，我要感謝我們所有的 PowerSchool 團隊、我們的客戶和投資者繼續信任我們，讓我們能夠真正改變教育並為每個孩子帶來個人化教育。謝謝大家。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。