Core Viewpoint - The company has implemented a new policy allowing all research and development employees to work from home on Wednesdays and Fridays without needing approval from their direct supervisors, aiming to enhance work-life balance and foster a culture of trust and self-motivation [1] Group 1 - The new policy is a pilot initiative for the research and development team, following a previous hybrid work policy that had 70% employee participation [1] - The company aims to simplify processes to increase employee flexibility and autonomy [1]

Core Insights - Ctrip has announced a new hybrid work policy that will eliminate the need for direct supervisor approval for remote work applications starting September 1, 2025 [1] - The pilot program will apply to all full-time technical (T-series) and product technical (PT-series) employees in China [1] - This change is seen as a significant move towards building a culture of trust and employee autonomy within the company [1] Summary by Sections - **Policy Change**: Ctrip will allow eligible employees to submit remote work applications without supervisor approval, with notifications sent to supervisors instead [1] - **Participation and Impact**: Since the introduction of the hybrid work policy in 2022, 70% of employees have participated, resulting in approximately 640,000 remote work instances [1] - **Cultural Shift**: The primary goal of this policy adjustment is to enhance work-life balance (WLB) and foster a culture based on trust and self-motivation among employees [1]

Financial Data and Key Metrics Changes - The company reported a 7% revenue growth in Q1, with adjusted earnings per share of $0.20, up 25% year-over-year [6][16] - Adjusted operating margin for Q1 was 5%, an increase of 110 basis points compared to the previous year, driven by The Americas which posted a 6.7% margin [6][17] - Gross margin continued to expand for the twelfth consecutive quarter, with a 170 basis points improvement in Q1 [13] Business Line Data and Key Metrics Changes - In The Americas, orders from large corporate customers grew, while there was a less than 1% decline in total orders compared to the prior year [6][19] - The international segment experienced a 1% organic revenue decline, with growth in India, the UK, and China offset by declines in Germany and France [17][20] - Orders in The Americas were split with one-third coming from education and government sectors, and two-thirds from large corporate and other vertical markets [25][26] Market Data and Key Metrics Changes - The Americas saw strong order growth from large technology customers, while education and government sectors faced declines due to changes in federal funding policies [7][12] - Internationally, growth was hindered by macroeconomic challenges in Germany and France, impacting small to mid-sized businesses [20] Company Strategy and Development Direction - The company is focused on leading the transformation of the workplace, particularly for large corporate customers [8][11] - Strategic pillars include expanding market reach, supporting education amidst funding uncertainties, and strengthening profitability through cost reduction efforts [12][13] - The company is prioritizing investments in strategic growth initiatives while navigating tariff and trade policy uncertainties [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in large corporate customer investments, despite macroeconomic challenges [23][60] - The company anticipates continued strength in large corporate demand, driven by the need for workplace transformation [41][62] - Future guidance includes expectations for mid-single-digit organic revenue growth and expanded adjusted operating margins [32][33] Other Important Information - The company incurred $9 million in restructuring costs related to the exit of approximately 85 salaried employees [18] - Cash flow from operating activities showed a use of $141 million, primarily due to seasonal disbursements [19] Q&A Session Summary Question: Impact of education sector on orders - Management indicated that about one-third of orders in Q1 came from education and government, with the remaining two-thirds from corporate and other sectors [25][26] Question: Future order patterns in education - Education orders are expected to remain significant early in Q2 but will have less impact in the latter half of the year [27] Question: Pricing strategies and demand pull forward - A tariff recovery charge was implemented, leading to a pull forward of orders, but no significant orders were pulled from Q2 into Q1 [28][30] Question: Full year guidance and momentum - Management remains optimistic about mid-single-digit organic revenue growth, despite challenges in the education sector and international markets [31][32] Question: Profitability of international segment - The company is targeting consistent profitability in the international segment, with ongoing restructuring efforts [37] Question: Resilience of large corporate demand - Management noted that large corporate clients are investing in workplace transformation, reflecting a shift in work dynamics [40][62] Question: Conference room demand and future opportunities - There is significant opportunity to update the installed base of conference rooms, which have not kept pace with current technologies [48][49] Question: Gross margin expectations for Q2 - Guidance for Q2 gross margin is lower due to tariff impacts and expected declines in the education sector [50][51] Question: Future pricing increases - The company will continue to manage inflation through pricing increases if necessary, following historical patterns [56]