Rubicon Technologies Inc (RBT) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to Rubicon Technology's Second Quarter 2023 Earnings Call, my name is Lisa, and I'll be your operator for today's call. As a reminder, this conference is being recorded. (Operator Instructions). It is now my pleasure to introduce Chris Spooner, Executive Vice President of Finance. Please go ahead.

下午好，歡迎參加 Rubicon Technology 的 2023 年第二季度收益電話會議，我叫麗莎，我將擔任今天電話會議的接線員。提醒一下，本次會議正在錄製中。 （操作員說明）。現在我很高興向大家介紹財務執行副總裁 Chris Spooner。請繼續。

Thank you. Hello, everyone, and welcome to Rubicon's Second Quarter 2023 Earnings Call. A few quick reminders before we begin. This call is being webcast and can be accessed on the Investors section of our website, which can be found at investor.rubicon.com. Today, we will present Rubicon's financial results for the second quarter of 2023, which will be followed by a question-and-answer session. During the call, management will be making forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, and our actual results may differ materially due to known and unknown risks and uncertainties as discussed in greater detail in our earnings release and our SEC filings.

謝謝。大家好，歡迎參加 Rubicon 2023 年第二季度收益電話會議。在我們開始之前有一些快速提醒。本次電話會議正在進行網絡直播，您可以在我們網站的投資者部分進行觀看，網址為investor.rubicon.com。今天，我們將介紹 Rubicon 2023 年第二季度的財務業績，隨後將進行問答環節。在電話會議期間，管理層將做出前瞻性聲明，這些聲明受1995 年《私人證券訴訟改革法案》安全港條款的約束。這些聲明不是對未來業績的保證，我們的實際結果可能會因已知和未知的風險和不確定性，我們的收益發布和 SEC 文件中對此進行了更詳細的討論。

We assume no obligation to update forward-looking statements, except as required by law. Additionally, we will refer to non-GAAP financial measures during our call today, including adjusted gross profit and adjusted EBITDA. We provide these non-GAAP results for informational purposes, and they should not be considered in isolation from the most directly comparable GAAP measures. A discussion of why we believe these non-GAAP measures are useful to investors, certain limitations of using these measures and reconciliations to the most directly comparable GAAP measure can be found in our earnings release and our filings with the SEC.

除法律要求外，我們不承擔更新前瞻性陳述的義務。此外，我們將在今天的電話會議中提及非公認會計原則財務指標，包括調整後的毛利潤和調整後的 EBITDA。我們提供這些非 GAAP 結果僅供參考，不應將它們與最直接可比的 GAAP 指標分開考慮。關於為什麼我們認為這些非公認會計原則措施對投資者有用的討論、使用這些措施的某些限制以及與最直接可比的公認會計原則措施的調節可以在我們的收益報告和向美國證券交易委員會提交的文件中找到。

Joining me on the call today are Phil Rodoni, Rubicon's Chief Executive Officer; and Kevin Schubert, President and Chief Financial Officer. With that, I would like to turn the call over to Phil.

今天和我一起參加電話會議的是 Rubicon 首席執行官 Phil Rodoni；凱文·舒伯特，總裁兼首席財務官。有了這個，我想把電話轉給菲爾。

Thank you, Chris, and thank you to everyone for joining us today. To begin today's call, I am very proud to say that since our last call, we have achieved a second consecutive quarter of record adjusted gross profit of approximately $18 million, which represents an impressive 41% increase over the second quarter of 2022. Further, we have completed all the highest priority tasks from our bridge to profitability plan and continue to make significant progress against the goals we announced at the end of 2022. Our focus since the fourth quarter of last year has been to improve our liquidity position and accelerate our progress to profitability through key initiatives designed to improve margins, reduce operating costs and increase the company's financial strain and flexibility. The Rubicon team continues to successfully execute our plan, and we are just beginning to see the impact of these efforts on the financials, which is reflected in the double-digit margins in certain segments of the business.

謝謝克里斯，也感謝大家今天加入我們。在今天的電話會議開始之前，我非常自豪地說，自上次電話會議以來，我們已連續第二個季度實現了約1800 萬美元的創紀錄調整後毛利潤，這比2022 年第二季度增長了41%，令人印象深刻。此外，我們已經完成了從盈利計劃開始的所有最優先任務，並繼續朝著我們在2022 年底宣布的目標取得重大進展。自去年第四季度以來，我們的重點一直是改善我們的流動性狀況並加速我們的通過旨在提高利潤、降低運營成本並增加公司財務壓力和靈活性的關鍵舉措來實現盈利。 Rubicon 團隊繼續成功執行我們的計劃，我們剛剛開始看到這些努力對財務的影響，這反映在某些業務部門的兩位數利潤率上。

We are confident this impact will gain significant momentum in the third quarter and result in positive adjusted EBITDA for the fourth quarter. We will provide more details of our progress later in the call. But for those of you who are new to the Rubicon story, I will take a few minutes to describe our company and the work we do with our customers and partners. Rubicon was founded in 2008 and today is the leading global provider of cloud-based waste and recycling solutions. We serve 3 key constituents: waste generators, haulers and processors. For our waste generator customers, including businesses and local governments, Rubicon's software platform is a single solution for waste and recycling service management across all their locations, eliminating the need to coordinate with multiple vendors for waste pickups. Our products also provide data, analytics and reporting that enable customers to optimize their pickup schedule and monitor and report on their ESG performance.

我們相信，這一影響將在第三季度獲得顯著勢頭，並導致第四季度調整後的 EBITDA 為正值。我們將在稍後的電話會議中提供有關進展的更多詳細信息。但對於那些剛接觸 Rubicon 故事的人來說，我將花幾分鐘時間來描述我們的公司以及我們與客戶和合作夥伴所做的工作。 Rubicon 成立於 2008 年，如今是全球領先的基於雲的廢物和回收解決方案提供商。我們為 3 個關鍵組成部分提供服務：廢物產生者、運輸者和處理者。對於我們的廢物產生者客戶（包括企業和地方政府）來說，Rubicon 的軟件平台是跨所有地點進行廢物和回收服務管理的單一解決方案，無需與多個供應商協調廢物收集。我們的產品還提供數據、分析和報告，使客戶能夠優化他們的提貨時間表並監控和報告他們的 ESG 績效。

Streamlined operations, consolidated billing, optimized pickup frequencies and unified reporting ultimately drive reduction in overall costs. Further, Rubicon also provides a suite of transformative artificial intelligence and computer vision technology products, which customers can use to assess the volumes and types of materials in their waste streams. Our technology identifies materials that can be diverted from the waste stream for recycling, allowing customers to sell them as commodities, which helps to offset expenses or even generate net profit.

簡化的運營、整合的計費、優化的取件頻率和統一的報告最終會降低總體成本。此外，Rubicon 還提供一套變革性的人工智能和計算機視覺技術產品，客戶可以使用這些產品來評估廢物流中材料的數量和類型。我們的技術識別出可以從廢物流中轉移出來進行回收的材料，允許客戶將它們作為商品出售，這有助於抵消費用，甚至產生淨利潤。

For waste haulers, including both city and private fleets, Rubicon's platform provides easy-to-use fleet management and route optimization services, access to new business opportunities through our network of waste generator customers and access to a buying consortium where fleet can purchase products and services such as fuel, parts, tires and insurance at a discount. These benefits help fleet customers save time and money and for our city and municipal fleets have resulted in significant taxpayer savings. In fact, our solution for municipal fleet, Rubicon Smart City is one of our fastest-growing products.

對於垃圾運輸商，包括城市和私人車隊，Rubicon 的平台提供易於使用的車隊管理和路線優化服務，通過我們的垃圾產生者客戶網絡獲得新的商機，並進入購買聯盟，車隊可以在其中購買產品和折扣服務，如燃料、零件、輪胎和保險。這些好處可以幫助車隊客戶節省時間和金錢，並為我們的城市和市政車隊節省大量納稅人費用。事實上，我們的市政車隊解決方案 Rubicon Smart City 是我們增長最快的產品之一。

Rubicon Smart City helps cities run faster, smarter and more efficient waste recycling and heavy-duty municipal fleet operations. Our software not only helps drivers become more time efficient with their routes, but it also captures and sends information back to department managers, which can improve response times for service issues like block bins, pickups, recycling contamination and illegal dumping. All of this can lead to increased citizen satisfaction, lower carbon operations, improved driver safety and morale and substantial cost savings from municipal operators. Our waste processor partners rely on our technology and relationships with waste generator customers to receive high quality and consistent volumes of valuable commodities. Rubicon's proprietary technology enables our customers to increase diversion rates and spend more and higher-quality materials to recycling processors.

Rubicon 智能城市幫助城市更快、更智能、更高效地進行廢物回收和重型市政車隊運營。我們的軟件不僅可以幫助司機在路線上提高時間效率，還可以捕獲信息並將其發送回部門經理，這可以縮短對垃圾箱、皮卡、回收污染物和非法傾倒等服務問題的響應時間。所有這些都可以提高公民滿意度、低碳運營、提高駕駛員安全和士氣，並為市政運營商節省大量成本。我們的廢物處理合作夥伴依靠我們的技術以及與廢物產生者客戶的關係來獲得高質量和穩定數量的有價值的商品。 Rubicon 的專有技術使我們的客戶能夠提高轉化率，並將更多、更高質量的材料用於回收加工商。

We also designed programs for our customers to incorporate best practices for material handling and logistics that allow them to command premium commodity rates. Today, Rubicon has achieved significant scale, surpassing 13 million unique service locations and 8,000 haulers and recycling partners with the ability to manage more than 160 types of waste streams as our network continues to grow, our customers benefit from better pricing, a broader service offering, increased diversion capabilities and improved performance. In the past quarter, we've made great strides and achieved significant objectives as we position the company for profitability. In June, we announced that we had secured a comprehensive financial package, which was the final of the 3 strategic financing objectives we discussed on our earlier calls. The financing package, which includes a $75 million term loan and a new revolving credit line of up to $90 million improves liquidity and solidifies the path forward to positive adjusted EBITDA by the end of the year.

我們還為客戶設計了計劃，納入物料搬運和物流的最佳實踐，使他們能夠獲得優質的商品價格。如今，Rubicon 已實現巨大規模，超過1300 萬個獨特的服務地點和8,000 個運輸商和回收合作夥伴，隨著我們網絡的不斷發展，我們能夠管理160 多種類型的廢物流，我們的客戶將受益於更優惠的價格和更廣泛的服務，增加了導流能力並提高了性能。在過去的季度中，我們在公司盈利定位方面取得了長足進步並實現了重大目標。 6 月，我們宣布已獲得全面的財務方案，這是我們在之前的電話會議中討論的 3 個戰略融資目標中的最後一個。該融資方案包括 7500 萬美元的定期貸款和高達 9000 萬美元的新循環信貸額度，改善了流動性，並鞏固了年底前實現正調整 EBITDA 的道路。

With a stronger balance sheet in place, we are now fully focused on growth and optimizing our operations for the future. In addition, we continue to make significant progress on our bridge to profitability plan, which is focused on improving margins, reducing operating costs and increasing the company's financial strength and flexibility. Since the end of the third quarter of 2022, we have expanded our adjusted gross profit margin by 260 basis points to 10.3% as of the end of the second quarter of 2023. This was achieved through growth in our higher-margin SaaS business, targeting higher-margin businesses lines for growth within our Rubicon Connect business, high-grading the existing customer portfolio and eliminating less profitable accounts.

有了更強大的資產負債表，我們現在完全專注於增長和優化未來的運營。此外，我們繼續在盈利計劃方面取得重大進展，該計劃的重點是提高利潤率、降低運營成本以及增強公司的財務實力和靈活性。自2022 年第三季度末以來，截至2023 年第二季度末，我們已將調整後毛利率擴大了260 個基點，達到10.3%。這是通過利潤率較高的SaaS 業務的增長實現的，目標是利潤率較高的業務在我們的 Rubicon Connect 業務中尋求增長，對現有客戶組合進行高評級並消除利潤較低的客戶。

We have also reduced expenses by an estimated $45 million on an annualized basis as of July 2023 through actions designed to help optimize supplier costs and general and administrative expenses and previously announced or force reductions. We've been able to fine-tune our operations without sacrificing growth within the core business. During the second quarter alone, we announced several big commercial wins. In June, we welcomed Denver, Colorado to the Rubicon Smart City family.

截至 2023 年 7 月，我們還通過旨在幫助優化供應商成本以及一般和管理費用以及之前宣布或強制削減的行動，按年計算減少了約 4500 萬美元的費用。我們能夠在不犧牲核心業務增長的情況下調整我們的運營。僅在第二季度，我們就宣布了幾項重大的商業勝利。六月，我們歡迎科羅拉多州丹佛市加入 Rubicon 智能城市大家庭。

Our technology is now powering the city and county of Denver's entire solid waste and recycling fleet of more than 150 vehicles, digitizing operations and enabling greater efficiency. We are also proud to announce that Rubicon has successfully deployed our Smart City technology for municipal fleet in more than 100 cities, including 8 of the top 20 U.S. cities by population. This incredible milestone was achieved in just 6 years with the city adoption doubling year-over-year over the last few years. We expect similar momentum to continue for this product line.

我們的技術目前正在為丹佛市和縣的整個固體廢物和回收車隊提供動力，該車隊擁有 150 多輛車輛，實現運營數字化並提高效率。我們還自豪地宣布，Rubicon 已成功為 100 多個城市的市政車隊部署了我們的智能城市技術，其中包括美國人口排名前 20 的城市中的 8 個。這個令人難以置信的里程碑是在短短六年內實現的，過去幾年城市採用率逐年翻倍。我們預計該產品線將繼續保持類似的勢頭。

We had an opportunity to meet with smart city partners and prospects at our Rubicon Smart City -- next Summit in New York in June. The event featured keynotes, panels and workshops on the innovative ideas shaping the future of Waste Management, municipal operations and fleet technology. For me, the most rewarding aspect of this event was receiving the positive feedback from our customers and hearing them share best practices with their peers as well as with prospective customers, many of whom attended due to their interest in the features and capabilities of the Rubicon Smart City product.

我們有機會在 6 月份於紐約舉行的下一次峰會 Rubicon 智能城市峰會上與智能城市合作夥伴和潛在客戶會面。此次活動以主題演講、小組討論和研討會為主題，探討塑造廢物管理、市政運營和車隊技術未來的創新理念。對我來說，這次活動最有價值的方面是收到客戶的積極反饋，並聽到他們與同行以及潛在客戶分享最佳實踐，其中許多人因為對 Rubicon 的特性和功能感興趣而參加智慧城市產品。

We continue to grow with our customers by offering new features and functionality within the platform. During the next Summit, we announced the launch of an integrated billing feature to digitize interaction between operations and billing functions. Automatically creating charges from exceptions, easily updating customers status based on billables and further streamlining fleet operations.

我們通過在平台內提供新的特性和功能，繼續與客戶共同成長。在下一次峰會期間，我們宣布推出集成計費功能，以數字化操作和計費功能之間的交互。自動根據異常情況創建費用，根據賬單輕鬆更新客戶狀態，並進一步簡化車隊運營。

In addition to our wins in Rubicon Smart City, our Rubicon Connect product has added several new customers as well as extension with current customers. Most recently, we welcomed True Food Kitchen and Artisan Floors to our growing family of customers. These companies, like our other value commercial customers will experience the full benefits of our digital platform for scalable waste and recycling services. We are excited to support their efforts in reducing environmental impact while providing exceptional value and service to their own customers.

除了我們在 Rubicon 智能城市中取得的勝利之外，我們的 Rubicon Connect 產品還增加了一些新客戶以及現有客戶的擴展。最近，我們迎來了 True Food Kitchen 和 Artisan Floors 加入我們不斷壯大的客戶群。這些公司與我們的其他價值商業客戶一樣，將體驗到我們可擴展的廢物和回收服務數字平台的全部優勢。我們很高興能夠支持他們在減少環境影響方面所做的努力，同時為他們的客戶提供卓越的價值和服務。

We are also delighted to announce some notable customer renewals. Recently, GAAP Inc. renewed their contract with Rubicon for a further 5 years. Our market-leading Rubicon Connect platform has been deployed at more than 2,000 GAAP retail stores across the United States and Canada, including at all of Gap's lifestyle brands, Old Navy, Gap, Banana Republic and Athleta and Gap Outlet and Banana Republic Factory locations. Additionally, Goodyear Tires renewed their contract with Rubicon for a further 2 years. Our platform is deployed at more than 800 Goodyear retail and commercial locations across the United States. I will now turn the call over to Kevin to provide a review of the second quarter financials.

我們還很高興地宣布一些重要的客戶續約。最近，GAAP Inc.與Rubicon續簽了5年合同。我們市場領先的 Rubicon Connect 平台已部署在美國和加拿大 2,000 多家 GAAP 零售店，包括 Gap 的所有生活方式品牌、Old Navy、Gap、Banana Republic 和 Athleta 以及 Gap Outlet 和 Banana Republic Factory 門店。此外，固特異輪胎還與 Rubicon 續簽了 2 年合同。我們的平台部署在美國 800 多個固特異零售和商業地點。我現在將把電話轉給凱文，以提供對第二季度財務狀況的回顧。

Thanks, Phil. I will now take a few minutes to review our second quarter results. Rubicon generated approximately $175 million of revenue in the second quarter. This was an increase of $10 million or 6% compared to the second quarter of 2022. The adjusted gross profit in the second quarter was approximately $18 million, an increase of $5 million or 41% compared to the second quarter of 2022, and we are very proud to say that Q2 2023 was our second consecutive quarter of record adjusted gross profit. Adjusted EBITDA for the second quarter was negative $9.7 million, which is an improvement of $9.2 million and an approximately 50% improvement versus the $19 million loss for the second quarter of 2022.

謝謝，菲爾。我現在將花幾分鐘回顧一下我們第二季度的業績。 Rubicon 第二季度營收約為 1.75 億美元。與 2022 年第二季度相比增加了 1000 萬美元，即 6%。第二季度調整後毛利潤約為 1800 萬美元，與 2022 年第二季度相比增加了 500 萬美元，即 41%，我們非常自豪地說，2023 年第二季度是我們連續第二個季度調整後毛利潤創紀錄。第二季度調整後 EBITDA 為負 970 萬美元，與 2022 年第二季度 1900 萬美元的虧損相比，增加了 920 萬美元，減少了約 50%。

It is worth noting that the adjusted EBITDA figure still includes an additional $1 million of nonrecurring items, which have not been adjusted for. These items relate to expenses mostly resulting from our recent financing transaction. As of the end of the second quarter, the company had $27 million of cash and undrawn availability under our credit facility. We are proud of the steady improvements that are making a material impact on our results. Looking forward to the remaining 2 quarters of 2023, we expect to be in line with the guidance we gave on our previous calls and remain confident in our ability to generate positive adjusted EBITDA for the fourth quarter of this year as well as for the full year 2024. Phil will now give an update on the key strategies we're implementing to achieve these projections.

值得注意的是，調整後的 EBITDA 數字仍包括額外的 100 萬美元非經常性項目，該項目尚未進行調整。這些項目主要與我們最近的融資交易產生的費用有關。截至第二季度末，該公司在我們的信貸安排下擁有 2700 萬美元的現金和未提取的可用資金。我們為對我們的業績產生重大影響的穩步改進感到自豪。展望 2023 年剩下的 2 個季度，我們預計將與我們之前電話會議中給出的指導保持一致，並對我們在今年第四季度以及全年產生正調整 EBITDA 的能力充滿信心2024 年。菲爾現在將介紹我們為實現這些預測而正在實施的關鍵戰略的最新情況。

Thank you, Kevin. We believe Rubicon's industry-leading service experience for waste generators, fleets and processors is strategically well positioned as the definitive platform to enable the elimination of waste in years to come. As I mentioned earlier, we have completed all the highest priority tasks within our bridge to profitability plan, which lays the foundation for the company to achieve profitability and positions us for profitable growth moving forward. For example, in the near term, we plan to achieve profitable growth through customer wallet share expansion, new product offerings and improved operational efficiency. We currently estimate that we have about 30% of our customers' wallet share. We see this as a considerable opportunity to increase sales within our current customer base, whether that is through additional service locations, material streams or products. In addition to capturing additional wallet share, we are able to focus on selling higher-margin products and will improve the overall margin profile. For prospective customers, we will offer flexible and tailored experiences.

謝謝你，凱文。我們相信，Rubicon 為廢物產生者、車隊和處理者提供行業領先的服務經驗，在戰略上處於有利地位，成為在未來幾年消除廢物的權威平台。正如我之前提到的，我們已經完成了盈利計劃中的所有最優先任務，這為公司實現盈利奠定了基礎，並為我們未來的盈利增長奠定了基礎。例如，在短期內，我們計劃通過擴大客戶錢包份額、提供新產品和提高運營效率來實現盈利增長。目前我們估計我們擁有大約 30% 的客戶錢包份額。我們認為這是一個在我們當前客戶群中增加銷售額的絕佳機會，無論是通過額外的服務地點、物料流還是產品。除了獲得額外的錢包份額外，我們還能夠專注於銷售利潤率更高的產品，並將改善整體利潤率。對於潛在客戶，我們將提供靈活且量身定制的體驗。

In the past, our Rubicon Connect products were offered only as a package with service, procurement, solutions, consulting and commodities handling bundled together. But we will now offer those products a la carte. For some smaller prospects, the expense and vast functionality of the package as a whole could be a barrier to winning their business. Now we can earn their business through custom product selection and build these relationships over time. We also plan to improve efficiency across the board with the strategic use of artificial intelligence-based systems in our operations. As mentioned on the last call, we are deploying a chat GPT like large language model to automatically process inbound work order requests, thereby reducing the need for employees to do repetitive data entry and freeing up their time to provide value-added services. Using similar technology, we are digitizing, processing and matching holler invoices against customer work orders to automatically audit invoices and reduce processing costs.

過去，我們的 Rubicon Connect 產品僅作為服務、採購、解決方案、諮詢和商品處理捆綁在一起的套餐提供。但我們現在將按菜單提供這些產品。對於一些規模較小的潛在客戶來說，整個套餐的費用和龐大的功能可能會成為贏得業務的障礙。現在，我們可以通過定制產品選擇來贏得他們的業務，並隨著時間的推移建立這些關係。我們還計劃在運營中戰略性地使用基於人工智能的系統，全面提高效率。正如上次電話中提到的，我們正在部署類似 GPT 的大型語言模型來自動處理入站工單請求，從而減少員工重複數據輸入的需要，並騰出時間來提供增值服務。使用類似的技術，我們正在對客戶工單進行數字化、處理和匹配，以自動審核發票並降低處理成本。

We will also have new products to offer our customers. As a software company, we are able to be flexible and solve our customers' problems as they arise. As mentioned earlier, our most recent product enhancement is a billing feature integrated into our fleet management solution, Rubicon Pro. This new feature unifies and simplifies interactions between the operational side of fleet management and the back-office billing functions to ensure that the bill is generated are accurate and reflective of all the services provided to customers. Another example is our Snowplow fleet management software, which was born out of Kansas City, Missouri request to implement the same efficiency gained in their waste program into their snow program. We will shortly be rolling out the newest version of that software with more features to improve our customers' experience. Our progress to date strengthens our confidence in achieving positive adjusted EBITDA in Q4, expanding our adjusted gross profit margins to the low double-digit range and attaining operating cash flow positivity by the end of the year.

我們還將有新產品提供給我們的客戶。作為一家軟件公司，我們能夠靈活地解決客戶出現的問題。如前所述，我們最新的產品增強功能是將計費功能集成到我們的車隊管理解決方案 Rubicon Pro 中。這一新功能統一併簡化了車隊管理運營方與後台計費功能之間的交互，以確保生成的賬單準確並反映向客戶提供的所有服務。另一個例子是我們的掃雪機車隊管理軟件，該軟件誕生於密蘇里州堪薩斯城的要求，將其廢物計劃中獲得的相同效率應用到他們的除雪計劃中。我們很快將推出該軟件的最新版本，其中包含更多功能，以改善客戶體驗。迄今為止，我們取得的進展增強了我們在第四季度實現正調整 EBITDA、將調整後毛利率擴大至低兩位數範圍並在年底前實現正運營現金流的信心。

We've invested in scaling our business by building a network of over 8,000 hours, serving 13 million unique service locations and analyzing 1 million images daily for insights on the waste streams and infrastructure. With our broad service portfolio, growth opportunities and improved profitability and product leadership, we will continue to expand that network we serve and expand the range of services we offer. Thank you for continuing this journey with us. We look forward to updating you on our progress in the coming quarters. With that, I will turn the call over to the operator, who can open the line for questions.

我們投資擴大了我們的業務，建立了一個長達 8,000 多個小時的網絡，為 1300 萬個獨特的服務地點提供服務，並每天分析 100 萬張圖像以獲取有關廢物流和基礎設施的見解。憑藉我們廣泛的服務組合、增長機會以及不斷提高的盈利能力和產品領先地位，我們將繼續擴大我們的服務網絡並擴大我們提供的服務範圍。感謝您與我們一起繼續這段旅程。我們期待向您通報我們未來幾個季度的最新進展。這樣，我會將電話轉給接線員，接線員可以打開電話詢問問題。

Thank you. We will now begin the question-and-answer session. (Operator Instructions). We'll take our first question from Maria Ripps with Canaccord.

謝謝。我們現在開始問答環節。 （操作員說明）。我們將通過 Canaccord 回答 Maria Ripps 提出的第一個問題。

First, could you maybe provide us with an update on your efforts to onboard new logos? Have you seen brands and hole sort of exhibit greater adoption of your solutions given the main value proposition and efficiency gains? And how would you characterize how sales cycle length has been trending here more recently?

首先，您能否向我們提供有關您在採用新徽標方面所做努力的最新信息？鑑於主要價值主張和效率提升，您是否看到品牌和孔類顯示出更多地採用您的解決方案？您如何描述最近銷售週期長度的趨勢？

Thank you for the question. So in terms of onboarding new haulers, I think it's important to note that we have over 8,000 haulers and processors on our platform today, and effectively, we curate that list to make sure that we have the best available haulers and the exact locations that we actually need them. So our efforts in terms of -- we're always constantly kind of looking for new haulers that can provide unique and specific services, whether that be new material types that we want to be able to handle for our customers. But in terms of the software side I think is what the orientation to our question is in terms of how we're bringing kind of haulers and cities onto our Smart City and/or Rubicon products.

感謝你的提問。因此，就加入新運輸商而言，我認為重要的是要注意，我們今天的平台上有超過8,000 個運輸商和處理商，並且有效地，我們整理了該列表，以確保我們擁有最好的可用運輸商和我們的確切位置。實際上需要它們。因此，我們的努力是——我們總是不斷地尋找能夠提供獨特和特定服務的新運輸商，無論是我們希望能夠為客戶處理的新材料類型。但就軟件方面而言，我認為我們問題的方向是如何將運輸工具和城市引入我們的智能城市和/或 Rubicon 產品。

Those sales cycles, typically, there's multiple ways we sell. First and foremost, we'll typically kind of go through our traditional kind of RFPs, which have a longer cycle but we also kind of sell via kind of partnership networks. So we have hardware providers that we actually sell through that actually -- those are very kind of valuable partnership -- partnerships that we have. So if a fleet already has a hardware provider that they're working with, they can get our solution kind of on top of that. So those are kind of our more expedited sales, and then we also have buying consortiums that we're actually part of. HDAC buy is an example of that, and so if we're effectively kind of pre-vetted for certain categories. So we'd say our ability to kind of onboard kind of customers or onboard fleets onto our platform has been very robust, and I think we noted in the last quarter, we have surpassed our 100th city on the platform itself.

通常，在這些銷售週期中，我們有多種銷售方式。首先也是最重要的，我們通常會瀏覽傳統類型的 RFP，其周期較長，但我們也會通過某種合作夥伴網絡進行銷售。因此，我們有硬件供應商，我們實際上通過這些供應商進行銷售——這些是非常有價值的合作夥伴關係——我們擁有的合作夥伴關係。因此，如果車隊已經有與他們合作的硬件提供商，他們可以獲得我們的解決方案。所以這些是我們更快速的銷售，然後我們還有我們實際上參與的購買聯盟。 HDAC 購買就是一個例子，因此，如果我們對某些類別進行有效的預先審查。因此，我們可以說，我們在平台上吸引各類客戶或車隊的能力非常強大，而且我認為我們在上個季度注意到，我們已經超過了平台上的第 100 個城市。

Great, that's very helpful, and maybe just to follow up on your SaaS segment. Could you maybe refresh us on when you -- we might see you sort of break that business out? And how are you thinking about potential long-term mix of SaaS versus marketplace revenue?

太棒了，這非常有幫助，也許只是為了跟進您的 SaaS 細分市場。您能否讓我們回顧一下您的情況——我們可能會看到您打破這項業務？您如何看待 SaaS 與市場收入的潛在長期組合？

Yes. I think our position has always been maybe towards the end of the year when we have significant kind of volume on the platform that we'd start kind of breaking it out. That's not a guarantee, but I think probably in that time frame, it would make sense. But yes, we'll see as things going to go on.

是的。我認為我們的立場可能一直是在年底，當我們在平台上擁有大量交易量時，我們就會開始突破它。這不是一個保證，但我認為在那個時間範圍內，這可能是有意義的。但是，是的，我們會看到事情的進展。

And the mix of revenue?

收入的組合？

Mix of revenue, I think what you would see kind of -- if we break it out, you'd see it there as well.

我想你會看到收入的混合——如果我們把它分開，你也會在那裡看到它。

Got it. That's very helpful.

知道了。這非常有幫助。

We'll take our next question from Brett Knoblauch with Cantor Fitzgerald.

我們將回答布雷特·諾布勞赫和坎托·菲茨杰拉德提出的下一個問題。

Congrats on the quarter. Maybe if we can dive into your relationship with Palantir, I know there was some news in the quarter other than kind of an increase in our ownership. Can you just remind us of what that relationship is, what product that you guys are building, when we should expect that to be deployed and maybe the potential revenue opportunity from that product that you guys see?

恭喜本季度。也許如果我們可以深入了解您與 Palantir 的關係，我知道本季度除了我們的所有權增加之外還有一些消息。您能否提醒我們這種關係是什麼，你們正在構建什麼產品，我們應該何時部署該產品，以及你們看到的該產品的潛在收入機會？

Sure. I appreciate the question, Brett. So as you know, kind of Palantir was an investor during our kind of our pipe process during this back, and they have since kind of invested further in the company, which we're very thankful as well, and the reason being we have a great relationship with them, they are helping us certainly kind of build out many of the kind of the AI functionality that we have that helps us with the optimizations and whether that be kind of optimizations on pickup frequency optimization and material characteristic type of optimizations. That's where kind of some of the artificial intelligence kind of comes in on the image recognition side as well, and then lastly, we're really looking for them, and it's probably more back of the house.

當然。我很欣賞這個問題，布雷特。如您所知，Palantir 是我們管道流程中的投資者，此後他們對公司進行了進一步投資，我們也非常感謝，原因是我們有一個與他們有著良好的關係，他們確實幫助我們構建了許多我們擁有的人工智能功能，這些功能可以幫助我們進行優化，以及是否是拾音頻率優化和材料特性類型優化的優化。這就是一些人工智能在圖像識別方面發揮作用的地方，最後，我們真的在尋找它們，而且可能更多的是在房子後面。

You don't necessarily kind of see it as they kind of name product out in the market, but behind the scenes, what we're doing in terms of kind of recognizing kind of invoice is much faster and much quicker on our side. There's a lot of kind of artificial intel that goes on that when you're reading an invoice automatically extracting the kind of the pertinent data points along the way, and that really helps us speed the processing of those invoices helps us build faster to our customers that actually helps us on a working capital perspective and certainly actually helps us kind of reduce the overall operational expense of the company. So sometimes you don't necessarily see it as a kind of as a forefront kind of product out in the marketplace. But suffice it to say, they've been instrumental in actually helping us on our optimization front.

你不一定會看到它，因為他們在市場上命名產品，但在幕後，我們在識別發票方面所做的工作在我們這邊要快得多。當您閱讀發票時，有很多人工情報會自動提取相關數據點的類型，這確實有助於我們加快這些發票的處理速度，幫助我們更快地為客戶提供服務這實際上從營運資金的角度幫助我們，當然也確實幫助我們減少了公司的整體運營費用。因此，有時您不一定將其視為市場上的一種前沿產品。但可以說，他們在實際幫助我們優化方面發揮了重要作用。

Perfect. Understood, and then the kind of performance on net revenue margin in the quarter was very good. I know you guys were kind of expecting to exit the year above 10% and you guys did it this quarter. Can you maybe break out what are the moving pieces in there that allowed you kind of reach in maybe a couple of quarters earlier and how we should be thinking about additional expansion for the rest of the year.

完美的。明白了，然後這個季度的淨利潤率表現就非常好。我知道你們預計今年退出時的增長率將超過 10%，而你們在本季度做到了。您能否透露一下其中有哪些活動可以讓您提前幾個季度實現目標，以及我們應該如何考慮在今年剩餘時間內進行額外擴張。

Sorry about that. Yes. No, and really, it was really just the focus of the team like optimizing expenses as we went through and really driving sort of that high-grading of our portfolio that we've been looking really mindful of looking at every piece of our portfolio and driving sort of price action where we can and we were thinking about our portfolio mindful we really had to achieve tremendous scale. So now it was really the opportunity to go in line that and really think about it smart rate and how we can optimize it, and we just found a number of opportunities to really sort of drive that growth. I would say, I think we're going to probably continue to see margin expand further, but at a slower rate, I think you're not going to see substantial jumps from here, but sort of small incremental increases as you move forward as we were able to drive obviously significant expansion through most recent effort.

對於那個很抱歉。是的。不，事實上，這實際上只是團隊的重點，比如在我們經歷過的過程中優化費用，並真正推動我們投資組合的高評級，我們一直在認真審視我們投資組合的每一個部分，盡我們所能推動某種價格行為，我們在考慮我們的投資組合時，意識到我們確實必須實現巨大的規模。因此，現在確實是一個機會，可以遵循這一點，並真正考慮它的智能率以及我們如何優化它，我們剛剛發現了許多真正推動這種增長的機會。我想說，我認為我們可能會繼續看到利潤率進一步擴大，但以較慢的速度，我認為你不會看到從這裡開始的大幅躍升，但隨著你向前推進，會出現一些小幅的增量增長通過最近的努力，我們能夠明顯推動顯著的擴張。

Got it, and then I guess if I could just ask one more on the recyclable commodities segment continues to kind of be weak recyclable commodity prices. Bottom, any expectations for that segment as we kind of think about the rest of the year and into next year.

明白了，然後我想我是否可以再問一個關於可回收商品領域的問題，可回收商品價格仍然疲軟。底部，當我們考慮今年剩餘時間和明年時，對該細分市場的任何期望。

Brett, yes, we did see about an $11 million decrease in our revenues year-over-year related to the declines in commodity pricing for the quarter. We have seen that modestly rebound starting off of this quarter, but we would expect revenues to remain roughly flat from commodities, absent some underlying volume growth going forward. We're not taking a bias on improvements in commodity prices, especially given, as you can probably recall, were effectively insulated at the adjusted gross profit level from swings in commodity price movements.

Brett，是的，我們確實看到由於本季度商品定價下降，我們的收入同比減少了約 1100 萬美元。我們已經看到從本季度開始溫和反彈，但我們預計大宗商品的收入將大致持平，除非未來出現一些潛在的銷量增長。我們不會對大宗商品價格的改善抱有偏見，特別是考慮到您可能還記得，調整後的毛利潤水平有效地避免了大宗商品價格波動的影響。

Got it. Appreciate it.

知道了。欣賞它。

We'll take our next question from Stephanie Moore with Jefferies.

我們將回答斯蒂芬妮·摩爾和杰弗里斯提出的下一個問題。

Thank you. I think congrats again on the second quarter of record gross profit and the improvement in the first half of the year. Could you maybe talk a little bit on the path to continued improvement and what it's going to take to kind of see that accelerated growth kind of going forward?

謝謝。我認為再次祝賀第二季度創紀錄的毛利潤以及上半年的改善。您能否談談持續改進的道路以及如何才能看到未來的加速增長？

Sure, and I think our plan overall has been always kind of somewhat ranging in terms of kind of path to profitability, but we certainly look to kind of expand our sales and expand our inroads into our existing customer base, and as I mentioned earlier that we still think we only have about 30% of our customers kind of wallet share, so kind of getting further deeply ingrained with our existing customers is certainly core to our strategy. Certainly, we always are looking to kind of being in kind of new customers on the platform at the same time and then pairing that with our smart city and we got kind of pro sales and we have new products coming out in the marketplace, whether that be the billing feature that we talked about or kind of directly selling temporary kind of open top services, which you'll actually see us do in the near term.

當然，我認為我們的總體計劃在盈利途徑方面總是有所不同，但我們當然希望擴大我們的銷售並擴大我們對現有客戶群的滲透，正如我之前提到的那樣我們仍然認為我們只擁有大約30% 的客戶錢包份額，因此進一步深入了解現有客戶無疑是我們戰略的核心。當然，我們總是希望同時在平台上吸引新客戶，然後將其與我們的智慧城市配對，我們獲得了專業銷售，並且我們在市場上推出了新產品，無論是是我們談到的計費功能或直接銷售臨時類型的開放式服務，您實際上會在短期內看到我們這樣做。

So we have more products coming out in the marketplace. So I think from an overall kind of revenue-generating perspective, where we expect going to have further growth, which puts us further down along the way on our path to profitability. We still have some savings to go on that plan, and we've not stopped to kind of optimize whatever expenses we actually have on that side. So there are still some big chunks of savings that are within the company that as we further optimize our operations on the back office side as we further employ some of these artificial intelligence-based solutions that we've talked about on the optimization front, those are all things that actually help us operate much more efficiently. So you'll see that kind of improve our bottom line numbers as well.

因此，我們有更多的產品出現在市場上。因此，我認為，從整體創收的角度來看，我們預計將有進一步的增長，這使我們在盈利之路上進一步走低。我們仍然有一些積蓄可以用於該計劃，並且我們並沒有停止優化我們在這方面實際擁有的任何費用。因此，隨著我們進一步優化後台運營，進一步採用我們在優化方面討論過的一些基於人工智能的解決方案，公司內部仍然可以節省大量資金，這些所有這些實際上都可以幫助我們更有效地運作。所以你也會看到我們的底線數字也得到了改善。

And Stephanie, I'd also add that there are several new service lines that we're looking at new areas of growth that we're going into that really sort of part that we've sort of expanded on rebuilding technology. Bill mentioned the building piece that's just coming online, which is really going to allow us to sell the remain process sort of in earnest, and we're also looking at several other business lines that we think we'll be able to monetize as we move forward.

斯蒂芬妮，我還想補充一點，我們正在尋找一些新的服務線，以尋找新的增長領域，我們正在進入我們在重建技術方面擴展的真正部分。比爾提到了剛剛上線的構建部分，這確實將使我們能夠認真地出售剩餘流程，而且我們還在考慮其他幾個業務線，我們認為我們將能夠通過這些業務線獲利前進。

Got it, that's really helpful, and then I think on this path to profitability, kind of looked at optimizing some of your accounts and your customers. How long do we think we should expect to see this kind of going forward, this kind of customer optimization? And then maybe on the flip side, ink, also and the path of profitability have focused on kind of raising price and enhancing our profitability with certain customers, too. So maybe you can talk a little bit on how retention rates have been trending Thank you.

明白了，這真的很有幫助，然後我認為在這條盈利之路上，有點著眼於優化你的一些賬戶和客戶。我們認為我們需要多長時間才能看到這種進展、這種客戶優化？也許另一方面，墨水和盈利之路也集中在提高價格和提高我們對某些客戶的盈利能力上。也許您可以談談保留率的趨勢，謝謝。

Stephanie. Yes, from an optimization standpoint, I would expect it to kind of continue on sort of at least 3 years quarter potentially in the fourth quarter as we are continuing to work through and there is some real a lot of these rigs, we don't take time to fully sort of work the system. So I would expect it to sort of be primarily done by the end of this year of course, the -- you'll see sort of the results of it as we're continuing to work through the end of the year. But it is going to be an ongoing process revenue. We have the conscious effort that we are going to be a profitability-focused company so as we come across other opportunities to do that we're going to is obviously take that, and I apologize, what was the second part of your question?

斯蒂芬妮。是的，從優化的角度來看，我預計它可能會在第四季度持續至少 3 年的季度，因為我們正在繼續努力，而且確實有很多這樣的鑽機，我們沒有需要時間來充分整理系統的工作。所以我預計它會在今年年底前主要完成，當然，當我們繼續工作到今年年底時，你會看到它的結果。但這將是一個持續的過程收入。我們有意識地努力成為一家以盈利為中心的公司，因此當我們遇到其他機會時，我們顯然會抓住這一點，我很抱歉，你問題的第二部分是什麼？

Just wanted to get a little bit of color on just how retention rates are trending with your current customers kind of following after the price increases and some of the actions you've taken to optimize...

只是想了解一下當前客戶在價格上漲後的保留率趨勢以及您為優化而採取的一些行動...

Yes. Stephanie, it's still strong. We'll post 105% revenue net retention for the quarter, so consistent with our triple-digit net revenue retention that we've averaged going back over the last few years.

是的。斯蒂芬妮，它仍然很強大。我們將公佈本季度 105% 的收入淨保留率，這與我們過去幾年平均的三位數淨收入保留率一致。

We have no further questions at this time. I'll turn the call back over to Mr. Rodoni for final remarks.

目前我們沒有進一步的問題。我會將電話轉回給羅多尼先生進行最後發言。

Okay. Well, again, well, thank you, everyone, for spending -- spending a little bit of time with us today, and we appreciate your continued interest in the company, and we look forward to kind of reporting to you out in the quarters to come. Thank you all very much.

好的。好吧，再次感謝大家，今天花了一點時間與我們在一起，我們感謝你們對公司的持續興趣，我們期待著在幾個季度向你們匯報來。非常感謝大家。

Thank you, and that does conclude today's presentation. Thank you for your participation, and you may now disconnect.

謝謝大家，今天的演講到此結束。感謝您的參與，您現在可以斷開連接。