Willdan Group Inc (WLDN) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Willdan Group Second Quarter 2024 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Al Kaschalk, Vice President.

您好，歡迎參加 Willdan 集團 2024 年第二季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向大家介紹你們的東道主，副總統阿爾·卡沙克 (Al Kaschalk)。

Thank you, Paul. Good afternoon, everyone, and welcome to Willdan Group's second quarter fiscal 2024 earnings call. Joining our call today are Mike Bieber, President and Chief Executive Officer; and Kim Early, Executive Vice President and Chief Financial Officer.

謝謝你，保羅。大家下午好，歡迎參加 Willdan Group 2024 財年第二季財報電話會議。今天加入我們電話會議的還有總裁兼執行長 Mike Bieber； Kim Early，執行副總裁兼財務長。

This call builds on our earnings release we issued after market closed today. You can find today's earnings release in the press release section of our website at ir.willdangroup.com. A copy of the slides that accompany today's call are located in the Events and Presentations section of the website. In addition, our Willdan investor report is available under Stock Information section of the website. Management will review prepared remarks, and then we'll then open the call up to your questions.

這次電話會議是基於我們今天收盤後發布的財報發布的。您可以在我們網站 ir.willdangroup.com 的新聞稿部分找到今天的收益報告。今天電話會議附帶的幻燈片副本位於網站的活動和簡報部分。此外，我們的威爾丹投資者報告可在網站的股票資訊部分找到。管理層將審查準備好的評論，然後我們將開始電話討論您的問題。

Statements made in the course of today's conference call, including answers to your questions, which are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve certain risks and uncertainties and include non-GAAP measures. A more detailed safe harbor statement is on the cover of our first slide and our annual report on Form 10-K. I will now turn the call over to Mike Bieber, Willdan's President and CEO, who will begin on slide 2.

在今天的電話會議中所作的聲明（包括對您的問題的回答）並非純粹歷史性的，而是 1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明。前瞻性陳述涉及某些風險和不確定性，並包括非公認會計準則措施。更詳細的安全港聲明位於我們的第一張投影片的封面和 10-K 表格年度報告中。我現在將把電話轉給 Willdan 的總裁兼執行長 Mike Bieber，他將從幻燈片 2 開始。

Thanks, Al. We had a record second quarter; exceeding consensus estimates and our own expectations. Contract revenue was up 18% organically and adjusted EBITDA was up 56% year-over-year. GAAP and adjusted EPS were up even stronger, both more than doubling year-over-year. During Q2, we had unexpectedly strong revenue across engineering and program management. We've also done a good job of converting revenue into free cash flow this year.

謝謝，艾爾。我們的第二季創歷史新高；超出共識估計和我們自己的預期。合約收入有機成長 18%，調整後 EBITDA 年成長 56%。公認會計原則和調整後每股盈餘成長更為強勁，均較去年同期成長了一倍以上。在第二季度，我們在工程和專案管理方面的收入出乎意料地強勁。今年我們在將收入轉化為自由現金流方面也做得很好。

Given our results for the first half of 2024, and our current momentum, we are raising our full-year financial targets, which Kim will expand on later. The electric load growth macro trends strengthened during the quarter, and I'll talk more about that in a few minutes. I'm proud of our team for delivering another quarter above expectations. Slide 3 is a quick reminder of where Willdan is positioned for the newer listener. Willdan helps transition communities to clean energy and a more sustainable future.

鑑於我們 2024 年上半年的業績以及當前的勢頭，我們正在提高全年財務目標，Kim 稍後將進一步闡述這一目標。本季電力負載成長的宏觀趨勢有所加強，我將在幾分鐘後詳細討論這一點。我為我們的團隊再次超出預期的季度業績感到自豪。投影片 3 快速提醒了 Willdan 對新聽眾的定位。威爾丹幫助社區過渡到清潔能源和更永續的未來。

We are just under 1,700 employees, comprised mostly of scientists, engineers and other technical professionals. We have 53 offices across North America and have helped clients avoid emissions of 7.8 million metric tons of greenhouse gases. State and local government customers comprise 49% of our revenue, while utilities are 44% and commercial customers are 7%. Demand for our services with all three customer groups, is healthy. Our work for government clients is growing organically at a double-digit pace, and the outlook is positive.

我們擁有近 1,700 名員工，其中大部分是科學家、工程師和其他技術專業人員。我們在北美設有 53 個辦事處，已協助客戶避免了 780 萬噸溫室氣體的排放。州和地方政府客戶占我們收入的 49%，公用事業佔 44%，商業客戶佔 7%。所有三個客戶群對我們服務的需求都很健康。我們為政府客戶提供的工作正以兩位數的速度有機成長，前景樂觀。

Our work for utilities is primarily under multiyear contracts and remains robust. Our work for commercial clients is largely related to energy usage at data centers. Willdan is focused on the data center market for many years because of its energy intensiveness, but the market has recently become more covered in the media due to AI load growth. We would like to expand our percentage of commercial work, both organically and through future acquisitions.

我們為公用事業公司所做的工作主要是根據多年期合約進行的，並且仍然強勁。我們為商業客戶提供的工作很大程度上與資料中心的能源使用有關。由於資料中心能源密集，威爾丹多年來一直專注於資料中心市場，但由於人工智慧負載的成長，該市場最近越來越多地被媒體報導。我們希望透過有機方式和未來的收購來擴大我們的商業工作比例。

Onto slide 4. Our upfront policy and data analytics work informs Willdan's strategy. In our upfront work, we are seeing particular demand for integrated resource planning and asset valuation work that is often associated with data center electricity load.

轉到投影片 4。我們的前期政策和數據分析工作為威爾丹的策略提供了資訊。在我們的前期工作中，我們看到對通常與資料中心電力負荷相關的綜合資源規劃和資產評估工作的特殊需求。

In Engineering, we saw strong geographic expansion in Florida and Texas and continued demand from Southwestern City customers. In Program Management, we performed above our plan on utility programs and building energy programs for cities. I'll note that at Willdan, while revenue is skewed towards larger program management, our profit is delivered about equally from each of the three phases of work.

在工程領域，我們看到佛羅裡達州和德克薩斯州的地理擴張強勁，以及西南城市客戶的持續需求。在專案管理中，我們在城市公用事業專案和建築能源專案方面的表現超越了計劃。我要指出的是，在威爾丹，雖然收入偏向於更大的專案管理，但我們的利潤從三個工作階段的每個階段中獲得的利潤大致相等。

The right side of this slide provides two examples of how this business model works. More than 10 years ago, we began consulting to a New England investor on utility. That upfront consulting work led in part to a new software license sale in 2023 and then to a large energy efficiency program management contract earlier this year. The upfront work allowed us to understand the clients' unique needs more thoroughly and craft more effective program management solutions. The City of Paramount, win in Q2 is another example of this model in practice.

這張投影片的右側提供了該業務模型如何運作的兩個範例。十多年前，我們開始為新英格蘭投資者提供公用事業的諮詢。這項前期諮詢工作在一定程度上促成了 2023 年新軟體許可證的銷售，然後在今年稍早達成了一份大型能源效率專案管理合約。前期工作使我們能夠更全面地了解客戶的獨特需求，並制定更有效的專案管理解決方案。派拉蒙市在第二季度的勝利是這種模式在實踐中的另一個例子。

We had been providing consulting and engineering services to this California client continuously since 1973. We developed a thorough understanding of the city's needs in this quarter, were then awarded an $18 million program management contract to oversee the design and construction of new solar, battery and EV charging infrastructure all aligned with the city's vision for energy transition.

自 1973 年以來，我們一直為這位加州客戶提供諮詢和工程服務。我們對本季度城市的需求有了透徹的了解，然後獲得了一份1800 萬美元的項目管理合同，以監督新太陽能、電池和電動汽車充電基礎設施的設計和建設，所有這些基礎設施都符合城市的能源轉型願景。

On slide 5, we had several notable wins this quarter. We won a study from Meta, formerly Facebook on the emissions related to a voluntary clean energy procurement program that they've put in place. For the state of Virginia, which is the largest data center market in the US, we were awarded a program to study the grid impact for energy demand.

在幻燈片 5 上，我們本季取得了幾項重大勝利。我們贏得了 Meta（前身為 Facebook）的一項研究，內容涉及與他們實施的自願清潔能源採購計劃相關的排放量。對於美國最大的資料中心市場維吉尼亞州，我們獲得了一項研究電網對能源需求影響的計畫。

This study includes the analysis of integrated 10 to 15 gigawatts of new generation of load into the Mid-Atlantic regional power grid by 2030. That's a lot of change. For Virginia, we are assessing the impacts to both the utility service providers and the rate payers, cool project. For Glendale Water and Power located in California, we won a distributed energy resources study. I already mentioned the City of Paramount win in Q2. And lastly, for a Washington state municipal utility, we won an energy design assistance contract.

這項研究包括對 2030 年大西洋中部區域電網整合 10 至 15 吉瓦新一代負載的分析。這是一個很大的改變。對於維吉尼亞州，我們正在評估對公用事業服務提供者和納稅人的影響，這是一個很酷的項目。對於位於加州的格倫代爾水電公司，我們贏得了一項分散式能源研究。我已經提到了派拉蒙市在第二季的勝利。最後，我們為華盛頓州市政公用事業公司贏得了一份能源設計援助合約。

On slide 6. Load growth is creating exciting new opportunities for Willdan, and we believe will help drive our growth for years to come. On the left side of this slide, for the first time in many decades, material electricity load growth has started to occur in the US. Experts are uncertain about the future speed and scale of this load growth, but there is widespread consensus now that it will occur and has already begun.

在投影片 6 上。負載成長為 Willdan 創造了令人興奮的新機遇，我們相信這將有助於推動我們未來幾年的成長。在這張投影片的左側，幾十年來首次，美國的材料電力負荷開始出現成長。專家們不確定這種負載成長的未來速度和規模，但現在人們普遍認為這種負載成長將會發生並且已經開始。

The main drivers for this growth include the electrification of cities, buildings and transportation, the reshoring of industrial manufacturing facilities in the US and electricity consumed by data centers. The map on the right shows that AI is expected to drive more power demand from data centers in certain pockets of the US. The DC area especially, the Southeast US, Midwest and the West Coast are projecting far more rapid growth in average areas.

這一成長的主要驅動力包括城市、建築和交通的電氣化、美國工業製造設施的回流以及資料中心的電力消耗。右圖顯示，人工智慧預計將推動美國某些地區資料中心的更多電力需求。特別是華盛頓地區、美國東南部、中西部和西海岸的平均面積預計成長速度要快得多。

Low electricity transfer capability between these regions is a key risk for reliability, particularly as electricity load shapes change. Last quarter, I talked about double digit electricity price increases in California and New York, currently Willdan's two largest markets.

這些區域之間的電力傳輸能力低是可靠性的關鍵風險，特別是當電力負荷形狀改變時。上個季度，我談到了加州和紐約州目前威爾丹最大的兩個市場的兩位數電價上漲。

The compounding effect of higher electricity prices and higher electricity load provides a multiyear catalyst for Willdan solutions. We're clearly excited about the energy transition capabilities that we've assembled: planning software, energy efficiency, and engineering. We plan to add even more capabilities through M&A in the quarters ahead.

電價上漲和電力負荷增加的複合效應為 Willdan 解決方案提供了多年的催化劑。我們顯然對我們所組裝的能源轉型能力感到興奮：規劃軟體、能源效率和工程。我們計劃在未來幾季透過併購增加更多功能。

Kim, over to you.

金，交給你了。

Thanks Mike, and good afternoon, everyone. Our second quarter results exceeded expectations. Strong earnings, combined with efficient working capital management have reduced our debt leverage, improved liquidity, positioning us to invest more aggressively in future growth. Slide 7 shows the key metrics for our second quarter performance. Contract revenue was up 18% to $141 million, and net revenue, net of subcontractors and materials increased 17% to $73 million.

謝謝麥克，大家下午好。我們第二季的業績超出了預期。強勁的獲利加上高效的營運資本管理降低了我們的債務槓桿，改善了流動性，使我們能夠更積極地投資於未來的成長。投影片 7 顯示了我們第二季業績的關鍵指標。合約收入成長 18%，達到 1.41 億美元，扣除分包商和材料後的淨收入成長 17%，達到 7,300 萬美元。

Adjusted EBITDA increased 56% over the prior year to $12.8 million or 17.7% of net revenue versus $8.2 million or 13.3% of net revenue a year ago. The second quarter earnings benefited from a slightly improved gross profit margin on the expanded volume and G&A expenses, which increased at a slower pace than our revenue growth. With reduced net interest costs and a significantly lower tax rate than the previous year, our adjusted EPS more than doubled to $0.55 per share, $0.33 on a GAAP basis, up from $0.03 the prior year.

調整後 EBITDA 比上年增長 56%，達到 1,280 萬美元，佔淨收入的 17.7%，而一年前為 820 萬美元，佔淨收入的 13.3%。第二季收益受惠於銷售擴大和一般及行政費用的毛利率略有改善，其成長速度低於我們的營收成長。由於淨利息成本降低以及稅率顯著低於上年，我們調整後的每股收益增加了一倍多，達到每股 0.55 美元，按 GAAP 計算為 0.33 美元，高於上年的 0.03 美元。

The second quarter results were favorably impacted by growth in municipal engineering and program management revenues derived from the strong and increasing backlog of new contracts and by the acceleration of utility program management revenues compared to last year when the utility revenues were heavily back-end loaded into our fourth quarter.

第二季的業績受到了市政工程和專案管理收入成長的有利影響，這些收入源於新合約積壓的強勁且不斷增加，以及公用事業專案管理收入與去年相比的加速，當時公用事業收入大量後端加載到我們的第四季。

As a result of earlier work authorizations, much of that 2023 fourth quarter revenue surge has been brought forward into the first half of the current year and will thus reduce the kind of year-end revenue and earnings spike we experienced last year.

由於較早的工作授權，2023 年第四季收入激增的大部分已提前到今年上半年，因此將減少我們去年經歷的年終收入和盈利激增。

Lower leverage and higher cash balances reduced net interest costs, and the screen impacts related to stock compensation and energy efficiency building reductions aided in lowering the effective tax rate to result in the bottom-line improvement for the quarter compared to last year. We expect our second half effective tax rate to also be favorably impacted by additional deductions derived from these discrete items.

較低的槓桿率和較高的現金餘額降低了淨利息成本，與股票補償和能源效率建築減少相關的螢幕影響有助於降低有效稅率，從而使本季的利潤較去年有所改善。我們預計下半年的有效稅率也將受到這些離散項目的額外扣除額的有利影響。

Slide 8 displays the key metrics for the first half of the year. Contract revenue was up 19% over 2023 to $264 million, while net revenue increased 14% to $141 million with the gross profit margin only slightly lower than last year on the expanded volume and continued operating leverage from the slower-growing G&A expenses, adjusted EBITDA increased 32% to $23.9 million or 16.9% of revenue for the six months compared to $18.1 million or 14.6% of net revenue for the first half of last year.

幻燈片 8 顯示了今年上半年的關鍵指標。合約營收比2023 年成長19%，達到2.64 億美元，淨收入成長14%，達到1.41 億美元，毛利率僅略低於去年，原因是業務量擴大以及一般及行政費用成長放緩帶來的持續營運槓桿、調整後EBITDA成長了 32%，達到 2,390 萬美元，佔這六個月收入的 16.9%，而去年上半年為 1,810 萬美元，佔淨收入的 14.6%。

The reduced net interest expense and the lower effective tax rate enabled adjusted EPS to grow by 64% to $0.95 per share, $0.54 on a GAAP basis, up from $0.10 the prior year. Again, significantly higher municipal engineering and program management revenue and a smoother acceleration of utility program revenues drove the improved results for the period compared to 2023.

淨利息支出的減少和有效稅率的降低使得調整後每股收益增長 64%，達到每股 0.95 美元，按 GAAP 計算為 0.54 美元，高於上一年的 0.10 美元。同樣，與 2023 年相比，市政工程和專案管理收入的顯著增加以及公用事業專案收入的平穩加速推動了該時期的業績改善。

On slide 9, the strong earnings and focused working capital management efforts led to continued improvement in our balance sheet ratios. Net debt is down from $75 million at year-end 2023 to $50 million at the end of June, resulting in a reduction in the net leverage ratio, total debt less cash to 1.0 times adjusted EBITDA at the end of June, down from 1.6 times in December.

在投影片 9 中，強勁的獲利和集中的營運資本管理工作導致我們的資產負債表比率持續改善。淨債務從 2023 年底的 7,500 萬美元降至 6 月底的 5,000 萬美元，導致淨槓桿率、總債務減現金降至 6 月底調整後 EBITDA 的 1.0 倍，低於 1.6 倍十二月。

Despite the double-digit revenue growth for the year, non-cash working capital declined since year-end and contributed to the $28 million in net cash provided from operations through the first half of the year, up from $19 million a year ago. Our $50 million untapped line of credit and $44 million cash balance gives us a solid platform of liquidity to finance future growth.

儘管今年的收入成長了兩位數，但非現金營運資本自年底以來有所下降，導致上半年營運提供的淨現金為 2,800 萬美元，高於一年前的 1,900 萬美元。我們 5,000 萬美元的未利用信貸額度和 4,400 萬美元的現金餘額為我們提供了堅實的流動性平台，為未來的成長提供資金。

With slide 10, in summary, our second quarter and year-to-date results surpassed expectations, reinforcing our optimism about the future and opening doors for accelerated growth, including strategic opportunities through M&A. We're thus raising our guidance for the full year as follows, net revenue between $280 million and $290 million, adjusted EBITDA between $50 million and $52 million, adjusted diluted earnings per share of between $2 and $2.10 per share. These numbers assume an effective tax rate of 14% for the full year and 14.2 million shares outstanding. Operator, we're now ready for questions.

投影片 10 總結道，我們第二季和年初至今的業績超出了預期，增強了我們對未來的樂觀態度，並為加速成長打開了大門，包括透過併購獲得的策略機會。因此，我們將全年指引調高如下：淨收入在2.8 億美元至2.9 億美元之間，調整後EBITDA 在5,000 萬美元至5,200 萬美元之間，調整後攤薄每股收益在2 美元至2.10 美元之間。這些數字假設全年有效稅率為 14%，流通股數為 1,420 萬股。接線員，我們現在準備好提問了。

(Operator Instructions)

（操作員說明）

Craig Irwin, ROTH Capital Partners.

克雷格歐文，羅仕資本合夥人。

Hi. Good evening. Thank you for taking my questions. So Mike, Integral Analytics has made a material contribution, sort of lumpy contribution in the past but it looks like this year things are a little bit more even on a quarterly basis. Can you maybe update us on what's changed in the character of this business? Did we see similar revenue in the second quarter to the first quarter? Do you think that some of the volatility in earnings related to Integral Analytics might potentially be behind us and really more of a source of upside over the next number of quarters?

你好。晚安.感謝您回答我的問題。因此，麥克，Integral Analytics 做出了實質貢獻，過去的貢獻有點不穩定，但看起來今年的情況按季度來看更加均勻。您能否向我們介紹一下該行業的特點發生了什麼變化？我們看到第二季的營收與第一季相似嗎？您是否認為與 Integral Analytics 相關的一些收益波動可能已經過去，並且真正成為未來幾季上漲的來源？

Yeah, good question, Craig. I do think it is smoother now. We've worked consciously to do that. So it's smoother than last year. We saw early contract wins in Q1 of this year. Part of the reason that it is smoother, and it will be smoother in the future, is that we're doing more add-ons and small additions to existing licenses that we've already sold.

是的，好問題，克雷格。我確實認為現在更順利了。我們有意識地努力做到這一點。所以比去年還順利。我們在今年第一季看到了早期的合約。它變得更加流暢，並且將來也會更加流暢，部分原因是我們正在對我們已經出售的現有許可證進行更多的附加組件和小幅補充。

We've also partnered quite a bit with E3 on the services side to pair services with software licenses. So you're right, it is smooth. It's a conscious effort we've made, and it should remain so in the future. Having said that, there will always be some lumpiness due to accounting requirements. When we sell a large license that is capitalized by the customer, we have to recognize all of that license revenue upfront. So that's what makes it lumpy, remains somewhat so, but less than in the past.

我們還在服務方面與 E3 進行了大量合作，將服務與軟體許可證配對。所以你是對的，它很順利。這是我們有意識地做出的努力，將來也應該如此。話雖如此，由於會計要求，總是會有一些混亂。當我們出售由客戶資本化的大型許可證時，我們必須預先確認所有該許可證收入。所以這就是讓它變得凹凸不平的原因，仍然有些凹凸不平，但比過去少了。

Excellent. So you mentioned E3. I guess most of the people on the call already know that E3 consulted to essentially every zero carbon mandate program in the country, right, all these states that are adopting mandates, giving them logical paths of how they can get there and what they can support with policy. Now I think the states have a bigger problem with some of this load growth and some of this economic growth we're seeing in different areas.

出色的。所以你提到了E3。我想大多數參加電話會議的人都已經知道，E3 諮詢了該國幾乎所有零碳強制計劃，對吧，所有這些正在通過強制措施的州，為他們提供瞭如何實現目標以及可以支持什麼的邏輯路徑與政策。現在我認為各州在不同地區看到的一些負載成長和一些經濟成長面臨更大的問題。

Do you think that the track record that E3 has developed, looking at some of these advanced technologies (inaudible) to handle some of the structural problems in the grid, do you think that E3 has a potential uptick in consulting activity and project proposals for really what we're going to see is reserve margins eroding quickly?

您是否認為 E3 已經開發了一些先進技術（聽不清楚）來處理電網中的一些結構性問題，您認為 E3 在諮詢活動和專案提案方面是否有潛在的成長潛力？下降？

You're right, Craig. I don't know that they've consulted to every state, but they certainly are well known in this area. Maybe the most well known in the United States for doing these types of big energy and carbon studies at the state level and for major cities and major pieces of the power grid. Virginia, the project I mentioned is another example of that. We just picked up another one. So we're well known for that.

你是對的，克雷格。我不知道他們是否諮詢過每個州，但他們在這一領域肯定是眾所周知的。也許在美國最著名的是在州一級以及主要城市和電網的主要部分進行此類大型能源和碳研究。維吉尼亞州，我提到的項目是另一個例子。我們剛剛又拿了一個。所以我們因此而聞名。

That area of business is doing exceptionally well. So I think, yes, there is some upside, especially as you look out over the next three years, states and utilities are going to have to grapple with the big changes in load that were not expected. Most of their enterprise-wide planning that has been done over the last five years is being rethought now and rethought quickly. So this is a rapid change. I think there is more upside to that, and it should be good the next several years, actually.

該領域的業務表現非常出色。所以我認為，是的，有一些好處，特別是當你展望未來三年時，各州和公用事業公司將不得不應對意想不到的負荷巨大變化。他們在過去五年中完成的大部分企業範圍規劃現在正在重新考慮，並且正在迅速重新考慮。所以這是一個快速的變化。我認為這還有更多的好處，實際上未來幾年應該會很好。

Thank you. So my last question before I jump back in the queue. Meta, this emission study for voluntary clean energy procurement, can you help us understand sort of the specifics of the project and the timeline for revenue and whether or not you see similar opportunities for other leaders in clean energy adoption?

謝謝。這是我回到隊列之前的最後一個問題。Meta，這項針對自願清潔能源採購的排放研究，您能否幫助我們了解該項目的具體情況和收入時間表，以及您是否看到其他領導者在清潔能源採用方面有類似的機會？

Yeah, this is just one example project for work we're doing for big tech, largely in the Silicon Valley and up and down the West Coast. We've got several projects like this. You know, it's a study project right now, and this particular project is not that large. Some of them are large. Work we do for Cisco and Microsoft and other big tech companies is becoming more important to us. And so this is a study that's about six months long. Good project.

是的，這只是我們為大型科技公司所做的一個範例項目，主要在矽谷和西海岸各地。我們有幾個這樣的項目。你知道，現在這是一個研究項目，而且這個項目並沒有那麼大。其中一些很大。我們為思科、微軟和其他大型科技公司所做的工作對我們來說變得越來越重要。這是一項為期大約六個月的研究。好項目。

Excellent. Well, congratulations. Strong progress across the board. I'll hop back in the queue.

出色的。好吧，恭喜你。全面取得強勁進展。我會跳回到隊列中。

(Operator Instructions)

（操作員說明）

Richard Eisenberg, Private Investor.

理查艾森伯格，私人投資者。

Yeah. Good afternoon and congratulations on a great quarter. Is there opportunity to do business with the big data center companies like Microsoft and Amazon in the future since you're doing business now with Facebook? Thank you.

是的。下午好，恭喜這個季度的出色表現。既然你們現在和Facebook有業務往來，未來有機會和微軟、亞馬遜這樣的大數據中心公司做生意嗎？謝謝。

Yes, there is. And we are doing businesses with those types of customers. We actually have been for a number of years, so this is not new for us. We started out with AT&T. They were early entrants and owner of data centers around the country. And we do quite a bit of work for AT&T today.

是的，有。我們正在與這些類型的客戶開展業務。實際上我們已經這樣做很多年了，所以這對我們來說並不新鮮。我們從 AT&T 開始。他們是全國各地資料中心的早期進入者和所有者。今天我們為 AT&T 做了很多工作。

We've expanded that list to include most of the major data center, both owners and developers. We work for both sides there. So there's definitely that opportunity. Some of that work is confidential, so I'm not going to walk down the list of customers. But we work for most of them. It's a rapidly expanding market for us.

我們已經擴展了該列表，以包括大多數主要資料中心，包括所有者和開發人員。我們為雙方工作。所以肯定有這樣的機會。其中一些工作是保密的，所以我不會逐一列出客戶名單。但我們為他們中的大多數人工作。對我們來說，這是一個快速擴張的市場。

Okay. Also, are there going to be any possible acquisitions this year or more likely in 2025?

好的。此外，今年或 2025 年是否有可能進行收購？

Great question. And we would like for them to be this year. There's never any guarantees, you can't predict the timing of those but we've been working on this all year long. We started last year and we have some mature opportunities that we're working on right now that we're really excited about. Very cool, interesting capabilities that we hope to be adding soon. I hope that this year, we'll see.

很好的問題。我們希望他們今年能成為這樣的人。從來沒有任何保證，你無法預測這些的時間，但我們一整年都在努力。我們從去年開始，現在正在開發一些成熟的機會，我們對此感到非常興奮。非常酷、有趣的功能，我們希望盡快添加。我希望今年，我們會看到。

Okay. Thank you. Congratulations again.

好的。謝謝。再次恭喜。

Thank you. There are no further questions at this time. I would like to hand the floor back over to Mike Bieber for any closing comments.

謝謝。目前沒有其他問題。我想把發言權交還給麥克比伯，請他發表結束語。

Thanks, Paul. To our customers, employees and investors, thank you for your support and we will talk to you again after Q3. Thank you.

謝謝，保羅。對於我們的客戶、員工和投資者，感謝您的支持，我們將在第三季後再次與您交談。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。