Kaltura (KLTR) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Speaker0 Good morning, everyone, and welcome to the Kaltura First Quarter twenty twenty five Earnings Call. All material contained in the webcast is the sole property and copyright of Kaltura with all rights reserved. For opening remarks and introductions, I will now turn the call over to Ericka Mannion at Sapphire Investor Relations. Please go ahead, Ericka. Thank you, operator, and good morning. I am joined by Ron Yucatiel, Kaltura's Co Founder ...

Financial Data and Key Metrics Changes - In the first quarter, net revenues were RMB 1,450 million, with media services revenues at RMB 242 million, lead generation services revenues at RMB 645 million, and online marketplace revenues at RMB 566 million, reflecting a 2% year-over-year increase [19] - Cost of revenue was RMB 316 million, with a gross margin of 78.3%, down from 81.3% in the same period last year [19] - Operating profit was RMB 233 million, compared to RMB 276 million for the same period last year, and adjusted net income attributable to Autohome was RMB 421 million, down from RMB 494 million year-over-year [20] - Non-GAAP basic and diluted earnings per share were both 0.88, compared to 1.02 in the corresponding period of 2024 [20] - As of March 31, 2025, cash, cash equivalents, and short-term investments totaled RMB 21,930 million [20] Business Line Data and Key Metrics Changes - Revenues from new energy vehicles (NEVs) and the new retail business increased by 72.6% year-over-year [14] - Revenues from data products increased by over 5% year-over-year [16] - The average mobile daily active users (DAUs) reached 76.92 million in March 2025, up 10.8% from the same period last year [13] Market Data and Key Metrics Changes - Overall new car sales grew by 6% year-on-year in Q1, with NEV sales increasing by 36% year-on-year, although this growth rate has slowed compared to previous periods [25][28] - Internal combustion engine (ICE) vehicle sales declined by 12% year-on-year [25] - The average profit margin of China's auto industry was only 3.9%, significantly lower than the 5.6% average for downstream industrial enterprises [26] Company Strategy and Development Direction - The company is focused on enhancing user experience and expanding its new retail network, with plans to exceed 500 locations by the end of 2025 [30][32] - Autohome aims to transform from a pure automotive media vertical into a comprehensive auto lifestyle ecosystem, enhancing the global automotive consumer ownership experience [18] - The company is actively exploring new emerging sectors and building a fully integrated online-to-offline ecosystem for services [10] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing structural adjustments in the market, with NEVs becoming the main growth driver and continued policy support leading to steady, modest growth [28] - The company is committed to improving user experience through intelligent professional tools and expanding its new retail network to address user pain points [29] - Management expects the price war in the auto industry to continue in the short run but believes that the room for further price decline is limited [40] Other Important Information - The company has authorized a new share repurchase program of up to USD 200 million, with approximately USD 128 million already executed as of May 2025 [21] - The company plans to maintain a consistent and stable shareholder return, with a dividend payout of no less than RMB 1.5 billion for the year [49] Q&A Session Summary Question: What is the implication of the auto industry's performance in Q1 for Autohome and the outlook for 2025? - Management noted that while new car sales grew, NEVs stood out with a growth rate of 36%, although slower than previous periods. They expect ongoing structural adjustments with NEVs as the main growth driver and continued policy support [24][28] Question: What is the progress on the new retail model and future plans? - Management reported the establishment of 29 space stores and 170 franchise satellite stores, with plans to exceed 500 locations by the end of 2025, focusing on lower-tier markets [30][32] Question: What is the status of the Harris acquisition and its impact on Autohome's strategy? - The acquisition is still pending regulatory approval, and management emphasized a commitment to the online-to-offline new retail model and the development of new energy vehicles [38] Question: When will OEM pricing stabilize, and what is the impact of dealership bankruptcies on lead generation? - Management believes the price war will continue in the short run but expects stabilization after inventory clearance and the end of subsidy policy transitions. They noted that dealers face challenges in transforming their business models [40][42] Question: How does management view the impact of trade tensions on the car market? - Management acknowledged some impact from trade tensions but emphasized that the domestic market is largely driven by NEVs, limiting the overall effect on Autohome's business [54][55]

Financial Data and Key Metrics Changes - The company's Q1 2025 revenue was $198.5 million, down from $214 million in Q1 2024, attributed to asset sales and lower office occupancy [29] - FFO excluding specified items was $12.9 million or $0.09 per diluted share, compared to $24.2 million or $0.17 per diluted share a year ago [29][30] - Same store cash NOI decreased to $93.2 million from $103.4 million year over year, primarily due to lower office occupancy [30] Business Line Data and Key Metrics Changes - The company signed 630,000 square feet of new and renewal leases in Q1 2025, the highest quarterly leasing activity since Q2 2022 [17] - GAAP rents increased by 4.8%, while cash rents decreased by 13.6% [17] - The leasing pipeline increased by 5% to 2.1 million square feet, with 716,000 square feet in late-stage deals [21] Market Data and Key Metrics Changes - San Francisco's office leasing activity saw a significant increase, with gross leasing just under 3 million square feet in Q1 2025 [9] - Downtown Seattle experienced a 15% increase in gross leasing, despite a 90 basis point increase in direct vacancy [10] - The Bay Area received nearly 70% of U.S. venture funding, totaling $59 billion, marking a fourfold year-over-year increase [7] Company Strategy and Development Direction - The company is focusing on maximizing flexibility and occupancy while monitoring tariff impacts on core industries [6] - There is a strategic reevaluation of adaptive reuse of office assets due to new financial and zoning incentives for residential conversions [10] - The company is actively pursuing non-strategic asset sales to generate liquidity and reduce leverage, with $97 million generated from recent sales [15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about improving market fundamentals and the potential positive impact of federal investments in AI [6][7] - The company expects occupancy to stabilize and grow starting in Q3 2025, with only 225,000 square feet expiring on average each quarter thereafter [22] - Management anticipates FFO per diluted share for Q2 2025 to range from $0.03 to $0.07, reflecting lower office NOI and higher interest expenses [33] Other Important Information - The company completed a CMBS financing for $475 million, using proceeds to repay a $168 million loan and for general corporate purposes [30] - The company is in discussions for potential long-term tenants for the Sunset Pier 94 Studios, expected to deliver by year-end [26] - The company has made significant progress in cost-cutting initiatives, achieving a total run rate savings of $14.2 million annually [25] Q&A Session Summary Question: Comments on cash rent spreads and concessions trends - Management indicated that cash rent spreads were in line with expectations, with net effective rents holding up well compared to pre-pandemic levels [36][38] Question: Impact of tariffs on the studio business - Management noted no significant impact from tariffs on tenant interest and highlighted potential federal support for the studio industry [42][43] Question: Paydown of private placement notes - Management confirmed the use of the revolver to pay down Series B notes, with plans to extend the revolver beyond 2026 [46][48] Question: Guidance on asset sales - Management stated that the guidance of $125 million to $150 million in asset sales is conservative and reflects non-core assets [49][50] Question: Expectations for occupancy and leasing pipeline - Management expects occupancy to improve starting in Q3 2025, with a strong leasing pipeline and increased tour activity [62][64] Question: Debt covenants and NOI to interest expense coverage - Management confirmed compliance with covenants and expects to maintain coverage despite fluctuations [85][86] Question: Production leads on the studio side - Management mentioned two executed production leads, both involving two stages with support space, indicating a positive trend in longer-term leases [92]

Financial Data and Key Metrics Changes - NAV decreased by $336 million from Q4 2024, primarily due to negative performance in funds and accrual for distribution, partially offset by increases in CVI and auto service [5] - Investment funds ended down approximately 8.4% for the quarter, mainly driven by healthcare investments [6] - The company ended the quarter with $1.3 billion in cash and cash equivalents at the holding company, and an additional $900 million of cash at the funds [6] Business Line Data and Key Metrics Changes - Energy segment consolidated EBITDA was negative $61 million for Q1 2025, compared to $203 million in Q1 2024, impacted by the Coffeyville refinery turnaround and unfavorable RINs valuation [11] - Automotive segment sales were down 9% year over year; excluding the wind down of the parts business, sales were down 6% [12] - Adjusted EBITDA for the automotive segment was negative $6 million, with profitability suffering due to labor hiring and inventory optimization efforts [13] - Real estate's Q1 2025 adjusted EBITDA decreased by $1 million compared to the prior year quarter [15] - Food Packaging's adjusted EBITDA decreased by $6 million due to lower prices and higher material costs [16] - Pharma's adjusted EBITDA for Q1 2025 came in lower by $3 million due to increased R&D spending and marketing expenses [17] Market Data and Key Metrics Changes - The company noted a modestly positive performance quarter to date when marking to market the funds and adding in CVI and UAN [6][25] Company Strategy and Development Direction - The company is focusing on significant investments in labor, inventory, equipment, and marketing to improve the automotive segment's performance [12] - The board maintained a quarterly distribution at $0.50 per depositary unit, indicating a commitment to returning value to shareholders [7] - The company is exploring the sale of additional properties in its portfolio and seeking new opportunities that fit its investment strategy [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the resolution of outstanding litigation related to small refinery exemptions, which could remove a $438 million liability [5] - The company sees considerable value creation potential in its portfolio despite market volatility [7] - Management believes that investments in the automotive segment, while painful in the short term, are necessary for long-term profitability [13] Other Important Information - The company has a significant liquidity position, with $3.8 billion in cash and investments at the holding company and $1.3 billion at subsidiaries [18] Q&A Session Summary Question: Can you provide details on the automotive segment store closures? - Management refrained from discussing the aggregate EBITDA loss from store closures but indicated that many previously profitable stores are now money-losing and are being evaluated for closure [20][21] Question: Are there any liabilities associated with the store closures? - Management noted that some closures present opportunities, with one previously underperforming store sold for $4 million, indicating that many closures should not be considered liabilities [22][23] Question: What is the current status of indicative net asset value? - Management clarified that the public portfolio and marked investments were modestly positive as of the last Friday [25]

Financial Data and Key Metrics Changes - Revenue for the first quarter was approximately $777 million, roughly flat year on year, while adjusted EBITDA increased by 5% to $150 million, aligning with guidance [22][11] - Adjusted EBITDA margin improved by 110 basis points year on year to 19.3%, driven by lower technology costs and effective cost management [11][22] - The company ended the quarter with $672 million in cash on the balance sheet, and free cash flow remains on track for the full year [22][11] Business Line Data and Key Metrics Changes - Air distribution bookings decreased by 3% year on year, primarily due to lower group bookings in the APAC region and a pullback in U.S. government and military travel [12][6] - Hotel B2B distribution business saw strong bookings growth of 7% year on year, with gross booking value transacted through the platform increasing by 11% in Q1 [13][17] - The digital payments business experienced a 30% year on year increase in gross spending, reaching $4 billion in the first quarter [17] Market Data and Key Metrics Changes - The GDS industry growth assumption was adjusted from flat to a decline of 1% to 2% for the full year 2025, reflecting recent airline traffic softness [6][20] - The company expects low single-digit growth in air distribution bookings for Q2, with a strong recovery anticipated in the second half of the year [20][29] Company Strategy and Development Direction - The company announced the sale of its Hospitality Solutions business for $1.1 billion, with plans to use approximately $960 million of the proceeds to pay down debt, significantly improving its leverage [9][18] - Strategic priorities include generating free cash flow, deleveraging the balance sheet, and investing in innovation for sustainable long-term growth [10][32] - The company is focused on transforming its GDS platform into a modern, open marketplace, integrating content from various sources to enhance booking efficiency [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in achieving double-digit distribution bookings growth for the year despite market softness [20][37] - The company expects to see stronger APAC group booking trends in Q2 and anticipates significant growth in air distribution bookings in the second half of 2025 [29][20] - Management reiterated that the revenue model is primarily based on transaction volume rather than pricing, which should mitigate some impacts from market pressures [37][6] Other Important Information - The company plans to retain approximately $135 million of the sale proceeds for reinvestment in strategic growth initiatives and technology modernization [85][84] - The company has a strong pipeline for digital payments and is seeing increased customer adoption, reinforcing confidence in its growth strategy [17][18] Q&A Session Summary Question: Can you expound more on the macro environment and its impact? - Management indicated that the company is not immune to macro challenges, adjusting GDS market growth expectations down to 1% to 2% for the year, but remains confident in achieving double-digit growth in distribution bookings [36][37] Question: How quickly can you use the cash proceeds from the sale to pay down debt? - The company plans to pay down debt shortly after the sale closes, within five days of receiving proceeds, expecting to maintain a free cash flow expectation of greater than $200 million for the year [46][45] Question: Can you provide insights on the implementation of new business won? - Management confirmed that implementation is on track and does not foresee significant execution risk, assuming current market conditions remain stable [75][76] Question: What is the outlook for air bookings growth through the year? - Management expects high teens growth in Q3 and above 20% in Q4, with strong carryover into 2026 anticipated [67][70] Question: How does the gross margin of new agency business compare to existing volume? - New business is expected to have slightly lower average booking fees and margins due to geographical mix and increased NDC volumes, but overall margins are expected to remain in line with previous years [90][92]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $482 million, growing 14% on a constant currency basis and 11.7% on a GAAP basis [6][15] - Dayforce recurring revenue, excluding float, was $323.1 million, up 14.4% on a GAAP basis and 15.9% on a constant currency basis [16] - Adjusted EBITDA margin was 32.5%, up 240 basis points year over year [6][16] - Free cash flow was $19.5 million, significantly improved from negative $18.8 million last year [16][18] Business Line Data and Key Metrics Changes - Professional services and other revenue was $71.3 million, up 46.1% on a GAAP basis [16] - Live customers on the Dayforce platform grew 5.4% to 6,029 [10] - Dayforce recurring revenue per customer grew 11.5% to $167,600 [10] Market Data and Key Metrics Changes - The sales to existing customers grew 30% in Q1 [8] - Significant new business wins included contracts with major companies across various sectors, indicating healthy growth across segments and geographies [8][9] Company Strategy and Development Direction - The company continues to focus on simplifying HCM software stacks for clients, allowing them to reduce applications from an average of 12 to a single Dayforce application [7] - A partnership with Microsoft was announced, placing Dayforce on the Azure marketplace to enhance customer adoption [10] - The company is investing in AI capabilities, with 50% of new deals including the AI Copilot feature [11][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum and pipeline for 2025 and 2026, with bookings expected to be up approximately 40% year over year in the first half of 2025 [27][28] - Employment levels were in line with expectations, and customer retention rates are expected to remain stable [19][20] - The company anticipates three interest rate cuts in the U.S. in the latter half of the year, which may impact float revenue [20] Other Important Information - The company announced a workforce reduction of approximately 5% as part of an efficiency plan, expecting $65 million in savings for 2025 [17][60] - The Government of Canada signed a $72 million contract extension for digital services, indicating ongoing confidence in the project [47][81] Q&A Session Summary Question: What are you hearing from customers regarding HR and payroll projects? - Bookings in Q1 were strong, with expectations for the first half to be up approximately 40% year over year, indicating confidence in future performance [27][28] Question: How has demand strength in HRMS and payroll deals played out? - Demand remains strong, with significant deals signed in Q1, including the largest deal ever with a government agency [35][36] Question: Can you discuss the cadence of total revenue growth? - A deceleration in total revenue growth is expected in Q2, followed by a pickup in the second half due to seasonality and strong demand [38][39] Question: How are you seeing trends in industries affected by tariffs? - No impact from tariffs has been observed, and the pipeline remains healthy [45] Question: Can customers use Azure credits to purchase Dayforce? - Yes, customers can utilize their Azure credits for purchases, enhancing the partnership's value [45] Question: What is the expected utilization of the Wallet product? - High utilization rates are observed, particularly among unbanked employees, with an average of 25 uses per month [86] Question: How is the migration from the APJ legacy business to Dayforce progressing? - Migration is ongoing, with an expected uplift of about 50% as customers transition to the Dayforce platform [93][94] Question: What is the competitive landscape like? - The company has seen an increase in win rates, indicating strong product performance and market share growth [97][98]

AMD also provided a robust outlook for the second quarter, forecasting revenue of $7.4 billion at the midpoint of its guidance, well ahead of the $7.24 billion predicted by analysts. The death of AI has been greatly exaggerated AMD reported its first-quarter results after market close on Tuesday, and investors were pleasantly surprised. The chipmaker generated record revenue of $7.4 billion, up 36% year over year, while its adjusted EPS of $0.96 jumped 55%. To put those results in context, analysts' consens ...

Financial Data and Key Metrics Changes - The company reported a record first quarter revenue of $7.4 billion, representing a 36% year-over-year increase [6][30] - Gross margin improved to 54%, up 140 basis points from the previous year [30] - Net income increased by 55% year-over-year, driven by a higher percentage of data center product sales [8] Business Line Data and Key Metrics Changes - Data Center segment revenue rose 57% year-over-year to $3.7 billion, with strong demand for EPYC processors [8][31] - Client and Gaming segment revenue increased 28% year-over-year to $2.9 billion, with client revenue growing 68% year-over-year [20][32] - Embedded segment revenue decreased 3% year-over-year to $823 million, with gradual recovery expected [25][33] Market Data and Key Metrics Changes - The company gained server CPU share, particularly in the cloud and enterprise markets, with significant adoption of EPYC processors [9][11] - The number of EPYC-powered cloud instances activated by enterprise customers more than doubled year-over-year [11] - Demand for AI solutions and GPUs is expected to grow, despite export control challenges impacting revenue [27][35] Company Strategy and Development Direction - The company aims to capitalize on growth opportunities in AI and high-performance computing, expanding investments in product and technology roadmaps [27][28] - The acquisition of ZT Systems is expected to enhance the company's capabilities in AI solutions and system design [17][34] - The company plans to launch the next generation MI350 Series and MI400 Series GPUs, targeting significant market share in AI infrastructure [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong double-digit revenue growth in 2025, despite macroeconomic uncertainties [27][37] - The company anticipates continued strength in client and gaming segments, with a focus on high-end Ryzen processors [20][46] - Management acknowledged the impact of new export controls on revenue but remains optimistic about overall business performance [35][82] Other Important Information - The company generated $939 million in cash from operations and returned $749 million to shareholders through stock repurchases [34] - The company expects a revenue reduction of approximately $1.5 billion for the full year due to export license requirements [35] Q&A Session Summary Question: Drivers of upside in Q1 and guidance for Q2 growth by segment - Management noted strong performance across multiple business lines, particularly in client and gaming segments, driven by high ASPs and strong desktop performance [42][44] Question: Performance of the Instinct family in Q1 and outlook for the second half - Management indicated that data center GPU performance was in line with expectations, with high customer interest in the upcoming MI350 launch [50][52] Question: Clarification on data center GPU growth expectations - Management confirmed that data center GPU business performed well, with the majority of revenue expected to come from non-China sources in the second half [56][58] Question: Inventory increase reasons - The increase in inventory was primarily to support strong client and server ramp, as well as upcoming data center GPU launches [59] Question: Feedback on MI400 series and addressing deployment challenges - Management highlighted high customer enthusiasm for the MI400 series and emphasized the importance of planning for rack scale architectures [62][64] Question: Client business growth expectations and market share - Management expressed confidence in gaining market share in the client business, particularly in high-end notebooks and desktops [79][80]

Financial Data and Key Metrics Changes - Revenue less ancillary services was $128.7 million in Q1 2025, representing a 16.8% year-over-year growth rate or 18.6% on an FX neutral basis [37] - Adjusted gross profit increased to $82.5 million during the quarter, up 14.6% year-over-year, with an adjusted gross margin of 64% [41] - GAAP net loss was $4.2 million, representing a year-over-year improvement of approximately $2 million [43] Business Line Data and Key Metrics Changes - Transaction revenue saw a 14% year-over-year increase, driven by a 28% increase in transaction-related payment volume [38] - Platform and other revenues increased by 35% year-over-year, primarily driven by platform fees and improvements in the healthcare business [40] - The travel vertical is experiencing strong momentum, with notable new clients and significant growth opportunities following the Certify acquisition [31][33] Market Data and Key Metrics Changes - The UK education segment is now the largest market for the company, with strong growth driven by new product offerings [68] - Australia and Canada are experiencing market uncertainty post-elections, but the company has seen resilience in Australia [29] - The international education market is expanding beyond traditional markets, with significant growth in Germany, France, Japan, and Singapore [20] Company Strategy and Development Direction - The company is focused on driving innovation, delivering exceptional value, and executing strategic initiatives despite macroeconomic challenges [4][5] - A digital transformation initiative is underway to enhance data analytics and system capabilities, aiming for operational efficiency and improved client insights [13][14] - The company is streamlining its structure and optimizing investments across products and geographies to drive greater efficiency [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macro environment but remains confident in the company's performance and future growth potential [4][5] - The company expects U.S. education revenue growth to be in the low single digits, with potential impacts from geopolitical tensions affecting international student demand [46][49] - The outlook for the healthcare business is positive, with expectations of strong growth driven by unique integrated solutions [35][36] Other Important Information - The company repurchased 3.6 million shares for approximately $49 million, with $57 million remaining in the current buyback program [43] - The company is maintaining its full-year 2025 revenue guidance for FX neutral revenue growth in the range of 10% to 14% excluding Certify [49] Q&A Session Summary Question: FX guidance and growth expectations for the second half - Management explained the expected slowdown in Q2 due to seasonal effects and macroeconomic factors, with a reacceleration anticipated in the second half driven by client ramp-ups and easier comparisons [55][57][59] Question: Impact of international student demand on sales cycles - Management noted that despite macroeconomic pressures, demand for international education remains strong, and clients are looking to improve their technology solutions [60][62] Question: Growth contribution from the UK market - The UK is now the largest market for the company, with strong growth driven by new product offerings and successful client acquisitions [68][70] Question: Sources of upside in revenue growth - Travel and Australia were highlighted as key drivers of growth, with strong performance in both sectors despite macroeconomic uncertainties [73][75] Question: Competitive positioning in the education sector - Management emphasized that the company competes on product performance and results, with a strong reputation in the market and continued client acquisition [92][93]

Financial Data and Key Metrics Changes - FFO was reported at $1.2 per diluted share, with cash same property NOI declining by 160 basis points year over year [20] - Cash same property base rent growth was 90 basis points despite a 300 basis point decline in average occupancy, which ended the quarter at 81.4%, down from 82.8% at year-end [20] - First quarter GAAP releasing spreads were negative 15.8%, while cash releasing spreads were negative 23% [21] Business Line Data and Key Metrics Changes - The office segment saw a 60% year-over-year increase in tour activity in the San Francisco portfolio, indicating strong future leasing visibility [8] - Life science leasing momentum remained unaffected despite market volatility, with continued tenant engagement at the KOP Phase two development project [10][11] - The overall portfolio-wide improvement in tour activity was 40% year over year, reflecting a positive trend in leasing activity [9] Market Data and Key Metrics Changes - San Francisco experienced a significant rebound in office demand, with the lowest crime rate in 23 years contributing to increased foot traffic [6][7] - The office sales volume in the first quarter was roughly flat year over year, with notable activity increases in Silicon Valley and Seattle [14][16] - The demand for office space in San Francisco is driven by the expansion of AI businesses and a return to office mandates from major employers [6][8] Company Strategy and Development Direction - The company is focused on maximizing value through selective land sales and evaluating operating property dispositions to achieve attractive valuations [12][17] - A commitment to sustainability was highlighted with the publication of an annual sustainability report, introducing ambitious goals for environmental and social topics [12] - The company aims to stay agile and responsive to market changes while investing in tenants and maintaining financial flexibility [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in office demand, particularly in San Francisco, driven by AI industry growth and improved safety [6][8] - The company remains cautious about the life science sector due to regulatory complexities but sees unprecedented opportunities in the market [10] - Management noted that despite macroeconomic uncertainties, leasing activity has shown resilience, with minimal impact from recent headlines on transaction volume [9] Other Important Information - The company is actively working on the Flower Mart site to explore a wider range of uses and ensure responsiveness to market conditions [25][26] - The company has a significant unencumbered asset base and a well-structured debt maturity schedule, providing financial flexibility [23] Q&A Session Summary Question: Update on the Flower Mart site - Management is exploring various uses for the Flower Mart site and is optimistic about the leasing environment in San Francisco [25][26] Question: Timing for decisions on the Flower Mart site - Active discussions are ongoing, with expectations for clarity on the site's future by the second half of the year [27][28] Question: Commentary on leasing activity and pipeline - The leasing team is engaged in numerous transactions, with a 15% increase in the leasing pipeline quarter over quarter [30][40] Question: Quantification of deals that slipped from Q1 to April - Approximately 50,000 to 60,000 square feet of deals slipped into April, impacting Q1 leasing volume [42] Question: Plans for the Santa Fe Summit land sale - The company is evaluating additional sales of land parcels, with a focus on maximizing value [44][45] Question: Demand for space from Dermtech's downsizing - The outcome of Dermtech's downsizing was better than expected, with marketing efforts underway for the remaining space [98][99] Question: Recovery in Los Angeles office demand - The Los Angeles market is fragmented, with Long Beach performing well, while other areas face challenges [100]