Quad/Graphics Inc (QUAD) 2025 Q1 法說會逐字稿

Good morning, and welcome to Quad's first-quarter 2025 conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Katie Krebsbach, Quad's Investor Relations Manager.

早上好，歡迎參加 Quad 2025 年第一季電話會議。（操作員指示）請注意，此事件正在被記錄。現在，我想將會議交給 Quad 的投資者關係經理 Katie Krebsbach。

Thank you, operator, and good morning, everyone. With me today are Joel Quadracci, Quad's Chairman, President and Chief Executive Officer; and Tony Staniak, Quad's Chief Financial Officer. Joel will lead today's call with a business update, and Tony will follow with a summary of Quad's first quarter financial results, followed by Q&A.

謝謝接線員，大家早安。今天與我一起的還有 Quad 董事長、總裁兼執行長 Joel Quadracci；以及 Quad 財務長 Tony Staniak。喬爾 (Joel) 將主持今天的電話會議，介紹業務最新情況，托尼 (Tony) 將隨後總結 Quad 第一季的財務業績，然後進行問答。

I would like to remind everyone that this call is being webcast, and forward-looking statements are subject to Safe Harbor provisions as outlined in our quarterly news release and in today's slide presentation on slide 2.

我想提醒大家，本次電話會議正在網路直播，前瞻性陳述受安全港條款的約束，如我們的季度新聞稿和今天的幻燈片 2 所述。

Quad's financial results are prepared in accordance with generally accepted accounting principles. However, this presentation also contains non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, free cash flow, net debt and debt leverage ratio. We have included in the slide presentation reconciliations of these non-GAAP financial measures to GAAP financial measures.

Quad 的財務結果是按照公認會計原則編製的。然而，本報告也包含非 GAAP 財務指標，包括調整後的 EBITDA、調整後的 EBITDA 利潤率、調整後的每股稀釋收益、自由現金流、淨債務和債務槓桿率。我們在幻燈片簡報中納入了這些非 GAAP 財務指標與 GAAP 財務指標的對帳。

Finally, a replay of the call will be available on the Investors section of quad.com shortly after our call concludes today.

最後，今天電話會議結束後不久，您可以在 quad.com 的「投資者」部分觀看本次電話會議的重播。

I will now hand over the call to Joel.

我現在將通話交給喬爾。

Thank you, Katie, and good morning, everyone. Our first-quarter results were in line with our expectations, and we remain on track to achieve our 2025 guidance. We continue to build momentum as a marketing experience or MX company with a distinctive suite of solutions that seamlessly integrates creative production and media across digital and physical channels, as shown on slide 3.

謝謝你，凱蒂，大家早安。我們第一季的業績符合預期，我們仍有望實現 2025 年的預期。我們作為一家行銷體驗或 MX 公司，繼續透過一套獨特的解決方案建立發展勢頭，該解決方案無縫整合了數位和實體管道中的創意製作和媒體，如幻燈片 3 所示。

We are committed to growing our offerings, including strategic investments in innovative solutions and superior talent while managing for economic uncertainties. We continue to closely monitor the potential impacts of tariffs and recessionary pressures on our clients' businesses.

我們致力於擴大我們的產品範圍，包括在應對經濟不確定性的同時對創新解決方案和優秀人才進行策略性投資。我們將繼續密切關注關稅和經濟衰退壓力對客戶業務的潛在影響。

Quad imports paper from Canada as well as books we manufacture in our own facilities in Mexico for our US clients. Currently, these products are both compliant under the USMCA and therefore, are exempt from tariffs. Our procurement teams are in various stages of evaluating or reallocating sourcing options for the remaining items in our supply chain that are affected by tariffs, which represented less than 11% of our 2024 procurement spend, including 1% of spend with China.

Quad 從加拿大進口紙張，並在墨西哥自己的工廠為美國客戶生產書籍。目前，這些產品均符合USMCA的規定，因此免關稅。我們的採購團隊正處於評估或重新分配供應鏈中受關稅影響的其餘商品的採購選項的不同階段，這些商品占我們 2024 年採購支出的不到 11%，其中包括與中國採購支出的 1%。

While Quad supply chain currently has limited direct exposure to tariffs, we recognize our clients may be impacted to varying degrees. We are staying informed of our client supply chains for potential disruptions as well as fluctuations in consumer demand to see how they may affect clients' mission-critical marketing plans. In addition to tariffs, postage continues to impact many of our clients as it represents the single largest marketing cost for mailers.

雖然 Quad 供應鏈目前受到關稅的直接影響有限，但我們意識到我們的客戶可能會受到不同程度的影響。我們隨時專注於客戶供應鏈中可能出現的中斷以及消費者需求的波動，以了解它們如何影響客戶的關鍵行銷計劃。除了關稅之外，郵資繼續影響著我們的許多客戶，因為它是郵寄者最大的單項行銷成本。

Earlier this month, the US Postal Service announced details behind its next major postal rate increase expected to take effect on July 13. We estimate many of our mailing clients will experience an average of 10% increase in postage costs. Data shows that massive rate increase drive away the very volume needed to support a healthy postal service.

本月早些時候，美國郵政局公佈了下一次重大郵政費率上調的細節，預計將於 7​​ 月 13 日生效。我們估計，許多郵寄客戶的郵資成本將平均上漲 10%。數據顯示，大幅增加的費率會導致維持健康郵政服務所需的郵件量減少。

However, the USPS has agreed to test volume elasticity specifically with catalogers through a special nine-month promotion beginning October 1. This promotion will provide catalogers with a 10% discount. With additional USPS add-on promotion, catalogers could realize up to 12% off published rates during the promotional period.

不過，美國郵政局已同意透過 10 月 1 日開始的為期九個月的特別促銷活動，專門與編目員一起測試數量彈性。此次促銷活動將為編目員提供 10% 的折扣。透過額外的 USPS 附加促銷，編目員可以在促銷期間享受高達 12% 的公佈價格折扣。

Turning to slide 4. Quad continues to deploy a strategic two-pronged approach to help our clients mitigate the impacts of ongoing postal rate increases. Our innovative approach focuses on maximizing savings while increasing response rate. In 2024, we launched Household Fusion, a first-of-its-kind postal optimization program that bundles multiple magazines from various publishers or catalogs from different brands destined for the same household into a single package. We continue to see strong interest and growing participation among magazine publishers and marketing mailers in this cost-reducing solution.

翻到幻燈片 4。Quad 持續採取雙管齊下的策略方法，幫助我們的客戶減輕郵資持續上漲的影響。我們的創新方法著重在提高回應率的同時最大限度地節省成本。2024 年，我們推出了 Household Fusion，這是一項首創的郵政優化計劃，它將來自不同出版商的多本雜誌或來自不同品牌的目錄捆綁成一個包裹，寄給同一家庭。我們持續看到雜誌出版商和行銷郵件發送者對此降低成本的解決方案表現出濃厚興趣，並且參與度不斷提高。

In addition, Quad recently acquired the co-mail assets of Enru, a third-party co-mail and logistics solutions provider. The acquisition benefits mailers by expanding our co-mail postal optimization solutions and increasing our co-mail volumes, which drives additional postage savings opportunities through economies of scale for us and for the whole industry.

此外，Quad 最近收購了第三方聯合郵件和物流解決方案提供商 Enru 的聯合郵件資產。此次收購將擴大我們的聯合郵件郵政優化解決方案並增加我們的聯合郵件量，從而使郵寄者受益，並透過規模經濟為我們和整個行業帶來額外的郵資節省機會。

Moving to slide 5. Beyond mailing efficiencies, we continue to invest in solutions that drive marketing effectiveness, which is another way to offset costs by increasing response. To do this, we have built a superior household-based data stack, representing 92% of all US households, to help all marketers, including mailers, create smarter audience segments that ultimately yield a higher return on investment.

移至投影片 5。除了提高郵寄效率之外，我們還繼續投資於提高行銷效率的解決方案，這是透過提高回應來抵消成本的另一種方法。為了實現這一目標，我們建立了一個卓越的基於家庭的數據堆棧，涵蓋了 92% 的美國家庭，旨在幫助所有行銷人員（包括郵件發送者）創建更聰明的受眾群體，最終獲得更高的投資回報。

We also have made investments to ensure that our data stack is future-focused and AI-ready, including a partnership with Google Cloud to leverage its AI optimization capabilities and large language models, among with others. We are creating new AI-driven solutions that tap into our data stack and seamlessly connect it with clients' creative and media assets to further enable personalization at scale.

我們還進行了投資以確保我們的資料堆疊面向未來並為人工智慧做好準備，包括與 Google Cloud 合作以利用其人工智慧優化功能和大型語言模型等。我們正在創建新的人工智慧驅動的解決方案，利用我們的數據堆疊並將其與客戶的創意和媒體資產無縫連接，以進一步實現大規模個性化。

Quad's expanded focus on generative AI is built upon decades of leveraging AI-driven robotic process automation and cognitive insights for improving everything from administrative processes to scaled content creation, smart planning and more. Our powerful data capability helps our clients connect the right message with the right audience at the right time, whether in the home, in-store or online.

Quad 對生成式人工智慧的關注度不斷擴大，這建立在數十年來利用人工智慧驅動的機器人流程自動化和認知洞察來改善從管理流程到規模化內容創建、智慧規劃等一切事物的基礎之上。我們強大的數據能力可幫助我們的客戶在正確的時間向正確的受眾傳達正確的訊息，無論是在家中、店內或線上。

For example, our innovative at-home connect solution drives consumer engagement by modernizing the direct mail channel with an intelligent automated platform that connects online engagement with offline impact. Our solution makes it easy for marketers to trigger personalized direct mail based on online consumer interactions or life events, all with the scale, automation and efficiency of digital marketing. Advancing to Slide 6, talent continues to be a strategic differentiator for Quad.

例如，我們創新的家庭連接解決方案透過智慧自動化平台實現直郵管道的現代化，將線上參與與線下影響連接起來，從而推動消費者參與。我們的解決方案使行銷人員能夠輕鬆地根據線上消費者互動或生活事件觸發個人化直郵，所有這些都具有數位行銷的規模、自動化和效率。進入投影片 6，人才繼續成為 Quad 的策略差異化因素。

We recently announced that Tim Maleeny, Chief Client Strategy and Integration Officer, will expand his role to include President of Agency Solutions. Tim is a well-known and respected leader in the advertising and marketing services industry. He succeeds Eric Ashworth, who is moving on to another career opportunity after playing an instrumental role in Quad's transformation over the past 10 years. We thank Eric for his many contributions to Quad.

我們最近宣布，首席客戶策略和整合長 Tim Maleeny 將擴大其職責，並兼任代理解決方案總裁。蒂姆是廣告和行銷服務行業知名且受人尊敬的領導者。他接替了艾希沃斯 (Eric Ashworth)，在過去 10 年中為 Quad 的轉型發揮了重要作用，現在正在轉向另一個職業發展機會。我們感謝 Eric 為 Quad 所做的諸多貢獻。

Tim is well suited to lead the next evolution of our agency solutions offering. Before joining Quad last November, Tim served as Chief Strategy and Innovation Officer for Havas North America. He also has held brand strategy and executive leadership roles at Ogilvy, RGA and Deloitte. Tim's ability to think across agency disciplines and simplify the complexities of marketing in digital and physical media channels will further strengthen and grow our integrated data, media, creative and marketing services business.

蒂姆非常適合領導我們代理解決方案的下一次變革。在去年 11 月加入 Quad 之前，Tim 曾擔任 Havas North America 的首席策略和創新長。他還曾在奧美、RGA 和德勤擔任品牌策略和執行領導職務。蒂姆能夠跨機構學科思考，並簡化數位和實體媒體管道行銷的複雜性，這將進一步加強和發展我們的綜合數據、媒體、創意和行銷服務業務。

Moving on to Slide 7. We provide an update on In-store Connect by Quad, our omnichannel retail media network, which generates direct consumer connections for retailers and brands in brick-and-mortar stores, where approximately 80% of all retail sales still occur.

轉到投影片 7。我們提供了有關 Quad 的 In-store Connect 的最新信息，這是我們的全通路零售媒體網絡，它為實體店中的零售商和品牌建立直接的消費者聯繫，大約 80% 的零售額仍然發生在實體店中。

Over the past year, Quad is focused on building out a nationwide network for mid-market grocery clients. Expanding on the strong base of regional grocers we already have in place, we added two new retailers in the West and Midwest during the quarter. Further, the Save Mart Company, the largest private regional grocer on the West Coast, which launched in-store Connect in 15 stores last year, intends to expand to an additional stores this spring.

在過去的一年裡，Quad 致力於為中端市場雜貨客戶打造全國性的網路。在擴大我們現有的強大區域雜貨商基礎的基礎上，我們在本季度在西部和中西部增加了兩家新的零售商。此外，西海岸最大的私人區域雜貨店 Save Mart Company 去年在 15 家門市推出了店內 Connect，並計劃今年春季將服務擴展到更多門市。

Beyond grocers, we are also helping other retailers create their own internal store -- in-store retail media ecosystems as shown on slide 8. For instance, one of the nation's largest home improvement retailers installed more than 550 of our digital screens in approximately 100 of its stores. With our support, the client is elevating the shopper experience by deploying targeted engaging content directly in aisle, the most critical moment in the purchasing experience. This client exemplifies how our extensive marketing expertise positions us as a highly effective strategic adviser. For more than 20 years, Quad has manufactured print ad circulators for this home improvement retailer.

除了雜貨店，我們還幫助其他零售商創建自己的內部商店——店內零售媒體生態系統，如幻燈片 8 所示。例如，美國最大的家居裝飾零售商之一在其大約 100 家門市安裝了 550 多個我們的數位螢幕。在我們的支持下，客戶透過在購物體驗中最關鍵的時刻——貨架區直接部署有針對性的引人入勝的內容來提升購物者的體驗。這位客戶體現了我們豐富的行銷專業知識如何使我們成為高效的策略顧問。20 多年來，Quad 一直為這家家居裝飾零售商生產印刷廣告機。

Over time, we have steadily expanded our scope of work. For instance, a dedicated near-site team of 18 Quad employees provides strategic marketing support directly alongside the client's own marketing group. This includes pre-media production for various physical and digital assets.

隨著時間的推移，我們穩步擴大了工作範圍。例如，由 18 名 Quad 員工組成的專門近場團隊與客戶自己的行銷團隊一起直接提供策略行銷支援。這包括各種實體和數位資產的預媒體製作。

We also leverage our advanced variable imaging technology to personalize our clients' in-store promotional signage at the store level, a differentiated Quad service offering. Our work for this retailer is a clear example of the stickiness Quad creates through its relationships. It also demonstrates the way our integrated solutions function as a value multiplier when used together.

我們也利用先進的可變成像技術在商店層級對客戶的店內促銷標誌進行個人化設計，這是一項差異化的 Quad 服務產品。我們為這家零售商所做的工作是 Quad 透過其關係所創造的黏性的一個明顯例子。它還展示了我們的整合解決方案一起使用時如何發揮價值倍增器的作用。

Transitioning to slide 9, we share how our integrated agency approach is driving better business outcomes for Valvoline Instant Oil Change. The company has been a long-standing Quad Direct mail client, and our trusted relationship has led to additional work that now includes creative and media services with Quad's Betty and Rise agencies.

轉到投影片 9，我們分享了我們的綜合代理方法如何為 Valvoline Instant Oil Change 帶來更好的業務成果。該公司一直是 Quad Direct mail 的長期客戶，我們之間的信任關係為我們帶來了更多工作，現在包括與 Quad 的 Betty 和 Rise 代理商合作的創意和媒體服務。

Earlier this year, Valvoline Instant Oil Change hired Betty as one of its creative agency partners. Already, our creative group has generated external signage for the client's new stores and is actively supporting multiple business units with content across social, digital, e-mail and point-to-purchase media channels.

今年早些時候，Valvoline Instant Oil Change 聘請 Betty 為其創意代理商合作夥伴之一。我們的創意團隊已經為客戶的新店製作了外部標牌，並積極透過社交、數位、電子郵件和購買點媒體管道為多個業務部門提供內容支援。

Betty's fresh approach to creative is also helping our client breakthrough in market clutter to stand apart from its competitors, a business imperative as we near summer in the peak driving season. Amanda Ouellette, our client's Senior Brand Marketing Manager, shared her enthusiasm, stating, we've kicked off a lot of work and the Betty team has come through every assignment with enthusiasm, thoughtfulness and clear communication on project plans.

貝蒂新穎的創意方法也幫助我們的客戶在市場混亂中取得突破，從而從競爭對手中脫穎而出，這對於我們即將進入夏季駕駛旺季的業務至關重要。我們客戶的高級品牌行銷經理 Amanda Ouellette 分享了她的熱情，她表示，我們已經開始了很多工作，Betty 團隊以熱情、周到和清晰的專案計劃溝通完成了每項任務。

It's refreshing to have new perspective and creative work for our company while also meeting us where they are as a brand and elevating it. Meanwhile, Rise Media agency has begun managing Valvoline's paid search. Using insights from an audit of the client's past paid search strategy, Rise is further optimizing the channel to drive consumer engagement. Our integrated service team's collaborative approach continues to elevate both the efficiency and effectiveness of this client's marketing efforts.

為我們的公司提供新的視角和創造性的工作，同時滿足我們作為品牌的現狀並提升它，這令人耳目一新。同時，Rise Media 代理商已開始管理 Valvoline 的付費搜尋。利用對客戶過去的付費搜尋策略的審計洞察，Rise 正在進一步優化管道以推動消費者參與。我們的綜合服務團隊的協作方式不斷提升該客戶行銷工作的效率和效果。

For instance, our Betty agency will produce new creative assets for search banners that our Rise agency will deploy in early May. We look forward to creating additional cross-channel synergies as our integrated work with our client grows. Before I turn the call over to Tony, I would like to acknowledge that we completed the sale of our European operations in the quarter. I thank our former employees for their many years of dedicated service.

例如，我們的 Betty 代理商將為搜尋橫幅製作新的創意資產，我們的 Rise 代理商將於 5 月初部署這些資產。隨著我們與客戶的綜合工作不斷發展，我們期待創造更多的跨通路協同效應。在我將電話轉給托尼之前，我想確認我們在本季度完成了歐洲業務的出售。我感謝我們前員工多年的忠誠服務。

You are knowledgeable, experienced and appreciated, and I look forward to seeing where you grow from here. I would also like to recognize all our current employees and thank them for their continued hard work and commitment to relentlessly innovating for our clients. Through your efforts, we are simplifying the complexities of marketing and driving better business outcomes for our clients.

您知識淵博、經驗豐富、備受讚賞，我期待看到您在這裡的成長。我還要表彰我們所有的現有員工，感謝他們持續的努力和為客戶不斷創新的承諾。透過您的努力，我們正在簡化行銷的複雜性並為我們的客戶帶來更好的業務成果。

With that, I will now turn the call over to Tony for the financial review.

說完這些，我現在將電話轉給托尼進行財務審查。

Thanks, Joel, and good morning, everyone.

謝謝，喬爾，大家早安。

On slide 10, we show our diverse revenue mix. During the first quarter of 2025, net sales were $629 million, a decrease of 2% compared to the first quarter of 2024, when excluding the February 28, 2025, divestiture of our European operations. The decline in organic net sales was primarily due to lower paper, logistics and agency solutions sales, including the loss of a large grocery client, which annualized at the beginning of March 2025.

在投影片 10 上，我們展示了多樣化的收入組合。2025 年第一季度，淨銷售額為 6.29 億美元，與 2024 年第一季相比下降 2%（不包括 2025 年 2 月 28 日剝離的歐洲業務）。有機淨銷售額的下降主要是由於紙張、物流和代理解決方案銷售額的下降，包括失去一家大型雜貨客戶，該損失在 2025 年 3 月初按年計算。

Comparing our net sales breakdown between first quarter 2024 and 2025, our revenue as a percentage of total sales increased 3% in Latin America with growth in Mexico, a strategic extension of our US print platform and 2% in our targeted print offerings driven by catalogs and direct marketing. These increases were primarily offset by an expected revenue mix decrease of 4% in our large-scale print offerings due to organic declines in retail inserts and magazines.

比較 2024 年第一季和 2025 年第一季的淨銷售額細分，我們在拉丁美洲的收入佔總銷售額的百分比增長了 3%，其中墨西哥的增長（這是我們美國印刷平台的戰略延伸）以及由目錄和直接營銷推動的目標印刷產品的增長 2%。這些成長主要被我們大規模印刷產品預期收入組合下降 4% 所抵消，原因是零售插頁和雜誌的自然下降。

Slide 11 provides a snapshot of our first quarter 2025 financial results. Adjusted EBITDA was $46 million in the first quarter of 2025 as compared to $51 million in the first quarter of 2024, and adjusted EBITDA margin declined from 7.7% to 7.2%. The decrease in adjusted EBITDA was primarily due to the impact of lower sales, increased investments in innovative offerings to drive future revenue growth and the divestiture of our European operations, partially offset by benefits from improved manufacturing productivity and savings from cost reduction initiatives.

幻燈片 11 提供了我們 2025 年第一季財務表現的快照。2025 年第一季調整後 EBITDA 為 4,600 萬美元，而 2024 年第一季為 5,100 萬美元，調整後 EBITDA 利潤率從 7.7% 下降至 7.2%。調整後 EBITDA 的下降主要由於銷售額下降、為推動未來收入成長而增加的創新產品投資以及歐洲業務的剝離，但製造生產力提高和成本削減舉措帶來的節省部分抵消了這一影響。

Adjusted diluted earnings per share doubled in the first quarter of 2025 to $0.20 per share as compared to $0.10 per share in the first quarter of 2024, primarily due to higher net earnings, including lower depreciation and amortization as well as lower interest expense due to reduced debt. Free cash flow was negative $100 million in the first quarter of 2025 compared to negative $70 million in the first quarter of 2024.

2025 年第一季調整後稀釋每股收益翻了一番，達到每股 0.20 美元，而 2024 年第一季為每股 0.10 美元，這主要歸因於淨收益增加，包括折舊和攤銷減少以及由於債務減少導致的利息支出減少。2025 年第一季的自由現金流為負 1 億美元，而 2024 年第一季的自由現金流為負 7,000 萬美元。

The decline in free cash flow was primarily due to the timing of working capital, including proactive inventory purchases of paper and other materials made in advance of potential tariffs, partially offset by a $7 million decrease in capital expenditures. We show the seasonality of our free cash flow and debt leverage on Slide 12. Due to the seasonality of our business, we typically generate negative free cash flow in the first 9 months of the year, followed by large positive free cash flow in the fourth quarter.

自由現金流的下降主要是由於營運資本的時間安排，包括在潛在關稅之前主動購買紙張和其他材料的庫存，但資本支出減少 700 萬美元，部分抵消了這一影響。我們在投影片 12 上展示了自由現金流和債務槓桿的季節性。由於我們業務的季節性，我們通常在一年的前 9 個月產生負自由現金流，然後在第四季度產生大量的正自由現金流。

Our seasonal production peak occurs in the late third quarter and early fourth quarter of each year due to the timing of holiday-related advertising and promotions. This leads to inventory build prior to that time and then results in higher collections from clients in the fourth quarter. In 2025, we anticipate a similar seasonal pattern for our free cash flow and debt leverage.

由於假期相關廣告和促銷活動的時機，我們的季節性生產高峰出現在每年的第三季末和第四季初。這會導致庫存提前積累，從而導致第四季度客戶的收款金額增加。2025 年，我們預期自由現金流和債務槓桿將呈現類似的季節性模式。

When removing the impact of seasonality, our net debt has decreased by $81 million from March 31, 2024, to March 31, 2025. Our free cash flow, in addition to proceeds from asset sales, fuels our capital allocation strategy, as shown on slide 13.

在消除季節性的影響後，從 2024 年 3 月 31 日到 2025 年 3 月 31 日，我們的淨債務減少了 8,100 萬美元。我們的自由現金流，加上資產出售的收益，為我們的資本配置策略提供動力，如幻燈片 13 所示。

As previously mentioned, we completed the divestiture of our European operations to Capmont for a total potential value of EUR41 million or approximately $42 million based on February 28, 2025 exchange rates. We also continue to make progress on the sale of property, plant and equipment from closed facilities. On April 21, we completed the sale of our 65,000 square foot Sacramento, California building for approximately $5 million.

如前所述，我們已完成將歐洲業務剝離給 Capmont，根據 2025 年 2 月 28 日的匯率，總潛在價值為 4,100 萬歐元或約 4,200 萬美元。我們在出售已關閉工廠的財產、廠房和設備方面也繼續取得進展。4 月 21 日，我們以約 500 萬美元的價格完成了位於加州薩克拉門託的 65,000 平方英尺建築的出售。

And in response to lower expected demand for retail inserts, earlier this month, we announced the closure of our 145,000 square foot Greenville, Michigan facility. We expect to generate future cash proceeds from the sale of the Greenville building as well as 3 additional owned facilities that are currently for sale.

為了因應零售插頁需求的預期下降，本月初，我們宣布關閉位於密西根州格林維爾的 145,000 平方英尺的工廠。我們預計，透過出售格林維爾大樓以及目前正在出售的另外 3 個自有設施，我們將獲得未來的現金收益。

With our strong cash generation, we will continue to increase our growth investments as a marketing experience company, such as our recent acquisition of Enru's co-mailing assets, maintain low debt balances and return capital to shareholders through our quarterly dividend and share repurchases. This year, we increased the dividend by 50% from 2024.

憑藉強大的現金創造能力，我們將繼續增加作為行銷體驗公司的成長投資，例如我們最近收購 Enru 的聯合郵寄資產，保持較低的債務餘額，並透過季度股息和股票回購向股東返還資本。今年，我們將股利從 2024 年開始提高 50%。

And year to date in 2025, we repurchased 1.2 million shares of Class A common stock for $6.7 million. This brings our total repurchases to 7.2 million shares since we commenced buybacks in 2022, representing approximately 13% of Quad's March 31, 2022, outstanding shares. We believe this represents strong value, and we will remain opportunistic in terms of our future share repurchases.

截至 2025 年，我們已以 670 萬美元回購了 120 萬股 A​​ 類普通股。自 2022 年開始回購以來，我們的回購總額已達 720 萬股，約佔 Quad 2022 年 3 月 31 日流通股的 13%。我們相信這代表著強大的價值，並且我們將繼續抓住未來股票回購的機會。

Slide 14 includes a summary of our debt capital structure. At the end of the first quarter, our debt had a blended interest rate of 7.1% and our total available liquidity, including cash on hand, was $209 million with our next significant maturity of $193 million not due until October 2029.

投影片 14 包含我們的債務資本結構的摘要。在第一季末，我們的債務混合利率為 7.1%，包括現金在內的總可用流動資金為 2.09 億美元，我們的下一個重要到期債務為 1.93 億美元，要到 2029 年 10 月才到期。

As a reminder, given uncertainty regarding interest rates, we entered into 2 interest rate collar agreements for $150 million notional value during 2023. The interest rate collars cap our exposure if we were to return to a rising rate environment. And with the collar instruments, we also benefit from all interest rate reductions down to approximately 2% SOFR.

提醒一下，鑑於利率的不確定性，我們在 2023 年簽訂了兩份名目價值為 1.5 億美元的利率領圈協議。如果我們回到利率上升的環境，利率區間將限制我們的風險敞口。透過領圈工具，我們還可以從所有利率下調中受益，降至約 2% 的 SOFR。

Including these interest rate collars, we would pay lower interest expense on approximately 87% of our March 31 debt if the Fed decreases rates. We reaffirm our 2025 guidance as shown on slide 15. We continue to expect organic net sales to decline 2% to 6% compared to 2024, excluding 2025 net sales of $23 million and 2024 net sales of $153 million from our divested European operations.

包括這些利率區間，如果聯準會降低利率，我們將為 3 月 31 日債務的約 87% 支付較低的利息支出。我們重申第 15 張投影片所示的 2025 年指引。我們仍預期有機淨銷售額將與 2024 年相比下降 2% 至 6%，不包括 2025 年的 2,300 萬美元淨銷售額和 2024 年剝離的歐洲業務的 1.53 億美元淨銷售額。

Our 2025 net sales guidance represents sequential improvement from the 9.7% net sales decline in 2024 compared to 2023 as we continue to execute on our long-term financial goals, including returning to net sales growth. Full year 2025 adjusted EBITDA is expected to be between $180 million and $220 million, with $200 million at the midpoint of that range.

我們的 2025 年淨銷售額指引較 2024 年淨銷售額下降 9.7%（與 2023 年相比）有所改善，因為我們將繼續執行我們的長期財務目標，包括恢復淨銷售額成長。預計 2025 年全年調整後 EBITDA 將在 1.8 億美元至 2.2 億美元之間，中間值為 2 億美元。

We anticipate lower adjusted EBITDA in the second quarter of 2025 compared to the first quarter of 2025, and then we expect sequentially higher adjusted EBITDA in the third and fourth quarters of 2025 during our seasonal production peak. As Joel previously discussed, we are closely monitoring the potential impacts of tariffs and recessionary pressures on our clients, which could affect advertising and marketing spend, including print volumes.

我們預計 2025 年第二季度的調整後 EBITDA 將低於 2025 年第一季度，然後我們預計在 2025 年第三季和第四季的季節性生產高峰期間，調整後 EBITDA 將連續上升。正如喬爾之前所討論的，我們正在密切關注關稅和經濟衰退壓力對客戶的潛在影響，這可能會影響廣告和行銷支出，包括印刷量。

As we have always done in times of economic disruption, we will remain nimble and adapt to the changing demand environment while maintaining our disciplined approach to how we manage all aspects of our business. This includes events such as the recent Greenville plant closure to rationalize our platform to match demand. We expect 2025 free cash flow to be in the range of $40 million to $60 million, including capital expenditures that are expected to be in the range of $65 million to $75 million.

正如我們在經濟動盪時期一貫所做的那樣，我們將保持靈活並適應不斷變化的需求環境，同時保持嚴謹的方法來管理我們業務的各個方面。這包括最近關閉格林維爾工廠等事件，以合理化我們的平台來滿足需求。我們預計 2025 年自由現金流將在 4,000 萬美元至 6,000 萬美元之間，其中資本支出預計在 6,500 萬美元至 7,500 萬美元之間。

And finally, our net debt leverage ratio is expected to decrease to approximately 1.5 times by the end of 2025, achieving the low end of our long-term targeted net debt leverage range of 1.5 times to 2.0 times. As a reminder, we may operate above this range at certain times of the year, primarily due to the seasonality of our business.

最後，預計到 2025 年底，我們的淨債務槓桿將降至約 1.5 倍，達到我們長期目標淨債務槓桿率範圍的低端，即 1.5 倍至 2.0 倍。提醒一下，我們一年中某些時候的營運可能會超出這個範圍，這主要是由於我們業務的季節性。

Slide 16 includes our key investment highlights as we continue to build on our momentum as a marketing experience company. We believe that Quad is a compelling long-term investment, and we remain focused on growing net sales and driving higher profitability through continued diversification of our revenue and clients. With our expanded offerings such as Household Fusion, At-Home Connect, In-Store Connect and our proprietary household-based data stack discussed earlier, there is a significant addressable revenue opportunity with both our large base of 2,100 existing clients as well as new clients.

投影片 16 包含了我們的主要投資亮點，我們將繼續鞏固作為行銷體驗公司的勢頭。我們相信 Quad 是一項引人注目的長期投資，我們將繼續專注於增加淨銷售額，並透過持續實現收入和客戶的多樣化來提高獲利能力。隨著我們擴展的產品系列（例如 Household Fusion、At-Home Connect、In-Store Connect 以及我們之前討論過的專有家庭資料堆疊），我們龐大的 2,100 個現有客戶群和新客戶群都存在巨大的潛在收入機會。

In addition, our strong cash generation will continue to fuel our capital allocation priorities. These include investing in innovative offerings to drive future revenue growth, maintaining low debt leverage and increasing returns to shareholders through our next quarterly dividend of $0.075 payable on June 6. We also expect to continue to be opportunistic in terms of our future share repurchases. With that, I'd like to turn the call back to our operator for questions.

此外，我們強勁的現金產生能力將繼續推動我們的資本配置重點。這些措施包括投資創新產品以推動未來收入成長、維持低債務槓桿率以及透過 6 月 6 日支付的下一季 0.075 美元股息增加股東回報。我們也希望在未來的股票回購方面繼續抓住機會。說到這裡，我想把電話轉回給我們的接線生以回答問題。

(Operator Instructions) Kevin Steinke, Barrington Research Associates.

（操作員指示）Kevin Steinke，Barrington Research Associates。

I wanted to start out by just talking about the external environment. I thought it was a very solid start to the year, first quarter coming in at least ahead of external expectations. I know you said they were in line with your expectations, but the organic decline of minus 2% on the top line was -- at the most favorable end of your minus 2% to minus 6% outlook organically for the full year.

首先我想談談外在環境。我認為今年的開局非常穩健，第一季的業績至少超出了外部預期。我知道您說過它們符合您的預期，但營收有機下降 2% 是您對全年有機下降 2% 至 6% 的預期中最樂觀的。

But I guess, obviously, some of the more disruptive headlines related to tariffs and the macro came at the beginning of April. So it sounds like you're monitoring that closely, but have you seen any notable change in the demand outlook here early in the second quarter?

但我猜，顯然，一些與關稅和宏觀相關的更具破壞性的頭條新聞出現在 4 月初。聽起來您正在密切關注這一點，但是您是否看到第二季初需求前景有任何顯著變化？

Yes. I mean, I think still some of the organic decline that we see like in catalog and maybe publications. Again, they know that this 10% price increase happens in July. So we were kind of as expected. But when I think about on the marketing side and what clients are doing, we're not -- so they've baked in some of that into their plans already, but we haven't been seeing like a lot of adjustments right now.

是的。我的意思是，我認為我們仍然看到目錄和出版物等有機下降的現象。再說，他們知道這 10% 的價格上漲發生在 7 月。所以我們有點像預期的。但當我考慮行銷方面以及客戶正在做的事情時，我們並沒有——所以他們已經將其中一些內容納入了他們的計劃中，但我們現在還沒有看到很多調整。

I'd say we're seeing some indications of dislocation. And what I mean by that is we've seen a few catalogers and a few retailers actually adjust marketing plans based on the tariffs, meaning in one case, they're not sure they can get the product out of Vietnam in time for the season. So why market it? They had already produced product in Vietnam. But now with everybody trying to get in there, and it's an underdeveloped -- still an underdeveloped platform, they just worry about the availability of capacity.

我想說，我們看到了一些混亂的跡象。我的意思是，我們看到一些編目員和一些零售商實際上根據關稅調整行銷計劃，這意味著在一種情況下，他們不確定是否能在本季之前及時將產品從越南運出。那為什麼要推銷它呢？他們已經在越南生產產品。但現在每個人都想進入那裡，而這是一個尚未開發的——仍然是一個尚未開發的平台，他們只是擔心容量的可用性。

In other cases, we've seen people not know how to price products that are coming. And so we've seen some adjustments there, but it's not enough to call it a trend. And so I think that a lot of our customers are very anxiously awaiting what develops in the tariff world. And my concern is obviously the same as everyone else is does this lead to a rapid slowdown in the economy. But also, it's really about what are the unintended dislocations that cause changes in how our customers act?

在其他情況下，我們發現人們不知道如何為即將推出的產品定價。因此，我們看到了一些調整，但這還不足以稱之為趨勢。因此我認為很多客戶都非常焦急地等待關稅領域的發展。我的擔憂顯然與其他人一樣，即這是否會導致經濟快速放緩。但實際上，哪些意外的混亂會導致我們的客戶行為改變？

And so I think as much visibility as we have, we haven't seen the pullback that maybe some people would think would happen. Now again, my crystal ball is probably as cloudy as yours, but I think everyone is waiting for more direction on what's going to happen here.

因此我認為，儘管我們已經有了足夠的了解，但我們還沒有看到一些人認為會發生的回調。現在，我的水晶球可能和你的一樣渾濁，但我想每個人都在等待更多關於這裡將要發生的事情的指引。

Right. Okay. Well, that makes sense. And so obviously, you talked about the coming postal rate increase in July. But you also talked about the Postal Service doing some testing of price elasticity for catalogs and to see how volume, I guess, reacts to that.

正確的。好的。嗯，這很有道理。顯然，您談到了 7 月即將到來的郵資上漲。但您也談到郵政服務對目錄的價格彈性進行了一些測試，我想看看數量對此有何反應。

I think you talked about that there's been a leadership change at the Postal Service. So I'm wondering if you're taking that testing as some sort of maybe acknowledgment or a change in the views at the Postal Service where maybe there'll be some future more favorable policy in terms of just pricing and how they look at pricing and the trade-off versus volumes.

我想您談到了郵政局領導層的變動。所以我想知道您是否將該測試視為郵政服務某種認可或觀點的改變，也許在定價方面以及他們如何看待定價和權衡數量方面未來會有一些更優惠的政策。

Yes. I think they're obviously hard to understand sometimes and how they come up with what they come up with. But I just came back -- Sunday, Monday, I was at the National Postal Forum in Nashville, where all the postal leaders were. We have an acting Postmaster General because DeJoy had stepped down. We're waiting any day now for the announcement of a new Postmaster General.

是的。我認為有時他們顯然很難理解，以及他們是如何想出這些想法的。但我剛回來——星期天、星期一，我參加了納許維爾的國家郵政論壇，所有的郵政領導都在那裡。由於德喬伊辭職，我們任命了一位代理郵局長。我們正在等待新郵政局長人選的宣布。

Our understanding is that the White House is weighing in, hopefully yesterday or today on who the Board of Governors is picking as their candidate. So that will be telling in terms of do they rethink a flawed plan that was put in place by the previous Postmaster General, where they felt that they -- with volumes down, let's just make it up in pricing, and that's really hurt our industry.

我們的理解是，白宮正在權衡，希望昨天或今天就能決定理事會將選出誰作為候選人。因此，這將說明他們是否會重新考慮前任郵政局長制定的有缺陷的計劃，他們認為，由於郵件數量下降，我們只能通過提高價格來彌補，而這確實損害了我們的行業。

I was able to talk to some of the executives the day before yesterday, including the Head of Pricing, and they admit that in the catalog side because catalog can be much more variable and much more sensitive to cost changes because people just pull back on prospecting if they get a big hit, and ultimately, that hurts the whole category. And so that's why they're putting in this -- so the rates increased by 10-or-so percent in July. They go into effect and then you can qualify for basically offsetting that increase if you're a catalog, but not till October.

前天我與一些高管進行了交談，其中包括定價主管，他們承認目錄方面存在問題，因為目錄的變化可能更大，對成本變化更加敏感，因為如果受到重大打擊，人們就會放棄勘探，最終，這會損害整個類別。這就是他們實施這項政策的原因——7 月利率上漲了 10% 左右。它們生效後，如果您是目錄員，您就有資格基本上抵消這種增加，但要等到十月。

So it's going to be a little bit wonky. But that's a big deal because like I said before, I think people have built in the 10% for the entire year plan. So suddenly, there's an opportunity to kind of do something to get ahead of it. We hope that that creates opportunity as long as we don't get more noise in the economy in the second half. The other thing I'd also take note of in first quarter, is while I made the comment that some of the organic decline with catalog and maybe publication is still impacted by that knowing that increase is coming, we're still winning great new clients.

所以它會有點不穩定。但這很重要，因為就像我之前說的，我認為人們已經將 10% 納入全年計畫。所以突然之間，我們就有機會採取一些措施來應對這種情況。我們希望，只要下半年經濟不再出現更多波動，這將創造機會。我在第一季還要注意的另一件事是，雖然我評論說目錄和出版物的一些有機下降可能仍然受到影響，但知道成長即將到來，我們仍在贏得優秀的新客戶。

And one really great place to highlight is our direct mail group, which volume-wise was up 14% in the quarter or 6% in sales. And that was somewhat skewed towards some of the financial sector, which if you recall a couple of years ago, we were way down in direct mail when interest rates went crazy and the financial sector pulled back.

值得強調的亮點是我們的直郵集團，其郵件數量在本季度增長了 14%，銷售額增長了 6%。這在某種程度上偏向了金融業，如果你還記得幾年前的情況，當利率瘋狂上漲、金融業衰退時，我們的直郵業務就大幅下滑。

So some great signs of winning work based on the MX experience because almost all the direct mail wins we have are not single product or service wins. They're across multiple of Quad offerings, which is just -- it sort of speaks to what we've been talking about for years in the MX experience.

因此，根據 MX 的經驗，一些成功的跡像很明顯，因為我們幾乎所有的直效郵件勝利都不是單一產品或服務勝利。它們涵蓋了多種 Quad 產品，這在某種程度上說明了我們多年來在 MX 體驗中一直在談論的內容。

All right. Yes, that's great to hear. So you made -- it looks like a very small acquisition of Enru and their co-mailing assets. But you've obviously been very good at developing your own co-mailing solutions internally, but just kind of curious what that acquisition might have brought to you that you didn't have before that maybe it made more sense to acquire versus building internally?

好的。是的，聽到這個消息真是太好了。所以你做了——這看起來像是對 Enru 及其聯合郵件資產的一次小規模收購。但您顯然非常擅長在內部開發自己的共同電子郵件解決方案，但只是有點好奇這次收購可能會給您帶來什麼以前沒有的東西，也許收購比內部構建更有意義？

Yes. Enru was previously originally owned by LSC, and they did co-mail like we do. They also do third-party co-mail for other printers, which we do as well, and we'll continue to do because it's very important that the industry as a whole keep making sure that this medium is viable for our customers and co-mail and working to be the most efficient for the customer base is at the heart. They bring a little bit more -- a different type of capability in what is called more of a high-density approach where you can play with mail-less and merge things together to get a different discount rate in certain places where you can have a high-density factor.

是的。Enru 以前最初歸 LSC 所有，他們確實像我們一樣進行共同郵件往來。他們還為其他打印機提供第三方聯合郵件服務，我們也這樣做，並且我們將繼續這樣做，因為整個行業必須確保這種媒介對我們的客戶來說是可行的，並且聯合郵件服務以及努力為客戶群提供最高效的服務是核心。它們帶來了更多功能——一種不同類型的功能，即所謂的高密度方法，您可以使用無郵件並將事物合併在一起，以在可以具有高密度因素的某些地方獲得不同的折扣率。

And so by us bringing that in, we're not only bringing more volume together for the industry that's important to keep the discounts up but we're also combining different capabilities together to further enhance it for everybody. And so I see the combination of the high density and then more of the five-digit that we do to really work together to enhance it for our customers and collectively, the industry's customers. And then also, it comes with some equipment that we've been able to upgrade parts of our platform with. But yes, it's a small acquisition, but important to our clients.

因此，透過引入這項功能，我們不僅為行業帶來了更多銷量，這對於保持折扣至關重要，而且我們還將不同的功能結合在一起，以進一步為每個人提供更好的服務。因此，我看到我們透過高密度和五位數的結合，真正地共同努力，為我們的客戶和整個行業的客戶提供更好的服務。此外，它還配備了一些設備，我們可以用這些設備升級我們平台的部分功能。是的，這是一次小收購，但對我們的客戶來說很重要。

Okay. That's helpful. And you mentioned a couple of new relationships for In-Store Connect with some grocers. Just any comments on maybe the size of those chains and the opportunity to expand with them? And just relatedly, how many stores are you in across all your In-Store Connect clients now as that offering continues to roll out?

好的。這很有幫助。您還提到了 In-Store Connect 與一些雜貨店建立的新關係。您對這些連鎖店的規模以及與它們一起擴張的機會有何評論？與此相關的是，隨著產品的不斷推出，您的 In-Store Connect 客戶目前涵蓋了多少家商店？

Yes. I've always said this space is it's a race for eyeballs. So the more eyeballs you can get exposed to by being in more stores, but also in the mid-market grocery space by tying a lot of them together so they collectively have more eyeballs to offer to the CPGs, that's what's really important. We started out with 15 stores, and now we're at over 45 stores with 30 more coming from the two new customers that we just added.

是的。我一直說這個領域是一場吸引眼球的競賽。因此，透過在更多商店中開設門市，您可以吸引更多眼球，同時還可以透過與中端食品雜貨市場中的許多商店建立聯繫，從而為快速消費品吸引更多眼球，這才是真正重要的。我們最初有 15 家商店，現在已超過 45 家，剛剛增加的兩家新客戶又增加了 30 家商店。

And I'll say that one of them is really interesting -- well, they're both interesting, but one of them is fairly large on the West Coast and is heavily focused on the Hispanic population, which is really important to CPGs. And then another one is a different category of grocery in the smaller size, but they're all trying to figure out how to play in this, and they all -- all these smaller-sized grocery network, they like to coordinate with each other to look for opportunities for things like how do we market better as a small grocer to come together.

我想說，其中一個真的很有趣——嗯，它們都很有趣，但其中一個在西海岸相當大，並且主要關注西班牙裔人口，這對 CPG 來說非常重要。另一個是規模較小的不同類別的雜貨店，但他們都在試圖弄清楚如何參與其中，所有這些規模較小的雜貨店網絡都喜歡相互協調，尋找機會，例如，作為一家小型雜貨店，我們如何更好地進行營銷。

And so our race is to build out the geography across the country and to get further up in number of stores. As we've said in the past, as an example, if you can get to 800 stores, that's the equivalent of a Monday night football audience, which is really important. So we feel good about it.

因此，我們的競爭就是擴大全國的地域範圍並進一步增加商店數量。正如我們過去所說的那樣，舉個例子，如果你能進入 800 家商店，那就相當於週一晚上的足球比賽觀眾，這非常重要。因此我們對此感覺良好。

I think that every grocer is talking about it, who doesn't have it. CPGs are talking about. They're all just trying to figure out how to get there, and they're all going through that process.

我想每個雜貨商都在談論它，誰沒有它。CPG 正在談論。他們只是在試圖弄清楚如何到達那裡，並且他們都在經歷這個過程。

Yes. And Kevin, it's exciting as well that the Save Mart Companies is expanding beyond their initial proof of concept into a second phase.

是的。凱文，同樣令人興奮的是，Save Mart 公司正從最初的概念驗證階段擴展到第二階段。

Barton Crockett, Rosenblatt.

巴頓·克羅克特，羅森布拉特。

So I wanted to drill in a little bit more into the cadence, just given all of the balls up in the air with the tariff situation and everything. So you guys start to lap the headwinds for loss of the grocer client in the second quarter. That would suggest that all else equal, that you could see an improving kind of revenue trajectory in the second quarter. I'm not sure that's consistent with what you were saying in terms of quarterly cadence, but I was wondering if you could address the puts and takes around that for the second quarter?

因此，考慮到關稅情況和所有其它懸而未決的問題，我想更深入地了解節奏。所以你們在第二季開始面臨失去雜貨商客戶的壓力。這表明，在其他條件相同的情況下，第二季的收入軌跡將會有所改善。我不確定這是否與您所說的季度節奏一致，但我想知道您是否可以解決第二季的相關問題？

Yes. Barton, this is Tony. So as we look out to the second quarter, we think that both revenue and EBITDA will be lower than the first quarter. And that, to your point, is despite the lapsing of that grocer that we've been talking about for the past year. The second quarter for us, the early summer is typically a pretty low seasonal point for us.

是的。巴頓，這是東尼。因此，展望第二季度，我們認為營收和 EBITDA 都將低於第一季。正如您所說，儘管我們去年一直在談論那家雜貨店倒閉了，但情況仍然如此。對我們來說，第二季度，初夏通常是一個非常低迷的季節。

And then starting around August, things really start to kick in for our busy season. So that kind of gives you more of the cadence for the year.

然後從八月左右開始，我們的繁忙季節才真正開始到來。這樣一來，您今年的節奏就會更加順暢。

Okay. And is that deceleration in the second quarter -- I mean, the seasonal thing happens every year, so does that suggest that there's just been some kind of impact on demand from the tariffs perhaps in the second quarter? Or anything you can point to that would explain that?

好的。那麼第二季的減速是否意味著——我的意思是，季節性現象每年都會發生，那麼這是否表明關稅在第二季度對需求產生了某種影響？或者您能指出什麼來解釋這一點？

Yes. I think to Joel's earlier point, we've seen some early related impacts from tariffs. But I would attribute this more to seasonal impacts between years.

是的。我認為正如喬爾之前所說，我們已經看到了關稅的一些早期相關影響。但我認為這更多的是由於年份之間的季節性影響。

Okay. And in terms of the holiday season, which is the -- you said the most important for your cash flow of your business. There's a lot of talk about supply constraints potentially being an issue in the Christmas season. When do you -- when would your clients tell you if they need to be in a big reset because they don't have the product? Is that something that would just come very close to before you send the mailings out?

好的。就假期而言，您說這對您企業的現金流來說是最重要的。許多人都在談論供應限制可能會成為聖誕節期間的一個問題。您什麼時候—您的客戶什麼時候會告訴您他們是否需要進行大規模重置，因為他們沒有產品？在您發送郵件之前，這是否是相當接近的事情？

Or how much lead time, how much visibility do you get from your clients?

或者您從客戶那裡獲得了多少準備時間、多少可見度？

It's hard to answer that because no one's really been in the situation before. It's kind of like you come into COVID and everyone is like, we don't have a playbook for this. I don't think people have a playbook for massive tariffs across the whole world potentially hitting them as well as the uncertainty of what's real and what's not, what's going to be pulled back, what will stay in place.

這個問題很難回答，因為以前沒有人真正遇到過這種情況。這有點像你遇到了 COVID，每個人都說，我們沒有應對這種情況的劇本。我認為，人們沒有準備好應對可能對他們造成打擊的全球大規模關稅，以及不確定哪些是真實的，哪些不是，哪些會被撤回，哪些會保持不變。

So I'd love to have a smarter answer, but I think everyone is in the same boat here. This is an experience that people are -- it's like they need more cards to be turned over to understand how to answer that question. I mean, I certainly think the administration isn't interested in totally killing the economy. But they are also very interested in getting to what they would quote as good deals for the United States. The rest of us are just waiting to see what that bet says.

所以我很想得到一個更明智的答案，但我認為每個人都處於同樣的境地。這是人們的一種體驗——就好像他們需要翻開更多的卡片才能明白如何回答這個問題。我的意思是，我當然認為政府並不想徹底摧毀經濟。但他們也非常有興趣達成對他們來說對美國有利的協議。我們其他人只是在等著看賭注的結果。

And so it's a little bit hard to predict client by client because they're all in very different boats. Some are extremely exposed to China, for instance. A lot of them have already moved stuff to other places and a lot of them may not be impacted the same way. So it's not going to be a one-size-fits-all answer because our client base is so broad-based in different categories.

因此，預測每個客戶的情況有點困難，因為他們的情況各不相同。例如，有些公司對中國的依賴程度極高。他們中的許多人已經將東西搬到其他地方，而且他們中的許多人可能不會受到同樣的影響。因此，這不會是一個放諸四海皆準的答案，因為我們的客戶群分佈在不同類別中，範圍非常廣泛。

Okay. And then just one other question on this. The one category that's been flagged by the digital marketers are these retailers that use the de minimis shipping exemption, presumably people like Temu and Shein. Do you guys have much exposure to that?

好的。關於這一點，我還有一個問題。數位行銷人員標記的一個類別是使用最低限度運輸豁免的零售商，大概是像 Temu 和 Shein 這樣的公司。你們對此了解很多嗎？

We do not. We do not. And I do think that that's one that's going to be one to watch. Obviously, that's going to change the dynamics there.

我們沒有。我們沒有。我確實認為這是一件值得關注的事情。顯然，這將改變那裡的動態。

Okay. And then one kind of final thing. I'm just wondering if you could talk a little bit more about the work with Google on artificial intelligence? And just in terms of a description of how impactful this is, I mean, it's -- certainly, AI has driven some transformative kind of improvements in direct marketing performance for some of the digital guys, thinking like Meta, maybe arguably AppLovin. You guys are kind of a different type of model, but a direct marketer.

好的。然後還有最後一件事。我只是想知道您是否可以再多談談與Google在人工智慧方面的合作？至於其影響力有多大，我的意思是，人工智慧確實推動了一些數位公司在直接行銷績效方面的變革性改進，例如 Meta，甚至可能是 AppLovin。你們是不同類型的模特，但都是直銷商。

I know you're using it for Gen AI, but are you seeing any improvements in terms of your ability to kind of target and get a return on ad spend that's tied to this?

我知道您正在將它用於 Gen AI，但您是否看到與此相關的定位能力和獲得廣告支出回報的能力有所提高？

Yes. I mean you think about it as there's kind of layers to how we use the data stack. And the most important thing that we've done, which is happening as we speak, is the rollout of what we call Audience Builder 2.0. And it's literally the tool set for you to be able to tap into the big data stack, which is not just transactional data like other people have, but it's our passion scores that are made up of knowing the content that's going into the mailbox. And so the data sits in the Google Cloud, we've used other people like Snowflake.

是的。我的意思是，您可以想像一下，我們使用資料堆疊的方式有多種層次。我們所做的最重要的事情，也就是我們正在談論的事情，就是推出我們所謂的 Audience Builder 2.0。它實際上是一套工具，讓您能夠利用大數據堆棧，它不僅僅是其他人所擁有的交易數據，而且是我們透過了解進入郵箱的內容而獲得的熱情分數。因此，資料儲存在 Google Cloud 中，我們也使用了 Snowflake 等其他公司的資料。

So you take the AI sort of large language models and they sit above the data stack. But the important thing is you have a tool set to be able to effectuate to be able to pick audience. And that's built by us in conjunction with having those AI language models available to turbocharge it. And so I'm very pleased at the rollout that we have going right now because that's actually what allows us to sell it out into the marketplace.

因此，您可以採用 AI 類型的大型語言模型，它們位於資料堆疊之上。但重要的是，您擁有一套能夠實現選擇受眾的工具。它是由我們結合可用的 AI 語言模型構建的，可以為其提供強大的動力。因此，我對我們現在的推出感到非常高興，因為這實際上使我們能夠將其銷售到市場上。

And so we'll see an acceleration of the use of our data assets because that was -- we had a previous tool that wasn't as sophisticated to be able to handle the amount of attributes that we have now. And so now Audience Builder 2.0 is that interface that allows us to completely access for our clients a very complicated data set.

因此，我們將看到資料資產的使用加速，因為我們以前的工具不夠複雜，無法處理我們現在擁有的屬性數量。現在，Audience Builder 2.0 就是讓我們為客戶完全存取非常複雜的資料集的介面。

And to your point, yes, we are seeing in the case studies we are developing, we are seeing a strong performance by the data from a responsiveness standpoint.

是的，正如您所說，我們在正在開發的案例研究中看到的那樣，從響應能力的角度來看，數據表現強勁。

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

我們的問答環節到此結束。我想將會議交還給 Joel Quadracci 來做最後發言。

Okay. Thank you, everybody, for joining today's call. I want to close by reiterating that our integrated marketing offering continues to be a competitive differentiator and a key driver behind the momentum we are seeing as an MX company as we set new standards for the industry. Not only do we remove friction from whatever it occurs in the marketing journey, but we optimize media and marketing performance through integration.

好的。感謝大家參加今天的電話會議。最後，我想重申，我們的整合行銷產品仍然是我們的競爭優勢，也是我們作為 MX 公司為產業設定新標準時所看到的發展動能的關鍵驅動力。我們不僅消除行銷過程中出現的任何摩擦，而且還透過整合優化媒體和行銷績效。

With that, thank you again, and have a great day.

最後，再次感謝您，祝您有美好的一天。

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。