Financial Data and Key Metrics Changes - The company reported Q2 revenue of $1,102,000,000, an increase of 13% year-over-year, and cash EPS of $5.13, also up 13% [7][28] - Organic revenue growth for Q2 was 11%, a 2% sequential increase from Q1 [8][34] - Adjusted EPS grew 17% on a constant macro basis [28] Business Line Data and Key Metrics Changes - The vehicle payment segment grew 9% in Q2, while the corporate payment segment saw an 18% increase [8][29] - Lodging segment revenue declined by 2% year-over-year, with room nights decreasing by 1% [33] - The other segment, primarily driven by gift card sales, increased by 18% due to new orders [33] Market Data and Key Metrics Changes - Spend volumes increased by 36% on a reported basis, reaching over $58,000,000,000 in Q2 [29] - The U.S. vehicle payments segment turned positive in organic revenue growth, marking a significant improvement [31] Company Strategy and Development Direction - The company aims to simplify its structure and focus on corporate payments, expecting this segment to reach $2,000,000,000 in revenue next year [14][24] - The company is expanding its cross-border business and has launched new products, including a multi-currency account [16][18] - M&A activities are focused on acquiring larger, more strategic businesses while divesting non-core assets [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the corporate payments segment, projecting high teens organic revenue growth for the full year [11][25] - The lodging segment is expected to remain soft, with no significant improvement anticipated in the second half [11][33] - The company is optimistic about the vehicle payments segment, expecting it to track to 10% organic growth in the second half [12][32] Other Important Information - The company ended the quarter with a leverage ratio of 2.53 times and over $3,500,000,000 in cash and revolver availability [37][38] - The company is preparing for non-core divestitures, expecting net proceeds to exceed $1,500,000,000 [23][24] Q&A Session Summary Question: Insights on corporate payments and future growth - Management is pleased with the setup and believes that continued investment could lead to accelerated organic revenue growth in the coming years [42][44] Question: Details on the Circle partnership - The partnership is reciprocal, with plans to use Circle's services while also assisting them in certain geographies [46] Question: Factors driving U.S. vehicle payments acceleration - Improved retention and new significant accounts are expected to drive growth in the second half [52][53] Question: Visibility on lodging segment performance - Management noted that the softness is partly due to emergency services and that sales need improvement to drive growth [66][70] Question: Impact of divestitures on earnings - The divestitures are expected to be non-dilutive and will provide capital for future growth initiatives [74] Question: Cross-border sales and tariff impacts - The tariff situation has had mixed effects, with some regions performing better than others [79][81] Question: Growth in Brazil and vehicle payments - The Brazilian market is experiencing strong growth due to a large addressable market and early-stage digital services [84][86] Question: Concerns about same-store sales trends - Management indicated that same-store sales have remained relatively flat, with no significant economic concerns noted [97][100] Question: Retention rates and their impact on revenue - Higher retention rates in corporate payments are expected to contribute positively to revenue growth over time [102][105] Question: Gift card performance and future expectations - The company anticipates strong growth in the gift card segment due to new regulations and improved sales [108][110] Question: Future M&A and buyback strategies - The company is focused on maintaining a healthy balance sheet while considering future acquisitions and buybacks [120][121]

SunOpta (STKL) Q2 2025 Earnings Call August 06, 2025 05:30 PM ET Speaker0Greetings, and welcome to SunOpta's Second Quarter Fiscal twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Reed Anderson with ICR.Thank you. You may begin.Speaker1Good afternoon and thank you for joining us on Su ...

Financial Data and Key Metrics Changes - The company reported a 40% year-over-year growth in Daily Active Users (DAUs) for Q2, which is a decrease from the 60% growth seen in the same quarter last year [9][10] - The company raised its full-year guidance due to record profitability and strong top-line growth [4] Business Line Data and Key Metrics Changes - The percentage of subscribers using the Max subscription increased from 5% to 8% over the past few quarters, indicating growth in this segment [19][20] - The Super subscription is performing better than expected, contributing to the slower growth of Max [20] Market Data and Key Metrics Changes - The Chinese market is identified as the fastest-growing market for the company, with successful partnerships, such as with Luckin Coffee, enhancing brand visibility [14][15] - The company is facing regulatory challenges in China regarding the use of local language models, which is delaying the rollout of certain features [15][16] Company Strategy and Development Direction - The company is investing in new areas such as chess, math, and music, which are expected to drive long-term growth [4][41] - The company plans to start spending on marketing in the U.S. to counteract slower growth rates compared to other markets [118][120] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming recent challenges related to social media sentiment and user engagement, indicating that the negative impact is expected to be temporary [11][94] - The company is optimistic about the future growth of the Max subscription and the overall user engagement metrics [50][88] Other Important Information - The company is transitioning from a "hearts" mechanic to an "energy" system for free users, which has shown positive impacts on DAUs and engagement metrics [62][65] - The company is testing a web purchase flow to bypass app store fees, which could significantly increase profit margins in the future [26][27] Q&A Session Summary Question: Can you break down the primary drivers behind DAU growth moderation? - Management noted that DAU growth was 40%, slightly lower than expected due to negative sentiment from social media regarding AI comments [9][10][11] Question: Can you provide an update on the Max subscription? - The Max subscription has grown to 8% of total subscribers, but its growth was slower than expected due to challenges for beginner users with the video call feature [19][20][21] Question: What are the early learnings from the energy system? - The energy system has increased DAUs, time spent, and subscriber conversion, although some users have expressed dissatisfaction with the change [62][73] Question: How is the company addressing user engagement in the U.S.? - Management indicated plans to start spending on marketing in the U.S. to improve user engagement, as historical growth has been slower compared to other markets [118][120] Question: What is the outlook for the Max subscription and video call feature? - Management is seeing growth in English learners using the Max subscription and video call feature, with positive early signals [86][87]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were $1.3 billion, down 1.7% compared to 2024, but flat on a constant currency basis [7][24] - Adjusted EBITDA was $174 million, exceeding guidance, with an adjusted EBITDA margin of 13.8%, down 30 basis points year over year due to unfavorable currency impacts [24][27] - The company paid down $55 million in debt during the quarter, maintaining a total leverage ratio of slightly under three times as of June 30 [27][28] Business Line Data and Key Metrics Changes - Product innovation included the launch of Multi Burn, a non-pharmaceutical weight loss supplement, and the introduction of a healthy lifespan product [6][19] - Distributor growth initiatives led to strong engagement, with nearly 38,000 attendees at training events globally [9][10] - New distributor growth was flat year over year, but four out of five regions saw increases, with Latin America leading at 16% growth [9] Market Data and Key Metrics Changes - In North America, net sales were down 4%, primarily due to a 6% decline in year-over-year volumes, but July marked the first month of year-over-year volume growth since April 2021 [33][8] - Latin America reported a strong performance with constant currency net sales up 9%, despite reported net sales being down 1% [31] - EMEA net sales were flat on a reported basis, while Asia Pacific saw a 2% decline in reported net sales [32] Company Strategy and Development Direction - The company aims to transform into a data-driven wellness platform, integrating technology and personalized solutions to meet evolving consumer needs [4][5] - The acquisition of Link Biosciences is expected to enhance personalized supplement formulations, providing a competitive advantage [21] - The company is focused on expanding its product offerings and enhancing distributor engagement through digital tools and AI [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and noted signs of accelerating momentum in sales [5][8] - The outlook for Q3 includes projected net sales growth of 0.5% to 4.5% year over year, with adjusted EBITDA expected to be between $150 million and $160 million [38][39] - The company has raised and narrowed its full-year net sales guidance range to down 1% to up 3% year over year [39][40] Other Important Information - The company is integrating the Protocol app, which aims to enhance distributor-customer connections and provide personalized health insights [11][12] - The launch of the Protocol app is expected to create new monetization opportunities and attract a new customer segment [48][63] - The company plans to expand the Protocol platform globally, with regulatory assessments underway for key markets [68] Q&A Session Summary Question: What are the monetization strategies for the Protocol app? - Management indicated that the app will serve as a tool for distributors to enhance customer engagement and will have options for both product and app subscriptions [48][63] Question: How does the company view pricing in relation to competitors? - The company plans to take pricing in line with market conditions and has not seen significant pressure from competitors [56][58] Question: What are the plans for high-cost debt management? - The company is considering refinancing options for high-cost debt as market conditions improve [69]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $1,102 million, an increase of 13% year-over-year, and cash EPS of $5.13, also up 13% [6][27] - Cash EPS would be up 17% on a constant macro basis, indicating strong performance despite some challenges [7] - The overall organic revenue growth for Q2 was 11%, up 2% sequentially from Q1 [7][28] Business Line Data and Key Metrics Changes - The vehicle payment segment grew by 9%, while the corporate payment segment saw an 18% increase in revenue for the quarter [7][29] - Lodging segment revenue declined by 2% year-over-year, with room nights decreasing by 1% [33] - The other segment, primarily driven by gift card sales, increased by 18% due to new orders [33] Market Data and Key Metrics Changes - Spend volumes increased by 36% on a reported basis and were up 19% organically, reaching just over $58 billion in Q2 [29] - The U.S. vehicle payments segment turned positive in organic revenue growth, marking a significant improvement [31] Company Strategy and Development Direction - The company aims to simplify its structure and focus on fewer, larger businesses, particularly in corporate payments, which is expected to represent over 40% of revenue next year [12][13] - The company is expanding its cross-border business and has launched new products, including a multi-currency account [15][16] - M&A activities are focused on deepening existing capabilities rather than broadening the portfolio, with significant acquisitions planned [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its revenue and profit targets for the year, despite some softness in the lodging segment [24][36] - The outlook for the second half of the year includes expectations for vehicle segment revenue growth to reach 10% and corporate payments to continue high teens growth [10][24] - Management acknowledged the mixed impact of tariffs and trade policies on different markets, with a stronger performance expected outside North America [78] Other Important Information - The company ended the quarter with a leverage ratio of 2.53 times and over $3.5 billion in cash and revolver availability, providing flexibility for growth funding [36] - The company is preparing for non-core divestitures, expecting net proceeds to exceed $1.5 billion [22][73] Q&A Session Summary Question: Corporate payments growth potential - Management indicated that organic revenue growth could accelerate if investments in sales and marketing continue, with a focus on larger enterprise accounts [42][44] Question: U.S. vehicle payments acceleration - The anticipated acceleration is driven by improved retention and new significant accounts, such as GasBuddy and Amazon [52][53] Question: Visibility on lodging segment - Management noted that the softness in lodging is partly due to external factors like weather and emphasized the need for improved sales to reaccelerate growth [65][70] Question: Impact of divestitures on earnings - The divestitures are expected to be non-dilutive and will provide capital for the Alpha acquisition, with a focus on achieving favorable multiples [72][73] Question: Cross-border sales performance - Management reported record cross-border sales, indicating strong demand despite uncertainties in U.S. trade policy [78] Question: Retention rates and revenue acceleration - Higher retention rates in corporate payments are expected to contribute to overall revenue growth, although the impact may be gradual [103][106] Question: Gift card business performance - The gift card segment is expected to perform well due to new regulations and strong underlying sales, with growth anticipated in the second half of the year [110][111] Question: Future of the lodging segment - Management stated that if the lodging segment does not improve, it may be divested, as the company mandates growth [118]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased by 6% year-over-year to $236 million, exceeding internal expectations [6][16] - Adjusted EPS rose by 10% compared to the prior year, driven by operating performance, share repurchases, and reduced interest rates on term loan debt [6][18] - Consolidated adjusted EBITDA for the quarter was $105 million, a 3% increase year-over-year [17] Business Segment Data and Key Metrics Changes - Commercial Services revenue grew by 5% year-over-year, with RAC tolling revenue increasing by 4% [19][20] - Government Solutions service revenue increased by 7%, with total revenue up by 10% year-over-year, driven by product sales and expansion in photo enforcement programs [9][21] - T2 Systems revenue declined by 4%, attributed to reduced product sales and professional services revenue [13][22] Market Data and Key Metrics Changes - TSA volume declined by 1% year-over-year, with expectations for further modest declines in travel volume impacting revenue [8][25] - The demand for automated photo enforcement continues to grow, with enabling legislation adding approximately $225 million to the total addressable market [10][11] Company Strategy and Development Direction - The company is focused on stabilizing travel demand and finalizing the renewal contract with New York City, which is crucial for Government Solutions revenue [10][26] - The company anticipates continued growth in Government Solutions driven by camera installations and new customer contracts [26][27] - The ongoing ERP implementation is on schedule and expected to enhance operational efficiency [28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding travel demand stabilization, while acknowledging potential risks from economic conditions [8][25] - The company reaffirmed its full-year 2025 financial guidance, with total revenue expected to be between $925 million and $935 million [25][26] - Management highlighted strong demand for automated enforcement and positive indicators in traffic safety improvements [12][29] Other Important Information - The Board of Directors authorized a $100 million stock repurchase program, which is available through November 2026 [14] - The company ended the quarter with a net debt balance of $893 million and maintained significant liquidity [24] Q&A Session Summary Question: Clarification on travel trends and assumptions for the second half - Management indicated that TSA throughput was around 99% to 100% and that they are using this rate for the second half of the year [36] Question: Insights on Fleet Management revenue decline - Management expects FMC revenue to decline further in Q3 due to macroeconomic factors and churn, but anticipates stabilization and growth thereafter [38] Question: Factors contributing to the guidance raise for Government Solutions - Management noted broad-based strength in product sales and service revenue growth outside New York City, leading to an increase in guidance [40] Question: Margins in Government Solutions and setup costs - Management explained that margin pressure was due to a mix of increased international sales and ERP implementation costs, with expectations for stabilization in the future [46][48] Question: Update on New York City contract renewal - Management stated they are working towards a resolution and will announce details once finalized [51] Question: M&A pipeline and share buyback strategy - Management confirmed ongoing interest in M&A opportunities while remaining opportunistic with share repurchases [54] Question: European operations and contributions - Management reported early success in Italy and other European countries, with multiple deployments underway [59][62] Question: Photo enforcement market and RFP process - Management indicated strong pipeline movement and conversion rates, with significant bookings translating into revenue [72]

Financial Data and Key Metrics Changes - Reported FFO per share for Q2 2025 was $1.91, including $0.15 from the development of Freedom Plaza Shopping Center, while excluding this, FFO was $1.76, exceeding consensus and prior year FFO [8][9][27] - Comparable property level operating income grew approximately 5% in Q2, while comparable base rents increased by 4% year-over-year [9][27] - NAREIT FFO per share guidance for 2025 was raised to a range of $7.16 to $7.26, reflecting a 6.5% growth at the midpoint [31][33] Business Line Data and Key Metrics Changes - Leasing activity was strong with 119 comparable deals totaling 644,000 square feet, marking the second-highest volume of leasing ever recorded [22] - Rent spreads were solid at 10% over in-place rents and 21% on a straight-line basis [22] - The company has a robust leasing pipeline of approximately 1,000,000 square feet with rent spreads in the mid-teens [23] Market Data and Key Metrics Changes - The acquisition of Town Center Plaza and Town Center Crossing in Kansas City was highlighted, with a total of 550,000 square feet and medium household incomes of $180,000 in Leawood, indicating strong market demographics [24] - Annual foot traffic for the acquired centers places them in the top 15th percentile of the company's portfolio [24] Company Strategy and Development Direction - The company is expanding its acquisition strategy geographically while maintaining a focus on high-quality retail properties [10][11] - Disposition strategy includes selling assets that limit long-term growth potential, with recent sales totaling $143 million [14][30] - Development remains a core competency, with a focus on residential projects due to historically lower exit cap rates [19][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued leasing demand and strong operational results, despite some market challenges [20][26] - The company anticipates occupancy levels to rise from 93.6% to the low-94% range by year-end [31][104] - Management acknowledged investor concerns and emphasized a commitment to clarifying the company's strategy moving forward [20] Other Important Information - The company declared a quarterly common dividend increase to $1.13 per share, marking the 58th consecutive annual increase [33] - The liquidity position improved to $1.55 billion, with over $1.23 billion available on the unsecured credit facility [29] Q&A Session Summary Question: Potential acquisitions in the pipeline - Management indicated that one potential acquisition is in a familiar market while another is in a new market, with cap rates expected in the high sixes to low sevens [35][36] Question: Transition to new markets - Management noted that post-COVID, there is greater openness to exploring new markets, driven by retailer demand [40][42] Question: Timing of executed leases - Executed deals are expected to come in over the next three quarters, with openings typically occurring about twelve months after execution [45][46] Question: Environment in Washington DC - Restaurants in the company's markets remain resilient, with overall traffic trends showing improvement [49][51] Question: Competitive bidding process for new properties - Management noted that competition for larger assets in new markets is less intense compared to coastal markets [96][97] Question: Multifamily portfolio size - The company expects the percentage of residential income to remain around 10% to 11% of total income [100][101]

Financial Data and Key Metrics Changes - The company ended Q2 2025 with cash and short-term investments totaling $991 million, having closed the first $250 million tranche from Toyota and received an additional $41 million through its ATM facility [27] - The Q2 2025 net loss was $325 million, which includes a $168 million operating loss and a $157 million non-operating loss, primarily due to non-cash items [28] - Adjusted EBITDA for Q2 was a loss of $132 million, reflecting an increase in spending compared to the previous quarter [29] Business Line Data and Key Metrics Changes - The company reported significant progress in flight testing, completing 76 flights in July alone, which is crucial for certification efforts [6] - The company is 70% complete on the Joby side and over 50% complete on the FAA side for stage four of certification, up 10 points from the previous quarter [7] Market Data and Key Metrics Changes - The company is witnessing a global regulatory momentum, with the U.S. government and other countries streamlining international validation of FAA type certification for eVTOL aircraft [9] - The acquisition of Blade's passenger business is expected to accelerate readiness for commercial eVTOL operations globally, including in key markets like Dubai [13] Company Strategy and Development Direction - The company aims to leverage the acquisition of Blade to enhance its operational capabilities and expand its route maps, thereby increasing margins and operational tempo [15] - The company is pursuing three paths to commercialization: owned and operated service, direct sales, and regional partnerships [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory environment and the company's ability to scale production capacity to meet demand [20] - The company is focused on methodical scaling, disciplined capital management, and translating technical progress into long-term value [26] Other Important Information - The company is expanding its production capabilities, with plans to double its production capacity to 24 aircraft per year at its Marina facility and eventually produce up to 500 aircraft per year [22] - The company is also developing a hybrid variant of its existing aircraft for defense applications, with flight tests expected to start in the fall [19] Q&A Session Summary Question: Plans for providing eVTOLs to local charter operators post-Blade acquisition - The company prefers retaining long-term cash flow from passenger service but sees value in Blade's asset-light model for flexibility [36] Question: Specifications of the TIA aircraft being constructed - The TIA aircraft is nearly identical to previous models, with FAA oversight during the build process [39] Question: Initial commercial service plans in the U.S. post-Blade acquisition - The acquisition enhances operations in New York, allowing for faster ramp-up due to existing infrastructure and customer base [44] Question: Remaining steps for type certification - The company is 70% complete on stage four, with the remaining steps expected to be completed over the next year [48] Question: Timeline for the Blade acquisition to impact financials - The acquisition is in the process of closing, with contributions expected in the fourth quarter [83]

Financial Data and Key Metrics Changes - The company reported an annualized advertising revenue run rate exceeding $1 billion, marking a rapid achievement in this segment [9][12] - The net revenue margin expanded as anticipated, with the take rate in Q2 aligning with expectations and projected to be higher in the second half of the year [59][61] Business Line Data and Key Metrics Changes - New verticals are growing significantly faster than the core restaurant business, with increased selection and improved product quality contributing to higher engagement and order frequency [29][32] - DashPass had a solid quarter, with more new consumers joining the platform and existing cohorts engaging at higher levels [39][42] Market Data and Key Metrics Changes - The international business is experiencing strong growth, with all-time high monthly active users (MAUs) driven by product improvements and the introduction of new categories [77][80] - The U.S. market continues to show resilience, with ongoing strength in new customer cohorts and order frequency hitting all-time highs [49][56] Company Strategy and Development Direction - The company is focused on enhancing product offerings and user experience, with a long-term view on improving customer satisfaction and retention [10][52] - The acquisition of Symbiosis is aimed at scaling advertising opportunities while maintaining a best-in-class consumer experience [12][13] - The company is exploring AI applications to improve user experience and operational efficiencies [20][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, emphasizing the importance of continuous product improvement to capture a larger market share [51][54] - The company remains committed to maximizing long-term margin dollars rather than short-term unit margins, focusing on sustainable growth [45][62] Other Important Information - The company is investing in automation and efficiency improvements across its operations, aiming to drive leverage in its business model [70][72] - The partnership with CocoRobotics for sidewalk robots is progressing, with potential for future expansion in autonomous delivery [105] Q&A Session Summary Question: Insights on DashPass user growth - Management highlighted that the key to DashPass growth is making the product more useful, with a focus on increasing benefits for users [99][100] Question: Updates on the retail business and unit economics - The retail segment is in early stages but growing rapidly, with significant potential for future development [114] Question: Impact of AI on operational efficiencies - Management discussed plans to leverage AI for improving user experience and operational processes, indicating a strategic shift towards more efficient operations [20][24] Question: Performance of new verticals and customer growth - New verticals are contributing significantly to customer growth, with both new and existing cohorts showing increased engagement [30][34] Question: Updates on the integration of Deliveroo - Management anticipates closing the Deliveroo acquisition in Q4, subject to regulatory review, and plans to integrate it with a focus on product experience [44]

Financial Data and Key Metrics Changes - Revenue increased by 26% year over year to $592 million, driven by solid progress across 46 systems in deployment and expansion of operational systems [12][10] - Net loss for the third quarter was $32 million compared to a loss of $27 million in the previous year [12] - Adjusted EBITDA was $45 million, significantly up from $3 million in the previous year [12] - Backlog remained strong at $22.4 billion, slightly down from $22.7 billion last quarter due to revenue recognized [12] Business Line Data and Key Metrics Changes - Software revenue more than doubled year over year to $8.1 million, while operational services revenue grew 54% year over year to $24.9 million [15] - System gross margin showed significant year-over-year improvement due to strong cost control and project execution [15] Market Data and Key Metrics Changes - The company processed over 6.5 million cases in a single day, indicating strong operational throughput [6] - Customer response to the next-generation storage structure has been very positive, with projects signed in the fiscal third quarter [10] Company Strategy and Development Direction - The company is focused on driving innovation across its technology stack, including the introduction of a next-generation storage structure that increases storage density and reduces on-site assembly parts by over 90% [9][10] - The new structure is expected to enhance scalability and accelerate deployment across various supply chain aspects [9] - The company aims to unlock higher margins and long-term value creation through its innovative product offerings [10] Management's Comments on Operating Environment and Future Outlook - Management anticipates an adjustment in the timing of several previously planned deployments to support the transition to the next-generation storage structure, which may moderate growth in the near term [20] - For fiscal 2025, the company expects revenue between $590 million and $610 million and adjusted EBITDA between $45 million and $49 million [21] Other Important Information - The company has a healthy balance sheet with cash and equivalents of $778 million, down from $955 million in the previous quarter [16] - The transition to a new CFO, Izzy Martins, is set to take place on August 9, 2025 [11] Q&A Session Summary Question: Can you quantify the next-generation storage technology in terms of installation times and retrofit opportunities? - Management does not expect Walmart to retrofit existing systems but believes the new structure will allow for smaller projects and additional capabilities [26][27] Question: What is the expected growth trajectory for new starts? - New starts are expected to step up again now that the design is commercially available, with a historical average of mid to high single-digit new starts [90] Question: What are the implications of the new storage structure on cost and margins? - The new structure is expected to save customers money due to reduced space requirements while allowing the company to achieve higher margins [37] Question: How does the company view the competitive environment? - Management is aware of new technologies but feels confident in their market position and expects to grow market share [69] Question: What is the expected impact of the new storage system on backlog and customer acquisition? - Most new systems going forward are expected to be associated with the next-generation structure, which is anticipated to accelerate customer acquisition [54][55]