Upland Software Inc (UPLD) 2025 Q2 法說會逐字稿

Thank you for standing by, and welcome to the Upland Software second-quarter 2025 earnings call. (Operator Instructions) The conference call will be recorded and simultaneously webcast at investor.uplandsoftware.com, and a replay will be available there for 12 months.

感謝您的支持，歡迎參加 Upland Software 2025 年第二季財報電話會議。（操作員指示）電話會議將被錄音並同時在 investor.uplandsoftware.com 上進行網路直播，重播將在該網站上保留 12 個月。

By now, everyone should have access to the second quarter 2025 earnings release, which was distributed today at 8:05 AM Central Time. If you've not received the release, it's available on Upland's website.

現在，每個人都應該可以看到 2025 年第二季財報，該報告於今天中部時間上午 8:05 發布。如果您尚未收到該新聞稿，可以在 Upland 的網站上取得。

I'd now like to turn the call over to Jack McDonald, Chairman and CEO of Upland Software. Please go ahead, sir.

現在我想將電話轉給 Upland Software 董事長兼執行長 Jack McDonald。先生，請繼續。

Thank you, and welcome to our Q2 2025 earnings call. I'm joined by Mike Hill, our CFO. On today's call, I will start with a Q2 review. And following that, Mike will provide some detail on the Q2 numbers and our guidance, and then we'll open it up for Q&A. But before we get started, Mike will read the safe harbor statement.

謝謝，歡迎參加我們的 2025 年第二季財報電話會議。我們的財務長 Mike Hill 也和我一起出席。在今天的電話會議上，我將從第二季的回顧開始。接下來，麥克將提供有關第二季度數據和我們的指導的一些細節，然後我們將開放問答環節。但在我們開始之前，麥克將宣讀安全港聲明。

All right. Thank you, Jack. During today's call, we will include statements that are considered forward-looking within the meanings of the securities laws. A detailed discussion of the risks and uncertainties associated with such statements is contained in our periodic reports filed with the SEC.

好的。謝謝你，傑克。在今天的電話會議中，我們將加入證券法所定義的前瞻性聲明。我們向美國證券交易委員會提交的定期報告中包含了與此類聲明相關的風險和不確定性的詳細討論。

The forward-looking statements made today are based on our views and assumptions and on information currently available to Upland management. We do not intend or undertake any duty to release publicly any updates or revisions to any forward-looking statements.

今天所做的前瞻性陳述是基於我們的觀點和假設以及 Upland 管理層目前掌握的資訊。我們不打算或承擔任何義務公開發布任何前瞻性聲明的更新或修訂。

On this call, Upland will refer to non-GAAP financial measures that when used in combination with GAAP results, provide Upland management with additional analytical tools to understand its operations. Upland has provided reconciliations of non-GAAP measures to the most comparable GAAP measures in our press release announcing our financial results, which are available on the Investor Relations section of our website.

在本次電話會議上，Upland 將參考非 GAAP 財務指標，這些指標與 GAAP 結果結合使用，可為 Upland 管理層提供額外的分析工具來了解其營運情況。Upland 在宣布財務表現的新聞稿中提供了非 GAAP 指標與最具可比性的 GAAP 指標的對帳表，這些對帳表可在我們網站的「投資者關係」部分查閱。

Please note that we are unable to reconcile any forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort. And with that, I'll turn the call back over to Jack.

請注意，我們無法將任何前瞻性的非 GAAP 財務指標與其直接可比較的 GAAP 財務指標進行協調，因為目前如果不付出不合理的努力就無法獲得完成協調所需的資訊。說完這些，我會把電話轉回給傑克。

All right. Thanks, Mike. Here's the headlines. In Q2, we beat our revenue and adjusted EBITDA guidance midpoint. Significantly, we returned to positive core organic growth. So we're starting to see the benefits of our focused growth strategy zeroing in on markets where we've got the strongest competitive advantage, higher margins and largest growth opportunities. Now as a part of that, we have divested a number of assets over the last year, 18 months. And so if you look at our year-over-year declines in total and recurring revenue, those declines were primarily due to the divestitures that we've completed to streamline and to focus our business.

好的。謝謝，麥克。以下是標題。在第二季度，我們的營收和調整後的 EBITDA 預期中位數均超過了預期。值得注意的是，我們的核心有機成長恢復了正成長。因此，我們開始看到集中成長策略帶來的好處，該策略將重點放在我們擁有最強競爭優勢、更高利潤率和最大成長機會的市場。作為其中的一部分，我們在過去的 18 個月中剝離了一些資產。因此，如果你看我們總收入和經常性收入的年減，你會發現這些下降主要是因為我們為精簡和集中業務而完成的資產剝離。

But the growth rate of our retained core assets has turned positive. So that's a meaningful milestone for the business. Q2 2025 adjusted EBITDA of $13.6 million resulted in adjusted EBITDA margin of 25%. Now that's a 500 basis point increase over our adjusted EBITDA margin of 20% in Q2 of 2024. So as we have divested assets as a part of our growth strategy and focused our business, we have divested our lowest margin assets, and now we're starting to see adjusted EBITDA margins come up as a result, and Mike will talk about this in the guidance, but we see adjusted EBITDA margins moving to north of 30% in Q3.

但我們保留的核心資產的成長率已經轉為正值。這對企業來說是一個有意義的里程碑。2025 年第二季調整後 EBITDA 為 1,360 萬美元，調整後 EBITDA 利潤率為 25%。現在，這比我們 2024 年第二季 20% 的調整後 EBITDA 利潤率增加了 500 個基點。因此，當我們將資產剝離作為成長策略的一部分並集中精力於業務時，我們剝離了利潤率最低的資產，現在我們開始看到調整後的 EBITDA 利潤率因此上升，Mike 將在指導中討論這一點，但我們看到調整後的 EBITDA 利潤率在第三季度將升至 30% 以上。

Free cash flow for the second quarter remained strong at $2.7 million, and that was burdened by about $7 million of onetime divestiture-related expenses. Those onetime divestiture-related expenses were mostly related to the termination of a legacy vendor outsourcing contract for R&D that we no longer needed now with the streamlined business and our India center of excellence being fully up and running. Terminating that contract cost us a little cash upfront, but it is one of the factors that is driving the improvement in our go-forward margins that I just referenced here in Q2 and Q3 and going forward.

第二季的自由現金流保持強勁，為 270 萬美元，但受到約 700 萬美元一次性資產剝離相關費用的影響。這些一次性的資產剝離相關費用主要與終止遺留的研發供應商外包合約有關，隨著業務的精簡和印度卓越中心的全面投入運營，我們現在不再需要這份合約。終止合約使我們前期損失了一些現金，但這是推動我們未來利潤率提高的因素之一，我剛才在第二季和第三季以及未來提到這一點。

We welcomed 100 new customers to Upland in the second quarter, including 12 new major customers. We also expanded relationships with 263 existing customers, 28 of which were major expansions. These new and expanded relationships continue to be well distributed across our AI-powered product portfolio. So it's been a good first half 2025 with increased core organic growth and adjusted EBITDA margin expansion. And as I say, we expect these trends to continue and accelerate through the second half of 2025.

我們在第二季度迎來了 100 位新客戶，其中包括 12 位新的主要客戶。我們也擴大了與 263 個現有客戶的關係，其中 28 個是重大擴展。這些新的和擴展的關係繼續良好地分佈在我們由人工智慧驅動的產品組合中。因此，2025 年上半年表現良好，核心有機成長增加，調整後 EBITDA 利潤率擴大。正如我所說，我們預計這些趨勢將在 2025 年下半年持續並加速。

On the product front in Q2, I'd note that we earned 68 badges in G2's Summer 2025 reports, reflecting strong performance across the product portfolio. Our AI-powered knowledge management solutions, Upland Panviva and Upland RightAnswers continued to receive multiple badges. Upland BA Insight, our AI enablement solution increased its recognition this quarter, while Upland Qvidian, our AI-powered RFP response software, also maintained strong momentum in the reports.

在第二季的產品方面，我注意到我們在 G2 的 2025 年夏季報告中獲得 68 枚徽章，反映了整個產品組合的強勁表現。我們的人工智慧知識管理解決方案 Upland Panviva 和 Upland RightAnswers 繼續獲得多個徽章。我們的 AI 支援解決方案 Upland BA Insight 本季度獲得了更高的認可，而我們的 AI 驅動的 RFP 響應軟體 Upland Qvidian 在報告中也保持了強勁勢頭。

Upland continues to drive innovation across the portfolio with recent product enhancements. Upland InterFAX accelerated a major release focused on new PCI compliance efforts, while Upland Panviva unveiled enhancements, including Digital Orchestrator and integration with Microsoft Copilot Studio.

Upland 透過最近的產品改進繼續推動整個產品組合的創新。Upland InterFAX 加速發布了專注於新的 PCI 合規性工作的重大版本，而 Upland Panviva 則推出了增強功能，包括 Digital Orchestrator 和與 Microsoft Copilot Studio 的整合。

Upland Adestra introduced AI-powered subject line updates, launched integrations with Salesforce and Shopify, and is seeing strong momentum with Adestra Audiences. Meanwhile, Upland InGenius' integration with ServiceNow launched and Upland RO Innovation announced two new AI enhancements for sales win content generation and summarization. So AI enablement, AI innovation across the product portfolio.

Upland Adestra 推出了由人工智慧驅動的主題行更新，啟動了與 Salesforce 和 Shopify 的集成，並在 Adestra Audiences 中看到了強勁的發展勢頭。同時，Upland InGenius 與 ServiceNow 的整合正式啟動，Upland RO Innovation 也宣布推出兩個新的 AI 增強功能，用於銷售勝利內容的產生和摘要。因此，人工智慧的支援和人工智慧創新貫穿整個產品組合。

We're proud to be included in the 2025 Gartner Market Guide for Customer Service Knowledge Management Systems. We believe that Upland continued recognition in this guide underscores our commitment to delivering AI-driven knowledge management solutions that empower customer service teams with fast, accurate information to improve customer experiences.

我們很榮幸被列入 2025 年 Gartner 客戶服務知識管理系統市場指南。我們相信，Upland 在本指南中的持續認可強調了我們致力於提供由人工智慧驅動的知識管理解決方案，為客戶服務團隊提供快速、準確的信息，以改善客戶體驗。

Subsequent to the end of Q2, we successfully completed the refinancing of our debt, extending the maturity to July of 2031. We had significant interest from multiple high-quality lenders, and we are pleased to be partnered with private credit direct lender, Sound Point Capital Management. After extensive lender due diligence, Sound Point validated our AI-focused products. And as a part of that refinancing transaction, we paid down an additional $18 million of debt principal and established a new $30 million revolving credit facility, further strengthening our balance sheet, enhancing liquidity and supporting our growth strategy.

第二季結束後，我們成功完成了債務再融資，將債務期限延長至 2031 年 7 月。我們獲得了多家優質貸款機構的濃厚興趣，並且很高興能與私人信貸直接貸款機構 Sound Point Capital Management 合作。經過廣泛的貸方盡職調查後，Sound Point 驗證了我們以人工智慧為中心的產品。作為再融資交易的一部分，我們額外償還了 1800 萬美元的債務本金，並建立了新的 3000 萬美元循環信貸額度，進一步加強了我們的資產負債表，增強了流動性並支持了我們的成長策略。

So to recap, we've made some dramatic improvements in the business over the past 12 to 18 months. We have streamlined our product portfolio with a focus on markets where we can drive consistent growth and higher margins and profitability. We are AI enabling our product portfolio. Our adjusted EBITDA margins are expanding dramatically.

總而言之，在過去的 12 到 18 個月裡，我們的業務取得了顯著的進步。我們精簡了產品組合，重點放在能夠實現持續成長、提高利潤率和獲利能力的市場。我們利用人工智慧來支援我們的產品組合。我們的調整後 EBITDA 利潤率正在大幅擴大。

We have turned the corner here in Q2 and are generating positive core organic growth. And we've strengthened our balance sheet by paying down $242 million of debt since the beginning of last year and now extending the maturity of our debt by six years through our refinancing, and we continue to lower our debt leverage and again, see that deleveraging continuing into the future, and we have boosted our liquidity with our new revolver.

我們在第二季度已經走出了困境，並正在實現積極的核心有機成長。自去年年初以來，我們已償還了 2.42 億美元的債務，並透過再融資將債務期限延長了六年，從而增強了我們的資產負債表，我們繼續降低債務槓桿率，並且再次看到去槓桿化持續到未來，我們還透過新的循環信貸提高了流動性。

So with that, I am going to turn the call back over to Mike.

因此，我將把電話轉回給麥克。

All right. Thank you, Jack. I think Jack covered most of the points on the financials for the quarter, so I'll just make a few additional comments here. For the Q2 income statement, revenues were as expected when taking into consideration our recent divestitures.

好的。謝謝你，傑克。我認為傑克已經涵蓋了本季度財務狀況的大部分要點，因此我只想在這裡做一些補充評論。對於第二季損益表，考慮到我們最近的資產剝離，收入符合預期。

Q2 gross margins increased from Q1 as expected as a result of higher margins realized on our ongoing product lines. Our adjusted EBITDA and EBITDA margin came in as expected with our adjusted EBITDA margin of 25%, up from 20% from the second quarter of 2024. We see adjusted EBITDA margin expanding to over 30% in the second half of 2025 for full year adjusted EBITDA margin of around 27%.

由於我們現有產品線的利潤率較高，第二季毛利率較第一季有所成長，符合預期。我們的調整後 EBITDA 和 EBITDA 利潤率符合預期，調整後的 EBITDA 利潤率為 25%，高於 2024 年第二季的 20%。我們預計，到 2025 年下半年，調整後的 EBITDA 利潤率將擴大至 30% 以上，全年調整後的 EBITDA 利潤率將達到 27% 左右。

For cash flow for the second quarter of 2025, GAAP operating cash flow was $3.3 million and free cash flow was $2.7 million. Our Q2 operating and free cash flow included around $7 million of onetime divestiture-related expenses without which our GAAP operating and our free cash flow would have been greater. In addition, we had some onetime leasehold improvements, capital expenditures during Q2 as a result of our corporate headquarters office move, and we expect the CapEx to reduce back down to normal levels here in Q3 and going forward. Our full year 2025 target free cash flow is around $20 million.

2025 年第二季的現金流量方面，GAAP 營運現金流為 330 萬美元，自由現金流為 270 萬美元。我們第二季的營運和自由現金流包括約 700 萬美元的一次性資產剝離相關費用，如果沒有這些費用，我們的 GAAP 營運和自由現金流將會更大。此外，由於公司總部辦公室搬遷，我們在第二季度進行了一些一次性租賃改善和資本支出，我們預計資本支出將在第三季及以後回落至正常水平。我們 2025 年全年的目標自由現金流約為 2000 萬美元。

On the balance sheet, at the end of Q2, we had outstanding net debt of approximately $217 million, factoring in the approximately $41 million of cash on our balance sheet. At the end of Q2, our gross debt was approximately $258 million. As mentioned earlier, we successfully refinanced all of our outstanding debt on July 25. In connection with this refinancing, we paid down an additional $18 million of outstanding debt. So after this refinancing, our total outstanding debt is $240 million compared to the $294 million as of the end of last year, December 31, 2024.

在資產負債表上，截至第二季末，我們的未償淨債務約為 2.17 億美元，其中資產負債表上有約 4,100 萬美元的現金。截至第二季末，我們的總債務約為 2.58 億美元。如前所述，我們於 7 月 25 日成功為所有未償還債務進行了再融資。透過此次再融資，我們又償還了 1,800 萬美元的未償債務。因此，在此次再融資後，我們的未償還債務總額為 2.4 億美元，而截至去年年底（2024 年 12 月 31 日）的未償還債務總額為 2.94 億美元。

And now our net leverage after the refinancing is about 3.9 times. Our cash balance after the refinancing is approximately $26 million. Given the normal puts and takes of collections and payables during the remainder of Q3, we're projecting our cash balance at the end of Q3 to be around $18 million. The cash balance plus our new $30 million undrawn revolver gives us ample liquidity.

現在我們再融資後的淨槓桿率約為3.9倍。再融資後的現金餘額約為 2,600 萬美元。考慮到第三季剩餘時間內收款和應付款項的正常進出，我們預計第三季末的現金餘額約為 1,800 萬美元。現金餘額加上我們新的 3000 萬美元未提取循環信貸額度為我們提供了充足的流動資金。

Now for guidance. Our core organic growth outlook is projected to improve to approximately 3% in the second half of 2025. That growth rate assumes that we continue to have no macro disruptions from the tariffs. For the quarter ending September 30, 2025, we expect reported total revenue to be between $46.8 million and $52.8 million, including subscription and support revenue between $44.6 million and $49.6 million for a decline in total revenue of 25% at the midpoint from the quarter ended September 30, 2024. Now this year-over-year decline is primarily due to divestitures completed to streamline and focus our business.

現在尋求指導。我們的核心有機成長前景預計到 2025 年下半年將提高至約 3%。這一成長率假設我們不會繼續受到關稅造成的宏觀幹擾。截至 2025 年 9 月 30 日的季度，我們預計報告的總收入將在 4,680 萬美元至 5,280 萬美元之間，其中訂閱和支援收入在 4,460 萬美元至 4,960 萬美元之間，與截至 2024 年 9 月 30 日的季度相比，中期總收入將下降 25%。現在，這種同比下降主要是由於為精簡和集中業務而完成的資產剝離。

Third quarter 2025 adjusted EBITDA is expected to be between $14.5 million and $17.5 million, which at the midpoint is a 14% increase as compared to the quarter ended September 30, 2024. Third quarter 2025 adjusted EBITDA margin is expected to be 32% at the midpoint, which is an 1,100 basis point increase from the 21% adjusted EBITDA margin for the quarter ended September 30, 2024.

預計 2025 年第三季調整後 EBITDA 在 1,450 萬美元至 1,750 萬美元之間，與截至 2024 年 9 月 30 日的季度相比，中間值增長 14%。預計 2025 年第三季調整後 EBITDA 利潤率中位數為 32%，比截至 2024 年 9 月 30 日的季度的 21% 調整後 EBITDA 利潤率增加 1,100 個基點。

For the full year ending December 31, 2025, we expect reported total revenue to be between $211.8 million and $223.8 million, including subscription and support revenue between $200 million and $210 million, for a decline in total revenue of 21% at the midpoint from the year ended December 31, 2024. Now again, this year-over-year decline is primarily due to the divestitures completed to streamline and focus our business.

截至 2025 年 12 月 31 日的全年，我們預計報告的總收入將在 2.118 億美元至 2.238 億美元之間，其中訂閱和支援收入在 2 億美元至 2.1 億美元之間，與截至 2024 年 12 月 31 日的年度相比，中期總收入將下降 21%。現在再次出現同比下降，主要是因為為精簡和集中業務而完成的資產剝離。

Full year 2025 adjusted EBITDA is expected to be between $55.8 million and $61.8 million, which at the midpoint is an increase of 6% from last year. Full year adjusted EBITDA margin is expected to be 27% at the midpoint, which is a 700 basis point increase from the 20% adjusted EBITDA margin again for last year.

預計 2025 年全年調整後 EBITDA 在 5,580 萬美元至 6,180 萬美元之間，中位數較去年增長 6%。預計全年調整後 EBITDA 利潤率中位數為 27%，較去年 20% 的調整後 EBITDA 利潤率再次增加 700 個基點。

Additionally, I will note that we did lower the midpoint of our full year 2025 total revenue and adjusted EBITDA guidance ranges by $700,000 as a result -- really as a result of just lower forecasted professional services revenue. So the midpoint of our subscription and support revenue guidance range remains unchanged.

此外，我要指出的是，我們確實將 2025 年全年總收入的中點和調整後的 EBITDA 指導範圍降低了 70 萬美元——這實際上是由於預測的專業服務收入較低。因此，我們的訂閱和支援收入指導範圍的中點保持不變。

And with that, I'll pass the call back to Jack.

說完這些，我就把電話轉回給傑克。

All right. Thanks, Mike. So that really concludes the call, the prepared comments. If there are any questions, we'd be happy to take them.

好的。謝謝，麥克。這次通話和準備好的評論到此就結束了。如果有任何問題，我們很樂意解答。

We will now begin the question-and-answer session. (Operator Instruction)

我們現在開始問答環節。（操作員指令）

Scott Berg, Needham.

史考特·伯格，尼德姆。

Hi Jack and Mike, thanks for taking my questions today. Both of them, I guess, kind of surround the refinancing in the quarter, and then I've got probably one quick one on the core business. On the refinance, I guess, first of all, why is private credit the right option versus maybe the other facilities that were out there? And then as you think about excess cash flow over the next, I don't know, a couple of years, do you save and reserve those for M&A? Or is the plan to probably use those to further pay down the debt?

嗨，傑克和麥克，感謝你們今天回答我的問題。我想，這兩個問題都與本季的再融資有關，然後我可能會快速談核心業務。關於再融資，我想首先，為什麼私人信用是正確的選擇，而不是其他現有的融資方式？然後，當您考慮未來幾年的過剩現金流時，我不知道，您是否會將其保存並保留用於併購？或者計劃可能使用這些來進一步償還債務？

Yes. So Scott, let me take that first one. So regarding private credit, our previous credit facility was a Term Loan B financing. And given that we've paid down so much debt, again, paid down $242 million of debt since the beginning of last year, this current term facility at $240 million, it's just really below the size range for the TLB market -- credit market. So it made sense for us to move to private credit, and we're excited and feel great about our new partnership here with Sound Point.

是的。那麼史考特，讓我先回答這個問題。關於私人信貸，我們先前的信貸安排是定期貸款 B 融資。考慮到我們已經償還瞭如此多的債務，自去年年初以來已經償還了 2.42 億美元的債務，目前的定期貸款額度為 2.4 億美元，這確實低於 TLB 市場（信貸市場）的規模範圍。因此，轉向私人信貸對我們來說是合理的，我們對與 Sound Point 的新合作關係感到非常興奮和滿意。

And Scott, there was -- I think a second part of your question on capital allocation. And cash flow is going to be directed toward deleveraging. We don't anticipate M&A at this point.

史考特，我認為你的問題的第二部分是關於資本配置的。現金流將用於去槓桿。我們目前預計不會發生併購。

Okay. Fair enough. And then I guess my follow-up question is on the core business here going forward. You're projecting 3% growth in the second half, which obviously is great news. But how do we think about maybe the products or part of the portfolio that is selling well today in this macro. You guys have obviously made a lot of changes in the product and the go-to-market. But what's been most exciting that you're kind of looking at in the second half?

好的。很公平。然後我想我的後續問題是關於未來的核心業務。您預測下半年成長率將達到 3%，這顯然是個好消息。但是，在宏觀層面上，我們如何看待目前銷售良好的產品或產品組合的一部分。你們顯然對產品和行銷做出了很多改變。但是您認為下半年最令人興奮的事情是什麼？

We've streamlined our business around knowledge and content management, and we are AI enabling our portfolio. And we are seeing opportunities in large enterprises as our products become an integral part of larger enterprise LLM implementations. So we're seeing headless knowledge management opportunities for products like Upland RightAnswers. Upland BA Insight provides core connectors to enterprise data systems, which are a necessary part of large enterprise AI implementations.

我們圍繞知識和內容管理簡化了業務，並利用人工智慧支援我們的產品組合。隨著我們的產品成為大型企業 LLM 實施不可或缺的一部分，我們在大型企業中看到了機會。因此，我們看到了 Upland RightAnswers 等產品的無頭知識管理機會。Upland BA Insight 為企業資料系統提供核心連接器，是大型企業 AI 實施的必要組成部分。

We're also seeing demand for upgrades for our RFP automation product, Qvidian, with our new AI assist capability. So we think AI can be a tailwind for the business, both in terms of a number of our products playing key roles as enabling technologies for larger enterprise AI implementations and the fact that we are improving and innovating our products across the board with AI, creating upsell and expansion opportunities within the existing customer base.

我們也看到了對我們的 RFP 自動化產品 Qvidian 進行升級的需求，以及我們新的 AI 輔助功能。因此，我們認為人工智慧可以成為業務的順風，不僅因為我們的許多產品在支援大型企業人工智慧實施的技術方面發揮關鍵作用，而且我們正在利用人工智慧全面改進和創新我們的產品，在現有客戶群中創造追加銷售和擴張機會。

Very helpful. Thanks Jack. And thanks for taking my questions.

非常有幫助。謝謝傑克。感謝您回答我的問題。

DJ Hynes, Canaccord.

DJ Hynes，Canaccord。

Hey Jack, hey Mike. Scott hit on a couple of the topics I was going to ask about, but I want to just put a finer point on your comments around M&A. It was unclear to me if that was a near-term comment or if we look out a year from now, kind of dust has settled on the divestitures, the business is obviously in a much better spot, organically growing, nicely profitable. Is there a future in which you resume M&A activity? Or is this going to be kind of a perpetually organic growth story?

嘿，傑克，嘿，麥克。斯科特談到了我想問的幾個話題，但我只想更詳細地闡述你關於併購的評論。我不清楚這是否是短期評論，或者如果我們展望一年後，資產剝離已經塵埃落定，業務顯然處於更好的狀態，有機增長，盈利能力良好。未來你們會恢復併購活動嗎？或者這會是一個永久有機成長的故事？

I think it's a near-term comment. I think we are focused on driving organic growth, AI enabling the portfolio and continuing to delever here over the next year. But as you say, when the dust settles from all of that, if we see attractive opportunities, then we would look at them together with our capital partners. And it is possible that we could look at M&A. I don't see it for this year, but as you say, it's possible a year or so out once the dust settles.

我認為這是一個近期的評論。我認為我們專注於推動有機成長、人工智慧賦能投資組合以及在明年繼續去槓桿。但正如你所說，當所有這一切塵埃落定時，如果我們看到有吸引力的機會，那麼我們會與我們的資本合作夥伴一起研究它們。我們有可能考慮併購。我認為今年不會出現這種情況，但正如你所說，一旦塵埃落定，一年左右後就有可能出現這種情況。

Yes. Okay. Makes sense. And then, Jack, I'd love to just kind of hear broadly how you feel about the demand environment, kind of what you're seeing from a pipeline build perspective with some of the marketing enhancements you've made to the business?

是的。好的。有道理。然後，傑克，我很想聽聽你對需求環境的看法，從通路建設的角度來看，你對業務進行的一些行銷改進有何看法？

Demand environment seems fine. As I say, we, I think, positioned the product so that AI can be a tailwind for us. We continue an investment in Demand Gen, and we are seeing increasing -- if you look at the business over the last 5 quarters, increases in marketing sourced bookings, so both our outbound and inbound efforts. We've recently rolled out intent data to supplement the books of business that our outbound SDRs are using. And so we are optimistic about the potential for that new technology to increase our pipeline generation. So that's the basic picture as we stand here today.

需求環境似乎良好。正如我所說，我認為我們對產品的定位是讓人工智慧成為我們的順風。我們繼續對 Demand Gen 進行投資，並且我們看到了成長——如果你看一下過去 5 個季度的業務，就會發現行銷來源的預訂量有所增加，因此我們的出站和入站努力都在增加。我們最近推出了意向資料來補充我們的外部 SDR 正在使用的業務帳簿。因此，我們對這項新技術增加管道產量的潛力持樂觀態度。這就是我們今天所站在這裡的基本情況。

Yes. That's great. Well, congrats on all the progress. Clearly, a cleaner and better picture emerging here. Thank you.

是的。那太棒了。好吧，恭喜你取得的所有進展。顯然，這裡呈現了更清晰、更美好的景象。謝謝。

(Operator Instructions)

（操作員指示）

Jeff Van Rhee with Craig-Hallum Capital Group.

Craig-Hallum Capital Group 的 Jeff Van Rhee。

Great, thanks. A couple for you, Mike, and then one for you, Jack. Just Mike, on the free cash flow, I think the previous guide had been $15 million, so you're bumping it up here. Just walk me through what drove the change, kind of what were the puts and takes that impacted that number?

太好了，謝謝。給你幾件，​​麥克，還有一件給你，傑克。麥克，關於自由現金流，我認為之前的指導價是 1500 萬美元，所以你在這裡將其提高了。請跟我講一下是什麼導致了這個變化，有哪些因素影響了這個數字？

Yes, Jeff, no problem. Yes. So we had a little bit less divestiture-related expenses than we were previously forecasting, one. Two is we did sell our swaps here in Q3. And so we got a little bit more cash on the sale of those swaps in conjunction with the refi. And then three is that the cash taxes that we were investing to be around $10 million this year are probably going to be less than $9 million as a result of the new tax legislation in the new bill. So anyway, 3 sort of reasons why we were able to go ahead and raise the free cash flow outlook this year.

是的，傑夫，沒問題。是的。因此，我們的資產剝離相關費用比我們之前預測的要少一點。二是我們確實在第三季出售了我們的掉期合約。因此，我們在與再融資相結合的掉期銷售中獲得了更多現金。第三，由於新法案中的新稅法，我們今年投資的現金稅約為 1,000 萬美元，但可能會少於 900 萬美元。無論如何，我們能夠繼續提高今年的自由現金流預期有三個原因。

Great, thanks for that. That's helpful. And then on the sequentials, I know you were running off the tail of the divested revenue, I believe, in Q2. How much of the revenue in Q2? What was the divested -- how do I frame that? What was the revenue from those businesses that have been divested in Q2?

太好了，謝謝。這很有幫助。然後就連續性而言，我知道您在第二季度已經完成了剝離收入的尾部。Q2收入有多少？剝離的是什麼──我該如何表達呢？第二季剝離的業務收入是多少？

It was about $4 million, $5 million there, Jeff.

那裡大約有 400 萬美元、500 萬美元，傑夫。

Okay. Got it. Helpful. And then, Jack, just curious, back to the prior question, kind of the sales org and maybe just a little more thoughts expansion around what's working, what's not, puts and takes on the sales organization, opportunities to further enhance top line organic growth? Is it really centered around, as you were talking about top of funnel sort of sales process optimization execution? Where does product innovation fall in the sort of the priority list of opportunities to accelerate top line growth? Just ultimately, what's going to drive that top line growth acceleration?

好的。知道了。很有幫助。然後，傑克，我只是好奇，回到之前的問題，關於銷售組織的類型，也許只是稍微擴展一下想法，看看什麼是有效的，什麼是無效的，對銷售組織的投入和承擔，以及進一步提高營收有機增長的機會？正如您所說，它是否真的以漏斗頂部的銷售流程優化執行為中心？在加速收入成長的優先機會清單中，產品創新處於什麼位置？最終，什麼將推動營收成長加速？

Yes. So we've done a ton of work over the past year, 18 months to AI enable the product portfolio, particularly those key growth products that we think are going to drive organic growth for us going forward. So I think from a product perspective, we're in pretty good shape. Now look, obviously, we're constantly innovating and moving the portfolio forward. But as it relates to near-term core organic growth, I think we've got a competitive set of products with which we can win in the marketplace and the actions we've taken to streamline and focus the business further support that.

是的。因此，在過去的一年半里，我們做了大量的工作，用 18 個月的時間來實現 AI 的產品組合，特別是那些我們認為將推動我們未來有機成長的關鍵成長產品。所以我認為從產品角度來看，我們的狀況非常好。現在看，顯然我們正在不斷創新並推動投資組合向前發展。但就近期核心有機成長而言，我認為我們擁有一套具有競爭力的產品，可以在市場上取勝，而我們為精簡和集中業務而採取的行動也進一步支持了這一點。

In terms of where we need to execute and frankly, where we can execute better, again, on pipeline generation, we've made big progress, and we're seeing that in increases in marketing sourced bookings. But frankly, I think we could be doing better on our outbound efforts. So our inbound efforts are good. All the investments we made around SEO optimization and online presence helping that. I think continuing to fine-tune our outbound lead gen efforts using intent data, I think, will be important for us.

就我們需要執行的地方以及坦率地說我們可以執行得更好的地方而言，在管道生成方面，我們已經取得了很大進展，並且我們看到行銷預訂量的增加。但坦白說，我認為我們可以在對外工作方面做得更好。所以我們的入站努力是有效的。我們在 SEO 優化和線上形象方面所做的所有投資都對此有所幫助。我認為繼續使用意向數據來微調我們的外向型潛在客戶生成工作對我們來說非常重要。

Around sales execution, the theme over the last six months, nine months has been hiring in more domain expert sellers. And so we've added a significant number of new salespeople that have come out of direct competitors with a number of years of experience under their belt and really invigorating the sales force with that kind of domain expert talent. So that would be my answer.

圍繞銷售執行，過去六個月至九個月的主題是招募更多領域專家銷售人員。因此，我們增加了大量來自直接競爭對手的新銷售人員，他們擁有多年的經驗，並真正透過此類領域專家人才激發了銷售團隊的活力。這就是我的答案。

Great, very helpful, Thank you.

非常好，非常有幫助，謝謝。

(technical difficulty) Jack Mcdonald for closing remarks. Jack?

（技術難題）傑克麥克唐納致閉幕詞。傑克？

Okay. Thank you very much for your questions, and we look forward to seeing you on our next earnings call. Thanks very much.

好的。非常感謝您的提問，我們期待在下次財報電話會議上見到您。非常感謝。

That includes today's conference call. You may now disconnect.

其中包括今天的電話會議。您現在可以斷開連線。