Zuora Inc (ZUO) 2025 Q1 法說會逐字稿

Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Zuora, FY25 Q1 earnings conference call. (Operator Instructions) I would now like to turn the conference over to Luana Wolk, Head of Investor Relations. You may begin.

謝謝你的支持。我叫帕姆，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Zuora 2025 財年第一季財報電話會議。（操作員指示）我現在想將會議轉交給投資者關係主管 Luana Wolk。你可以開始了。

Good afternoon, and welcome to Zuora first-quarter fiscal 2025 earnings conference call. On the call, we have, Tien Tzuo, Founder and Chief Executive Officer; and Todd McElhatton, Chief Financial Officer; Robbie Traube, our President and Chief Revenue Officer; will be joining us for the Q&A session.

下午好，歡迎參加 Zuora 2025 財年第一季財報電話會議。出席電話會議的有創辦人兼執行長 Tien Tzuo；麥克埃爾哈頓 (Todd McElhatton)，財務長； Robbie Traube，我們的總裁兼首席營收長；將加入我們的問答環節。

During today's call, we'll make statements that represent our expectations and beliefs concerning future events that may consider forward looking under federal securities law. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook.

在今天的電話會議中，我們將發表聲明，代表我們對未來事件的期望和信念，這些事件可能會根據聯邦證券法考慮前瞻性。這些聲明僅反映我們今天的觀點，不應被視為代表我們在任何後續日期的觀點。我們不承擔更新任何前瞻性陳述或展望的義務。

These statements are subject to several risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC.

這些陳述受到多種風險和不確定性的影響，可能導致實際結果與預期有重大差異。有關可能影響我們財務表現的重大風險和其他重要因素的進一步討論，請參閱我們向 SEC 提交的文件。

And finally, unless otherwise noted, all numbers except revenue mentioned today are non-GAAP. You can find a reconciliation from GAAP to non-GAAP results for both the current and prior year periods in today's press release. Our press release and a replay of today's call can be found on Zuora's investor relations website at investors.zuora.com. Now I'll turn the call over to Tien Tzuo.

最後，除非另有說明，除今天提到的收入外，所有數字均為非公認會計原則。您可以在今天的新聞稿中找到當年和上一年期間 GAAP 與非 GAAP 業績的調整表。我們的新聞稿和今天電話會議的重播可以在 Zuora 的投資者關係網站 Investors.zuora.com 上找到。現在我將把電話轉給 Tien Tzuo。

Thank you, Luana, and thank you, everyone, for joining Zuora's first-quarter fiscal 2025 earnings call. When I look back on the puts and takes to this past quarter, I would say, I feel good about the progress we continue to make against the macro environment facing the technology industry. We continue to deliver on our guidance. We continue to benefit from a solid enterprise customer base with strong expansion opportunities and of course, we remain focused on our strategy to deliver profitable, durable growth.

謝謝 Luana，也謝謝大家參加 Zuora 的 2025 財年第一季財報電話會議。當我回顧上個季度的看跌期權和期權時，我會說，我對我們在科技行業面臨的宏觀環境下繼續取得的進展感到滿意。我們將繼續履行我們的指導。我們繼續受益於堅實的企業客戶群和強大的擴張機會，當然，我們仍然專注於實現盈利、持久成長的策略。

Let's start with the numbers. In Q1. Subscription revenue was $99 million, up 10% year-over-year at the high end of our range. We exceeded guidance for non-GAAP operating income at $18.6 million, equating to a 17% operating margin, which is a quarterly record. Our adjusted free cash flow was at an all-time high of $31.4 million for this quarter, a significant increase from the $13 million we delivered in Q1 of last year.

讓我們從數字開始。在第一季。訂閱收入為 9,900 萬美元，年增 10%，處於我們範圍的高端。我們超越了非 GAAP 營業收入指引，達到 1,860 萬美元，相當於 17% 的營業利潤率，創季度記錄。本季我們調整後的自由現金流達到 3,140 萬美元的歷史最高水平，比去年第一季的 1,300 萬美元大幅增加。

And finally, against the Rule of 40 framework, which combines growth and profitability, we are on track to exit this fiscal year at 30%, up from the 26% level that we had at the end of last year. One highlight of Q1, I would say is our installed base expansion. Our stable of large enterprise customers continues to anchor the durability of our business.

最後，根據結合了成長和獲利能力的 40 規則框架，我們預計以 30% 的速度退出本財年，高於去年年底 26% 的水平。我想說，第一季的一個亮點是我們的安裝基礎擴張。我們穩定的大型企業客戶持續支撐著我們業務的持久性。

Our customer satisfaction levels continue to rise as measured by Net Promoter Score. Customers continue to love our new innovations, and this is driving strong expansion opportunities. In fact, in Q1, we saw a year over year increase in cross-sells with customers either adding another Zuora products or adopting our technology and new business units.

根據淨推薦值衡量，我們的客戶滿意度持續上升。客戶繼續喜歡我們的新創新，這正在推動強勁的擴張機會。事實上，在第一季度，我們看到客戶的交叉銷售逐年增加，要么添加另一種 Zuora 產品，要么採用我們的技術和新業務部門。

Some examples, our customers are adopting additional products like Zephr, Economist, a leading news magazine with over 1 million subscribers is a Zuora Billing customer that added Zephr in Q1. Their digital subscriber base continues to grow and they will be using Zephr to enhance their dynamic paywall experience. Our customers are adopting this new business units.

一些例子，我們的客戶正在採用 Zephr 等其他產品，《經濟學人》是一家擁有超過 100 萬訂閱者的領先新聞雜誌，它是 Zuora Billing 的客戶，在第一季添加了 Zephr。他們的數位用戶群不斷增長，他們將使用 Zephr 來增強他們的動態付費專區體驗。我們的客戶正在採用這個新的業務部門。

One of the world's largest automakers expanded with Zuora to power and other business units this time for its software suite that manages connected services and telematics for commercial fleets. Our Toast revenue to Zuora building cross-sells are working.

全球最大的汽車製造商之一與 Zuora 合作，此次將其軟體套件擴展到電力和其他業務部門，該套件可管理商業車隊的互聯服務和遠端資訊處理。我們的 Toast 收入與 Zuora 建立的交叉銷售正在發揮作用。

Last quarter, we talked about Toast, as a great example. Well, this quarter, we saw another Toast revenue customer, a global leader in customer experience and contact center solutions with over $1.2 billion in annual revenue. We added Zuora Billing with advanced consumption to help them analyze millions of customer usage data points to monetize their AI powered support offerings. We are supporting our customers expand into new countries or regions.

上個季度，我們討論了 Toast，這是一個很好的例子。嗯，本季度，我們看到了另一個 Toast 收入客戶，這是客戶體驗和聯絡中心解決方案的全球領導者，年收入超過 12 億美元。我們為 Zuora Billing 增加了進階消費功能，幫助他們分析數百萬個客戶使用數據點，從而透過人工智慧支援產品獲利。我們正在支持我們的客戶擴展到新的國家或地區。

In Q1, global manufacturing brand, Luxottica, they produce eyewear for brands like Oakley, Gucci, and Prada, and they expanded with us to support their eyewear subscription service in new countries. So our install base business was a highlight in Q1. In Q1, though, our new logo business continues to be affected by the macro headwinds, as we again saw companies delayed large multi-million dollar projects at the end of the quarter.

在第一季度，全球製造品牌 Luxottica 為 Oakley、Gucci 和 Prada 等品牌生產眼鏡，並與我們一起擴展業務，以支持他們在新國家的眼鏡訂閱服務。因此，我們的安裝基礎業務是第一季的一大亮點。不過，在第一季度，我們的新商標業務繼續受到宏觀逆風的影響，因為我們再次看到公司在季度末推遲了數百萬美元的大型專案。

Now, as we mentioned on previous calls, we remain committed to our strategy of doing smaller, faster lands with great companies and brands. A good example in Q1 would be Mitsubishi Electric, one of the world's largest manufacturing companies with over $36 billion of revenue. As Mitsubishi Electric continues to expand beyond hardware with complementary digital services for offering like air conditioning and factory automation systems, what they needed was a monetization suite that was built to support recurring revenue

現在，正如我們在之前的電話會議中提到的，我們仍然致力於與偉大的公司和品牌一起打造更小、更快的土地的策略。第一季的一個很好的例子是三菱電機，它是全球最大的製造公司之一，收入超過 360 億美元。隨著三菱電機繼續超越硬件，提供空調和工廠自動化系統等補充數位服務，他們需要的是一個旨在支援經常性收入的貨幣化套件

Overall -- however, the lack of large transformational deals, coupled with the seasonality of the software business, meant a lighter overall new logo quarter. That being said, we are getting more and more efficient in how we generate pipeline. We're switching to more digital and inbound techniques. And we're already seeing positive leading indicators show improved response rates and lead generation efficiency. So we believe that our opportunity remains strong as the year progresses.

然而，總體而言，缺乏大型轉型交易，加上軟體業務的季節性，意味著新商標季度整體表現較淡。話雖這麼說，我們在生成管道方面變得越來越有效率。我們正在轉向更多的數位化和入站技術。我們已經看到積極的領先指標顯示回應率和潛在客戶開發效率有所提高。因此，我們相信，隨著時間的推移，我們的機會仍然很大。

Most exciting news of the quarter, however, is our acquisition of Togai, and so I'd like to spend a few minutes talking through why this announcement is so important. Now we've seen an increase in demand for usage-based pricing, especially in the SaaS market. Our base consumption solution is one of our fastest-growing products in terms of pipeline.

然而，本季最令人興奮的消息是我們收購了 Togai，因此我想花幾分鐘時間談談為什麼這項公告如此重要。現在，我們看到基於使用的定價需求不斷增加，尤其是在 SaaS 市場。我們的基本消耗解決方案是我們在管道方面成長最快的產品之一。

As of Q1, we have over 50 customers that have selected our advanced consumption offering. And usage-based models continue to accelerate even further with the explosion that we're all seeing of GenAI based technologies. But in supporting our customers around consumption strategy We also uncovered a huge need, that engineering organizations have around capturing and metering their usage information, and this is where Togai comes in.

截至第一季度，我們有超過 50 家客戶選擇了我們的高級消費產品。隨著我們所看到的基於 GenAI 的技術的爆炸式增長，基於使用的模型繼續進一步加速。但在圍繞消費策略支持客戶的過程中，我們也發現了一個巨大的需求，即工程組織需要捕獲和計量他們的使用信息，這就是 Togai 的用武之地。

So that provides a leading metering and rating solution enables developers to directly convert raw data into usage metrics through a three-step no-code configuration builder with flexibility to monetize products in many, many different ways. This is really, really exciting. But the last thing I'll say about today is that this isn't just about usage-based models. There's a broader strategy going on, one that I will call total monetization.

因此，這提供了領先的計量和評級解決方案，使開發人員能夠透過三步驟無程式碼配置建構器直接將原始資料轉換為使用指標，並以多種不同的方式靈活地透過產品獲利。這真的非常非常令人興奮。但我今天要說的最後一件事是，這不僅僅是基於使用的模型。目前正在實施一項更廣泛的策略，我將其稱為「全面貨幣化」。

So what do I mean by that? Well, that you probably know Zuora as a company that predicted in lead the shift to subscription economy, then this shift has happened. Today, you and I were buying less and less stuff and it sure seems like every week, the CEO of another Fortune 500 companies declaring a target of shifting some meaningful percentage of their business to recurring revenue models. But now that the subscription economy, this new world is a new normal.

那我這是什麼意思呢？好吧，您可能知道 Zuora 是一家預測引領訂閱經濟轉變的公司，那麼這種轉變已經發生了。如今，你我購買的東西越來越少，而且似乎每週都有另一家財富 500 強公司的執行長宣布目標是將其業務的一些有意義的比例轉向經常性收入模式。但現在訂閱經濟已成為這個新世界的新常態。

People are asking what's next, but we believe what's next to the concept that we call total monetization. This is no longer just about stand-alone subscription businesses with monthly fees. It's also about one-time transactions like product sales or paid review professional services revenues or the usage and consumption models of Togai help us power.

人們在問接下來會發生什麼，但我們相信我們稱之為「全面貨幣化」的概念接下來會發生什麼。這不再只是按月收費的獨立訂閱業務。它還涉及一次性交易，例如產品銷售或付費評論專業服務收入或 Togai 的使用和消費模式幫助我們提供動力。

Total monetization is about mixing multiple business models in a way that maximizes the value of your innovations in your target market. And so we see this with companies like The New York Times, which transformed and unbundle how that offers products by game for cooking or news or sports alongside its traditional offerings, and they've been able to see their annual digital subscription revenues with this strategy go beyond $1 billion a year.

全面貨幣化是指以一種能夠最大限度地提高目標市場中的創新價值的方式混合多種商業模式。因此，我們在《紐約時報》等公司身上看到了這一點，它們改變並分拆了傳統產品和烹飪、新聞或體育遊戲產品的提供方式，並且他們已經能夠通過這一策略看到自己的年度數字訂閱收入每年超過 10 億美元。

So if you look at the innovations and acquisitions that we have made over the last seven years. Revenue recognition, payment orchestration, consolidated billing Zephr consumption billing now usage metering and meeting with the acquisition of Togai. We are no longer just a billing company. We are building, what I'll call a total monetization software stack for powering any business model.

因此，如果你看看我們在過去七年所做的創新和收購。收入確認、支付編排、合併計費 Zephr 消費計費現在可透過收購 Togai 進行使用計量和會議。我們不再只是一家計費公司。我們正在建立我所說的全面貨幣化軟體堆疊，以支援任何商業模式。

What's unique about this platform is that it's totally modularized, so you can start with billing or metering or revenue or payments. So when you look at our customer base, you see us owning the entire building layer in some companies and for other companies where the entire payments layer or the entire revenue layer, ultimately, our strategy is to be able to land with a new logo where our customer's pain point is greatest and then expand with them over time across the entire [order to] revenue process. In fact, this is our own total monetization strategy.

該平台的獨特之處在於它完全模組化，因此您可以從計費或計量或收入或付款開始。因此，當您查看我們的客戶群時，您會發現我們在某些​​公司中擁有整個構建層，而對於其他公司，則擁有整個支付層或整個收入層，最終，我們的策略是能夠在其中使用新標誌我們客戶的痛點是最大的，然後隨著時間的推移，在整個[訂單到]收入流程中與他們一起擴展。事實上，這就是我們自己的整體貨幣化策略。

So in summary, we believe that our bigger opportunity is to power a company's total monetization strategy and not just simply be a billing provider. We believe the innovations and acquisitions that we've made over the last few years put us in the best position to deliver all the technology needed to capture this emerging opportunity.

總而言之，我們認為我們更大的機會是為公司的整體貨幣化策略提供支持，而不僅僅是成為計費提供者。我們相信，過去幾年的創新和收購使我們處於最佳位置，可以提供抓住這一新興機會所需的所有技術。

And Togai is another key step in that journey, especially around the usage-based models that are exploding due to GenAI in IoT. We believe our modular approach is critical to enabling the broader land and expand strategy within our growing product portfolio, as you've heard us talking about in recent quarters. And finally, we are committed to driving sustainable profitable growth as we lead in this new era.

Togai 是這趟旅程中的另一個關鍵步驟，特別是圍繞著基於使用的模型，這些模型由於物聯網中的 GenAI 而呈爆炸式增長。我們相信，我們的模組化方法對於在我們不斷增長的產品組合中實現更廣闊的領域和擴展策略至關重要，正如您在最近幾個季度聽到我們談論的那樣。最後，我們致力於引領這個新時代，推動永續的獲利成長。

Finally, we hope you'll join us as described live on June 26 in the Bay Area to learn more from our customers as we help them monetize every part of their business. With that, let me turn over the call to Todd to review our financials. Todd.

最後，我們希望您能按照 6 月 26 日在灣區的現場報道加入我們，向我們的客戶了解更多信息，因為我們幫助他們將業務的各個部分貨幣化。接下來，讓我將電話轉給托德，以審查我們的財務狀況。托德。

Thank you, Tien, and thank you, everyone, for joining our call. In Q1, our subscription revenue and total revenue were at the high end of our range as we continue to make strides in our profitability. We exceeded the range for our non-GAAP operating income and expanded our adjusted free cash flow by $18.4 million compared to last year.

謝謝你，Tien，也謝謝大家加入我們的電話會議。在第一季度，隨著我們的獲利能力繼續取得長足進步，我們的訂閱收入和總收入處於我們範圍的高端。與去年相比，我們超出了非 GAAP 營業收入的範圍，調整後的自由現金流增加了 1,840 萬美元。

During the quarter, we continued to experience similar buyer behavior as we've seen in the last several quarters with longer sales cycles and fewer transformational deals. ARR growth and DBRR for the quarter were impacted by customer churn, including those discussed during our last earnings call. As a reminder, the customer churn was already factored into our guidance for Q1, and we expect our growth to accelerate in the second half of the year.

在本季度，我們繼續經歷與過去幾季類似的買家行為，銷售週期更長，轉型交易更少。本季的 ARR 成長和 DBRR 受到客戶流失的影響，包括我們上次財報電話會議中討論的問題。提醒一下，客戶流失已經納入我們第一季的指導中，我們預計下半年我們的成長將加速。

Despite these headwinds, we're making good progress towards exiting the year at a Rule of 30 run rate, including absorbing the expenses associated with our recent Togai acquisition. We had record quarterly performance for non-GAAP operating margin and adjusted free cash flow.

儘管存在這些不利因素，我們在以 30 規則運行率結束今年方面取得了良好進展，包括吸收與我們最近收購 Togai 相關的費用。我們的非公認會計原則營業利潤率和調整後自由現金流的季度業績創下歷史新高。

Now, I'll run through our financial results. Subscription revenue in Q1 was $99 million, growing 10% year-over-year. Professional Services revenue came in at $10.8 million, which was at the high end of our outlook, representing a decrease of 19% year-over-year. Professional services revenue was 10% of total revenue. We expect our professional services revenue mix to slightly decrease over time as we continue to expand our partnerships with SI's.

現在，我將介紹我們的財務表現。第一季訂閱營收為 9,900 萬美元，較去年同期成長 10%。專業服務收入為 1,080 萬美元，處於我們預期的上限，年減 19%。專業服務收入佔總收入的10%。隨著我們繼續擴大與 SI 的合作夥伴關係，我們預計我們的專業服務收入組合將隨著時間的推移而略有下降。

Non-GAAP subscription gross margin in Q1 was 81%, up nearly 100 basis points year-over-year. This improvement is driven by continued efficiency optimization with our hyperscalers. As a reminder, in Q3 and Q4 of fiscal '24, we benefited from onetime vendor credits. Non-GAAP professional services gross margin in Q1 was negative 14%, a decline from negative 3% in Q1 of last year.

第一季非 GAAP 訂閱毛利率為 81%，較去年同期成長近 100 個基點。這項改進是由我們的超大規模企業的持續效率優化所推動的。提醒一下，在 24 財年的第三季和第四季度，我們受惠於一次性供應商信貸。第一季非公認會計準則專業服務毛利率為負 14%，較去年第一季的負 3% 下降。

Similar to last quarter, this was expected as a result of our continued investment in customers. For the remainder of the year, you can expect margins to improve with professional services margin being in a negative mid-single digit range for the full year.

與上季類似，這是我們對客戶持續投資的結果。在今年剩餘時間裡，您可以預期利潤率將會改善，全年專業服務利潤率將處於負中個位數範圍內。

Our Q1 non-GAAP blended gross margin was 72%, an increase of over 230 basis points year-over-year. Our Q1 non-GAAP operating income was $18.6 million, exceeding the high end of our guidance by $2.6 million, representing a non-GAAP operating margin of 17%. During the quarter, remaining disciplined in our spending and expansion of our operating margin is a key objective toward our goal of exiting the year at a Rule of 30 run rate.

我們第一季的非 GAAP 混合毛利率為 72%，較去年同期成長超過 230 個基點。我們第一季的非 GAAP 營業收入為 1,860 萬美元，比我們指引的上限高出 260 萬美元，相當於 17% 的非 GAAP 營業利潤率。在本季度，保持嚴格的支出和擴大營業利潤率是實現我們以 30 的運行率結束今年目標的關鍵目標。

Our fully diluted share count at the end of the quarter was approximately $185.1 million shares using both the treasury stock and if converted methods. Let's dive into some of our key metrics for the quarter. Dollar-based retention rate ended at 104% down, 2-percentage-points quarter-over-quarter and down 4-percentage-points year over year.

使用庫存股和轉換後的方法，我們在本季末完全攤薄後的股票數量約為 1.851 億美元。讓我們深入了解本季的一些關鍵指標。以美元計算的留存率最終下降 104%，較上季下降 2 個百分點，較去年同期下降 4 個百分點。

The decrease in DBRR was primarily driven by the churn we discussed in our last call and foreign exchange. Without the FX headwind, DBRR would have been 105%. In Q1, total RPO ended at $581 million, growing 15% year-over-year. Non-current RPO was up 23% year-over-year to $256 million. We had a number of multiyear renewals in the quarter as customers continue to grow on our platform.

DBRR 的下降主要是由我們在上次電話會議中討論的客戶流失和外匯造成的。如果沒有外匯逆風，DBRR 將為 105%。第一季度，RPO 總額為 5.81 億美元，年增 15%。非流動 RPO 年成長 23%，達到 2.56 億美元。隨著客戶在我們平台上的不斷成長，我們在本季進行了多次多年期續訂。

At the end of Q1, we had 451 customers with an annual contract value at or above $250,000. This is up 15 customers year over year, but down 10 sequentially. During the quarter, some of the customers in this cohort downsized below the threshold, reflecting the impact of the macro environment on their business. We remain focused on the enterprise space, and this cohort represents 84% of our ARR.

截至第一季末，我們有 451 家客戶，年度合約價值等於或超過 25 萬美元。年比增加 15 名客戶，但季減 10 名。本季度，該群體中的部分客戶規模縮減至閾值以下，反映了宏觀環境對其業務的影響。我們仍然專注於企業領域，這群人占我們 ARR 的 84%。

In Q1, we closed two deals with ACV of $500,000 or more down from [four] in Q1 of last year. This includes two deals over $1 million, up from one last year. ARR grew 8% in Q1, reaching $404.4 million. Adjusted free cash flow was $31.4 million for the quarter, a significant incremental improvement of over $18 million compared to Q1 of last year.

第一季度，我們與 ACV 達成了兩筆 50 萬美元或以上的交易，比去年第一季的四筆交易有所減少。其中包括兩筆超過 100 萬美元的交易，比去年的一筆增加。第一季 ARR 成長 8%，達到 4.044 億美元。本季調整後的自由現金流為 3,140 萬美元，與去年第一季相比顯著增加了 1,800 萬美元以上。

Like other SaaS companies, our Q1 typically benefit from Q4 higher billing seasonality, and we expect more normalized trends for the rest of the year. As a reminder, adjusted free cash flow does not include acquisition related costs and other matters.

與其他 SaaS 公司一樣，我們的第一季通常受益於第四季度較高的計費季節性，我們預計今年剩餘時間的趨勢將更加正常化。需要提醒的是，調整後的自由現金流不包括收購相關成本和其他事項。

Turning to the balance sheet, we ended the quarter with $547 million in cash and cash equivalents, a sequential increase of $33 million. Total CapEx for the quarter was $2.7 million. Before I discuss guidance, I'd like to provide some color on our recent tuck-in acquisitions. As Tien noted, Togai will bolster our consumption capabilities and we expect it will broaden our ability to land and expand. From a financial standpoint, Togai's revenue is negligible, and we expect to absorb their operating costs.

轉向資產負債表，本季末我們的現金和現金等價物為 5.47 億美元，季增 3,300 萬美元。本季總資本支出為 270 萬美元。在討論指導之前，我想先介紹一下我們最近的收購。正如 Tien 所指出的，Togai 將增強我們的消費能力，我們預計它將擴大我們的落地和擴張能力。從財務角度來看，Togai 的收入可以忽略不計，我們希望吸收其營運成本。

We are assuming the current macro trends continue, and this is reflected in our guidance. For Q2, we currently expect subscription revenue of $101 million to $102 million. Professional services revenue of $10.5 million to $11.5 million, total revenue of $111.5 million to $113.5 million. Non-GAAP operating income of $17.5 million to $19.5 million and non-GAAP net income per share of $0.09 to $0.1, assuming a weighted shares outstanding of approximately $149.4 million.

我們假設當前的宏觀趨勢持續下去，這也反映在我們的指導下。對於第二季度，我們目前預計訂閱收入為 1.01 億美元至 1.02 億美元。專業服務收入為 1,050 萬美元至 1,150 萬美元，總收入為 1.115 億美元至 1.135 億美元。假設加權流通股約 1.494 億美元，非 GAAP 營業收入為 1,750 萬美元至 1,950 萬美元，非 GAAP 每股淨利潤為 0.09 美元至 0.1 美元。

For the full fiscal year 2025, we are maintaining our top-line outlook and raising our non-GAAP operating income range while absorbing the operating expense impact of Togai. We currently expect subscription revenue of $410 million to $414 million, professional services revenue of $41 million to $45 million, total revenue of $451 million to $459 million.

對於 2025 年整個財年，我們將維持營收預期並提高非 GAAP 營業收入範圍，同時吸收 Togai 營業費用的影響。我們目前預計訂閱收入為 4.1 億至 4.14 億美元，專業服務收入為 4,100 萬至 4,500 萬美元，總收入為 4.51 億至 4.59 億美元。

Non-GAAP operating income of $80 million to $82 million and non-GAAP net income per share of $0.41 to $0.43, assuming a weighted average shares outstanding of approximately $151 million. For the fiscal year, we're maintaining our guidance for DBRR of 104% to 106% and ARR growth between 8% and 10%. However, we could slip slightly below the range in Q2 and Q3.

假設加權平均流通股約 1.51 億美元，非 GAAP 營業收入為 8,000 萬至 8,200 萬美元，非 GAAP 每股淨利為 0.41 至 0.43 美元。對於本財年，我們維持 DBRR 104% 至 106% 和 ARR 成長 8% 至 10% 的指導。然而，我們可能會略低於第二季和第三季的範圍。

You will continue to see us drive our bottom line leverage and maintain our goal of exiting fiscal 2025 at a Rule 30 run rate. As a reminder, we define the Rule of 30 as a sum of year-over-year subscription revenue growth, plus non-GAAP operating margin. We maintain our guidance of free cash flow to be $80 million or greater for the full year.

您將繼續看到我們提高獲利槓桿率，並維持以規則 30 運行率退出 2025 財年的目標。提醒一下，我們將 30 法則定義為訂閱收入年增率加上非 GAAP 營業利潤率總和。我們將全年自由現金流指引維持在 8,000 萬美元或以上。

We continue to expect annual share dilution of approximately 4% for fiscal '25. For this purpose dilution is calculated as the number of equity awards granted net of forfeitures during the fiscal year divided by the total shares outstanding at the end of the fiscal year.

我們繼續預期 25 財年的年度股權稀釋約為 4%。為此目的，稀釋度的計算方法為：本財年授予的股權獎勵扣除沒收後的淨額除以本財年末已發行股份總數。

We're committed to driving higher operating income and free cash flow. Acquisitions like Togai, will allow us to attract new customers and accelerate growth for usage-based models across our customer base. We've shown consistent progress in our ability to drive improvements in profitability and adjusted free cash flow as a market leader in a mission critical category.

我們致力於提高營業收入和自由現金流。像 Togai 這樣的收購將使我們能夠吸引新客戶並加速整個客戶群中基於使用的模型的成長。作為關鍵任務類別的市場領導者，我們在推動獲利能力提高和調整自由現金流方面取得了持續進展。

With that, Tien, Robbie and I will take your questions and I'll turn it over to the operator.

接下來，Tien、Robbie 和我將回答您的問題，然後將其轉交給接線員。

Thank you. We will now begin the question and answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Joshua Reilly, Needham.

約書亞賴利，尼達姆。

All right. Thanks for taking my questions and nice job on executing on the profitability goals here. In terms of the macro, can you help us understand what's the level of visibility you have right now into demand and has that changed over the last couple of quarters? And then along with that, as partners have to source more deals, I think you were kind of alluding to this in the script? Has there been any change in your overall visibility and to deal flow through partners?

好的。感謝您回答我的問題，並且在執行盈利目標方面做得很好。就宏觀而言，您能否幫助我們了解您目前對需求的了解程度以及在過去幾季中是否發生了變化？除此之外，由於合作夥伴必須尋找更多交易，我認為您在劇本中暗示了這一點？您的整體知名度和通過合作夥伴的交易流程是否有任何變化？

Yes, I'll jump in and Robbie, feel free to add any color. But we still have good visibility in the pipe. We still feel good about the pipe. There's still demand certainly for us shifting the subscription business models of what we really trying to highlight, though, especially when you look at new logos is companies are cautious about the large deals.

是的，我會加入，羅比，請隨意添加任何顏色。但我們在管道中仍然具有良好的能見度。我們仍然對管道感覺良好。不過，我們真正想要強調的是，我們仍然需要改變訂閱業務模式，特別是當你看到新商標時，公司對大額交易持謹慎態度。

And so you could define large in many different ways. But if we'll just say if these are seven digit deals, you're seeing companies continue to hesitate to pull the trigger on signing up a new vendor at that seven digit level. And so we're not seeing those deals necessarily go away, but will we continue to see companies cautious for those deals and certainly, if you compare where the business has been historically from a multiyear perspective, that does continue to be a drag.

因此，您可以透過多種不同的方式來定義“大”。但如果我們只說這些是七位數的交易，你會發現公司仍然猶豫是否要在七位數的水平上簽約新的供應商。因此，我們並不認為這些交易一定會消失，但我們是否會繼續看到公司對這些交易持謹慎態度，當然，如果你從多年的角度比較該業務的歷史情況，這確實會繼續成為一個拖累。

Yeah, I think, I change to your point, but there are a key part of our strategy. And you know, we have a very partner first focus. The other thingis, in the same way, we closed Toast, as a deal. For example, in the previous Q4, last quarter we closed an equally sized opportunity game going from revenue, and it was co-sold with a partner. So we do see continued traction there.

是的，我想，我改變你的觀點，但我們的策略中有一個關鍵部分。你知道，我們非常注重合作夥伴第一。另一件事是，以同樣的方式，我們關閉了 Toast，作為交易。例如，在上個第四季度，上個季度我們從收入中關閉了一個同等規模的機會遊戲，並與合作夥伴共同出售。所以我們確實看到了那裡的持續吸引力。

Yes. Maybe just to bridge the two comments there, given that what we have done recently is to bring partners more into our install base. So you're seeing as we focus on driving short term growth from expanding our installed base. The good news is we've got a solid enterprise customer base that has expansion opportunities. And we found some good success working with our partners in our installed base where perhaps no two, three years ago, the focus there has been primarily around new logos.

是的。也許只是為了彌合這兩個評論，因為我們最近所做的就是讓合作夥伴更多地進入我們的安裝基礎。因此，您會看到，我們專注於透過擴大安裝基礎來推動短期成長。好消息是我們擁有堅實的企業客戶群，並且有擴展機會。我們發現與我們的合作夥伴在我們的安裝基礎上取得了一些良好的成功，也許在兩三年前，那裡的重點主要集中在新標誌上。

Got it. That's helpful. And then just on that on the sequential change in the customers above 250,000 being down [10] quarter over quarter, can you just give us a sense for is this should we expect this to continue to decrease throughout the course of the year? And how are you thinking about the importance of this metric, I guess, relative to historical?

知道了。這很有幫助。然後，關於 250,000 以上的客戶數量環比下降 [10] 的連續變化，您能否讓我們了解一下，我們是否應該期望這一數字在全年中繼續下降？我想，您如何看待這個指標相對於歷史指標的重要性？

Hey, Josh, this is Todd. So thanks for asking the question. Couple of pieces of color that I think are really important to pick out. So I'm glad you asked about it. We did have a small group of customers that in this current in the call excuse me -- we had occurred we had a group of customers in this cohort, small group that had some challenges and we've had to meet them where they are.

嘿，喬什，這是托德。謝謝你提出這個問題。我認為挑選一些非常重要的顏色。所以我很高興你問這個問題。我們確實有一小群客戶，在這通電話中，對不起——我們碰巧在這群客戶中，有一小群客戶遇到了一些挑戰，我們必須在他們所在的地方與他們會面。

And that was the primary reason that we saw a decrease in that. We might see a few more next quarter happening. But the one thing that we really need to tease out of this metric that I don't think that you're seeing is, if you look at the ACV growth of our cohort of customers over 250,000 year over year, that is growing by more than 10% and that's really important because that's one of the things that we said.

這是我們看到這一數字下降的主要原因。下個季度我們可能會看到更多的情況發生。但我們真正需要從這個指標中梳理出來的一件事是，如果你看看我們超過 250,000 名客戶群的 ACV 逐年增長，你會發現這一數字正在以更多的速度增長。非常重要，因為這是我們所說的事情之一。

We want to land with the right customers after we land with them that we have the ability to expand. And that's exactly what we're doing with focusing on the best customers that we can really maximize the revenue potential out of them over the lifetime.

我們希望在找到合適的客戶後，再找到我們有能力擴張的客戶。這正是我們正在做的，專注於最好的客戶，我們可以真正最大化他們在生命週期中的收入潛力。

And philosophically just add to that. When you look at look, it is a company that certainly, needs at down-sell and we're looking at this 250,000 limit. Our goal has to be to hold onto it as a longer-term customer, right? We've shown again and again, that when we hold onto customers for long periods of time, we're able to grow the account. So we're going to be smart about these things. But exactly what Todd said, if you look at the whole group as a cohort, they are expanding.

從哲學上來說，只是補充一點。當你觀察一下時，你會發現這家公司確實需要降價銷售，而我們正在考慮 250,000 的限制。我們的目標必須是作為長期客戶保留它，對嗎？我們一次又一次證明，當我們長期留住客戶時，我們就能增加客戶數量。所以我們要聰明地對待這些事。但正如托德所說，如果你將整個群體視為一個群體，你會發現他們正在擴張。

And the other thing I'd add to Josh's. You know, our gross retention rate remains very consistent. It just proves the stickiness, and that is the mission critical product that our customers are reliant on.

我想把另一件事加到喬許的身上。您知道，我們的總保留率仍然非常穩定。它只是證明了黏性，而這正是我們的客戶所依賴的關鍵任務產品。

Very helpful. Thanks, guys.

很有幫助。多謝你們。

Thanks, Josh.

謝謝，喬許。

Adam Hotchkiss, Goldman Sachs.

亞當·霍奇基斯，高盛。

Great. Thanks for taking the questions. I guess to start would be great to get an update on the business churn, of some of the churn you mentioned last quarter. I know you mentioned to -- and also on the flip side of that, some multiyear renewals happening this quarter.

偉大的。感謝您提出問題。我想先了解您上季度提到的一些業務流失的最新情況會很好。我知道您提到過，另一方面，本季發生了一些多年續約。

So when reviewing some of your larger contracts and maybe some of your anticipated renewals for the rest of the year, what gives you confidence in the maintenance of DBRR and some of the other retention metrics versus where we are now?

因此，在審查您的一些較大合約以及今年剩餘時間的一些預期續約合約時，與我們現在的情況相比，是什麼讓您對維持 DBRR 和其他一些保留指標充滿信心？

Well, the number one thing is it's a sticky product and when we can certainly see the value that customers are putting through the system. We know how much they contracted for. We have a sense of like are these companies doing? Why are they growing? Are they declining usually for these subscription businesses, very few subscription businesses are actually shrinking.

嗯，最重要的是它是一個有黏性的產品，我們當然可以看到客戶透過該系統所帶來的價值。我們知道他們的合約金額是多少。我們有種感覺，這些公司在做什麼？他們為什麼在成長？這些訂閱業務通常會下降嗎？

So just not growing as fast as they might have been in previous years. And so that gives us a good strong set of visibility into how the base should be performing for call it the next four quarters.

所以只是沒有像前幾年那樣成長得那麼快。因此，這讓我們對基地在未來四個季度的表現有一個很好的了解。

What I would just kind of reemphasize here, Adam, is there was no real change. The expected churn that we talked about at the end of last year is what occurred. We had a few customers that need to do some rightsizing based on the economics, gross retention remains really consistent and we are comfortable with the 104% to 106% range for the full year.

亞當，我想在這裡再次強調的是，沒有真正的改變。我們在去年年底談到的預期流失已經發生了。我們有一些客戶需要根據經濟狀況進行一些規模調整，總保留率仍然保持一致，我們對全年 104% 到 106% 的範圍感到滿意。

I'll reiterate -- that's one of the what I believe is the strength of our business is the stickiness and the quality of our installed base.

我要重申的是，我認為我們業務的優勢之一是我們的客戶群的黏性和品質。

Got it. That's really helpful. Thanks. And then we've heard a lot from partners and businesses about the fairly rapid shift. A lot of companies are making towards consumption going. I'd be curious if you could give us a sense from where we are there maybe versus a year ago on demand? And then what you've seen some of your larger billing competitors that maybe didn't play in the subscription space as noiche. Do if at all, to address total monetization?

知道了。這真的很有幫助。謝謝。然後我們從合作夥伴和企業那裡聽到了很多關於相當快速的轉變的信息。許多公司正在朝著消費方向發展。我很好奇您能否讓我們了解一下我們現在的情況與一年前的點播情況相比？然後，您所看到的一些較大的計費競爭對手可能並沒有在訂閱領域發揮作用。如果有的話，要解決總貨幣化問題嗎？

Well, what we're so excited about this total monetization phrase is just to remind folks that, hey, your consumption is certainly on the upswing. But when you look from a long period of time, especially if you look at more mature industries like the telecom industry, you're going to always see a collection or a hybrid set of differently, the pricing, prepaid models, postpaid models, consumption, arrears and advance all sorts of things.

好吧，我們對這個總貨幣化短語如此興奮只是為了提醒人們，嘿，你的消費肯定會上升。但是，當你從很長一段時間內觀察時，特別是如果你觀察像電信行業這樣的更成熟的行業，你總是會看到不同的集合或混合集，定價，預付費模式，後付費模式，消費、欠款和預付款各種事情。

And so look, we're excited really about the part of the capabilities that we have we talked about how our advanced consumption model has done over 50 customers have signed up or what are the big drivers that Robbie talked about made a big call center application company that said was the Zuora revenue customer, they sign-up resource, billing, that was also driven by the need to do consumption usage base.

所以看，我們對我們擁有的部分功能感到非常興奮，我們談到了我們的先進消費模式如何讓 50 多個客戶註冊，或者 Robbie 談到的推動大型呼叫中心應用程序的主要驅動因素是什麼該公司表示是Zuora 的收入客戶，他們註冊資源、計費，這也是受到消費使用基礎需求的驅動。

If you look at consumption-based models and you look at the call center market because of a AI, one of the big areas where you see you're seeing consumption models explode, and we're certainly a beneficiary of that and of course.

如果你看看基於消費的模型，並因為人工智慧而看看呼叫中心市場，你會看到消費模型爆炸式增長的大領域之一，我們當然是受益者。

The last thing was the Togai acquisition, when you look at these consumption models, we do a great job on that billing, the rating capabilities more and more we're seeing developers. Hey, how do we even grab data from our systems put into place that can be metered, can be rated where the salespeople can see it, The customers can see it.

最後一件事是 Togai 收購，當你看到這些消費模式時，我們在計費、評級功能方面做得很好，我們看到開發人員越來越多。嘿，我們如何從我們部署的系統中獲取數據，這些數據可以在銷售人員可以看到的地方進行計量，可以進行評級，客戶可以看到它。

And you know, that turns out to be a big, big, challenging space. TogaI had a fantastic solution for us, and we're pretty excited about adding, you know, that company that capability in that new collection of great folks into our organization.

你知道，這是一個很大、很大、充滿挑戰的空間。TogaI 為我們提供了一個出色的解決方案，我們非常高興能夠將這家公司在新的優秀人員集合中的能力添加到我們的組織中。

Okay. That's great to hear. Thanks, Tien. Thanks, Todd.

好的。聽到這個消息我很高興。謝謝，田。謝謝，托德。

Joseph Vafi, Canaccord.

約瑟夫·瓦菲，Canaccord。

Hey, guys, good afternoon and nice to see continued growth in the user base and saw some new logos here. One on Togai, I know you mentioned that current revenue there is kind of de minimus. Just wanted to drill down a little bit into how ready for prime time the solution set is given that they really didn't have much revenue yet. Is it ready to sell and become part of your cross-sell efforts in the base now Or is there some more R&D that needs to be done before you roll it out now. I have a quick follow-up. Thanks.

嘿，夥計們，下午好，很高興看到用戶群的持續增長，並在這裡看到了一些新徽標。關於 Togai，我知道您提到目前的收入有點微不足道。只是想深入了解解決方案集在黃金時段的準備情況，因為他們確實還沒有太多收入。現在它是否已準備好出售並成為您在基地的交叉銷售工作的一部分，或者在您現在推出它之前是否需要完成更多的研發工作。我有一個快速跟進。謝謝。

Yes, look, this is a great cause the usage metering, usage capture metering rating. It's a fairly new space, you really see two types of companies. You're really seeing young startups that are call it under two years old, and you're seeing maybe companies that could come out of the telecom sector that are 20, 30 years old that they really have more dated old technology. We looked at them all and -- I got to say we were most excited about the technology that this group of folks have built.

是的，看，這是使用計量、使用捕獲計量評級的一個重要原因。這是一個相當新的領域，你確實看到了兩種類型的公司。你確實看到了不到兩年的年輕新創公司，你也看到了可能來自電信業的、已有 20、30 年歷史的公司，他們確實擁有更過時的舊技術。我們研究了所有這些——我不得不說，我們對這群人開發的技術感到非常興奮。

If you dig into their background, their successful entrepreneurs, they've built successful companies in the past, but we think it's a great product. We think it is ready for prime time. Obviously, we're going to take a couple of weeks not quarters to do some integration of the products together. But we've been already you're obviously showing this to our customer base and getting a lot of good positive response.

如果你深入研究他們的背景，他們成功的企業家，他們過去已經建立了成功的公司，但我們認為這是一個很棒的產品。我們認為它已經為黃金時段做好了準備。顯然，我們將花費幾週而不是幾個季度的時間來對產品進行一些整合。但我們已經明顯地向我們的客戶群展示了這一點，並得到了很多很好的正面回應。

Yes. Okay, that's helpful. Thanks, Tien. And then I know the large deal activity slowed down but I think you did sign two in the quarter. Anything to note there on kind of why those customers are moving forward, I guess a critical need or maybe now changes in their operating environment, require that or whatever you want to add on that? Thanks.

是的。好的，這很有幫助。謝謝，田。然後我知道大宗交易活動放緩，但我認為您在本季度簽署了兩筆交易。關於這些客戶為何向前發展，我想有什麼需要注意的，我猜是一個關鍵需求，或者現在他們的營運環境發生了變化，有什麼需要或您想添加的任何內容嗎？謝謝。

Yes, I'll let Todd, add some color. But I do want to stress that we are still seeing big deals for we're seeing big deals is in our customer base, and that really speaks to the quality, durability and expansion potential that we have in our customer base. And again, I still really do believe that that is the strength of the business. What we're seeing, though, is when a company is signing on a new vendor, they're going to be a little bit of a cautious stance in that area?

是的，我會讓托德添加一些顏色。但我確實想強調，我們仍然看到大筆交易，因為我們看到大筆交易發生在我們的客戶群中，這確實說明了我們在客戶群中擁有的品質、耐用性和擴展潛力。再說一遍，我仍然相信這就是該業務的優勢。不過，我們看到的是，當一家公司與新供應商簽約時，他們會在該領域採取謹慎的立場嗎？

Yes. I mean, adding on to what Tien said, Joe, is both of these were installed base customers and it really plays to the strength of the Zuora product, one of them we're able to monetize as they continue to grow and take advantage of that. And the other one takes advantage of our having a multi-product portfolio. So they started with Zuora revenue. Now we're moving them to Zuora Billing and in fact, that billing is a takeaway from a large competitor.

是的。我的意思是，補充一下Tien 所說的，Joe，這兩個都是已安裝的客戶，它確實發揮了Zuora 產品的優勢，隨著他們的不斷發展和利用，我們能夠將其中之一貨幣化。另一個利用了我們擁有多產品組合的優勢。所以他們從 Zuora 的收入開始。現在我們正在將它們轉移到 Zuora Billing，事實上，該計費方式是從大型競爭對手那裡學到的。

Great. Nice, win on that takeaway. Thanks for the color, guys. Much appreciate.

偉大的。很好，贏得了外賣。謝謝你們的顏色。非常感謝。

Thanks, Joe.

謝謝，喬。

Brent Thill, Jefferies.

布倫特·希爾，杰弗里斯。

Hi, this is Luv Sodha, here for Brent Thill. Thank you, Tien and Todd, for taking my questions and Robbie as well. Maybe the first one on the ARR growth. So the sequential change in ARR was it declined pretty meaningfully this quarter. I guess could you help us parse out and how much of the impact was from the churn versus macro and what gives you confidence that this could rebound in the second half of the year?

大家好，我是 Luv Sodha，我是布倫特希爾 (Brent Thill)。謝謝田和陶德回答我的問題，也謝謝羅比。也許是關於 ARR 成長的第一個。因此，ARR 的連續變動是本季大幅下降。我想您能否幫助我們分析一下，客戶流失與宏觀因素的影響有多大？

Well, thanks for the question. So I might tease this out into three parts. One is our expansion; he second is our new logo; and the third is our churn. And so on expansion, we felt we did really well there. We did pretty much as expected, and it really speaks to the quality of our customer install base. On the new logos, maybe a little bit of a slower start.

嗯，謝謝你的提問。所以我可能會將其分成三個部分。一是我們的擴張；第二個是我們的新標誌；第三是我們的流失。在擴張方面，我們覺得我們做得非常好。我們的表現幾乎符合預期，這確實說明了我們客戶安裝基礎的品質。在新標誌上，啟動速度可能會慢一些。

But we always know that Q1 is our lightest quarter and we're seeing nice acceleration of the pipeline, and that's certainly one of the things that gives us confidence for reaching the range for the whole year.

但我們始終知道，第一季是我們最輕的季度，我們看到管道的加速加速，這無疑是讓我們有信心達到全年目標的原因之一。

And finally, the churn is what we talked about one-time events. We talked about that last quarter and that played out as expected. So look, it's a challenging macroenvironment. But if I look at the quality of especially of our install base, which I think is going to drive an awful lot of our bookings this year. I look at our product, the pipeline with happened. What's happening with Togai. We believe we've got material that we need to exit the year at 8% to 10% ARR growth.

最後，流失是我們談論的一次性事件。我們上個季度討論過這個問題，結果正如預期的那樣。所以看，這是一個充滿挑戰的宏觀環境。但如果我看看我們的安裝基礎的質量，我認為這將推動我們今年大量的預訂。我看看我們的產品，管道發生了。東貝發生了什麼事。我們相信，我們已經掌握了以 8% 至 10% 的 ARR 成長率結束這一年所需的材料。

Got it. That's super helpful. And then just wanted to ask a quick follow-up on the efficiency initiatives that you have put in place. Could you just talk to us about what stage of the innings are we in terms of driving those efficiency initiatives? And is there more room in terms of pushing the inbound motion to deliver further profitability as the year goes on? Thank you.

知道了。這非常有幫助。然後只是想詢問您已實施的效率措施的快速跟進情況。您能否跟我們談談我們在推動這些效率措施方面處於哪個階段？隨著時間的推移，在推動入境動議以實現進一步盈利方面是否還有更大的空間？謝謝。

So thanks a lot for that question also. I feel really good. We have a lot of hard work on the cost structure we have in place a very robust business. And frankly, we've got the capacity to deliver a lot more revenue without adding a whole lot of incremental costs. So that gives me a lot of confidence on being able to meet our profit objectives.

所以也非常感謝你提出這個問題。我感覺真的很好。我們在成本結構方面做了很多艱苦的工作，我們已經建立了非常強大的業務。坦白說，我們有能力在不增加大量增量成本的情況下提供更多收入。因此，這讓我對實現我們的利潤目標充滿信心。

In fact, you saw you're not absorbing all of the total cost, but I raised the midpoint of where our guidance is for profitability for the year, and we're never going to be done. We're constantly taking a look at the where we are in the business where we can sit there and get incremental improvements and we're working on that. I think you'd be noticed. For example, we actually, in absolute dollars are down about 10% in our go-to-market spend. So we feel like there's still more room to continue to optimize and get more efficient. And we've also got the capacity to deliver a lot more revenue with the current structure we have in place.

事實上，你看到你並沒有吸收所有的總成本，但我提高了我們今年盈利指導的中點，我們永遠不會完成。我們不斷地審視我們在業務中所處的位置，我們可以坐在那裡並獲得漸進式的改進，我們正在努力做到這一點。我想你會被注意到的。例如，實際上，以絕對美元計算，我們的市場支出下降了約 10%。所以我們覺得還有更多的空間可以繼續優化並提高效率。而且我們還有能力利用現有的現有結構提供更多收入。

Yes. I mean, just in case I'll ask maybe to the flip side of the question, which I think is might be what you're asking. I'll give you a stat. I think we're generating more pipeline with fewer people than we did two quarters ago because we're just getting that much more efficient in smarter about it.

是的。我的意思是，以防萬一我會問問題的另一面，我認為這可能是你要問的。我給你一個統計數字。我認為，與兩個季度前相比，我們用更少的人員創造了更多的管道，因為我們在更聰明的方面變得更有效率。

Got it, Perfect. Thank you.

明白了，完美。謝謝。

Jacob Stephan, Lake Street.

雅各史蒂芬，湖街。

Hey, guys, thanks for taking my questions here. Tien, I wanted to get some clarity. I think you made a comment about switching to kind of a new sort of lead gen strategy. I just want to get any color that you have on that.

嘿，夥計們，感謝您在這裡提出我的問題。田，我想弄清楚一些。我認為您對轉向一種新型的潛在客戶開發策略發表了評論。我只是想得到你所擁有的任何顏色。

Yes. So, I would say, it's an evolution, not an entire change. But if you talk to other companies in the industry, other SaaS companies, certainly it feels like it up at a higher level, right, an industry level outbound cold calling through business development reps is not paying off as well as it might have been, two, three, four years ago.

是的。所以，我想說，這是一種演變，而不是徹底的改變。但是，如果你與行業中的其他公司、其他 SaaS 公司交談，肯定會感覺它處於更高的水平，對吧，透過業務開發代表進行的行業級外撥電話並沒有得到應有的回報，兩年、三年、四年前。

And if you look at our value prop where we we certainly are the leading evangelist of the subscription economy, but you're seeing people really come to us for different needs. You can see here we have a need now to service a controller. We can service AR team, we can service a developer. And so we are switching more towards a classic inbound model.

如果你看看我們的價值支柱，我們當然是訂閱經濟的主要傳播者，但你會看到人們確實是為了不同的需求而來到我們這裡。您可以在這裡看到我們現在需要服務控制器。我們可以為 AR 團隊提供服務，我們可以為開發人員提供服務。因此，我們更轉向經典的入站模式。

And we're finding that to be much more efficient and we're using more digital technologies versus human labor. And, as you might suspect, AI tools are certainly a big, big part of that as well. So we're just learning to be much more efficient in the current environment and how to generate pipeline, and we think it's paying dividends.

我們發現這樣做的效率要高得多，而且我們使用更多的數位技術而不是人力。而且，正如您可能懷疑的那樣，人工智慧工具肯定也是其中很大一部分。因此，我們只是學習在當前環境下提高效率以及如何產生管道，我們認為它正在帶來紅利。

Okay. Yeah, understood. That's helpful. And maybe just kind of the free cash flow question here. You guys kept guidance at $80 million-plus you did 40% of that in Q1. Here you guided up on adjusted operating income, and you've also got a pretty sizable war chest on the balance sheet. So I mean, what are the capital allocation plans look like here in the future?

好的。是的，明白了。這很有幫助。也許這只是自由現金流問題。你們將指導方針維持在 8000 萬美元，而且第一季完成了其中的 40%。在這裡，您調整了營業收入，資產負債表上還有相當大的資金。所以我的意思是，未來的資本配置計畫是什麼樣的？

Yes. So thanks a lot for the question. So Q4, remember, we have a tremendous amount of billings as a lot of enterprise SaaS companies do so that drives a lot of our collection activity happens in the first quarter. So you always see a very strong Q1 that will normalize back to normal trends as we move through the year. So we're really comfortable about where the $80 million-plus is, so we're going to keep that where it is

是的。非常感謝您的提問。因此，請記住，第四季度我們有大量的帳單，就像許多企業 SaaS 公司所做的那樣，這推動了我們在第一季發生的大量收款活動。因此，你總是會看到非常強勁的第一季度，隨著一年的推移，該季度將恢復正常趨勢。因此，我們對 8000 萬美元以上的金額感到非常滿意，因此我們將保持原樣

We're also absorbing the Togai. We would expect to see from a capital allocation perspective, similar probably, let's say, $3 million a quarter of CapEx as we go through the rest of the year. And then obviously you're right, we've got a very nice balance sheet and we'll continue to use that where it makes sense for acquisitions. Tuck-ins like with Togai that will help us accelerate our growth and accelerate our product roadmap.

我們也在吸收東貝。從資本配置的角度來看，我們預計在今年剩餘時間裡，每季的資本支出可能會達到 300 萬美元。顯然你是對的，我們有一個非常好的資產負債表，我們將繼續在對收購有意義的地方使用它。像 Togai 這樣的整合將幫助我們加速成長並加速我們的產品路線圖。

I think that's exactly right. I think the growth in free cash flow and the war chest, as you put it, are two big highlights to our story.

我認為這是完全正確的。我認為自由現金流的成長和戰爭基金，正如你所說，是我們故事的兩大亮點。

A great time to have a lot of cash.

擁有大量現金的好時機。

Yes, yes, absolutely. Okay. That's helpful. And maybe just one more here. Todd, you kind of mentioned Q2 and Q3 on ARR growth might fall slightly below kind of that 8% to 10% range. But just for clarification that the 8% to 10% will be exiting the year of, I guess what kind of gives you confidence in the ramp up in Q4?

是的，是的，絕對是的。好的。這很有幫助。也許這裡還有一個。Todd，您提到第二季和第三季的 ARR 成長可能會略低於 8% 到 10% 的範圍。但我想澄清一下，8% 到 10% 的成長將在今年結束，我想是什麼讓您對第四季的成長充滿信心？

Yes. So we expect to exit the year the 8% to 10%. And as I said, what gives me confidence is extremely strong install base, what we're seeing from the needs from our customers, how we're seeing the pipeline develop. And so when I look at our pipeline development product install base customers that gives us the confidence that we'll be able to exit the year at the 8% to 10% ARR growth.

是的。所以我們預計今年退出8%到10%。正如我所說，給我信心的是極其強大的安裝基礎，我們從客戶的需求中看到的，以及我們如何看到管道的發展。因此，當我查看我們的管道開發產品安裝基礎客戶時，這讓我們有信心以 8% 至 10% 的 ARR 成長率結束這一年。

Including having a new meaningful product in our portfolio at servicing this consumption building demand, that certainly we're all seeing the marketplace.

包括在我們的產品組合中推出一種新的有意義的產品來滿足這種消費成長的需求，我們當然都看到了市場。

Okay. Got it. That's helpful. Thanks, guys.

好的。知道了。這很有幫助。多謝你們。

That concludes our Q&A session. I will now turn the conference back over to Tien Tzuo, for closing remarks.

我們的問答環節到此結束。現在我將把會議轉回田佐作閉幕詞。

Thank you, everyone, for joining us today. I want to offer up a big thank you to all our CEO's, including the new CEO that have joined us from Togai. Our CEO's commitment really is what powers our future in this new era of total monetization. Thank you all very much.

謝謝大家今天加入我們。我要向我們所有的執行長表示衷心的感謝，包括從東外加入我們的新執行長。我們執行長的承諾確實為我們在這個全面貨幣化的新時代的未來提供了動力。非常感謝大家。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。