Q2 Holdings Inc (QTWO) 2024 Q1 法說會逐字稿

Good afternoon. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2 Holdings First Quarter 2024 Financial Results Conference Call. (Operator Instructions) I would now like to turn the call over to Josh Yankovich, Investor Relations. Sir, please begin.

午安.我叫帕姆，今天我將擔任你們的會議操作員。在此，我歡迎大家參加 Q2 Holdings 2024 年第一季財務業績電話會議。 （操作員說明）我現在想將電話轉給投資人關係部門的 Josh Yankovich。先生，請開始吧。

Thank you, operator. Good afternoon, everyone, and thank you for joining us for our first quarter 2020 conference call. With me on the call today are Matt Flake, our CEO; David Mehok, our CFO; Jonathan Price, our Executive Vice President of Strategy and Emerging Businesses; and Kirk Coleman, our President, who will join us for the Q&A portion of the call.

謝謝你，接線生。大家下午好，感謝您參加我們的 2020 年第一季電話會議。今天與我一起參加電話會議的是我們的執行長 Matt Flake； David Mehok，我們的財務長； Jonathan Price，我們的策略與新興業務執行副總裁；我們的總裁柯克·科爾曼 (Kirk Coleman) 將與我們一起參加電話會議的問答部分。

This call contains forward-looking statements that are subject to significant risks and uncertainties, including, among other things, with respect to our expectations for the future operating and financial performance of Q2 Holdings and for the financial services industry. Actual results may differ materially from those contemplated by these forward-looking statements, and we can give no assurance that such expectations or any of our forward-looking statements will prove to be correct. Important factors that could cause actual results to differ materially from those reflected in the forward-looking statements are included in our periodic reports filed with the SEC copies of which may be found on the Investor Relations section of our website, including our quarterly report on Form 10-Q for the first quarter of 2024 and subsequent filings and the press release distributed this afternoon regarding the financial results we will discuss today.

本次電話會議包含前瞻性陳述，這些陳述受到重大風險和不確定性的影響，其中包括我們對 Q2 Holdings 以及金融服務業未來營運和財務表現的預期。實際結果可能與這些前瞻性陳述預期的結果有重大差異，我們不能保證此類預期或我們的任何前瞻性陳述將被證明是正確的。可能導致實際結果與前瞻性陳述中反映的結果有重大差異的重要因素包含在我們向美國證券交易委員會提交的定期報告中，該報告的副本可以在我們網站的投資者關係部分找到，包括我們的季度報告表格2024 年第一季 10 季及後續文件和今天下午發布的有關我們今天將討論的財務業績的新聞稿。

Forward-looking statements that we make on this call are based on assumptions only as of the date discussed. Investors should not assume that these statements will remain operative at a later time, and we undertake no obligation to update any such forward-looking statements discussed in this call. Also, unless otherwise stated, all financial measures discussed on this call will be on a non-GAAP basis. A discussion of why we use non-GAAP financial measures and a reconciliation of the non-GAAP measures to the most comparable GAAP measures is included in our press release, which may be found on the Investor Relations section of our website and in our Form 8-K filed today with the SEC. We have also published additional materials related to today's results on our Investor Relations website.

我們在本次電話會議中所做的前瞻性陳述僅基於截至討論日期的假設。投資者不應假設這些聲明將在以後繼續有效，我們不承擔更新本次電話會議中討論的任何此類前瞻性聲明的義務。此外，除非另有說明，本次電話會議討論的所有財務指標都將基於非公認會計原則。我們的新聞稿中討論了我們為什麼使用非 GAAP 財務指標以及非 GAAP 指標與最具可比性的 GAAP 指標的調整情況，您可以在我們網站的投資者關係部分和表格 8 中找到該新聞稿。 K 今天向SEC 提交了文件。我們也在投資者關係網站上發布了與今天的業績相關的其他資料。

Let me now turn the call over to Matt.

現在讓我把電話轉給馬特。

Thanks, Josh. I'll start today's call by sharing our first quarter results and highlights from across the business. I'll then hand it over to Jonathan to discuss our strategy and emerging businesses. David will then discuss our financial results and guidance in more detail. Our financial results in the quarter outperformed our expectations, getting us off to a strong start towards the long-term financial targets we shared in February.

謝謝，喬許。我將首先分享我們第一季的業績和整個業務的亮點來開始今天的電話會議。然後我會將其交給喬納森討論我們的策略和新興業務。然後，大衛將更詳細地討論我們的財務表現和指導。我們本季的財務表現超出了我們的預期，為我們在 2 月分享的長期財務目標奠定了良好的開端。

In the first quarter, we generated a total non-GAAP revenue of $165.5 million above the high end of our guidance. We also continue to deliver on our commitment to improve profitability in the quarter with adjusted EBITDA of $25.2 million, also above the high end of our guide. And for the first time, we generated positive free cash flow for the first quarter of a year, a total of $6 million, demonstrating continued improvement in our financial profile.

第一季度，我們的非 GAAP 總收入超出了我們指導的上限 1.655 億美元。我們也繼續兌現提高本季獲利能力的承諾，調整後 EBITDA 為 2,520 萬美元，也高於我們指南的上限。今年第一季我們首次產生了總計 600 萬美元的正自由現金流，這表明我們的財務狀況持續改善。

In addition to our solid financial results, we continue to see strong demand in the first quarter with notable activity across net new expansion and renewals. We signed a broad mix of deals across asset tiers, highlighted by a greater number of total Tier 2 and 3 deals compared to any quarter last year as well as 4 Tier 1 digital banking deals in the quarter. Two net new and two that were meaningful expansions. Our single platform value proposition was a common theme across all four of these Tier 1 digital banking wins. On the net new side, we won an opportunity with a $20 billion bank that will consolidate from multiple disparate incumbent digital banking solutions and use Q2 for retail, small business and commercial.

除了我們穩健的財務表現之外，我們在第一季繼續看到強勁的需求，淨新增擴張和續約活動顯著。我們簽署了跨資產層的廣泛交易，其中第二層和第三層交易總數比去年任何季度都多，本季有 4 筆第一層數位銀行交易。兩個是全新的，兩個是有意義的擴充。我們的單一平台價值主張是所有四項一級數位銀行業務勝利的共同主題。在淨新方面，我們贏得了與一家價值 200 億美元的銀行合作的機會，該銀行將整合多個不同的現有數位銀行解決方案，並將第二季度用於零售、小型企業和商業。

The second Tier 1 win was a retail digital banking deal with a $10 billion bank, demonstrating that our platform remains highly differentiated, even in significant retail-only opportunities like this. And because of our single platform value proposition, we expect to compete for the commercial business over time. On the expansion side, we had significant wins with two existing Tier 1 customers that started with one component of the platform, either retail or commercial and purchased the other during the quarter. These deals represent just how valuable our expansion opportunities can be with one of them more than doubling the expected revenue contribution from that customer.

第二個一級勝利是與價值 100 億美元的銀行達成的零售數位銀行交易，這表明我們的平台仍然保持高度差異化，即使在像這樣的重大零售機會中也是如此。由於我們單一平台的價值主張，我們希望隨著時間的推移能夠爭取商業業務。在擴張方面，我們與兩個現有的一級客戶取得了重大勝利，他們從平台的一個組件（零售或商業）開始，並在本季度購買了另一個組件。這些交易反映了我們的擴張機會的價值，其中一筆交易可以使該客戶的預期收入貢獻增加一倍以上。

I want to take this opportunity to talk about the unique position Q2 is in for continued expansion with our customers. And why wins like the two I just mentioned are playing an increasingly important role in our bookings performance. Starting with our first line of code 20 years ago, we built a true single platform for retail, small business and commercial. Today, this approach remains tremendously valuable to our customers for a few reasons. First, it makes our customers more competitive by upgrading them to a best-of-breed solution while unifying the user experience across the customer segments and devices.

我想藉此機會談談 Q2 在與客戶持續擴張方面的獨特地位。為什麼像我剛才提到的兩場勝利在我們的預訂業績中發揮著越來越重要的作用。從 20 年前的第一行程式碼開始，我們為零售、小型企業和商業建立了一個真正的單一平台。如今，由於以下幾個原因，這種方法對我們的客戶仍然具有巨大的價值。首先，它透過將客戶升級到同類最佳解決方案，同時統一跨客戶群和裝置的使用者體驗，使客戶更具競爭力。

And because they can add features from across the platform, and lets them grow with their account holders. So if a retail end user now requires business functionality, they can provide it without having to move them to a different system with a different login and experience. It also helps our customers with vendor consolidation, allowing them to operate more efficient in moving to a single platform, they can consolidate from multiple systems and vendors down to one and use one set of code to roll out new capabilities.

因為他們可以從整個平台添加功能，並讓他們與帳戶持有人一起成長。因此，如果零售最終用戶現在需要業務功能，他們可以提供它，而無需將其移至具有不同登入和體驗的不同系統。它還幫助我們的客戶進行供應商整合，使他們能夠更有效地遷移到單一平台，他們可以將多個系統和供應商整合為一個，並使用一組程式碼來推出新功能。

And finally, it helps innovation occur faster, centralizing our customers' data and integrations, making it easier to maintain, to take upgrades and to add new products and services. Key elements of our product portfolio, such as Q2 Innovation Studio and our artificial intelligence capabilities are enhanced because we have this unified platform. And for Q2, we believe our single platform drives competitive advantage by improving our ability to land and expand. Due to the various legacy systems that financial institutions often rely on our customers frequently start with one major product set from us.

最後，它有助於更快地進行創新，集中客戶的數據和集成，使其更易於維護、升級以及添加新產品和服務。由於我們擁有這個統一的平台，我們產品組合的關鍵要素（例如 Q2 Innovation Studio 和我們的人工智慧能力）得到了增強。對於第二季度，我們相信我們的單一平台可以透過提高我們的落地和擴張能力來推動競爭優勢。由於金融機構經常依賴各種遺留系統，我們的客戶經常從我們的一套主要產品開始。

But once they've converted to Q2, it becomes easier to add product set through the expansion of our platform. One of our Tier 1 expansions from the quarter is a particularly good example of this, an $8 billion five bank holding company that originally adopted our commercial digital banking solutions will now add our retail solution to their platform in addition to the improved user experience associated with the single platform. The customer will also drive operational efficiencies by consolidating from five separate bank instances to serve their retail users into a single instance for both lines of business. And when you pair our platform with the breadth and strength of our customer base, we believe our expansion opportunity only becomes greater.

但是，一旦他們轉換到第二季度，透過擴展我們的平台來添加產品集就變得更加容易。我們本季的一級擴張就是一個特別好的例子，一家價值80 億美元的五家銀行控股公司最初採用了我們的商業數位銀行解決方案，現在除了改善與以下服務相關的用戶體驗之外，還將我們的零售解決方案添加到他們的平台中：單一平台。客戶還將透過將五個單獨的銀行實例（為其零售用戶提供服務）整合到兩個業務線的單一實例中來提高營運效率。當我們的平台與我們客戶群的廣度和實力相結合時，我們相信我們的擴張機會只會變得更大。

We have approximately 1,400 total customers. And to put our expansion potential into perspective, I'll illustrate the opportunity we have within our Tier 1 customer base alone. We have 90 Tier 1 customers that are using the digital banking platform and less than half of them are using both retail and commercial solutions. On top of that, we have another 130 Tier 1 customers who are not using our digital banking platform. A portion of our customer base that we believe presents great expansion opportunity as well.

我們共有約 1,400 名客戶。為了正確看待我們的擴張潛力，我將只說明我們在一級客戶群中擁有的機會。我們有 90 家一級客戶正在使用數位銀行平台，其中不到一半同時使用零售和商業解決方案。除此之外，我們還有另外 130 位一級客戶沒有使用我們的數位銀行平台。我們相信我們的部分客戶群也提供了巨大的擴張機會。

So while our net new sales performance has been strong, and we're optimistic about our pipeline through the remainder of the year, we anticipate this expansion dynamic to continue playing a key role in our overall bookings performance going forward. Outside of digital banking, our Centrix risk and fraud and relationship pricing teams continue to drive notable sales activity for the business. We had two significant Tier 1 relationship pricing renewals in the quarter. And on the Centrix side, no matter what's happening in the economic environment, fraud remains top of mind for our customers. Our Centrix products, which help them manage risk and compliance, particularly in the commercial banking space are regularly among our top cross-sell products. And in Q1, we saw over 50% growth in Centrix expansion bookings year-over-year.

因此，雖然我們的淨新銷售業績一直強勁，而且我們對今年剩餘時間的銷售管道感到樂觀，但我們預計這種擴張動力將繼續在我們未來的整體預訂業績中發揮關鍵作用。除了數位銀行業務之外，我們的 Centrix 風險、詐欺和關係定價團隊繼續推動業務的顯著銷售活動。本季我們進行了兩次重要的一級關係定價更新。在 Centrix 方面，無論經濟環境發生什麼，詐欺仍然是我們客戶最關心的問題。我們的 Centrix 產品可協助他們管理風險和合規性，特別是在商業銀行領域，通常是我們的頂級交叉銷售產品之一。在第一季度，我們看到 Centrix 擴充預訂量年增超過 50%。

So in summarizing the quarter, I'd reiterate the strength of our financial performance, which outpaced our guidance in terms of revenue and profitability. Our continued momentum on the net new side with the demand environment that we believe remains strong as we look at the rest of 2024 and a single platform with a broad, diverse customer base that puts us in a unique position to expand our existing relationships as a complement to our net new sales execution.

因此，在總結本季時，我要重申我們的財務表現強勁，在收入和獲利能力方面超出了我們的指導。展望 2024 年剩餘時間，我們相信需求環境仍然強勁，我們在淨新方面的持續勢頭，以及擁有廣泛、多樣化客戶群的單一平台，使我們處於獨特的地位，可以擴展我們作為對我們的淨新銷售執行的補充。

With that, I'll hand the call over to Jonathan to cover some updates from across our emerging businesses, where Q2 Innovation Studio and Helix are also playing a crucial role in deepening our customer relationships.

接下來，我將把電話轉交給喬納森，介紹我們新興業務的一些最新情況，其中 Q2 Innovation Studio 和 Helix 在深化我們的客戶關係方面也發揮著至關重要的作用。

Thanks, Matt. I'll start with Q2 Innovation Studio. As Matt mentioned, the fintech partner ecosystem we've built through Innovation Studio has become a critical part of our story, whether in winning net new deals, where it was a key driver in every net new win in the quarter or in terms of expansion where it's helping our customers unlock new business outcomes and in turn, strengthening our existing partnerships in ways that go far deeper than a typical incremental product expansion.

謝謝，馬特。我將從第二季創新工作室開始。正如馬特所提到的，我們透過創新工作室建立的金融科技合作夥伴生態系統已成為我們故事的關鍵部分，無論是在贏得淨新交易方面，還是在擴張方面，它都是本季每筆淨新交易的關鍵驅動力它幫助我們的客戶釋放新的業務成果，進而以比典型增量產品擴展更深入的方式加強我們現有的合作關係。

I'll share a quick customer story to demonstrate this dynamic. We have a Tier 1 bank that's been a Q2 customer for over 10 years. And like many financial institutions today, they are laser-focused on acquiring a new generation of customers. The bank believes embedding best-in-class fintech partners will be a key part of that strategy, and they are using Q2 Innovation Studio to rapidly deploy partner solutions integrated into their Q2 digital banking platform that will help them create a better user experience, reduce friction and meet the next generation of customers where they are.

我將分享一個簡短的客戶故事來展示這種動態。我們有一家 1 級銀行，該銀行已成為 Q2 客戶超過 10 年。與當今的許多金融機構一樣，他們專注於獲取新一代客戶。該銀行認為，嵌入一流的金融科技合作夥伴將是該策略的關鍵部分，他們正在使用Q2 Innovation Studio 快速部署整合到其Q2 數位銀行平台中的合作夥伴解決方案，這將幫助他們創造更好的用戶體驗，減少摩擦並與下一代客戶見面。

One partner the bank has deployed -- provides a digital customer support platform, providing AI-powered self-service and virtual chat capabilities, along with the ability to offer real-time dedicated banking guidance much like a traditional banker wood in the branch, right inside the digital banking experience. The rollout of this partner has had a significant impact for the bank. Customer adoption has been incredible with minimal marketing on the bank's part. More than 20,000 of their customers are using the new solution.

該銀行部署的一個合作夥伴提供數位客戶支援平台，提供人工智慧驅動的自助服務和虛擬聊天功能，以及提供即時專用銀行指導的能力，就像分行中的傳統銀行家一樣，對吧數位銀行體驗的內部。該合作夥伴的推出對銀行產生了重大影響。銀行方面只進行了極少的行銷活動，客戶的採用率卻令人難以置信。超過 20,000 名客戶正在使用新解決方案。

Those customers are now resolving a majority of their typical customer support issues using the virtual chat, which has had a direct correlation with the reduction in call center volumes. These gains have enabled the bank to rethink how they allocate their customer support functions, reducing time spent in their traditional call center and increasingly focusing on digital support and more strategic areas of their business. And this is just one of many fintech partners the bank has launched to sharpen their value proposition and deepen digital engagement with their customers, both on the retail and commercial side.

這些客戶現在正在使用虛擬聊天解決大多數典型的客戶支援問題，這與呼叫中心業務量的減少有直接關係。這些成果使該銀行能夠重新考慮如何分配客戶支援職能，減少在傳統呼叫中心花費的時間，並越來越關注數位支援和更具策略性的業務領域。這只是該銀行推出的眾多金融科技合作夥伴之一，旨在增強其價值主張並加深與客戶在零售和商業方面的數位互動。

For example, they've used multiple partners to provide commercial payment capabilities and have achieved more than a 40% growth in payments volume processed by these solutions when comparing first quarter of 2024 with the prior year period. They've used another fintech partner to drive approximately 130% growth in international FX payments over the last 12 months, which is a critical offering in recruiting new commercial customers that also drives revenue for the bank. And beyond the customer experience, the overall impact to their business is impressive, too.

例如，他們利用多個合作夥伴提供商業支付功能，並在 2024 年第一季與去年同期相比，這些解決方案處理的支付量實現了 40% 以上的成長。在過去 12 個月裡，他們利用另一家金融科技合作夥伴推動國際外匯支付量成長了約 130%，這是招募新商業客戶的關鍵產品，同時也為銀行帶來了收入。除了客戶體驗之外，對他們業務的整體影響也令人印象深刻。

Through revenue share and cost efficiencies, they offset approximately 50% of their total digital banking costs in 2023. When you consider stories like this, it's easy to see how Innovation studio helps drive renewal and expansion activity. It allows our customers to rapidly deploy best-in-class fintech solutions from a marketplace of more than 160 partners, and helps them drive deeper engagement across a broader product suite and it has the potential to offset the cost of their technology investment with us over time.

透過收入分成和成本效率，他們在 2023 年抵消了大約 50% 的數位銀行總成本。它使我們的客戶能夠從160 多個合作夥伴的市場中快速部署一流的金融科技解決方案，並幫助他們在更廣泛的產品套件中推動更深入的參與，並且有可能抵消他們與我們的技術投資成本時間。

Shifting gears to Helix, we have some quality wins in the quarter. including a net new fintech win and a meaningful program launch that I'll expand on briefly. In our February call, we mentioned a fintech win that was a competitive takeaway. And in the first quarter, just a few months later, we successfully converted and launched that customer's users on the Helix platform. We are very pleased with the speed of this launch. Not only does it demonstrate the flexibility and strength of the Helix technology, but also our team's ability to successfully launch programs and more specifically, conversions off another platform.

轉向 Helix，我們在本季度取得了一些品質上的勝利。包括一項新的金融科技勝利和一項有意義的計劃啟動，我將簡要介紹這一點。在我們二月的電話會議中，我們提到了金融科技的勝利，這是一個有競爭力的收穫。在第一季度，也就是幾個月後，我們成功地在 Helix 平台上轉換並推出了該客戶的用戶。我們對此次發布的速度感到非常滿意。它不僅展示了 Helix 技術的靈活性和優勢，還展示了我們團隊成功啟動程序的能力，更具體地說，是從另一個平台轉換的能力。

Our successful launch with this customer is a particularly useful proof point for us in the market as the current backdrop continues to put pressure on the broader banking as-a-service landscape. Additionally, this customer is the first to launch with the Bank of record partner that we announced in the third quarter of last year which means we were able to stand up the Helix platform, successfully launch its first program and start bringing revenue to the bank in roughly 6 months, about half the time it took us historically.

我們與該客戶的成功推出對我們在市場上來說是一個特別有用的證明，因為當前的背景繼續給更廣泛的銀行即服務格局帶來壓力。此外，該客戶是我們在去年第三季宣布的第一個與記錄合作夥伴銀行合作推出的客戶，這意味著我們能夠建立 Helix 平台，成功啟動其第一個專案並開始為銀行帶來收入約6 個月，大約是我們歷史上花費時間的一半。

As we continue to increase our focus on taking Helix to financial institutions, we believe that our ability to configure and deploy the Helix platform quickly and seamlessly alongside a bank's existing technology stack, will be an important differentiator for us.

隨著我們繼續更加重視將 Helix 引入金融機構，我們相信，我們能夠與銀行現有的技術堆疊一起快速、無縫地配置和部署 Helix 平台，這將成為我們的一個重要差異化因素。

With that, I'll hand the call over to David to discuss our financial results from the quarter.

接下來，我會將電話轉交給大衛，討論我們本季的財務表現。

Thanks, Jonathan. We started 2024 with a strong quarter. bookings drove meaningful subscription ARR and backlog growth. We delivered revenue and adjusted EBITDA results above the high end of our guidance and for the first time in company history, we generated positive free cash flow in the first quarter of the year despite normal seasonal cash flow headwinds.

謝謝，喬納森。 2024 年季度伊始，我們表現強勁。預訂推動了訂閱 ARR 和積壓訂單的顯著增長。我們的收入和調整後的 EBITDA 結果高於我們指導的上限，儘管存在正常的季節性現金流逆風，但我們在公司歷史上首次在今年第一季產生了正的自由現金流。

I will now discuss our financial results in more detail and conclude with our updated guidance for our second quarter and full year of 2024. Revenue for the first quarter was $165.5 million, an increase of 8% year-over-year and up 2% sequentially. Our total revenue growth was primarily from subscription-based revenues, which grew 13% year-over-year and 4% sequentially. The year-over-year and sequential growth was driven by new customer go-lives, strong expansion sales with existing customers as well as improved renewal economics. Typically, these expansion sales have a quicker time to revenue and are accretive to gross margin. The stronger renewal performance we are seeing is a continuation of the renewal strength we saw in the second half of last year. As we more effectively capture the value we deliver to our customers and extend contract duration.

我現在將更詳細地討論我們的財務業績，並以 2024 年第二季度和全年的最新指引作為結束語。我們的總收入成長主要來自訂閱收入，較去年同期成長 13%，較上季成長 4%。同比和連續成長是由新客戶上線、現有客戶的強勁擴張銷售以及續訂經濟效益的改善所推動的。通常，這些擴張銷售可以更快地實現收入，並且可以增加毛利率。我們看到的更強勁的續訂表現是去年下半年續訂力度的延續。隨著我們更有效地獲取為客戶提供的價值並延長合約期限。

As expected, our services and other revenue declined both sequentially and year-over-year, driven by continued pressure on the size and scope of our professional service engagements, which are more discretionary in nature. We do expect the magnitude of the year-over-year decline in services to improve throughout the year. But as mentioned previously, we continue to expect to see contraction going forward in this lower margin revenue stream due to the macroeconomic factors and financial pressures our customers are facing.

正如預期的那樣，我們的服務和其他收入連續和同比下降，這是由於我們的專業服務業務的規模和範圍持續面臨壓力，而這些業務本質上更具自由裁量權。我們確實預計服務業年減的幅度將在全年有所改善。但如前所述，由於宏觀經濟因素和客戶面臨的財務壓力，我們仍然預期利潤率較低的收入流將出現收縮。

Transactional revenue increased by 5% year-over-year and 7% sequentially, largely driven by Helix-based revenues associated with higher seasonal usage. Total annualized recurring revenue or total ARR grew to $761 million, up 13% year-over-year from $672.7 million at the end of the first quarter of 2023. Our subscription ARR grew to $615.1 million up 18% year-over-year from $521.3 million in the prior year period.

交易收入年增 5%，環比增長 7%，這主要是由與季節性使用量增加相關的基於 Helix 的收入推動的。年化經常性收入總額或總 ARR 增至 7.61 億美元，比 2023 年第一季末的 6.727 億美元增長 13%。年同期為100 萬元。

Our year-over-year subscription ARR growth was positively impacted by net new renewal and expansion-based bookings with total ARR growth partially offset by a decline in professional services revenue. Our ending backlog of approximately $1.9 billion increased $83 million sequentially or 5% and $387 million year-over-year or 25%, which is the largest year-over-year dollar increase in company history and the highest year-over-year growth rate we've seen in over 3 years. The year-over-year and sequential increases were partially driven by renewals as well as expansion bookings as our customers added new solutions and extended contract durations.

我們的訂閱 ARR 年成長受到基於淨新續訂和擴展的預訂的正面影響，總 ARR 成長部分被專業服務收入的下降所抵消。我們的期末積壓約為 19 億美元，比上一季增加 8,300 萬美元，年增 5%，年增 3.87 億美元，比上一季增加 8,300 萬美元，年增幅，也是最高的同比增長率我們已經見過3年多了。年比和連續成長的部分原因是續約以及擴展預訂，因為我們的客戶增加了新的解決方案並延長了合約期限。

In addition, our year-over-year growth was positively impacted by consistently strong net new bookings performance over the last 12 months. As we mentioned previously, the sequential change in backlog may fluctuate quarter-to-quarter based on the number of renewal opportunities available within a given quarter. Gross margins were 54.9% for the first quarter, up from 54% in the prior year period and down from 56% in the previous quarter. The year-over-year increase in gross margin was driven by an increasing mix of higher-margin subscription-based revenues and increased efficiencies within our delivery and support functions. The sequential change in our gross margin reflects the incremental implementation expenses recognized in the first quarter associated with the delivery of a high number of go-lives, which were more than in any single quarter in 2023.

此外，過去 12 個月持續強勁的淨新預訂表現對我們的同比增長產生了積極影響。正如我們之前提到的，積壓訂單的連續變化可能會根據給定季度內可用的續訂機會數量而按季度波動。第一季毛利率為 54.9%，高於去年同期的 54%，低於上一季的 56%。毛利率的同比增長是由於利潤率較高的訂閱收入的增加以及我們的交付和支援職能效率的提高所推動的。我們毛利率的連續變化反映了第一季確認的與大量上線相關的增量實施費用，該費用比 2023 年任何一個季度都多。

Sequential margins were also impacted by a seasonal increase in payroll taxes and 401(k) matching expenses due to the timing of annual bonus payments and the reset of taxes and 401(k) matching eligibility. Looking ahead, we anticipate continued year-over-year improvements in gross margin for each subsequent quarter and the full year. Total operating expenses for the first quarter were $72.8 million or 44% of revenue compared to $72.5 million or 47.4% of revenue in the first quarter of 2023 and $74.8 million or 46.1% of revenue in the fourth quarter of 2023.

由於年度獎金支付時間以及稅收和 401(k) 匹配資格的重置，工資稅和 401(k) 匹配費用季節性增加也影響了連續利潤率。展望未來，我們預計隨後每季和全年的毛利率將繼續年比改善。第一季的總營運費用為7,280 萬美元，佔營收的44%，而2023 年第一季的總營運費用為7,250 萬美元，佔營收的47.4%，2023 年第四季的總營運費用為7,480萬美元，佔收入的46.1%。

The year-over-year and sequential reduction in operating expenses as a percent of revenue was driven primarily by better scaling of sales and marketing expenses relative to revenue as we continue to drive improvement in our cost of acquiring new revenue, which is partially attributable to lower costs associated with expansion bookings. The sequential decline was impacted by approximately $1 million based on the seasonality of customer events, which are more pronounced in the fourth quarter.

營業費用佔收入百分比的同比和環比下降主要是由於銷售和行銷費用相對於收入的比例更好，因為我們繼續推動獲得新收入的成本的改善，這部分歸因於降低與擴展預訂相關的成本。由於客戶活動的季節性，環比下降約 100 萬美元，這在第四季度更為明顯。

As a reminder, in the second quarter, we will be hosting our customers and prospects at Q2 Connect, our annual conference which will have an approximate $1.5 million impact sequentially on sales and marketing expense. Total adjusted EBITDA was a record $25.2 million up from $16.5 million in the prior year period and $23.2 million in the previous quarter. We ended the year with cash, cash equivalents and investments of $338.5 million, up from $324 million at the end of the previous quarter. We generated cash flow from operations in the first quarter of $13.4 million, driven by improved profitability and continued effective working capital management.

提醒一下，在第二季度，我們將在 Q2 Connect 年度會議上接待我們的客戶和潛在客戶，這將連續對銷售和行銷費用產生約 150 萬美元的影響。調整後 EBITDA 總額達到創紀錄的 2,520 萬美元，高於去年同期的 1,650 萬美元和上一季的 2,320 萬美元。截至年底，我們的現金、現金等價物和投資為 3.385 億美元，高於上一季末的 3.24 億美元。在獲利能力提高和持續有效的營運資本管理的推動下，我們第一季的營運現金流達到 1,340 萬美元。

For the quarter, we also generated free cash flow of $6 million, marking a breakthrough from the historical pattern of negative free cash flow during our first calendar quarter, which carries seasonally higher cash costs associated with our annual bonus and end of year commission payouts. As we mentioned previously, we continue to expect free cash flow as a percentage of adjusted EBITDA to be over 60% in 2024 with a target of continued expansion thereafter.

本季度，我們還產生了600 萬美元的自由現金流，標誌著我們第一個季度自由現金流為負的歷史模式的突破，該模式導致與我們的年度獎金和年終佣金支付相關的季節性更高的現金成本。正如我們之前提到的，我們仍然預計 2024 年自由現金流佔調整後 EBITDA 的百分比將超過 60%，並目標是此後繼續擴張。

Let me wrap up by sharing our second quarter and full year 2024 guidance. We forecast second quarter non-GAAP revenue in the range of $169 million to $172 million. And full year non-GAAP revenue in the range of $686 million to $692 million, representing year-over-year growth of 10% to 11% for the full year. We also anticipate subscription revenue growth for the full year to be at least 14% above the initial outlook we had 6 months ago, driven by better-than-expected expansion and renewals bookings as well as the organic growth we've seen to start the year. We forecast second quarter adjusted EBITDA of $26 million to $28 million and full year 2024 adjusted EBITDA of $110 million to $114 million, representing approximately 16% to 17% of non-GAAP revenue for the year.

最後，我要分享我們的第二季和 2024 年全年指引。我們預測第二季非 GAAP 收入在 1.69 億美元至 1.72 億美元之間。全年非 GAAP 收入在 6.86 億美元至 6.92 億美元之間，全年年增 10% 至 11%。我們也預計，全年的訂閱​​收入成長將比我們 6 個月前的最初預期增加至少 14%，這得益於好於預期的擴展和續訂預訂以及我們看到的有機成長。我們預計第二季調整後 EBITDA 為 2,600 萬至 2,800 萬美元，2024 年全年調整後 EBITDA 為 1.1 億至 1.14 億美元，約佔當年非 GAAP 收入的 16% 至 17%。

In summary, we had a great start to the year, building on the momentum coming out of 2023 and with continued strong growth in subscription ARR and revenue as well as adjusted EBITDA results above the high end of our guidance. Our first quarter performance and projections for the remainder of the year give us the confidence to lift our full year outlook and reiterate our expectation of hitting our Rule of 30 target on a total revenue growth basis in the back half of the year. And looking beyond this year, with the continued progress on our profitable growth strategy, the quality of our pipeline and substantial opportunity afforded to us to continue to expand with our existing customers, we believe we're well positioned to continue executing towards the long-term targets we communicated last quarter.

總而言之，我們以 2023 年的勢頭為基礎，在今年取得了良好的開局，訂閱 ARR 和收入持續強勁增長，調整後的 EBITDA 業績高於我們指導的上限。我們第一季的業績和今年剩餘時間的預測使我們有信心提升全年展望，並重申我們預計在下半年實現總收入成長的 30 規則目標。展望今年，隨著我們獲利成長策略的持續進展、產品線的品質以及為我們提供的繼續與現有客戶一起擴張的大量機會，我們相信我們有能力繼續執行長期目標。 。

With that, I'll turn the call back over to Matt for his closing remarks.

接下來，我會將電話轉回給馬特，讓他作結語。

Thanks, David. I'll conclude by reiterating a few key takeaways from the quarter. First, we continued our sales momentum with a broad mix of net new and expansion wins. The two Tier 1 digital banking expansion wins from the quarter demonstrate the unique opportunity we have to deepen our existing relationships because of our single platform and large, diverse customer base. And given the strength of the demand environment, the state of our pipeline and our recent win rates, we're optimistic about the remainder of the year.

謝謝，大衛。最後，我將重申本季的一些關鍵要點。首先，我們透過淨新增和擴張的廣泛組合繼續保持銷售勢頭。本季兩次一級數位銀行擴張的勝利證明，由於我們的單一平台和龐大、多樣化的客戶群，我們必須有深化現有關係的獨特機會。考慮到需求環境的強勁、我們的管道狀況以及我們最近的獲勝率，我們對今年剩餘時間持樂觀態度。

Our emerging businesses continue to execute well, and we saw key sales and renewal contributions from our Centrix risk management and relationship pricing solutions as well. And finally, we delivered financial results that outperformed our expectations while also achieving positive free cash flow for the first time in the first quarter. These results represent a promising start towards achieving the 3-year financial targets we shared in February and underscore my confidence in the opportunities ahead of us. Thank you, and I'll hand it over to the operator for questions.

我們的新興業務持續表現良好，我們也看到了 Centrix 風險管理和關係定價解決方案對銷售和更新的重要貢獻。最後，我們的財務表現超出了我們的預期，同時在第一季首次實現了正的自由現金流。這些結果代表了我們在二月共同實現的三年財務目標方面的良好開端，並強調了我對我們面前機會的信心。謝謝，我會將其交給接線員詢問。

(Operator Instructions) And your first question comes from the line of Alex Sklar.

（操作員說明）您的第一個問題來自 Alex Sklar。

Great. Matt, just to start with you, I appreciate all the expansion opportunity comments and the excitement around that. I know a lot of your customers are proud prospects are probably on multiyear contracts for some of the solutions you're trying to expand with them on. Has anything changed in terms of their willingness to look at Q2 solutions earlier in their contract cycles and not worry about timing just given renewed emphasis around deposits and efficiencies that they can gain around a single platform?

偉大的。馬特，首先，我感謝所有關於擴展機會的評論以及與之相關的興奮。我知道您的許多客戶都對您試圖與他們一起擴展的某些解決方案簽訂了多年合同，對此感到自豪。他們願意在合約週期的早期考慮第二季的解決方案，而不用擔心時機，只是重新強調他們可以透過單一平台獲得的存款和效率，這方面有什麼變化嗎？

Yes. Thanks, Alex. Well, the contractors for the SKU that they're running. And so what happens particularly in the larger deals is they buy their retail solution, it takes a year to deliver, we deliver. They have a good experience and then they kind of get the team together on the commercial side or on precision lender or one of the larger SKUs and say, let's go look at this to take advantage of all the stuff I talked about there about the single platform.

是的。謝謝，亞歷克斯。好吧，他們正在運行的 SKU 的承包商。因此，特別是在較大的交易中，他們購買他們的零售解決方案，需要一年的時間才能交付，而我們交付。他們擁有良好的經驗，然後他們在商業方面或精準貸款人或較大的SKU 之一上將團隊聚集在一起，並說，讓我們看看這個，以利用我在那裡談到的有關單一產品的所有內容平台。

So but the advantage to us is you have a master services agreement with them. You had a good experience on the conversion. They begin to know how you work and they want to do the expansion with us. And so that's really why we highlighted that in the call, which is, as we talked about, we have 220 customers that are greater than $5 billion in assets and 40% of them are only running one of our large SKUs. So they can go buy any of these products at any time. It's more about capacity that they have to project manage and the organization ready to do it. So it's a tremendous opportunity, and I appreciate you ask the question because we wanted to make sure that we articulated it to the shareholders.

因此，對我們來說，優勢在於您與他們簽訂了主服務協議。您在轉換過程中獲得了良好的體驗。他們開始了解您的工作方式，並希望與我們一起擴張。這就是我們在電話會議中強調這一點的真正原因，正如我們所說，我們有 220 個客戶，資產超過 50 億美元，其中 40% 只運行我們的大型 SKU 之一。所以他們可以隨時購買任何這些產品。更多的是關於他們必須進行專案管理的能力以及準備進行專案管理的組織。所以這是一個巨大的機會，我很感謝你提出這個問題，因為我們想確保我們向股東闡明了這一點。

Okay. Great. And David, just maybe a two-part question for you. Last quarter, you kind of called out the largest delta between booked and implemented ARR that you've had in some time. Just with another quarter past, can you update us on the visibility of getting that ARR live?

好的。偉大的。大衛，也許我想問你一個由兩個部分組成的問題。上個季度，您提到了一段時間內的預訂 ARR 與實施 ARR 之間的最大增量。又過了一個季度，您能否向我們介紹一下 ARR 上線的最新情況？

And then second part here, just given the comments of some of these expansion bookings and faster time to revenue, is there any change that we should think about in terms of percentage of your bookings on average that can impact revenue kind of in year or faster?

然後是這裡的第二部分，只是考慮到其中一些擴展預訂的評論和更快的收入時間，我們是否應該考慮平均預訂百分比方面的任何變化，這些變化可能會影響一年或更快的收入？

Yes. Sure, Alex. I'll take the first one and then move on to the second. On the ARR, now live. So last quarter, if you remember, one of the things that we conveyed and we sort of gave this in the context of the overall ARR commentary, was that 18% of that wasn't live. That number is now down to 15%. But two things to keep in mind. The first one is Q4 was a record bookings quarter, and we talked a lot about the momentum that continues into Q1. But Q4 is seasonally large and that's part of the reason why you saw so much of that now live.

是的。當然，亞歷克斯。我將採取第一個，然後繼續第二個。在 ARR 上，現已上線。所以上個季度，如果你還記得的話，我們傳達的一件事是，我們在整體 ARR 評論的背景下給出了這一點，那就是其中 18% 不是即時的。現在這個數字已降至 15%。但有兩件事要記住。第一個是第四季的預訂量創歷史新高，我們談論了很多關於持續到第一季的勢頭。但第四季的季節性影響很大，這就是為什麼你現在看到這麼多這樣的情況的部分原因。

The second part of that is that 15% number is still the second highest we've seen in years. So we're still at a really high percentage of our overall ARR base that is not in the ground yet. So that's great news for us in terms of visibility. It's great news for us in terms of what we've already told you in terms of those long-term projections.

第二部分是 15% 的數字仍然是我們多年來看到的第二高數字。因此，我們的整體 ARR 基礎中尚未落地的比例仍然很高。因此，就可見性而言，這對我們來說是個好消息。就我們已經告訴您的長期預測而言，這對我們來說是個好消息。

The second question, I think, was around what percentage of our bookings do we see current year. The easiest way to think about that is with net new sort of bifurcate net new and cross our expansion. On the net new side, anything that we do going forward for the rest of the year, you're going to see very little revenue. As you know, the implementation cycle, depending on the size of the deal, it can be anywhere from 9 to 15 months. Conversely, on the cross or expansion side of things, we're seeing a lot of strength and the time to revenue for that is quicker.

我認為第二個問題是我們今年的預訂量佔多少百分比。考慮這個問題的最簡單方法是使用新的網絡，將新的網絡分叉並交叉我們的擴張。在淨新方面，我們在今年剩餘時間所做的任何事情，你都會看到很少的收入。如您所知，根據交易規模，實施週期可能為 9 至 15 個月。相反，在交叉或擴張方面，我們看到了很大的實力，而且實現收入的時間也更快。

But you still do see, let's say, 4 to 9 months depending upon the types of expansion solution that we have. So we'll see some of that revenue but the majority of it is going to come in the second half of the year. The one that we do see immediate time to revenue is some of the expansion opportunity we have with specific licenses for our solutions. So there is an immediate recognition for some of that. And we did see strength, quite frankly, in Q1, and that's part of the revenue upside that you saw in what we delivered.

但您仍然會看到，比如說，4 到 9 個月，具體取決於我們擁有的擴展解決方案的類型。因此，我們將看到其中一些收入，但大部分將在今年下半年實現。我們確實看到立即實現收入的一個原因是我們透過解決方案的特定授權獲得了一些擴展機會。因此，其中一些立即得到了認可。坦白說，我們確實在第一季看到了強勁的勢頭，這是您在我們交付的產品中看到的收入成長的一部分。

Your next question comes from Terry Tillman.

您的下一個問題來自特里·蒂爾曼。

Congrats from me as well. I'll keep it to two questions. The first question is, I like all the color in terms of the $3 billion ARR opportunity in the $90 million and the $130 million I don't know if this is for you, Matt, or whoever else, but I wanted to probe on the 90 Tier 1s, I think you're only using one of your two digital banking sides of the house and then the 130 Tier 1s that actually don't use any digital banking.

我也表示祝賀。我將保留兩個問題。第一個問題是，我喜歡 9000 萬美元和 1.3 億美元中 30 億美元 ARR 機會的所有色彩，我不知道這是否適合你、馬特或其他任何人，但我想探究一下90 個一級機構，我認為您只使用房子的兩個數位銀行一側之一，然後130 個一級機構實際上不使用任何數位銀行。

As you look out at your pipeline and how you've got your go-to-market kind of targeting, what of those two sets seems the most kind of actionable near term, again, the $90 million or the $130 million? Kind of curious, any kind of commentary you could share on that. And then I had a follow-up for Jonathan.

當你檢視自己的管道以及如何確定進入市場的目標時，這兩組中哪一組似乎是近期最可行的，9000 萬美元還是 1.3 億美元？有點好奇，你可以對此發表任何評論。然後我對喬納森進行了跟進。

Yes, Terry. I would say the 90% are probably because they're using either retail or commercial banking with us. And so they're using the platform. And what we're really seeing right now, as I talked about in the script is that these banks are trying to find efficiencies, and they're trying to find a better digital experience.

是的，特里。我想說 90% 可能是因為他們使用我們的零售或商業銀行業務。所以他們正在使用這個平台。正如我在劇本中談到的，我們現在真正看到的是，這些銀行正在努力提高效率，他們正在努力尋找更好的數位體驗。

And when you're running our retail product and you want to add commercial, you don't have to implement a whole new system, you have to learn a new back office. You don't have to do new hooks into the core check imaging statement imaging, ACH and wire, the system is there. It's about on-demand and turning on those features and then converting the customers over. So there's a tremendous amount of efficiency that the bank or credit union gets from turning on those.

當您運行我們的零售產品並且想要添加商業時，您不必實施全新的系統，您必須學習新的後台。您不必在核心檢查成像語句成像、ACH 和電線中添加新的鉤子，系統就在那裡。這是關於按需並打開這些功能，然後轉換客戶。因此，銀行或信用合作社透過啟用這些功能可以獲得巨大的效率。

And so those are the ones where we're seeing a tremendous amount of demand. If you look at the two of the commercial -- of the Tier 1s that we signed that were cross-sells one added retail and one added commercial. So all of those are what I would say the opportunities are, but that doesn't mean that we're not calling on the 130 to cross-sell and retail sell business, corporate, precision lender, fraud products.

因此，我們看到這些需求量龐大。如果你看我們簽署的交叉銷售一級廣告中的兩個廣告，一個是增加的零售，一個是增加的商業。因此，所有這些都是我所說的機會，但這並不意味著我們不會呼籲 130 交叉銷售和零售業務、企業、精準貸款機構、詐欺產品。

There's just a lot of opportunity there. And we have a customer base, I don't know if you saw it or not, but the top 100 Forbes banks were announced a couple, a week or so ago, 58 of those are Q2 customers. So we have a really solid customer base. I think we have the premier customer base in North America for financial institutions and 58 of the top 100 Forbes customers use our technology. So as a tremendous opportunity there. We have a really strong customer base to go cross sell into. So we're obviously excited about the opportunities.

那裡有很多機會。我們有一個客戶群，我不知道你是否看到了，但福布斯前 100 家銀行在大約一周前公佈，其中 58 家是第二季的客戶。所以我們擁有非常堅實的客戶群。我認為我們在北美擁有首要的金融機構客戶群，福布斯 100 強客戶中有 58 家使用我們的技術。所以這是一個巨大的機會。我們擁有非常強大的客戶群，可以進行交叉銷售。所以我們顯然對這些機會感到興奮。

That's great, Matt. And I guess maybe, Jonathan, on the Innovation studio. The anecdote about the one customer kind of getting over 50% of the contracted platform kind of almost making it up through the fees and just what they can do for their business. I'm curious, though, you have 160-plus partners it seems like -- and you're continuing to expand it. How are you getting monetization? Because it seems like you're providing value for both your end customer, but then also the partners. So anything you can quantify on innovation studio monetization or how to think about it over the next couple of years?

太棒了，馬特。我想喬納森也許在創新工作室。有一則軼事是，一位客戶獲得了超過 50% 的合約平台份額，幾乎透過費用和他們能為自己的業務做的事情來彌補。不過，我很好奇，你們似乎擁有 160 多個合作夥伴，而且你們還在繼續擴大規模。如何獲利？因為看起來您不僅為最終客戶提供價值，還為合作夥伴提供價值。那麼，您可以對創新工作室貨幣化進行量化，或者在未來幾年如何考慮它？

Yes. Thanks, Terry. Yes, the way I think about it is whether it's in the Accelerator program or the marketplace, strike a revenue share with each of the partners for any deal they do in the marketplace, we share in that revenue with the financial institution. And so if you think about from the partner's lens, they're accessing our channel of 450-plus financial institutions that are live on digital banking today, 23 million end users on that platform that log in 5 billion times a year.

是的。謝謝，特里。是的，我的想法是，無論是在加速器計畫還是市場中，與每個合作夥伴在市場上進行的任何交易達成收入分成，我們與金融機構分享該收入。因此，如果您從合作夥伴的角度考慮，他們正在訪問我們的 450 多家金融機構管道，這些機構目前都在數位銀行業務上運行，該平台上有 2300 萬最終用戶，每年登入 50 億次。

So they're getting access to a pretty compelling channel with one integration to go deliver their solution. And for them, the alternative of going onto one-to-one across the FI landscape in the U.S. is a pretty daunting task. And so they really do value the channel and we have partners where we represent a meaningful component of their revenue as they scale across us and other channel partners. So it's certainly a valuable economic opportunity for the partner.

因此，他們可以透過一次整合來存取一個非常有吸引力的管道來交付他們的解決方案。對他們來說，在美國的金融機構領域進行一對一的替代方案是一項相當艱鉅的任務。因此，他們確實很重視這個管道，而且我們的合作夥伴在我們和其他通路合作夥伴之間擴展時，我們代表了他們收入的重要組成部分。因此，這對合作夥伴來說無疑是一個寶貴的經濟機會。

And for the FIs, obviously, that story we told upfront in the call certainly talks to what we're starting to see in terms of the economic and strategic value to them. And then obviously, our revenue share, I mentioned already. So yes, we're excited about it. It's continuing to grow and strategic impact and an economic value for all three of those constituents.

對於金融機構來說，顯然，我們在電話會議中預先講述的故事肯定與我們開始看到的對他們的經濟和戰略價值有關。顯然，我已經提到了我們的收入份額。所以，是的，我們對此感到興奮。它對這三個組成部分的戰略影響和經濟價值正在持續增長。

And the next question comes from the line of Adam Hotchkiss.

下一個問題來自 Adam Hotchkiss。

Great. Matt, I'd be curious how you think about the breadth of the platform as it stands today. There's clearly an expansion opportunity within the existing base that you mentioned in Q2 Innovation Studio, obviously, adds to that. But now that you're generating much more meaningful cash flow, are there any obvious areas customers are asking for that you look to invest in more deeply either organically or inorganically?

偉大的。馬特，我很好奇您如何看待當今平台的廣度。您在第二季創新工作室中提到的現有基礎顯然存在擴展機會，顯然，這增加了這一點。但現在您正在產生更有意義的現金流，是否有客戶要求您希望進行更深入的有機或無機投資的明顯領域？

Adam, I mean I would say we're still early in the idea of this digital transformation, which is basically taking any human experience that any human interaction you have with the financial institution and digitizing it. And then data, AI, how are we going to approach that. All these things are things that we're diving into. But for us, user experience is critical and then you move through the commercial functionality, dynamic personalization. We have talked about it multiple times, fraud has gone through the roof. It was one -- it was a large regional bank. I won't say the name, CEO mentioned that he's accounting for $30 million of check fraud a quarter from the foreseeable future for the next couple of quarters, check brought back.

亞當，我的意思是，我們仍處於數位轉型想法的早期階段，這基本上是利用任何人類經驗，即您與金融機構的任何人類互動，並將其數位化。然後是數據、人工智慧，我們將如何解決這個問題。所有這些都是我們正在深入研究的事情。但對我們來說，使用者體驗至關重要，然後你才能實現商業功能、動態個人化。我們已經多次討論過，詐欺行為已經猖獗。它是一家大型區域銀行。我不會透露名字，執行長提到，在可預見的未來一個季度，他將在接下來的幾個季度中負責 3000 萬美元的支票欺詐，支票被帶回來。

And so that product was, I think, one of our top cross-sells in the year for fraud solutions. I'm going to have Kurt talk a little bit about what we're doing with AI. But also, the other thing to think about, and Terry talked about the [same deal] is Innovation studio.

因此，我認為該產品是我們今年詐欺解決方案的最佳交叉銷售產品之一。我將請庫爾特談談我們在人工智慧方面所做的事情。而且，另一件需要考慮的事情是創新工作室，特里談到了[同樣的交易]。

We have 160 partners that we can go and cross-sell to solve problems. So I don't have to go into this. I don't have to go invest in all of these different smaller solutions. I can partner with people and get a piece of the revenue, solve the customer's problem and provide them with the best solution. So it really has scaled. I think 100% of the deals in the quarter had innovation studio attached to them.

我們有 160 個合作夥伴，我們可以透過交叉銷售來解決問題。所以我不必深究這個問題。我不必去投資所有這些不同的小型解決方案。我可以與人們合作並獲得部分收入，解決客戶的問題並為他們提供最佳的解決方案。所以它確實已經規模化了。我認為本季 100% 的交易都附帶了創新工作室。

We saw tremendous growth in innovation studio bookings in the first quarter. So we're going to continue to invest in user experience, commercial banking, fraud data. But maybe for a second, Kirk, you can talk about AI and how we're thinking about that because it's such a big initiative for us at the company.

我們看到第一季創新工作室的預訂量出現了巨大增長。因此，我們將繼續投資於使用者體驗、商業銀行業務、詐欺資料。但柯克，也許你可以談談人工智慧以及我們如何思考它，因為這對我們公司來說是一項重大舉措。

Yes, I'll do it quickly. I mean we're really excited about the future and what that's going to bring to us and our customers. We really think about it in three big buckets. There's internal use of it, how we become more efficient for our own good, right? How do we embed it in our existing products. And then obviously, what are some of the new products that we might be developing.

是的，我會盡快做的。我的意思是，我們對未來以及它將給我們和我們的客戶帶來什麼感到非常興奮。我們確實從三個大方面來思考這個問題。它有內部用途，我們如何為了自己的利益而變得更有效率，對嗎？我們如何將其嵌入到我們現有的產品中。顯然，我們可能正在開發一些新產品。

There's an important fourth bucket, though, in that Jonathan alluded to a second ago, which is innovation studio, where we have all these fintech partners that are also going to be building AI solutions into their offerings. And already, we see that in four categories in digital customer support and fraud and marketing and targeting and also insights and financial wellness.

不過，還有一個重要的第四個桶，喬納森之前提到過，那就是創新工作室，我們擁有所有這些金融科技合作夥伴，他們也將在他們的產品中建立人工智慧解決方案。我們已經在數位客戶支援、詐欺、行銷、定位、洞察力和財務健康等四個類別中看到了這一點。

And so that's already not just in the pipeline but in the solutions that we offer through innovation studio. And if you just step back a little bit and think about in addition to the gigantic amount of digital banking data that we have and the millions of customers and users that log on every single day, over $5 billion a year. We also have in our relationship pricing the largest, what we think is the largest loan -- commercial loan book in the world, a data set in the world and the largest commercial deposit data set in the world.

因此，這不僅已經在醞釀中，而且已經在我們透過創新工作室提供的解決方案中。如果您退後一步，想想我們擁有的大量數位銀行數據以及每天登入的數百萬客戶和用戶，每年超過 50 億美元。我們在我們的關係中還擁有最大的、我們認為是最大的貸款——世界上最大的商業貸款簿、世界上的數據集和世界上最大的商業存款數據集。

And that is highly structured data already because of the way that it's used by our customers everyday. So we think that all leads to a lot of crossover in terms of some of the solutions that we already have in market and what we could do there, but also in terms of some of the products that we'll deliver in the future.

由於我們的客戶每天使用的方式，這些數據已經是高度結構化的數據。因此，我們認為，就我們市場上已有的一些解決方案以及我們可以在那裡做的事情而言，而且就我們未來將提供的一些產品而言，所有這些都導致​​了很多交叉。

Okay. Great. That's really useful. And then David, I appreciate the commentary on RPO and some of the lumpiness that can happen there quarter-to-quarter. Could you just remind us what rest of '24 looks like from a renewal cadence perspective maybe versus the same period last year? Just trying to get a better sense for how we should think about the RPO comps as we head through the year based on your visibility into renewals? I appreciate it.

好的。偉大的。這真的很有用。然後，大衛，我很欣賞對 RPO 的評論以及每個季度可能發生的一些不穩定情況。您能否提醒我們，從更新節奏的角度來看，24 世紀 24 年代剩餘的時間與去年同期相比會是什麼樣子？只是想根據您對續訂的了解，更了解我們在這一年中應該如何考慮 RPO 比較？我很感激。

Yes, sure, Adam. This year is not going to be different than most years past where we're going to see most of our renewals come into scope in Q4. So that's going to give us the biggest opportunity for renewals. We did see good renewal strength in Q1 and as we sort of look through the year, the one quarter that is relatively pressured from a renewal standpoint is Q3. So we have good renewals in scope for the remainder of the year with Q3 being the most pressured, Q4 being the quarter with the most opportunity.

是的，當然，亞當。今年與過去的大多數年份沒有什麼不同，我們將看到我們的大部分續訂都在第四季度進入範圍。因此，這將為我們提供最大的續約機會。我們確實在第一季看到了良好的續訂力度，並且從全年來看，從續訂的角度來看，相對壓力較大的季度是第三季。因此，我們在今年剩餘時間內有良好的續約範圍，第三季是壓力最大的季度，第四季是機會最多的季度。

Your next question comes from the line of Matt VanVliet.

您的下一個問題來自 Matt VanVliet。

Sure. But on the 90 banks that are using either commercial or retail but not the other. Do you have much of a sense or what the mix is that are using something, somewhat modern that's not just kind of the off-the-shelf from the core that might be a little bit more of a difficult competitive displacement or thought otherwise, maybe what's the opportunity of something that's not modern and should be an easier win?

當然。但 90 家銀行要麼使用商業銀行，要麼使用零售銀行，而不使用另一個銀行。你是否有很多感覺或混合是什麼正在使用某種東西，有點現代，不僅僅是一種現成的核心，可能是一個更困難的競爭替代或以其他方式思考，也許不現代且應該更容易獲勝的東西有什麼機會？

I don't have that off the top of my head. I will tell you that what they certainly don't have is a single platform that I talked about earlier, which is they're running a separate system that requires separate upgrades, separate back-office administration, separate set of interfaces, separate user experience.

我腦子裡並沒有這個想法。我會告訴你，他們肯定沒有我之前談到的單一平台，也就是他們運行一個單獨的系統，需要單獨的升級、單獨的後台管理、單獨的介面集、單獨的使用者體驗。

And so when they move to us, they unify that experience both for the customer, they unify it for the bank employee and they unify it for the provider, which is us, in this case, and we can upgrade the software faster, give them -- and the data is all unified as well, which is what Kirk was talking about the importance of having that clean data. So the quality of the system, obviously, with our win rates and the deals we're doing, I would argue we have the premier solution in the marketplace.

因此，當他們轉向我們時，他們統一了客戶的體驗，他們統一了銀行員工的體驗，他們統一了提供者的體驗，在這種情況下就是我們，我們可以更快地升級軟體，為他們提供——而且數據也是統一的，這就是柯克所說的擁有乾淨數據的重要性。因此，顯然，系統的質量，以及我們的獲勝率和我們正在進行的交易，我認為我們擁有市場上最好的解決方案。

So whatever we're competing against is not going to have that. It's more about the inertia to get them to be able to go through the conversion process and can we prioritize that. And as we've talked about with the focus right now, it's about acquiring, retaining and growing deposits and driving efficiencies to the business. Our system is clearly coming up as a priority for these financial institutions to convert to, and that's why you're seeing the demand environment that we've seen over the last couple of quarters and in the first quarter.

因此，無論我們的競爭對手是什麼，都不會出現這種情況。更多的是讓他們能夠完成轉換過程的慣性，我們是否可以優先考慮這一點。正如我們現在所討論的重點，它是關於獲取、保留和增加存款以及提高業務效率。我們的系統顯然是這些金融機構轉換的優先事項，這就是為什麼您會看到我們在過去幾季和第一季看到的需求環境。

All right. Very helpful. And then, David, when you look at kind of what the growth outlook is in the pipeline over the next couple of years?

好的。很有幫助。然後，大衛，當您考慮未來幾年的成長前景時？

It seems pretty robust, and you're talking about a pretty big backlog of ARR, not yet live. Where do you stand at in terms of head count investments, whether it's around the implementation teams or the go-to-market team how -- where are we at in terms of the team that's on the field now ready to capture all the opportunity versus needing to add head count and then sort of wrapped in that, any change in philosophy around using outside partners for some of the blocking and tackling type situations on the implementations?

它看起來相當強大，而且您正在談論 ARR 的大量積壓，但尚未上線。在人員投資方面，您處於什麼位置，無論是圍繞實施團隊還是進入市場團隊，我們在現場準備抓住所有機會的團隊方面處於什麼位置？實施中的一些阻塞和解決類型情況的概念是否有任何變化？

Matt, yes, first and foremost, I think we still feel strongly about our ability to scale our cost relative to driver revenue growth. So we'll stop on that. Having said that, on implementation, that's certainly one that we are going to continue to invest in head count there, while investing in efficiencies. We're doing things more efficiently with our customers.

馬特，是的，首先也是最重要的是，我認為我們仍然對我們調整成本相對於驅動收入成長的能力有強烈的感覺。所以我們就到此為止。話雖如此，在實施方面，我們肯定會繼續投資於人員數量，同時投資於效率。我們正在更有效地與客戶合作。

We're utilizing our global resources more effectively to lower the overall cost of an average implementation, but we still have to add resources given all the momentum we've seen on the booking side of things. Sales and marketing, we've gotten a lot more efficient there as well. And I talked in the prepared remarks about our ability from a tax standpoint to continue to get much more efficient, and we think we have more opportunities for efficiency and that doesn't mean we don't have to add some resources as we continue to grow the number of accounts that we're supporting.

我們正在更有效地利用我們的全球資源來降低平均實施的整體成本，但鑑於我們在預訂方面看到的所有勢頭，我們仍然需要增加資源。銷售和行銷方面，我們的效率也提高了很多。我在準備好的發言中談到了我們從稅收角度繼續提高效率的能力，我們認為我們有更多提高效率的機會，這並不意味著我們不必在繼續提高效率的過程中增加一些資源。支援的帳戶數量。

Matt talked a lot about the expansion opportunity in the call earlier. We need to have resources that are able to reach out and work with those customers to identify those opportunities and ultimately book them. on utilizing partners more effectively, we're constantly looking at ways to get more efficient. Partner utilization could be one of those. It's not something that we're committed to as of yet, but that's certainly one of the efficiency drivers that we're exploring going forward to improve the cost structure relative to the revenue that we're driving from a delivery standpoint.

馬特在早些時候的電話會議中談到了許多擴張機會。我們需要擁有能夠聯繫這些客戶並與他們合作的資源，以識別這些機會並最終預訂它們。為了更有效地利用合作夥伴，我們不斷尋找提高效率的方法。合作夥伴的利用可能就是其中之一。到目前為止，這還不是我們承諾的事情，但這無疑是我們未來正在探索的效率驅動因素之一，以改善相對於我們從交付角度推動的收入的成本結構。

Your next question comes from the line of Andrew Schmidt.

你的下一個問題來自安德魯·施密特。

Good results here. Apologies, I jumped on a little bit late. Sorry if this has been asked. But could you just talk a little bit more about what's driving the Tier 2 resurgence, really good to see obviously, there's probably platform development, environmental things going on. But if you could talk about what's going on with the -- at that size of FI, that would be helpful.

這裡有好的結果。抱歉，我跳得有點晚了。抱歉，如果有人問這個問題。但您能多談談推動二級市場復甦的因素嗎？但如果你能談談金融機構規模如此龐大的情況，那將會很有幫助。

Yes, Andrew, I think to some extent, we had solid Tier 2, Tier 3 performance last year. It was maybe a little overshadowed by some of the larger Tier 1s we got. We had a solid quarter-over-quarter with the Tier 2s and Tier 3 last year. But the performance, I would say is a lot of these financial institutions is just the time where they are on the pipe and coming up, but we've been building the momentum we have with them has been building and so they have the same challenges that the larger banks do.

是的，安德魯，我認為在某種程度上，去年我們在二級、三級表現出色。它可能有點被我們得到的一些較大的一級產品所掩蓋。去年，我們在 2 級和 3 級的季度環比表現強勁。但我想說的是，很多金融機構的表現只是他們即將崛起的時候，但我們一直在與他們一起建立我們一直在建立的勢頭，所以他們面臨著同樣的挑戰大銀行就是這樣做的。

It's just a matter of our solution for them, it's a little bit bigger of a decision, as I was talking about earlier, the larger ones to do retail or commercial or small business these guys usually take into our platform. So the conversion for them is converting retail customers, small business customers and commercial customers. So it's a little bit -- it takes a little more time for them to get organized, make that decision. But we signed more Tier 2s and Tier 3s this quarter than we signed in any quarter and last year. And the -- what they're beginning to realize is not only do they have the advantage of being local, their rates are going to be just as competitive as the big four, but they're able to walk out there and use our technology as a way to compete with Bank of America, Wells, [Jason], Citi and their products, and we're hearing stories about wins, taking large accounts from them, whether it's municipalities, health care systems, larger companies, and they're going out and picking up this business because they have those advantages being local, being there to solve the problem for them and also being competitive on rates.

這只是我們為他們提供解決方案的問題，這是一個更大的決定，正如我之前談到的，這些人通常會將更大的零售、商業或小型企業納入我們的平台。因此，他們的轉換是轉換零售客戶、小型企業客戶和商業客戶。所以這有點——他們需要更多的時間來組織起來，做出決定。但本季我們簽署的二級和三級協議比任何季度和去年簽署的協議都要多。他們開始意識到，他們不僅擁有本地優勢，他們的價格將與四大一樣具有競爭力，而且他們能夠走出去並使用我們的技術作為與美國銀行、富國銀行、[傑森]、花旗銀行及其產品競爭的一種方式，我們正在聽到有關勝利的故事，從他們那裡獲得大量帳戶，無論是市政當局、醫療保健系統、大公司還是他們。優勢，可以為他們解決問題，並且在價格上也具有競爭力。

So I think it's just a matter of they have to become more efficient and technology is going to be how they're going to compete and they go look at the systems, and we're the only single platform out there. We have more customers running on our commercial solutions, which work on mobile phones and tablets and desktops. And that's what you have to do to win the business. And so -- that's what's driving the demand environment. It's about acquiring, retaining and growing deposits. And we've shifted from a lending environment to get the deposits, and we've been in this business for 20 years in August, and we have a great reputation in taking care of our customers and building great products and being there for them. And so that's ultimately what is driving the demand.

所以我認為這只是他們必須變得更有效率的問題，科技將成為他們競爭的方式，他們會關注系統，而我們是唯一的單一平台。我們有更多的客戶運行我們的商業解決方案，這些解決方案適用於手機、平板電腦和桌上型電腦。這就是您贏得業務所必須要做的。所以——這就是推動需求環境的因素。它涉及獲取、保留和增加存款。我們已經從貸款環境轉變為獲取存款，八月我們從事這項業務已經 20 年了，我們在照顧客戶、打造優質產品並為他們提供服務方面享有盛譽。所以這最終是推動需求的因素。

Got it. Well said. I think the commercial platform is certainly a differentiator. If you could just touch on the pipeline for a second. I think a quarter ago, it seems like the pipeline was a little bit more balanced from a size perspective versus last year, to some extent, I think we see that coming through here. But maybe you could talk about the composition. Is that still the case? And if it is the case from an evenly balanced perspective that imply more visibility in terms of timing of deal close and bookings and things like that versus maybe the larger wins that can be longer and have more uncertainty?

知道了。說得好。我認為商業平台無疑是差異化因素。如果您能稍微接觸一下管道就好了。我認為一個季度前，從規模角度來看，管道似乎比去年更加平衡，在某種程度上，我認為我們在這裡看到了這一點。但也許你可以談談構圖。現在還是這樣嗎？如果從均衡的角度來看，這意味著在交易完成時間和預訂等方面有更多的可見性，而不是更大的勝利，可能會更長並且具有更多的不確定性？

Yes. I would say it was probably out of balance last year with the size of the deals we did in the back half of the year, Andrew. I mean it was steady Eddie in that Tier 2, 3. And in this quarter, like I don't want to go off over, we signed 4 Tier 1s in the quarter. So it was still a great quarter, but the Tier 2, Tier 3 make up. And you got to remember, a $4 billion bank comp is not that different than an $8 billion bank from an economic perspective.

是的。我想說，去年的情況可能與我們下半年所做的交易規模不平衡，安德魯。我的意思是，艾迪在第 2、第 3 梯隊中表現穩定。所以這仍然是一個很棒的季度，但二級、三級彌補了。你必須記住，從經濟角度來看，40 億美元的銀行與 80 億美元的銀行並沒有什麼不同。

So yes, I mean, I think David can comment on whether we're going to see some of these go live faster. But like I said earlier, a bank that do on a retail small business and corporate conversion that's a $4 billion, $4.5 billion bank could end up being a 9- or 12-month go-live. But I think that you'll see with the expansion, some of the stuff coming to revenue. We're seeing things come to revenue a little quicker. Been happy with the results so far. I don't want to get ahead of us in a guide.

所以，是的，我的意思是，我認為大衛可以評論我們是否會看到其中一些更快地上線。但正如我之前所說，一家致力於零售小型企業和企業轉型的銀行（價值 40 億美元、45 億美元）最終可能會上線 9 或 12 個月。但我認為，隨著擴張，你會看到一些東西會帶來收入。我們看到收入的成長速度要快一些。到目前為止對結果很滿意。我不想在指南中領先我們。

David looks to me funny when I do that. But I think we have a lot of opportunity to -- in the pipe as well as in that Tier 2 space. and Tier 3 to win deals and get them wide a little faster than the largest deal in the history of the company that we signed last quarter, the big four bank for precision lender that we signed last year. So it should come to revenue faster. But Dave, do you want to comment on that at all?

當我這樣做時，大衛看起來很有趣。但我認為我們有很多機會——在管道以及二級空間。和第三級，以比我們上季度簽署的公司歷史上最大的交易（去年我們簽署的四大精準貸款銀行）更快的速度贏得交易並擴大範圍。所以它應該更快實現收入。但是戴夫，你想對此發表評論嗎？

Yes. Look, there's maybe 1 or 2 months for some of these deals that we'll see at the end of this year in terms of revenue recognition. But for the most part, the majority of this revenue is going to start coming through starting next year.

是的。看，其中一些交易可能需要 1 到 2 個月的時間才能在今年年底實現收入確認。但在很大程度上，大部分收入將從明年開始實現。

And as I said, and I don't know if you were on yet, Andrew, I know you said you joined a little bit late, but we did talk a little bit earlier about sort of the shape of the bookings and how we see some of that manifest to revenue, particularly on the cross side. So some of the cross bookings or expansion bookings that we have, we'll see some revenue later in the year for those. And again, we were expecting some of that coming into the year.

正如我所說，我不知道你是否在場，安德魯，我知道你說你加入得有點晚，但我們確實早些時候討論過預訂的情況以及我們如何看待其中一些體現在收入上，特別是在交叉方面。因此，我們擁有的一些交叉預訂或擴展預訂，我們將在今年稍後看到一些收入。再說一遍，我們預計今年會出現一些情況。

And then we have some immediate time to revenue like license expansion, where we saw a lot of strength during the course of the quarter. Matt mentioned the growth in Centrix specifically, but that's one of those areas where we get a fairly immediate revenue recognition on that. So feel good about the mix of expansion as well as net new and most of that net new you're going to see coming online '25.

然後我們有一些立即實現收入的時間，例如許可證擴展，我們在本季度看到了很大的實力。 Matt 特別提到了 Centrix 的成長，但這是我們立即獲得收入確認的領域之一。因此，請對擴充包和全新內容的組合感到滿意，大部分全新內容將在 25 年上線。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。