Zoominfo Technologies Inc (ZI) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the ZoomInfo third quarter 2024 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 ZoomInfo 2024 年第三季財務業績電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Jerry Sisitsky, Vice President, Investor Relations. Please go ahead.

現在我想將會議交給今天的第一位發言者、投資者關係副總裁 Jerry Sisitsky。請繼續。

Thanks, Victor. Welcome to ZoomInfo's financial results conference call for the third quarter of 2024. With me on the call today are Henry Schuck, Founder and CEO of ZoomInfo; and Graham O'Brien, our Interim CFO. During this call, any forward-looking statements are made pursuant to the safe harbor provisions of U.S. securities laws. Expressions of future goals, including business outlook, expectations for future financial performance and similar items, including without limitation, expressions using the terminology may, will, expect, anticipate and believe and expressions which reflect something other than historical facts are intended to identify forward-looking statements.

謝謝，維克多。歡迎參加 ZoomInfo 2024 年第三季財務業績電話會議。和我們的臨時財務長 Graham O'Brien。在本次電話會議中，任何前瞻性陳述均根據美國證券法的安全港條款做出。未來目標的表述，包括業務前景、對未來財務業績的預期和類似項目，包括但不限於使用「可能」、「將」、「預期」、「預期」和「相信」等術語的表述，以及反映歷史事實以外的內容的表述，旨在識別未來-尋找陳述。

Forward-looking statements involve a number of risks and uncertainties, including those discussed in the Risk Factors section of our SEC filings. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call, except as required by law.

前瞻性陳述涉及許多風險和不確定性，包括我們向 SEC 文件的風險因素部分討論的風險和不確定性。實際結果可能與任何前瞻性陳述有重大差異。除非法律要求，否則本公司不承擔修改或更新任何前瞻性陳述以反映本次電話會議後可能發生的事件的義務。

For more information, please refer to the forward-looking statements in the slides posted to our Investor Relations website at ir.zoominfo.com. All metrics on this call are non-GAAP, unless otherwise noted. A reconciliation can be found in the financial results press release or in the slides posted to our IR website. With that, let me turn the call over to Henry.

欲了解更多信息，請參閱我們投資者關係網站 ir.zoominfo.com 上發布的幻燈片中的前瞻性陳述。除非另有說明，本次電話會議的所有指標均為非公認會計準則。您可以在財務表現新聞稿或發佈到我們 IR 網站的幻燈片中找到調節表。接下來，讓我把電話轉給亨利。

Thank you, Jerry, and welcome, everyone. We continue to see stabilization and improvement in our net retention rates and believe that we're moving forward with a clean slate while delivering improved financial results. Q2 was about implementing new initiatives to position the company for long-term success, and Q3 was about executing on these initiatives and moving the business forward.

謝謝傑瑞，歡迎大家。我們繼續看到淨保留率的穩定和改善，並相信我們正在以乾淨的狀態向前邁進，同時實現更好的財務表現。第二季度是關於實施新舉措，以使公司取得長期成功，第三季是關於執行這些舉措並推動業務向前發展。

In Q2, we successfully deployed a new business risk model, which has successfully reduced the volatility around future write-offs. In the third quarter, we applied this model more broadly and transacted more than 55% of our new business opportunities through upfront prepayments, up from 33% in Q2. In doing so, we also disqualified more risky small businesses than ever before. While this is absolutely the right thing to do for the long-term health and durability of our business, it will remain a headwind to the optics of our growth in the coming quarters.

在第二季度，我們成功部署了新的商業風險模型，成功降低了未來沖銷的波動性。第三季度，我們更廣泛地應用了這種模式，透過預付款處理了超過 55% 的新業務機會，高於第二季度的 33%。在此過程中，我們也取消了比以往更多風險小企業的資格。雖然這對我們業務的長期健康和持久發展絕對是正確的事情，但它仍將是我們未來幾季成長的阻力。

In the quarter, ZoomInfo Copilot performed better than expected. Our NRR stabilized at 85% for the third consecutive quarter, and we accelerated our shift upmarket by delivering strong enterprise growth and growing both our $100,000 and $1 million-plus customer cohorts sequentially. As a result, GAAP revenue for the third quarter was $304 million, and adjusted operating income was $112 million, a margin of 37%, both above the high end of our previously provided guidance.

本季度，ZoomInfo Copilot 的表現優於預期。我們的 NRR 連續第三個季度穩定在 85%，我們透過實現強勁的企業成長以及連續成長 10 萬美元和 100 萬美元以上的客戶群體，加速了向高端市場的轉型。因此，第三季 GAAP 收入為 3.04 億美元，調整後營業收入為 1.12 億美元，利潤率為 37%，均高於我們先前提供的指導的上限。

We remain committed to efficiency with a focus on growing levered free cash flow per share. To that end, unlevered free cash flow for the quarter was $111 million, up 17% year-over-year. In Q3, we also retired 24 million shares, approximately 7% of our total shares outstanding. Since March of last year, when we announced our first share repurchase authorization, we have retired 68 million shares or approximately 17% of total shares outstanding. We believe in the long-term opportunity to drive shareholder value through compounding growth and levered free cash flow per share.

我們仍然致力於提高效率，重點是增加每股槓桿自由現金流。為此，本季無槓桿自由現金流為 1.11 億美元，較去年同期成長 17%。第三季度，我們也註銷了 2,400 萬股股票，約佔已發行股票總數的 7%。自去年 3 月我們宣布首次股份回購授權以來，我們已經回購了 6,800 萬股，約佔已發行股份總數的 17%。我們相信透過複合成長和槓桿每股自由現金流來推動股東價值的長期機會。

When you combine our strong cash generation with the ongoing share count reduction, we expect the company will do at least $1 of levered free cash flow per share this year, and we plan to grow that number meaningfully in 2025 and expect to continue to grow it over the long term. In a seasonally slower quarter for our upmarket business, we were able to deliver another strong enterprise quarter. Our [$100,000] customer cohort grew by [12], the second consecutive quarter of sequential growth, ending the quarter with 1,809, greater than $100,000 customers.

當您將我們強勁的現金產生能力與持續的股份數量減少結合起來時，我們預計該公司今年每股槓桿自由現金流將至少為1 美元，我們計劃在2025 年大幅增加這一數字，並預計將繼續增加從長遠來看。在我們的高端業務季節性放緩的季度中，我們能夠實現另一個強勁的企業季度。我們的 [100,000 美元] 客戶群增長了 [12]，這是連續第二個季度環比增長，本季度結束時客戶數量超過 1,809 名，超過 100,000 美元。

Revenue from this cohort now makes up 44% of our ACV. We had one of our best year-over-year increases in million dollar plus customers and drove accelerating sequential ACV growth from that cohort. An enterprise ACV, which now represents approximately 41% of the business, grew 1% sequentially. More customers are turning to ZoomInfo because we're driving demonstrable results with strong ROI that helps customers increase their revenue and reduce their costs.

該群體的收入現在占我們 ACV 的 44%。我們的客戶數量達到了百萬美元以上，這是我們最好的同比增長之一，並推動了該群體的 ACV 連續加速增長。企業 ACV 目前約佔該業務的 41%，較上季成長了 1%。越來越多的客戶轉向 ZoomInfo，因為我們正在以強勁的投資回報率推動可證明的成果，幫助客戶增加收入並降低成本。

During the quarter, we closed transactions with leading organizations of all sizes, such as Commerce Bank, Samsung, BambooHR, Sonesta Hotels, Bentley, Clari and Premise Health. At Amplitude, we consolidated a number of existing data vendors, deployed ZoomInfo Copilot across 150 sales reps, added operations for their rev ops team and continue to support their marketing and audience building and execution efforts with ZoomInfo marketing.

本季度，我們與各種規模的領先組織完成了交易，例如商業銀行、三星、BambooHR、Sonesta Hotels、Bentley、Clari 和 Premise Health。在 Amplitude，我們整合了許多現有的數據供應商，在 150 名銷售代表中部署了 ZoomInfo Copilot，為他們的研發團隊增加了運營，並繼續透過 ZoomInfo 行銷支援他們的行銷、受眾建立和執行工作。

Recently, the economist entered our $100,000 customer cohort through an investment in Copilot licenses as part of a multiyear agreement designed to drive efficiency in their sales and marketing operations. Facing challenges with data accuracy, CRM decay and Process Automation, they chose our AI-driven solutions to consolidate intelligence providers and streamline workflows. This strategic decision aims to double their sales opportunities, bolster ABM strategies and gain efficient access to global business intelligence. And a Fortune 50 customer successfully replaced a legacy firmographic provider with our operations and data-as-a-service products and grew into our $1 million customer cohort.

最近，這位經濟學家透過投資 Copilot 許可證進入了我們價值 10 萬美元的客戶群體，這是旨在提高銷售和行銷營運效率的多年協議的一部分。面對數據準確性、CRM 衰退和流程自動化方面的挑戰，他們選擇了我們的人工智慧驅動的解決方案來整合情報提供者並簡化工作流程。這項策略決策旨在將銷售機會加倍、支持 ABM 策略並有效獲取全球商業情報。財富 50 強客戶成功地用我們的營運和數據即服務產品取代了傳統的公司統計提供商，並成長為我們價值 100 萬美元的客戶群。

They will leverage ZoomInfo to better understand and expand their total addressable market in their SMB and mid-market segments to identify high propensity to buy accounts and to build dynamic audiences for digital activation. They will also rely on ZoomInfo to help create a new, more efficient outbound sales motion. In Q3, ZoomInfo Copilot showed strong performance, delivering results that exceeded our expectations, especially in our mid-market and enterprise segments. The driving force behind Copilot's adoption is the measurable return on investment it offers.

他們將利用 ZoomInfo 來更好地了解和擴大中小型企業和中端市場的整體目標市場，以確定購買帳戶的高傾向並建立數位啟動的動態受眾。他們還將依靠 ZoomInfo 幫助創建新的、更有效率的對外銷售活動。在第三季度，ZoomInfo Copilot 表現強勁，交付的結果超出了我們的預期，特別是在我們的中端市場和企業細分市場。 Copilot 被採用的動力是它提供的可衡量的投資回報。

Our customers report 25% of their total pipeline directly attributed to opportunities identified by Copilot, a 58% increase in prospect engagement rates, a 62% improvement in e-mail response rates and productivity gains of 8 hours per week, per user. The foundation for Copilot success is a combination of relevant customer context with best-in-class activation for go-to-market teams. Customer context comes from the strength of our data asset unified with the customer's business context from systems like CRM or data warehouses.

我們的客戶報告稱，其總管道的25% 直接歸因於Copilot 發現的機會，潛在客戶參與率提高了58%，電子郵件回應率提高了62%，每位用戶每週工作效率提高了8 小時。 Copilot 成功的基礎是將相關的客戶環境與行銷團隊的一流活化相結合。客戶情境來自於我們的資料資產的強度，與來自 CRM 或資料倉儲等系統的客戶業務情境結合。

We're known for our leading contact and company data, which provide actionable insights against hundreds of millions of contacts and companies. Now our new sets of products expand into processing billions of data points daily to prioritize and personalize engagement at scale. During the quarter, our product innovation focused on increasing Copilot opportunities and strengthening product market fit.

我們以領先的聯絡人和公司數據而聞名，這些數據為數億聯絡人和公司提供了可操作的見解。現在，我們的新產品集擴展到每天處理數十億個數據點，以優先考慮和個性化大規模參與。本季度，我們的產品創新重點是增加副駕駛機會和加強產品市場契合度。

First, we expanded our signal ecosystem to capture additional mission-critical go-to-market insights that neither exist nor are actionable in legacy CRM. We now process over 300 million daily signals to help every member of the go-to-market team win faster. For enterprise sellers, we added buying group and executive tracking signals, including hiring trends, expanded person moves or updates to previously engaged contacts.

首先，我們擴展了訊號生態系統，以捕捉傳統 CRM 中既不存在也不可行的額外關鍵任務入市洞察。現在，我們每天處理超過 3 億個訊號，以幫助上市團隊的每位成員更快獲勝。對於企業賣家，我們新增了採購團隊和高階主管追蹤訊號，包括招募趨勢、擴大的人員流動或對先前參與的聯絡人的更新。

For transactional and SMB sellers, we added SMB signals like business origination or lean data. For value selling, we added key unstructured data assets like earnings transcripts, financial filings, analyst research or podcast transcripts that deliver relevant context, pain points and growth expectations. And for competitive intelligence, we added competitive intent signals, social proof and insight into customer satisfaction to increase retention, including integrations with competitive intelligence platform like G2, TrustRadius and TechnologyAdvice.

對於交易型和中小企業賣家，我們添加了業務起源或精益數據等中小企業訊號。為了價值銷售，我們增加了關鍵的非結構化資料資產，例如收益記錄、財務報告、分析師研究或播客記錄，以提供相關背景、痛點和成長預期。對於競爭情報，我們添加了競爭意圖信號、社會證明和對客戶滿意度的洞察，以提高保留率，包括與 G2、TrustRadius 和 TechnologyAdvice 等競爭情報平台的整合。

Copilot in the signal ecosystem can now be activated by a larger share of our customer base, thanks to new integrations with Microsoft Teams for enterprise, HubSpot for downmarket customers, and Outreach, SalesLoft and Groove for technology companies, in addition to existing integrations with Salesforce, Gong and Slack.

除了與Salesforce 的現有整合之外，由於與面向企業的Microsoft Teams、面向低端市場客戶的HubSpot 以及面向技術公司的Outreach、SalesLoft 和Groove 的新集成，信號生態系統中的Copilot 現在可以由我們更大份額的客戶群啟動、Gong 和 Slack。

Going forward, we will expand Copilot's use beyond prospecting to support key use cases for account executives and account management teams. Early results show Copilot is reactivating dormant seats and driving demand for expansion, particularly in the mid-market and enterprise segments. Examples include account executives using AI-powered account planning, customer success teams managing renewal risk through signal monitoring and marketing teams driving sales execution through Copilot.

展望未來，我們將把 Copilot 的用途擴展到勘探之外，以支援客戶主管和客戶管理團隊的關鍵用例。早期結果顯示，Copilot 正在重新啟動休眠席位並推動擴張需求，特別是在中端市場和企業領域。例如，客戶主管使用人工智慧驅動的客戶規劃，客戶成功團隊透過訊號監控管理續約風險，行銷團隊透過 Copilot 推動銷售執行。

This comes on the heels of recently being named a leader in this -- recently being named a leader this year in the 2024 Gartner Magic Quadrant for Account-Based Marketing Platforms. We believe this is a serious nod to the speed of innovation coming from our product and engineering teams and the market demand coming from the marketing departments of our customers.

此前，該公司最近被評為該領域的領導者——最近在 2024 年 Gartner 基於帳戶的營銷平台魔力像限中被評為今年的領導者。我們相信，這是對我們產品和工程團隊的創新速度以及客戶行銷部門的市場需求的認真認可。

The demand for Copilot shows that successful automation and AI and go-to-market strategies require high-quality, reliable data. Our customers have realized that running large language models on their CRM data falls short. ZoomInfo Copilot goes beyond the CRM to create a complete picture of the addressable market, every account, every buyer, what they care about and how to engage them most effectively.

對 Copilot 的需求表明，成功的自動化和人工智慧以及上市策略需要高品質、可靠的數據。我們的客戶已經意識到，在 CRM 資料上運行大型語言模型是不夠的。 ZoomInfo Copilot 超越了 CRM，創建了目標市場、每個帳戶、每個買家、他們關心什麼以及如何最有效地吸引他們的完整畫面。

What sets ZoomInfo apart is our ability to unify contextual data across the entire customer journey with a multichannel activation layer across sales and marketing. This combination of context and activation, drive successful AI and go-to-market, and we're best positioned to capitalize on this platform shift.

ZoomInfo 的與眾不同之處在於我們能夠透過銷售和行銷的多通路啟動層來統一整個客戶旅程中的上下文資料。這種背景和活化的結合，推動了人工智慧的成功和進入市場，我們最有能力利用這個平台轉變。

Before turning it over to Graham, I want to acknowledge and thank the team. Across the organization, we are doing great things, from the work in finance and accounting to the innovation we're driving in product, to the sales team and beyond. We are focused, we are aligned, and we are operating with a sense of urgency.

在將其交給格雷厄姆之前，我想感謝這個團隊。在整個組織中，我們正在做偉大的事情，從財務和會計工作到我們推動的產品創新，再到銷售團隊等等。我們專注、一致，並且帶著緊迫感開展工作。

In Q2, we took the necessary steps to ensure that we were very well set up for the future, and I am pleased that our positive operating momentum translated into strong financial performance this quarter. We continue to focus on enterprise growth, driving customer outcomes with Copilot, and we're committed to driving long-term value creation through consistently growing levered free cash flow per share.

在第二季度，我們採取了必要的措施，確保我們為未來做好了充分的準備，我很高興我們積極的營運勢頭轉化為本季度強勁的財務業績。我們繼續專注於企業發展，透過 Copilot 推動客戶成果，並致力於透過持續成長的每股槓桿自由現金流來推動長期價值創造。

While we are not guiding to 2025 today, I would call out that you should expect a very conservative approach to our guidance communications going forward in general, but particularly as we navigate this SMB transition. With that, I'll turn the call over to Graham.

雖然我們今天的指導不是 2025 年，但我要指出的是，總體而言，您應該期待我們的指導溝通採取非常保守的方法，特別是在我們進行中小企業轉型時。這樣，我就把電話轉給葛拉漢。

Thanks, Henry. In Q3, we delivered $304 million in revenue and adjusted operating income of $112 million, both better than the top end of the guidance we provided. When adjusting for the charge we took in Q2 and its impact on the second quarter as well as the additional day in Q3, sequential revenue growth for Q3 was negative 2%.

謝謝，亨利。第三季度，我們實現了 3.04 億美元的收入，調整後的營業收入為 1.12 億美元，均優於我們提供的指導上限。當調整我們在第二季收取的費用及其對第二季以及第三季額外一天的影響時，第三季的環比收入成長為負 2%。

As expected, write-offs continued at elevated levels in Q3, but showed signs of abating as we exited the quarter. The operational improvements we implemented are delivering results as our business risk model disqualified a record number of high-risk small business transactions in the quarter. As we exit Q3, that refined SMB sales motion is disqualifying more than $2 million of higher risk new sales per month, which we anticipate will improve the quality of revenue and reduce write-offs over time, a near-term trade-off that benefits us over the long-term.

正如預期的那樣，第三季沖銷繼續保持在較高水平，但隨著本季結束，沖銷顯示出減弱的跡象。我們實施的營運改善正在取得成果，因為我們的業務風險模型取消了本季創紀錄數量的高風險小型企業交易。當我們退出第三季時，經過改進的中小企業銷售動議將取消每月超過200 萬美元的高風險新銷售資格，我們預計這將提高收入品質並隨著時間的推移減少沖銷，這是一項有利於的近期權衡我們從長遠來看。

We believe the challenges that led to the accounting charge in Q2 are behind us, and we are seeing stabilization and early signs of growth in a number of different areas of the business. As Henry indicated, net revenue retention was stable at 85% for the third consecutive quarter. We are growing the enterprise business. We added to our $100,000 customer cohort. We added to our $1 million customer cohort. We drove an acceleration in ACV growth for $1 million-plus customers, and we are seeing strong early traction with Copilot.

我們相信導致第二季會計費用的挑戰已經過去，我們在許多不同的業務領域看到了穩定和成長的早期跡象。正如 Henry 所言，淨收入保留率連續第三個季度穩定在 85%。我們正在發展企業業務。我們增加了 10 萬美元的客戶群。我們又增加了價值 100 萬美元的客戶群。我們為價值超過 100 萬美元的客戶推動了 ACV 的加速成長，並且我們看到了 Copilot 的強大早期吸引力。

In short, we are controlling what we can control, and we are executing very well against our key priorities. Enterprise ACV, which now represents approximately 41% of the business, sequentially grew 1% in the quarter. With continued stabilization in mid-market and enterprise strength, approximately two-third of our business is on a path back to growing mid-single digits or better.

簡而言之，我們正在控制我們能控制的事情，並且我們在關鍵優先事項上執行得很好。 Enterprise ACV 目前約佔該業務的 41%，本季較上季成長 1%。隨著中階市場和企業實力的持續穩定，我們大約三分之二的業務正在恢復到中個位數或更高的成長速度。

As we grow in the enterprise, turnaround mid-market and more aggressively disqualify smaller and riskier businesses from the platform, we expect SMB to become a smaller and smaller percentage of our overall business. As that happens, we have a more favorable mix of revenue and the business is set up for a more durable and higher levels of growth.

隨著我們在企業領域的發展、中端市場的扭轉以及更積極地取消平台上規模較小、風險較高的企業的資格，我們預計中小企業在我們整體業務中所佔的比例將越來越小。當這種情況發生時，我們將擁有更有利的收入組合，並且業務將實現更持久和更高水準的成長。

Our operations business increased 22% year-over-year as we saw continued momentum, helping companies with their data foundation as they look to leverage AI. Taken together with our success driving Copilot, advanced functionality increased to 38% of the overall business in Q3, up from 35% in Q2. Copilot surpassed $60 million of ACV in the quarter, exceeding our expectations.

我們的營運業務年增了 22%，我們看到了持續的成長勢頭，為希望利用人工智慧的公司提供了數據基礎。加上我們成功推動 Copilot，高階功能在第三季佔整體業務的比例從第二季的 35% 增加到了 38%。 Copilot 本季的 ACV 超過 6,000 萬美元，超出了我們的預期。

In addition to the rapid innovation on the platform, we continue to successfully drive new-to-the-platform sales, off-cycle upsells and Copilot migrations on renewal. We continue to see meaningful uplift on accounts as we transition them into a Copilot experience, with the majority of these migrations coming in mid-market and enterprise accounts. Utilization is up, and customer satisfaction is trending higher, which we believe is a leading indicator of improving renewal trends and higher net revenue retention.

除了平台上的快速創新之外，我們還繼續成功推動新平台銷售、週期外追加銷售和續訂時的 Copilot 遷移。當我們將客戶轉變為 Copilot 體驗時，我們繼續看到客戶的顯著提升，其中大部分遷移來自中端市場和企業客戶。利用率上升，客戶滿意度呈上升趨勢，我們認為這是改善續約趨勢和更高淨收入保留的領先指標。

In Q3, we took advantage of the dislocation in share price and retired more than twice as many shares in the quarter than ever before, repurchasing 24 million shares of ZoomInfo stock for $242 million, in part through an accelerated share repurchase program. These repurchases reduced total shares outstanding by approximately 7%. As of the end of Q3, we had 343 million shares outstanding with $157 million in remaining repurchase authorizations.

在第三季度，我們利用股價錯位的機會，在該季度回購了比以往多兩倍多的股票，以2.42 億美元的價格回購了2,400 萬股ZoomInfo 股票，部分是透過加速股票回購計劃。這些回購使流通股總數減少了約 7%。截至第三季末，我們有 3.43 億股流通股，剩餘回購授權為 1.57 億美元。

We will continue to be enthusiastic and opportunistic buyers of the stock, based on the wide gap we see between the intrinsic value of ZoomInfo and our current market value and because it is one of the best and highest returns on our capital. Operating cash flow was $18 million in Q3. And as we indicated on our last financial results conference call, we restructured our Waltham lease agreement early in Q3 and paid a $59 million termination fee as we continue to rightsize our real estate footprint.

基於我們看到 ZoomInfo 的內在價值與我們當前市場價值之間的巨大差距，並且因為它是我們資本回報率最好和最高的股票之一，我們將繼續成為該股票的熱情和機會主義買家。第三季營運現金流為 1,800 萬美元。正如我們在上次財務業績電話會議上指出的那樣，我們在第三季初重組了沃爾瑟姆租賃協議，並支付了 5,900 萬美元的終止費，同時我們繼續調整我們的房地產足跡。

We estimate that this will save us more than $100 million going forward. Additionally, in Q3, we funded a $30 million settlement related to right of publicity lawsuits, providing avoidance of future litigation costs and liabilities. Unlevered free cash flow for the quarter was $111 million, a margin of 36%. And relative to levered free cash flow, we incurred cash interest of $19 million in the quarter. We ended the quarter with $148 million in cash and cash equivalents, and we carried $1.24 billion in gross debt.

我們估計這將為我們節省超過 1 億美元的費用。此外，在第三季度，我們資助了與公開權訴訟相關的 3,000 萬美元和解，避免了未來的訴訟成本和責任。本季無槓桿自由現金流為 1.11 億美元，利潤率為 36%。相對於槓桿自由現金流，我們本季產生了 1,900 萬美元的現金利息。本季末，我們的現金和現金等價物為 1.48 億美元，總債務為 12.4 億美元。

The $650 million in 3.875% senior notes have a maturity date of February 2029 and the remaining balance of $590 million in first lien term loans has a maturity date of February 2030. Our net leverage ratio is 2.3 times trailing 12 months adjusted EBITDA, and 2.2 times trailing 12 months cash EBITDA, which is defined as consolidated EBITDA in our credit agreements.

6.5 億美元的3.875% 優先票據的到期日為2029 年2 月，剩餘的5.9 億美元的第一留置權定期貸款的到期日為2030 年2 月。調整後EBITDA 的2.3 倍，以及2.2 倍。

With respect to liabilities and future performance obligations, unearned revenue at the end of Q3 was $419 million and remaining performance obligations, or RPO, were $1.05 billion, of which $780 million are expected to be delivered in the next 12 months. While sequential growth remains the best metric to evaluate the business, we know some of you look to other metrics. For those looking at billings, the mix of our balance sheet reserves and the changes in practices that we made relative to higher risk businesses requiring prepayment in advance, drove higher than normalized growth in billings this quarter, and I would caution you from extrapolating too much from the billings growth trajectory.

在負債和未來履約義務方面，第三季末的未實現收入為 4.19 億美元，剩餘履約義務（RPO）為 10.5 億美元，其中 7.8 億美元預計將在未來 12 個月內交付。雖然連續成長仍然是評估業務的最佳指標，但我們知道有些人會關注其他指標。對於那些關注帳單的人來說，我們的資產負債表準備金以及我們相對於需要提前預付款的高風險業務所做的做法變化，推動了本季度賬單的增長高於正常水平，我會提醒您不要過度推斷從比林斯的成長軌跡來看。

With that, let me turn to guidance for Q4. We expect GAAP revenue in the range of $296 million to $299 million, adjusted operating income in the range of $103 million to $105 million and non-GAAP net income in the range of $0.22 to $0.23 per share. As a result, we expect for the full year 2024, GAAP revenue in the range of $1.201 billion to $1.204 billion and adjusted operating income in the range of $416 million to $418 million. We expect non-GAAP net income in the range of $0.92 to $0.93 per share based on 378 million weighted average diluted shares outstanding.

接下來，讓我談談第四季的指導。我們預計 GAAP 收入為 2.96 億美元至 2.99 億美元，調整後營業收入為 1.03 億美元至 1.05 億美元，非 GAAP 淨利潤為每股 0.22 美元至 0.23 美元。因此，我們預計 2024 年全年 GAAP 收入將在 12.01 億美元至 12.04 億美元之間，調整後營業收入將在 4.16 億美元至 4.18 億美元之間。基於 3.78 億股加權平均稀釋後流通股，我們預計非 GAAP 淨利潤將在每股 0.92 美元至 0.93 美元之間。

We expect unlevered free cash flow in the range of $420 million to $430 million, which consistent with historical reporting, excludes the impact of the restructuring and settlement payments in the quarter. Our full year guidance implies negative 3% revenue growth and a 35% adjusted operating margin at the midpoint of our guidance range.

我們預計無槓桿自由現金流在 4.2 億至 4.3 億美元之間，這與歷史報告一致，不包括本季重組和和解付款的影響。我們的全年指引意味著營收負成長 3%，調整後的營業利潤率處於指導範圍的中點 35%。

Now I will turn it over to the operator to open the call for questions.

現在我將把它轉交給接線員以開始提問。

(Operator Instructions)

（操作員說明）

Alex Zukin, Wolfe Research.

亞歷克斯祖金，沃爾夫研究中心。

Hey guys, thanks for taking the time. Maybe just the first one. Henry, can you comment on just the demand environment, what you're seeing kind of exiting the quarter into Q4, how it's changed? I noticed a couple of new customers were kind of in (technical difficulty) I would say, sectors very adjacent to your core, so that was kind of interesting. And then maybe as a follow-up on retention, you talked about gross retention getting better. Is that gross? Is that expansion? Is it both? And kind of how you see those trending over the course of the next three quarters?

嘿夥計們，感謝您抽出時間。也許只是第一個。亨利，您能否評論一下需求環境，您在本季進入第四季時所看到的情況，以及它是如何變化的？我注意到一些新客戶處於（技術難度）我想說的領域，與您的核心非常相鄰，所以這很有趣。然後，也許作為保留率的後續行動，您談到毛保留率正在變得更好。那很噁心嗎？這就是擴張嗎？兩者都是嗎？您如何看待未來三個季度的趨勢？

Yeah. Thanks, Alex. I think on demand environment, it's relatively unchanged from Q2. We're seeing really strong demand in the upmarket, particularly in the mid-market and the enterprise segment. In mid-market, we're seeing strong demand for Copilot. in our enterprise and strategic segments. We're seeing Copilot in the enterprise and a lot of DaaS and OperationsOS in the strategic segment of our business. The SMB segment, particularly the lowest end of the SMB continues to be challenged, particularly from a net retention perspective. And so that commentary is unchanged from Q2.

是的。謝謝，亞歷克斯。我認為點播環境與第二季相比相對沒有變化。我們看到高端市場的需求非常強勁，特別是中階市場和企業領域。在中端市場，我們看到對 Copilot 的強勁需求。在我們的企業和策略部門。我們在企業中看到了 Copilot，在我們業務的策略部分看到了許多 DaaS 和 OperationsOS。中小型企業細分市場，特別是中小型企業的最低端，繼續面臨挑戰，特別是從淨保留角度來看。因此，這一評論與第二季度相比沒有變化。

Yeah, and I'll just add on top of that. Net revenue retention was 85% for the third quarter in a row, so reflecting stabilization there. We are seeing less downsell pressure, specifically in mid-market, where we experienced a lot of that over the past two years. But we're also -- we have much more expansion and upsell opportunity from Copilot and then operations up in the enterprise.

是的，我會補充一點。淨收入保留率連續第三季達到 85%，反映了該地區的穩定。我們看到降價壓力有所減輕，特別是在中端市場，我們在過去兩年中經歷了許多這種情況。但我們也 - 我們從 Copilot 以及企業營運中獲得了更多的擴張和追加銷售機會。

DJ Hynes, Canaccord Genuity.

DJ 海因斯，Canaccord Genuity。

Hey, thanks. So Henry, you have this $1 per share in levered free cash flow target out there for '24. You also said that you expect to meaningfully grow that in '25. How much of that free cash flow per share growth in '25 is predicated on a recovery in revenue growth? I mean can you get there without a bounce back in the top line?

嘿，謝謝。亨利，24 年槓桿自由現金流目標為每股 1 美元。您也表示，您希望在 25 年實現有意義的成長。 25 年每股自由現金流的成長有多少是基於收入成長的復甦？我的意思是，你能在營收沒有反彈的情況下到達那裡嗎？

Yeah. This is Graham. The way I think about this is there's a few levers to drive that meaningful growth in levered free cash flow per share. And the lever that we're going to prioritize is growing the top line. We're resourced for that. If we aren't achieving that, then it becomes a margin expansion lever and then continuing to retire shares, which we'll continue to consider.

是的。這是格雷厄姆。我的想法是，有一些槓桿可以推動每股槓桿自由現金流的有意義成長。我們要優先考慮的槓桿是增加收入。我們有足夠的資源來做到這一點。如果我們沒有實現這一目標，那麼它就會成為利潤擴張槓桿，然後繼續退休股票，我們將繼續考慮這一點。

Okay. And then, Graham, while I have you. So sequential growth normalized is minus 2% in Q3. You're guiding to minus 2% in Q4. Is that a good way to think about the early part of next year given the new conservative guidance posture? And do you expect to return to positive sequential growth at any point next year?

好的。然後，格雷厄姆，當我有你的時候。因此，第三季的正常環比成長為負 2%。您預計第四季的成長率為-2%。鑑於新的保守指導態度，這是考慮明年初的好方法嗎？您預計明年某個時候會恢復正連續成長嗎？

Yeah. We're going to be very conservative when we -- in our guidance period. And we again had positive momentum exiting the quarter in Q3 from an operational perspective, but we're going to be really conservative about the in-period assumptions in Q4. That's our largest expiring quarter. And with that level of activity, we're going to continue to be conservative from a guidance approach.

是的。在我們的指導期內，我們將非常保守。從營運角度來看，我們在第三季再次獲得了積極的勢頭，但我們對第四季度的同期假設將非常保守。這是我們最大的即將到期的季度。有了這樣的活動水平，我們將繼續在指導方法上保持保守。

Yeah, I think that makes sense. Thank you.

是的，我認為這是有道理的。謝謝。

Brad Zelnick, Deutsche Bank.

布拉德‧澤爾尼克，德意志銀行。

Great. Thank you so much and thanks for all the disclosure. But I'm hoping, guys, you can just help clarify the SMB dynamics. Because Graham, you say that the SMB changes are largely behind you. But Henry, you're also talking about a more conservative approach into your guidance methodology in next year. So I guess two questions. I had thought in Q2, you cleared the deck, so to speak, as it related to charge-offs for your smallest customer segment. And that hit revenue in Q3, and it was a bit of a cleanup.

偉大的。非常感謝您並感謝您的所有披露。但我希望，夥計們，你們可以幫助澄清中小企業的動態。因為格雷厄姆，你說中小企業的變化很大程度已經過去了。但是亨利，您還在談論明年的指導方法採取更保守的方法。所以我猜有兩個問題。我曾以為，在第二季度，您已經清理了一切，可以這麼說，因為這與您最小的客戶群的沖銷有關。這影響了第三季的收入，需要進行一些清理。

Are we still seeing perhaps upon renewal customers that are in that segment that are not paying as expected? And are there additional charge-offs that are hitting Q3 and expected forward? And then related to that, as we think about the impact of the stricter credit that you're applying and credit practices in that segment, is that having a more pronounced effect than you would have thought when you came out of Q2? Or is what you thought consistent as you saw it perform in Q3?

我們是否仍看到該細分市場中的續訂客戶未按預期付款​​？第三季是否還會有額外的沖銷以及預期的沖銷？與此相關的是，當我們考慮您正在應用的更嚴格信貸以及該細分市場的信貸實踐的影響時，這是否比您在第二季度結束時想像的更明顯？或者您的想法與您在第三季看到的表現一致嗎？

Thank you.

謝謝。

Yeah. Thanks. I'll start. The charge in Q2 did clear the deck there, like that is not something that persisted in Q3. There's no real P&L volatility or continued impact from the change in estimate in Q2. What is happening is as we do disqualify high-risk SMB new sales transactions at a higher rate, it does create a growth headwind until we lap that in Q2 of next year. So the way that we're thinking about this is that disqualification was up to $2 million plus per month in Q3, up from $1 million per month in Q2.

是的。謝謝。我開始吧。第二季的衝鋒確實清除了那裡的障礙，就像第三季沒有持續的情況一樣。第二季的估計變化沒有真正的損益波動或持續影響。正在發生的事情是，當我們以更高的速度取消高風險中小企業新銷售交易的資格時，它確實會造成成長阻力，直到我們在明年第二季克服這一阻力。因此，我們考慮這個問題的方式是，第三季每月取消資格的金額高達 200 萬美元以上，而第二季則是每月 100 萬美元。

And as we think about SMB, we expect SMB to decrease as a percentage of the business and actually potentially decline in ACV for a period of time until we lap the introduction of that new business risk model from last year. So our focus is on prescriptively and efficiently capturing SMB business and continue to believe that there's a high level of quality demand in the segment that we can grow with. And then the write-offs, again, we reserved against the P&L impact. We still have an elevated level of processing write-offs in Q3, but we saw that level abate as we exited Q3.

當我們考慮 SMB 時，我們預計 SMB 在業務中所佔的百分比將下降，實際上 ACV 可能會下降一段時間，直到我們從去年開始引入新的業務風險模型。因此，我們的重點是規範且有效地獲取中小企業業務，並繼續相信該細分市場存在高水準的品質需求，我們可以與之一起成長。然後，我們再次針對損益影響保留沖銷。我們在第三季度的處理沖銷水準仍然較高，但隨著我們退出第三季度，我們發現該水準有所下降。

And as we get further away from Q2 when we implemented the new business risk model, call it, six months, maybe nine months down the road, that's where we'd expect to start to see that benefit from higher quality SMB new sales and lower write-offs.

當我們距離第二季度越來越遠時，我們實施了新的業務風險模型，稱之為六個月，也許九個月後，我們預計將開始看到更高品質的中小企業新銷售和更高低的銷售額帶來的好處。

Okay. Thank you.

好的。謝謝。

Elizabeth Porter, Morgan Stanley.

伊莉莎白‧波特，摩根士丹利。

Great. Thank you so much for the question. I wanted to first in on some of the cost reductions that you guys have talked about, including some of the real estate changes that you've made. Any way we should think about some of the early guide rails on operational margin improvements as we look into 2025?

偉大的。非常感謝你的提問。我想先談談你們談到的一些成本削減，包括你們所做的一些房地產改變。在展望 2025 年時，我們是否應該考慮一些關於營運利潤率改善的早期指引？

I know we were at 37% in Q3, the guide for Q4 is 35%. There is some just timing between those two quarters rather than trajectory. But we think about this in the framework of levered free cash flow per share. And growing that next year and one of the ways to grow that, if not the way to grow that is to expand margin.

我知道第三季我們的比例為 37%，第四季的指引值為 35%。這兩個季度之間存在一些只是時間而不是軌跡。但我們在每股槓桿自由現金流的框架內考慮這一點。明年的成長，成長的方法之一（如果不是成長的方法的話）就是擴大利潤率。

Got it. And then just as a follow-up. On the Copilot side, so it's good to see that adoption there. I just want to understand just given some of the headwinds that kind of we're seeing still across the macro, is Copilot adoption driving up average deal sizes across most of those customers that are taking it? Or is it viewed right now as an opportunity to keep renewals flat despite some of just the broader headwinds?

知道了。然後作為後續行動。在副駕駛方面，很高興看到那裡的採用。我只是想了解，考慮到我們在宏觀上仍然看到的一些不利因素，Copilot 的採用是否會推高大多數採用 Copilot 的客戶的平均交易規模？或者，儘管存在一些更廣泛的阻力，但現在是否被視為保持續約平穩的機會？

Today, we are seeing double-digit growth on migration to Copilot. When we're migrating our customers, we are seeing that grow ASP when we do those migrations.

如今，我們看到 Copilot 的遷移量出現了兩位數的成長。當我們遷移客戶時，我們發現 ASP 會隨著遷移而成長。

Thank you.

謝謝。

Raimo Lenschow, Barclays.

雷莫‧倫肖 (Raimo Lenshow)，巴克萊銀行。

Hey, thanks for taking the question. This is Frank on for Raimo. Following up on that last one with another quarter in the market for Copilot, what's been the incremental feedback from customers around that? And what's the best way to think about that contributing to net retention in Q3?

嘿，謝謝你提出問題。這是萊莫的弗蘭克。繼上一季之後，Copilot 市場又進入了一個季度，客戶對此有何增量回饋？考慮對第三季淨保留率的貢獻的最佳方法是什麼？

We've seen really positive sentiment from our customers on Copilot. Our customers are telling us that 25% of their pipeline is attributed to opportunities that were flagged to them through Copilot. 58% more meetings, more engagement from the e-mails that are being generated through our AI e-mailer. And so -- and we're seeing higher engagement in the utilization rates of customers on Copilot versus our legacy solution.

我們在 Copilot 上看到了客戶的正面情緒。我們的客戶告訴我們，他們的管道中有 25% 歸因於透過 Copilot 向他們標記的機會。透過我們的 AI 電子郵件程式產生的電子郵件的會議次數增加了 58%，參與度也更高。因此，與我們的舊解決方案相比，我們發現 Copilot 上的客戶使用率更高。

And so we feel really good about the product that we're building. We continue to add a tremendous amount of functionality to the product as well. And so additional integrations, additional signals that will all drive additional engagement by our customers and take away go-to-market friction upfront. And so we continue through Q4 to see really good momentum from Copilot.

因此，我們對我們正在開發的產品感覺非常好。我們也持續為產品添加大量功能。因此，額外的整合、額外的訊號都將推動我們的客戶的更多參與，並提前消除進入市場的摩擦。因此，我們在第四季度繼續看到 Copilot 的良好勢頭。

Parker Lane, Stifel.

帕克巷，斯蒂菲爾。

Hey guys, thanks for taking the question this afternoon. Henry, you look at the NRR stabilization, you see growth in the enterprise segment, maybe less of an emphasis on SMB long term. Wondering if you could talk about any further sales changes or just the absolute number of sales resources you have as you approach year-end and start thinking about how 2025 can be best set up for the business?

嘿夥計們，感謝您今天下午提出這個問題。亨利，你看看 NRR 的穩定，你會看到企業部門的成長，也許不太重視中小企業的長期發展。想知道您是否可以談論任何進一步的銷售變化，或者只是在接近年底時您擁有的銷售資源的絕對數量，並開始思考如何為業務做好 2025 年的最佳準備？

Yeah, I think we've been on a phased journey to continue to move resources up market into our mid-market and enterprise segments. We think we have a continued opportunity in Q4 and then into 2025 to move resources from the lowest SMB segments up into our mid-market and enterprise segments and then drive a digital -- more digital self-serve in the lowest segments of our SMB business and manage that business much more efficiently with our PLG motion and free up resources to go into our upmarket segments where we're seeing meaningful growth and success and we want to capitalize on.

是的，我認為我們一直在分階段繼續將資源從高端市場轉移到我們的中端市場和企業細分市場。我們認為，我們在第四季度和2025 年有持續的機會，將資源從最低的中小型企業細分市場轉移到中端市場和企業細分市場，然後在中小型企業業務的最低細分市場中推動數位化——更數位化的自助服務並透過我們的PLG 動議更有效地管理該業務，並釋放資源進入我們的高端市場領域，我們在這些領域看到了有意義的成長和成功，並且我們希望加以利用。

Understood. Thank you.

明白了。謝謝。

Brent Bracelin, Piper Sandler.

布倫特·布萊斯林，派珀·桑德勒。

This is Hannah Rudoff on for Brent today. Just one for me. I want to ask about the data-as-a-service business. It sounds like you're seeing really solid momentum with your Copilot product. Just wondering if you're seeing equally strong momentum with the data-as-a-service product?

我是漢娜·魯道夫，今天為布倫特發言。只給我一個。我想問一下數據即服務業務。聽起來您看到了 Copilot 產品的強勁勢頭。只是想知道您是否看到數據即服務產品同樣強勁的勢頭？

Yeah, we continue to see really strong momentum in our data-as-a-service business and that business is growing 22% year-over-year. We feel really good about that. The adoption is really strong in our enterprise and strategic segments where they're leveraging that asset to build AI solutions to cleanse data in their CRMs and their data warehouses and their marketing automation systems. And we think that that's a business that will continue its momentum going into 2025.

是的，我們繼續看到數據即服務業務的強勁勢頭，該業務同比增長 22%。我們對此感覺非常好。在我們的企業和策略領域，這種採用確實很強大，他們利用該資產來建立人工智慧解決方案，以清理其 CRM、資料倉儲和行銷自動化系統中的資料。我們認為該業務將在 2025 年繼續保持成長勢頭。

Koji Ikeda, Bank of America.

池田浩二，美國銀行。

Yeah, thanks guys for taking my question. I wanted to follow up on a previous question about the exit growth rate for 4Q and thinking about 2025. And so when we do look at the exit growth rate in 4Q, it's a little bit lower than it was during the prior guide. And I get the really conservative part of that. But maybe help us understand a little bit more what we could underwrite in the business momentum, maybe one, two or three positive drivers here that's giving us -- that could give us confidence that 2025 revenue growth would not be flat to even negative next year? Thank you.

是的，謝謝大家回答我的問題。我想跟進之前關於第四季度退出增長率的問題並思考 2025 年。我明白其中真正保守的部分。但也許可以幫助我們更多地了解我們可以在業務勢頭中承保什麼，也許這裡有一個、兩個或三個積極的驅動因素，這可以給我們帶來信心，即明年2025 年收入增長不會持平，甚至出現負成長？謝謝。

Yeah. The positive drivers that we're really focused on are up market right now. So we're growing the enterprise business. And we continue to have an opportunity to reaccelerate that further in mid-market, specifically in our software vertical. We saw retention improve sequentially for the second quarter in a row after multiple quarters of decline. That's really where we had the most downsell pressure over the last two-plus years. So we're really just balancing that with being selective in the SMB and finding the right growth balance between the three segments.

是的。目前我們真正關注的正面驅動因素是高端市場。因此，我們正在發展企業業務。我們繼續有機會在中階市場進一步加速這一進程，特別是在我們的軟體垂直領域。我們看到，在經歷了多個季度的下降之後，留存率連續第二個季度有所改善。這確實是過去兩年多來我們面臨的降價壓力最大的地方。因此，我們實際上只是在中小企業中進行選擇性平衡，並在三個細分市場之間找到正確的成長平衡。

And while we're seeing good momentum continue in October and into November, we're going to continue to be conservative with our guidance.

雖然我們看到 10 月和 11 月繼續保持良好勢頭，但我們將繼續對我們的指導保持保守。

Thank you.

謝謝。

Taylor McGinnis, UBS.

泰勒‧麥金尼斯，瑞銀集團。

Thanks so much for taking my question. Maybe on the SMB side. So I know you mentioned disqualifying more than $2 million of higher risk new sales per month versus $1 million prior. But to clarify, is that on existing customer renewals? Or is that new logos? Because I'm just curious how we should think about the growth algorithm, I guess, in the near term being maybe more weighted towards existing expansions versus new logo sales?

非常感謝您提出我的問題。也許在中小企業方面。我知道您提到取消每月超過 200 萬美元的高風險新銷售資格，而之前為 100 萬美元。但需要澄清的是，這是針對現有客戶的續約嗎？或者說這是新的標誌？因為我只是好奇我們應該如何考慮成長演算法，我想，在短期內可能會更注重現有的擴張而不是新標誌的銷售？

And then just quickly as a follow-up, in terms of the guide, was there any changes that were embedded in the 4Q guide in terms of how you're thinking about the headwind from SMB and what that might have been?

然後，就指南而言，作為後續行動，第四季度指南中是否嵌入了任何變化，即您如何看待來自中小企業的逆風以及可能會帶來什麼？

Yeah. Thanks for the question. That disqualification numbers, those are new business, new logo driven. So $1 million in Q2 per month of new business ACV that we're disqualifying and then that number has increased to $2 million with our updated model in Q3. And then on the guide, yes, that disqualification is a near-term headwind to new sales ACV, but at the same time, either high-risk customers that were very unlikely to pay, and that will quickly turn into a midterm tailwinds as we have a higher quality of revenue in 2025.

是的。謝謝你的提問。取消資格的數字是新業務、新標誌驅動的。因此，第二季每月 100 萬美元的新業務 ACV 被我們取消資格，然後隨著我們在第三季更新的模型，這個數字已增加到 200 萬美元。然後在指南上，是的，取消資格是新銷售 ACV 的近期阻力，但與此同時，要么是不太可能付款的高風險客戶，這將很快變成中期順風，因為我們2025 年收入質量更高。

Great. Thank you so much.

偉大的。太感謝了。

Arti Vula, JPMorgan.

阿蒂·烏拉，摩根大通。

Hey, thanks for taking the question. This is Arti on for Mark Murphy. My question was, I know there's kind of a lot of moving pieces in terms of hiring in the installed base. But for some of these companies that are really investing in kind of agentic solutions and hiring behind that, are you seeing any of that benefit across your installed base, maybe across the larger customers? Thanks.

嘿，謝謝你提出問題。我是馬克墨菲的阿蒂。我的問題是，我知道在安裝基礎上的招聘方面有很多變化。但對於其中一些真正投資於代理解決方案並在其背後進行招聘的公司來說，您是否在您的安裝基礎（也許是更大的客戶）中看到了任何好處？謝謝。

The -- sorry, I just want to make sure I understand the question. Is this companies that are building agentic solutions for the broader market or who are building it for their own use cases?

- 抱歉，我只是想確保我理解這個問題。這些公司是為更廣泛的市場建立代理解決方案，還是為自己的用例建立代理解決方案？

Yeah, that's correct. Building it for the broader market and kind of hiring sales reps to go out there and sell that.

是的，這是正確的。為更廣泛的市場打造它，並僱用銷售代表去那裡銷售它。

Got it. For the broader market, we're not seeing those types of customers come in. I think where we are seeing that benefit is where internal large customers are building their own AI solutions for internal usage for their own sellers to use where they're leveraging our DaaS solutions to be the foundational data component to those solutions.

知道了。對於更廣泛的市場，我們沒有看到這些類型的客戶進入。我們的DaaS 解決方案將成為這些解決方案的基礎資料元件。

Jackson Ader, KeyBanc Capital Markets

Jackson Ader，KeyBanc 資本市場

Great. Thanks for taking our questions guys. I just had a question about the kind of the difference between SMBs and the mid-market. So I'm just curious like what is it that SMBs are -- why aren't the SMBs seeing the value that a mid-market customer would that's kind of keeping them from staying on the platform and expanding with ZoomInfo at the moment?

偉大的。謝謝你們回答我們的問題。我只是想問一下中小企業和中端市場之間的差異。所以我只是好奇中小型企業到底是什麼——為什麼中小型企業沒有看到中端市場客戶的價值，這會阻止他們目前留在平台上並透過 ZoomInfo 擴展？

I think a big portion of our SMB base is seeing the value and we can grow with those customers. This is really a lower end of SMB cash question where we want to make sure that we are not extending credit to high-risk customers. So there's a broad swath of SMB, where we want to go and sell to those customers and grow with those customers.

我認為我們的中小企業群體中的很大一部分都看到了價值，我們可以與這些客戶一起成長。這實際上是中小企業現金問題的低端問題，我們希望確保我們不會向高風險客戶提供信貸。因此，我們希望向大量中小型企業客戶銷售產品，並與這些客戶一起成長。

Okay. And then I guess for a quick follow-up. I mean, if we think about -- take all the noise from the last few years, right, the pandemic noise kind of out of our -- if we think to a pre-pandemic life versus today, how should we be thinking about your -- the data moat, right, today relative to your competition? Is it wider? Is it narrow? Or is it about the same?

好的。然後我想進行快速跟進。我的意思是，如果我們考慮一下——把過去幾年的所有噪音都去掉，對吧，把流行病的噪音從我們的生活中剔除——如果我們考慮一下大流行前的生活與今天的生活相比，我們應該如何考慮你的生活——今天的數據護城河，對吧，相對於你的競爭對手？是不是更寬了？窄嗎？或者說是差不多的嗎？

We feel really good about our data moat. We continue to grow our contributory network. We continue to grow our community network. We're now expanding that data moat with a variety of new signals that we're ingesting and integrating into our platform. And so from a data perspective, they're more contributors, they're more community members, there's more signal data that we're licensing and integrating into our Copilot product. And so that ecosystem is getting larger. And so I feel really good about the data moat continuing to expand.

我們對我們的數據護城河感覺非常好。我們繼續發展我們的貢獻網絡。我們繼續發展我們的社區網絡。我們現在正在透過吸收並整合到我們的平台中的各種新訊號來擴展數據護城河。因此，從數據的角度來看，他們是更多的貢獻者，他們是更多的社群成員，我們正在授權並整合到我們的 Copilot 產品中的訊號數據也更多。所以這個生態系統變得越來越大。因此，我對數據護城河的持續擴張感到非常高興。

Got it. Okay. Thank you one moment for our next question.

知道了。好的。謝謝您提出我們的下一個問題。

Michael Turrin, Wells Fargo.

麥可特林，富國銀行。

You got Michael Berg on for Michael Turrin here. Congrats on the quarter. I wanted to get a better sense of maybe a better characterization of what the incremental conservatism is including here? You talked a lot about the write-downs and the ongoing macro, but maybe some incremental color there. And then I got a quick follow-up.

你在這裡讓麥可·伯格取代了麥可·特林。恭喜本季。我想更好地理解漸進式保守主義在這裡包括什麼？您談到了很多關於減記和正在進行的宏觀調控的內容，但也許還有一些增量色彩。然後我得到了快速跟進。

Sure. We value consistency with the guide, and we're going to craft guidance with an expectation that we can meet or exceed the ranges provided. As Henry indicated, we intend to take a conservative approach to our guidance communications going forward. And part of that is discounting positive operating momentum from recent quarters. The general philosophy is that we model and consider a wide range of outcomes based on all the information we have at hand at the time.

當然。我們重視與指南的一致性，並且我們將精心製作指南，期望能夠達到或超過所提供的範圍。正如亨利所指出的，我們打算對未來的指導溝通採取保守的態度。其中一部分是低估了最近幾季的積極營運動能。總體理念是，我們根據當時掌握的所有資訊來建模並考慮廣泛的結果。

Got it. Helpful. And then in terms of the Copilot, you mentioned $60 million in ACV. Is that incremental to the $18 million in Q2 you saw? Or is it $60 million total since launch?

知道了。有幫助。然後就副駕駛而言，您提到了 6000 萬美元的 ACV。這比您看到的第二季度 1800 萬美元有所增加嗎？還是自推出以來總計 6000 萬美元？

That's an exiting total. So that includes the $18 million.

這是一個令人興奮的總數。這其中包括 1800 萬美元。

Got it helpful.

得到它有幫助。

Brian Peterson, Raymond James.

布萊恩彼得森，雷蒙德詹姆斯。

Hey, thank you. This is Johnathan McCary on for Brian. Just one from us here. Is there any update you can share on the call about ARR split by vertical and how that's performing? Graham, you answered this in part in the software ARR stabilizing or -- software NRR stabilizing. But curious to hear about how the traction is building outside of the software and tech exposure more broadly, if you can give anything there? Thanks.

嘿，謝謝你。我是喬納森·麥卡里 (Johnathan McCary) 替布萊恩發言。我們這裡只有一位。您是否可以在電話會議上分享有關按垂直劃分的 ARR 及其執行情況的任何更新？ Graham，您在軟體 ARR 穩定性或軟體 NRR 穩定性中部分回答了這個問題。但很想知道在軟體和技術之外更廣泛的吸引力是如何建立的，如果你能在那裡提供任何東西嗎？謝謝。

Sure. Yeah, we had software retention improved sequentially for the second quarter in a row after declining back through, I think, the end of 2021. The other verticals, at least we're continuing to see across some of them double-digit growth, if not high single-digit growth. One, a couple of them that we wanted to highlight were manufacturing had strong growth in Q3 as did finance, transportation and logistics.

當然。是的，在我認為 2021 年底出現下滑之後，我們的軟體保留率在第二季度連續提高。 。一，我們想強調的幾個因素是製造業在第三季的強勁成長，金融、運輸和物流也是如此。

Tyler Radke, Citi.

泰勒·拉德克，花旗銀行。

Yeah, thanks for taking the question. If you look out at NRR, can you just walk us through the puts and takes there? It sounds like you are seeing some positive momentum on the enterprise business and presumably the focus on higher-quality customers should provide a benefit to that. So when do you think that starts to improve? And then secondly, as you think about the initiative to reduce the lower quality customers, I believe you talked about kind of extending the restrictions for prepayment to 55% of the customer base. Is that kind of as high as you think you'll go? Or do you think that there's further enforcements and room to take that higher? Thank you.

是的，感謝您提出問題。如果您有在關注 NRR，您能向我們介紹看跌期權和看跌期權嗎？聽起來您看到了企業業務的一些積極勢頭，並且對高品質客戶的關注應該會帶來好處。那麼您認為這種情況什麼時候開始改善？其次，當您考慮減少低品質客戶的舉措時，我相信您談到了將預付款限制擴大到 55% 的客戶群。這是你想像的那麼高嗎？或者您認為還有進一步的執法和進一步提高的空間嗎？謝謝。

Sure. On the puts and takes into retention, enterprise certainly getting that -- maintaining and getting that above 100% and then getting mid-market back closer to 100%, like those are the big drivers of improving retention over time. One of the things we want to call out in retention is that this is a trailing 12-month or year-over-year view. So the in-period activity effectively takes a little bit longer to show up in that year-over-year view, and we're optimistic about the trajectory there.

當然。在留存率方面，企業肯定會做到這一點——維持並使其高於100%，然後使中端市場恢復到接近100%，就像這些是隨著時間的推移提高留存率的主要驅動力。關於留存率，我們要指出的一件事是，這是過去 12 個月或同比的視圖。因此，期內活動實際上需要更長的時間才能在同比視圖中顯示出來，我們對那裡的軌跡感到樂觀。

And then on the disqualification, I guess, that's the clip that we have right now coming out of Q3. I would characterize it as this is the level -- that $2 million plus we would expect to continue at a minimum at that level moving forward and continuing to run the greater portion of our new sales pipeline through this new business risk model.

然後關於取消資格，我想，這就是我們現在從第三季出來的剪輯。我將其描述為這個水平——200萬美元以上，我們預計將繼續以最低水平繼續前進，並繼續透過這種新的業務風險模型運行我們新銷售管道的大部分。

Thank you.

謝謝。

I think just -- if I just add it on there, I think if you're thinking about where -- if I'm thinking about where I see the opportunity from an NRR perspective, I think, first, in the mid-market and enterprise segments of our business, we have this real opportunity with Copilot, where we're gaining momentum in our ability to take that to the customer base. It helps us when we attach from an upsell perspective or on a renewal perspective. There are also places where it's helping us mitigate downsell.

我認為，如果我只是將其添加到那裡，我想如果你正在考慮在哪裡 - 如果我正在考慮從 NRR 角度來看我在哪裡看到機會，我想，首先是在中端市場以及我們業務的企業部門，我們透過Copilot 獲得了這個真正的機會，我們在將其帶給客戶群的能力方面正在獲得動力。當我們從追加銷售或更新的角度進行附加時，它會幫助我們。在某些地方，它還可以幫助我們減少降價銷售。

And I think we're seeing that with the improvement in mid-market, particularly in the software sector, where we're able to leverage Copilot to get that segment back to growth. And then in our way upmarket segment, our strategic segment, I think what we're seeing there is much more interest in our DaaS solutions as they continue to build AI internally and they need cleansed and accurate and complete data assets to be able to do that. And so we're pushing on Copilot in mid-market and enterprise. We continue to see great growth from a DaaS and operations perspective in the strategic segment.

我認為，隨著中階市場的改善，特別是在軟體領域，我們能夠利用 Copilot 讓該細分市場恢復成長。然後，在我們的高端細分市場，我們的策略性細分市場，我認為我們看到人們對我們的DaaS 解決方案更加感興趣，因為他們繼續在內部建立人工智慧，並且他們需要清理、準確和完整的數據資產才能做到這一點。因此，我們正在中端市場和企業中推動 Copilot。從 DaaS 和營運的角度來看，我們繼續看到策略領域的巨大成長。

And then in the SMB segment, we're bringing on much healthier customers today who are paying us upfront. And so we get a dual benefit of that once we lap that at the moment in time where we started doing that in Q2 of this year. We'll see that in Q2 of next year where we have this healthier customer base who paid us upfront and so we won't have the headwind of write-offs. And then we have a -- and we've disqualified the riskiest, highest churn customers out of that cohort anyways.

然後在中小企業領域，我們今天帶來了更健康的客戶，他們預先向我們付款。因此，一旦我們在今年第二季開始這樣做，我們就會得到雙重好處。我們將在明年第二季看到，我們擁有更健康的客戶群，他們預先向我們付款，因此我們不會遇到沖銷的阻力。然後我們就——無論如何，我們已經取消了該群體中風險最高、流失率最高的客戶的資格。

And so we end up with a healthier group of customers. And in new business, we're selling more mid-market and enterprise customers upfront. And so the installed base is much healthier when you lap Q2 of next year.

因此，我們最終擁有了一群更健康的客戶。在新業務中，我們正在預先銷售更多的中端市場和企業客戶。因此，當你明年第二季完成時，安裝基礎會更加健康。

Rishi Jaluria, RBC Capital Markets.

Rishi Jaluria，加拿大皇家銀行資本市場。

Thanks so much for taking my questions. Just really quickly, I want to hit again on Copilot. Maybe help us understand how do you feel about your right to win in Copilot especially versus maybe more neutral platforms that can integrate their data? And if you think about maybe the whole kind of argument of Copilot versus agentic AI, can you talk about some of the potential agentic capabilities that you are or intend to build out some of that? Thank you so much.

非常感謝您回答我的問題。很快，我想再次點擊副駕駛。也許可以幫助我們了解您對在 Copilot 中獲勝的權利有何看法，尤其是與可以整合其數據的更中立的平台相比？如果你考慮一下 Copilot 與代理人工智慧的整個爭論，你能談談你正在或打算建立的一些潛在的代理功能嗎？太感謝了。

Yeah. Look, I think a couple of things. First of all, we really believe that if you're trying to build any go-to-market AI on top of just your internal data or potentially data that lives in your CRM or your data warehouse, if you're trying to build go-to-market AI on top of those data assets, and we're hearing this from our customers, they just can't build solid AI solutions with that data. Not only do you need data that's cleansed and accurate, but the information that lives inside of your systems of record, they don't give you a complete picture of the market in front of you. It's not your total addressable market. It's not dynamic data that's constantly changing with news releases and job postings and earnings calls and interviews, and expert calls. All of that information is constantly changing, and that's not appearing in a dynamic way inside of your CRM or your data warehouse.

是的。聽著，我想到了幾件事。首先，我們確實相信，如果您嘗試在內部資料或 CRM 或資料倉儲中的潛在資料之上建立任何進入市場的人工智慧，如果您嘗試建立進入市場的人工智慧， - 在這些資料資產之上推出人工智能，我們從客戶那裡聽到這一點，他們無法利用這些數據來建立可靠的人工智慧解決方案。您不僅需要乾淨且準確的數據，還需要記錄系統中的信息，它們無法為您提供眼前市場的完整情況。這不是您的總目標市場。它不是隨著新聞發布、職位發布、財報電話會議、採訪以及專家電話會議而不斷變化的動態數據。所有這些資訊都在不斷變化，並且不會以動態方式出現在您的 CRM 或資料倉儲中。

And so when you go try to build go-to-market AI on top of static scale and almost always outdated data, you're going to get a pretty bad AI solution on the other side of it. And so we have a lot of confidence that the foundation that we start with are the best B2B data asset in the world is the foundation that you need in order to build AI for go-to-market.

因此，當你嘗試在靜態規模和幾乎總是過時的資料之上建立進入市場的人工智慧時，你會得到一個非常糟糕的人工智慧解決方案。因此，我們非常有信心，我們所建立的基礎是世界上最好的 B2B 數據資產，也是您建立面向市場的人工智慧所需的基礎。

And then anybody else who starts with a foundation that's any different than that just ends up at roadblock after roadblock after roadblock. And so we absolutely believe that the B2B data asset that we've put together over the last 20 years, in addition to all of the new signals that we're adding on top of that data asset, gives us the right to win or go-to-market AI and to be the go-to-market AI platform of the future.

然後任何其他人如果從與此不同的基礎開始，最終都會遇到一個又一個的障礙。因此，我們絕對相信，我們在過去 20 年中積累的 B2B 數據資產，以及我們在該數據資產之上添加的所有新信號，賦予我們獲勝或失敗的權利-將人工智能推向市場，並成為未來的推向市場的人工智慧平台。

When we think about agentic additions to the platform, the way we think about it is, first, you have this data foundation that gives you a full view of any company's total addressable market, including the companies, the people at those companies, the signals that they're demonstrating that would tell you whether they're in market or not. And then we use that foundation to start building out the different tasks that an account executive, an account manager, an SDR is doing every day. We start with prospect research, we move to account planning, we move from there to flagging risk in the customer base to building the communications to reach out to customers, to building the follow-ups to reach out to customers.

當我們考慮向平台添加代理時，我們的想法是，首先，您擁有這個數據基礎，它可以讓您全面了解任何公司的整個潛在市場，包括公司、這些公司的人員、信號他們正在展示這可以告訴你他們是否在市場上。然後我們利用這個基礎開始建立客戶主管、客戶經理、特別提款權每天要做的不同任務。我們從前景研究開始，然後進行客戶規劃，然後從那裡開始標記客戶群中的風險，建立溝通以接觸客戶，再到建立後續行動以接觸客戶。

And so we're taking every slice of what an account executive, an account manager, an SDR, a rev ops and a sales op professional does, and we're using the AI capabilities to automate those tasks out of their day-to-day, and we're building that on the only data foundation you can actually build go-to-market AI on top of.

因此，我們正在考慮客戶主管、客戶經理、SDR、轉速操作員和銷售操作員專業人員所做的每一部分，我們正在使用人工智慧功能來自動化這些日常任務。的數據基礎上，您可以在其上真正建立進入市場的人工智慧。

All right. Wonderful. Thank you.

好的。精彩的。謝謝。

Patrick Walravens, Citizens JMP.

Patrick Walravens，公民 JMP。

Great. Thank you. Henry, how do you see the space consolidating over the next few years? If I step back and look at it, I feel like there's five segments. There's data, there's revenue enablement like Seismic, there's engagement like SalesLoft and Outreach, there's conversational intelligence like Gong, there's revenue forecasting like Clari. You guys have a lot of -- a little bit of these categories already. Where does this all go?

偉大的。謝謝。亨利，您如何看待未來幾年的空間整合？如果我退一步看，我覺得有五個部分。有數據，有像Seismic這樣的收入支持，有像SalesLoft和Outreach這樣的參與，有像Gong這樣的對話智能，有像Clari這樣的收入預測。你們已經有很多這樣的類別了。這一切都去哪了？

Listen, I'm of the fundamental belief that when generative AI came to the market, a gun went off to a new race. And a lot of competitors or people in the space laid back and said, "Oh, we're going to see how this plays out." And we leaned in, and we put a bunch of investments between product and engineering and our teams behind Copilot. We enabled our go-to-market teams. We rearchitected our platform to be AI first, and we leaned into this opportunity.

聽著，我堅信，當生成式人工智慧進入市場時，一場新的競賽就開始了。許多競爭對手或該領域的人士悠閒地說：“哦，我們將看看結果如何。”我們做出了努力，在產品和工程以及 Copilot 背後的團隊之間進行了大量投資。我們啟用了市場推廣團隊。我們重新建構了我們的平台，以人工智慧為先，我們抓住了這個機會。

And so I think like all of the segments that you see today will be fundamentally changed over the next two to three years. But the constant, the constant in all of that is that every one of those solutions is going to need the highest quality data as its foundation to build AI for the future. And so I think we're fundamentally benefited from the fact that in this space with a lot of different players doing a lot of different things, we start with the foundational asset that you need to build AI. We have the scale in this space, we leaned in at the right time, and we're going to continue to build AI around the only data foundation you can build go-to-market AI around.

因此，我認為您今天看到的所有細分市場都將在未來兩到三年內發生根本性變化。但不變的是，所有這些解決方案中的每一個都需要最高品質的數據作為建立未來人工智慧的基礎。因此，我認為我們從根本上受益於這樣一個事實：在這個領域，有很多不同的參與者在做很多不同的事情，我們從建立人工智慧所需的基礎資產開始。我們在這個領域擁有規模，我們在正確的時間進行了傾斜，我們將繼續圍繞唯一的數據基礎來構建人工智能，您可以圍繞它構建進入市場的人工智能。

Awesome. If I could ask a follow-up. You made an interesting comment in your remarks about reactivating dormant seats with Copilot. Can you explain that a little more?

驚人的。如果我可以問後續情況。您在關於重新啟動副駕駛休眠座位的評論中發表了有趣的評論。你能再解釋一下嗎？

Sure. I think they are -- like across any user base, there are users who are leveraging the platform in a day-to-day or week-to-week motion, and then there are users who are not. And what Copilot has done for us is it's reactivated a number of seats that were historically being unused as frequently as we would like to have seen them use. And we're doing that because now day-to-day, we are sending -- or every day, we are sending our users and our customers key signals on their target accounts.

當然。我認為，就像任何用戶群一樣，有些用戶每天或每週都在利用該平台，而有些用戶則沒有。 Copilot 為我們所做的是，它重新激活了一些歷史上未使用的座位，正如我們希望看到它們使用的那樣頻繁。我們這樣做是因為現在我們每天都在向用戶和客戶的目標帳戶發送關鍵訊號。

And so we're able to understand who their target accounts are. We're able through our AI to understand what would be happening within those target accounts that they would care about. And so -- and then we're using all of that data, that intent data, those earnings call transcripts, podcast interviews, job posting to identify key moments at those target accounts and then deliver that to our customers through e-mail, through Slack and Teams messages, through notifications on mobile. And so we're putting the key moments happening at their customers right in front of them and then giving them one click to engage with the right buyers at those companies.

這樣我們就能夠了解他們的目標客戶是誰。我們能夠透過人工智慧了解他們關心的目標帳戶中會發生什麼。然後，我們使用所有這些數據、意向數據、財報電話會議記錄、播客採訪、職位發布來識別這些目標客戶的關鍵時刻，然後透過電子郵件將其傳遞給我們的客戶，透過透過行動裝置上的通知發送Slack 和Teams 訊息。因此，我們將客戶發生的關鍵時刻擺在他們面前，然後讓他們一鍵點擊即可與這些公司的合適買家互動。

Great. Thank you.

偉大的。謝謝。

Thank you. Now I'll turn it back over to Henry for any closing remarks.

謝謝。現在我將把它轉回給亨利做總結發言。

Great. Thank you, everyone, for joining us tonight. We realized that one or two quarters do not make a trend line, but we are excited about the operating momentum in the business and the number of green shoots we are seeing. We continue to believe that the best path for long-term shareholder value creation is to delight our customers, and by doing so, grow levered free cash flow per share, and we continue to expect to do that. Thank you, and good night.

偉大的。謝謝大家今晚加入我們。我們意識到一兩個季度並不能形成趨勢線，但我們對業務的營運動能和我們看到的萌芽數量感到興奮。我們仍然相信，創造長期股東價值的最佳方法是讓我們的客戶滿意，並透過這樣做來增加每股槓桿自由現金流，我們繼續期望這樣做。謝謝你，晚安。