SEMrush Holdings Inc (SEMR) 2023 Q2 法說會逐字稿

Good morning, and welcome to Semrush Holdings Second Quarter 2023 Earnings Call. (Operator Instructions) I would now like to turn the call over to Brinlea Johnson with the Blueshirt Group. Please go ahead.

早上好，歡迎參加 Semrush Holdings 2023 年第二季度財報電話會議。 （操作員說明）我現在想將電話轉給 Blueshirt Group 的 Brinlea Johnson。請繼續。

Good morning, and welcome to Semrush Holdings Second Quarter 2023 Conference Call. We'll be discussing the results announced in our press release issued after market close on Thursday, August 3rd. With me on the call today is our CEO, Oleg Shchegolev; our President, Eugene Levin; and our CFO, Brian Mulroy.

早上好，歡迎參加 Semrush Holdings 2023 年第二季度電話會議。我們將討論 8 月 3 日星期四收盤後發布的新聞稿中公佈的結果。今天與我一起參加電話會議的是我們的首席執行官 Oleg Shchegolev；我們的總裁尤金·萊文；以及我們的首席財務官布萊恩·馬爾羅伊 (Brian Mulroy)。

Today's call will contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning our expected future business and financial performance and financial condition, expected growth, adoption and demand for our existing and any new products and features, our App Center expansion, industry and market trends, our competitive position, market opportunities, sales and marketing activities, our leadership position, the sufficiency of our staffing levels, our guidance for the third quarter of 2023 and the full year 2023 and statements about future operating results, including margin improvement, revenue growth and profitability.

今天的電話會議將包含根據 1995 年《私人證券訴訟改革法案》的安全港條款做出的前瞻性聲明。前瞻性聲明包括但不限於有關我們預期的未來業務和財務業績的聲明，以及財務狀況、預期增長、對我們現有產品和任何新產品和功能的採用和需求、我們的應用程序中心擴展、行業和市場趨勢、我們的競爭地位、市場機會、銷售和營銷活動、我們的領導地位、我們的人員配備充足程度水平、我們對 2023 年第三季度和 2023 年全年的指導以及有關未來經營業績的聲明，包括利潤率改善、收入增長和盈利能力。

Forward-looking statements are statements other than statements of fact and can be identified by words such as expect, can, anticipate, intend, plan, believe, seek or will. These statements reflect our views as of today only and should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements.

前瞻性陳述是事實陳述以外的陳述，可以通過預期、能夠、預期、打算、計劃、相信、尋求或意願等詞語來識別。這些聲明僅反映我們今天的觀點，不應被視為代表我們在任何後續日期的觀點，並且我們不承擔更新這些聲明的任何責任。

Forward-looking statements address matters that are subject to risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. For a discussion of the risks and important factors that could affect our actual results, please refer to our most recent quarterly reports on Form 10-Q and our annual report on Form 10-K filed with the Securities and Exchange Commission as well as our other filings with the SEC.

前瞻性陳述所涉及的事項存在風險和不確定性，可能導致實際結果與這些前瞻性陳述存在重大差異。有關可能影響我們實際結果的風險和重要因素的討論，請參閱我們向美國證券交易委員會提交的最新 10-Q 表格季度報告和 10-K 表格年度報告以及我們的其他報告。向 SEC 提交的文件。

Also, during the course of today's call, we refer to certain non-GAAP financial measures. There is a reconciliation schedule showing the GAAP versus non-GAAP results currently available in our press release issued yesterday after market close, which can be found at investors.semrush.com.

此外，在今天的電話會議中，我們提到了某些非公認會計準則財務指標。我們昨天收盤後發布的新聞稿中有一份顯示 GAAP 與非 GAAP 結果的核對錶，可在 Investors.semrush.com 上找到。

And with that, let me turn the call over to Oleg.

接下來，讓我把電話轉給奧列格。

Thank you, and good morning to everyone on the call. Our team performed well during the second quarter with revenue of $74.7 million, up 19% year-over-year. Importantly, we shifted to strong profitability, generating non-GAAP net income of $3.5 million. Our strong performance this quarter has positioned us to raise our overall full year guidance.

謝謝您，祝所有參加電話會議的人早上好。我們的團隊在第二季度表現出色，收入為 7470 萬美元，同比增長 19%。重要的是，我們轉向了強勁的盈利能力，產生了 350 萬美元的非 GAAP 淨利潤。本季度的強勁表現使我們能夠提高全年總體指導。

We are raising our full year revenue guidance as we continue to benefit from our expanded portfolio. We are also raising our full year non-GAAP net income guidance as we continue to drive towards sustained profitability. We have returned to our routes and have a healthy business, focused on growth and profitability.

隨著我們繼續受益於擴大的投資組合，我們正在提高全年收入指導。隨著我們繼續努力實現持續盈利，我們還提高了全年非公認會計原則淨利潤指引。我們已恢復航線並擁有健康的業務，專注於增長和盈利能力。

Our impressive results are a testament to the value we provide to our customers and our strategic position. Before talking about the quarter in more detail, I want to take a few moments to talk about why we are excited about the future for Semrush.

我們令人印象深刻的業績證明了我們為客戶提供的價值和我們的戰略地位。在更詳細地討論本季度之前，我想花一些時間談談為什麼我們對 Semrush 的未來感到興奮。

Over the last 12 years, we have heavily invested in a unique combination of data assets and products to build a new category of software that helps customers improve their online visibility across all major channels, such as search engine optimization, search engine advertising, social media marketing, digital PR, content marketing and Amazon marketing. This forms the basis of our platform. And while we see point product competitors, we believe Semrush has become the platform of choice for businesses of all sizes across all industries, all other reports.

在過去的 12 年裡，我們對數據資產和產品的獨特組合進行了大量投資，以構建新的軟件類別，幫助客戶提高所有主要渠道的在線知名度，例如搜索引擎優化、搜索引擎廣告、社交媒體營銷、數字公關、內容營銷和亞馬遜營銷。這構成了我們平台的基礎。儘管我們看到了點產品競爭對手，但我們相信 Semrush 已成為所有行業、各種規模的企業的首選平台（所有其他報告）。

We spent all market segments from solopreneurs [possibly] up to global agencies and Fortune 100 accounts. Our platform encompassed numerous separate tools and provides our customers with one-stop shopping for all the marketing technologies. We are very differentiated in the market. We collect data from multiple different sources to build complete online visibility profiles of virtually every domain on the Internet.

我們涉足了從個體企業家（可能）到全球機構和財富 100 強客戶的所有細分市場。我們的平台包含許多獨立的工具，為我們的客戶提供所有營銷技術的一站式購物。我們在市場上非常有差異化。我們從多個不同來源收集數據，以構建互聯網上幾乎每個域的完整在線可見性配置文件。

We will use this data to understand what specific market tactics are best suited for each of our customers in each geography in which way it operates.. Using this unique data assets, we give our customers actionable insights and the steps that we need to take to improve the online visibility.

我們將使用這些數據來了解哪些特定的市場策略最適合我們每個客戶在每個地區的運營方式。利用這些獨特的數據資產，我們為客戶提供可操作的見解以及我們需要採取的步驟提高網上知名度。

Once these steps are taken, we monitor the outcomes and help our customers report on the ROI of the marketing efforts. We are uniquely positioned to help our clients in ways that ours cannot. We're 2 main differentiators, first, our strong data assets; and second, industry dynamics.

採取這些步驟後，我們會監控結果並幫助客戶報告營銷工作的投資回報率。我們擁有獨特的優勢，能夠以我們無法提供的方式幫助客戶。我們有兩個主要優勢，首先是我們強大的數據資產；二是行業動態。

Let's take each of them separately. On the topic of our unique data assets, the data in the Semrush system is what we have collected ourselves, some of which is extremely difficult to do. It's a unique combination of "historical data" we have collected our customers in combination with data from several other locations across the Internet, and new data that being fed into our algorithms that generates this highly accurate data set with predictive capabilities.

讓我們分別來看一下它們。說到我們獨特的數據資產，Semrush系統中的數據是我們自己收集的，其中一些數據是極其困難的。這是我們收集的客戶“歷史數據”與來自互聯網上其他幾個位置的數據的獨特組合，以及輸入到我們的算法中的新數據，該算法生成具有預測功能的高度準確的數據集。

This created a network effect. Since then our customers share their data with us, it makes our audits stronger and even more projective. So this is something that would be very difficult for any of our competitors to replicate. From an industry dynamics perspective, with big tech giants with huge data assets terrifically come to mind when you think about companies with a lot of R&D, data and reach.

這創造了網絡效應。從那時起，我們的客戶與我們分享他們的數據，這使得我們的審計更加有力，更具預測性。因此，這是我們的任何競爭對手都很難復制的。從行業動態的角度來看，當你想到擁有大量研發、數據和影響力的公司時，你會想到擁有大量數據資產的大型科技巨頭。

However, these companies make money primarily from advertising. So we believe tools are designed to get back clients to optimize their paid advertising on their platform. Because of this, it is not in the best interest to give their clients unbiased advice on optimal use of their marketing efforts, particularly if the best ROI comes from organic efforts or on a platform other than their own. Semrush on the other hand, provides unbiased advice to it's customers and the highest expected ROI marketing activities across all platforms and is able to provide it's customers with information how their computers are doing. Something we believe the tech giants are unlikely to do because it would negatively affect their economics of the core advertising business.

然而，這些公司主要通過廣告賺錢。因此，我們相信工具的設計是為了讓客戶重新優化他們平台上的付費廣告。因此，為客戶提供有關營銷工作最佳利用的公正建議並不符合最佳利益，特別是如果最佳投資回報率來自有機努力或非他們自己的平台。另一方面，Semrush 為其客戶提供公正的建議以及跨所有平台的最高預期投資回報率的營銷活動，並且能夠向客戶提供其計算機運行情況的信息。我們認為科技巨頭不太可能這樣做，因為這會對他們的核心廣告業務的經濟產生負面影響。

Before I conclude, I want to take a moment to highlight a couple of recent changes to our Board of Directors. Starting yesterday, Anna Baird, who has been on the Board since March assumed to the role of the Audit Committee Chairperson. Anna has impressed me from day 1 and has more than 30 years of experience working with Silicon Valley companies to scale teams and enable growth.

在結束之前，我想花點時間強調一下我們董事會最近的一些變化。從昨天開始，自 3 月份起一直擔任董事會成員的安娜·貝爾德 (Anna Baird) 擔任審計委員會主席。 Anna 從第一天起就給我留下了深刻的印象，她擁有 30 多年與硅谷公司合作擴大團隊和促進增長的經驗。

I'm also pleased to announce that Mark Vranesh who has been on our Board since 2019 and chaired as an adviser 2 years prior, has been appointed Chairperson of the Board effective yesterday. Mark is an accomplished CFO and adviser with broad financial and tech experience. He is passionate about building strong teams and partnerships with employees, business partners and shareholders, driving new and innovative business models and organizing businesses for rapid scaling and global expansion.

我還很高興地宣布，自 2019 年起加入我們董事會並於 2 年前擔任顧問主席的 Mark Vranesh 已被任命為董事會主席，於昨天生效。馬克是一位卓有成就的首席財務官和顧問，擁有豐富的財務和技術經驗。他熱衷於與員工、業務合作夥伴和股東建立強大的團隊和合作夥伴關係，推動新的創新業務模式，並組織業務快速擴展和全球擴張。

This transition is a result of my desire to focus more on the day-to-day management of the company as our Chief Executive Officer. Mark, very excited to have your guidance and financial expertise to help drive our strategy of balancing revenue growth with focus on profitability. We're excited about where we see it today and what the future holds for Semrush.

這一轉變是我希望作為首席執行官更多地關注公司的日常管理的結果。馬克，非常高興能得到您的指導和財務專業知識，幫助推動我們平衡收入增長和關注盈利能力的戰略。我們對今天所看到的情況以及 Semrush 的未來感到興奮。

I will now turn the call over to Eugene and Brian to discuss the results of our quarter in more details.

我現在將把電話轉給尤金和布萊恩，更詳細地討論我們季度的業績。

Thank you, Oleg. We delivered a strong quarter and are focused on 3 main pillars of growth and making progress on each front. First, growing number of users. We have over 104,000 same customers with our core platform and we have a long runway of adoption ahead of us.

謝謝你，奧列格。我們實現了強勁的季度業績，重點關註三大增長支柱並在各個方面取得進展。首先，用戶數量不斷增長。我們的核心平台擁有超過 104,000 名相同的客戶，而且我們還有很長的路要走。

In Q2, we achieved solid net new customer additions and registrations with a more efficient sales and market engine. Second, we're having continued success cross-selling to our existing base through products and applications. Our diverse customer base and extensive digital marketing platform features numerous products, tools and add-ons that enable us to cater to a wide range of customer needs across the digital marketing landscape.

在第二季度，我們通過更高效的銷售和市場引擎實現了穩定的淨新客戶增加和註冊。其次，我們通過產品和應用程序不斷成功地向現有基礎進行交叉銷售。我們多元化的客戶群和廣泛的數字營銷平台擁有眾多產品、工具和附加組件，使我們能夠滿足整個數字營銷領域的廣泛客戶需求。

We will continue to execute on our strategy to leverage our brand and strong customer loyalty to cross-sell and upsell into our base and grow our average ARR per customer. We have over 950,000 free users and are exploring ways to monetize this asset, which we believe presents significant long-term upside for the business.

我們將繼續執行我們的戰略，利用我們的品牌和強大的客戶忠誠度，對我們的基礎進行交叉銷售和追加銷售，並提高每個客戶的平均 ARR。我們擁有超過 950,000 名免費用戶，並且正在探索將該資產貨幣化的方法，我們相信這將為業務帶來顯著的長期優勢。

Third, we continue to develop new products, including many with AI capability and to build out the App Center, which will bring more complementary apps from third-party developers into our base. We often get the question of what generative AI is to our business, and I would love to spend a few moments explaining how generative AI presents new opportunities for us.

第三，我們繼續開發新產品，包括許多具有人工智能功能的產品，並建立應用程序中心，這將把更多第三方開發者的互補應用程序引入我們的基地。我們經常被問到生成式人工智能對我們的業務意味著什麼，我很樂意花一些時間解釋生成式人工智能如何為我們帶來新的機遇。

As complexity increases, it will be important for customers to find where they gain traffic. This is where Semrush shows exceptional value. Ad technology drives a lot of utility and new marketing channels to our customers. We are aggressively adapting our products to incorporate new sources of data and improve functionality with a particular focus on AI capabilities.

隨著複雜性的增加，客戶找到獲得流量的位置變得非常重要。這就是 Semrush 展現出非凡價值的地方。廣告技術為我們的客戶帶來了許多實用性和新的營銷渠道。我們正在積極調整我們的產品，以納入新的數據源並改進功能，特別關注人工智能功能。

The traction we are seeing right now is very encouraging, especially in terms of usage. So far, over 700,000 users have used our generative AI-powered products. In fact, I'm super excited about generative AI. We are pioneers and have had AI-powered features for a long time. Initially, we positioned them as products for upmarket for more sophisticated users, but now we are implementing AI in many of our products across the board.

我們現在看到的吸引力非常令人鼓舞，特別是在使用方面。到目前為止，已有超過 700,000 名用戶使用了我們的生成式人工智能產品。事實上，我對生成式人工智能感到非常興奮。我們是先驅者，長期以來一直擁有人工智能支持的功能。最初，我們將它們定位為面向更複雜用戶的高端產品，但現在我們在許多產品中全面實施人工智能。

For example, we have a product called Writing Assistant for people who need to scale content production, which makes it easy for everyone to generate content. We also recently launched the generative AI local product with a reply to review feature. Now our customers who want to reply to review can do that more timely and can efficiently communicate their message.

例如，我們有一個名為“寫作助手”的產品，適合那些需要擴展內容生產的人，這使得每個人都可以輕鬆生成內容。我們最近還推出了具有回複評論功能的生成式人工智能本地產品。現在，想要回複評論的客戶可以更及時地回複評論，並可以有效地傳達他們的信息。

We are very pleased with the results that show a 42% growth in the number of posted replies in a matter of weeks after launch. Average reply time has reduced dramatically, and the percentage of unanswered reviews is now close to 0. That, of course, drives a better customer engagement, better review scores and importantly, more business.

我們對結果感到非常滿意，發布後幾週內發布的回複數量增長了 42%。平均回复時間大幅縮短，未回複評論的百分比現在接近於 0。當然，這會帶來更好的客戶參與度、更好的評論評分，更重要的是，會帶來更多業務。

In summary, I'm very pleased with our customer growth, success cross-selling, build-out of App Center and launch of new products, including solutions that merge AI with data capabilities. I will now turn the call over to Brian, who will provide a more detailed discussion of our financial performance and guidance. Go ahead, Brian.

總之，我對我們的客戶增長、交叉銷售的成功、應用中心的擴建以及新產品的推出（包括將人工智能與數據功能相融合的解決方案）感到非常滿意。我現在將把電話轉給布萊恩，他將更詳細地討論我們的財務業績和指導。繼續吧，布萊恩。

Thanks, Eugene. I'm 90 days into my tenure, and I could not be more excited about what I have seen so far. The team we have in place and what the future holds for all of our stakeholders. We have a high-margin SaaS software business with a recurring subscription revenue stream.

謝謝，尤金。我上任已經 90 天了，我對迄今為止所看到的一切感到非常興奮。我們現有的團隊以及所有利益相關者的未來。我們擁有高利潤的 SaaS 軟件業務和經常性訂閱收入流。

I'm impressed by the value that our customers get from our portfolio of products. The combination of our algorithm and unique data set is unmatched in the market. I've seen the value firsthand, not only in the customer success stories that witness, but in how we use our tools internally to help grow our own business. The strong ROI of our products gives me great confidence in both my view of our strategic positioning and our financial outlook.

我們的客戶從我們的產品組合中獲得的價值給我留下了深刻的印象。我們的算法和獨特數據集的結合在市場上是無與倫比的。我親眼目睹了其價值，不僅在見證的客戶成功故事中，而且在我們如何在內部使用我們的工具來幫助發展我們自己的業務。我們產品的強勁投資回報率讓我對我們的戰略定位和財務前景充滿信心。

Now turning to our second quarter results. We had a very strong quarter across the board. We continue to execute on our revenue growth pillars and maintain the disciplined and balanced approach to improving efficiency and profitability while also continuing to invest in future growth opportunities that we expect will drive long-term value and growth.

現在轉向我們的第二季度業績。我們的季度表現非常強勁。我們繼續執行我們的收入增長支柱，並保持嚴格和平衡的方法來提高效率和盈利能力，同時繼續投資於我們預計將推動長期價值和增長的未來增長機會。

Our Q2 revenue was $74.7 million, up 19% from a year ago. Growth was driven by a very strong new customer additions and continued growth in our average revenue per customer. Our dollar-based net revenue retention for the second quarter was 112%. We continue to expect our net revenue retention to remain strong as we increase adoptions of our full portfolio of products, tools and add-ons within our installed base.

我們第二季度的收入為 7470 萬美元，比去年同期增長 19%。增長是由非常強勁的新客戶增加和每個客戶平均收入的持續增長推動的。我們第二季度以美元計算的淨收入保留率為 112%。我們繼續預計，隨著我們在安裝基礎上增加對完整產品組合、工具和附加組件的採用，我們的淨收入保留將保持強勁。

Annual recurring revenue surpassed $300 million, growing 20% to $302.4 million year-over-year. We reported significant improvement in our operating margin, which was up approximately 1,000 basis points year-over-year and 1,200 basis points sequentially. The significant improvement is a result of a number of factors.

年經常性收入超過 3 億美元，同比增長 20% 至 3.024 億美元。我們的營業利潤率顯著改善，同比增長約 1,000 個基點，環比增長約 1,200 個基點。這一顯著改善是多種因素共同作用的結果。

First, we reported significant improvement in gross margin, which was up 275 basis points year-over-year to 82.6%. Gross margin benefited from higher revenue and our continued ability to gain scale and leverage from our platform. We continue to expect gross margin above 80% in the near term. Second, we continue to execute on our commitment to drive efficiencies, carefully managing expenses and drive towards sustained profitability. One example of this is in marketing, where we made the strategic decision to slow pay spend and prioritize organic and brand spend, which is delivering impressive results. We saw strong demand for our products across new subscribers, growing our total paid subscriber base by 14% while also lowering our customer acquisition costs.

首先，我們報告毛利率顯著改善，同比增長 275 個基點至 82.6%。毛利率得益於更高的收入以及我們持續通過平台獲得規模和槓桿作用的能力。我們繼續預計近期毛利率將超過 80%。其次，我們繼續履行提高效率、謹慎管理費用和實現持續盈利的承諾。這方面的一個例子是在營銷方面，我們做出了戰略決策，放慢薪酬支出並優先考慮有機和品牌支出，這帶來了令人印象深刻的結果。我們看到新用戶對我們產品的強勁需求，使我們的付費用戶總數增長了 14%，同時也降低了客戶獲取成本。

Across the company, we continue to carefully manage expenses and plan to maintain our current headcount for the near term. We believe we are sufficiently staffed to execute on our growth strategy, deliver on our strategic priorities and manage the operations of our business. Within that context, our Q2 operating income also benefited from the timing of some expenses that we originally expected during the second quarter that we now expect will happen in the second half of 2023.

在整個公司範圍內，我們繼續謹慎管理開支，併計劃在短期內維持現有員工人數。我們相信，我們有足夠的人員來執行我們的增長戰略，實現我們的戰略重點並管理我們的業務運營。在此背景下，我們第二季度的營業收入還受益於我們最初預計在第二季度發生的一些費用的時間安排，現在我們預計這些費用將在 2023 年下半年發生。

Moving down the income statement. Non-GAAP net income was positive $3.5 million, surpassing the high end of our guidance range. The outperformance of our non-GAAP net income relative to our guidance was the result of the flow-through of our operating income performance, along with better-than-expected interest income and the timing of an accounting-related tax provision that we now expect to take place in the second half of the year instead of Q2.

將損益表向下移動。非 GAAP 淨利潤為正 350 萬美元，超過了我們指導範圍的上限。我們的非公認會計準則淨利潤相對於我們的指導的表現優於我們的指導，是我們的營業收入表現、好於預期的利息收入以及我們現在預期的會計相關稅收撥備的時機的結果將於下半年而不是第二季度進行。

Turning to the balance sheet. We ended the quarter with cash and cash equivalents and short-term investments of $223.8 million down from $232.3 million in the previous quarter. Our cash flow from operations in the second quarter was negative $6.3 million. Our positive non-GAAP net income was offset by temporary movements in some of our working capital accounts.

轉向資產負債表。截至本季度末，我們的現金和現金等價物以及短期投資為 2.238 億美元，低於上一季度的 2.323 億美元。第二季度我們的運營現金流為負 630 萬美元。我們的非公認會計原則淨收入為正值，但被部分營運資金賬戶的臨時變動所抵消。

Going forward and on a yearly basis, we generally expect cash flow from operations to align closely toward non-GAAP net income, but this may fluctuate from quarter-to-quarter. Looking at the second half of the year, I'm confident in the underlying trends in the business and capabilities of our team that continue on the path to deliver strong growth and profitability, and we are therefore raising our guidance accordingly. We expect revenue growth to reaccelerate with our expanding product portfolio and because we are starting to face a more favorable year-over-year comparison.

展望未來，我們通常預計運營現金流將與非公認會計準則淨利潤密切相關，但這可能會因季度而異。展望今年下半年，我對我們團隊的業務和能力的基本趨勢充滿信心，這些趨勢將繼續實現強勁的增長和盈利能力，因此我們相應提高了我們的指導。我們預計收入增長將隨著我們不斷擴大的產品組合而重新加速，因為我們開始面臨更有利的同比比較。

For the third quarter, we expect revenue in the range of $78 million to $79 million, up approximately 19% year-over-year at the midpoint. We expect third quarter non-GAAP net income of $3 million to $4 million. For the full year, we are raising our prior revenue guidance of $306 million to $309 million, up to $307 million to $309 million, which would represent growth at the midpoint of approximately 21% year-over-year.

我們預計第三季度的收入在 7800 萬美元至 7900 萬美元之間，同比中值增長約 19%。我們預計第三季度非 GAAP 淨利潤為 300 萬至 400 萬美元。對於全年，我們將之前的收入指引從 3.06 億美元上調至 3.09 億美元，上調至 3.07 億美元至 3.09 億美元，這意味著同比增長約為 21% 的中值。

We are also raising our non-GAAP net income expectations to $2 million to $4 million for the full year 2023. This increase takes into account the strong operating profit we delivered in the second quarter but also reflects a few offsetting factors.

我們還將 2023 年全年的非 GAAP 淨利潤預期提高至 200 萬至 400 萬美元。這一增長考慮到了我們在第二季度實現的強勁營業利潤，但也反映了一些抵消因素。

First, the shift in the timing of our accounting-related tax provision that I mentioned a moment ago; second, the timing of some expenses we had originally planned in the second quarter, but now expect will occur in the second half of the year. And finally, the increase to our assumed Euro exchange rate from our prior guidance of 1.06 to now 1.10. As a reminder, approximately 30% of our expenses are denominated in Euros.

首先，我剛才提到的與會計相關的稅收規定的時間變化；第二，一些支出的時間我們原本計劃在第二季度發生，但現在預計會在下半年發生。最後，我們假設的歐元匯率從之前的指導值 1.06 增加到現在的 1.10。請注意，我們大約 30% 的開支以歐元計價。

In closing, we are confident in our ability to grow and scale our business and my enthusiasm for what lies ahead has only grown stronger since I started. We remain committed to a disciplined and balanced approach to spending, which will drive improved efficiency and profitability even while we invest in future growth opportunities that we expect will drive long-term value and growth to our shareholders.

最後，我們對發展和擴大業務的能力充滿信心，而且自從我開始工作以來，我對未來的熱情只會越來越強烈。我們仍然致力於採取嚴格和平衡的支出方式，這將提高效率和盈利能力，同時我們投資於未來的增長機會，我們預計這些機會將為股東帶來長期價值和增長。

With that, we are happy to take any of your questions. Operator, please open up the line for questions.

因此，我們很樂意回答您的任何問題。接線員，請開通提問線路。

(Operator Instructions) Our first question comes from Michael Turits with KeyBanc.

（操作員說明）我們的第一個問題來自 KeyBanc 的 Michael Turits。

Two questions, 1 financial, 1 at a high level. Very pleased to see some of the thought process around gen AI. Where are we in terms of where we think that search will evolve with capabilities being augmented by chat and how you'll adapt to that? I think that we've seen you adapt in many ways, a search has changed to things like snippets in the past. Be curious about how you feel that your capabilities and value add will offer -- will adapt and add more value as we adapt with chat as well.

兩個問題，1 個財務問題，1 個高層問題。很高興看到圍繞人工智能時代的一些思考過程。我們認為搜索將隨著聊天功能的增強而發展，您將如何適應這一點？我認為我們已經看到您在很多方面進行了適應，搜索已經變成了過去的片段之類的東西。好奇你覺得你的能力和附加值將如何提供——隨著我們對聊天的適應，你會適應並增加更多的價值。

And then the second is just on ARR, which, again, was a little bit below the Street here, but you're raising the revenue guide for the year. So just doing those 2 things up for me.

第二個是 ARR，同樣，它比這裡的街道低一點，但你提高了今年的收入指南。所以只為我做這兩件事。

Mike, so I always enjoy our conversations about generative AI. And in private, I usually can speculate a little bit more on those calls. But what we're seeing now is really Google haven't released their version to general public yet. We are, of course, seeing some interesting things in closed beta.

邁克，所以我一直很喜歡我們關於生成人工智能的對話。私下里，我通常可以對這些電話進行更多推測。但我們現在看到的是，谷歌還沒有向公眾發布他們的版本。當然，我們在內測中看到了一些有趣的事情。

My conclusion right now is that directionally, for a lot of queries, there is not that much improvement or maybe even detriment in user experience. For example, it takes quite a while to generate an answer. Google always was trying to optimize speed of response. So for many queries right now with the state of technology they present, the user experience is actually not that great.

我現在的結論是，從方向上來說，對於很多查詢來說，用戶體驗並沒有太大的改善，甚至可能會受到損害。例如，生成答案需要相當長的時間。谷歌一直在努力優化響應速度。因此，對於目前的許多查詢及其所呈現的技術狀態來說，用戶體驗實際上並不是那麼好。

For some queries, there is definitely improvement. Those are usually queries that are multi-model, like complex questions where there is no single answer. Let's put it this way. There is no single piece of content that is a perfect answer for the question. Like, for example, if you're looking for a perfect dress to go to a particular restaurant in a particular place, during particular season and you incorporate all this information in the question, for those things generative AI does provide user experience improvement.

對於某些查詢，肯定有改進。這些通常是多模型的查詢，例如沒有單一答案的複雜問題。讓我們這樣說吧。沒有任何內容可以完美回答該問題。例如，如果您正在尋找一件完美的衣服去特定地點、特定季節的特定餐廳，並且您將所有這些信息納入問題中，對於這些事情，生成式人工智能確實可以改善用戶體驗。

So that's what we are seeing now. I think directionally, that's probably if they release it where they're going to go. It will be default for some questions, but not default for other questions, depending on the type of query. And then for us, what it means is really we've always been building our platform to be expandable and to be able to add additional served features.

這就是我們現在所看到的。我認為從方向上來說，這可能是他們將其發佈到他們要去的地方。對於某些問題，它將是默認的，但對於其他問題，則不是默認的，具體取決於查詢的類型。對於我們來說，這實際上意味著我們一直在構建可擴展的平台並能夠添加額外的服務功能。

Google have been adding multiple of those features every year. So adding this modular approach to how we do our competitive intelligence products for search engine marketing was key. So for us, it's really just adding additional search element to track and analyze. I don't think anything really changes materially for our customers.

谷歌每年都會添加多項這樣的功能。因此，將這種模塊化方法添加到我們如何製作用於搜索引擎營銷的競爭情報產品中是關鍵。所以對我們來說，實際上只是添加額外的搜索元素來跟踪和分析。我不認為對我們的客戶來說有什麼真正的實質性改變。

Of course, there is a debate around click out, but based on what we are seeing, for example, from being, they drive tons of traffic outside of Bing to even websites like Wikipedia, and we think that's really the best example of how chat experience could perform in terms of outbound traffic from search engines.

當然，關於點擊退出存在爭議，但根據我們所看到的情況，例如，它們將 Bing 之外的大量流量帶到了維基百科等網站，我們認為這確實是聊天方式的最佳示例體驗可以在搜索引擎的出站流量方面發揮作用。

And that financial question, I think Brian will take it.

至於財務問題，我想布萊恩會回答。

Michael, thanks for the question. Just a couple of comments on ARR. We had a really strong quarter. So we grew 20%, that's the result of our strong capabilities to execute across our growth pillars. And that 20% was a little bit ahead of our revenue growth. So we're confident in our ability to reaccelerate revenue in the second half. So we're -- what was the specific question just around ARR, it was lower than your expectation?

邁克爾，謝謝你的提問。只是對 ARR 的一些評論。我們度過了一個非常強勁的季度。所以我們增長了 20%，這是我們執行增長支柱的強大能力的結果。這 20% 略高於我們的收入增長。因此，我們對下半年重新加速收入增長的能力充滿信心。所以我們——關於 ARR 的具體問題是什麼？它低於您的預期？

It's a little bit below the street, right? And also, again, to add another metric to that, just again, what -- where do you see the trajectory on NRR going given where we are in both ARR and revenue?

它在街道下面一點，對吧？另外，再次添加另一個指標，考慮到我們在 ARR 和收入方面的情況，您認為 NRR 的軌跡在哪裡？

Yes. So again, ARR was really strong, growing 20%, and then our expectation in the second half is that we'll continue to reaccelerate that. And of course, that will drive a reacceleration in revenue as well. And then on NRR, I'm glad you asked that, NRR is a really important metric for us, measures our success for a key growth pillar for us.

是的。再說一次，ARR 非常強勁，增長了 20%，我們預計下半年我們將繼續加速這一增長。當然，這也將推動收入重新加速。關於 NRR，我很高興您問到，NRR 對我們來說是一個非常重要的指標，衡量我們作為關鍵增長支柱的成功程度。

So we're not only focused on expanding our customer base and continuing to drive adoption, we're also looking to cross-sell and upsell into our loyal customer base. And our NRR does remain strong. It's well above 100%. We're pleased to see that it's strong, and we're continuing to be successful in building out and expanding the footprint within our loyal customer base.

因此，我們不僅專注於擴大客戶群並繼續推動採用，我們還希望通過交叉銷售和追加銷售來吸引我們的忠實客戶群。我們的 NRR 確實保持強勁。遠高於 100%。我們很高興看到它的強大，並且我們正在繼續成功地建立和擴大我們忠實客戶群的足跡。

But you're right, if NRR has been ticking back down a bit, and there's a couple of things I'd give some color on. First, there's some macro factors influencing that metric. So while it's been strong in some periods, we've had record new customer adds and demand for our products.

但你是對的，如果 NRR 有所回落，那麼我會對一些事情進行一些說明。首先，有一些宏觀因素影響該指標。因此，儘管在某些時期表現強勁，但我們的新客戶數量和對我們產品的需求都創下了紀錄。

We've also had a slight uptick in churn and the churn is a function of the current macro environment as our customer's tighten budgets and look to optimize their spend. But the good thing for us is we see a significant portion of our customers' return. And as the macro improves, we'll expect that trend to continue. So historically, we've seen 30% of our customers return to us in a short period of time.

我們的客戶流失率也略有上升，而客戶流失率是當前宏觀環境的一個函數，因為我們的客戶收緊預算並尋求優化他們的支出。但對我們來說，好處是我們看到了很大一部分客戶的退貨。隨著宏觀經濟的改善，我們預計這種趨勢將持續下去。從歷史上看，我們看到 30% 的客戶在短時間內返回我們。

And I think as the macro environment improves, we'll actually see that uptick. At the same time, we're also encouraged by our ability to expand adoption across our full portfolio. So we have been successful in cross-selling and upselling and doing that at a rate that's been increasing beyond levels we saw in 2022. So NRR continues to remain strong. It's a very important metric for us. We expect it will continue to be meaningfully above 100%. And as I said earlier, ARR and revenue will reaccelerate in the second half, and I think we'll see NRR follow closely behind that.

我認為隨著宏觀環境的改善，我們實際上會看到這種上升。與此同時，我們也對我們在整個產品組合中擴大採用的能力感到鼓舞。因此，我們在交叉銷售和追加銷售方面取得了成功，並且其增長速度超出了 2022 年的水平。因此，NRR 繼續保持強勁。這對我們來說是一個非常重要的指標。我們預計該比率將繼續顯著高於 100%。正如我之前所說，ARR 和收入將在下半年重新加速，我認為我們將看到 NRR 緊隨其後。

Your next question is from Parker Lane with Stifel.

您的下一個問題來自 Parker Lane 和 Stifel。

Brian, I just wanted to pick up on that last point you were talking about on churn. Are you seeing more reductions or customers outright leaving the platform as part of the budget optimization efforts that you talked about there?

Brian，我只是想談談您談到的關於客戶流失的最後一點。作為您在那裡談論的預算優化工作的一部分，您是否看到更多的削減或客戶徹底離開平台？

No, I think -- thanks for the question. I think it's a little different. So for us, churn is a little different. We don't see situations where customers are leaving our platform, what we see in times of tightening macroeconomic factors is they're just pausing their subscription. So we have a group of -- a cohort of users that are seasonal users. They use our platform on and off over a period of time.

不，我想——謝謝你的提問。我認為有點不同。所以對我們來說，客戶流失有點不同。我們沒有看到客戶離開我們平台的情況，在宏觀經濟因素收緊的時期我們看到的是他們只是暫停訂閱。所以我們有一群季節性用戶。他們在一段時間內斷斷續續地使用我們的平台。

And I think in times of the current macro environment, they may pause those subscriptions for a bit longer. So -- but we're confident they'll come back. As I mentioned before, in times of normal economic circumstances, we see 30% of our customers return, and we think that we're confident that number will be much higher once the current macro headwinds start to abate.

我認為在當前的宏觀環境下，他們可能會暫停這些訂閱一段時間。所以——但我們相信他們會回來。正如我之前提到的，在正常經濟情況下，我們看到 30% 的客戶回歸，我們相信，一旦當前的宏觀不利因素開始減弱，這個數字將會更高。

Got it. Understood. And then, Brian, maybe sticking with you. Looking at the website, you've clearly done a lot of work to get these apps and their built out. A lot of really interesting tools there with a variety of free plans and different monetization efforts there. Where are we as far as the contribution of App Center? And as you look at the growth algorithm going into '24, '25, how much can that actually contribute and lift the growth outlook here?

知道了。明白了。然後，布萊恩，也許會繼續和你在一起。查看該網站，您顯然已經做了很多工作來獲取這些應用程序及其構建。那裡有很多非常有趣的工具，有各種免費計劃和不同的貨幣化努力。 App Center 的貢獻到什麼程度了？當你觀察 24 世紀 25 世紀的增長算法時，它實際上能貢獻多少並提升這裡的增長前景？

Parker, this is Eugene. So we're very happy with the growth we are experiencing, both in terms of demand and supply. That said, I think it's still early. So right now, the status, I would say, is very high growth at a relatively small scale. The whole business is $300 million ARR, App Center was introduced only in 2021 as an experiment. We are very bullish on it, but I think it's very early to start breaking it out as a separate line of revenue.

帕克，這是尤金。因此，我們對需求和供應方面的增長感到非常滿意。也就是說，我認為現在還為時過早。所以我想說，目前的狀況是在相對較小的規模下實現非常高的增長。整個業務的 ARR 為 3 億美元，App Center 僅在 2021 年作為實驗推出。我們非常看好它，但我認為現在開始將其作為一個單獨的收入線來劃分還為時過早。

Your next question is from Adam Hotchkiss with Goldman Sachs.

您的下一個問題來自高盛的 Adam Hotchkiss。

Great. When you think about your top of funnel, how proactive are you seeing companies be in terms of getting ahead of some of these Gen AI uncertainties that exist. Just would be curious to the extent your customer conversations have changed at all? I'm wondering if you think these uncertainties in the market provide an opportunity for you guys to push free-to-pay conversion or some of your modules that are helpful to folks?

偉大的。當你考慮你的漏斗頂部時，你會發現公司在應對人工智能時代存在的一些不確定性方面有多積極主動。只是想知道您的客戶對話在多大程度上發生了變化？我想知道您是否認為市場上的這些不確定性為你們提供了推動免費到付費轉換的機會，或者你們的一些模塊對人們有幫助？

I think, surprisingly, from customers, we're not hearing that much about uncertainties. A lot of them focus on opportunities that generative AI provides. For example, tons of people across our user base now scaling content to the extent -- the content production to the extent they have never done it before. That's, I think, one of the bigger trends. We're seeing a lot of people, let's say, using less freelance writers and using more in-house editors, again, to scale content production.

我認為，令人驚訝的是，我們並沒有從客戶那裡聽到太多有關不確定性的信息。他們中的許多人都關註生成式人工智能提供的機會。例如，我們用戶群中的大量人員現在將內容擴展至他們以前從未做過的程度——內容製作的程度。我認為這是更大的趨勢之一。我們看到很多人再次減少使用自由撰稿人並使用更多的內部編輯來擴大內容製作規模。

I think that's been a big narrative across our user base. We had only a couple clients on the agency side whose businesses have been disrupted. But I would say I can count those examples using fingers only, one of my hands. So I would say actually, I think, by now, a lot of people figured out what AI can do and how it can improve their lives and how it cannot.

我認為這是我們用戶群中的一個重要話題。我們的代理機構只有幾個客戶，他們的業務受到了乾擾。但我想說，我可以僅用手指（我的一隻手）來數出這些例子。所以我想說，實際上，我認為，到目前為止，很多人已經弄清楚人工智能可以做什麼，以及它如何能夠改善他們的生活，以及它如何不能改善他們的生活。

Of course, their expectation that technology will keep improving. Of course, the expectation is that vendors will keep adding more features, more functionality. And everything we do is to satisfy this demand from our customers. But in terms of uncertainty, I think maybe there have been a little bit of this, what's going on Spirit in February. We don't see that now. I think by now, most of people figured out where this thing is going.

當然，他們期望技術不斷進步。當然，我們期望供應商能夠不斷添加更多特性、更多功能。我們所做的一切都是為了滿足客戶的這種需求。但就不確定性而言，我認為可能有一些這樣的事情，比如二月份發生的事情。我們現在看不到這一點。我想到現在為止，大多數人都知道這件事的去向了。

Okay. Great. That's really helpful. And then, Brian, it would be just great to get a download of your view of the current cost structure. I think came in better in the quarter, raised the guide there. But when you look at -- you took a step back as CFO, where do you see the most opportunity to create efficiencies from here without sacrificing growth?

好的。偉大的。這真的很有幫助。然後，Brian，如果能下載您對當前成本結構的看法，那就太好了。我認為本季度表現更好，因此提高了指南。但是，當您作為首席財務官退後一步時，您認為在不犧牲增長的情況下提高效率的最佳機會在哪裡？

That's a good question. Yes. We were actually really pleased with the results this quarter. We did exceed our guidance range and then raised our non-GAAP net income expectation for the year. And that's a function of -- we've been saying this. And of course, we've been committed to being disciplined and balanced in our approach to spending.

這是個好問題。是的。事實上，我們對本季度的結果非常滿意。我們確實超出了我們的指導範圍，然後提高了我們今年的非公認會計準則淨利潤預期。這是我們一直在說的一個功能。當然，我們一直致力於在支出方式上保持紀律和平衡。

But in general, we have a really high-margin recurring revenue business and a lot of ability to scale that business going forward and drive increased profitability. So we'll continue to say that our commitment is to drive towards profitability and positive free cash flow. But at the same time, we'll continue to invest in growth opportunities that drive long-term value.

但總的來說，我們擁有真正高利潤的經常性收入業務，並且有能力擴展該業務並提高盈利能力。因此，我們將繼續表示，我們的承諾是推動盈利和正自由現金流。但與此同時，我們將繼續投資於推動長期價值的增長機會。

And our ability to drive that profitability and sustain it, it's coming from a couple of different things. I think everyone has seen, we have really strong gross margins. They're above 80%, and we expect that we'll be able to continue to gain scale and leverage from that as we advance forward here.

我們推動並維持盈利能力的能力來自於幾個不同的因素。我想每個人都看到了，我們的毛利率非常高。它們超過了 80%，我們預計，隨著我們向前推進，我們將能夠繼續擴大規模和影響力。

We have a really unique data set and platform with the ability to scale and we continue to expect that low 80% gross margin to persist into the future here. And then on the operating expense side, as you know, we've continued to optimize our marketing spend. There's 2 things just to step back a bit on marketing. Last year, we really invest in a lot in our organic brand and content, and we're really benefiting from that this year and able to improve our customer acquisition costs.

我們擁有真正獨特的數據集和平台，具有擴展能力，我們仍然預計 80% 的低毛利率將持續到未來。然後在運營費用方面，如您所知，我們繼續優化我們的營銷支出。在營銷方面，有兩件事值得退後一步。去年，我們在有機品牌和內容上投入了大量資金，今年我們確實從中受益，並且能夠提高客戶獲取成本。

And we'll continue to look for efficiencies and scale our marketing and sales engines. And then R&D, we'll continue to invest, but we'll try to maintain our expense to revenue ratio about where it is. I think the areas where we have the most opportunity is in G&A. We're just about 2 years post IPO.

我們將繼續尋求效率並擴大我們的營銷和銷售引擎。然後是研發，我們將繼續投資，但我們將盡力維持費用與收入的比率。我認為我們機會最多的領域是 G&A。 IPO 後僅兩年左右。

We've been investing a lot in our infrastructure to make sure we can grow and scale our business and be efficient for the broader organization. And we'll really be looking at optimizing that. So I think you'll see G&A come down not only on an expense or revenue basis, but also on an absolute dollar as we start to realize some of the investments that we've been making in the last couple of years.

我們在基礎設施方面投入了大量資金，以確保我們能夠發展和擴展我們的業務，並為更廣泛的組織提供高效的服務。我們真的會考慮優化它。因此，我認為，當我們開始意識到過去幾年我們所做的一些投資時，您會看到 G＆A 不僅在費用或收入的基礎上下降，而且在絕對美元上也下降。

Your next question comes from Elizabeth Porter with Morgan Stanley.

您的下一個問題來自摩根士丹利的伊麗莎白·波特。

I wanted to ask on the strong customer adds. They've been consistent with about the run rate that you saw in the last 2 years during 2Q. I know you guys are doing a lot around marketing and churn should come back. So how should we think about the run rate of new adds? And does it follow a similar arc that you saw over the last 2 years? Or could it actually be a little bit better given some of the improvements you guys are making?

我想詢問一下強大的客戶添加情況。它們與您在過去兩年第二季度看到的運行率一致。我知道你們在營銷方面做了很多工作，流失率應該會回來。那麼我們應該如何考慮新添加的運行率呢？它是否遵循您在過去兩年中看到的類似弧線？或者考慮到你們所做的一些改進，它實際上可能會更好一點嗎？

Thank you, Elizabeth. This is Oleg. Look, first of all, last quarter, it was (inaudible) new customers and I would say this quarter, we are also very satisfied before we delivered in new customer adds. And as Brian already said, we invested lots in experiments last year in paid marketing experiments and organic experiments and so on. And right now, we found how to deliver our marketing more efficient. I think we have bigger focus on delivering the same pace of net customer addition. And I see a lot of opportunities in our marketing related to organic sales.

謝謝你，伊麗莎白。這是奧列格。看，首先，上個季度，這是（聽不清）新客戶，我想說這個季度，我們在交付新客戶之前也非常滿意。正如布萊恩已經說過的，我們去年在付費營銷實驗和有機實驗等方面投入了大量資金。現在，我們找到瞭如何更有效地進行營銷。我認為我們更注重以同樣的速度實現淨客戶增加。我在我們的營銷中看到了很多與有機銷售相關的機會。

Great. And then just as a follow-up, I wanted to hit on the expansion of the product portfolio. And how should we think about the growth algorithm into next year between the existing customer expansion and ability to attract new customers?

偉大的。然後，作為後續行動，我想擴大產品組合。我們應該如何考慮明年現有客戶擴張和吸引新客戶能力之間的增長算法？

Thank you. So of course, not guiding next year yet. But in general, our #1 priority is always to keep scaling user base as fast as possible. We think there is a huge runway left, and that's #1 priority. At the same time, we invest in a lot of resources into product portfolio expansion and upmarket products in existing areas where we already have dominant market position, such as search engine optimization, for example.

謝謝。當然，明年還沒有指導。但總的來說，我們的第一要務始終是盡可能快地擴大用戶群。我們認為還剩下一條巨大的跑道，這是第一要務。與此同時，我們在我們已經佔據市場主導地位的現有領域（例如搜索引擎優化）投入了大量資源來擴展產品組合和高端產品。

So next year, again, not guiding anything, but directionally, I would like to see more growth driven by user base growth. And then the remaining growth driven by expansion and upsell, cross-sell into user base.

因此，明年，我希望看到更多的增長是由用戶群增長推動的，不是任何指導，而是方向性的。然後，剩餘的增長是由擴張和追加銷售、交叉銷售進入用戶群驅動的。

Your next question comes from Scott Berg with Needham.

你的下一個問題來自尼達姆的斯科特·伯格。

I wanted to start off on your confidence on reacceleration of revenue growth. Looks like in the fourth quarter and likely into early next year, I know Brian mentioned it, I think Eugene kind of touched on it a little bit. I guess what really gives you the confidence there? I haven't heard any kind of clarification specifically, Brian, you mentioned easier comps, but it looks like it's more than just easy comps. So any color there would be helpful.

我想首先了解你們對收入重新加速增長的信心。看起來在第四季度，可能到明年初，我知道布萊恩提到過它，我認為尤金有點觸及它。我想是什麼真正給了你信心？我還沒有聽到任何具體的澄清，布萊恩，你提到了更簡單的比賽，但看起來它不僅僅是簡單的比賽。所以任何顏色都會有幫助。

Yes. Sure. Scott, thanks for the question. There's a couple of things driving that. I think first and foremost, as you mentioned, we do have easier compares to the second half of '22. So the macro environment really started to impact results starting in the second half of last year. So those are baked into the second half. And now we've got sort of comparable dynamics occurring in the third quarter and fourth quarter relative to last year.

是的。當然。斯科特，謝謝你的提問。有幾個因素推動了這一點。我認為首先也是最重要的，正如您提到的，與 22 年下半年相比，我們確實有更輕鬆的情況。因此，宏觀環境從去年下半年開始真正開始影響業績。所以這些都被放到了下半場。現在，與去年相比，我們在第三季度和第四季度出現了類似的動態。

The other part of it, though, is just building on what Elizabeth was asking about. We're continuing to invest and grow our portfolio and then continuing to gain traction on some of the products that we've launched over the last few years. So just to name a few, we just -- we're monetizing our social media platform.

然而，它的另一部分只是建立在伊麗莎白所問的問題之上。我們將繼續投資和擴大我們的產品組合，然後繼續在過去幾年推出的一些產品上獲得吸引力。僅舉幾例，我們只是——我們正在通過我們的社交媒體平台貨幣化。

We've got a number of free users that are on that, and we're launching a monetized version of it and expecting that to contribute to growth. We're launching our enterprise product in the second half. And then we're just continuing to gain traction with the App Center, our digital PR and our intelligence offerings as they start to advance and cross-sell and just gain new customers across those platforms.

我們已經擁有許多免費用戶，我們正在推出它的貨幣化版本，並希望這能夠促進增長。我們將在下半年推出企業產品。然後，我們將繼續通過應用程序中心、我們的數字公關和情報產品獲得吸引力，因為它們開始推進和交叉銷售，並在這些平台上贏得新客戶。

Great. Super helpful. And then when I was in there over the summer, I know you demoed some of your new AI functionality. I felt it was probably the most practical use case of Gen AI that I've seen in some of the companies I covered so far, which is great to see. But how do you think about kind of pricing and monetization of that? Do you -- as you get into this further, is it going to be more about additional modules that customers can buy? Or will the pricing be maybe just in some higher tiers and those customers might have to move up tiers to use it?

偉大的。超級有幫助。然後當我夏天在那裡的時候，我知道你們演示了一些新的人工智能功能。我覺得這可能是我迄今為止在我所報導的一些公司中看到的最實際的 Gen AI 用例，這很高興看到。但您如何看待其定價和貨幣化？當您進一步討論這個問題時，您是否會更多地關注客戶可以購買的附加模塊？或者定價可能只是在某些較高級別，而這些客戶可能必須升級才能使用它？

So first of all, thank you for very kind words, and we keep improving the product. So by now, they look even better and used even more frequently by our customers. I would say it will depend on a functionality. So some features where it's customary to charge money. We will charge money as well.

首先，感謝您的善意之言，我們會不斷改進產品。所以現在，它們看起來更好，我們的客戶使用得更頻繁。我想說這將取決於功能。所以有些功能習慣上是收費的。我們也會收錢。

For example, our content writing tools, right in the system, ContentShake all of them are monetized separately. Of course, generative AI is not the only value proposition for those products, but it's a big chunk of value proposition. So in those tools, you could say that we are monetizing generative AI features somewhat directly. There are also going to be a lot of products where generative AI is complementary and big part of value proposition, but not something we would charge separately for.

比如我們的內容寫作工具，就在系統裡，ContentShake，它們都是單獨變現的。當然，生成式人工智能並不是這些產品的唯一價值主張，但它是價值主張的很大一部分。因此，在這些工具中，您可以說我們在某種程度上直接將生成式人工智能功能貨幣化。還會有很多產品，生成人工智能是互補的，是價值主張的重要組成部分，但我們不會單獨收費。

The good example is implementation in local listings product, where we have a generative AI powered to apply to review feature, extremely popular, has great traction even though we launched it just less than 2 months ago, to be honest. So in those cases, we expect the additional generative AI will increase adoption, will increase conversion, expansion, but we're not monetizing just generative AI features separately from the rest of the offering.

一個很好的例子是在本地列表產品中的實施，我們有一個生成式人工智能，可以應用於評論功能，非常受歡迎，說實話，儘管我們在不到兩個月前推出它，但它仍然具有很大的吸引力。因此，在這些情況下，我們預計額外的生成式人工智能將提高采用率，增加轉化率和擴展，但我們不會將生成式人工智能功能與其他產品分開來貨幣化。

So in those cases, we know there is value. We can measure it directionally, but we wouldn't be able to assign dollar value specifically to generative AI. So I think if I had to assess, I would say 60 -- maybe 70% of implementations are going to be like local listings where generative AI is complementary and 30%, 40% is going to be more of a direct monetization.

因此，在這些情況下，我們知道這是有價值的。我們可以定向衡量它，但我們無法將美元價值專門分配給生成式人工智能。因此，我認為如果我必須進行評估，我會說60% - 也許70% 的實施將類似於本地列表，其中生成式人工智能是互補的，而30%、40% 將更多地是直接貨幣化。

Especially I'm bullish on direct monetization when it comes to App Center, where people create kind of more single-use products. A really good example is our generative AI-powered social media feature that creates content for different social networks. So this is a single purpose application primarily generate AI-powered, monetized separately. So in that center, I think, is a great opportunity to provide more of this direct AI monetization apps.

我特別看好應用中心的直接貨幣化，人們可以在其中創建更多一次性產品。一個很好的例子是我們的生成式人工智能社交媒體功能，它可以為不同的社交網絡創建內容。因此，這是一個單一用途的應用程序，主要生成人工智能驅動的、單獨貨幣化的應用程序。因此，我認為該中心是提供更多直接人工智能貨幣化應用程序的絕佳機會。

Your next question comes from Mark Murphy with JPMorgan.

您的下一個問題來自摩根大通的馬克·墨菲。

This is Arti on for Mark Murphy. Congrats on the quarter. First, just in terms of (inaudible) on the customer behavior, anything to call out with divergences across the geographies on that front?

我是馬克·墨菲的阿蒂。恭喜本季度。首先，就客戶行為（聽不清）而言，在這方面各地區存在哪些差異？

Mark, no, I don't think so. We have -- as we've always mentioned, we have a very well-diversified customer base that we're in 150 countries. We span across all industries and market segments. Oleg mentioned in his remarks, expanding from solopreneurs all they have the global agencies and Fortune 100 accounts.

馬克，不，我不這麼認為。正如我們一直提到的，我們擁有遍布 150 個國家/地區的非常多元化的客戶群。我們跨越所有行業和細分市場。奧列格在講話中提到，從個體企業家擴展到他們擁有的全球機構和財富100強賬戶。

I don't think it was -- I did mention before that we do have some seasonal users. So core users that are subscribing and unsubscribing based on project schedules and potential client flow. So if there's any cohort of users where we're seeing anything that's unique just because of the macro environment, I'd say it's there. But I don't think there's any specific pockets geographically or across any industries that's really jumping out and behaving any differently than others.

我不認為是——我之前確實提到過，我們確實有一些季節性用戶。因此，核心用戶根據項目時間表和潛在客戶流量進行訂閱和取消訂閱。因此，如果有任何一群用戶因為宏觀環境而看到任何獨特的東西，我會說它就在那裡。但我認為，在地理上或任何行業中，沒有任何特定的領域真正脫穎而出，並且表現得與其他領域有任何不同。

Yes. The only thing I would add is last year, we were saying that Europe is impacted much more by macro than United States. So now I would say, compared to really bad year for Europe in 2022, this year seems much better. So that's maybe one thing that I would highlight, like Europe shows certain improvement, but it's an improvement versus sort of bottom that they've reached last year.

是的。我唯一要補充的是，去年，我們說歐洲受到宏觀經濟的影響比美國大得多。所以現在我想說，與 2022 年歐洲非常糟糕的一年相比，今年似乎好多了。所以這也許是我要強調的一件事，就像歐洲顯示出一定的進步一樣，但這是相對於去年觸底的進步。

Got it. Very helpful. And then turning back to generative AI and just AI generally. It seems like you guys are having good traction. But are there any kind of pain points or areas where you see some hesitancy from -- is there something holding back customers from adopting the new technologies? And kind of how are you guys thinking about those type of situations?

知道了。很有幫助。然後回到生成式人工智能，以及一般意義上的人工智能。看來你們的牽引力很好。但是，是否存在任何令人猶豫的痛點或領域——是否有什麼因素阻礙客戶採用新技術？你們如何看待這類情況？

I think the only part that not necessarily holding back, but I think ChatGPT was such a good experience that people had really high expectations, but in reality, there are a lot of limitations. There are a lot of things that AI still cannot do or things where you have to orchestrate AI quite a lot.

我認為唯一不一定會阻礙的部分，但我認為 ChatGPT 是一次很好的體驗，人們對此抱有很高的期望，但實際上，存在很多限制。有很多事情是人工智能仍然無法做到的，或者是你必須大量協調人工智能的事情。

So I think that's maybe the only thing where people would like to do more, but it's not necessarily feasible with the current state of technology, even though I'm not going to argue that technology is not impressive. It's super impressive, super helpful for many tasks. But I think people -- after ChatGPT, people had some expectations that were kind of from science fiction novels. And technology is not there yet unfortunate. It's phenomenal technology. And like I said, we're applying it everywhere we can everywhere it works.

所以我認為這可能是人們唯一願意做更多的事情，但就目前的技術水平而言，這不一定可行，儘管我不會說技術並不令人印象深刻。它非常令人印象深刻，對許多任務都非常有幫助。但我認為，在 ChatGPT 之後，人們有了一些來自科幻小說的期望。不幸的是，技術還不存在。這是非凡的技術。就像我說的，我們正在盡可能地將它應用到任何它有效的地方。

But I think that's the only barrier for adoption right now. There are certain things that you just cannot do yet. For example, if you go to ChatGPT and you ask ChatGPT to generate marketing plan for your business, will give you a very generic checklist of action items, and this checklist will be more or less the same for almost every business.

但我認為這是目前採用的唯一障礙。有些事情你還不能做。例如，如果您訪問 ChatGPT，並要求 ChatGPT 為您的企業生成營銷計劃，則會為您提供一個非常通用的行動項目清單，並且該清單對於幾乎每個企業來說或多或少都是相同的。

And it's very hard to train it to give you kind of more actionable real checklist because ChatGPT doesn't know anything about your business specifically, your competitors. It actually doesn't even know what is marketing. So you have to teach all those things to get a use of technology. And I think that's where sometimes people expect one thing, but they don't necessarily get it. And that's, I think, the only real barrier for adoption right now.

而且很難訓練它為您提供更具可操作性的真實清單，因為 ChatGPT 對您的業務（特別是您的競爭對手）一無所知。它其實根本不知道什麼是營銷。所以你必須教所有這些東西才能使用技術。我認為這就是有時人們期望一件事，但他們不一定能得到的地方。我認為，這是目前採用的唯一真正障礙。

And super sorry, one more thing. On the enterprise side, of course, there are other considerations like legal restrictions and so on. But our user base primarily SMB so. For SMB, I think the only barrier is -- it has to work, and it has to work in line with their expectations. .

非常抱歉，還有一件事。在企業方面，當然還有其他的考慮，比如法律限制等等。但我們的用戶群主要是SMB所以。對於中小型企業來說，我認為唯一的障礙是——它必須有效，而且必須符合他們的期望。 。

Your next question comes from Brent Thill with Jefferies.

您的下一個問題來自 Jefferies 的布倫特·希爾 (Brent Thill)。

This is James on for Brent. Just on sales and marketing, could you just talk about the reasons for the decrease in marketing spend? Is it just due to lack of returns? Or is it just a tougher macro tape and you've decided to pull back? And how are you thinking about marketing spend for the rest of the year? Should we expect it to be down? Or do you expect to grow from here? I appreciate the help.

這是詹姆斯替補布倫特。就銷售和營銷而言，您能談談營銷支出減少的原因嗎？僅僅是因為沒有回報嗎？或者這只是一個更艱難的宏觀磁帶，而你決定撤回？您如何看待今年剩餘時間的營銷支出？我們應該預期它會下跌嗎？或者你期望從這裡成長？我很感激你的幫助。

Look, last year, in first quarter, we experimented with paid marketing and organic marketing a lot. And I agree in first quarter as we found some ways how we can optimize it because of current environment -- because of current setup of paid channels and so on.

看，去年第一季度，我們大量嘗試了付費營銷和有機營銷。我同意第一季度的觀點，因為我們找到了一些方法來優化它，因為當前的環境——因為當前的付費頻道設置等等。

And we started to implement this structure in the beginning of second quarter. And right now, we see results. And as you see from our results, we optimized marketing spend and at the same time, we delivered strong results. And for the rest of the year, Brian?

我們在第二季度初開始實施這種結構。現在，我們看到了結果。正如您從我們的結果中看到的那樣，我們優化了營銷支出，同時我們交付了強勁的業績。那麼今年剩下的時間呢，布萊恩？

Yes. The other thing just to build on to is last year, we were investing heavily in our organic online presence. So we are developing content and channels to reach new customers. That yield results for a really long time, and we're making that investment last year and using our own products to do that, and that's exactly what we promote for our customers. So we're convinced our products are providing returns that yield more cost-effective, sustainable and trustworthy organic results for a longer period of time.

是的。另一件值得借鑒的事情是去年，我們大力投資於我們的有機在線業務。因此，我們正在開發內容和渠道來接觸新客戶。這會在很長一段時間內產生效果，我們去年進行了這項投資，並使用我們自己的產品來做到這一點，而這正是我們為客戶所推廣的。因此，我們確信我們的產品能夠提供回報，在較長時間內產生更具成本效益、可持續且值得信賴的有機結果。

We made those investments last year, and we're now getting the benefit from it. So at this point, just based on what Oleg mentioned and the second part around the organic investments, we're expecting our marketing spend basically maintain where it is now.

我們去年進行了這些投資，現在我們正在從中受益。因此，在這一點上，僅根據奧列格提到的內容以及圍繞有機投資的第二部分，我們預計我們的營銷支出基本保持在現在的水平。

So we'll continue to maintain it on an absolute dollar basis. And then as revenue grows, we'll see some slight increases in our expense to revenue ratio from a marketing perspective.

因此，我們將繼續以絕對美元為基礎來維持它。然後，隨著收入的增長，從營銷角度來看，我們的費用與收入比率會略有增加。

Okay. That's helpful. And then just 1 follow-up quickly on the dollar-based net retention rate. Is it fair to say that that's more just due to macro and some customers pausing or slowing down? Or is there anything else that's causing that slight drop in dollar-based retention?

好的。這很有幫助。然後，僅對基於美元的淨保留率進行 1 次快速跟進。可以公平地說，這更多地是由於宏觀因素和一些客戶暫停或放慢速度造成的嗎？或者還有其他什麼因素導致以美元計的留存率略有下降嗎？

First of all, I want to remind everyone that we should think about structure of our churn a little bit different. It's not the same like other companies when our customers leave the company and our software and not returning back later. And on our side, customers leave, and will come back later. Historically, we see a significant flow of customers who will return to us later back to (inaudible).

首先，我想提醒大家，我們應該考慮一下我們的流失結構有點不同。當我們的客戶離開公司和我們的軟件並且以後不再回來時，這與其他公司不同。而我們這邊，顧客離開後又會回來。從歷史上看，我們看到大量客戶稍後會返回我們（聽不清）。

Yes. I think that's exactly it. It's interesting as we've heard on other calls that certain companies are seeing a decrease in demand or an extension of their sales cycle. So NRR, of course, is a function of both your ability to retain and an upsell and cross-sell within your base.

是的。我想就是這樣。有趣的是，我們在其他電話中聽到某些公司的需求減少或銷售週期延長。當然，NRR 取決於您的保留能力以及在您的基礎中的追加銷售和交叉銷售能力。

For us, we're actually seeing really good strong demand. So we had record net new adds last quarter, and we also had record expansion within our existing installed base and it continues to be strong in the second quarter, and we're expecting that to continue to grow and build in the second half. So the upsell, cross-sell component of NRR is really strong. As Oleg and I mentioned though, the 1 dynamic, which, of course, is macro is just the increase in seasonal users.

對於我們來說，我們實際上看到了非常強勁的需求。因此，上個季度我們的淨新增數量創下了紀錄，我們現有安裝基礎的擴張也創下了紀錄，並且在第二季度繼續強勁，我們預計下半年將繼續增長和建設。因此，NRR 的追加銷售和交叉銷售成分非常強大。正如奧列格和我提到的，第一大動態（當然是宏觀的）只是季節性用戶的增加。

But we're confident they'll come back as soon as these macro headwinds start to abate and we start to get a macro tailwinds. Our expectation, as we've seen historically is they'll come back and increase their usage and we'll see that NRR number start to tick back up again.

但我們相信，一旦這些宏觀不利因素開始減弱並且我們開始獲得宏觀有利因素，它們就會捲土重來。正如我們在歷史上看到的那樣，我們的期望是他們會回來並增加其使用量，我們會看到 NRR 數字開始再次回升。

There are no further questions at this time. With that, I will turn the call back to the management team for closing remarks.

目前沒有其他問題。在此之後，我會將電話轉回給管理團隊進行總結髮言。

Thanks, everyone, for your questions. Look, in closing, I want to say, look, we delivered a strong first half of 2023. And we believe we are very well positioned to continue our growth ability and with strong profitability there. Look, we have a high margin. It is a SaaS software business with recurring subscription revenue stream. And by the way, today, we celebrate 15 years since we started Semrush. And I want to say thank you to our customers, our device, our investors and our friends. Thank you for your support, and we look forward to giving you updates on our progress. Thanks, everyone.

謝謝大家的提問。最後，我想說，我們在 2023 年上半年取得了強勁的業績。我們相信，我們處於非常有利的位置，可以繼續保持我們的增長能力，並擁有強勁的盈利能力。看，我們的利潤率很高。這是一家具有經常性訂閱收入來源的 SaaS 軟件業務。順便說一句，今天我們慶祝 Semrush 成立 15 週年。我想對我們的客戶、我們的設備、我們的投資者和我們的朋友表示感謝。感謝您的支持，我們期待向您提供有關我們進展的最新信息。感謝大家。

This will conclude the conference call. Thank you for joining us today. You may now disconnect.

電話會議就此結束。感謝您今天加入我們。您現在可以斷開連接。