Veralto Corp (VLTO) 2024 Q2 法說會逐字稿

My name is Leo, and I will be your conference operator this morning. At this time, I would like to welcome everyone to Veralto Corporation's second-quarter 2024 conference call. (Operator Instructions) I will now turn the call over to Ryan Taylor, Vice President of Investor Relations. Mr. Taylor, you may begin your conference.

我叫 Leo，今天早上我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Veralto Corporation 的 2024 年第二季電話會議。（操作員指示）我現在將電話轉給投資者關係副總裁 Ryan Taylor。泰勒先生，您可以開始會議了。

Good morning, everyone, and thanks for joining us on the call. With me today are Jennifer Honeycutt, our President and Chief Executive Officer; and Sameer Ralhan, our Senior Vice President and Chief Financial Officer. Today's call is simultaneously being webcast. A replay of the webcast will be available on the Investors section of our website later today under the heading Events and Presentations. A replay of this call will be available until August 9.

大家早安，感謝您加入我們的電話會議。今天與我在一起的有我們的總裁兼執行長 Jennifer Honeycutt；以及我們的高級副總裁兼財務長 Sameer Ralhan。今天的電話會議同時進行網路直播。今天晚些時候，我們網站的投資者部分將在「活動和演示」標題下提供網路廣播的重播。本次電話會議的重播將持續到 8 月 9 日。

Before we begin, I'd like to highlight a few recent disclosures. On July 24, we issued our 2024 sustainability report. That report can be viewed on our main website under Sustainability or on our investor website under Corporate Governance.

在開始之前，我想強調最近披露的一些內容。7 月 24 日，我們發布了 2024 年永續發展報告。該報告可以在我們的主網站「永續發展」下或在我們的投資者網站「公司治理」下查看。

Yesterday, we issued our second quarter news release, earnings presentation and supplemental materials, including information required by the SEC relating to adjusted or non-GAAP financial measures. Additionally, our Form 10-Q was filed yesterday. These materials are available in the Investors section of our website under the heading Quarterly Earnings. Reconciliations of all non-GAAP measures are provided in the appendix of the webcast slides. Unless otherwise noted, all references to variances are on a year-over-year basis.

昨天，我們發布了第二季新聞稿、收益演示和補充資料，包括 SEC 要求的與調整後或非 GAAP 財務指標相關的資訊。此外，我們的 10-Q 表格已於昨天提交。這些資料可在我們網站的投資者部分的季度收益標題下找到。網路廣播投影片的附錄中提供了所有非公認會計原則措施的調節。除非另有說明，所有提及的差異均以同比為基礎。

During the call, we will make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we believe or anticipate will or may occur in the future.

在電話會議期間，我們將做出聯邦證券法含義內的前瞻性聲明，包括有關我們認為或預期將來將會或可能發生的事件或發展的聲明。

These forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our SEC filings. Actual results may differ materially from forward-looking statements. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements, except as required by law. With that, I'll turn the call over to Jennifer.

這些前瞻性陳述受到許多風險和不確定性的影響，包括我們向美國證券交易委員會提交的文件中列出的風險和不確定性。實際結果可能與前瞻性陳述有重大差異。這些前瞻性陳述僅代表截至其作出之日的情況，我們不承擔更新任何前瞻性陳述的義務，除非法律要求。這樣，我就把電話轉給詹妮弗。

Thank you, Ryan, and thank you all for joining our call today. I want to start this call by recognizing the engine behind our strong second quarter results, our more than 16,000 associates around the world. Their strong execution in support of our customers drove our growth and improved profitability during the quarter. Nine months into our journey as an independent company, we are hitting our stride and delivering winning outcomes for our stakeholders. A key catalyst has been increased rigor in deploying the Veralto Enterprise System.

謝謝瑞安，也謝謝大家今天加入我們的電話會議。在本次電話會議中，我想先認識我們第二季強勁業績背後的推動力，也就是我們遍布全球的 16,000 多名員工。他們在支援客戶方面的強大執行力推動了我們的成長並提高了本季的獲利能力。作為一家獨立公司，九個月以來，我們正在大步前進，為我們的利害關係人帶來勝利的成果。一個關鍵的推動因素是 Veralto 企業系統部署更加嚴格。

As I've shared before, VES is a key competitive advantage for Veralto. It drives continuous improvement, accelerates innovation and enables us to win in our markets. Every day at all levels of our enterprise, our teams leverage VES to solve problems rapidly and drive sustainable improvements. Our increased rigor in deploying VES has helped drive growth, expand margins and ensure that we deliver on commitments. Our second quarter results demonstrate the benefit of this increased rigor while also highlighting the durability of our businesses.

正如我之前所分享的，VES 是 Veralto 的關鍵競爭優勢。它推動持續改進、加速創新並使我們能夠贏得市場。我們企業的各個層面的團隊每天都利用 VES 來快速解決問題並推動永續改善。我們在部署 VES 方面更加嚴格，有助於推動成長、擴大利潤並確保我們兌現承諾。我們第二季的業績證明了這種嚴格性的好處，同時也凸顯了我們業務的耐用性。

We delivered core sales growth across both segments, led by better-than-expected positive volume and price increases in line with historical levels. We expanded margins at both segments through strong operating leverage, improved productivity and cost optimization. Based on our strong execution in the second quarter and an incrementally more positive view of our end markets, we have raised our full year adjusted EPS guidance. From an end market perspective, we are capitalizing on secular growth drivers across our industrial and municipal markets in water quality. In water analytics, our commercial initiatives are accelerating volume growth and market penetration, particularly in consumables.

在好於預期的正銷售量和符合歷史水準的價格成長的帶動下，我們在這兩個領域實現了核心銷售成長。我們透過強大的營運槓桿、提高的生產力和成本優化擴大了這兩個部門的利潤率。基於我們在第二季度的強勁執行力以及對終端市場越來越積極的看法，我們提高了全年調整後每股收益指引。從終端市場的角度來看，我們正在利用工業和市政市場水質的長期成長動力。在水分析方面，我們的商業計劃正在加速產量成長和市場滲透，特別是在消耗品方面。

And in water treatment, we continue to see strong growth driven by our customers' water conservation, reclaim and reuse initiatives. On that front, ChemTreat was recently recognized as Industrial Supplies and Services Supplier of the Year by one of the largest global beverage companies. ChemTreat is playing an integral role in helping this customer achieve its sustainability targets through wastewater projects that support the reclamation of hundreds of millions of gallons of water annually. In PQI, we are encouraged by ongoing recovery in consumer packaged goods markets, and improved sentiment from brand owners and packaging converters. In our marking and coding business, recurring revenue grew mid-single digits for the fourth consecutive quarter.

在水處理領域，我們繼續看到在客戶的節水、回收和再利用計劃的推動下實現強勁增長。在這方面，ChemTreat 最近被全球最大的飲料公司之一評為年度工業用品和服務供應商。ChemTreat 在幫助該客戶透過廢水計畫實現其永續發展目標方面發揮著不可或缺的作用，該計畫每年支持回收數億加侖的水。在 PQI 方面，我們對消費品包裝市場的持續復甦以及品牌所有者和包裝加工商信心的改善感到鼓舞。在我們的標記和噴碼業務中，經常性收入連續第四個季度實現中個位數成長。

Notably, sales of marking and coding equipment accelerated during the quarter and grew on a year-over-year basis with good traction on new product launches. One of those new products is Videojet's 2380 large character inkjet printer, which launched in early April and is off to an impressive start. This printer is designed for use on sustainable packaging materials, such as corrugated cardboard and other porous materials. Second quarter sales of the 2380 printer exceeded our expectations, and we continue to build momentum through a robust sales funnel. In our packaging and color business, second quarter bookings were strong, driven in part by the success of new software launches unveiled at recent trade shows and industry events.

值得注意的是，打標和噴碼設備的銷售在本季度加速成長，並同比增長，新產品的推出具有良好的吸引力。其中一款新產品是偉迪捷的 2380 大字符噴墨印表機，該產品於 4 月初推出，並取得了令人印象深刻的開局。此印表機設計用於永續包裝材料，例如瓦楞紙板和其他多孔材料。2380 印表機第二季度的銷售量超出了我們的預期，我們繼續透過強大的銷售管道來建立勢頭。在我們的包裝和色彩業務中，第二季度的預訂量強勁，部分原因是在最近的貿易展覽和行業活動中推出的新軟體取得了成功。

At the drupa trade show, our Esko, Pantone and X-Rite teams jointly showcased their latest innovations and highlighted our seamless packaging workflow software and hardware solutions. At the event, Esko unveiled its S2 platform, a multi-tenant, cloud-native platform that provides cloud computing, data sharing and artificial intelligence. All Esko applications connect to this platform, giving all key stakeholders in the value chain access to live data and identical information wherever they are in the world. This integrated ecosystem will empower customers to compress workflows, harness cloud technology and artificial intelligence to accelerate speed to market with vital integrated color accuracy. This new technology helps our customers save time, reduce waste and ensure brand fidelity.

在德魯巴貿易展上，我們的 Esko、Pantone 和 X-Rite 團隊共同展示了他們的最新創新成果，並重點介紹了我們的無縫包裝工作流程軟體和硬體解決方案。在此次活動中，Esko 推出了 S2 平台，這是一個多租戶、雲端原生平台，提供雲端運算、資料共享和人工智慧。所有 Esko 應用程式都連接到該平台，使價值鏈中的所有主要利益相關者無論身在何處都能存取即時數據和相同資訊。這個整合的生態系統將使客戶能夠壓縮工作流程，利用雲端技術和人工智慧，以至關重要的整合色彩精度加快上市速度。這項新技術幫助我們的客戶節省時間、減少浪費並確保品牌忠誠度。

These workflow improvements help our customers minimize the environmental impact across their supply chains and achieve their sustainability objectives while providing safe foods and trusted essential goods to their customers. This is a great example of the alignment between our product innovation and our purpose. Our work at Veralto is inspired by our unifying purpose safeguarding the world's most vital resources. We live in a world with big challenges, and Veralto plays a significant role in solving many of them. Helping customers ensure clean water, safe foods and trust in essential goods for billions of people across the globe motivates all of us at Veralto each and every day.

這些工作流程改善幫助我們的客戶最大限度地減少整個供應鏈對環境的影響，實現永續發展目標，同時向客戶提供安全的食品和值得信賴的必需品。這是我們的產品創新與我們的目標一致的一個很好的例子。我們在 Veralto 的工作受到我們保護世界上最重要資源的統一目標的啟發。我們生活在一個充滿巨大挑戰的世界，Veralto 在解決其中許多挑戰方面發揮著重要作用。幫助客戶確保全球數十億人獲得乾淨的水、安全的食品和對必需品的信任，每天都激勵 Veralto 的所有人。

It inspires our associates who are drawn to Veralto because of the role our products and solutions play in helping preserve the planet, how we care for and invest in our people, and our efforts to minimize the environmental impact of our own operations. And it's easy to be inspired by the work that we do at Veralto. In 2023, our team helped ensure 3.4 billion people around the world had access to clean water for daily use, treat and recycle 13 trillion gallons of water, saved 81 billion gallons of water and ensure product authenticity and safety by helping customers mark and code over 10 billion products every day. In addition to these positive and enduring contributions, I want to highlight two important commitments featured in this year's sustainability report.

它激勵了我們的員工，他們被Veralto 所吸引，因為我們的產品和解決方案在幫助保護地球方面所發揮的作用、我們如何關心和投資於我們的員工，以及我們為盡量減少我們自身運營對環境的影響而做出的努力。我們很容易從 Veralto 所做的工作中受到啟發。到2023 年，我們的團隊幫助確保全球34 億人獲得日常使用的清潔水，處理和回收13 兆加侖的水，節省810 億加侖的水，並透過幫助客戶進行標記和編碼來確保產品的真實性和安全性每天100億個產品。除了這些積極而持久的貢獻之外，我還想強調今年永續發展報告中的兩項重要承諾。

First, in support of our commitment to minimize the environmental impact of our own operations, we disclosed our 2023 Scope 1 and Scope 2 greenhouse gas emissions, and committed to a 54.6% reduction goal by 2033. Second, in support of our commitment to drive a responsible supply chain, we set an initial target to have 40% of our supplier base certified through the EcoVadis program. EcoVadis is one of the leading sustainability rating agencies and will help us measure, assess and improve the impact of our supply chain on the world. The role our products play in preserving the planet and the targets we have committed to achieve embody the culture and are made possible by our people. Our people are the most important part of our strategy, and we invest heavily to recruit, develop and retain the most talented and diverse team possible.

首先，為了支持我們最大限度地減少自身營運對環境影響的承諾，我們揭露了 2023 年範圍 1 和範圍 2 溫室氣體排放量，並承諾在 2033 年實現 54.6% 的減排目標。其次，為了支持我們推動負責任的供應鏈的承諾，我們設定了初步目標，讓 40% 的供應商群體通過 EcoVadis 計畫認證。EcoVadis 是領先的永續發展評級機構之一，將幫助我們衡量、評估和改善我們的供應鏈對世界的影響。我們的產品在保護地球方面發揮的作用以及我們承諾實現的目標體現了我們的文化，並由我們的員工實現。我們的員工是我們策略中最重要的部分，我們投入大量資金來招募、培養和留住最有才華和多元化的團隊。

Our 2024 sustainability report published earlier this week contains more details about our commitment and ability to deliver positive enduring impact and drive sustainable outcomes for the benefit of humanity. Now turning to our Q2 financial results. Before getting into the details, it's important to highlight a key underlying strength of Veralto, and that is the durability of our businesses. Approximately 85% of our sales are related to water, food and essential goods. These are large attractive markets with steady growth driven by strong secular trends.

我們本週稍早發布的 2024 年永續發展報告詳細介紹了我們為造福人類而提供積極持久影響和推動永續成果的承諾和能力。現在轉向我們第二季的財務業績。在討論細節之前，有必要強調 Veralto 的一個關鍵潛在優勢，那就是我們業務的持久性。我們大約 85% 的銷售額與水、食品和必需品有關。這些都是極具吸引力的大型市場，在強勁的長期趨勢的推動下實現穩定成長。

Our customers in these markets have an essential need for our products and solutions to support critical aspects of their daily operations where the risk of failure is high. Our durability is further bolstered by our razor-razorblade model, which drives a high level of recurring revenue, further catalyzed by VES. The CEO Kaizen events we kicked off in Q1 are a strong proof point. These events, which focus on value-accretive growth have already had a positive impact on our 2024 performance evident in our second quarter results.

這些市場的客戶迫切需要我們的產品和解決方案來支援他們日常營運中故障風險較高的關鍵面向。我們的剃刀-剃刀刀片模型進一步增強了我們的耐用性，該模型在 VES 的進一步催化下推動了高水平的經常性收入。我們在第一季啟動的 CEO Kaizen 活動就是一個強而有力的證明。這些關注增值成長的事件已經對我們 2024 年的業績產生了正面影響，這一點在我們第二季的業績中顯而易見。

On a consolidated basis, we exceeded our guidance on all fronts with 3.8% core sales growth and 24% adjusted operating profit margin. Adjusted earnings per share was $0.85, up 6% year-over-year and $0.05 above the high end of our guidance range. And we generated $240 million of free cash flow, further strengthening our financial position. Looking at core sales growth by geography in the second quarter, sales into North America and high-growth markets grew in the mid-single digits, and sales into Western Europe were essentially flat.

綜合來看，我們在各方面都超越了我們的指導，核心銷售額成長了 3.8%，調整後營業利潤率成長了 24%。調整後每股收益為 0.85 美元，年增 6%，比我們指導範圍的上限高出 0.05 美元。我們產生了 2.4 億美元的自由現金流，進一步增強了我們的財務狀況。從第二季按地區劃分的核心銷售成長來看，北美和高成長市場的銷售呈現中個位數成長，而西歐的銷售基本上持平。

In North America, core sales grew over 5%, driven by both segments. In water quality, we continue to capitalize on strong demand for our water treatment solutions, which grew high single digits in North America. This growth was broad-based across most industrial verticals, with the strongest growth in food and beverage, mining and power generation. We also continue to see strong growth for UV systems at municipalities in North America. In Water Treatment, we're partnering with customers to help them achieve their sustainability goals related to water conservation, reclamation and reuse.

在北美，在這兩個細分市場的推動下，核心銷售額成長了 5% 以上。在水質方面，我們繼續利用對水處理解決方案的強勁需求，該解決方案在北美實現了高個位數成長。這種成長在大多數工業垂直領域都有廣泛的基礎，其中食品和飲料、採礦和發電領域的成長最為強勁。我們也持續看到北美各城市的紫外線系統強勁成長。在水處理領域，我們與客戶合作，幫助他們實現與節水、回收和再利用相關的永續發展目標。

Our water treatment businesses are also well positioned in North America to support onshoring or reshoring activity, including tech operations such as semiconductor fabs and data centers. Relative to North America, our PQI segment grew 3.5% in Q2. Packaging and color grew mid-single digits, with marking and coding up low single digits. In high-growth markets, core sales grew by more than 4%. We continue to see strong growth in Latin America and India.

我們的水處理業務在北美也處於有利位置，可以支援在岸或回流活動，包括半導體工廠和資料中心等技術營運。與北美相比，我們的 PQI 細分市場在第二季度成長了 3.5%。包裝和顏色增長了中個位數，標記和編碼增長了低個位數。在高成長市場，核心銷售額成長超過 4%。我們繼續看到拉丁美洲和印度的強勁成長。

And in China, core sales grew low single digits year-over-year. In Western Europe, core sales were essentially flat year-over-year, including 50 basis point headwind related to the strategic portfolio actions in our water quality segment that we mentioned on prior earnings calls. Excluding this headwind, core sales into Western Europe were up modestly. At this time, I'll turn the call over to Sameer to provide more details on our Q2 performance and our guidance.

在中國，核心銷售額較去年同期成長較低的個位數。在西歐，核心銷售額比去年同期基本持平，其中包括與我們在先前的財報電話會議上提到的水質部門的策略性投資組合行動相關的 50 個基點的逆風。排除此不利因素，西歐的核心銷售額略有成長。此時，我會將電話轉給 Sameer，以提供有關我們第二季業績和指導的更多詳細資訊。

Thanks, Jennifer, and good morning, everyone. I'll begin with our consolidated results for the second quarter on Slide 8. Net sales grew 2.8% on a year-over-year basis to about $1.29 billion. Core sales grew 3.8%. Currency was an 80 basis points headwind or approximately $10 million.

謝謝，詹妮弗，大家早安。我將先在投影片 8 上介紹第二季的綜合業績。淨銷售額年增 2.8%，達到約 12.9 億美元。核心銷售額成長 3.8%。貨幣匯率逆風上漲 80 個基點，約 1,000 萬美元。

And the small divestiture of Salsnes was a modest headwind. Our core growth in this quarter was balanced with both volume and price increases driving our growth. Price contributed 2% growth in this quarter, in line with our expectations and historical levels. Volume grew 1.8% with positive volume growth across both water quality and PQI. This marks the first quarter since the second quarter of 2022, in which volume grew across both segments.

薩爾斯內斯的小規模剝離是一個溫和的阻力。本季我們的核心成長與銷售和價格成長推動我們的成長保持平衡。本季價格貢獻了 2% 的成長，符合我們的預期和歷史水準。水量成長 1.8%，水質和 PQI 水量均呈正成長。這是自 2022 年第二季以來這兩個細分市場銷售量均出現成長的第一個季度。

Our recurring revenue grew mid-single digits year-over-year and comprised 62% of our total sales. We expanded margins at both segments through strong operational leverage, improved productivity and cost optimization. Gross profit increased 7% year-over-year to $774 million. Gross profit margin improved 230 basis points year-over-year to 60%, reflecting the benefits of pricing as well as improved productivity and reduced material costs. Adjusted operating profit increased 5% year-over-year, and adjusted operating profit margin expanded 70 basis points to 24%.

我們的經常性收入年增中個位數，佔總銷售額的 62%。我們透過強大的營運槓桿、提高的生產力和成本優化擴大了這兩個部門的利潤。毛利年增 7% 至 7.74 億美元。毛利率年增 230 個基點至 60%，反映了定價優勢以及生產力提高和材料成本降低的好處。調整後營業利潤年增 5%，調整後營業利益率擴大 70 個基點至 24%。

We delivered strong margin expansion while investing in our sales and marketing efforts to drive future growth. We also increased our R&D investments with R&D as percent of sales increasing 20 basis points over the prior year period. These investments are aligned with our strategic growth plans, and we expect to continue to fund ongoing growth investments. Looking at EPS for second quarter. Adjusted earnings per share grew 6% year-over-year to $0.85 and free cash flow was $240 million, down from the prior year primarily due to stand-alone public company costs and cash tax payments, which were not incurred in the prior year period.

我們實現了強勁的利潤成長，同時投資於銷售和行銷工作以推動未來成長。我們也增加了研發投資，研發佔銷售額的百分比比去年同期增加了 20 個基點。這些投資與我們的策略性成長計劃一致，我們預計將繼續為持續的成長投資提供資金。看看第二季的每股盈餘。調整後每股收益年增 6%，達到 0.85 美元，自由現金流為 2.4 億美元，較上年有所下降，主要是由於上年同期未發生的獨立上市公司成本和現金稅。

Moving on, I'll cover the segment highlights, starting with water quality on Slide 9. Our water quality segment delivered $777 million of sales, up 2.8% on a year-over-year basis. Currency was an 80 basis points headwind and the divestiture of Salsnes had 40 basis points impact versus the prior year period.

接下來，我將介紹該部分的亮點，從投影片 9 上的水質開始。我們的水質部門實現了 7.77 億美元的銷售額，年增 2.8%。與去年同期相比，貨幣匯率出現了 80 個基點的逆風，而 Salsnes 的剝離則產生了 40 個基點的影響。

In addition to this divestiture, small product lines that were strategically exited in the fourth quarter of 2023 resulted in approximately 80 basis points headwind to core growth for the water quality segment in the second quarter. Despite this headwind, core sales grew 4% year-over-year. Pricing contributed 2.4% and volume growth contributed 1.6% to year-over-year core sales growth. Our volume growth was driven by strong demand for water treatment solutions in our industrial end markets and UV treatment systems in municipal end markets. We also saw growth in sales of lab instrumentation, reagents and chemistries to municipalities.

除了此次剝離之外，2023 年第四季策略性退出的小型產品線導致第二季水質細分市場的核心成長遭遇約 80 個基點的阻力。儘管有這種不利因素，核心銷售額仍較去年同期成長 4%。在核心銷售年成長中，定價貢獻了 2.4%，銷售成長貢獻了 1.6%。我們的銷售成長是由工業終端市場對水處理解決方案和市政終端市場對紫外線處理系統的強勁需求所推動的。我們也看到向市政當局銷售的實驗室儀器、試劑和化學品的成長。

Recurring sales across the water quality segment grew mid-single digits. Adjusted operating profit increased 5.5% year-over-year to $192 million, and adjusted operating profit margin increased 70 basis points to 24.7%. The increase in profitability and margin reflects strong pricing execution, leverage on volume growth and improved productivity.

水質領域的經常性銷售額成長了中個位數。調整後營業利潤年增 5.5%，達到 1.92 億美元，調整後營業利益率成長 70 個基點，達到 24.7%。獲利能力和利潤率的成長反映了強大的定價執行力、銷售成長的槓桿作用以及生產力的提高。

To a lesser extent, our adjusted operating profit margin also benefited from a favorable sales mix this quarter. Moving to the next page. Our PQI segment delivered sales of $511 million in the second quarter, up 2.7% year-over-year. Currency was a 70 basis points headwind. Core sales grew 3.4%.

在較小程度上，我們調整後的營業利潤率也受益於本季有利的銷售組合。移至下一頁。我們的 PQI 部門第二季銷售額為 5.11 億美元，較去年同期成長 2.7%。貨幣匯率逆風70個基點。核心銷售額成長 3.4%。

Positive volume contributed 2% growth, and price increases contributed 1.4% to the year-over-year core sales growth.

正銷量貢獻了 2% 的成長，價格上漲貢獻了 1.4% 的核心銷售年增。

PQI's recurring sales grew mid-single digits year-over-year for the fourth consecutive quarter with growth across the portfolio. Recurring revenue increased to 63% of PQI sales mix in the second quarter of this year. Breaking this down by business, core sales growth in our marking and coding business was in line with the segment, driven by growth in both consumables and equipment. This growth was driven by both CPG and industrial end markets. In our packaging and color business, core sales grew about 3% year-over-year led by growth in recurring software and subscription revenue.

隨著整個產品組合的成長，PQI 的經常性銷售額連續第四個季度同比增長中個位數。今年第二季度，經常性收入佔 PQI 銷售組合的比例增至 63%。按業務細分，我們的標記和噴碼業務的核心銷售成長與該細分市場一致，受到消耗品和設備成長的推動。這一增長是由消費品和工業終端市場共同推動的。在我們的包裝和色彩業務中，由於經常性軟體和訂閱收入的成長，核心銷售額年增約 3%。

PQI's adjusted operating profit was $141 million in the second quarter, resulting in adjusted operating profit margin of 27.6%. That represents 100 basis points improvement in adjusted operating profit margin over the prior year period. This was another quarter of margin improvement for PQI, driven by the strong operating leverage, particularly on the recurring revenue growth and productivity improvements. Turning now to our balance sheet and cash flow. In the second quarter, we generated $251 million of cash from operations and invested $11 million in capital expenditures.

PQI第二季調整後營業利潤為1.41億美元，調整後營業利益率為27.6%。這意味著調整後的營業利潤率比上年同期提高了 100 個基點。這是 PQI 利潤率又一個季度的改善，這得益於強勁的營運槓桿，特別是經常性收入的成長和生產力的提高。現在轉向我們的資產負債表和現金流。第二季度，我們從營運中產生了 2.51 億美元的現金，並投資了 1,100 萬美元的資本支出。

Free cash flow was $240 million in the quarter, our 118% conversion of GAAP net income. As of June 28, gross debt was $2.6 billion and cash on hand was just over $1 billion. Net debt was $1.6 billion resulting in net leverage of 1.3 times. In summary, our financial position is strong. We have flexibility in how we deploy capital to create long-term shareholder value with a bias towards M&A.

本季自由現金流為 2.4 億美元，相當於 GAAP 淨利的 118%。截至 6 月 28 日，總債務為 26 億美元，手頭現金略高於 10 億美元。淨債務為 16 億美元，淨槓桿率為 1.3 倍。總而言之，我們的財務狀況強勁。我們在如何部署資本以創造長期股東價值方面具有靈活性，並偏向併購。

Turning now to our guidance for 2024, beginning with our updated expectations for the full year. We increased our full year guidance to reflect our strong second quarter execution and incrementally positive view of our end markets. For core sales growth, our target remains low single digits. However, we are trending towards the high end of low single digits. Through the first half of 2024, core sales growth was 2.8%.

現在談談我們對 2024 年的指導，首先是我們對全年的最新預期。我們提高了全年指導，以反映我們強勁的第二季度執行力和對終端市場日益積極的看法。對於核心銷售成長，我們的目標仍然是低個位數。然而，我們正趨向於低個位數的高端。截至 2024 年上半年，核心銷售額成長率為 2.8%。

For the second half, we are targeting core sales growth in the low- to mid-single digits range, similar to what we achieved in the second quarter. Looking at adjusted operating profit margin for the full year, we now expect to deliver approximately 75 basis points margin expansion year-over-year, which would put our full year adjusted operating profit margin at about 24%. This implies an incremental margin or fall-through of around 50%.

下半年，我們的目標是核心銷售成長在低至中個位數範圍內，與我們在第二季度取得的成績類似。考慮到全年調整後的營業利潤率，我們現在預計利潤率將年增約 75 個基點，這將使我們全年調整後的營業利潤率達到約 24%。這意味著增量利潤或下降幅度約為 50%。

For adjusted EPS, we raised our full year guidance range to $3.37 to $3.45 per share. At the midpoint, this represents 7% growth year-over-year and is $0.11 or about 3.5% higher than our previous guidance. And our guidance for free cash flow conversion remains in the range of 100% to 110% of GAAP net income. Looking at our guidance for Q3, we are targeting core sales growth in the low to mid-single digits on a year-over-year basis. At the midpoint of our Q3 guidance, we are modeling a core growth rate similar to second quarter.

對於調整後每股收益，我們將全年指引範圍上調至每股 3.37 美元至 3.45 美元。以中點計算，這意味著同比增長 7%，比我們之前的指導高出 0.11 美元，約 3.5%。我們對自由現金流轉換的指導仍保持在 GAAP 淨利潤的 100% 至 110% 範圍內。從我們對第三季的指導來看，我們的目標是核心銷售額年增率在低至中個位數。在第三季指導的中點，我們正在對與第二季類似的核心成長率進行建模。

We expect adjusted operating profit margin of approximately 23.5% in the third quarter. This represents 100 basis points of improvement in adjusted operating profit margin on a year-over-year basis. And our Q3 2024 guidance for adjusted EPS is $0.82 to $0.86 per share. At the midpoint, that represents double-digit year-over-year growth. With that, I'll hand the call back to Jennifer for closing remarks.

我們預計第三季調整後營業利潤率約為 23.5%。這意味著調整後營業利潤率年增了 100 個基點。我們對 2024 年第三季調整後每股收益的指引為每股 0.82 美元至 0.86 美元。在中點，這代表兩位數的年成長。至此，我會將電話轉回給 Jennifer，讓其結束語。

Thanks, Sameer. In summary, we are executing well across the company with greater focus and rigor using VES, and we are capitalizing on the secular growth drivers in our key end markets. We delivered a strong second quarter across the board with core sales growth approaching mid-single digits, continued margin expansion and strong cash generation.

謝謝，薩米爾。總之，使用 VES，我們在整個公司範圍內執行得很好，更加專注和嚴格，我們正在利用關鍵終端市場的長期成長動力。我們第二季的業績全面強勁，核心銷售成長接近中個位數，利潤率持續擴張，現金生成強勁。

Based on the strength of our execution and positive view of our end markets, we raised our full year 2024 adjusted EPS guidance. As we look longer term, we remain committed to creating value through steady durable sales growth, continuous improvement and disciplined capital allocation. That concludes our prepared remarks. And at this time, we are happy to take your questions.

基於我們的執行力和對終端市場的正面看法，我們上調了 2024 年全年調整後每股盈餘指引。從長遠來看，我們仍然致力於透過穩定持久的銷售成長、持續改進和嚴格的資本配置來創造價值。我們準備好的演講到此結束。此時，我們很樂意回答您的問題。

(Operator Instructions) Scott Davis, Melius Research.

（操作員說明）Scott Davis，Melius Research。

Jennifer, Sameer and Ryan. I got to ask about gross margins just because they've been so incredibly strong. Is -- a, I guess, is 60% the new normal? Or is that just more of kind of a shorter-term impact?

珍妮佛、薩米爾和瑞安。我必須詢問毛利率，因為它們非常強勁。我想，60% 是新常態嗎？或者這只是短期影響？

And second, maybe I heard the word price in the context of pricing power more on this quarter and last one too than we would have thought in the past. And are you finding there's just more pricing power in your markets maybe than you thought you had before and that's driving that 60% gross margin. Is that a fair takeaway?

其次，也許我在本季和上一季聽到的定價權背景下的「價格」一詞比我們過去想像的更多。您是否發現您的市場中的定價能力可能比您之前想像的要大，這推動了 60% 的毛利率。這是一個公平的外賣嗎？

Yes, Scott, let me just touch on the margin, and then I'll have Jennifer just talk about the price. On the gross margin side, it's really been really in the increased rigor on VES really driving the execution side. Frankly, it's been lots of singles and doubles that are driving the margin here. And also, as you see, we are benefiting a little bit from the recurring revenue here, right? The mix is more towards consumables to the spares, which is impacting and helping us on the margin, the packaging and color business, as you know, that needs to be on the software side with a little higher margin.

是的，斯科特，讓我談談利潤，然後我會讓珍妮佛談談價格。在毛利率方面，VES 的嚴格性確實在推動執行方面的提升。坦白說，是很多單打和雙打推動了這裡的利潤。而且，正如您所看到的，我們從這裡的經常性收入中受益匪淺，對嗎？這種組合更傾向於消耗品和備件，這對我們的利潤產生了影響和幫助，包裝和色彩業務，正如你所知，需要在軟體方面獲得更高的利潤。

So that's helping us. So those things are helping us. I would say you should expect the gross margins to come in a little bit as the growth rate equilibrates between the equipment and consumables over time. But we feel really good about 60%. But I think once the transition happens, it will be more in the high 50%, 50% or 59% kind of a range.

這對我們有幫助。所以這些事情正在幫助我們。我想說，隨著時間的推移，隨著設備和消耗品之間的成長率達到平衡，您應該預期毛利率會有所提高。但我們感覺真的很好，大約 60%。但我認為一旦發生轉變，它會更多地處於 50%、50% 或 59% 的高範圍內。

Yes. And I think, Scott, what you're seeing relative to price is our ability to sort of hold the value of our products in terms of commercial excellence related to VES. So the teams commercially are executing well around the world, but we have seen price normalize to historical levels, which we believe fit in the range of 100 to 200 bps.

是的。Scott，我認為，相對於價格，您看到的是我們在與 VES 相關的商業卓越方面保持產品價值的能力。因此，這些團隊在全球範圍內的商業執行情況良好，但我們已經看到價格正常化至歷史水平，我們認為該水平在 100 至 200 個基點之間。

Okay. Fair enough. And just -- I feel obligated to ask about M&A. I know these things are lumpy, and it's hard to kind of talk about it, but any update on maybe your pipeline, your enthusiasm about the assets that are out there?

好的。很公平。只是——我覺得有義務詢問有關併購的問題。我知道這些事情是不穩定的，很難談論它，但是關於你的管道的任何更新，你對現有資產的熱情嗎？

Yes. We remain pretty convicted about our M&A approach. We've got really robust funnels for both PQI and water quality. We're looking at a lot of assets, and we're actively engaged in our market activity here. But consistent with what we've said on prior calls, we're really going to stay close to our heritage and the disciplined capital allocation around market company and valuation.

是的。我們仍然對我們的併購方法深信不疑。我們擁有非常強大的 PQI 和水質漏斗。我們正在尋找大量資產，並積極參與這裡的市場活動。但與我們在先前的電話會議中所說的一致，我們確實將保持我們的傳統以及圍繞市場公司和估值的嚴格資本配置。

So we obviously like businesses that have similar operating models and secular durability, financial profiles that look like us and certainly businesses where we think VES can add value. So we're active here. We're excited about the space. We're working hard quite on both sides of the fence and more to come.

因此，我們顯然喜歡具有相似營運模式和長期耐用性、財務狀況與我們相似的企業，當然還有我們認為 VES 可以增加價值的企業。所以我們在這裡很活躍。我們對這個空間感到興奮。我們正在兩邊努力工作，未來還會有更多工作。

Best of luck. Congrats on the first two quarters here of the year.

祝你好運。恭喜今年前兩個季度。

Deane Dray, RBC Capital Markets.

迪恩德雷 (Deane Dray)，加拿大皇家銀行資本市場。

I'll echo Scott's comments. That's a clean quarter, kind of hard to find anything to quibble about. So maybe I'll start with product quality. Your primary competitor had some similar results yesterday in terms of strong aftermarket, but it looks like your printer sales are stronger. I know that 2380, it sounds like that was a boost.

我會回應斯科特的評論。這是一個乾淨的季度，很難找到任何可以挑剔的地方。所以也許我會從產品品質開始。您的主要競爭對手昨天在強勁的售後市場方面也取得了一些類似的結果，但看起來您的印表機銷售更強勁。我知道2380，聽起來像是提升。

But just can you comment on the mix and the go forward, especially with the recovery expected in the consumer packaging goods?

但您能否評論一下這種組合和未來的發展，特別是消費包裝產品的預期復甦？

Yes. Thanks for the question, Deane. Our PQI businesses in the main are performing well. I think you see that both in terms of our marking and coding businesses. You also see it on our color and packaging side.

是的。謝謝你的提問，迪恩。我們的 PQI 業務整體表現良好。我想您在我們的標記和編碼業務方面都看到了這一點。您還可以在我們的顏色和包裝方面看到它。

We're not going to comment really on competitors' activity. But what we can say is our marking and coding businesses are performing well and I think in line with the recovery of the consumer packaged goods market. So we see this fourth consecutive quarter of mid-single digit recurring revenue growth. And we also see, as you rightly point out, Q2 marking the return of growth in equipment sales. And so this follows the nominal recovery that we see when we're coming out of a down cycle, where consumables and by way of inks in solvents and spare parts and so on, recover before equipment does.

我們不會真正評論競爭對手的活動。但我們可以說的是，我們的標記和噴碼業務表現良好，我認為這與消費品包裝市場的復甦是一致的。因此，我們看到連續第四個季度的經常性收入實​​現中個位數成長。正如您正確指出的那樣，我們還看到第二季標誌著設備銷售成長的回歸。因此，這遵循我們在走出下行週期時看到的名義恢復，即消耗品以及溶劑中的墨水和備件等在設備之前恢復。

We're excited about the funnel that we have for equipment. And certainly, as we talk to our CPG customers, they are -- their sentiment is more positive in terms of the future outlook. From packaging and color standpoint, we've just finished the drupa trade show, where we got a lot of positive response in terms of the products being launched there, mostly around our S2 native cloud, digital integrated solutions. This really helps reduce time to market for the brands. It also helps mistake proof relative the information that they're passing around between their functional department.

我們對設備的漏斗感到興奮。當然，當我們與我們的 CPG 客戶交談時，他們對未來前景的看法更加積極。從包裝和色彩的角度來看，我們剛剛結束了德魯巴貿易展，我們在展會上推出的產品得到了很多積極的回應，主要是圍繞我們的 S2 原生雲、數位整合解決方案。這確實有助於縮短品牌的上市時間。它還有助於防止與職能部門之間傳遞的資訊相關的錯誤。

So funnels are healthy on both sides. The market recovery in terms of CPG itself is a little bit lumpy. We do see mixed results across various CPG categories. But certainly, we're encouraged by the market indicators, and I think our teams are executing well with recent product launches and our new product innovations really are gaining momentum.

所以漏斗兩邊都是健康的。就消費品本身而言，市場復甦有點崎嶇不平。我們確實看到不同消費品類別的結果好壞參半。但當然，我們對市場指標感到鼓舞，我認為我們的團隊在最近的產品發布中表現良好，而且我們的新產品創新確實正在獲得動力。

That's all very helpful. And just a geographic question. For both businesses, what was the sense of demand in China and the outlook -- the expectation is that you all have a very defensive type of mix there, but will you feel any of the ongoing pressures in the economy over the next couple of quarters?

這一切都非常有幫助。這只是一個地理問題。對於這兩家企業來說，中國的需求和前景如何——預計你們都擁有非常防禦性的組合，但你們會感受到未來幾個季度經濟中持續的壓力嗎？

Yes. I think, Deane, our view of China hasn't materially changed from quarter-to-quarter. I think we believe that China has stabilized related to the end markets, but we don't expect to see any meaningful recovery in China this year. I think for state-owned or state-sponsored municipalities, funding is still extraordinarily tight, so we're not seeing much money flow there. I think long term, China is anticipated to improve.

是的。迪恩，我認為我們對中國的看法每季都沒有重大變化。我認為我們相信中國的終端市場已經穩定下來，但我們預計今年中國不會有任何有意義的復甦。我認為對於國有或國家資助的市政當局來說，資金仍然非常緊張，因此我們沒有看到太多資金流向那裡。我認為從長遠來看，中國有望有所改善。

It's got a large and aging population. Those folks are going to require clean water, safe food and trusted medicines. But our China team has stepped up to the challenge here in this slower growth macro, and we continue to ensure that we have a China business that's creating incremental value for Veralto.

它人口眾多且老化。這些人將需要清潔的水、安全的食物和值得信賴的藥物。但我們的中國團隊已經在宏觀經濟成長放緩的情況下迎接挑戰，我們將繼續確保我們的中國業務能夠為 Veralto 創造增量價值。

And then, Deane, from a guide perspective, effectively, assume China will be sequentially flat, right? So as you know, we were down quite a bit in the Q3 and Q4. So you're going to see a little bit of an uptick on a year-over-year basis as we kind of get into the second half, but sequentially, it's effectively flat.

然後，迪恩，從指導的角度來看，實際上，假設中國將連續持平，對嗎？如您所知，我們在第三季和第四季下降了很多。因此，當我們進入下半年時，你會看到同比略有上升，但隨後，它實際上持平。

That's real helpful.

這真的很有幫助。

Andy Kaplowitz, Citigroup.

安迪‧卡普洛維茨，花旗集團。

Jennifer, Sameer, you raised your revenue guidance by $100 million for '24, I think, versus last quarter's forecast. So maybe just give us a little more color into what markets are better than you expected?

Jennifer、Sameer，我認為你們將 24 年的營收指引比上季的預測提高了 1 億美元。那麼，也許只是讓我們更了解哪些市場比您預期的更好？

I know you just talked about Videojet equipment starting to accelerate. What are you baking now being in now for the second half of that improvement? And then in water quality, is it more that water treatment is driving continued strong momentum? Or are you seeing more improvement in Water Analytics?

我知道您剛剛談到偉迪捷設備開始加速。為了下半年的改進，你現在正在烘烤什麼？那麼在水質方面，是否更多的是水處理在推動持續強勁的勢頭呢？或者您看到水分析有更多改進？

Yes. I mean I think we see strength across the board, really. We benefit, I think, from a couple of areas here. One is just the markets that we're in and the quality of the products we bring to market being part of the essential nature of customer operations. I think that the deployment of VES and the increased focus that we have as a stand-alone company continues to help us execute well commercially.

是的。我的意思是，我認為我們確實看到了全面的實力。我認為，我們從幾個方面受益。一是我們所處的市場以及我們推向市場的產品品質是客戶營運本質的一部分。我認為，VES 的部署以及我們作為獨立公司的日益關注繼續幫助我們在商業上取得良好的表現。

From a macro standpoint on where the demand is occurring, water and municipalities, particularly in U.S. and Europe, continue to execute on project backlog in terms of improvements to their respective plants, and their run rate business is steady.

從需求發生的宏觀角度來看，水務和市政當局，特別是在美國和歐洲，繼續執行各自工廠改進方面的積壓項目，並且其運作率業務穩定。

We do see some nice pockets of growth coming for our water treatment businesses and see some tailwind and some benefits from things like CHIPS Act in terms of build out there, data centers which are acquiring an extensive amount of water in their cooling towers. And those kind of two markets really benefit our ChemTreat and our Trojan businesses, respectively. So we're seeing good sort of solid, steady, robust demand really for both water treatment and water quality.

我們確實看到我們的水處理業務出現了一些不錯的增長，並且看到了一些順風車和一些好處，例如 CHIPS 法案在建設方面，數據中心正在其冷卻塔中獲取大量的水。這兩個市場確實分別有利於我們的 ChemTreat 和 Trojan 業務。因此，我們看到了對水處理和水質的良好、穩定、強勁的需求。

Very helpful. And then, Jennifer, just going back to M&A, like I know timing is always difficult, but would you expect to get something done this year? And then under what conditions would you do a larger deal where you may potentially raise equity?

非常有幫助。然後，珍妮佛，回到併購，我知道時機總是很困難，但你希望今年能完成一些事情嗎？那麼在什麼條件下你會進行一筆可能籌集股本的更大交易呢？

Yes. I think you are right that M&A is clearly episodic. We can't guarantee the intersection of when we will see market company and valuation come together. As we've mentioned in the past, we're going to stay disciplined to that approach. We have to like the market, right?

是的。我認為你是對的，併購顯然是間歇性的。我們無法保證何時會看到市場公司和估值結合在一起。正如我們過去提到的，我們將嚴格遵守這種方法。我們必須喜歡市場，對吧？

It's got to be adjacent or near adjacent to where we play. The company has got to be a strong company that has secular drivers that we value under the umbrella of safeguarding the world's most vital resources, and we got to be able to get it at the right price. I think right now, valuations are still a little bit inflated. So we're looking at the intersection here. But we've got to fundamentally get to all three of those variables.

它必須與我們玩耍的地方相鄰或接近相鄰。該公司必須是一家強大的公司，擁有我們在保護世界上最重要資源的保護傘下所重視的長期驅動力，並且我們必須能夠以合適的價格獲得它。我認為目前估值仍然有點高。所以我們正在看這裡的十字路口。但我們必須從根本上了解所有這三個變數。

And all I can say is we're working hard in this area.

我只能說我們正在這方面努力。

And Andy, you're just going to look -- take a look at the equity side. It is just one of the components of how we think about funding any transaction. The main thing is value creation, right? Anything that's -- and ultimately help us create long-term value, we'll look at all forms of funding as we've kind of talked in the past. The main thing for us as we kind of think of any kind of funding is maintaining investment-grade balance sheet. That's [the next] thing for us.

安迪，你只要看看股權方面。這只是我們考慮為任何交易提供資金的方式之一。最重要的是創造價值，對嗎？任何最終幫助我們創造長期價值的事情，我們都會像我們過去談到的那樣考慮所有形式的融資。對我們來說，最重要的是，我們認為任何類型的融資都是維持投資等級資產負債表。這就是我們的[下一步]事。

Appreciate the call, guys.

感謝您的來電，夥計們。

John McNulty, BMO Capital Markets.

約翰·麥克納爾蒂 (John McNulty)，BMO 資本市場部。

Maybe one on the free cash flow side. Obviously, a really strong quarter for you there and hitting kind of conversion levels that are above what you're certainly looking for, for the year.

也許是自由現金流方面的一個。顯然，這對您來說是一個非常強勁的季度，並且達到了超越您今年所期望的轉換水平。

I guess can you help us to think about what drove that? And if that -- if we see more things that you can kind of wring out from whether it's a working capital side to kind of keep that level elevated for the next couple of quarters. How should we be thinking about that?

我想你能幫助我們思考一下是什麼推動了這一點嗎？如果是這樣的話——如果我們看到更多的東西，你可以從營運資金方面榨取更多的東西，以在接下來的幾個季度保持這一水平較高。我們該如何思考這個問題？

Yes, John. As you're going to look at the free cash flow conversion, quarter-to-quarter, it can vary. As you know, we have the bond payments that come in the first or the third quarter. So that gets -- impacts timing of the cash payments. So I would say when you look at the free cash flow conversion, we really look at it from a full year basis.

是的，約翰。當您查看每個季度的自由現金流轉換時，它可能會有所不同。如您所知，我們在第一季或第三季支付了債券。因此，這會影響現金支付的時間。所以我想說，當你看自由現金流轉換時，我們實際上是從全年的角度來看待它的。

Overall, given the strength that we're seeing in the business, the execution, we feel pretty good about delivering 100% to 110% free cash flow conversion that's of GAAP net income.

總體而言，考慮到我們在業務和執行方面看到的實力，我們對實現 100% 至 110% 的自由現金流轉換（即 GAAP 淨利潤）感到非常滿意。

Got it. Fair enough. And then just a question on SG&A. It took a reasonable jump up somewhere in the 7.5% kind of range. I guess can you help us to think about how much of that is just general labor inflationary type trends versus the corporate side where, look, now you're a public company versus investment for growth.

知道了。很公平。然後是關於 SG&A 的問題。它在 7.5% 的範圍內進行了合理的跳躍。我想你能幫助我們思考一下，其中有多少只是一般勞動力通膨型趨勢，而企業方面，看，現在你是一家上市公司，而不是成長投資。

I guess how should we be thinking about the various buckets there?

我想我們應該如何考慮那裡的各種桶子？

Yes. I think it's -- let's take it in two buckets, right? One is firstly on the business side. As we kind of told you right at the beginning of the year, we will be -- we are investing in the sales and marketing side to really drive the growth of the business. And you've seen that kind of really coming through or flowing through the numbers in the first and second quarter.

是的。我認為——讓我們把它分成兩部分，對嗎？一是首先是業務方面。正如我們在今年年初告訴您的那樣，我們將在銷售和行銷方面進行投資，以真正推動業務成長。您已經在第一季和第二季的數字中看到了這種真正的體現或流動。

John, inflation is there a little bit. I think just like everybody else, there's nothing that outsized, but it's -- these are really heads that are added more on the sales and marketing side to drive the growth, and you started seeing a little bit of the impact and more in the 2025 that you're going to see. So I would say on the business side, we are more or less in a normalized state so to speak, SG&A as a percent of revenues. On the corporate side, we were very judicious in how we bring the cost in. So what you're going to see is more of a run rate view of the corporate expenses in the second half of the year.

約翰，通貨膨脹是有一點。我認為，就像其他人一樣，沒有什麼太大的事情，但這些確實是在銷售和行銷方面增加更多的人員來推動成長，你開始看到一點點影響，到2025 年還會有更多影響你將會看到的。所以我想說，在業務方面，我們或多或少處於正常化狀態，SG&A 佔收入的百分比。在公司方面，我們在控製成本方面非常明智。因此，您將看到的更多是下半年公司支出的運行率視圖。

So there's going to be a little uptick in the second half versus the first year that you're going to see on the corporate side, but that should normalize in the second half. So nothing extraordinary on that front.

因此，在企業方面，下半年與第一年相比將會出現一些上升，但這應該會在下半年恢復正常。所以這方面沒有什麼特別的。

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

So just some thoughts on the product rationalization side of things, some of the initiatives you're doing there. Maybe just how far along do you think you are in that journey in general. Has most of the area has been identified already or do you think that there's more to come on that side of things?

所以只是關於產品合理化的一些想法，以及您在那裡所做的一些舉措。也許您認為自己在這段旅程中已經走了多遠。還是您認為這方面還有更多內容了嗎？

Yes. I think, Mike, what you've seen us do here is just pruning around the edges, right? And this is actually part of standard work that we do day in and day out in managing the portfolio of the businesses. It's not something that we look at on an episodic basis. We're looking at this all the time.

是的。我想，麥克，你看到我們在這裡所做的只是修剪邊緣，對吧？這實際上是我們日復一日管理業務組合的標準工作的一部分。這不是我們偶爾會看待的事情。我們一直在關注這個問題。

So I would say when we see opportunities for continued portfolio evolution to get us a stronger portfolio focused in the higher areas of growth with higher margin and recurring revenue. Anything that falls materially far away from that profile is something that we'll take action on. So we feel good about the portfolio we have today. We'll continue to prune around the edges as and when we see that it's appropriate to do so.

因此，我想說的是，當我們看到持續的投資組合演變的機會時，我們會獲得更強大的投資組合，專注於更高的成長領域、更高的利潤率和經常性收入。任何與該概況實質上相去甚遠的事情都是我們將採取的行動。因此，我們對今天的投資組合感覺良好。當我們認為合適時，我們將繼續修剪邊緣。

And then just a follow-up on, I think, Andy's question earlier. When you think about the greater confidence going into the back half of the year, has anything actually changed? Or is this just about starting to see momentum into this year, first quarter and is actually having materialized that gives you extra confidence? In other words, has there been really any change in your thinking about how these end markets are going to progress?

我認為，然後是安迪之前提出的問題的後續行動。當您想到下半年信心增強時，實際上有什麼變化嗎？或者這只是開始看到今年第一季的勢頭，並且實際上已經實現，這給了您額外的信心？換句話說，您對這些終端市場將如何發展的想法真的有任何改變嗎？

Well, I think we've come out of a pretty tumultuous several years following the impact of the pandemic, Mike. And we saw a lot of whiplash, right, in terms of price and volume and demand cycles and consumer spending and what they were spending on and so on. I would say that our confidence is built more as a function of an enduring steady state for our water quality businesses, driven by the secular drivers that we've talked about and an incrementally improving macro here for consumer products goods markets. 85% of our revenue goes into water, food and pharmaceuticals, and provided that those markets are steady or improving, we're going to see that benefit.

麥克，我認為我們已經度過了大流行影響後的相當動蕩的幾年。我們在價格、數量、需求週期、消費者支出以及他們的支出等方面看到了很多變化，對吧。我想說的是，我們的信心更多是建立在我們的水質業務持久穩定狀態的基礎上的，受到我們所討論的長期驅動因素以及消費品市場逐步改善的宏觀因素的推動。我們 85% 的收入用於水、食品和藥品，只要這些市場穩定或改善，我們就會看到這種效益。

Appreciate it. Thank you.

欣賞它。謝謝。

Brian Lee, Goldman Sachs.

布萊恩李，高盛。

I guess on the first one. Sameer, or maybe Jennifer, you mentioned during your prepared remarks some favorable mix, I think, in the water quality segment that might help margins. Can you elaborate any on that? And is that something that either you can quantify? Or as you think about the next few quarters, is that expected to persist?

我猜是第一個。薩米爾，或者也許是詹妮弗，您在準備好的發言中提到了一些有利的組合，我認為，在水質部分可能有助於提高利潤。能詳細說明一下嗎？這是你可以量化的東西嗎？或者當您考慮未來幾個季度時，這種情況預計會持續下去嗎？

Brian, yes, I'll take that one. The mix comment is really around consumables. We've seen a good amount of consumable uptick that's driving it. As you've seen, our recurring revenue is almost at 62% right now, and that is predominantly mix in little bit of spares and some of the SaaS software side, but predominantly consumables. If you recall and go back into the history, when things are more normalized, that tends to be in the high 50s, right?

布萊恩，是的，我會接受那個。混合評論實際上是圍繞消耗品進行的。我們已經看到消耗品的大幅成長推動了這一趨勢。正如您所看到的，我們的經常性收入目前幾乎為 62%，這主要是少量備件和一些 SaaS 軟體方面的混合，但主要是消耗品。如果你回想一下歷史，當事情變得更加正常化時，這個數字往往會在 50 多歲左右，對嗎？

So that kind of helps you dimensionalize. Now the transition, as the volume comes back on the printer side in PQI, instrumentation side on the water quality side, it's going to be a multi-quarter journey as we're going to move. So you're not going to see a big variation quarter-to-quarter, but that's 62% versus high 50s is the way to dimensionalize the change over time.

所以這可以幫助你維度化。現在，隨著 PQI 中印表機端的數量恢復、水質方面儀器端的恢復，我們要進行遷移，這將是一個需要多個季度的過程。因此，您不會看到每個季度都有很大的變化，但 62% 與 50% 左右的比例是衡量隨時間變化的方式。

All right. Fair enough. That's helpful. And then I know you're talking about improving end markets kind of across the board. Jennifer made some comments around the strong backlog trends in water quality.

好的。很公平。這很有幫助。然後我知道您正在談論全面改善終端市場。珍妮佛圍繞水質嚴重積壓的趨勢發表了一些評論。

Can you maybe talk a bit more specifically around -- I think you had comments in the release about strong bookings in packaging and color. Our understanding is that that's more of a short-cycle business. So where is the visibility? Are those the areas where you're seeing trends improving as well? Just kind of any commentary on the short cycle side of your business?

您能否更具體地談談——我想您在新聞稿中對包裝和顏色的預訂量有過評論。我們的理解是，這更像是一項短週期業務。那麼能見度在哪裡呢？您認為這些領域的趨勢也在改善嗎？對您業務的短週期方面有什麼評論嗎？

Yes. Relative to Packaging and Color, as we mentioned, we've just concluded our drupa trade show. That's a trade show that runs once every four years. And given the pandemic, this is the first time that show has been conducted in eight years. So there were some really good kind of pent-up demand that we saw there.

是的。正如我們所提到的，相對於包裝和顏色，我們剛剛結束了德魯巴貿易展。這是每四年舉辦一次的貿易展。鑑於大流行，這是八年來首次舉辦該節目。因此，我們在那裡看到了一些非常好的被壓抑的需求。

But I think our solutions and particularly those around innovation that we're providing and the S2 cloud-native digital integration of the workflow has got the attention of a lot of brand owners because they are under pressure to compress their development cycles and ensure the integrity of the information that they're working with, which gives every user of that system access to the same information. So we had a great showing there. The teams, all three teams in terms of Esko, Pantone and X-Rite really did a great job there. And I think the -- outside of the enthusiasm generated in drupa, the recovery of the CPG markets will lend itself to new product releases and new product innovations from brand owners.

但我認為我們的解決方案，特別是我們提供的創新解決方案以及工作流程的 S2 雲原生數位整合已經引起了很多品牌所有者的關注，因為他們面臨著壓縮開發週期和確保完整性的壓力他們正在使用的信息，這使該系統的每個用戶都可以訪問相同的信息。所以我們在那裡表現得很出色。這些團隊，Esko、Pantone 和 X-Rite 的所有三個團隊在那裡都做得非常出色。我認為，除了德魯巴展會產生的熱情之外，消費品市場的復甦將有助於品牌所有者發布新產品和進行新產品創新。

So they are getting ready, they have a number of projects that they're considering in terms of new product releases and so on and so forth. And so this is the front end of that. And I think we're well positioned to be able to help them with their solutions.

所以他們正在做好準備，他們正在考慮一些新產品發布等項目。這就是前端。我認為我們有能力幫助他們找到解決方案。

Okay. I appreciate the call. I'll pass it off.

好的。我很感謝您的來電。我會把它傳遞出去。

Brad Hewitt, Wolfe Research.

布拉德休伊特，沃爾夫研究公司。

So I guess I wanted to start on the margin side of things. Your guidance implies about a 50 basis points step down in margins in Q3 versus Q2 despite the fact that revenue, I think, should be flat to slightly up sequentially. And then also your trade show expenses should step down quarter-over-quarter. So just curious if you can talk about kind of the drivers of the sequential margin pressure there.

所以我想我想從邊緣方面開始。您的指導意味著第三季的利潤率比第二季下降約 50 個基點，儘管我認為收入應該持平或略有上升。然後，您的貿易展覽費用也應逐季度減少。所以我很好奇您是否可以談談連續利潤率壓力的驅動因素。

Yes, Brian, this is Sameer. Effectively, really two things here. The first one is the mix comment that we've made earlier. Our mix is pretty rich in consumables and recurring revenue right now. We have started seeing some good encouraging signs on the equipment side.

是的，布萊恩，這是薩米爾。實際上，這裡確實有兩件事。第一個是我們之前所做的混合評論。目前，我們的產品組合在消耗品和經常性收入方面非常豐富。我們已經開始在設備方面看到一些令人鼓舞的良好跡象。

We said in the second quarter, we finally see some positive revenue growth on the equipment side. So we've modeled in sort of a decent equipment growth in the Q3 and second half of the year. So mix impact is what's kind of flowing through here.

我們說過，在第二季度，我們終於看到設備的收入出現了一些正面的成長。因此，我們對第三季和下半年的設備成長進行了建模。所以混合影響就是這裡流動的。

And the other one I would say is really on the corporate side, as we kind of get into the second half of the year, we are going to be getting more towards the run rate expenses on the corporate expenses. So that's impacting the margin side as well. So it's really those two things that are impacting the margin.

我想說的另一個問題實際上是在公司方面，隨著我們進入下半年，我們將更專注於公司費用的運作費用。所以這也影響了利潤率。所以確實是這兩件事影響了利潤率。

Okay. That's helpful. And then I guess going back to the long-term incremental margin framework of 30% to 35%. I know that includes kind of some reinvestment in the business, but just given the strong execution on VES since the spin as well as the implied 50% incremental margins this year despite volume growth kind of in the 1% to 2% zone.

好的。這很有幫助。然後我想回到 30% 到 35% 的長期增量利潤框架。我知道這包括對業務的一些再投資，但考慮到自剝離以來 VES 的強勁執行力以及今年隱含的 50% 的增量利潤，儘管銷量增長在 1% 到 2% 的範圍內。

Does that give you confidence that perhaps something more like 40% plus incrementals going forward over the medium term?

這是否讓您有信心在中期內達到 40% 以上的增量？

Yes. Look, first of all, really kudos to all our teams, all our 16,000 people that are really helping drive this kind of fall-through that we are seeing, right? Really proud of what we've been able to achieve this year. But as you're going to think about 30% to 35%, it's really over the longer term, right? We do want to incorporate in that long-term value creation algorithm, a healthy investment mix from the sales side, from R&D side.

是的。瞧，首先，真的要向我們所有的團隊、我們所有的 16,000 名員工表示敬意，他們確實幫助推動了我們所看到的這種失敗，對吧？我們對今年所取得的成就感到非常自豪。但當你考慮 30% 到 35% 時，這確實是長期的，對吧？我們確實希望將銷售方面和研發方面的健康投資組合納入長期價值創造演算法中。

So I think from a long-term value framework perspective, I think still 30% to 35% is the right way to look at it. But I think -- and in the near term, really good performance and execution of the teams is driving a fall-through close to 50%.

所以我認為從長期價值框架的角度來看，我認為30%到35%仍然是正確的看法。但我認為，在短期內，團隊真正良好的表現和執行力正在導致接近 50% 的失敗。

Thanks, Sameer.

謝謝，薩米爾。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

I guess I'll follow up on that last question. You guys have made it pretty clear that you intend to continue to invest in growth here. Can you talk about what you think the growth rates will be in kind of investment in commercial resources, investment sales and investment in R&D kind of over the next several years rather than just any one year into the next?

我想我會跟進最後一個問題。你們已經非常明確地表示打算繼續投資這裡的成長。您能否談談您認為未來幾年（而非下一年）商業資源投資、投資銷售和研發投資的成長率是多少？

No, I think as you're going to think about long term, Nathan, these investments should be supportive of the mid-single-digit growth framework, right? And that is 4% to 6% kind of a range as we have kind of talked about. So as when we think about that mid-single-digit growth framework, we do reflect the incremental contribution coming from these investments on the sales and marketing side as well as on the R&D side, right? This is a technology-heavy business as you kind of think about in the commercial execution business. So those investments are key as we kind of think about long-term sustainable value creation.

不，我認為內森，當你考慮長期時，這些投資應該支持中個位數的成長框架，對吧？正如我們所討論的，這是 4% 到 6% 的範圍。因此，當我們考慮中個位數成長框架時，我們確實反映了這些投資在銷售和行銷方面以及研發方面的增量貢獻，對吧？正如您在商業執行業務中所想到的那樣，這是一項技術密集型業務。因此，當我們考慮長期可持續的價值創造時，這些投資是關鍵。

So you would be looking at kind of that same mid-single-digit growth in those investments as revenue?

那麼您是否會認為這些投資的收入也有同樣的中個位數成長？

Yes. Look, it kind of depends, right? Just to make sure, Nathan, right? On average, right, this is a cumulative thing that we're looking at.

是的。看，這有點取決於，對吧？只是為了確定一下，內森，對嗎？平均而言，這是我們正在關注的累積因素。

Of course, the new investment should be incrementally driving higher growth from their side. But some things fall out of the portfolio too.

當然，新的投資應該逐步推動他們的更高成長。但有些東西也被排除在投資組合之外。

Got it. The other question I wanted to ask was on the recycle, reuse, reclaim market driver. I think that is likely to be a pretty considerable driver of investment from industrial water users. So I'm hoping you could talk a little bit more about where Veralto plays, kind of how much of your revenue that makes up where you think it could go to over the next 5 to 10-year kind of time frame? Long-term growth rate you're expecting out of that just because I think that's going to be a pretty good driver of incremental demand.

知道了。我想問的另一個問題是關於回收、再利用、回收市場驅動因素。我認為這可能是工業用水用戶投資的相當大的推動力。所以我希望你能多談談 Veralto 的業務，你認為在未來 5 到 10 年的時間範圍內，你的收入有多少可以用於哪些方面？您所期望的長期成長率只是因為我認為這將成為增量需求的一個很好的驅動力。

Yes. Thanks for the question, Nathan. We do see great demand here in recycle, reclaim and reuse. The business is most impacted by that certainly is our Trojan business who is well positioned there to help customers with their sustainability initiatives in the space, ChemTreat also has a play here. And certainly, if you're going to be moving water around, you're going to have to test it as well.

是的。謝謝你的提問，內森。我們確實看到了回收、回收和再利用方面的巨大需求。受此影響最大的業務當然是我們的 Trojan 業務，該業務處於有利地位，可以幫助客戶實施該領域的可持續發展計劃，ChemTreat 也在這裡發揮作用。當然，如果你要移動水，你也必須對其進行測試。

So it does create some opportunity for our analytics businesses.

因此，它確實為我們的分析業務創造了一些機會。

But the primary beneficiary really of this opportunity would be our Trojan business. And frankly, we see this space growing probably mid- to high single digits for the foreseeable future. Lots of industries are under pressure to achieve their sustainability targets and we're well positioned with solutions to help them.

但這個機會真正的主要受益者將是我們的特洛伊木馬業務。坦白說，我們認為在可預見的未來，這個空間可能會以中位數到高個位數的速度成長。許多行業都面臨著實現永續發展目標的壓力，而我們有能力提供解決方案來幫助他們。

Great. Thanks for taking my questions.

偉大的。感謝您回答我的問題。

Andrew Krill, Deutsche Bank.

安德魯·克里爾，德意志銀行。

I want to sort back on margins again in a little bit more on the medium-term perspective. I know there's been a lot of discussion just that the company has meaningfully more opportunities to improve margins than might be improved appreciated by investors.

我想從中期角度再次對利潤率進行排序。我知道有很多討論認為，該公司提高利潤率的機會比投資者可能理解的要多。

Just can you update us on any like the findings you've had since the spin on that and whether you would consider especially quantifying those at any point? And then would you also say, is there more opportunity in one segment versus the other? Or do you think it's kind of similar?

您能否向我們介紹自該問題以來您所得到的最新發現以及您是否會考慮在任何時候特別量化這些發現？然後您是否還會說，某個細分市場相對於其他細分市場是否有更多機會？或者你認為這有什麼相似之處？

Yes, Andrew. As you're going to look at the opportunities on the margin expansion, right, this is -- so the work that the teams have been doing on the procurement side, really our folks on the front line to the shop floor, on the factory optimization. So these are lots of singles and doubles. As I said earlier on the call, it's not one or two factors that are driving this margin expansion. And that, frankly, really is the beauty of the Kaizen culture, right?

是的，安德魯。As you're going to look at the opportunities on the margin expansion, right, this is -- so the work that the teams have been doing on the procurement side, really our folks on the front line to the shop floor, on the factory最佳化.所以這些都是很多單打和雙打。正如我之前在電話會議上所說，推動利潤率擴張的因素並不是一兩個。坦白說，這確實是 Kaizen 文化的美妙之處，對吧？

That's where you're going to see the margin contribution coming in. Those efforts really that the teams have been doing and execution that is happening is giving us the confidence to really up the bar on the margin expansion for the full year. We -- instead of 50 to 75 basis points, what we've said, raised the guidance to is 75 basis point margin expansion for the full year this year. So that should get the full year pretty much close to 24% on the operating earnings margin.

這就是您將看到利潤貢獻的地方。團隊一直在做的這些努力和正在發生的執行讓我們有信心真正提高全年利潤率擴張的標準。我們——而不是我們所說的 50 至 75 個基點，而是將今年全年的利潤率擴張指引提高至 75 個基點。因此，全年營業利潤率應接近 24%。

Okay. Great. Very helpful. And then can you give us an update on the situation in Argentina? And maybe just how much contingency, if you will, you have left in your guidance for the full year?

好的。偉大的。非常有幫助。那麼能否介紹一下阿根廷的最新情況呢？如果您願意的話，也許您在全年指導中還留有多少意外情況？

And then I guess, depending on how that shakes out the rest of the year, how that could help or hurt PQI margins in the back half?

然後我想，這將如何影響或損害下半年的 PQI 利潤率，具體取決於今年剩餘時間的情況。

Yes, very brief, right? And Andrew, as you're going to look at Argentina, as we said in the Q1 call, we did the blue chip swap to really insulate any impact on the historical cash that really drove the impact last year. But as you're going to move into the -- into this year, effectively, our exposure is much smaller, and that's reflected in the guide.

是的，非常簡短，對吧？安德魯，正如您將要關注的阿根廷，正如我們在第一季電話會議中所說，我們進行了藍籌互換，以真正隔離對歷史現金的任何影響，而歷史現金確實推動了去年的影響。但隨著今年的到來，我們的風險敞口要小得多，這在指南中有所反映。

Okay, great. Thank you.

好的，太好了。謝謝。

Andrew Buscaglia, BNP.

安德魯·巴斯卡利亞，法國巴黎銀行。

Just looking at your guidance and trying to map out the ranges and looking at the high end. I'm wondering kind of what's contemplating or wouldn't form the high end of your guidance because it's difficult to get there. So you either need sales to accelerate for some reason or maybe you have some extra margin expansion in your back pocket. I guess, of those two, what's behind that high end is my question.

只需查看您的指導並嘗試繪製範圍並查看高端即可。我想知道什麼正在考慮或不會形成你的指導的高端，因為它很難到達那裡。因此，您要么出於某種原因需要加速銷售，要么您的口袋裡有一些額外的利潤擴張。我想，在這兩者中，高端背後的原因是什麼是我的問題。

Yes. It really comes down to how you're going to think about the CPG markets, right? CPG markets are evolving, incrementally becoming positive, but it's a pretty fast-changing view that we are seeing. So I think as you're going to look at the guidance range, one of the big drivers is how you kind of think about the CPG markets and the impact they will have on the PQI top line. I would say if there's one thing I can say that, that's one of the key things.

是的。這實際上取決於您如何看待 CPG 市場，對嗎？CPG 市場正在不斷發展，逐漸變得積極，但我們看到的是一個快速變化的觀點。因此，我認為，當您查看指導範圍時，主要驅動因素之一是您如何看待 CPG 市場及其對 PQI 營收的影響。我想說，如果我可以說一件事，那就是關鍵的事情之一。

And then on the margin side, right, I mean, there's always raw material price versus raw material contribution we always look at. We believe we have baked in a pretty prudent view here. So any benefit from that will be more inuring towards the high end of the range.

然後在利潤方面，對，我的意思是，我們總是關注原材料價格與原材料貢獻。我們相信我們已經有了相當謹慎的看法。因此，由此帶來的任何好處都將更加傾向於高端產品。

Okay. That's helpful. And yes, I wanted to ask any update on the PFAS regulation opportunity in terms of whether anything new around your discussions with customers or I know you guys are talking about product development. Just what's the latest there?

好的。這很有幫助。是的，我想詢問有關 PFAS 監管機會的任何最新情況，即你們與客戶的討論是否有任何新內容，或者我知道你們正在談論產品開發。最新消息是什麼？

Yes, we continue to be interested in the space. But as you know, this is an incredibly difficult and complex problem to solve. We believe that we're well positioned, given our 70-year history at Hach for democratizing test and analytics and our long track record at Trojan for developing treatment solutions. So we continue to invest in this space and stay focused there. But real fit-for-purpose solutions that are focused on at site or in-line testing and at site real-time destruction of PFAS are going to be remaining difficult problems to solve.

是的，我們仍然對該領域感興趣。但如您所知，這是一個非常難以解決且複雜的問題。鑑於我們在 Hach 70 年的民主化測試和分析歷史以及我們在 Trojan 開發治療解決方案的長期記錄，我們相信我們處於有利位置。因此，我們繼續投資這個領域並保持專注。但專注於現場或線上測試以及現場即時銷毀 PFAS 的真正適合目的的解決方案將仍然是需要解決的難題。

But we're focused on creating winning outcomes for our customers that have fit-for-purpose solutions. So still a few years away here, but we are interested in the space as we are with sort of all of the micro contaminants that come into the regulation frame.

但我們專注於為擁有適合用途的解決方案的客戶創造成功的結果。這裡還有幾年的時間，但我們對該領域很感興趣，因為我們對進入監管框架的所有微污染物都感興趣。

Okay. All right.

好的。好的。

Joe Giordano, TD Cowen.

喬·佐丹奴，TD·考恩。

I was interested in the industrial growth commentary. It's just -- we're not hearing that in a lot of places, right? Industrial data is pretty bad and most companies were seeing orders declined. So it is interesting and good to see that there. Can you kind of -- what's driving that?

我對工業成長評論感興趣。只是——我們在很多地方都沒有聽到這樣的說法，對吧？工業數據相當糟糕，大多數公司的訂單都出現下降。所以很有趣也很高興在那裡看到這一點。你能說一下——是什麼推動了這一點嗎？

Is it new project ramps? Is it like -- is it optimization at existing facilities? Like what's the nature of this kind of growth here that does seem somewhat unique?

是新專案坡道嗎？是不是對現有設施進行最佳化？這裡這種看起來確實有些獨特的成長的本質是什麼？

Yes. I think what you're seeing here is that there's really three things that differentiate us from other industrials. We play in the end markets with really attractive and kind of non-optional secular growth drivers, right? So when you've got a business that's 85% of our sales in food, water and pharma, these are not elective areas of testing, right? So these are really durable markets.

是的。我認為您在這裡看到的是，我們與其他行業的區別確實在於三點。我們在終端市場上發揮著真正有吸引力且非選擇性的長期成長動力，對嗎？因此，當您的業務 85% 的銷售額來自食品、水和藥品時，這些就不是可選的測試領域，對吧？所以這些都是真正持久的市場。

And as a consequence, the way our businesses have been built are durable in turn. 60% of our recurring revenue or 60% of our revenue is kind of in this recurring revenue space. It's a razor-razorblade business model with high-margin consumables, and these products and services that are deployed for our customers are essential parts of their operation. So if they choose not to use our products or they choose not to treat and measure and monitor and so on, the cost of failure to them is high because we're really tied to sort of product quality and public health. So the last thing I would say is VES provides a competitive advantage for us really in terms of differentiating us relative to talent growth and continuous improvement.

因此，我們的業務建立方式反過來也是持久的。我們 60% 的經常性收入或 60% 的收入都屬於這個經常性收入領域。這是一種具有高利潤消耗品的刮鬍刀刀片商業模式，為我們的客戶部署的這些產品和服務是他們營運的重要組成部分。因此，如果他們選擇不使用我們的產品，或選擇不進行治療、測量和監測等，那麼他們的失敗成本就會很高，因為我們確實與產品品質和公共衛生息息相關。所以我要說的最後一件事是，VES 確實為我們提供了競爭優勢，使我們在人才成長和持續改進方面脫穎而出。

And then just last for me on the margins. So we touched on this a bunch, but with gross margins at 60%, it's excellent. If I look at the spread between gross margins and EBITDA, 30% in SG&A seems a little high, you're a newer company, like long term, what's a realistic level that, that should normalize out at?

然後就在邊緣對我來說最後。我們對此進行了很多討論，但毛利率為 60%，這非常好。如果我看一下毛利率和 EBITDA 之間的差距，SG&A 的 30% 似乎有點高，你是一家新公司，從長遠來看，應該正常化的現實水平是多少？

Yes. Joe, I'll take that one. It's really the sales and marketing, right? Just to take you back, effectively, when you look at a P&L, it really aligns with how we create value in the business. It's more driven by investments in R&D.

是的。喬，我想要那個。這真的是銷售和行銷，對吧？其實，當你查看損益表時，你會發現它確實與我們在業務中創造價值的方式相符。它更多是由研發投資所驅動的。

It's a technology-driven business and then on the commercial side, right? The secret sauce, what we believe and our competitive strength is a direct business model that effectively does result in the sales and marketing, that impact that you see in the numbers. Overall, we feel really good about our business model that is more direct, and it really drives a competitive advantage in the marketplace.

這是一個技術驅動的業務，然後是商業方面，對嗎？我們的秘訣、我們的信念和競爭優勢是一種直接的商業模式，它確實有效地促進了銷售和行銷，即您在數位中看到的影響。總的來說，我們對我們更直接的商業模式感覺非常好，它確實推動了市場競爭優勢。

Thanks, guys.

謝謝，夥計們。

And this does conclude our question-and-answer session. I'd be happy to return the conference to Ryan Taylor for closing comments.

我們的問答環節到此結束。我很樂意將會議交還給瑞安泰勒（Ryan Taylor）以徵求結束意見。

Thank you, Leo, and thanks for everybody that joined us on the call today. We really appreciate your engagement and the discussion. Feel free to reach out to me if you have any more follow-ups. Thanks again for joining us, and we'll talk to you next quarter.

謝謝 Leo，也謝謝今天加入我們電話會議的所有人。我們非常感謝您的參與和討論。如果您有任何後續行動，請隨時與我聯繫。再次感謝您加入我們，我們將在下個季度與您交談。

This does conclude today's conference. You may now disconnect your lines, and everyone, have a great day.

今天的會議到此結束。現在您可以斷開線路了，祝大家有個愉快的一天。