Sprout Social Inc (SPT) 2023 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Sprout Social's Second Quarter 2023 Earnings Call.

女士們、先生們，感謝你們的支持，並歡迎參加 Sprout Social 的 2023 年第二季度財報電話會議。

I would now like to turn the call over to Jason Rechel, Vice President, Investor Relations and Corporate Development. Please go ahead.

我現在想將電話轉給投資者關係和企業發展副總裁 Jason Rechel。請繼續。

Thank you, operator. Welcome to Sprout Social's Second Quarter 2023 Earnings Call. We'll be discussing the results announced in our press release issued after the market closed today and have also released an updated investor presentation, which can be found on our website. With me are Sprout Social's CEO, Justyn Howard; CFO, Joe Del Preto; and President, Ryan Barretto.

謝謝你，接線員。歡迎參加 Sprout Social 2023 年第二季度財報電話會議。我們將討論今天收盤後發布的新聞稿中宣布的結果，並發布了更新的投資者演示文稿，您可以在我們的網站上找到該演示文稿。和我在一起的還有 Sprout Social 的首席執行官賈斯汀·霍華德 (Justyn Howard)；首席財務官喬·德爾·普雷托；和總裁瑞安·巴雷托。

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, among others, statements concerning financial, business, and customer trends, our expected future business, financial performance and financial condition, our expectations concerning the benefits of our acquisition of Tagger, performance against our multiyear financial framework, our market size and opportunity, our plans, objectives and expected results from our future operations, growth, products, investment initiatives, pricing partnerships or strategies and our guidance for the third quarter of 2023 and the full year 2023 and can be identified by words such as expect, anticipate, intend, plan, believe, seek, or will. These statements reflect our views as of today only, should not be relied upon as representing our views at any subsequent date, and we do not undertake any duty to update these statements.

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陳述。前瞻性陳述包括有關財務、業務和客戶趨勢、我們的預期未來的陳述等。業務、財務業績和財務狀況、我們對收購Tagger 的收益的期望、我們多年財務框架的業績、我們的市場規模和機會、我們未來運營、增長、產品、投資計劃的計劃、目標和預期結果、定價合作夥伴關係或策略以及我們對2023 年第三季度和2023 年全年的指導，可以通過預期、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. For a discussion of the risks and other important factors that could affect our actual results, please refer to our annual report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission on February 22, 2023, as supplemented by our quarterly report on Form 10-Q for the quarter ended March 31, 2023, filed with the SEC on May 3, 2023, and our quarterly report on Form 10-Q for the quarter ended June 30, 2023, to be filed with the SEC as well as any future quarterly and current reports that we file with the SEC.

前瞻性陳述涉及可能導致實際結果出現重大差異的風險和不確定性問題。有關可能影響我們實際業績的風險和其他重要因素的討論，請參閱我們於 2023 年 2 月 22 日向美國證券交易委員會提交的截至 2022 年 12 月 31 日財年的 10-K 表格年度報告，並補充了我們於2023 年5 月3 日向SEC 提交的截至2023 年3 月31 日的季度的10-Q 表格季度報告，以及截至2023 年6 月30 日的季度的10-Q 表格季度報告，以以及我們向SEC 提交的任何未來季度和當前報告。

During the call, we'll discuss non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. In particular, references to profitability and margins refer to non-GAAP operating margin, non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share. Definitions of these non-GAAP financial measures, along with reconciliations to the most directly comparable GAAP financial measures are included in our earnings press release, which has been furnished to the SEC and is available on our website at investors.sproutsocial.com.

在電話會議期間，我們將討論非公認會計準則財務指標，這些指標不符合公認會計原則。特別是，提及的盈利能力和利潤率是指非 GAAP 營業利潤、非 GAAP 營業收入、非 GAAP 淨利潤和非 GAAP 每股收益。這些非 GAAP 財務指標的定義以及與最直接可比的 GAAP 財務指標的調節均包含在我們的收益新聞稿中，該新聞稿已提供給 SEC，並可在我們的網站 Investors.sproutsocial.com 上獲取。

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

接下來，讓我把電話轉給賈斯汀。賈斯汀？

Thank you, Jason, and good afternoon, everyone. Thank you, as always, for joining us. Late last year, we initiated several strategic changes that we believe are now beginning to materially improve our long-term growth and efficiency and we'll cover more of our progress throughout our discussion this afternoon.

謝謝杰森，大家下午好。一如既往地感謝您加入我們。去年年底，我們發起了幾項戰略變革，我們相信這些變革現在開始實質性地改善我們的長期增長和效率，我們將在今天下午的討論中更多地介紹我們的進展。

Today, I'm also excited to share our entrance into the influencer marketing category, which broadens our reach, expands our market, creates more value for our customers and further differentiates Sprout as we uniquely define our industry.

今天，我也很高興與大家分享我們進入影響者營銷類別，這擴大了我們的影響力，擴大了我們的市場，為我們的客戶創造了更多價值，並進一步使Sprout 脫穎而出，因為我們對我們的行業進行了獨特的定義。

Our product advancements, strategic alignment, and broadening set of capabilities have further established a highly differentiated value proposition for customers and have positioned Sprout at the beginning of an exciting new chapter in our journey as Sprout paces towards our new $1 billion subscription revenue target.

我們的產品進步、戰略調整和不斷擴大的能力進一步為客戶建立了高度差異化的價值主張，並使Sprout 處於我們旅程中令人興奮的新篇章的開始，因為Sprout 正朝著我們新的10 億美元訂閱收入目標邁進。

In Q2, record new business ACVs drove ACV growth to a record 29% year-over-year as our success upmarket continues to progress ahead of plan. We're pleased to see 48% year-over-year growth in customers paying us $50,000 or more in ARR and 130% year-over-year growth in customers paying us 250,000 or more in ARR.

第二季度，隨著我們在高端市場的成功繼續提前計劃取得進展，創紀錄的新業務 ACV 推動 ACV 同比增長達到創紀錄的 29%。我們很高興看到支付我們的 ARR 為 50,000 美元或更多的客戶同比增長 48%，支付我們的 ARR 為 250,000 或更多的客戶同比增長 130%。

Leading indicators like RPO and cRPO, each continue to materially outpace our ARR growth rate. RPO growth of 62% underscores the momentum we are seeing upmarket, and Q2 RPO represented more than 63% of our total ARR, up more than 2,000 basis points over the past 2 years.

RPO 和 cRPO 等領先指標均繼續大幅超過我們的 ARR 增長率。 RPO 增長 62% 突顯了我們在高端市場看到的勢頭，第二季度 RPO 占我們總 ARR 的 63% 以上，在過去 2 年中增長了 2,000 多個基點。

The significantly improving quality of our business was further evident in record non-GAAP operating margins during Q2 and more than 140% growth in cumulative year-to-date free cash flow. While we're seeing everything we want to see from our strategic shift late last year, structural improvements in our business and accelerated momentum upmarket, the unpredictability at the very loan of our business has remained difficult to forecast in Q2.

我們業務質量的顯著改善進一步體現在第二季度創紀錄的非 GAAP 運營利潤率以及年初至今累計自由現金流超過 140% 的增長。雖然我們從去年年底的戰略轉變、業務的結構性改善以及高端市場加速的勢頭中看到了我們想要看到的一切，但我們業務貸款的不可預測性在第二季度仍然難以預測。

Though we view this as a positive trade-off and have deliberately deprioritized and removed resources from this part of our business, we're ultimately committed to high confidence projections. For that reason, we have elected to remove non-core ARR from our plan for the remainder of this year and are modeling to have it cycled out fully heading into 2024.

儘管我們認為這是一種積極的權衡，並故意降低了這部分業務的優先級並刪除了資源，但我們最終還是致力於高可信度的預測。出於這個原因，我們選擇從今年剩餘時間的計劃中刪除非核心 ARR，並正在建模以使其在 2024 年完全循環。

We believe this change provides investors with the greatest visibility into our performance and position Sprout to execute with the level of consistency that you have come to expect from us. Meanwhile, the upside of our strategic shift is becoming even more pronounced. We are beginning to see a structurally positive impact on net dollar retention of our core customers and our enterprise business further accelerated during Q2, yielding the highest new LTV for enterprise compared to all prior quarters.

我們相信，這一變化可以讓投資者最清楚地了解我們的業績，並讓 Sprout 能夠按照您對我們的期望保持一致。與此同時，我們戰略轉變的好處正變得更加明顯。我們開始看到對核心客戶的淨美元保留產生結構性積極影響，並且我們的企業業務在第二季度進一步加速，與之前所有季度相比，企業的新生命週期價值最高。

Enterprise grew nearly 50% year-over-year and represents a record 43% of total ARR. Enterprise new business was up more than 50% year-over-year and total net new ARR from this segment also grew greater than 50% year-over-year.

企業版同比增長近 50%，佔總 ARR 的 43%，創歷史新高。企業新業務同比增長超過 50%，該細分市場的淨新 ARR 總額也同比增長超過 50%。

Multiple factors are contributing to our success and this quarter premium module attach rates were very strong. Total premium module attach rates increased by 160 basis points from Q1 2023, nearly double the uptick we saw on average in 2022.

多種因素促成了我們的成功，本季度優質模塊附加率非常強勁。優質組件總附加率較 2023 年第一季度增加了 160 個基點，幾乎是 2022 年平均增幅的兩倍。

During Q2, we further accelerated our roadmap in social customer care and AI. Our product team has already delivered 16 material care-related releases in 2023, including reply suggestions by AI assist. We've also made structural and organizational changes to rapidly expand our investments in AI and accelerate the work already underway to make AI pervasive across our platform and deliver significant new value to our customers.

第二季度，我們進一步加快了社交客戶關懷和人工智能方面的路線圖。我們的產品團隊在2023年已經發布了16個物資護理相關的版本，其中包括AI輔助的回復建議。我們還進行了結構和組織變革，以快速擴大對人工智能的投資，並加快正在進行的工作，使人工智能在我們的平台上普及，並為我們的客戶帶來重大的新價值。

The emergence of generative AI, enhancements to large language models and new training techniques favor the most skilled product teams and we believe will allow us to outpace anything being done in our space today. Our early momentum in this area, including language detection, AI assist, enhanced sentiment and content detection and filtering lay the foundation for an extensive roadmap of exciting product capabilities to come.

生成式人工智能的出現、大型語言模型的增強和新的培訓技術有利於最熟練的產品團隊，我們相信這將使我們超越當今領域中所做的任何事情。我們在這一領域的早期勢頭，包括語言檢測、人工智能輔助、增強的情緒和內容檢測和過濾，為未來令人興奮的產品功能的廣泛路線圖奠定了基礎。

All of this progress brings me to our most important update today, our announced acquisition of Tagger. Influencer and creator marketing has quickly increased in customer demand given how critical this category has become to a brand's awareness and brand strategy. In fact, we currently see influencer marketing in more than half of our enterprise RFPs.

所有這些進展讓我想到了今天最重要的更新，即我們宣布收購 Tagger。鑑於影響者和創作者營銷對於品牌知名度和品牌戰略的重要性，客戶需求迅速增加。事實上，我們目前在超過一半的企業 RFP 中看到了影響者營銷。

While the demand signal is very strong, brands have up to this point struggled to fully harness its potential because influencer marketing has been siloed with little connection to their core social marketing strategy and no ability to manage discovery approvals, workflow, and reporting. We believe Sprout's brand and scale position us to pull ahead in this market.

儘管需求信號非常強烈，但到目前為止，品牌一直在努力充分發揮其潛力，因為影響者營銷一直是孤立的，與其核心社交營銷策略幾乎沒有聯繫，也無法管理髮現批准、工作流程和報告。我們相信 Sprout 的品牌和規模使我們能夠在這個市場取得領先地位。

For anyone unfamiliar, influencer and creator marketing is today the third leg of the stool for social strategy, and one of the most important and fastest growing. As traditional media and paid advertising continue to be disrupted, influencers, creators, and short form content are beginning to take priority for brands, along with demonstrably higher ROI.

對於任何不熟悉的人來說，影響者和創作者營銷是當今社交策略的第三條腿，也是最重要和增長最快的之一。隨著傳統媒體和付費廣告不斷受到顛覆，影響者、創作者和簡短內容開始成為品牌的優先選擇，投資回報率也明顯提高。

Industry analysts have estimated that nearly 50% of CMOs are growing their spending on influencer marketing in 2023, representing the third fastest area of budget growth. We believe the combination of Tagger and Sprout will allow us to create a market leader in both social media management and influencer marketing.

行業分析師估計，到 2023 年，近 50% 的 CMO 將增加在影響力營銷上的支出，這是預算增長第三快的領域。我們相信 Tagger 和 Sprout 的結合將使我們成為社交媒體管理和影響力營銷領域的市場領導者。

We developed a thesis on this space in 2022 and Tagger very quickly became our target for 3 primary reasons. First, the team is world-class, a smart, innovative, and customer-obsessed group. Second, we found the technology, infrastructure, and products were built with the same emphasis on quality, elegance, approachability, and scale that Sprout focuses on. And third, Tagger's product has been recognized as industry leading by both G2 and the Global Influencer Marketing Awards and has been chosen by iconic brands across the mid-market and enterprise.

我們在 2022 年就這個領域撰寫了一篇論文，Tagger 很快成為我們的目標，原因有 3 個。首先，團隊是世界一流的、聰明的、創新的、以客戶為中心的團隊。其次，我們發現技術、基礎設施和產品的構建與 Sprout 一樣注重質量、優雅、平易近人和規模。第三，Tagger 的產品被 G2 和全球影響者營銷獎評為行業領先，並被中端市場和企業的標誌性品牌所選擇。

Similar to why we brought social listening into Sprout several years ago, we have identified silos that exist today in influencer marketing and an opportunity for Sprout to step in and provide a unified platform for executing a comprehensive social strategy.

與幾年前我們將社交聆聽引入 Sprout 的原因類似，我們發現了當今影響者營銷中存在的孤島，以及 Sprout 介入並提供統一平台來執行全面社交策略的機會。

Together, we'll deliver the next generation of social insights to fuel business strategy, execute end-to-end campaign management, foster authentic customer engagements and deeply understand and measure the full ROI of holistic social investments. We believe our capabilities will further differentiate Sprout in our core market and will make Tagger the category winner in influencer marketing.

我們將共同提供下一代社會洞察，以推動業務戰略、執行端到端活動管理、促進真正的客戶參與，並深入了解和衡量整體社會投資的全部投資回報率。我們相信，我們的能力將進一步使 Sprout 在我們的核心市場中脫穎而出，並使 Tagger 成為影響力營銷領域的贏家。

The combination of our ongoing breakout of market, strengthening partnerships, expanding use cases for our software and an accelerated entrance into the influencer marketing category have Sprout at the starting line of our next great growth chapter. We're excited to outline our path above 1 billion in subscription revenue.

我們不斷突破市場、加強合作夥伴關係、擴大軟件用例以及加速進入影響者營銷類別，這些結合在一起，使 Sprout 站在了我們下一個偉大增長篇章的起跑線上。我們很高興能夠概述我們的訂閱收入超過 10 億美元的道路。

Our strategic changes have positioned us to deliver an even faster pace of margin expansion and free cash flow growth than previously anticipated. And we're excited to share more of our vision and financial future at Investor Day next month. I've never been more energized by our team's momentum and alignment to deliver incredible results and value to our customers, partners, and stakeholders.

我們的戰略變革使我們能夠以比之前預期更快的速度實現利潤率擴張和自由現金流增長。我們很高興能在下個月的投資者日分享更多我們的願景和財務未來。我們團隊的動力和團結為我們的客戶、合作夥伴和利益相關者提供令人難以置信的成果和價值，這讓我從未如此充滿活力。

With that, I'll turn the call over to Ryan.

這樣，我會將電話轉給瑞安。

Thanks, Justyn. The focus and momentum in our core business, combined with the exciting new addition of Tagger have me incredibly excited about the second half of this year in 2024. I'd like to begin with some perspective on several of my most topical conversations with customers and investors this quarter before digging into the opportunity we have to change the game with influencer marketing.

謝謝，賈斯汀。我們核心業務的重點和勢頭，再加上Tagger 的令人興奮的新增功能，讓我對2024 年下半年感到非常興奮。我想首先談談我與客戶和客戶的一些最熱門對話的一些觀點。在本季度的投資者挖掘機會之前，我們必須通過有影響力的營銷來改變遊戲規則。

Research this quarter from the Harris Poll in partnership with Sprout found that social's importance within an organization is only growing. 80% of business leaders anticipate their company's social media budget will increase over the next 3 years. And 44% of leaders expect their social media budget will increase by more than 50%, even in spite of macroeconomic pressures on their total company's budget.

本季度哈里斯民意調查與 Sprout 合作進行的研究發現，社交在組織內的重要性只增不減。 80% 的企業領導者預計他們公司的社交媒體預算將在未來 3 年內增加。儘管公司總預算面臨宏觀經濟壓力，44% 的領導者預計他們的社交媒體預算將增加 50% 以上。

Underlying these trends, business leaders nearly universally agree that social has become the primary channel for customer care, customer retention and customer feedback. Social is where your customers are, and it has become imperative for brands to meet them there.

在這些趨勢的基礎上，企業領導者幾乎普遍認為社交已成為客戶關懷、客戶保留和客戶反饋的主要渠道。社交媒體是您的客戶所在的地方，品牌必須在那裡與他們見面。

We can see this imperative in our partnership with Salesforce, which has accelerated momentum as we further capture the social studio opportunity and align ourselves as a standard social platform for all Salesforce customers. Our product alignment went even deeper this quarter with a native integration into the Salesforce marketing cloud, allowing marketers to personalize their customer's journey based on social data.

我們可以在與 Salesforce 的合作中看到這一點，隨著我們進一步抓住社交工作室的機會並將自己定位為所有 Salesforce 客戶的標準社交平台，這種合作關係加速了發展勢頭。本季度，我們的產品整合更加深入，與 Salesforce 營銷雲進行了原生集成，使營銷人員能夠根據社交數據個性化客戶的旅程。

We onboarded a record 176 logos in Q2, and we continue to expect contributions to grow meaningfully and linearly over the course of 2023, building to a very strong Q4 as the largest and most complex deployments begin to make their migration over to Sprout.

我們在第二季度加入了創紀錄的176 個徽標，我們繼續預計貢獻將在2023 年期間實現有意義的線性增長，隨著最大、最複雜的部署開始遷移到Sprout，第四季度將變得非常強勁。

In total, we grew with an amazing list of customers this quarter, including PACCAR, Cintas, Klaviyo, Irving Oil, Heartland Financial, Jollibee Foods, Cedars-Sinai Medical, Arnott's, Bobcat, Salix Pharmaceuticals and the Federal Deposit Insurance Corporation or FDIC. We also saw and heard some incredible things from our customers this quarter.

總的來說，本季度我們的客戶數量驚人，包括 PACCAR、Cintas、Klaviyo、Irving Oil、Heartland Financial、Jollibee Foods、Cedars-Sinai Medical、Arnott's、Bobcat、Salix Pharmaceuticals 和聯邦存款保險公司 (FDIC)。本季度我們還從客戶那裡看到和聽到了一些令人難以置信的事情。

The FDIC used Sprout listening data as part of congressional testimony on the banking sector in the wake of the SVB collapse. And one of our new enterprise customers shared with us, I'm thrilled by the new AI assist functionality. As far as AI content generators go, this may be the best one I've seen so far.

在 SVB 倒閉後，FDIC 使用 Sprout 監聽數據作為國會對銀行業證詞的一部分。我們的一位新企業客戶與我們分享，我對新的人工智能輔助功能感到非常興奮。就人工智能內容生成器而言，這可能是迄今為止我見過的最好的。

In a recent not-for-profit webinar, I was invited to present at, the host introduced us by saying, as a CMO and marketing leader, I spent over 2 decades buying enterprise software and investing in technology that would help me understand how to grow, and social media engagement was always a top priority.

在最近的一次非盈利網絡研討會上，我受邀出席，主持人向我們介紹說，作為首席營銷官和營銷領導者，我花了20 多年的時間購買企業軟件並投資技術，這些技術將幫助我了解如何增長，社交媒體參與始終是重中之重。

In 2023, time and social media continues to scale, and business leaders are tasked with not only driving engagement, but elevating their constituent experience and support to meet the bar that has been raised by the commercial sector. I've evaluated every tool in the market and Sprout has been my preferred platform for over 10 years.

到 2023 年，時間和社交媒體將繼續擴大規模，商界領袖的任務不僅是推動參與度，還要提升他們的選民經驗和支持，以滿足商業部門提出的標準。我評估了市場上的所有工具，十多年來 Sprout 一直是我的首選平台。

We know from our customer interest to market diligence that the influencer marketing category is converging with social media management. In a recent briefing, an industry analyst shared, if you aren't working with influencers today, you can't really say you have a real social strategy.

從客戶興趣到市場調查中我們知道，影響力營銷類別正在與社交媒體管理融合。在最近的一次簡報中，一位行業分析師表示，如果你今天不與有影響力的人合作，你就不能真正說你有真正的社交策略。

With this as a backdrop, it's been incredibly exciting to get to know the Tagger team and software over the past several months, knowing that we could solve multiple customer pain points together. We knew immediately that Tagger would make for an incredible fit with Sprout. The software is powerful and elegant and the team is hungry to design a category. We believe our depth and scale will allow Tagger's products to innovate and grow at an accelerated pace, and our go-to-market motion is perfectly suited to accelerate Tagger's growth and drive even more customer success.

以此為背景，在過去的幾個月裡了解 Tagger 團隊和軟件是非常令人興奮的，因為我們知道我們可以共同解決多個客戶痛點。我們立刻就知道 Tagger 會與 Sprout 完美契合。該軟件功能強大且優雅，團隊渴望設計一個類別。我們相信，我們的深度和規模將使 Tagger 的產品能夠創新並加速增長，而我們的上市行動非常適合加速 Tagger 的增長並推動更多客戶的成功。

Joe will later share that we've made no cross-selling assumptions and our commitments to you. But influencer is a customer requirement showing up in more than half of our enterprise conversations. Tagger's ACVs are meaningfully above Sprout's and we believe will now have the most comprehensive and competitively differentiated set of solutions in each of our markets.

喬稍後將表示我們沒有做出交叉銷售假設以及我們對您的承諾。但影響者是客戶的需求，出現在我們一半以上的企業對話中。 Tagger 的 ACV 明顯高於 Sprout，我們相信現在將在我們的每個市場中擁有最全面且最具競爭力的差異化解決方案。

We believe the cross-sell opportunity for Tagger's product is massive and orders of magnitude larger than Tagger today. We also believe our new business win rates and ACVs are set to move higher in our core business as we combine forces. It's this combination of factors that has our teams inspired to go big together.

我們相信 Tagger 產品的交叉銷售機會是巨大的，而且比今天的 Tagger 大幾個數量級。我們還相信，隨著我們的力量整合，我們的新業務獲勝率和 ACV 將在我們的核心業務中進一步提高。正是這些因素的結合激勵我們的團隊共同努力。

Our alignment around the most sophisticated tiers of our market has our teams motivated for the future with Tagger poised as a new strategic catalyst that we expect will deliver significant value for our customers. We've executed a similar playbook before when our acquisition of Simply Measured accelerated our value proposition and our momentum in social listening and advanced analytics, which are now foundational to our success.

我們圍繞市場最複雜的層次進行調整，這讓我們的團隊對未來充滿動力，Tagger 有望成為新的戰略催化劑，我們預計它將為我們的客戶帶來巨大的價值。之前，當我們收購 SimplyMeasured 時，我們也執行過類似的策略，加速了我們的價值主張以及我們在社交聆聽和高級分析方面的勢頭，而這些現在是我們成功的基礎。

We've long shared that we aspire to be the best place to be an employee and the best place to be a customer. After receiving multiple product awards from G2 and others last quarter, I was incredibly excited that this quarter, Sprout was recognized by Great Place to Work as the best place to work in Chicago and as the best place to work for millennials. Our commitment to our core values and our people continue to make Sprout an exciting career destination on our journey past our $1 billion revenue target.

我們長期以來一直表示，我們渴望成為成為員工和客戶的最佳場所。在上個季度獲得 G2 和其他公司頒發的多個產品獎項後，我感到非常興奮的是，本季度 Sprout 被 Great Place to Work 評為芝加哥最佳工作場所和千禧一代的最佳工作場所。我們對核心價值觀和員工的承諾將繼續使 Sprout 成為我們實現 10 億美元收入目標的過程中令人興奮的職業目的地。

And with that, I'll turn it over to Joe to run through the financials. Joe?

有了這個，我會把它交給喬來處理財務狀況。喬？

Thanks, Ryan. I'll now walk you through our second quarter results in detail before moving on to guidance for the third quarter and full year 2023.

謝謝，瑞安。現在，我將向您詳細介紹我們的第二季度業績，然後再介紹第三季度和 2023 年全年的指導。

Revenue for the second quarter was $79.3 million, representing 29% year-over-year growth. Subscription revenue was $78.7 million, up 30% year-over-year. Services revenue was $0.6 million, down more than 10% year-over-year. Core ARR from existing customers spending greater than $2,000 in ARR with 33% now represents 96% of our total ARR. Total ARR exiting Q2 with $326.1 million, up 27% year-over-year.

第二季度收入為 7930 萬美元，同比增長 29%。訂閱收入為 7870 萬美元，同比增長 30%。服務收入為 60 萬美元，同比下降超過 10%。支出超過 2,000 美元的現有客戶的核心 ARR 佔 33%，目前占我們總 ARR 的 96%。第二季度的總 ARR 為 3.261 億美元，同比增長 27%。

The number of customers contributing more than $10,000 in ARR grew 27% from a year ago. The number of customers contributing more than $50,000 in ARR grew 48% from a year ago. And the number of customers contributing more than $250,000 in ARR grew more than 130% from a year ago. Q2 ACV growth was 29% year-over-year, again, accelerated from Q1 2023.

ARR 貢獻超過 10,000 美元的客戶數量比一年前增長了 27%。 ARR 貢獻超過 50,000 美元的客戶數量比一年前增長了 48%。 ARR 貢獻超過 25 萬美元的客戶數量比一年前增長了 130% 以上。第二季度 ACV 同比增長 29%，較 2023 年第一季度再次加速。

Record new business deal sizes, the exit from a number of low-value logos, and ongoing execution on our pricing changes each compounded healthy, underlying seat expansion and premium module attach rates. We continue to expect that ACV growth will further accelerate through Q3, but now expect faster than previously expected ACV growth over the medium term.

創紀錄的新業務交易規模、一些低價值徽標的退出以及我們定價變化的持續執行，每一個都複合了健康的基礎席位擴張和高級模塊附加率。我們繼續預計 ACV 增長將在第三季度進一步加速，但現在預計 ACV 在中期的增長速度將快於之前的預期。

In Q2, non-GAAP gross profit was $61.9 million, representing non-GAAP gross margin of 78.1%. This is up 150 basis points compared to a non-GAAP gross margin of 76.6% a year ago. Non-GAAP sales and marketing expenses for Q2 were $32.1 million or 40% of revenue, consistent with 40% a year ago. We were fortunate to hire well throughout the quarter.

第二季度，非 GAAP 毛利潤為 6190 萬美元，非 GAAP 毛利率為 78.1%。與一年前 76.6% 的非 GAAP 毛利率相比，上升了 150 個基點。第二季度非 GAAP 銷售和營銷費用為 3210 萬美元，佔收入的 40%，與一年前的 40% 一致。我們很幸運在整個季度都招聘得很好。

Non-GAAP research and development expenses for Q2 were $14.6 million or 18% of revenue, down from 20% a year ago. We continue to make transformative R&D investments, particularly around platform AI and automation and social customer care.

第二季度非 GAAP 研發費用為 1,460 萬美元，佔收入的 18%，低於一年前的 20%。我們繼續進行變革性研發投資，特別是在平台人工智能、自動化和社交客戶服務方面。

Non-GAAP general and administrative expenses for Q2 were $13.3 million or 17% of revenue, down from 20% a year ago. We expect to deliver consistent G&A leverage as a percentage of revenue moving forward. Non-GAAP operating income for Q2 was $1.9 million for a positive and quarterly record 2.4% non-GAAP operating margin, improvement of more than 500 basis points year-over-year.

第二季度非 GAAP 一般和管理費用為 1,330 萬美元，佔收入的 17%，低於一年前的 20%。我們預計未來將提供一致的一般管理費用槓桿佔收入的百分比。第二季度非 GAAP 營業收入為 190 萬美元，非 GAAP 營業利潤率為 2.4%，創季度紀錄，同比提高 500 個基點以上。

Non-GAAP net income for Q2 was $3.8 million for net income of $0.07 per share based on $55.5 million weighted average shares of common stock outstanding compared to a non-GAAP net loss of $1.9 million and $0.04 per share a year ago.

第二季度非GAAP 淨利潤為380 萬美元，每股淨利潤為0.07 美元（基於已發行普通股加權平均股5,550 萬美元），而一年前非GAAP 淨虧損為190 萬美元，每股淨虧損為0.04 美元。

Turning to the balance sheet and cash flow statement, we enter Q2 with $192.4 million in cash and cash equivalents and marketable securities. This is up from $187.2 million at the end of Q1. Deferred revenue at the end of the quarter was $116.7 million. Looking at both our billed and un-billed contracts, RPO totaled approximately $206.4 million, up from $187.8 million exiting Q1, and up 62% year-over-year. We expect to recognize approximately 74% or $153 million of total RPO as revenue over the next 12 months and implying a cRPO growth rate of 47% year-over-year.

談到資產負債表和現金流量表，我們進入第二季度時擁有 1.924 億美元的現金和現金等價物以及有價證券。這高於第一季度末的 1.872 億美元。本季度末的遞延收入為 1.167 億美元。從我們的計費和未計費合同來看，RPO 總額約為 2.064 億美元，高於第一季度的 1.878 億美元，同比增長 62%。我們預計未來 12 個月將 RPO 總額的約 74%（即 1.53 億美元）確認為收入，這意味著 cRPO 同比增長率為 47%。

Operating cash flow in Q2 was positive $6.3 million compared to $1.3 million a year ago. Free cash flow was positive $6.0 million, up meaningful from a year ago. Ongoing focus on unit economics and the quality of our customer base is beginning to deliver structural improvements to our cash flow generation.

第二季度運營現金流為正 630 萬美元，而去年同期為 130 萬美元。自由現金流為正 600 萬美元，較一年前大幅增長。對單位經濟效益和客戶群質量的持續關注開始為我們的現金流產生帶來結構性改進。

Shifting to our financial expectations of the Tagger acquisition. We acquired Tagger Media for a cash consideration of $140 million. We financed the acquisition with cash in our balance sheet and liquidity from our newly established revolving credit facility. We believe this to be an efficient use of our balance sheet and an attractive cost of capital. We expect that Tagger will be accretive to our ARR and ACV growth rates and accretive to our gross margin.

轉向我們對 Tagger 收購的財務預期。我們以 1.4 億美元現金收購了 Tagger Media。我們通過資產負債表中的現金和新建立的循環信貸額度的流動性為此次收購提供資金。我們相信，這是對我們資產負債表的有效利用，也是具有吸引力的資本成本。我們預計 Tagger 將提高我們的 ARR 和 ACV 增長率，並提高我們的毛利率。

In addition, we anticipate that Tagger will be moderately dilutive to our non-GAAP operating margins in 2023 and upside to our margins in 2024 and beyond, as we aim to efficiently accelerate growth inside our distribution model. We have incorporated approximately $3 million of revenue into our guidance for the remainder of 2023, which assumes no customer cross-sell, and we anticipate meaningful growth in 2024.

此外，我們預計 Tagger 將在 2023 年適度稀釋我們的非 GAAP 運營利潤，並在 2024 年及以後提高我們的利潤，因為我們的目標是有效加速我們分銷模式的增長。我們已將約 300 萬美元的收入納入 2023 年剩餘時間的指導中，假設沒有客戶交叉銷售，我們預計 2024 年將出現有意義的增長。

Shifting to formal guidance. Our core business continues to perform very well. As a reminder, we have removed our low-end customer cohort from our forecast. For the third quarter of fiscal 2023, we expect revenue in the range of $84.1 million to $84.2 million, or a growth rate of 29%. We expect services revenue to decline year-over-year.

轉向正式指導。我們的核心業務繼續表現良好。提醒一下，我們已從預測中刪除了低端客戶群體。對於 2023 財年第三季度，我們預計收入在 8410 萬美元至 8420 萬美元之間，增長率為 29%。我們預計服務收入將同比下降。

We expect non-GAAP operating loss in the range of $2.8 million to $2.7 million. This accounts for the timing of our one-time global employee event in Q3 this year, the timing of sales hiring in Q2, and then temporal impact of the absorption of Tagger expenses. The refers to the non-GAAP operating margin of negative 3.2% at the midpoint.

我們預計非 GAAP 運營虧損在 280 萬美元至 270 萬美元之間。這解釋了我們今年第三季度一次性全球員工活動的時間、第二季度銷售招聘的時間，以及吸收 Tagger 費用的時間影響。指非公認會計準則營業利潤率中點為負 3.2%。

We expect a non-GAAP net loss per share of roughly $0.05. This assumes approximately 56.5 million weighted average basic shares of common stock outstanding. For 2023, we expect total revenue in the range of $328.6 million to $328.7 million. This is an expected overall reported growth rate of 30%. We expect services revenue will be lower than 2022 levels.

我們預計非 GAAP 每股淨虧損約為 0.05 美元。假設已發行普通股的加權平均基本股約為 5650 萬股。 2023 年，我們預計總收入在 3.286 億美元至 3.287 億美元之間。預計總體增長率為 30%。我們預計服務收入將低於 2022 年的水平。

For the full year fiscal 2023, we have decisively modeled our lowest customer tier ARR to decline to 0 exiting 2023, which we believe reduce forecast risks of this business that has been strategically de-prioritized. With this change, we believe investors can more clearly assess our outperformance upmarket and expect that total ARR exiting 2023 will be growing at the same pace as reported revenue. This implies that Q2 will represent the lowest pace of ARR growth this year.

對於 2023 財年全年，我們果斷地將最低客戶層 ARR 建模為在 2023 年退出時降至 0，我們相信這會降低該業務已被戰略性降低優先級的預測風險。通過這一變化，我們相信投資者可以更清楚地評估我們在高端市場的表現，並預計 2023 年的總 ARR 將與報告的收入以相同的速度增長。這意味著第二季度將是今年 ARR 增長的最低速度。

For 2023, we now expect non-GAAP operating income in the range of $1.4 million to $1.5 million. This implies annual non-GAAP operating margin improvement of 200 basis points compared with our prior margin expansion forecast of 225 basis points to 235 basis points.

目前，我們預計 2023 年非 GAAP 營業收入將在 140 萬美元至 150 萬美元之間。這意味著年度非 GAAP 營業利潤率將提高 200 個基點，而我們之前的利潤率擴張預測為 225 個基點至 235 個基點。

On an organic basis, we expect to outperform our prior plan and we expect that Tagger will become a net benefit to operating margin expansion in 2024. We now expect non-GAAP net income per share of approximately $0.07 compared to our prior range of $0.07 to $0.08, and assuming approximately 56.0 million weighted average basic shares of common stock outstanding.

在有機基礎上，我們預計將超越我們之前的計劃，並且我們預計Tagger 將成為2024 年營業利潤擴張的淨收益。我們現在預計非GAAP 每股淨利潤約為0.07 美元，而之前的範圍為0.07 美元至0.07 美元。 0.08 美元，並假設已發行普通股的加權平均基本股約為 5600 萬股。

To conclude, I'd like to preview our Investor Day next month. We believe that removing low in ARR from our forecast allows investors to most appropriately focus where we are focused, and for Sprout to continue to execute on our goals.

最後，我想預覽一下下個月的投資者日。我們相信，從我們的預測中消除較低的 ARR 可以讓投資者最恰當地關注我們所關注的領域，並讓 Sprout 繼續實現我們的目標。

We've introduced our new medium-term financial plan expect to exceed $1 billion in subscription revenue in 2028. We can see this target sooner if our mid-market enterprise segments further accelerate, if Salesforce builds further upside, if we're successful in cross-selling Tagger to our customer base, or if we are able to execute additional future strategic M&A.

我們已經推出了新的中期財務計劃，預計到 2028 年訂閱收入將超過 10 億美元。如果我們的中端市場企業細分市場進一步加速，如果 Salesforce 進一步發展，如果我們在向我們的客戶群交叉銷售Tagger，或者我們是否能夠執行其他未來的戰略併購。

We expect to deliver 20% non-GAAP operating margins at $1 billion in scale. We expect free cash flow margins of 20% to 22% in 2028, and deliver a meaningful amount of free cash flow over this horizon. We look forward to sharing further data, details and assumptions with you next month in Chicago. With the starting point of the next great growth chapter in Sprout's journey, we're grateful for your support as we continue to scale the category defining social media management company.

我們預計在 10 億美元的規模下實現 20% 的非 GAAP 運營利潤率。我們預計 2028 年自由現金流利潤率為 20% 至 22%，並在此期間提供大量自由現金流。我們期待下個月在芝加哥與您分享更多數據、細節和假設。隨著 Sprout 旅程下一個偉大增長篇章的起點，我們感謝您在我們繼續擴大定義社交媒體管理公司類別的過程中的支持。

With that, Justyn, Ryan, and I are happy to take any of your questions. Operator?

賈斯汀、瑞安和我很樂意回答你們的任何問題。操作員？

(Operator Instructions) Our first question comes from the line of Raimo Lenschow from Barclays.

（操作員說明）我們的第一個問題來自巴克萊銀行的Raimo Lenschow。

Could we just go one more through, one more time through like the changes we're seeing today. So basically, you're moving the low-end ARR from the ARR calculation, which kind of makes a lot of sense for that kind of pressures ARR. How does that impact revenue or what's driving the change in the revenue guidance? And that's my first question and one follow-up?

我們能否再經歷一次，再經歷一次，就像我們今天看到的變化一樣。因此，基本上，您將從 ARR 計算中移出低端 ARR，這對於此類壓力 ARR 來說非常有意義。這對收入有何影響，或者是什麼推動了收入指引的變化？這是我的第一個問題和一個後續問題？

Yes, Raimo, this is Joe. I can probably help you model that out a little simpler. I think the way we're thinking about it is if you look at the comments I made around, if you assume that ARR exiting Q4 is in line with our revenue growth, exiting in Q4, and you can apply from our guidance that's probably in the 28% to 29% range. So if you use that as the ARR kind of growth rate year-over-year, you can kind of back into the ARR we plan to add into the back half the year. And then from there you can kind of get the revenue that flows through your model.

是的，雷莫，這是喬。我也許可以幫助您將其建模得更簡單一些。我認為我們思考這個問題的方式是，如果你看看我所做的評論，如果你認為退出第四季度的ARR 與我們的收入增長一致，在第四季度退出，你可以從我們的指導中應用，這可能是28% 到 29% 的範圍。因此，如果您將其用作 ARR 同比增長率，您可以將其重新納入我們計劃在下半年添加的 ARR。然後從那裡你可以得到流經你的模型的收入。

Yes. And then just remember last quarter we talked about like the low-end kind of maybe exiting you quicker than expected and you kind of talked about some stabilization trends in April. How does this quarter play out and where are we on that journey?

是的。然後記住上個季度我們談到低端產品可能比預期更快地退出你，你談到了四月份的一些穩定趨勢。本季度的情況如何？我們目前處於什麼階段？

Yes, great question. This is Justyn. So yes, I mean the low-end of the business has been obviously a bit challenging for us over the last couple of quarters. When we spoke last, we saw some signs, some really positive signs of stabilization early in the quarter, in the second quarter and then kind of reverted back to what we had seen in the back half of first quarter shortly after that.

是的，很好的問題。這是賈斯汀。所以，是的，我的意思是，在過去的幾個季度中，低端業務顯然對我們來說有點挑戰。當我們上次講話時，我們看到了一些跡象，一些真正積極的穩定跡象，在本季度初和第二季度，然後又恢復到我們在第一季度後半段看到的情況。

And so while we're -- we're optimistic that there's future stabilization there. We wanted to make sure that we're just eliminating that risk from the model, as it's remained fairly unpredictable, both on the contraction as well as the new business side, with not only the pricing changes, but also just the organizational alignment and prioritization that we've put further up market, that segment of the business has just remained a bit more challenging.

因此，儘管我們對未來的穩定持樂觀態度。我們希望確保我們只是從模型中消除這種風險，因為無論是在收縮方面還是在新業務方面，它仍然相當不可預測，不僅是定價變化，而且還包括組織調整和優先級我們已經進一步開拓了高端市場，但該業務領域仍然更具挑戰性。

Our next question comes from the line of Arjun Bhatia from William Blair.

我們的下一個問題來自威廉·布萊爾 (William Blair) 的阿瓊·巴蒂亞 (Arjun Bhatia)。

One, maybe for Joe, I think you called out that medium term you expect ACV growth to be faster than expected. Can you maybe just walk us through some of the drivers there? What are you seeing what's going to get that ACV growth to be higher and accelerate through the rest of this year?

第一，也許對喬來說，我認為您指出中期來看，您預計 ACV 增長將快於預期。您能否向我們介紹一下那裡的一些驅動程序？您認為什麼會促使 ACV 增長更高並在今年剩餘時間內加速？

Yes. Good question there. For us, I think it's some of the momentum we're seeing up in the -- definitely in the enterprise space, some of the data points we gave out, the enterprise business growing 50% year-over-year, new business growing over 50%. The deals that are coming in are just much larger these days than they were last quarter or the quarter before that.

是的。好問題。對於我們來說，我認為這是我們在企業領域看到的一些勢頭，我們給出的一些數據點，企業業務同比增長 50%，新業務增長超過50%。這些天的交易規模比上個季度或前一個季度要大得多。

And so I think as we continue to move up into this mid-market and enterprise business, we continue to see larger and larger ACVs. If you look at the stat on the 50K cohort growing over 48%, the 250K cohort that grew over 130% Arjun, we're just seeing larger deals across the organizations that we're doing business with. So it gives us a lot of confidence that that momentum up market will continue throughout the year.

因此，我認為，隨著我們繼續進軍中端市場和企業業務，我們將繼續看到越來越大的 ACV。如果您查看 Arjun 5 萬群組增長超過 48% 的統計數據，以及增長超過 130% 的 25 萬群組的統計數據，我們就會看到與我們開展業務的組織之間發生了更大的交易。因此，這給了我們很大的信心，這種上漲勢頭的市場將在全年持續下去。

Yes. And I'd probably just also add in from a premium attach rate perspective, we've seen a lot of progress there up 160 basis points. Now 24% of our total customers have one of those products, but we see a lot of headroom there with the products we have previously, when we think about the fact that only 6% of them have both of those products. And then we add in something like Tagger there's additional growth to come in the future for us there. So we feel really good about the quality of those customers coming in and the ability to attach some of these other products from an ACV perspective.

是的。我可能還想從溢價附加率的角度補充一下，我們已經看到了 160 個基點的巨大進展。現在，我們總客戶中有 24% 擁有其中一種產品，但考慮到只有 6% 的客戶同時擁有這兩種產品，我們發現我們之前擁有的產品還有很大的發展空間。然後我們添加像 Tagger 這樣的東西，未來我們將獲得額外的增長。因此，我們對這些客戶的質量以及從 ACV 角度附加一些其他產品的能力感到非常滿意。

And then on Salesforce, it seems like there's a pretty good quarter in Q2 in getting migrations. What are you seeing in the pipeline, Ryan, and how do you think the cadence of that partnership kind of progresses through this year and even into 2024?

然後在 Salesforce 上，第二季度的遷移情況似乎相當不錯。 Ryan，您在計劃中看到了什麼？您認為今年乃至 2024 年這種夥伴關係的進展如何？

Yes. We feel great about the partnership. We delivered 176 logos in Q2, up 75% sequentially. A lot of value being viewed by these customers as it relates to the integrations that we had built across Tableau and Slack and more recently in Q4 Service Cloud. And then we added the marketing cloud integration in this quarter as well, which we had a great opportunity to speak to customers live about at the Salesforce Connections event.

是的。我們對這種夥伴關係感覺很好。我們在第二季度交付了 176 個徽標，比上一季度增長 75%。這些客戶看到了很多價值，因為它與我們在 Tableau 和 Slack 以及最近在第四季度 Service Cloud 中構建的集成相關。然後，我們在本季度還添加了營銷雲集成，我們有很好的機會在 Salesforce Connections 活動上與客戶現場討論這一點。

We shared this previously, but we continue to see a lot of amazing opportunity with these customers, both social studio customers that need to transition off that are very large in size, as well as just Salesforce customers in general that are looking for a fully integrated solution into the Salesforce tech stack. And so we feel really great.

我們之前分享過這一點，但我們繼續看到這些客戶有很多驚人的機會，包括需要過渡的規模非常大的社交工作室客戶，以及一般正在尋求完全集成的 Salesforce 客戶。將解決方案納入Salesforce 技術堆棧。所以我們感覺真的很棒。

The pipeline is continuing to grow. We anticipate we'll continue to see strong results in the second half of this year. There's been some amazing stories we've seen from customers coming in where this combination of moving from social studio, trialing our product, seeing all of the value adds that we have in Sprout that they could immediately get benefit from.

該管道正在持續增長。我們預計今年下半年將繼續看到強勁的業績。我們從客戶那裡看到了一些令人驚奇的故事，這些故事結合了從社交工作室轉移到試用我們的產品，看到我們在 Sprout 中擁有的所有附加值，他們可以立即從中受益。

And then for customers that are Salesforce customers that were on another social media management platform, realizing the importance of having that full 360 degree view of the customer and having that social data pervasive across the Salesforce CRM record. Now we are uniquely positioned to deliver this for customers. So feeling really good about the visibility and a lot of traction and we'll be heavily active at Dreamforce coming up in September.

然後，對於使用另一個社交媒體管理平台的 Salesforce 客戶，他們意識到擁有完整的 360 度客戶視圖以及讓社交數據遍布 Salesforce CRM 記錄的重要性。現在，我們處於獨特的地位，可以為客戶提供這一服務。因此，我們對知名度和巨大的吸引力感覺非常好，我們將在 9 月份舉辦的 Dreamforce 上積極活躍。

Our next question comes from the line of Parker Lane from Stifel.

我們的下一個問題來自 Stifel 的 Parker Lane 線路。

Joe, I wanted to go back to the non-core customer cohort here. And I know it's not in the numbers and there's a lack of certainty around modeling that. But what should we think about as a realistic time frame for these 7,400 customers to either move off the platform or reach some point of stabilization? I mean, we're about 9 months into the price changes, a lot of these customers are month-to-month. Just give us a sense of what a realistic timeline is to approach a stabilization in that cohort, just in that absolute customer logo terms?

喬，我想回到這裡的非核心客戶群。我知道這不是數字，而且建模也缺乏確定性。但是，對於這 7,400 名客戶來說，我們應該考慮什麼才是離開平台或達到某個穩定點的現實時間框架？我的意思是，我們的價格變化已經持續了大約 9 個月，其中很多客戶都是按月變化的。只是讓我們了解一下實現該群體穩定的現實時間表是什麼，只是用絕對的客戶標誌術語？

Yes. Parker, so what we've mentioned on the call and the way we're kind of giving our guidance, we're actually assuming that that goes to 0 by the end of the year. So we want to just kind of take that risk off the table. So from that standpoint, that's how you can kind of think about that as it relates through the end of this year. So we've got that zeroing out by the end of this year from a guidance standpoint.

是的。帕克，我們在電話會議中提到的以及我們提供指導的方式實際上是假設到今年年底這一數字將降至 0。所以我們只是想消除這種風險。因此，從這個角度來看，這就是你可以如何思考今年年底的問題。因此，從指導的角度來看，我們將在今年年底前將其歸零。

Understood. And then maybe on Tagger, can you give us a sense of that business model and who exactly they're targeting, what size of organizations they're looking at? Does that tend to skew more enterprise given the higher ACVs there or is it a relatively balanced mix of organizations they're targeting?

明白了。然後，也許在 Tagger 上，您能否讓我們了解一下這種商業模式以及他們的具體目標人群以及他們正在尋找的組織規模？考慮到那裡的 ACV 較高，這是否會傾向於更多的企業，還是他們所針對的組織的相對平衡的組合？

This is Ryan. So, it skews very much into sophisticated customers in the enterprise. One of the reasons why it stood out so much to us is they've got customers like Estee Lauder, Bose, Omnicom and a stable of really great customers that they work with. Their technology, which we love, is just incredibly scalable. It's elegant. It looks and feels a lot like Sprout. And so our R&D team who certainly bias to the internal side of building, this is one of the first companies we've ever seen that they've just been incredibly impressed with.

這是瑞安。因此，它非常偏向於企業中的成熟客戶。它對我們如此引人注目的原因之一是他們擁有雅詩蘭黛、Bose、Omnicom 等客戶以及與他們合作的穩定的真正優秀客戶。他們的技術是我們所喜愛的，並且具有令人難以置信的可擴展性。很優雅。它的外觀和感覺很像Sprout。因此，我們的研發團隊肯定偏向於建築的內部方面，這是我們見過的第一批給他們留下深刻印象的公司之一。

And we liked it because we obviously have a certain go-to-market motion within the enterprise and the way that they've built their software and implemented customers and the way that customers get utility quickly lines up really well to us. So they're definitely focused in on the enterprise part of the market. And so that, again, speaks to just some of the ACV opportunities we see in the future as well as the impact we think that they can eventually have on our competitive win rates.

我們喜歡它，因為我們顯然在企業內部有一定的進入市場的行動，他們構建軟件和實施客戶的方式以及客戶快速獲得實用程序的方式非常適合我們。所以他們肯定專注於市場的企業部分。因此，這再次說明了我們未來看到的一些 ACV 機會以及我們認為它們最終會對我們的競爭勝率產生的影響。

Our next question comes from the line of Adam Hotchkiss from Goldman Sachs.

我們的下一個問題來自高盛的 Adam Hotchkiss。

I guess to start, it would be great to just dig a little deeper on what you're seeing in the mid to high-end of the market. It looks like on one hand, the 50,000 plus ACV cohort was your strongest 2Q that you've seen to date. But I think it was a little bit softer once you got below 50,000, even when you back out the very low-end of the market. So I guess to ask the question in 2 parts, one, how would you characterize the success you're seeing in the 50,000 plus? Is that more wins in the enterprise against some of your larger competitors, is that upsells, how should we think about that? And then 2, is there anything to call out from that sub 50,000 cohort that we should be aware of?

我想首先，更深入地了解您在中高端市場中看到的情況會很棒。一方面，50,000 多名 ACV 隊列是您迄今為止所見過的最強的第二季度。但我認為，一旦跌破 50,000 點，即使你退出了非常低端的市場，價格也會變得更加疲軟。所以我想分兩部分來問這個問題，第一，您如何形容您在 50,000 多人中看到的成功？企業在對抗一些較大競爭對手時是否取得了更多勝利，是否是追加銷售，我們應該如何看待這一點？然後 2，對於這 50,000 名以下的人群，有什麼值得我們注意的嗎？

We're incredibly excited about the progress that we continue to see in that 50,000. It's up 48% in terms of representative ARR. Logos was up nearly 3x sequentially. And then the 10-K side of things, what I'd highlight there is from an ARR perspective, is pretty similar in terms of value from Q1, but if we looked at the ARR contribution, the 50,000 bucket was much greater than Q1 with an accelerating growth rate. So I'd just highlight that the deals were much bigger and we were seeing a lot of deals within that bucket than that more than made up for the reduction and logo count in the sub 50,000.

我們對這 50,000 人繼續取得的進展感到非常興奮。就代表性 ARR 而言，增長了 48%。 Logos 環比上漲近 3 倍。然後，從 ARR 的角度來看，10-K 方面的情況與 Q1 的價值非常相似，但如果我們查看 ARR 貢獻，則 50,000 桶比 Q1 大得多，增長率不斷加快。因此，我想強調的是，交易規模要大得多，而且我們看到該類別中的大量交易超過了 50,000 筆以下的減少和徽標數量。

That's really helpful. And then second, just to double click on Tagger, appreciate all the color that you've given there, but could you give us more of a sense for why now on buying that business and how you thought about that from an M&A environment and balance sheet perspective. Was this just a function of your hearing accelerating demand for this in your customer base and wanted to be sure to build out of presence there early? Or how did you think about the sort of why now?

這真的很有幫助。其次，只需雙擊 Tagger，欣賞您在那裡提供的所有顏色，但是您能否讓我們更多地了解為什麼現在購買該業務以及您如何從併購環境和平衡角度考慮這一點片材透視。這是否只是您聽到客戶群對此需求加速增長的結果，並希望確保儘早在那裡建立業務？或者說你現在是怎麼想到這個原因的？

Yes. This is Justyn. I can speak to the kind of the why now and how we're thinking strategically about this. So you've heard me start talking about this space, probably as early as beginning of last year, late to prior year. This is a part of the market and part of the category that we know has grown increasingly important to our customers. We referenced in the remarks, we're seeing this in a substantial amount of the enterprise and even the mid-market deals that we're working on. And that's been on an upward trend for some time now.

是的。這是賈斯汀。我可以談談為什麼現在以及我們如何戰略性地思考這個問題。所以你可能早在去年初、去年年底就已經聽到我開始談論這個領域了。這是市場的一部分，也是我們知道對我們的客戶越來越重要的類別的一部分。我們在評論中提到，我們在大量企業甚至我們正在開展的中端市場交易中都看到了這一點。一段時間以來，這一數字一直呈上升趨勢。

When we think about the timing on this, we were mostly focused on finding the right partner here, finding the right team, the right product, didn't have specific designs around the when, but it certainly winds up nicely. I think that it's happening when it is because we've got a real opportunity, not only to meet a much larger set of customer demands and kind of follow the demand trends that we're seeing around this space.

當我們考慮這個時機時，我們主要專注於在這裡尋找合適的合作夥伴，找到合適的團隊，合適的產品，沒有具體的設計，但最終結果肯定很好。我認為這種情況之所以發生，是因為我們有一個真正的機會，不僅可以滿足更多的客戶需求，而且可以遵循我們在這個領域看到的需求趨勢。

It's also reached the level of maturity where CMOs are starting to take it seriously, as you heard around kind of the increased investments there, but also gives us an immediate opportunity to create a category winner here, increase the competitive win rates in our own business, in the core products, and really stand out from a competitive differentiation standpoint to have a foothold in this part of the market that we expect is going to grow pretty substantially over the next many years.

它也達到了成熟的水平，首席營銷官開始認真對待它，正如你聽說的那樣，那裡的投資增加了，但也給了我們一個立即的機會，在這裡創造一個類別的贏家，提高我們自己業務的競爭獲勝率，在核心產品中，並從競爭差異化的角度真正脫穎而出，在我們預計未來幾年將大幅增長的這部分市場中站穩腳跟。

Yes, And I'll maybe just add in from a team and customer perspective, the folks on our team have been paying a lot of attention to the space. Justyn's been talking about this space for a while. We've been developing a point of view around the space for a while and that the Tagger team and product just really stood out. And when we started to bring some of the rest of our team in the go-to-market org as well as R&D together to take a look at Tagger, the excitement was off the charts in terms of the fit for us and the opportunity.

是的，我可能會從團隊和客戶的角度補充一下，我們團隊的人員一直非常關注這個領域。賈斯汀已經談論這個空間有一段時間了。一段時間以來，我們一直在圍繞這個領域形成一種觀點，Tagger 團隊和產品確實脫穎而出。當我們開始召集市場推廣組織和研發團隊的其他成員一起研究 Tagger 時，我們對它的適合性和機會感到非常興奮。

And to Justyn's point, in our enterprise, over half of the opportunities we have are talking about influencers. We saw just a great fit there. We saw the opportunity to differentiate. And if I think about real time, my team's sending me texts right now, even in the hour plus since this news has dropped, we've had over 40 inbounds from brands and companies that you know well that are incredibly excited about spending some time with us on this product, either because they need it and or they've been asking us for it and asking us to get in this space. So all those things have really lined up to this massive opportunity that we're excited about.

就賈斯汀的觀點而言，在我們的企業中，我們擁有的超過一半的機會都在談論有影響力的人。我們發現那裡非常適合。我們看到了差異化的機會。如果我考慮一下實時情況，我的團隊現在就在給我發短信，即使在這條消息發布後的一個多小時內，我們也收到了40 多個來自您熟悉的品牌和公司的來信，他們對花一些時間感到非常興奮與我們合作開發這個產品，要么是因為他們需要它，要么是他們一直向我們索取並要求我們進入這個領域。因此，所有這些事情都與我們感到興奮的巨大機遇相一致。

Our next question comes from the line of Matt VanVliet from BTIG.

我們的下一個問題來自 BTIG 的 Matt VanVliet。

Ryan, I guess when you look at that last comment about a number of customers, especially larger ones, looking at the influencer market and probably waiting to see kind of how things emerge from a technology perspective. Where are you projecting this to be in terms of contribution or any kind of premium lift in pricing or anything like that. So whether it's contribution in that dollar retention or anything like that, what's sort of baked into the plan this year? And maybe more importantly, as you look towards next year, how much of a lift can you get at existing customers from a product like this?

Ryan，我想當你看到最後關於一些客戶（尤其是大客戶）的評論時，你會關注有影響力的市場，並且可能會等待從技術角度來看事情是如何出現的。您預計這會在貢獻或任何類型的定價溢價提升或類似方面有所體現。那麼，無論是保留美元的貢獻還是類似的東西，今年的計劃都包含哪些內容呢？也許更重要的是，當您展望明年時，您可以從這樣的產品中獲得多少現有客戶的提升？

Yes. I'll start off and then Joe, maybe you can just chime in with the modeling and the forecasting. I think I would just tell you from a qualitative perspective right now, we see a lot of opportunity as we move forward. Most of my comments would be 2024 focused on just the combining of our efforts here from a win rate perspective, both in our core business as well as the deals that would have just been Tagger on its own. We see opportunities from an ACV perspective. The same success we've seen in attach rates from listening and analytics, we expect that our go-to-market motion will drive progress and success on that side as well. But I'll maybe let Joe get into a little bit more of the modeling forecasting.

是的。我先開始，然後喬，也許你可以插話一下建模和預測。我想我現在只是從定性的角度告訴你，隨著我們的前進，我們看到了很多機會。我的大部分評論將集中在 2024 年，從贏率的角度來看，我們在這裡的努力結合起來，無論是在我們的核心業務上，還是在 Tagger 本身的交易上。我們從 ACV 的角度看到了機遇。我們在傾聽和分析的附加費率方面取得了同樣的成功，我們預計我們的上市行動也將推動這方面的進步和成功。但我也許會讓喬更多地參與建模預測。

Yes, so Matt, I think right now what we talked about is, we've got $3 million worth of revenue in the guidance for this year. And we're not assuming right now any kind of cross sell and that number in the Sprout. And so I think that'll be all upside depending on how the rest of the year goes. And then as far as the other data point that I think is important to note here, and you're one of your questions, which is the ACVs of these deals are significantly higher than our average ACVs. And so when we think about going into next year and the upside that we have in our business, I think this contributes to our move up into the mid-market enterprise, the ACV growth that we're seeing. So I think this all kind of fits into the model from that aspect.

是的，所以馬特，我認為現在我們討論的是，我們今年的指導中已經獲得了價值 300 萬美元的收入。我們現在不假設任何形式的交叉銷售以及新芽中的這個數字。因此，我認為這將是有利的，具體取決於今年剩餘時間的情況。然後就我認為在這裡需要注意的另一個數據點而言，這是您的問題之一，即這些交易的 ACV 明顯高於我們的平均 ACV。因此，當我們考慮明年的情況以及我們業務的優勢時，我認為這有助於我們向中端市場企業邁進，即我們所看到的 ACV 增長。所以我認為從這個方面來說這一切都適合這個模型。

Yes, and this is Justyn. I'll just quickly add to the question you asked about NDR. I think obviously a little bit early to be thinking about modeling that, but we know that anytime we've got additional functions, additional users or additional product touch points with our customers, particularly in this part of the market, that's absolutely a contributor on -- that we expect will have some benefit on both sides of the business for both product sets as we are able to start to execute on that cross-sell and combine selling motion.

是的，這是賈斯汀。我將快速補充您提出的有關 NDR 的問題。我認為顯然考慮建模還為時過早，但我們知道，只要我們與客戶有額外的功能、額外的用戶或額外的產品接觸點，特別是在這部分市場，這絕對是一個貢獻者- 我們預計這兩種產品集的業務雙方都會受益，因為我們能夠開始執行交叉銷售和合併銷售動議。

All right. And then Joe, I wanted to follow up just to make sure we're calculating this all out correctly. But if you're adding $3 million from Tagger in the rest of the year guide, then it looks like you took kind of the guidance range down, called $7.5 million at the midpoint. If we try to calculate out what the lowest end cohort is at 4% of ARR, it looks like the rest of the business, you're actually lowering the second half contribution a little bit. So can you just tie these together in terms of how much revenue you're taking out of the guide for that low-end customer group going to 0 and then what the remaining delta is in terms of the forward guide?

好的。然後喬，我想跟進只是為了確保我們正確地計算出這一切。但如果你在今年剩餘時間的指南中添加 Tagger 的 300 萬美元，那麼看起來你會降低指導範圍，即中點 750 萬美元。如果我們嘗試計算最低端群體的 ARR 為 4%，那麼看起來其餘的業務實際上會稍微降低下半年的貢獻。那麼，您能否將這些低端客戶群的指南中的收入變為 0，然後將前向指南中的剩餘增量結合起來？

Yes, so I think the way to think about it is, and I brought this a little earlier up, Matt, we're taking out that kind of that sub, 2,000 bucket down that low value bucket down to 0 by the end of the year. And so -- and we're not lowering any other part of the guidance or the model.

是的，所以我認為思考這個問題的方法是，我早些時候提出了這一點，馬特，我們正在拿出那種子，2,000 桶，到年底，低價值桶下降到 0年。因此，我們不會降低指南或模型的任何其他部分。

And then the other data point that's important there is that, I think to think about the revenue and maybe what you originally had would be back to that comment I made earlier about our exit ARR. If you think about exiting year-end ARR with a 28%, 29% year-over-year growth rate, you can kind of get what we think we're going to add to the business and then back into the revenue, overall revenue contribution, factoring in the $3 million from Tagger.

然後另一個重要的數據點是，我認為考慮一下收入，也許你最初的收入會回到我之前對退出 ARR 所做的評論。如果您考慮以 28%、29% 的同比增長率退出年終 ARR，您可以得到我們認為將增加到業務中的內容，然後返回到收入、總體收入中貢獻，計入 Tagger 的 300 萬美元。

Our next question comes from the line of DJ Hynes from Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 DJ Hynes。

Ryan, I'll start with you. It may be early, but I'd love to get your thoughts on expansion dynamics with the early customers that have moved over from social studio. I know they're generally larger in scope at land, but it would be great to get any observations on how these larger lands might impact NRR going forward and what you're seeing with those social studio customers, as they get acquainted to the Sprout product?

瑞安，我就從你開始吧。可能還為時過早，但我很想了解您對從社交工作室轉移過來的早期客戶的擴張動態的看法。我知道它們在陸地上的範圍通常更大，但如果能夠了解這些更大的土地可能如何影響未來的 NRR，以及當社交工作室客戶熟悉 Sprout 時您所看到的情況，那就太好了產品？

I mean, I think we are pretty early on that journey, but generally I would say that those lands are coming in larger than they were with social studios. So we are getting a premium on most of those accounts as they move over. I think the things that I get excited about more from a qualitative perspective is typically when they're coming in, in the enterprise, they might be in one part of the business, right? It might be one business unit or might be one use case.

我的意思是，我認為我們還處於這一旅程的早期階段，但總的來說，我會說這些土地比社交工作室更大。因此，當這些賬戶中的大多數轉移時，我們都會獲得溢價。我認為從定性的角度來看，我更感興趣的事情通常是當它們進入企業時，它們可能屬於業務的一部分，對吧？它可能是一個業務部門，也可能是一個用例。

And then we've got this opportunity to land and expand across the organization. I think because those customers are such a great fit for us in terms of ideal customer profile, they tend to skew very much into the mid-market and enterprise. We still see a lot of headroom for them even beyond the initial land.

然後我們就有機會在整個組織內落地和擴張。我認為，因為這些客戶在理想客戶檔案方面非常適合我們，所以他們往往非常偏向中端市場和企業。即使超出最初的土地，我們仍然看到它們有很大的空間。

And then I think the other piece that I'd share is if I think about just the social studio product and what it offered, you usually see customers in one or two places, one they're doing the marketing publishing side of it, or they might be doing the customer care. We know that we've got a lot of benefit to expand beyond that into the analytics side and into the advocacy side, and in many cases into the social listening side and now influencer. So I think that there's quite a bit of headroom there, but we're still pretty early in that journey.

然後我想我要分享的另一件事是，如果我只考慮社交工作室產品及其提供的內容，您通常會在一兩個地方看到客戶，他們正在做營銷發布方面的工作，或者他們可能正在做客戶服務。我們知道，除了擴展到分析方面和宣傳方面，在許多情況下擴展到社交聆聽方面和現在的影響者方面，我們可以獲得很多好處。因此，我認為那裡還有很大的空間，但我們仍處於這一旅程的早期階段。

And then Justyn, maybe a follow-up for you. It'd be great to hear a bit more about what you're doing with RepuState and AI on the social listening side of the business. I mean, how meaningful are the advancements you can drive here compared to kind of what that listening product was prior?

然後賈斯汀，也許是你的後續行動。很高興聽到更多有關 RepuState 和 AI 在社交聆聽方面的業務的信息。我的意思是，與之前的聆聽產品相比，您在這裡可以推動的進步有多大意義？

Yes. Pretty substantial in my opinion. I think that the things that we've released today, the things that we've got in play, et cetera, are interesting and are going to add a ton of value. But once we get to kind of the next generation and the next bits of our roadmap, where we're really able to start tying in things like understanding the trends that are coming in through listening, applying that back to the content that's resonating best with your audience, tying that there again to influencers that may be helpful in driving the messages that you want to drive, et cetera, and be able to seamlessly and very easily tie all of the aspects of the social strategy together, which are largely driven by listening with AI and give our customers an easy button to do those things to draw those insights and to frankly develop their action plan for the outcomes that they want to drive as one example.

是的。在我看來相當重要。我認為我們今天發布的東西、我們正在使用的東西等等都很有趣，並且會增加大量的價值。但是，一旦我們進入了下一代和路線圖的下一部分，我們就真正能夠開始結合一些事情，比如通過傾聽來理解正在出現的趨勢，並將其應用到最能引起共鳴的內容上。你的受眾，再次將其與影響者聯繫起來，這些影響者可能有助於推動你想要推動的信息等等，並且能夠無縫且非常輕鬆地將社交策略的所有方面聯繫在一起，這在很大程度上是由使用人工智能傾聽，為我們的客戶提供一個簡單的按鈕來執行這些操作，以獲取這些見解，並坦率地制定他們想要實現的結果的行動計劃（例如）。

That's where it starts to get really interesting to me. And that's where I've got a lot of confidence in the team that we have and our product team's ability to take something that may look fairly simple or pedestrian on the surface and turn it into something that creates a ton of value for our customers and that's differentiated in the market. That's the part here that I'm most excited about.

這就是我開始真正感興趣的地方。這就是我對我們的團隊和我們的產品團隊充滿信心的地方，他們有能力將表面上看起來相當簡單或平庸的東西變成為我們的客戶創造大量價值的東西，這在市場上是有差異化的。這是我最興奮的部分。

We're already seeing improvements across the entire platform, including listening. And I think one of the earliest ones that give me a lot of excitement, I think are going to drive a lot of value for our customers is, social listening is a pretty interesting endeavor in that you're consuming and trying to draw meaning from massive, massive amounts of data. Often nuanced meaning and often multiple meanings, there's not a single thread, there's not a single kind of analysis or a single bit that's going to be useful to the organization. There's many. And as we start to deploy the large language models and the things that we're building around listening to unlock all of that for our customers, and then again, turn it back around onto their strategy, that's going to be a game changer in my opinion.

我們已經看到整個平台的改進，包括聆聽。我認為最早給我帶來很多興奮的事情之一，我認為這將為我們的客戶帶來很多價值，社交傾聽是一項非常有趣的努力，因為你正在消費並試圖從中汲取意義海量、海量的數據。通常有微妙的含義，並且通常有多種含義，沒有單一的線索，沒有單一類型的分析或單個位對組織有用。有很多。當我們開始部署大型語言模型以及我們圍繞傾聽為客戶解鎖所有這些而構建的東西時，然後再次將其轉變為他們的策略，這將改變我的遊戲規則觀點。

Yes. I might just add on that last point that Justyn made, which I think is really, really powerful, is that I think that Sprout is just so uniquely positioned to help here because of the way that we've built this product, how approachable and elegant it has been for folks that have never leveraged listening.

是的。我可能會補充 Justyn 提出的最後一點，我認為這一點非常非常強大，那就是我認為 Sprout 具有獨特的定位，可以在這方面提供幫助，因為我們構建此產品的方式，非常平易近人且易於使用。對於那些從未利用過傾聽的人來說，這很優雅。

So you think about all those things that Justyn mentioned and all of a sudden, we can take folks who are new to listening and really supercharge their ability to get at that data and make it actionable. And so I think that that one piece with the work that we're going to do there just allows us to have a much bigger market to go after because of the way that we've built this product.

所以你想想賈斯汀提到的所有這些事情，突然之間，我們可以讓那些剛開始傾聽的人真正增強他們獲取數據並使其具有可操作性的能力。因此，我認為，由於我們構建該產品的方式，我們將在那裡做的工作只會讓我們有一個更大的市場可以追求。

Our next question comes from a line of Scott Berg from Needham and Company.

我們的下一個問題來自尼達姆公司的斯科特·伯格（Scott Berg）。

Joe, I wanted to just ask a couple things on the Tagger guidance here together. I guess first of all, is there any purchase accounting impact on their revenues? Don't know what standards you've adopted this year and the transition year around that. And then secondly, what's the linearity of that $3 million look like for the balance of the year?

喬，我想在這裡一起問一些有關 Tagger 指南的問題。我想首先，購買會計對他們的收入有影響嗎？不知道您今年以及圍繞該標準的過渡年採用了哪些標準。其次，這 300 萬美元在今年剩餘時間內的線性度如何？

Yes. So on your first question, Scott, there's not going to be any purchase accounting adjustments or impact to the revenue number, the way that the guidance we gave. So we feel like that's a pretty pure number and nothing to worry about that on that front. And I know what you're talking about, but not the concerns you might see from other companies that have other services bundled in with the subscription side. And then as far as the linearity, we definitely see that there'll be a little bit more of that in Q4, obviously, just given the deals are definitely more enterprise, similar to our business and so a little bit more weighted in Q4.

是的。因此，關於你的第一個問題，斯科特，不會有任何購買會計調整或對收入數字的影響，就像我們給出的指導那樣。所以我們覺得這是一個非常純粹的數字，在這方面無需擔心。我知道你在說什麼，但不知道你可能會從其他與訂閱方捆綁其他服務的公司那裡看到這種擔憂。然後就線性而言，我們肯定會看到第四季度的情況會更多一些，顯然，考慮到這些交易肯定更具企業性，與我們的業務類似，因此第四季度的權重會更大一些。

And then from a follow-up question, I guess just more strategically with this product is, I know part of the rationale was on the differentiation side of the house. I guess as you think about other vendors out there that are selling the traditional social media product that you all have had for a long time, it looks like you're probably the only vendor that really will have this functionality. But I guess in that question, 50% of your RFPs have this in it? Do you see this typically being selected in the sales cycle or is the sales cycle maybe different than what you'd usually see for your social media solutions?

然後從後續問題來看，我想對於這個產品更具戰略意義的是，我知道部分原因在於產品的差異化方面。我想，當您想到其他銷售你們已經使用很長時間的傳統社交媒體產品的供應商時，您可能是唯一真正擁有此功能的供應商。但我想在這個問題中，50% 的 RFP 中都有這個內容？您是否認為這通常是在銷售週期中選擇的，或者銷售週期可能與您通常看到的社交媒體解決方案不同？

Yes. So I would say you're right just on the stat in terms of half of the deals in the enterprise, we're seeing this being a requirement. From a competitive perspective, as we did diligence on the market and really looked at it, there really wasn't much relevance from what we could see in our direct competitive set. It seemed to be a lot of folks that just were competing directly against Tagger and Tagger just stood out for us in terms of just their technology and the solution and their approach to the market and all the things I mentioned before in terms of fit.

是的。所以我想說，就企業中一半的交易而言，您的統計數據是正確的，我們認為這是一項要求。從競爭的角度來看，當我們對市場進行盡職調查並認真研究時，我們在直接競爭中看到的內容確實沒有太多相關性。似乎有很多人直接與 Tagger 競爭，而 Tagger 只是在他們的技術、解決方案、他們的市場方法以及我之前提到的所有適合性方面脫穎而出。

And so we see this as a really great competitive advantage in our core business as we move forward as well. And some of that's been referenced just in the last hour with all the inbound leads that we're seeing from these accounts. And then from a sales cycle perspective, the other piece that was just exciting for us is as we spent time with the go-to-market team, their sales cycles aren't quite as rapid as ours with our trial model, but they're fast for enterprise.

因此，隨著我們不斷前進，我們認為這是我們核心業務中真正巨大的競爭優勢。其中一些內容是在過去一個小時內我們從這些帳戶中看到的所有入站潛在客戶中引用的。然後從銷售週期的角度來看，另一件令我們興奮的事情是，當我們花時間與市場推廣團隊合作時，他們的銷售週期並不像我們的試用模型那麼快，但他們'對於企業來說速度很快。

And we believe that from what we've seen and how we're running the rest of our cycles that they can attach nicely in the work that we're doing without elongating our core business. So that was also part of the thesis for us on this is as we're doing that cross-sell that we can we can really tie these things together as we're going to market.

我們相信，從我們所看到的以及我們如何運行其餘週期來看，它們可以很好地融入我們正在做的工作中，而不會延長我們的核心業務。因此，這也是我們論文的一部分，因為我們正在進行交叉銷售，我們可以在進入市場時真正將這些東西結合在一起。

Yes. And I'll maybe quickly add on the inbound demand and what we were seeing in the asks from our prospects and customers, both in RFPs and just generally. It was a very important part of their strategy and an important part of their ask. It wasn't something that anyone, to your point, that anyone in the space was able to meet. And so it was a demand that was largely left unmet unless it was sourced separately. And now we've got an alternative for those customers that we're really excited about.

是的。我可能會很快補充一下入境需求以及我們在潛在客戶和客戶的要求中看到的內容，無論是在 RFP 中還是一般情況下。這是他們戰略的一個非常重要的部分，也是他們要求的一個重要部分。就你而言，這不是任何人都能遇到的事情。因此，除非單獨採購，否則這一需求基本上得不到滿足。現在，我們為這些客戶提供了一個讓我們非常興奮的替代方案。

Our next question comes from a line of Michael Turits from KeyBank. Please go ahead.

我們的下一個問題來自 KeyBank 的 Michael Turits。請繼續。

Hi. This is Michael Vidovic on for Michael Turits. So, just on the pricing changes you made last year, just wanted to get sort of an update on if you were able to kind of achieve that 10% uplift on existing logos that you talked about last year, and if that was just playing as you expected it to play out?

你好。我是邁克爾·維多維奇 (Michael Vidovic) 替補邁克爾·圖里茨 (Michael Turits)。因此，就您去年所做的定價變化而言，我只是想了解一下您去年談到的現有徽標是否能夠實現 10% 的提升，以及這是否只是發揮作用的最新信息。你期望它能發揮出來嗎？

Yes. Michael, this is Joe. Right now we're feeling really good about the price lifts for the existing customers that have rolled out it throughout the year. I think it ranges anywhere from like we talked about, low middle single-digits to low middle double-digits. I think in a lot of the larger deals on the enterprise side, and we talked about this in the last quarter too, is a lot of time, it's not so much about the price increase in these deals, but it's bringing them to the table to maybe add more users, buy more products.

是的。邁克爾，這是喬。目前，我們對全年推出該服務的現有客戶的價格上漲感到非常滿意。我認為它的範圍從我們談到的中低個位數到中低兩位數不等。我認為在企業方面的許多大型交易中，我們也在上個季度討論過這一點，這是很多時間，並不是這些交易的價格上漲，而是將它們帶到了談判桌上也許要添加更多用戶，購買更多產品。

And so what we're seeing overall is not necessarily an impact directly related to the price uplift, but basically seeing our ability to expand in these larger accounts, it's bringing really interesting conversations to the table. And so we feel like overall that the pricing changes we've made, especially upmarket have been really beneficial to Sprout.

因此，我們總體上看到的不一定是與價格上漲直接相關的影響，但基本上看到我們在這些更大的賬戶中擴張的能力，它帶來了非常有趣的對話。因此，我們總體認為，我們所做的定價變化，尤其是高端市場的定價變化，對 Sprout 確實有利。

Right. And if I just squeeze a quick one in here, just baked into your guidance, I guess what are your expectations in terms of like the demand environment? Is it just the same as you currently saw in 2Q, slight improvement or what are you expecting there?

正確的。如果我在這裡快速講一下，融入您的指導中，我想您對需求環境等方面的期望是什麼？與您目前在第二季度看到的情況相同，略有改善還是您對此有何期望？

So on the demand side, if we think of the top of the funnel and what we're seeing, we talked a little bit about this in our prepared remarks. We saw a little bit of pressure in the lower end of the business, the low value customers. I think with the strategic changes we made on the pricing side, we definitely anticipated a little bit lower new business on that front.

因此，在需求方面，如果我們考慮漏斗的頂部以及我們所看到的情況，我們會在準備好的評論中對此進行一些討論。我們在低端業務、低價值客戶中看到了一點壓力。我認為，隨著我們在定價方面做出的戰略變化，我們肯定預計這方面的新業務會有所下降。

But I think overall, from a demand standpoint, especially up in the mid market enterprise, It's never been stronger, right? We talked about the 50% uplift, 50% year-over-year increase in the enterprise business. We're talking about the ACV growth. So I think we're really happy with what the demand we're seeing in the part of the business we're focused on.

但我認為總體而言，從需求的角度來看，特別是在中端市場企業中，它從未如此強勁，對吧？我們談到了50%的提升，企業業務同比增長50%。我們正在談論 ACV 的增長。因此，我認為我們對我們所關注的業務部分所看到的需求感到非常滿意。

Our next question comes from the line of Clarke Jeffries from Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Clarke Jeffries。

First, just on the 1 billion plus revenue for calendar '28, I wanted to ask, how significant is Tagger in that number, or maybe another way of saying it is, is that a completely organic number with assets that you have today, maybe a slight kind of detail of that, no entry into any other material product categories, even if that was organic development? And then I have a follow-up.

首先，就28 日曆年超過10 億的收入而言，我想問一下，Tagger 在這個數字中的重要性有多大，或者也許另一種說法是，這是一個完全有機的數字，您今天擁有的資產，也許一個小小的細節，沒有進入任何其他材料產品類別，即使那是有機發展？然後我有一個後續行動。

Yes. So I think in our -- we talked about this a little bit in the prepared remarks, there's definitely the tagger organic business, standalone business in that projection. I think it's a little early for not for us to kind of predict how much of the Tagger cross-sell under the Sprout will go to that number. We think that's more upside. We'll talk a little bit more at Investor Day, but for now it's basically assumes kind of the organic side of the Tagger business with upside with the Sprout cross-sell.

是的。因此，我認為，我們在準備好的發言中對此進行了一些討論，該預測中肯定存在標記器有機業務、獨立業務。我認為現在預測 Tagger 在 Sprout 下的交叉銷售量將達到這個數字還為時過早。我們認為這更有好處。我們將在投資者日多談一點，但目前基本上假設 Tagger 業務的有機方面與 Sprout 交叉銷售有優勢。

And then Joe, reaching a 20% free cash flow margin by '28, I think that averages out to be maybe at the high-end of what EBIT expansion you're targeting. How linear will free cash flow improvement be? Would you expect this to be more back in weighted in terms of the improvement up to 20%? Any kind of color on the path there would be, would be helpful.

然後喬，到 28 年自由現金流利潤率達到 20%，我認為這可能是您目標息稅前利潤擴張的高端。自由現金流改善的線性程度如何？您是否期望這會在加權後提高最多 20%？路徑上的任何顏色都會有幫助。

Yes. We definitely think it's going to be more linear up through 2028 and a lot of that just has to be has to do with the way that our business has shifted up into the mid-market enterprise. We've talked about this, but the unit economics of that business are much stronger. The size of those deals and the length of those contracts are longer and so there's a lot of upside on the free cash flow side. So we feel like that's a pretty linear progression through 2028 versus running the business as is and then seeing this big uptick towards the back half. So I would expect that to be pretty even.

是的。我們肯定認為，到 2028 年，它會變得更加線性，而這很大程度上與我們的業務向中端市場企業轉移的方式有關。我們已經討論過這一點，但該業務的單位經濟效益要強大得多。這些交易的規模和合同的期限都較長，因此自由現金流方面有很大的上升空間。因此，我們覺得到 2028 年，這是一個相當線性的進展，而不是按原樣運營業務，然後看到下半年的大幅增長。所以我預計這會相當均勻。

Our final question comes from the line of Elizabeth Porter from Morgan Stanley.

我們的最後一個問題來自摩根士丹利的伊麗莎白·波特。

I want to ask again on Tagger, was there any sort of overlap with the customer base we should think about currently? I understand you aren't assuming any cross-sell in 2023 guidance. But how should we think about just the balance of benefits from the acquisition skewed to either landing more customers with this asset now in your portfolio versus the cross-sell opportunity?

我想再問一下 Tagger，我們目前應該考慮的客戶群是否有任何重疊？據我了解，您並未假設 2023 年指導中會出現任何交叉銷售。但是，我們應該如何考慮收購帶來的利益平衡，即通過現在在您的投資組合中的該資產吸引更多客戶與交叉銷售機會呢？

With 30,000 plus customers, there's certainly been some overlap, but I would categorize it as one where we think we have a lot of upside for both. So upside for both landing, net new customers for both organizations, as well as being able to cross-sell from SproutCore to Tagger and vice versa, going to Tagger customers and being able to sell Core Sprout. So we see quite a bit of opportunity on both sides of that. And as you might imagine with the overlap, that there was some opportunity for us to just go back to our customer base and get feedback from some of our customers that are leveraging the product, which made us even more confident about the fit with Tagger and Sprout.

擁有超過 30,000 名客戶，肯定存在一些重疊，但我將其歸類為我們認為兩者都有很大優勢的重疊。因此，這對於兩個組織的登陸、淨新客戶以及能夠從 SproutCore 到 Tagger 進行交叉銷售（反之亦然）、向 Tagger 客戶進行交叉銷售並能夠銷售 Core Sprout 都有好處。因此，我們在這兩個方面都看到了相當多的機會。正如您可能想像的那樣，我們有機會回到我們的客戶群並從使用該產品的一些客戶那裡獲得反饋，這使我們對 Tagger 和 Tagger 的適合性更加有信心。發芽。

And then hoping to get some color, just higher-level NRR trends that you guys may be seeing more recently. Across the software space, we are seeing just more optimization of spend, yet you're also kind of benefiting from the mix to higher, deeper-wallet customers. So any commentary on just how some of those positive or negative factors may be impacting your current NRR and the change in trajectory?

然後希望得到一些顏色，只是你們最近可能看到的更高級別的 NRR 趨勢。在整個軟件領域，我們看到了支出的更多優化，但您也可以從更高、錢包更深的客戶的組合中受益。那麼，對於這些積極或消極因素可能如何影響您當前的 NRR 和軌跡變化，有什麼評論嗎？

Yes. So I think Elizabeth, I think a couple of comments are one, I think when you think about the move up into the mid-market enterprise, and Ryan talked about that, the attach rates, 160 basis point improvement and the growth we're seeing there, we're really confident that the NRR we're seeing in that part of the market is really strong and actually improving.

是的。所以我認為伊麗莎白，我想有幾點評論是，我想當你考慮進入中端市場企業時，瑞安談到了這一點，附加率，160 個基點的改進和我們的增長看到這裡，我們非常有信心，我們在這部分市場中看到的NRR 非常強勁並且實際上正在改善。

And obviously that's offset probably by what we've talked about in the last couple of quarters is the turn on the low end of the market obviously will impact our overall NRR. But we're overall happy about the progress we're making up market, knowing that we made this strategic change that was going to kind of put pressure on the low-end of the market that impact NRR as well.

顯然，這可能被我們在過去幾個季度所討論的內容所抵消，即低端市場的轉變顯然會影響我們的整體NRR。但總的來說，我們對我們在市場上取得的進展感到高興，因為我們知道我們做出的這一戰略改變將給低端市場帶來壓力，從而影響 NRR。

I would now like to turn the call over to Justyn Howard for closing remarks.

我現在想將電話轉給賈斯汀·霍華德，讓其致閉幕詞。

All right. Yes, thank you. And thank you, everyone, for your time today. We appreciate the opportunity to be talking about and providing some more visibility into this important transition for us. We're certainly very excited about all of the positive momentum that we're seeing in the parts of the business that we're focused on and being able to see the benefits of a lot of the strategic changes that we're making. So we're excited to be able to continue to add clarity there and look forward to doing more of that.

好的。是的，謝謝。謝謝大家今天抽出時間。我們很高興有機會談論這一重要轉變並為我們提供更多的了解。我們當然對我們所關注的業務部分所看到的所有積極勢頭感到非常興奮，並且能夠看到我們正在做出的許多戰略變革的好處。因此，我們很高興能夠繼續提高清晰度，並期待做更多的事情。

Just as a reminder, September 27th, Investor Day, we'll look forward to talking more about the future, what we have planned, and giving some more visibility into how we're going to get to that billion dollar revenue mark, and a lot of the other exciting things that are happening in the business. So, we'll look forward to seeing you all there. Thanks, everyone, for your time today.

提醒一下，9 月 27 日，即投資者日，我們期待更多地談論未來、我們的計劃，並更清楚地了解我們將如何實現 10 億美元的收入大關，以及行業中正在發生的許多其他令人興奮的事情。因此，我們期待在那裡見到你們。謝謝大家今天抽出時間。

Thank you, ladies and gentlemen. This does conclude today's call. Thank you for your participation. You may now disconnect.

謝謝你們，女士們、先生們。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。