SolarWinds Corp (SWI) 2023 Q2 法說會逐字稿

Good morning, and welcome to the SolarWinds Second Quarter 2023 Earnings Call. My name is Briana, and I will be your conference operator today. Please note that this call is being recorded. (Operator Instructions). I will now turn the call over to Tim Karaca, Group President of Finance. You may begin your conference.

早上好，歡迎參加 SolarWinds 2023 年第二季度財報電話會議。我叫 Briana，今天我將擔任你們的會議操作員。請注意，此通話正在錄音。 （操作員說明）。我現在將把電話轉給集團財務總裁 Tim Karaca。您可以開始您的會議了。

Good morning, everyone, and welcome to the SolarWinds Second Quarter 2023 Earnings Call. With me today are Sudhakar Ramakrishna, our President and CEO, and Bart Kalsu, our CFO. Following our prepared remarks, we will have a question-and-answer session. This call is being simultaneously webcast on our Investor Relations website at investors.solarwinds.com. You can also find our earnings press release and a summary slide deck, which is intended to supplement our prepared remarks during today's call.

大家早上好，歡迎參加 SolarWinds 2023 年第二季度財報電話會議。今天與我在一起的有我們的總裁兼首席執行官 Sudhakar Ramakrishna 和我們的首席財務官 Bart Kalsu。在我們準備好的發言之後，我們將舉行問答環節。本次電話會議同時在我們的投資者關係網站 Investors.solarwinds.com 上進行網絡直播。您還可以找到我們的收益新聞稿和幻燈片摘要，旨在補充我們在今天的電話會議期間準備好的言論。

Please remember that certain statements made during this call are forward-looking statements, including those concerning our financial outlook, our market opportunities, our expectations regarding customer retention, our evolution to a subscription-first mentality and the timing of the phases of such evolution, our expectations regarding our partner ecosystem, the impact of the global economic and geopolitical environment on our business and our gross level of debt.

請記住，本次電話會議期間所做的某些陳述均為前瞻性陳述，包括有關我們的財務前景、市場機會、我們對客戶保留的期望、我們向訂閱優先心態的演變以及這種演變階段的時間安排的陳述，我們對合作夥伴生態系統的期望、全球經濟和地緣政治環境對我們業務的影響以及我們的總債務水平。

These statements are based on currently available information and assumptions, and we undertake no duty to update this information, expect as required by law. These statements are subject to a number of risks and uncertainties, including the numerous risks and uncertainties highlighted in today's earnings release and our filing with the SEC. Copies are available from the SEC on our Investor Relations website. We will discuss various non-GAAP financial measures on today's call, unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures. A reconciliation of the differences between GAAP and non-GAAP financial measures as well as the definition of other financial metrics discussed on today's call are available in our earnings press release and summary slide deck on the Investor Relations page of our website.

這些陳述基於當前可用的信息和假設，除法律要求外，我們不承擔更新此信息的義務。這些聲明受到許多風險和不確定性的影響，包括今天的收益報告和我們向 SEC 提交的文件中強調的眾多風險和不確定性。副本可從美國證券交易委員會的投資者關係網站上獲取。我們將在今天的電話會議上討論各種非公認會計原則財務指標，除非另有說明，否則當我們提到財務指標時，我們將指非公認會計原則財務指標。公認會計原則和非公認會計原則財務指標之間的差異以及今天電話會議上討論的其他財務指標的定義可在我們網站投資者關係頁面上的收益新聞稿和摘要幻燈片中找到。

Finally, we note that financial results discussed on today's call and in our earnings release are preliminary and pending final review by us and our external auditors and will be final once we file our quarterly report on Form 10-Q. With that, I will now turn the call over to Sudhakar.

最後，我們注意到，今天的電話會議和收益發布中討論的財務結果是初步的，有待我們和外部審計師的最終審查，一旦我們提交 10-Q 表格季度報告，該財務結果將是最終結果。現在，我將把電話轉給蘇達卡爾。

Thank you, Tim. Good morning, everyone, and thank you for joining us today. As always, I'd like to thank our employees, customers, partners and shareholders for their ongoing commitment to SolarWinds. We had another strong quarter building off the momentum we saw at the end of 2022 and into Q1 and positioning us well as we look to the second half of the year. I attribute the results to our broad portfolio of solutions, the compelling value we deliver to customers, the resiliency of our business model and our continued execution of our priorities. Second quarter highlights include strong subscription revenue and ARR growth, demonstrating the compounding positive effects of our subscription-first strategy. Growing contribution from our observability solutions in addition to growth in our service management and database monitoring product lines.

謝謝你，蒂姆。大家早上好，感謝您今天加入我們。一如既往，我要感謝我們的員工、客戶、合作夥伴和股東對 SolarWinds 的持續承諾。我們在 2022 年底和第一季度的勢頭基礎上又迎來了一個強勁的季度，並為我們展望下半年做好了準備。我將這一成果歸功於我們廣泛的解決方案組合、我們為客戶提供的令人信服的價值、我們業務模式的彈性以及我們對優先事項的持續執行。第二季度的亮點包括強勁的訂閱收入和 ARR 增長，展示了我們訂閱優先策略的複合積極影響。除了服務管理和數據庫監控產品線的增長之外，我們的可觀測性解決方案的貢獻也不斷增長。

Continued solid customer retention demonstrating the value proposition and stickiness of our solutions. And double-digit year-over-year adjusted EBITDA growth, along with increased margins highlighting the operating leverage in our business and our commitment to expense and operating discipline. I will now touch on some of these before turning it over to Bart for more color on the quarter and our financial outlook for Q3 and the full year 2023.

持續穩定的客戶保留證明了我們解決方案的價值主張和粘性。調整後的 EBITDA 同比實現兩位數增長，同時利潤率的增加凸顯了我們業務的運營槓桿以及我們對費用和運營紀律的承諾。現在，我將先談談其中的一些內容，然後再將其交給 Bart，以了解有關本季度的更多信息以及我們對第三季度和 2023 年全年的財務前景。

In Q2 2023, we delivered total revenues of $185 million, above the high end of the guidance range we provided and representing a 5% increase year-over-year. We are seeing the benefits of our subscription-first transformation and delivered second quarter subscription revenue growth of 44% and subscription ARR growth of 33%. As I've said before, our evolution to subscription is not just a business model change, but a way of delivering greater value to customers. Now that we are over a year into this transformation, we continue to see the benefits of this evolution.

2023 年第二季度，我們的總收入為 1.85 億美元，高於我們提供的指導範圍的上限，同比增長 5%。我們看到了訂閱優先轉型的好處，第二季度訂閱收入增長了 44%，訂閱 ARR 增長了 33%。正如我之前所說，我們向訂閱的演變不僅僅是業務模式的改變，而是為客戶提供更大價值的一種方式。現在我們已經進行這一轉變一年多了，我們繼續看到這種演變的好處。

In Q2, our in-quarter maintenance renewal rate was 93%, and our trailing 12-month renewal rate is now 94%. The trailing 12-month rate continues to be the highest since Q4 of 2019 showing continued improvement and reflecting the value of our solutions. We ended the second quarter of 2023 with 933 customers who have spent more than $100,000 with us in the last 12 months, an increase of 6% over the comparable period in the previous year. We are increasingly helping customers accelerate business transformation initiatives while improving productivity. In doing so, our customers continue to grow with us. Adjusted EBITDA grew 18% year-over-year to $79.1 million, representing an adjusted EBITDA margin of 43% and above the $69.5 million to $72.5 million outlook we gave for the quarter.

第二季度，我們的季度維護續訂率為 93%，過去 12 個月的續訂率為 94%。過去 12 個月的增長率仍然是 2019 年第四季度以來的最高水平，顯示出持續改善並反映了我們解決方案的價值。截至 2023 年第二季度，過去 12 個月內在我們這裡消費超過 10 萬美元的客戶有 933 名，比去年同期增長了 6%。我們越來越多地幫助客戶加速業務轉型計劃，同時提高生產力。通過這樣做，我們的客戶不斷與我們一起成長。調整後 EBITDA 同比增長 18% 至 7,910 萬美元，調整後 EBITDA 利潤率為 43%，高於我們為本季度給出的 6,950 萬至 7,250 萬美元預期。

Turning to some business highlights this quarter, I want to focus on a topic I'm sure is on many of your minds. Artificial intelligence or AI, and to highlight some recent industry recognitions, our SolarWinds Day Secured by Design event on Capitol Hill and our brand refresh. In prior calls, I described our AI ops capabilities. We have invested in AI-powered solutions for over 2 years and believe customers have been experiencing improved productivity and security by leveraging our AI ops innovations.

談到本季度的一些業務亮點，我想重點討論一個我相信很多人都關心的話題。人工智能或人工智能，並強調最近的一些行業認可，我們在國會山舉行的 SolarWinds Day Secured by Design 活動以及我們的品牌更新。在之前的電話會議中，我描述了我們的人工智能運營能力。我們對人工智能驅動的解決方案進行了兩年多的投資，並相信客戶通過利用我們的人工智能運營創新，已經體驗到了生產力和安全性的提高。

We believe SolarWinds is uniquely positioned to enable IT ops and DevOps teams to leverage AI-based technologies for many use cases across applications, networks, infrastructure, users, devices and databases. AI-driven solutions will play an increasingly significant role in enabling customers teams to accelerate the time to value and reduce the time to detect and remediate issues in their environment. We are developing new solutions designed for advanced DevOps and platform engineering teams, we believe will uniquely transform how organizations respond, manage and resolve incidents.

我們相信 SolarWinds 具有獨特的優勢，能夠幫助 IT 運營和 DevOps 團隊將基於 AI 的技術用於跨應用程序、網絡、基礎設施、用戶、設備和數據庫的許多用例。人工智能驅動的解決方案將發揮越來越重要的作用，幫助客戶團隊加快實現價值並減少檢測和修復環境中問題的時間。我們正在開發專為高級 DevOps 和平台工程團隊設計的新解決方案，我們相信這將獨特地改變組織響應、管理和解決事件的方式。

We are integrating our observability solutions and elements of service management to deliver these benefits to customers. In May, we announced the addition of transformative artificial intelligence and machine learning capabilities to our ITSM solutions. The new AI features include a service desk, AI virtual agent designed to answer user questions and troubleshooting. This is intended to reduce ticket volume by enabling users to remediate easier to solve issues such that IT practitioners can focus on more complex problems requiring their expertise.

我們正在整合我們的可觀測性解決方案和服務管理要素，以便為客戶帶來這些好處。 5 月，我們宣佈在 ITSM 解決方案中添加變革性人工智能和機器學習功能。新的人工智能功能包括服務台、旨在回答用戶問題和故障排除的人工智能虛擬代理。這樣做的目的是通過讓用戶能夠修復更容易解決的問題來減少故障單數量，以便 IT 從業人員可以專注於需要其專業知識的更複雜的問題。

In addition, SolarWinds was ranked as a strong performer in the recent Forrester Wave report for Process-Centric AI for IT operations published in June. Our AI capabilities are just one example of how we continuously evolve SolarWinds platform for our customers as they accelerate their digital transformation, drive automation, modernize applications and undertake cloud migration initiatives, all while reducing costs. In recent months, we have received awards for our innovations across our offerings portfolio and go-to-market enhancements. I also want to spotlight the role SolarWinds plays in addressing cybersecurity.

此外，在 6 月份發布的 Forrester Wave 報告中，SolarWinds 被評為 IT 運營以流程為中心的人工智能的表現強勁者。我們的人工智能功能只是我們如何為客戶不斷發展 SolarWinds 平台的一個例子，幫助他們加速數字化轉型、推動自動化、實現應用程序現代化並實施雲遷移計劃，同時降低成本。近幾個月來，我們因產品組合的創新和上市改進而獲得了獎項。我還想強調 SolarWinds 在解決網絡安全方面發揮的作用。

This quarter, we held our SolarWinds Day secured by design event in conjunction with Congressman, Darrell Issa; Congressman, Raja Krishnamoorthi; and CISA's Executive Assistant Director for Cybersecurity, Eric Goldstein.

本季度，我們與國會議員達雷爾·伊薩 (Darrell Issa) 聯合舉辦了由設計活動保障的 SolarWinds Day；國會議員 Raja Krishnamoorthi； CISA 網絡安全執行助理總監 Eric Goldstein。

During the event, we showcased the importance of public-private collaboration in securing our common infrastructure from cyber risks. I'm encouraged that the industry continues to become aware of and adopt the Secure by Design principles we established in early 2021. Our next-generation bill system, a key component of Secure by Design was recognized by the 2023 BIG Innovations Award and Cloud Security Awards. The Cloud Security Awards judge stated this cutting-edge technology sets a new standard for excellence in the industry. Separately, we announced that our next-generation bill system aligns with the National Institute of Standards and Technology, NIST guidance for secure software development. In this regard, we are in an early trend setter, leveraging our secure by design principles.

活動期間，我們展示了公私合作對於保護我們的公共基礎設施免受網絡風險的重要性。我感到鼓舞的是，整個行業繼續認識並採用我們在2021 年初制定的“安全設計”原則。我們的下一代賬單系統是“安全設計”的關鍵組成部分，獲得了2023 年BIG 創新獎和雲安全獎的認可獎項。雲安全獎評委表示，這項尖端技術為行業卓越樹立了新標準。另外，我們還宣布我們的下一代賬單系統符合美國國家標準與技術研究所 (NIST) 的安全軟件開髮指南。在這方面，我們利用我們的安全設計原則，處於早期趨勢引領者的地位。

This includes aligning our software development processes with NIST secure software development framework, SSDF and CISA's enduring security framework as outlined in the national cybersecurity strategy. While CISA will set the formal guidance for how software vendors self-attest to the SSDF later this fall, we believe we are ready today.

這包括使我們的軟件開發流程與國家網絡安全戰略中概述的 NIST 安全軟件開發框架、SSDF 和 CISA 持久安全框架保持一致。雖然 CISA 將於今年秋季晚些時候就軟件供應商如何向 SSDF 進行自我證明製定正式指南，但我們相信我們今天已經準備好了。

Lastly, we recently announced a new refreshed logo and brand to signify our ongoing evolution, portfolio expansion and customer empowerment. As the challenges our customers face have evolved in recent years and as the increased use of artificial intelligence has resulted in an increasingly complex hybrid and multi-cloud environments across industries, we now serve a broad customer base across IT ops, DevOps, SecOps and Cloud ops teams. Our new brand reflects our brand transformation, which has made us better equipped than ever to enrich the lives of our customers with simple, powerful and secure AI-based solutions that help improve productivity and reduce costs.

最後，我們最近宣布了一個全新的徽標和品牌，以表明我們不斷發展、產品組合擴展和客戶授權。近年來，隨著我們的客戶面臨的挑戰不斷變化，以及人工智能的使用增加導致各行業的混合雲和多雲環境日益複雜，我們現在為 IT 運營、DevOps、SecOps 和雲領域的廣泛客戶群提供服務行動團隊。我們的新品牌反映了我們的品牌轉型，這使我們比以往任何時候都更有能力通過簡單、強大且安全的基於人工智能的解決方案來豐富客戶的生活，從而幫助提高生產力並降低成本。

Now I'd like to remind you of the priorities we laid out for 2023 and to discuss our progress towards these priorities. We believe IT environments continue to grow in complexity, while budgets remain constrained, and therefore, customers value solutions that improve productivity and lower costs. I believe our comprehensive observability, service management, and database products and services are ideally suited to address these growing challenges. It remains my belief that by establishing all our ongoing innovations on the SolarWinds platform, we can deliver even greater simplicity to our customers while creating the ability to expand the lifetime value of our customer relationships.

現在，我想提醒您我們為 2023 年制定的優先事項，並討論我們在實現這些優先事項方面取得的進展。我們相信，IT 環境的複雜性不斷增加，而預算仍然受到限制，因此，客戶重視能夠提高生產力和降低成本的解決方案。我相信我們全面的可觀察性、服務管理以及數據庫產品和服務非常適合應對這些日益增長的挑戰。我仍然相信，通過在 SolarWinds 平台上建立我們所有持續的創新，我們可以為客戶提供更大的簡單性，同時創造擴大客戶關係終身價值的能力。

With that, our key near-term priorities are as follows: First, we continue to seek to drive subscription adoption across our business, which is seen in our strong subscription revenue and ARR growth results. We believe this is consistent with how our customers want to consume our products and that an increase in our subscription base provides an even more solid foundation for our revenue and margin expansion efforts.

因此，我們的近期主要優先事項如下：首先，我們繼續尋求推動整個業務的訂閱採用率，這從我們強勁的訂閱收入和 ARR 增長結果中可以看出。我們相信這符合我們的客戶消費我們產品的方式，並且我們訂閱基礎的增加為我們的收入和利潤擴張工作提供了更堅實的基礎。

Second, we continue to exercise expense discipline in a challenging macro environment by investing selectively while managing costs and improving our operating margins as reflected in our 18% adjusted EBITDA year-over-year growth in Q2.

其次，我們在充滿挑戰的宏觀環境中繼續實行費用紀律，在管理成本的同時進行選擇性投資，並提高我們的營業利潤率，第二季度調整後的 EBITDA 同比增長 18% 就反映了這一點。

Third, we remain very focused on customer retention and expansion efforts as evidenced by our improved renewal rates. And fourth, we continue to innovate on our SolarWinds platform organically and with our expanding ecosystem to bring even greater value to our customers. The AI capabilities and Secure by Design efforts I spoke about a moment ago are excellent examples of our progress.

第三，我們仍然非常注重客戶保留和擴張工作，我們提高的續訂率就證明了這一點。第四，我們繼續在 SolarWinds 平台上進行有機創新，並通過不斷擴大的生態系統為客戶帶來更大的價值。我剛才談到的人工智能功能和安全設計工作是我們進步的絕佳例子。

With that, I'll turn it over to Bart to expand on our financial performance and provide Q3 and an updated full year outlook. Bart?

這樣，我將把它交給 Bart，以擴展我們的財務業績，並提供第三季度和更新的全年展望。巴特？

Thanks, Sudhakar. We embarked on our subscription-first strategy in 2021. Historically, we sold on-premises licenses and maintenance to our customers. An important phase in our subscription transformation involves converting existing maintenance relationships to our hybrid cloud observability product, which offers a continuum to customers to adopt SaaS solutions as their business needs dictate. We started pushing hard on this strategy in the second half of last year and continue to build momentum on these conversions in 2023 coupled with new subscription sales.

謝謝，蘇達卡爾。我們於 2021 年開始實施訂閱優先策略。過去，我們向客戶出售本地許可證和維護。我們訂閱轉型的一個重要階段涉及將現有的維護關係轉換為我們的混合雲可觀測性產品，該產品為客戶提供了根據其業務需求採用 SaaS 解決方案的連續體。我們從去年下半年開始大力推行這一戰略，並在 2023 年繼續為這些轉換以及新的訂閱銷售創造動力。

The second phase began with the launch of SolarWinds Observability, our SaaS solution. So whether we sell hybrid cloud observability, which is an on-premise subscription, or SolarWinds observability, which is the SaaS version of the product, we believe this lays the foundation for even more recurring and predictable revenue and the opportunity to expand our lifetime value with customers. We now have 92% of our total revenue as recurring revenue. Turning to the numbers, we finished the second quarter with total revenue of $185 million which is a 5% increase compared to the prior year and above the total revenue range of outlook we provided of $177 million to $182 million. You will notice a meaningful shift in our revenue mix, which reflects our subscription transformation.

第二階段從推出我們的 SaaS 解決方案 SolarWinds Observability 開始。因此，無論我們銷售混合雲可觀測性（本地訂閱）還是SolarWinds 可觀測性（該產品的SaaS 版本），我們相信這都為獲得更多經常性和可預測收入以及擴大我們的終生價值的機會奠定了基礎。與客戶。現在，我們總收入的 92% 是經常性收入。說到數字，我們第二季度的總收入為 1.85 億美元，比上年增長 5%，高於我們提供的 1.77 億至 1.82 億美元的總收入預期範圍。您會注意到我們的收入組合發生了有意義的轉變，這反映了我們的訂閱轉型。

We continue to have a larger percentage of our sales as subscription products. We ended the second quarter with total ARR of $657 million, up 6% year-over-year. Our subscription ARR as of June 30th was $198 million, which is an increase of 33% year-over-year. This growth is mainly due to the execution of our subscription-first strategy and the continued conversion of a portion of our maintenance base to the hybrid cloud observability solution.

訂閱產品在我們的銷售額中繼續佔據較大比例。第二季度末，我們的總 ARR 為 6.57 億美元，同比增長 6%。截至 6 月 30 日，我們的訂閱 ARR 為 1.98 億美元，同比增長 33%。這一增長主要歸功於我們訂閱優先策略的執行以及我們的部分維護基礎持續轉換為混合雲可觀測性解決方案。

Digging into the revenue details, our second quarter subscription revenue was $53 million, up 44% year-over-year. Our subscription revenue growth reflects the ongoing success of our subscription-first efforts. We are also seeing the results of converting a portion of our maintenance base to the hybrid cloud observability product. We continue to convert maintenance customers at a higher than 1:1 ratio. As a reminder, as we transition to a subscription model, subscription revenue can be impacted by the timing and term of the deals. Maintenance revenue was $116 million in the second quarter, which is an increase of 2% from the prior year. We expect maintenance revenue will continue to be impacted by the conversion of a portion of our maintenance customers to subscriptions and by our focus on structuring new sales as subscription products. These changes are consistent with our stated strategy, which we believe will improve already robust business fundamentals.

深入研究收入細節，我們第二季度的訂閱收入為 5300 萬美元，同比增長 44%。我們的訂閱收入增長反映了我們訂閱優先努力的持續成功。我們還看到了將部分維護基礎轉換為混合雲可觀測性產品的結果。我們繼續以高於 1:1 的比例轉化維護客戶。提醒一下，當我們過渡到訂閱模式時，訂閱收入可能會受到交易時間和期限的影響。第二季度維護收入為1.16億美元，比上年增長2%。我們預計維護收入將繼續受到部分維護客戶轉換為訂閱以及我們專注於將新銷售構建為訂閱產品的影響。這些變化符合我們既定的戰略，我們相信這將改善本已強勁的業務基礎。

Our maintenance renewal rate is 94% on a trailing 12-month basis and was 93% in the quarter for the second quarter. Our customer base continues to be very loyal and we are focused and pleased with our ability to get maintenance renewal rates back to historical levels. Note that as we convert maintenance customers to subscription arrangements, we exclude those customers from our renewal rate calculation. As a result of the growth in subscription revenue and strong maintenance renewal rates, we now have 92% of our total revenue as recurring revenue. For the second quarter, license revenue was $16 million, representing a decline of approximately 38% compared to the second quarter of 2022.

我們過去 12 個月的維護續訂率為 94%，第二季度為 93%。我們的客戶群仍然非常忠誠，我們對將維護續訂率恢復到歷史水平的能力感到專注和滿意。請注意，當我們將維護客戶轉換為訂閱安排時，我們將這些客戶排除在我們的續訂率計算之外。由於訂閱收入的增長和強勁的維護續訂率，我們現在的經常性收入佔總收入的 92%。第二季度許可收入為 1600 萬美元，較 2022 年第二季度下降約 38%。

Remember that our subscription model transformation has been in place for over 1 year now, and therefore, we expect new perpetual license sales performance will continue to be negatively impacted. Our increased subscription sales more than offset the decline in license revenue in the quarter. We finished the second quarter of 2023 with 933 customers, 6% year-over-year growth who have spent more than $100,000 with us in the last 12 months. I'm also pleased to report that we delivered another quarter of strong non-GAAP profitability. Second quarter adjusted EBITDA was $79.1 million, growing 18% year-over-year, representing an adjusted EBITDA margin of 43% and coming in well above the $69.5 million to $72.5 million outlook we gave for the quarter. This is a continuation of our commitment to higher profitability in both absolute dollars and in margins.

請記住，我們的訂閱模式轉型已經實施了一年多，因此，我們預計新的永久許可證銷售業績將繼續受到負面影響。我們增加的訂閱銷售額足以抵消本季度許可收入的下降。截至 2023 年第二季度，我們有 933 名客戶，同比增長 6%，他們在過去 12 個月內在我們這里花費了超過 100,000 美元。我還很高興地報告，我們又一個季度實現了強勁的非公認會計準則盈利能力。第二季度調整後 EBITDA 為 7910 萬美元，同比增長 18%，調整後 EBITDA 利潤率為 43%，遠高於我們為本季度給出的 6950 萬至 7250 萬美元的預期。這是我們對提高絕對美元盈利能力和利潤率的承諾的延續。

Excluded from adjusted EBITDA in the second quarter, a onetime cost of approximately $7.8 million relating to certain noncash restructuring charges as well as litigation and governmental investigation costs and other professional fees related to the sunburst incident, offset by expected insurance reimbursement. We expect cyber incident-related costs to continue to fluctuate in future quarters and these cyber costs are difficult to predict.

第二季度調整後的EBITDA 中不包括與某些非現金重組費用以及訴訟和政府調查費用以及與sunburst 事件相關的其他專業費用有關的約780 萬美元的一次性成本，並被預期的保險報銷所抵消。我們預計未來幾個季度與網絡事件相關的成本將繼續波動，並且這些網絡成本難以預測。

Looking ahead, we will continue to monitor the environment closely and we plan to hire selectively and continue to manage our cost in a disciplined manner. Turning to our balance sheet. Net leverage at June 30th is down to 3.5x our trailing 12 months adjusted EBITDA compared to 3.8x as of March 31st. Our cash and cash equivalents and short-term investments balance was $178 million at the end of the second quarter, bringing our net debt to approximately $1.1 billion.

展望未來，我們將繼續密切監控環境，計劃選擇性聘用，並繼續以嚴格的方式管理成本。轉向我們的資產負債表。 6 月 30 日的淨槓桿率降至過去 12 個月調整後 EBITDA 的 3.5 倍，而截至 3 月 31 日的淨槓桿率為 3.8 倍。截至第二季度末，我們的現金和現金等價物以及短期投資餘額為 1.78 億美元，使我們的淨債務達到約 11 億美元。

On the debt front, we made $650 million in voluntary debt prepayments in 2022. Our debt matures in February of 2027, and we continue to seek to bring down the leverage further with adjusted EBITDA expansion and evaluate opportunities for additional debt payments. I will now walk you through our outlook before turning it over to Sudhakar for some final thoughts. I will start with our third quarter guidance and then discuss what it means for the full year.

在債務方面，我們在2022 年自願提前償還了6.5 億美元的債務。我們的債務將於2027 年2 月到期，我們將繼續尋求通過調整後的EBITDA 擴張進一步降低杠桿，並評估額外債務支付的機會。現在，我將向您介紹我們的展望，然後將其交給 Sudhakar 進行一些最後的思考。我將從第三季度的指導開始，然後討論它對全年的意義。

In formulating guidance, we are optimistic that the momentum we experienced in the first half of 2023 will continue to allow us to grow our top line in 2023. Driven by our expanded product portfolio and ongoing improvements in execution, as well as our strong installed base and customer retention. We believe the diversity of our customer base across sizes and industries and our focus on attractive growth markets should allow us to weather challenging economic conditions. That said, although we generally continue to see healthy demand and commitment from our customers, we are mindful of the macro headwinds affecting all areas of IT spending and the potential for deterioration this year. Accordingly, our outlook carefully considers macroeconomic conditions and the impact of our subscription-first business model transition.

在製定指導意見時，我們樂觀地認為，我們在2023 年上半年經歷的勢頭將繼續使我們能夠在2023 年實現營收增長。在我們擴大的產品組合和持續改進的執行力以及我們強大的安裝基礎的推動下和客戶保留。我們相信，我們不同規模和行業的客戶群的多樣性以及我們對有吸引力的增長市場的關注應該使我們能夠應對充滿挑戰的經濟條件。也就是說，儘管我們總體上繼續看到客戶的健康需求和承諾，但我們注意到影響 IT 支出所有領域的宏觀阻力以及今年惡化的可能性。因此，我們的展望仔細考慮了宏觀經濟狀況以及我們的訂閱優先業務模式轉型的影響。

We remain focused on our strategy and what we can control and are committed to continuing to improve our profitability profile in 2023. For the third quarter, we expect total revenue to be in the range of $182 million to $186 million, representing 3% year-over-year growth at the midpoint. Adjusted EBITDA for the third quarter is expected to be approximately $74 million to $76.5 million, representing 7.5% year-over-year growth at the midpoint, and non-GAAP fully diluted earnings per share is projected to be $0.17 to $0.19 per share, assuming an estimated 167.3 million fully diluted shares outstanding. And finally, our outlook for the third quarter assumes a non-GAAP tax rate of 26%, and we expect to pay approximately $9.5 million in cash taxes during the quarter.

我們仍然專注於我們的戰略和我們可以控制的事情，並致力於在2023 年繼續改善我們的盈利狀況。對於第三季度，我們預計總收入將在1.82 億美元至1.86 億美元之間，佔去年同期的3%。同比增長處於中點。第三季度調整後 EBITDA 預計約為 7400 萬美元至 7650 萬美元，中間值同比增長 7.5%，假設非 GAAP 完全攤薄每股收益預計為 0.17 美元至 0.19 美元。估計有1.673 億股完全稀釋後的已發行股票。最後，我們對第三季度的展望假設非 GAAP 稅率為 26%，我們預計在該季度支付約 950 萬美元的現金稅。

For the full year, we are raising our previously provided guidance and now expect total revenue to be in the range of $740 million to $748 million, representing 3% year-over-year growth at the midpoint. This represents an increase to the previously issued guidance of $725 million to $740 million. We are again increasing the full year adjusted EBITDA to be between $308 million to $313 million, representing an 11% year-over-year growth at the midpoint. This is compared to the previously provided guidance for the full year of $295 million to $305 million. We will continue to make selective investments consistent with our priorities and remain very committed to improving efficiency and profitability. To control what we can control and in parallel to focus on top line growth, as we have made meaningful investments in our product portfolio and go-to-market strategy and believe that these investments are starting to pay dividends.

對於全年，我們提高了之前提供的指導，目前預計總收入將在 7.4 億美元至 7.48 億美元之間，中間值同比增長 3%。這意味著之前發布的指導意見增加了 7.25 億美元至 7.4 億美元。我們再次將全年調整後 EBITDA 提高至 3.08 億美元至 3.13 億美元，中間值同比增長 11%。相比之下，之前提供的全年指導為 2.95 億美元至 3.05 億美元。我們將繼續根據我們的優先事項進行選擇性投資，並繼續致力於提高效率和盈利能力。為了控制我們可以控制的事情，同時專注於收入增長，因為我們對我們的產品組合和進入市場戰略進行了有意義的投資，並相信這些投資開始帶來紅利。

Non-GAAP fully diluted earnings per share is projected to be $0.76 to $0.79 per share, assuming an estimated 166.5 million fully diluted shares outstanding. And our full year and third quarter guidance assumes a euro to dollar exchange rate of 1.08:1. With that, I'll turn the call back over to Sudhakar for his closing remarks.

假設完全稀釋已發行股票數量估計為 1.665 億股，非 GAAP 完全稀釋每股收益預計為每股 0.76 至 0.79 美元。我們的全年和第三季度指導假設歐元兌美元匯率為 1.08:1。接下來，我將把電話轉回給蘇達卡爾，讓他作結束語。

Thank you, Bart. I'm very excited about our team's progress as evidenced by another strong quarterly performance on both revenue and adjusted EBITDA. Following the transformational changes we made across our organization and product portfolio in 2022, we believe we are emerging as a much stronger player. We are making significant progress in our initiatives to deliver compelling ongoing value to customers via our subscription-first mindset, solutions built to deliver the best time to value, best time to detect issues and best time to remediate issues in a multi-cloud environments via simple, powerful and secure solutions, expanding our margins even as we deliver top line growth and evolve to a more predictable subscription revenue.

謝謝你，巴特。我對我們團隊的進步感到非常興奮，收入和調整後 EBITDA 的季度表現再次強勁就證明了這一點。繼 2022 年對我們的組織和產品組合進行轉型變革後，我們相信我們正在成為一個更強大的參與者。我們在計劃方面取得了重大進展，通過訂閱優先的思維方式為客戶提供引人注目的持續價值，而構建的解決方案旨在通過以下方式在多雲環境中提供最佳價值實現時間、檢測問題的最佳時間以及修復問題的最佳時間：簡單、強大且安全的解決方案，在我們實現營收增長並發展到更可預測的訂閱收入的同時，也擴大了我們的利潤。

The macro environment continues to present challenges to the broader software industry. Even so, I'm confident that our strategy, portfolio and customer success orientation will appeal to customers across all geographies and verticals. We will continue to exercise expense discipline, invest selectively and strive to deliver revenue growth and expanding margins. We are increasing our guidance for 2023 across total revenue and adjusted EBITDA as you heard from Bart, on the heels of a strong Q2 and first half 2023 performance.

宏觀環境繼續給更廣泛的軟件行業帶來挑戰。即便如此，我相信我們的戰略、產品組合和客戶成功導向將吸引所有地區和垂直領域的客戶。我們將繼續實行費用紀律，有選擇地投資，努力實現收入增長和利潤率擴大。正如您從巴特那裡聽到的那樣，繼 2023 年第二季度和上半年的強勁業績之後，我們正在提高 2023 年總收入和調整後 EBITDA 的指導。

In fact, our revised low end of outlook for the year is at or above the previously indicated high end of our guidance ranges on both total revenue and adjusted EBITDA. Again, I thank our employees, partners, customers and shareholders for their commitment to SolarWinds. Bart and I are now happy to address your questions.

事實上，我們修訂後的今年前景下限等於或高於之前指出的總收入和調整後 EBITDA 指導範圍的上限。我再次感謝我們的員工、合作夥伴、客戶和股東對 SolarWinds 的承諾。巴特和我現在很高興回答您的問題。

(Operator Instructions) Your first question comes from Sanjit Singh with Morgan Stanley.

（操作員說明）您的第一個問題來自摩根士丹利的 Sanjit Singh。

Nice to see you guys are reasserting the historical renewal rates and the guidance coming up, definitely nice to see. I had a couple of questions on the macro environment. In your script, you guys are pointing to -- what seems like continued challenges in the spend environment, as you compare Q2 versus Q1, did the environment sort of -- was it more and more of the same? Did things sort of tick down? Or did you see any sort of improvement with respect to new business?

很高興看到你們重申歷史續訂率和即將推出的指導，絕對很高興看到。我對宏觀環境有幾個問題。在你們的腳本中，你們指出——當你比較第二季度和第一季度時，支出環境中似乎存在持續的挑戰，環境是否有點——是否越來越相同？事情有進展嗎？或者您是否看到新業務有任何改進？

Sanjit, thanks for the question. Between Q1 and Q2, for the most part, I would say the macro environment has been similar. What I can say about our business is that the business and the demand, as I've indicated previously, is robust. In fact, the pipeline that we all measure continues to improve. And as I've stated previously, the only variability that we see in this broader macro environment is some of the larger deals take a little longer to close. However, the diversity and the breadth of our business is what gives us the foundation for the strong performance because we have a large number of mid-market customers. We have the larger customers. So we participate in a broad spectrum of the customer base, resulting in the solid foundation that we are building.

桑吉特，謝謝你的提問。在第一季度和第二季度之間，我認為宏觀環境在很大程度上是相似的。關於我們的業務，我可以說的是，正如我之前所說，業務和需求都很強勁。事實上，我們所有人衡量的管道都在持續改進。正如我之前所說，我們在更廣泛的宏觀環境中看到的唯一變化是一些較大的交易需要更長的時間才能完成。然而，我們業務的多樣性和廣度是我們取得強勁業績的基礎，因為我們擁有大量的中端市場客戶。我們有較大的客戶。因此，我們參與了廣泛的客戶群，從而為我們正在建立的堅實基礎奠定了基礎。

Understood. And that makes sense. If I take that comment on the execution and the economic backdrop that you guys are operating in. So I looked at the 100,000 customer cohort this quarter, it did decline, I think, by 12% quarter-on-quarter. What sort of the factors associated with the central decline in the 100,000 customer cohort?

明白了。這是有道理的。如果我對你們所處的執行和經濟背景做出這樣的評論。所以我觀察了本季度的 100,000 名客戶群體，我認為它確實比上一季度下降了 12%。哪些因素與 10 萬客戶群體的集中下降相關？

Absolutely. I'll highlight a couple of factors that will be fairly straightforward to digest. One is, Sanjit, as we convert more and more customers to the subscription arrangements. What you'll notice is that the size of the subscription deals tend to be a little smaller than the perpetual deals, especially in the first year. So that is one factor that is contributing to it. As you pointed out, it's a fairly small number.

絕對地。我將強調幾個非常容易理解的因素。一是 Sanjit，因為我們將越來越多的客戶轉變為訂閱安排。您會注意到，訂閱交易的規模往往比永久交易要小一些，尤其是在第一年。這是造成這種情況的因素之一。正如您所指出的，這是一個相當小的數字。

The other point I would highlight is while it has gone down from the previous quarter, it is still 6% up from last year. So that's another way to think about that. We continue to be largely a mid-market customer -- as a mid-market vendor, as I've highlighted previously from a strategic standpoint, but we've been going upmarket with our GSI partners and channel partners. So some of the deals tend to be lumpy, especially the larger ones, but the overall trend is very positive for us.

我要強調的另一點是，雖然比上一季度有所下降，但仍比去年增長了 6%。這是另一種思考方式。我們仍然主要是中端市場客戶——作為中端市場供應商，正如我之前從戰略角度強調的那樣，但我們一直在與 GSI 合作夥伴和渠道合作夥伴一起進軍高端市場。因此，有些交易往往是不穩定的，尤其是規模較大的交易，但總體趨勢對我們來說非常積極。

Your next question comes from Rob Oliver with Baird.

您的下一個問題來自 Rob Oliver 和 Baird。

I had 2 Sudhakar. Just first for you. In your prepared remarks, you talked a little bit about some of the products getting traction with subscription, database management, IT and observability. I was wondering if you could give us a little bit more color and granularity around where you're seeing the most traction among those products, the most early success and what we might expect in terms of trajectory of adoption of those products? And then I had a quick follow-up for Bart.

我有 2 個 Sudhakar。只為你先。在您準備好的發言中，您談到了一些在訂閱、數據庫管理、IT 和可觀察性方面受到關注的產品。我想知道您是否可以為我們提供更多的信息和粒度，告訴我們您在這些產品中最受關注的地方、最早的成功以及我們對這些產品的採用軌蹟的預期？然後我對巴特進行了快速跟進。

Rob, first of all, thanks for your question. I hope you're doing well. In terms of -- let's take -- I'll take a segment by segment at a high level and provide some color if you have a follow-on, happy to answer as well. The database portfolio -- the database monitoring portfolio has been doing well across the spectrum. When I say across the spectrum, we have some very large customers who are adopting it as well as the mid-market base including our cloud motions with our partnerships with the cloud service providers.

羅布，首先感謝你的提問。我希望你一切都好。就——讓我們來說——我將在高水平上逐段進行分析，如果你有後續的話，我會提供一些顏色，我也很樂意回答。數據庫產品組合——數據庫監控產品組合在各個領域都表現良好。當我說跨領域時，我們有一些非常大的客戶正在採用它，以及中端市場基礎，包括我們的雲動議以及我們與雲服務提供商的合作夥伴關係。

The second part I'd highlight on the observability piece is we outlined a hybrid cloud observability solution, which we launched, in fact, almost a year ago now, that's been gaining a very fast traction largely with customers who are looking for tools consolidation, hybrid cloud deployment options, continuum to SaaS-based solutions because we are unique in the sense that we can help our customer self-host the solution and convert them into SaaS over time as their business needs dictate, which becomes increasingly compelling in this macro environment. So that's driving a lot of the traction.

我要強調的可觀察性部分的第二部分是我們概述了一個混合雲可觀察性解決方案，事實上，我們在大約一年前推出了該解決方案，它在很大程度上受到了尋求工具整合的客戶的快速關注，混合雲部署選項，基於SaaS 的解決方案的連續體，因為我們是獨一無二的，因為我們可以幫助客戶自行託管解決方案，並隨著時間的推移根據他們的業務需求將其轉換為SaaS，這在這個宏觀環境中變得越來越引人注目。所以這帶來了很大的吸引力。

And then the service management solution is a 100% SaaS-based solution that is ideal for the mid-market and the value prop really there is, unlike other service management solution where the time to value takes many quarters and in some cases, years, we are able to deliver value to customers in days, so that's what's driving the stickiness of it. But the most interesting and exciting thing that we are doing, Rob, is not looking at them as discrete products, which, of course, they are and can continue to be for a long period of time, but they all reside increasingly on the SolarWinds' platform. That gives us the ability to land and expand and provide customers more unified solutions and experiences, which then reduces their cost and increases their productivity.

然後，服務管理解決方案是一個100% 基於SaaS 的解決方案，非常適合中端市場，並且真正具有價值支撐，與其他服務管理解決方案不同，其他服務管理解決方案的價值實現時間需要多個季度，在某些情況下需要幾年，我們能夠在幾天內為客戶提供價值，這就是推動其粘性的原因。但是，Rob，我們正在做的最有趣和最令人興奮的事情並不是將它們視為離散產品，當然，它們現在是並且可以在很長一段時間內繼續如此，但它們都越來越多地駐留在SolarWinds 上' 平台。這使我們能夠落地和擴展，並為客戶提供更統一的解決方案和體驗，從而降低他們的成本並提高他們的生產力。

Your next question comes from Matt Hedberg with RBC Capital Markets.

您的下一個問題來自加拿大皇家銀行資本市場的馬特·赫德伯格（Matt Hedberg）。

And yes, I'll offer my congrats again, great results for this quarter and the guidance moving higher is also great to see. I had a question about maintenance conversion, maybe, Bart, you might have mentioned it's converting at a higher 1:1 conversion ratio, which is great to see. I'm curious, are there things that you're doing specifically to maybe drive higher maintenance conversions? Or is this more customer led at this point?

是的，我將再次表示祝賀，本季度取得了出色的業績，並且指引走高也很令人高興。我有一個關於維護轉換的問題，也許，巴特，你可能提到它以更高的 1:1 轉換率進行轉換，這很高興看到。我很好奇，您是否正在專門做一些事情來提高維護轉化率？或者此時更多的客戶是主導的嗎？

Matt, I'll take that as well and give you some color. When Bart describes it as converting at a higher rate, what it is, is we are not converting like-for-like. So let me give you an example. Let's say, you are a network monitoring customer of ours with a dollar of maintenance coming up due. Typically, when you convert, you're converting to our hybrid cloud observability solution, which not only gives you network monitoring, but also, let's say, systems monitoring.

馬特，我也會接受它並給你一些顏色。當巴特將其描述為以更高的速率進行轉換時，它實際上是我們沒有進行同類轉換。讓我舉個例子。假設您是我們的網絡監控客戶，即將支付一美元的維護費用。通常，當您轉換時，您將轉換為我們的混合雲可觀測性解決方案，該解決方案不僅為您提供網絡監控，而且還為您提供系統監控。

So typically, when we convert, we are converting to higher value add, which is the reason why I don't look at our subscription transformation as simply a business model transformation, it is more a value model transformation. Customers get more capability, are able to consolidate more tools, are able to experience lower overall costs and improve their productivity. So that's what's driving our conversion factors. And my belief is that we will continue to show that given the large size of the maintenance base for several years to come.

因此，通常情況下，當我們進行轉換時，我們正在轉換為更高的附加值，這就是為什麼我不將我們的訂閱轉型視為簡單的業務模式轉型，它更多的是價值模式轉型。客戶獲得更多功能，能夠整合更多工具，能夠體驗更低的總體成本並提高生產力。這就是推動我們轉化因子的因素。我相信，考慮到未來幾年維護基地的規模，我們將繼續證明這一點。

Great. That's great to hear. And then Sudhakar you started (inaudible) prepared remarks with the investments that you guys have been making with AI -- within AI for the past 2 years. I'm curious, where are you on that investment spectrum? I assume it's sort of an ongoing initiative. But a year's time from now, how much more do you think AI will be infused in the total product stack? I have to imagine, particularly for your customer base, it has to be a huge opportunity for efficiency gains and whether it's even security efficacy side. So just kind of curious about where we are in that investment cycle?

偉大的。聽到這個消息我很高興。然後 Sudhakar 開始（聽不清）準備了關於你們過去兩年在人工智能領域進行的投資的評論。我很好奇，您在投資領域處於什麼位置？我認為這是一項持續的舉措。但一年後，您認為人工智能將在整個產品堆棧中註入多少？我必須想像，特別是對於您的客戶群而言，這必須是提高效率以及安全效率方面的巨大機會。那麼只是好奇我們在這個投資週期中處於什麼位置？

Absolutely. The way I describe it is in 2021, it started at 0, and we bootstrapped it. These days and going forward, I expect it to be much more in a steady-state mode. I don't think we have the need to pour a lot more money into it, but most likely, we'll just maintain it at this point and continually add capabilities. And the reason for being able to do that was '21 and '22 was a heavy lift in setting up our platform capabilities. Now it's a matter of what I'd call a flywheel motion in terms of ongoing innovations across the spectrum.

絕對地。我描述它的方式是在 2021 年，它從 0 開始，我們引導它。如今以及未來，我預計它會更加處於穩態模式。我認為我們不需要投入更多的資金，但最有可能的是，我們現在只會維護它並不斷增加功能。能夠做到這一點的原因是 '21 和 '22 在建立我們的平台能力方面取得了重大進展。現在的問題是我所說的飛輪運動，即跨領域的持續創新。

Your next question comes from Erik Suppiger with JMP Securities.

您的下一個問題來自 JMP 證券的 Erik Suppiger。

Yes. Thanks for taking my question. First off, good to see the debt ratio -- the net leverage ratio coming down. Do you have a target for that? And any change in terms or any update in terms of timing for that? And then secondly, you're talking about transitioning your -- the breadth of products onto your SaaS platform. Where are you in terms of that development process? Clearly, you've got the observability working, but where are you in terms of the breadth of your portfolio?

是的。感謝您提出我的問題。首先，很高興看到負債率——淨槓桿率下降。你有這方面的目標嗎？條款有任何變化或時間安排有任何更新嗎？其次，您正在談論將您的廣泛產品轉移到您的 SaaS 平台上。就開發過程而言，您處於什麼階段？顯然，您的可觀察性已經發揮作用，但就您的投資組合的廣度而言，您的情況如何？

Thanks for the questions. I'll take the first one real quick on the leverage. Yes, good improvement this quarter. It's due to a couple of things. Our continued growth in our cash balance brought our net leverage down. And then EBITDA expansion obviously helps as well. So you combine those things in 3.5x is where we ended the second quarter. We've spoken publicly, our goal is to get down below 3x over the -- in the next -- I think we said over the next couple of years. Obviously, if we continue to perform as we have, that will happen sooner rather than later.

感謝您的提問。我會盡快利用槓桿來進行第一個操作。是的，本季度取得了良好的進步。這是由於以下幾件事造成的。我們現金餘額的持續增長降低了我們的淨槓桿率。 EBITDA 擴張顯然也有幫助。因此，將這些因素結合起來就是我們第二季度結束時的 3.5 倍。我們已經公開表示，我們的目標是在未來幾年內將增長率降至 3 倍以下。顯然，如果我們繼續保持現有的表現，這種情況遲早會發生。

And Erik, our strategy and main use of cash continues to be focused on debt paydown because the organic portfolio that we have built should serve our growth objectives. Of course, we'll continue to stay open for inorganic as well, but the primary focus is debt paid out.

埃里克，我們的戰略和現金的主要用途仍然集中在償還債務上，因為我們建立的有機投資組合應該服務於我們的增長目標。當然，我們也將繼續對無機資產持開放態度，但主要焦點是償還債務。

Now coming to your question about the platform. As I've indicated previously, our service management platform is a 100% SaaS platform. We've released our observability as [SaaS] October of 2022. And we continue to expand its capabilities. And as this year progresses, more of our solutions will reside on the SolarWinds' platform. When I say more of our solutions, that already includes today our database observability, our application monitoring and observability solutions, increasingly our security network and infrastructure solutions as well. So the team is on a fairly rapid pace towards building all of our future capabilities on our SolarWinds platform. And that will continue to serve as a great foundation for us to not only evolve customers, but also acquire new customers as we continually have been doing.

現在來回答您有關平台的問題。正如我之前指出的，我們的服務管理平台是 100% SaaS 平台。我們已於 2022 年 10 月發布了我們的可觀察性 [SaaS]。並且我們將繼續擴展其功能。隨著今年的進展，我們的更多解決方案將駐留在 SolarWinds 的平台上。當我說更多我們的解決方案時，這已經包括今天我們的數據庫可觀察性、我們的應用程序監控和可觀察性解決方案，以及越來越多的我們的安全網絡和基礎設施解決方案。因此，該團隊正在以相當快的速度在 SolarWinds 平台上構建我們所有的未來功能。這將繼續成為我們發展客戶和獲取新客戶的良好基礎，就像我們一直在做的那樣。

Your next question comes from Terry Tillman with Truist Securities.

您的下一個問題來自 Truist Securities 的 Terry Tillman。

This is Connor Passarella on for Terry. First one, I just wanted to come back to the AI topic. So on the AI virtual agent that's going to part of Service Desk. I know it's early in the life cycle, but I'm just curious on how we should think about the monetization of an opportunity in a product like this? And maybe what the initial feedback has been from your customer base since the announcement? And then I have a follow-up.

我是特里的康納·帕薩雷拉。首先，我想回到人工智能主題。因此，人工智能虛擬代理將成為服務台的一部分。我知道現在還處於生命週期的早期，但我只是好奇我們應該如何考慮這樣的產品中機會的貨幣化？自公告發布以來，您的客戶群的初步反饋可能是什麼？然後我有一個後續行動。

I'll step back a little bit and reinforce a couple of other points as well. While we added that to the service desk and announced it more recently as one of our AI extensions. The AI extensions that we've been building relates back to our broader monitoring and observability solution set as well. In fact, one of the very first releases of AI ops that we created was to support the alert stacking capabilities of our customers.

我將退後一步並強調其他幾點。我們將其添加到服務台，並於最近宣布將其作為我們的人工智能擴展之一。我們一直在構建的人工智能擴展也與我們更廣泛的監控和可觀察性解決方案集相關。事實上，我們創建的人工智能操作的第一個版本就是支持客戶的警報堆疊功能。

All of us have heard of the term alert fatigue. Customers are getting alerts left, right and center and do not know how to prioritize, creating both productivity and cost headaches as well as security headaches. So the first releases of them, which started, in fact, in 2022, we're all focused on how do we improve alert stacking, how do we help them get to the right issues faster, how do we do a better issue resolution, improve productivity and security.

我們所有人都聽說過“警覺疲勞”這個詞。客戶會收到左側、右側和中心的警報，但不知道如何確定優先級，從而造成生產力和成本問題以及安全問題。因此，它們的第一個版本實際上是在 2022 年開始的，我們都專注於如何改進警報堆棧，如何幫助他們更快地找到正確的問題，如何更好地解決問題，提高生產力和安全性。

So think of what we -- we've just done with the digital assistant as an extension of our AI road map and while it's early days, the feedback from our customers has been very positive because increasingly what we're doing is that our service management solution becomes a full and integrated capability for the mid-market. The other fact I would highlight here is that we are a vendor that's uniquely combining some of the observability capabilities with our service management portfolio where we are not only able to detect issues for customers but also automatically remediate them. So that's a unique value proposition that will resonate very strongly in the mid-market from my perspective.

所以想想我們剛剛用數字助理做的事情，作為我們人工智能路線圖的延伸，雖然還處於早期階段，但我們客戶的反饋非常積極，因為我們越來越多地做的是我們的服務管理解決方案成為中端市場的全面集成功能。我在這裡要強調的另一個事實是，我們是一家獨特地將一些可觀察性功能與我們的服務管理產品組合相結合的供應商，我們不僅能夠為客戶檢測問題，還能夠自動修復這些問題。因此，從我的角度來看，這是一個獨特的價值主張，將在中端市場產生強烈的共鳴。

Got it. That's really helpful. I understand. Maybe just as a follow-up on the international side with Europe and APJ. I was just curious on how about opportunities continue to progress both the opening of the new data centers you talked about last quarter? And maybe what would be some continued investment look like in these regions?

知道了。這真的很有幫助。我明白。也許只是作為歐洲和亞太及日本國際方面的後續行動。我只是好奇您上季度談到的新數據中心的開放是否有機會繼續取得進展？也許這些地區的持續投資會是什麼樣子？

Yes. I would say we are well staffed to capture the opportunity in EMEA and APJ, both through our own people as well as an increasing and expanding set of channel partners through our transformed channel program. Many of our large GSI customers are also, as you know, based in the APJ region. What I can also highlight is that our pipeline continues to grow at an accelerated pace in EMEA. And the only variability that I will refer to is what I have previously alluded to, which is because of the macro situation in EMEA, some of the deal conversion cycles have been a bit more protracted. But what's helping us is the diversity of our customer base, the reach that we have now built both with our people as well as our channel partners.

是的。我想說的是，我們擁有充足的人員配備，可以通過我們自己的員工以及通過我們轉型的渠道計劃不斷增加和擴大的渠道合作夥伴來抓住歐洲、中東和非洲和亞太及日本地區的機會。如您所知，我們的許多大型 GSI 客戶也位於亞太及日本地區。我還可以強調的是，我們的產品線在歐洲、中東和非洲地區繼續加速增長。我要提到的唯一可變性是我之前提到的，這是由於歐洲、中東和非洲地區的宏觀形勢，一些交易轉換週期有點漫長。但對我們有幫助的是我們客戶群的多樣性，以及我們現在與我們的員工以及渠道合作夥伴建立的影響力。

Your next question comes from Kash Rangan with Goldman Sachs.

您的下一個問題來自高盛的卡什·蘭根 (Kash Rangan)。

This is Jacob Staffel for Kash Rangan. Good to see the quarter, the beat and the true raise is good to see. I wanted to ask about the -- the approach you're taking to hiring, you've said that you've taken a little bit more of a prudent approach to investments and maybe adding headcount. So can you give any directional guidance around where head count might be specifically like quota-carrying reps is maybe like on a year-over-year or quarter-over-quarter basis?

我是卡什·蘭根 (Kash Rangan) 的雅各布·斯塔費爾 (Jacob Staffel)。很高興看到這個季度，節拍和真正的加薪很高興看到。我想問一下你們在招聘方面採取的方法，您說過你們對投資採取了更加謹慎的方法，也許還增加了員工人數。那麼，您能否就人員數量可能特別像配額代表的同比或環比情況提供任何方向性指導？

Jacob, I'll give you a broader response to it. We were committed to selective investments and ongoing operational discipline. I believe we are staying true to that, at the same time, making the investments needed to capture the market opportunity that we have ahead of us. And in that process, have been able to show both revenue growth and significant EBITDA expansion. So that will continue to be our strategy going forward, which is selective is the operative term and discipline across the board.

雅各布，我會給你一個更廣泛的回應。我們致力於選擇性投資和持續的運營紀律。我相信，我們會堅持這一點，同時進行必要的投資，以抓住我們面前的市場機會。在此過程中，我們實現了收入增長和 EBITDA 的顯著擴張。因此，這將繼續是我們未來的戰略，這是有選擇性的，是全面的操作術語和紀律。

In terms of where we are making investments, we will continue to look for investments in expanding and accelerating our product portfolio as well as the go-to-market capabilities, although increasingly we are leveraging our channel partners as well to get increased leverage.

就我們的投資領域而言，我們將繼續尋求投資來擴大和加速我們的產品組合以及進入市場的能力，儘管我們也越來越多地利用我們的渠道合作夥伴來獲得更大的影響力。

Awesome. Okay. And then another question around the sequential decline and large customers. You mentioned that there is the dynamic at play of when they convert to subscription, that deal might be smaller than 100,000. Can you talk about how many of those 12 customers this dynamic applied to in 2Q?

驚人的。好的。然後是關於連續下降和大客戶的另一個問題。您提到，當他們轉換為訂閱時，交易量可能會小於 100,000。您能否談談第二季度這 12 名客戶中有多少人應用了這種動態？

I don't have the exact specifics Jacob. We may have to come back to you on that.

我沒有確切的細節，雅各布。我們可能需要再聯繫您。

There are no further questions at this time. I will now turn the call back over to Sudhakar Ramakrishna.

目前沒有其他問題。我現在將把電話轉回給蘇達卡爾·羅摩克里希納。

Thanks, again, and thank you all for joining our call, and we look forward to continuing to be in touch.

再次感謝大家加入我們的通話，我們期待繼續保持聯繫。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

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。